SEILBAHN

Table of ContentsExecutive Summary3Business conceptKey success factorsFinancial situation/needsVISIONMarket analysis4The overall marketChanges in the marketTarget market and customersCustomer characteristicsCustomer needsCustomer buying decisionsCOMPETITIVE ANALYSIS5Industry overviewNature of competitionCompetitive AdvantagePrimary competitorsOpportunitiesThreats and risksStrategyImplementing strategyPRODUCTS/SERVICES7Product/service descriptionPositioning of products/servicesCompetitive evaluation of products/servicesFuture products/servicesMARKETING & SALES8PublicityOPERATIONSFINANCIALS10Sales forecast assumptionsSalary assumptionsFood costs assumptionsExpected marginsCharging for extra servicesCost development forecastFinancing assumptionsPotential economies of scale assumptionsFixed and variable costs assumptionsAdditional comments

Executive SummaryBusiness conceptThe core concept of SEILBAHN is to provide healthy, fresh and nutritious food abonnements for its customers. Additionally SEILBAHN aims to provide the quickest and most ecological delivery network in the city of Vienna.Future outlook on urban city development suggests that more people will be living within a very short proximity of each other. This development makes traditional delivery systems like by car or motorcycle redundant. Additionally to the future redundancy of cars in urban areas are the legal problems that delivery companies will have to face. Many cities already banned any gas powered vehicles from the city centre and many more cities will follow this principle.

Key success factors finding partner restaurants before we are able to hire a cook finding a suitable cook creating a customer base for the subscription model

Financial situation/needs initial capital necessary for costs related to setting up the venture (legal costs, establishing costs - EUR 35,000), rent for office spaces (possibility to work in shared workspaces in the first months to reduce costs), initial marketing costs (giving out of free samples, flyers, social media marketing - sponsored posts on Facebook) majority of capital, EUR 65,000 already raised from families and friends, EUR 15,000 still needed in order to get the business running

VISIONVision statementThe vision of SEILBAHN is to be the best food delivery company in the centre of Vienna, making delivery cheaper, faster and easier for our customers.

Milestones 100 deliveries per day 1,000 deliveries per day 5,000 deliveries per day 10 restaurants in Vienna as our cooperatives 10,000 Facebook fans, 100,000 Facebook fans, 500,00 Facebook fans

Market analysisThe overall marketIn the beginning the target market of SEILBAHN will be the districts 1 to 9, excluding district 2, which is not inside of the Vienna Guertel area. The population density in those districts is extremely high while distances are relatively short, which helps us in achieving the fastest delivery time in those areas.A significant number of local and international companies have established their HQ in Vienna. Moreover, companies tend to locate the majority of the managerial positions to Vienna due to the central location of the city as well as due to many prestigious office sites.

Changes in the marketIn the last few years a lot of companies offering delivery entered the market. This includes companies like Lieferheld, Myam, etc.However those companies do not offer the delivery service itself but instead combine the choice of restaurants and food in one homepage. Much like Amazon combines the choice of various products in a virtual market place and from various different sellers.

Another important difference is that SEILBAHN does not offer pizza, salads or Asian food on a one-time basis but instead offers a subscription model to help customers in the decision process. The decision for a more healthy diet has to be reached only once, with a signup to SEILBAHNs subscription model - compared to competitors where the decision to eat healthier and fresher has to be reached on a daily basis.

Other important trends include the disposedness of customers to organic and genetically unmodified fruit, meat and vegetables. Those trends have been identified as key purchase drivers in various studies - SEILBAHN aims to cash in on this opportunity.

Target market and customersSEILBAHNs target market are professionals who are working in downtown Vienna and have little to no time to take care of their lunch. Workdays are busy, meetings mess up dietary plans and wearisome projects create a need for food that satisfies ones hunger. The target customers can identify himself/herself very well with the description above. Additionally to being strongly involved in their respective work our customers are high earners between 25 and 55 and want their lunch to be a part of their health ambitions, which they do not always have time for since work is still a priority for them.

Customer characteristicsOur target customer will be active business people who despite their desk jobs prefer to eat healthy in order to maintain or even improve their physical condition. Moreover, they are characterized by a lack of time and a tendency to prefer convenience over the current hassle of trying to eat healthy on the job.

Customer needsBusiness professionals often desire to eat healthy, yet lack in time to do so. Therefore, healthy food needs to be delivered to the customer so that he/she is able to consume in a timely manner, without any unnecessary waiting for the delivery itself.Nowadays, there is an increasing number of people struggling with different kinds of food intolerance. Their choice is very limited when it comes to quick lunch at the workplace. Usually, they have to prepare their own lunch the day before or find another solution. However, we aim to serve those people needs as well who cannot consume certain types of ingredients and make sure they have the same benefit to enjoy a healthy and quick meal like any other employee.

