Bangladesh University of Professionals

Term Paper
Establishing of a Mobile or web-based E-commerce business
Topic: Application Based Food Delivery Service
Course Name: E- Business Management
Course Code: MGT- 3203

Submitted To:
Dr. Shaikh Rafiqul Islam

Professor
Submitted By
Group: Dynamic Developers

Abdullah Al- Mamun Md. Zahirul Islam

ID: 18241004 ID: 18241024
Nafisa Mehjabeen Samiha Binta Kaikobad
ID: 18241078 ID: 18241050
Asma - Ul – Husna Masuma Akter Sharna
ID: 18241094 ID: 18241102
Department of Management Studies

Date of Submission: 21st October 2020

 Members

Name ID Signature Remarks

Abdullah Al- Mamun 18241004

Md. Zahirul Islam 18241024

Samiha Binta Kaikobad 18241050

Nafisa Mehjabeen 18241078

Asma- Ul- Husna 18241094

Masuma Akter Sharna 18241102

 Letter of Transmittal

21st October 2020

Dr. Shaikh Rafiqul Islam

Professor

Jagannath University

Subject: Submission of Term Paper.

Dear Sir,

I am here by submitting my Term Paper, which is a part of the BBA Program curriculum and E-
business Management course.

This Term Paper is based on, ‘Establishing of a Mobile or web-based E-commerce business’ and
the topic we chosen is “Application Based Food Delivery Service”

To prepare this report we have collected most relevant information to make this term paper more
logical and reliable. we have tried my best to achieve the objectives of the report and hope that
our effort will serve the purpose.

We will be always available for answering any queries on the paper. Any sort of query or any
criticism on this report will be beneficial for me, as it will give us the opportunity to learn more
and enrich our knowledge. We hope you will consider the mistakes that may take place in the
report in the spite of our best effort.

MD. Zahirul Islam

ID: 18241024

Section: B

On behalf of Group Members

Department of Management Studies

 Abstract

This study is based on establishing of a mobile or web-based e-commerce business. As our

country developing day by day peoples are using more internets and leading a busy life. Peoples
spend their most of their time on university, office of home. Some people don’t get enough time
to cook food or go to any restaurant to have food. To save their time and energy they choose
online food delivery services. Technology puts a buried impact on the business industry,
technology has changed the entire frame of restaurant industry, and it will continue doing a great
job. A technically developed online food ordering system has changed the restaurant’s culture
drastically and gives a new amazing comfort zone to the people across the globe.

Summary

This study is based on an application-based food delivery service which is called ‘HungryMe’.
This food delivery service app will deliver different types of food for customers. We are going to
cover the business model, features of the application, competitive advantages, revenue model
and marketing plan.

So, in this study we are going to provide an idea to establishing an application-based food
delivery service. The recent development of the network has boosted the extension of online
food services by facultative individuals to go looking, compare costs and handily access these
services online ordering has been a growing as a requirement have factor for the eating place.
 Table of content

Title Page Number

Introduction & Limitations 01

Motivation 02

Business Model & Our Services 03

Delivery Process 04

Our Features- Food Features 05

Application Features 06-11

Marketing Mix & Market Segmentation 12- 15

Budget & Revenue Model 16-17

Challenges 18

Competitive Advantages & Conclusion 19

References 20
 Introduction

Food delivery market is driven by this trend, including booming Smartphone usage, online food
delivery services emerging in the markets. These services in Bangladesh began in mid-2013 with
HungryNaki, a local entrepreneurship. Soon thereafter, global organization Foodpanda joined
the competition in late 2013.

The food delivery market in Dhaka has only grown hyper-competitive over the past two years. A
year ago, it was Pathao Food, the food delivery service wing of ride-hailing company Pathao,
which was offering hefty discounts to the point of absurdity, and today it is Foodpanda. Shohoz
Food, the food delivery offshoot of ride-hailing company Shohoz, remains a competitive player.
The company continues to push its food business and claims to have excellent growth in the food
delivery business. Pathao Food, however, has significantly curbed its hyper discounting
approach. But it remains a competitive player and tries to cover up its discounting limitations
with service and product level innovations such as loyalty points. The new entrant Uber Eats is
relentless. Officially launched in mid-2019 in Dhaka, the company is trying to make up for its
late entry to the market with discounts and other promises. Pathao Food 42% market shares in
terms of orders it receives every day, while foodpanda holds 32%, HungryNaki 8%, Shohoz
Foods 8% and several other start-ups hold the rest 10% of the total share.

