Short Story

Fresh, Local And Green (FLAG) is the most efficient online food delivery business to hit the market. Our goal is to deliver fresh food straight to your door while still being affordable and convenient.

Here at FLAG, we believe in providing the best possible service while still remaining environmentally responsible. The key to remaining green is our recyclable bag system. When starting a subscription with the service, the customer is charged a small fee for their first bag. When the customer puts in the order, they simply leave the bag outside the door for the driver to use during their next delivery. Along with being environmentally friendly, the bag system also brings a safe and cleaner alternative to the food delivery industry.

Our service strives to highlight local businesses and have them partner with our company so the customer’s order goes straight to the restaurant. By doing this, this eliminates the unsanitary option of a driver touching the food, filling drinks, etc. The driver has no personal contact with the food, making it a much more sanitary and safer advantage.

Our target market is aimed at busy mothers, young professionals, and even offices looking for catering. Not everyone has the time to go out and buy his or her own meals. FLAG aims to help solve that problem by creating an easy and convenient way of bringing the most fresh and local deliveries straight to your door.

F.L.A.G.

by Chris Marshall

  • $100,000.00

    Funding Goal
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Miami, FL, United States (US)

Chris Marshall

1 Campaigns | 0 Loved campaigns

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Campaign Story

 

  1. Company Description: ………………………………………………………………………
    1. Description of products/services sold and why they are unique
  2. Mission and Goals: …………………………………………………………………………….
    1. Financial and non financial
    2. Growth goals
    3. Goals to contribute to society and conservation initiatives
  1. Core Competencies: ………………………………………………….……………………….
    1. Areas the company specializes in and strategy to leverage competencies for competitive advantage
  1. Situation Analysis: ………………………………………………………………..………….
    1. Market Summary
    2. Product Offerings
    3. Critical Issues
    4. SWOT
    5. Competitive Matrix
  1. Marketing Mix: ………………………………………………………………………………….
    1. Price
    2. Product
    3. Distribution (Place)
    4. Promotion, and Customer
  1. Budget, Schedule, Controls …………………………………………………………….
    1. Sales Forecast
    2. Breakeven
    3. Promotional Expense Budget
  1. Target Market: ……………………………………………………………………………….
    1. Positioning statement
    2. Strategies
    3. Marketing Research
  1. Controls: ……………………………………………………………….……………………….

Outline of controls for monitoring and adjusting implementation of the plan.

    1. Contingency Planning

 

  1. Company Description

FLAG delivery service is the most fresh, local, and green online option in the market to date. FLAG works directly with local businesses to bring the client the freshest food possible.

Four partners who recognized the faults in current mainstream online food delivery businesses founded our company in a back patio in Irvine. What makes FLAG unique is our swap-out bag system. Every time a customer makes an order, they simply leave out the previous Insulated Bag on their front doorstep for the driver to replace with a Fresh Sealed Insulated Bag from their favorite local restaurants. The goal of the bag system is putting emphasis on green delivery benefits. FLAG only partner with businesses that accept our community guidelines.

Those guidelines include:

  • 100% Online payments
  • Delivery Partners do not prepare or touch products to be delivered
  • Curbside exchange with producers & consumers for efficiency
  • Sealed Insulated Bags are constantly exchanged during each new order
  • Consumers are charged initial fee for Insulated Bags

Our unique structure is designed to be the most efficient online curbside out there.

  1. Mission and Goals

Offering Fresh, Local And Green delivery of your favorite foods.

Offer food focused delivery service at lower cost, lower operating expense. Simply connecting producers with consumers. Allowing partner restaurants to offer “Virtual Tables.” All while being the most environmentally conscious option in the $9Bn market of online food delivery. The online food delivery marketplace makes up 13% ($9Bn) total US food delivery market ($70 BN).

  1. Core Competencies
    1. FLAG specializes in human-less online catering and more local services. Its core values are to keep things fresh and fast, as well as be eco friendly. Strategies in doing so will the bag exchange system.
      1. FLAG tries to eliminate unnecessary wastes of time and gas by using our bag exchange system. There will be a bag fee upon initial delivery. Each time an order is purchased and upon delivery, customers will will exchange old bag for a full sealed bag. Any additional bags will incur a new bag deposit until the bags are returned or the customer can keep the bags for the nominal fee. Bags will cost $1.
      2. Our strategy and main focus are driven towards customers. Satisfied customers will remain loyal and return to continue business with FLAG-hence the weekly subscription fees which will offer discounted rates.

