Opportunity
The
main target segment of this business idea is middle aged mothers who shop
online for their families. They are in the upper middle class and mainly live
in the suburbs. The need that they have is that of package protection. All too
often today, videos of burglars taking packages from people’s houses circulate
on the internet. Although many people have cameras outside of their houses
(which they captured the burglaries with), the stolen packages are already gone
by the time they can get to where they are being stolen. That is why something
more must be done. Now, with a pandemic sending the world into self-isolation
and house arrest, online shopping is becoming more popular. Furthermore, the
higher use of social media today and its assistance in spreading videos of this
issue can be capitalized on. The middle-aged women and mothers that this
product is aimed towards is all-inclusive as long as the customer is an avid
and frequent online shopper, particularly for their own families. Right now,
the most these potential customers are doing to prevent this from happening to
them is installing cameras outside of their house. Even then, this is not doing
enough, which is why there is no conceivable loyalty to this solution.
Something that works in conjunction with it, however, may help the issue. The
window of time that this opportunity can be capitalized on is contingent with
the worldwide pandemic we are facing today. If this business idea can become a
consistent idea and necessity in consumers’ minds, then it will survive after
the pandemic is over, thus giving it a lifetime longer than that of the
coronavirus.
Innovation
The
innovation that will be solving this problem is simple: a weather-proof
lockbox. Packages would only be able to be placed into it by those without the
passcode to retrieve them. With the ability to connect to the user’s trusted
device(s), customers will be able to access their packages lock the box once
again. Furthermore, it will be bolted into the ground and have a built-in
security system with motion detection and noise aversion to 1) deter burglars
and 2) give homeowners the ability to call the authorities. Additionally, with
people being home more nowadays, this product will also serve as a package
notification services, alerting users on their phones when their package
reaches certain checkpoints and when it arrives. With this one-time investment
and yearly servicing, people will be able to save so much more money over time.
At a price between the range of $299 and $400, depending on its production
cost, the amount of money saved by preventing possible burglaries over time
will make this product so much more worth it. Furthermore, the installation is
free, and performed by my startup’s staff.
Venture Concept
By
providing a higher level of package security and tracking than what is
currently available today, I believe this product will lessen the commonly held
fear of packages being stolen from one’s own front porch. Its attractiveness
comes from the fact that not only does it include package retrieval for
authorized users, but it also is a one-time investment (without optional
servicing) for thousands of dollars of savings. This is what gives it relative
advantage against its competitors: it encompasses everything an online shopper
would need in one product. Package security, tracking, and storage are a few of
the benefits the customer would receive with absolutely no difficulty in
switching (just a simple purchase is required) from how they currently deal
with this issue. Furthermore, some of the biggest competitors have weaknesses.
For example, Architectural Mailboxes’ Elephantrunk package drop is
aesthetically pleasing and allows for package pickup as well, but it is simply
not large enough for bigger deliveries, such as food subscriptions, and does
not come equipped with the same security capabilities that my product would be
offering. Additionally, Landport’s Essential Rectangle is a larger product, but
is not bolted into the ground and again does not provide as much security
function as my product. Lastly, RTS Home Accents’ ParcelWirx Plastic Horizontal
Premium is large and can be bolted into the ground, but is not aesthetically
pleasing and provides a fraction of my product’s capabilities. Most importantly,
PackCity, a parcel locker company, is very convenient (considering I even used
it myself when I lived in a dorm), but non-customizable and has a much more difficult
installation process. My product has all of its capabilities inside and is more
user-focused.
As
demonstrated, my product will have the ability to surpass its competitors and
the expectations of its target segment. Brought to the customer by a team, the
product will be installed and demonstrated, thus taking away any confusion for
the customers. It will only be introduced in Central/South Florida at first, in
order to work through any kinks and issues in the service and installation
experience for the customers. This way, because the startup is still small,
orders can be fulfilled in a personal fashion. If it does well, expansion is
possible and can be evaluated at the time of that decision. I believe that in
order to expand, the selling process must be perfected beforehand. Also, customers
would also have access to a yearly servicing of the product (at an extra, but
low, charge) as an incentive for product loyalty.
In
relation to business organization, the main positions are CEO/founder, quality
supervisors (two employees), account managers (two employees), and financial
manager (1 employee). Overall, I believe that having two people each for the
quality and account positions allows for internal checking and accountability,
along with a shared sense of teamwork and collaboration. This would be
contributing to the construction of my business venture’s culture, which would
in turn help with its growth and expansion in the future. Put simply, this
business idea cannot be replicated due to its technical capabilities, continual
servicing, and personal installation process. Furthermore, the profitability of
this product could be capitalized on with the sale of personalization services,
new attachments, and more. As for me, I believe that this venture can become
large enough for me to be involved full time. To be involved in something that
reaches many people and solves a problem for them is something that I’ve always
wondered about, and this gives me the perfect chance to do so.
The feedback I received was mostly
positive. I was told that my most powerful points were that of the flaws of my
competitors, that my opportunity was very relevant, and that perfecting my
customer experience was a very smart choice. Therefore, one person said that my
ideas for expansion are good. This is true for expanding geographically and for
expanding into different markets, such as food delivery. Lastly, I was told to
look at Packcity, another company that does something similar that already has
a partnership with UF.
Because of the feedback I received, I
elaborated on the weaknesses of Packcity and how I could compete with them.
Furthermore, I emphasized the need for perfecting my customers’ experience before
expanding regionally. In general, my feedback mainly concerned those two
points, and I think that it fortified the ideas I already had in place.