Limitations

There are some limitations of this paper. But these limitations represent only the facts that really
hampered the quality of report. We did not have access to all types of recent data. Again, some
site was restricted despite all these limitations. We have given the best of our efforts and tried to
make this report as informative and as comprehensive as possible.

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 Motivation

Starting an online business is great. We feel excited and hopeful. Definitely we have reasons for
starting our own online business because it’s a side income and we want to do it from our home.
Myself and my team are very much fan of fast food but in the initial days of pandemic we didn’t
have any fast food after few days our team need a plan to get some food from online but during
this time online shop was not going that fine but we have found online business is one site of
help to the needy people and that motivated us to start our “HungryMe” to deliver the food to the
door to door. Another reason is that the online food ordering system is one of the latest servicers
most fast food restaurants in the western world are adopting. With this method, food is ordered
online and delivered to the customer.

“HungeyMe” is a food delivery service application for android and AOS which have capability
to deliver food all over Dhaka city. We did make partner with several fast-food restaurants,
canteens along with other food outlets who are willing to partner with our food delivery
company to continue a food delivery business. We have upfront costs and a new set of expenses
associated with managing the operation as we hire drivers in-house. Also, we are paying a
percentage for deliveries to the third party. However, outsourcing will be done as we are
targeting for lower volumes. We have recruit, train and manage drivers with the in-house option.
That’s why there are initial startup costs as well as higher overhead. Our quality of service is the
most important aspect.

We are providing not only restaurants food, but also homemade food and famous food from
outside Dhaka. There are so many social media-based food delivery services available. So, we do
make a deal to upload their food menu into our apps so that customers can also choose
homemade food form our apps. And also, customer can get some of our country’s food which is
not available in Dhaka city. So are offering them to enjoy those famous food items from their
home by ordering those foods by our application.

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 Business Model

As we are new in the food delivery service, we are going to make some changes to attract
customers to use our application to order food. Our first target is to do collaboration with well
known restaurants inside Dhaka city. After that we do collaboration social media-based food
service. Form last few years we saw many food delivery services are available in social media.
And peoples are interested to have homemade food as well. So that our second target is to
collaborate with them to upload their food menu on our application and we will deliver to their
customers. Our third target is to make available some of our countries famous food items those
which are not available in Dhaka city. We will also appoint our delivery man to deliver food to
the customers. We have plan to monitor them and ensure enough delivery man in any area so that
we could deliver food within 30 minutes. And for famous food items from outside Dhaka we will
arrange personal transportation and establish the warehouse to store those food items. For
restaurant food menu we are going to deliver in 30-40 minutes and for homemade food it will
take 3-5 hours and for famous food items it will be depends on availability. There will be
delivery charge applied for ease of the food category. If those foods are available in store it will
take only 1-2 hours but if it’s not available, it will take 2-3 days to get. Our 40% of revenue will
come from the commission of restaurants and 20% form homemade food service and 20% form
famous food items and rest of 20% from application.

Our Services
As a new application based food delivery service also due to the great increase in the awareness
of internet and the technologies associated with it, we have developed an application name
“HungryMe” so that customers can easily get the best food at his/her doorsteps. In today’s age
of fast food and take out, we have chosen to focus on quick preparation and speedy delivery of
orders rather than offering a rich dining experience. Customers can get whatever they wanted to
eat just by entering our app, select the restaurant, place the order and get the delivery within
shortest possible time. They can order different kinds of foods, dishes from several restaurants of
Dhaka as well as local cuisine from different district of Bangladesh. It is possible for anybody to
order any goods via the internet and have the goods delivered at his/her doorsteps.