  • Our company name, FLAG, a logo in itself, gives competitive advantages:
    1. FRESH- the products are delivered promptly and packaged properly
    2. LOCAL- focus on local products and establishments
    3. GREEN- efficient delivery routes with drivers making multiple deliveries during each rotation. (less waste in packaging)

FLAG focuses on deliveries that cost the minimum fee ($6) approximately 3 miles. By spotlighting businesses by distance and delivery times.

4. Situation Analysis

    1. Market Summary: It is projected that the global economy will stay on a slow growth track with little change in the near future. With a growth rate to 2.8% in 2016, up from 2.5% in 2015, it is expected to raise up to 3.1% by 2020. With the slow growth rate, companies will need to reassess their opportunities because there is a possibility for the markets to descend. The online food delivery marketplace makes up 13% ($9Bn) total US food delivery market ($70 BN).
    2. Product offerings: FLAG offers a weekly subscription to weekly minimum of $30 per week. In doing so, the amount per delivery will decrease from $6 to $4. FLAG offers tracking delivery to keep customers up to date. FLAG promotes cleanliness so there will be no direct food contact from the driver. FLAG offers a variety of restaurants to choose from and will allow fresh meals delivered to customers. FLAG is hoping to increase clientele. Starting off with an expectancy of about 200 deliveries per month. As time progresses, FLAG will increase 50-70 deliveries per month. Hoping to network with restaurants and increase area to cater to more of customer needs and wants of different restaurants, FLAG is expected to grow at a steady pace.
    3. Critical Issues: FLAG will definitely have to stress the importance of quality and freshness. Since competitors are similar to FLAG, we will try and market in the way that food is fresh for delivery and ensure that everything is sanitary and clean. Drivers will not be touching food whatsoever. There will be big emphasis on customer service upon delivery.
    4. SWOT:
      1. Strengths: promotes healthy, fresh foods. Targeting a variety of people, mainly from 18-30, those who are on time constraints and want the comfort of food delivered to home. But FLAG has opportunities that will attract more target groups.
      2. Weaknesses: Time, dealing with traffic. Ensuring delivery is on time. Possibility of being short staffed.
      3. Opportunities: Expand on staff, more restaurants (through good reviews); work with restaurants to offer discounts.
      4. Threats: other food delivery companies since it will probably be at customers convenience.

  1. Competitive Matrix
Features Postmates Grubhub UberEats FLAG
Weekly subscriptions Up to 40% off
Price (starting) $5+1+9% $3+13.5% $4 $6
24/7 service X X X
Tracking delivery X X X X
Mobile application X X X X
Direct online ordering X X X
Drivers prepare food X
Customizable orders X X X
Variety of eateries X X X
Fresh meals X X X

  1. Marketing Mix
  1. Price- Unlike many online delivery competitors FLAG will focus on a more traditional delivery model. Flag focuses on offering deliveries in a closer proximity between the consumer and the producers. That will put FLAGs at $6 to $10 delivery fees following a fee schedule depending on the distance. This results in lower average cost to our customers and drivers. Volume is FLAGs focus, while competitors use price multipliers during high demand. Raising prices encourages more drivers to activate, but it also quells customer demand. FLAG will offer its highest volume customers discounts, which often will be redeemed during times where competitors often raise prices. These discounts will offset price multipliers and reward customers lower fees starting at $3.50 per delivery. Flag will forgo our portion of the delivery fee ($6 – $1.65 = $4.35 – 20% = $3.48) leaving the customer to pay only the drivers fee. Customers will reach this discount milestone at 10 deliveries per week, offering busy families and individuals the opportunity to have their favorite meals delivered twice a day many days of each week.
  2. Product- Offering online food delivery by connecting our customers with their favorite restaurants and independent drivers. Using our 100% online ordering and payment customers will be connected directly with the producer. This approach will eliminate using the drivers or a FLAG operated support center as middlemen. These tactics allow FLAG to offer much lower prices to the consumers then our competitors and makes FLAG more desirable to independent drivers to partner with. Drivers will simply pickup sealed bags and deliver them to customers, not having to place orders like competitors, prepare foods, or serve as quality controllers.
  3. Distribution- FLAG focusing on opening on some of the top US Markets. Markets will be chosen by identifying high concentrations in population, technological culture & disposable incomes. These initial markets would include: Los Angeles/Orange County, San Diego, San Francisco Bay Area, Philadelphia, Baltimore/Washington DC, New York City, Raleigh/Durham, Kansas City, St. Louis, Seattle, Portland & Houston.
  4. Promotion- Promotions will primarily online, banner ads, soft media, free invites, and word of mouth. Having brand ambassadors on Large Academic & Corporate Campuses. Budgeting extra Funds for promotion and giveaways in Spring & Fall to corrolate with academics calendars beginning.
  5. Customer- Target customers include young families, business people, and corporate offices. Aiming at families who want convenience of routine deliveries at both home and work. What we want here at FLAG is to help people when they’re busy. It could be a mom trying to get chores done at home and can’t make a meal that’s where we come in play we can delivery a ready meal for the family to enjoy.

