29A - Venture Concept No. 2

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.