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 Delivery Process

The services offered by “HungryMe” can be accessed by customers from 08am to 11pm via a
direct call line, or online platforms lay our free mobile application, with the option of online
payment via Bkash, Rocket, Nagad, and Credit Card moreover, payment can also be made in the
form of cash on delivery upon receiving the ordered items from “HungryMe” delivery staff. A
delivery charge is placed upon the order which varies from restaurant to restaurant and the
distances covered. Initially, outsourced its delivery service but now the company has its lowery
staff equipped with motorcycles, delivery is possible within 30 to 90 minutes delivery support
and transportation with an average of 25 minutes delivery time.

We have 100 delivery men who are responsible for loading, transporting, and delivering items to
clients or businesses in a safe, timely manner. Reviewing orders before and after delivery to
ensure that orders are complete, the charges are correct, and the customer is satisfied.

Here is a thing that we are also delivery some food items from outside Dhaka. Actually, we have
made a Storage Center in Dhaka city where we stored the famous food items which our customer
can order from the application. Storage Center is mainly made for the customers who are living
in Dhaka city who are deprived of tasting local/famous items from different districts of
Bangladesh. Suppose a customer neither order “Rosmalai from Cumilla” from his home nor
there is any other way to order and eat this food item from customer home. People have to go to
the respective districts and then he can enjoy the food. This is a kind of expensive and hassle
things for the Dhaka City customers. But we actually can give this kind of facilities to the
customer doorsteps.

4
 Our Features

“HungryMe” is a domestic food delivery service, is getting a fresh new look across all markets,
offering its customers a new visual identity to accompany its renowned service standards and
vision to deliver good food.

We have enhanced look and feel is set to create value and impact in the fast-growing food
delivery industry, specifically with its new outstanding pink color. No matter the craving or price
range, “HungryMe” is always opens all of its customers to an exciting world of flavors – only
now, it will do so with a new distinctive pink color.

The “HungryMe” app is introducing an improved user-friendly interface and design, as well as
several new features.

In addition, “HungryMe” has also introduced a live tracking feature, which will allow the
customers to watch in real time, as their orders make their way from their favorite restaurants
right to their doorstep, hassle free.

Food Features:

• Restaurants: You can order from Dhaka based restaurant example like Peri Peri World,
Star Kebab, Takeout- Banani, 3Food, Madchef- Dhanmondi, Pizza hut etc.
• Home Made Food: Also, you can order the home-made food from our app. Home based
business mainly operating from social media. But this is the special features of our app
that you can also order home based food from our application as we are collaborating
with some home-based businesses. Example includes Tirirussa, Pickle Hut, Eat Kitchen,
Shara Fast Food, Neetas’s Kitchen, etc.
• Famous Food Items: Moreover one of the best things is that you can order some famous
food items of local districts Bangladesh like Rasmalai of Cumilla, Pora Bari ChomChom
of Tangail, Dooi Bora of Bogura, Honey from Sundarban, Sandesh from Satkhira, Dried
Fish from Chittagong.

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Application Features:

• Log in Page: First of all, users have to creating an account into the application by
entering user’s phone number and user’s location. And if users already have an account,
he will directly log into the app.

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• Home Page: After successfully log in into the application this kind page will be
displayed. Several restaurants offer, discount, food cost will be displayed.

➢ Main Menu: In the left upper side of the application user can see a button where
clicking on this button will show some options of the app including user own profile, user
addresses, order items, voucher, and settings, terms & conditions option. User can go
through all of these options and get the proper and accurate idea of our application.

7
• Use Profile: Users Profile will be like kind of this.

• Orders: The food ordering and delivery process takes place in two phases – food
ordering by customers and food delivery by “HungryMe” The customer places the order

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 online or through a direct phone call after which “HungryMe” processes it. The
“HungryMe” online platform has all the tools customers need to search, choose, and pay
– all filtered to the customers’ needs. The online platform includes the company’s own
website and the free “HungryMe” mobile application for iOS, Android, and Windows
phone devices. Search is easy with filters based on cuisine types, restaurants, and price
range. The application or mobile application allows customers to select their location to
have a list of nearby restaurants and choose from their menu items.

• Addresses:

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• Voucher:

• Help Center: After clicking this options users will see kind of displayed.