Budget, Schedule, Controls

6. Target Market

 

  1. Positioning Statement: Fresh, local and Green (FLAG) is designed for all people. It is an efficient online food delivery business to cater to peoples’ needs. What motivates people to use FLAG are either they are busy with no time on their hands to cook, no time to run out and buy food, no car to drive, or they simply would prefer delivery service at the convenience of stepping foot out the door. The size of this buyer segment is infinite, as long as a person has access to a smartphone, then FLAG can be of service. FLAG is estimated to grow as food delivery service becomes a growing app in the food industry.
  2. Strategies:
    1. Product positioning – FLAG is positioning its service to promote fresh food. It will be direct distribution to the customer. Because it is another food delivery service, FLAG is unique in which it is fresh, local and green. Through perceptual mapping (pg. 367) consumers will view FLAG as the go to delivery service for fresh food with quick service. FLAG will position its service to avoid competition since the service does not vary significantly with other food service deliveries. FLAG is about promoting the unique characteristics that are important to the customers, which is the quality, freshness, and service that the company has to offer.

 

 

  1. Strategies – To promote FLAG, FLAG will be covering all of social media, with a heavy influence on Twitter. Using Twitter will allows customers flag down FLAG. With the use of hashtags #FLAG and #FlagDownDinner, will spread awareness of the company in hopes of attracting more customers.
  2. Segmentation: Geographic location: FLAG has workers covering certain areas to limit wait time for customers in receiving their food. Locations will first start in California in the LA area. Customers will be allowed to order food from restaurants within distance of 1-10 miles. With certain areas, workers will be covering more shifts to conveniently have efficient service. Downtown area is known to have a lot of traffic, so consumers will not want to wait in traffic and have food delivered to them. Suburban areas will also be service with few workers in those areas.
  3. Demographic – FLAG is catering to anybody that has the means of smartphone and credit card. There really isn’t a limit as to who can’t use it!
  4. Customer size – as the FLAG starts out, there will be fewer workers, but as we hope for the company to grow, we will have to base it on our clientele. We hope to aim at about 500 deliveries per month, but we hope that it will rise as word spreads about the company.
  5. Service use – Again, service is used depending on our customers. So we hope that through our marketing strategies and promotions our business will grow.

 

 

  1. Market Research: Research shows that in 2012, people plan to spend somewhat the same amount as if they were to prepare food and ordering takeout.
    1. 66% of quick service operators believed that food delivery would become more popular in 2009.
    2. 69% of adults said purchasing meals from take-out and delivery restaurants make it easier for families with children to manage their day-to-day lives.
  • The number of restaurant meals eaten at home is expected to grow by 20% in the next 10 years. Increase of home leisure.
  1. Controls

 

  1. Contingency Planning

 

In order for FLAG to be a success, we have evaluated FLAG’s life cycle:

 

  1. Introductory stage – here we are introducing FLAG – Fresh, Local and Green food delivery service. As our sales start at 0 and to due to our start up business with expenses for promotions our profits are at a negative. At the beginning, we expect FLAG to have very few customers since FLAG will be joining the food delivery service with other competitors in the industry. Because of this, FLAG is created on the foundation of fresh and green to create sense of social responsibility to the environment and people. FLAG will come across difficulties including marketing budgets that include promotions, which will be the biggest expense, and discounts that will offset sales to bring immediate profit to the company. FLAG is aiming on customer reviews to gain popularity to increase sales to eventually breakeven and finally becoming profitable.
  2. Growth Stage – Once FLAG breaks even and becomes profitable; we will heavily rely on customer reviews to make improvements for the company. Since we will be competing with other companies, this will be the time that we will take action with aggressive pricing. Mainly with prices being similar to other companies we plan on offering discounts for loyal customers and discounted rates for those who opt in weekly/monthly subscriptions. Once we have gained market acceptance, we will have new distribution outlets to keep the company secure.
  3. Maturity Stage – Once our sales peak and starts to level off with our competitors, our services and prices will fairly remain the same. At times there will be some price increases and decreases, but we hope to make changes that involve an increase our restaurants and distance.
  4. Decline Stage – FLAG will remain and to be of service to customers, but from here, we will leave the company for what it is and there will be little expenses on promotions and focus on customer retention and loyalty to FLAG.

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100 Delivery Credit

December, 2020

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