10
• Terms & Condinions:

• Settings:

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 Marketing Mix

➢ Product:

As a food service business, our business has a product mix composed mainly of food and beverage
products. This element of the marketing mix covers the various organizational outputs (goods and
services) that the company provides to its target markets.

Among the 4Ps, products are a fundamental determinant of our business. Our application is
primarily known for food service business. However, the business gradually expands its product
mix. At present, customers can purchase other products like chicken and fish, desserts, and
breakfast meals. Our generic strategy and intensive strategy influence the product lines included
in this element of the marketing mix. In diversifying its product lines, our company satisfies market
demand, improves its revenues, and spreads risk in its business.

➢ Price:

This element of the marketing mix specifies the price points and price ranges of the company’s
food and beverage products. The aim is to use prices to maximize profit margins and sales volume.
Weise a combination of the following pricing strategies:

1. Bundle pricing strategy

2. Psychological pricing strategy

In the bundle pricing strategy, we offer meals and other product bundles for prices that are
discounted, compared to purchasing each item separately. For example, customers can purchase a
Happy Meal or an Extra Value Meal to optimize cost and product value.

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 ➢ Place:

This element of the marketing mix enumerates the venues or locations where products are offered
and where customers can access them. Restaurants are the most prominent places where the
company’s products are distributed. However, our business utilizes various places as part of this
4P variable. The main places through which we distribute our products are as follows:

1. Restaurants
2. Mobile apps
3. Postdates website and app, and others

Restaurants are where the company generates most of its sales revenues. Some of these restaurants
also manage kiosks to sell a limited selection of products, such as sundae and other desserts. Some
kiosks are temporary, as in the cases of kiosks used in professional sports competitions and other
seasonal events. These virtual places are where customers can access information about our
company’s products and buy these products. For example, the company’s mobile apps for iOS and
Android let customers claim special deals, find restaurant locations, place orders, and pay for such
orders. Furthermore, customers can place their orders through the Postdates website and mobile
app.

➢ Promotion:

To promote the application, our marketing team would focus on the pull strategy that calls for
spending a lot on advertising and consumer promotion to induce final consumers to buy the
product. The target market is middle- and higher-class citizens that are more interested in buying
premium products which are promoted more though TV and print ads, sales promotions, a website
and other marketing channels. Creating a demand for the hybrid car will pull the consumers to
probable marketing strategies:

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1. Email Marketing:
• Send Regular Emails.
• Known our audience.
• Segment our audience.
2. Send Personalized Service Reminders and Deals via Email or Text:
• Seasonal specials offer.
• 20%, 30% offer on food.
• Seasonal free delivery service.

3. Provide Explanatory Videos Online:

Whether we publish on our business’s YouTube channel or embed directly into our application,
videos are a great way to capture customer attention and provide useful, visual, information for
them about their vehicle and services needed.

4. Connect with Local Shoppers Online:

• Optimizing our site for local SEO
• Using Facebook and Google ads to target customers in our area
• Creating Google Business and Yelp profile pages
5. Encourage Engagement on Social Media:

Our service stores such as:

• Maintenance advice
• Photos of our staff and location
• Customer satisfaction stories
• Support for community initiatives
• Offer specials and coupons for likes and shares

6. Use Social Media as another Customer Contact Platform:

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As we engage in social listening, we look for:

• Mentions of our business

• Mentions of our competitors
• Comments that relate to our industry, products, and services
7. Encourage Customers to Write Reviews:

We set up systems that encourage past clients to share reviews on feedback cards, review sites,
and even filmed testimonials. We don’t file away reviews. We use Social Media to post these
where all of our customers can see how much others love our business.

8. Partner with Other (non-competitor) Local Businesses:

We also take this partnership to social media and offer joint social competitions by asking people
to follow each business account and tag a friend. The winner gets a product or service from each
participating business.

MARKET SEGMENTATION

The major segmentation variables are geographic, demographic, psychographic, and behavioral
segmentation.

➢ Geographic segmentation: Dhaka city

➢ Demographic segmentation
i) Age and Life-Cycle Stage: 18- 65
ii) Gender: Male and Female
➢ Psychographic segmentation
(a) Lifestyle: General.
(b) Personality: Openness.
➢ Behavioral segmentation
i) Occasions: Job, Students and Businessmen

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 Budget

Items BDT

Apps making 500000

Warehouse 100000

Marketing 300000

Others 250000

Revenue Model

Revenue Terms Year

2020
Restaurant Commission 250000

Social media-based kitchen Commission 200000

Famous food revenue 150000

Third party Ad 150000

Application visits 100000

Total revenue 850000

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 HungryME
Income statement (Approximate)
For year ending December 31, 2020

Financial models Years

2020

Revenue 850000

(cost of goods sold) (200000)

Gross Profit 650000

Expenses:

Marketing, Advertising, Promotion 150000

General and Administration 200000

Interest 50000

Total expenses: 400000

Earnings before tax 250000

(Tax) (37500)

Net Profit: 212500

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 Challenges

1) Adding value to product: Value-added foods and beverages, such as products fortified with
vitamins, minerals, or protein, are becoming more popular as consumers look for more than
just flavor and price when making purchasing decisions.

2) Time Management: Bringing to market new products that align with emerging consumer
trends in a timely manner is difficult for many food and beverage companies as the process
of creating new, relevant products and moving them

3) The risk of health- consciousness among consumers: The increasing incidences of food-
related disorders have prompted consumers to bring about vital changes in their diet and
lifestyle, making them more health-conscious than ever.

4) The increasing complication of inventory management: Given the limited shelf life of
food products, inventory management has come up to be one of the current issues in the food
industry. The perish ability factor is responsible for fact that F&B inventory is highly
susceptible to food borne pathogens and more, if not stored hygienically.

5) The pervasive presence of e-commerce: An online presence is one of the major challenges
of food and beverage industry, considering that consumers are more tech-savvy and socially
informed, thanks to the Internet. While core industries, like appliances, electronics, textiles,
and other domestic products have already established their presence in the commerce
domain, this sector has been relatively slow on the upkeep

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 Competitive Advantage
Our business has some extra competitive advantage than our competitors. Because we give extra
service and benefits than our competitors like:

➢ First delivery service

➢ Homemade Food experiences
➢ Famous food items from outside Dhaka
➢ Provide great service
i. Take care that the food delivered is hot
ii. Package food safely in delivery vehicles
iii. Give special attention to the necessary add-ons
➢ Focus on Packaging
➢ Proper Address and Client Communication
➢ Easy payment system
i. Bkash
ii. Rocekt
iii. Cash on delivery

CONCLUSION
Nowadays Food Industries is one of the largest industries in the World. Every corner of the globe
has a food business, so we conduct this term paper. We all know that if a business has a good
customer service it can ensure you that profit will be made because it is a key factor that can
determined the success rate of a business.

We are successful in service a huge amount of fast food to a lot of people. This success is based
on - Nice strategies - Good marketing the management process, service process, financing process.
As well as we face some difficult challenges. Key to our future success will be maintaining our
core strengths-an unwavering focus on quality and consistency-while carefully experimenting with
new options.

Our main vision is to create an image in the minds of the people and introduce them to the fast-
food culture. We offer delivery services, and most importantly, they are very concerned about
hygiene. These are mainly the core strengths on which our stores expanded.

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References

deshi media company. (n.d.). Deshiz. Retrieved from https://deshiz.com/online-food-delivery-

bangladesh

How Foodpanda Earns Money. Retrieved from https://promotedigitally.com/foodpanda-revenue-

model-risk-analysis/

Iyer, S. (May 13, 2020). Top 8 challenges of food and beverage industry to watch out for. Retrieved from
https://www.gminsights.com/blogs/challenges-in-food-and-beverage-industry

Mahajan, A. (2019). How to survive in competitive online food delivery business? Retrieved from
https://www.itproportal.com/amp/features/how-to-survive-in-competitive-online-food-
delivery-business/

Saad, A. T. (2020). Factors affecting online food delivery service in Bangladesh: an empirical study.

Traver, K. C. (2014). E-Business .

Weygandt, K. a. (n.d.). Accounting Principles.

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