Customer buying decisionsOne of the main criteria is convenience. Employees usually eat their lunches at the company cafeteria since its close to their workplace, they can save time and maybe money.Most companies allow only one hour lunch break which is quite limited, therefore the most convenient is to eat at the company cafeteria. Since it involves no additional planning, and the choices are reduced to a small number of courses to save time usually spent by picking a meal in a restaurant. However, the meals are often anything but healthy and their taste is often questionable as well. What our company aims on is to maintain the level of convenience, simplicity, and speed, while adding the benefit of great taste and healthy meals.

COMPETITIVE ANALYSISIndustry overviewLike many other delivery companies within Vienna are present on online delivery platforms we also have to be available on such websites like http://www.mjam.net/wien/ or https://www.lieferservice.at/essen-bestellen-wien. These websites also can help us with promotion since they are already well known and they have a regular consumer base who receive newsletters or email updates informing the consumer about a new restaurant opening or discounts.

Nature of competitionCompetition in the food market is enormous, there is no doubt about it. Also when looking into the delivery market there is a gigantic amount of competitors on the market.When looking for healthy food the competitors however are slimmed down to a significantly smaller number. Going even deeper into food abonnements the market only offers a few alternatives but none of them seem to satisfy the customer completely.We do understand that the whole food sector is a competitor nonetheless. This includes restaurants, take out or non take out, fast food chains, kebab stands, etc.

Competitive AdvantageSEILBAHNs advantage to those competitors is that the customer does not decide for or against SEILBAHN every day but instead does so only once in the best case.

Additionally, we differentiate ourselves in terms of offering three types of meal; normal healthy lunch, gluten-free lunch, paleo-lunch. There are no other food delivery service on the market that considers people with food intolerance and offers them an easy and comfortable way to eat their lunch at work.

Primary competitorsWe estimate new competitors to enter the market in the very near future. Those competitors will offer subscription models as well and might also offer the delivery in a similar way SEILBAHN does at the moment.

OpportunitiesThe product offers a lot of opportunities for added value and extra products. We have listed a few opportunities below and a short explanation of them:

Mobile Phone Application: We believe that an app can make more out of our product. It would help us engage with the consumer and the consumer would be enabled to track his caloric intake easily. The spectrum for ideas for the app goes from embedding health articles into the app to having a fully worked out nutritional plan available by the click of a button.

Cook Book: The most important matter for SEILBAHN is the health of our customers. For this reason we believe it is the best not only to deliver healthy food but also to educate them to cook their own healthy food. A transparent approach in this matter makes a company more honest and simple. The cook book however does not have to be in the traditional form of a hard printed book. Instead it could be incorporated into an application or published in the form of an e-book.

Threats and risksKey competitive capabilitiesSEILBAHNs key competitive capability is that the food is never frozen and never warmed up - it is prepared and sent on delivery. Our tests have shown delivery network via bicycles will quicker than any other delivery system in the city of Vienna.

Key competitive weaknessesOur major competitive weakness is the specific timeframe, where deliveries will be sent out. If one timeslot is taken, companies might back out from our subscription model. Additionally to this weakness come timetable changes in companies, where lunch might need to be delivered either earlier or later. StrategySEILBAHN is working on strengthening the delivery system further in order to stay competitive in this matter. The strengthening is planned in the form of hiring only the fastest cyclists as well as utilizing other matters of transportation which are also allowed in the Viennese Fugngerzonen like electric scooters, etc.

Implementing strategySEILBAHNs team is currently testing out the regulations and other legal matters regarding the delivery system to make sure no legal matters come up when the product launched.

Additionally SEILBAHN is currently in contact with potential cooks and nutritionists to optimize the meals to the needs of the customer.

The website and other online touch points are currently in development or already ready for the launch. However, we as SEILBAHN team decided to wait with the launch of some of those touch points in order to not scare away customers with half-ready content and services.

PRODUCTS/SERVICESProduct/service descriptionAt SEILBAHN we focus on a healthy meal plan with a sustainable packaging and quick and friendly food delivery.Our meal plan always consists of three meal choices per day, in particular one normal healthy course, one meal specifically for those who have some sort of food intolerance and the third is for those who are on special diets. When it comes to the service, SEILBAHN always strives to deliver the food as fresh as possible in a very short time. Moreover, we provide friendly and helpful customer service and our staff is ready to help and serve the customers best interest.Positioning of products/servicesThe meals offered by SEILBAHN are premium meals, with high nutritional value and targeted at gourmets and foodies. To keep the quality at the highest level SEILBAHN will not be able to offer its meal at a price level that would also attract a broader spectrum of potential customers.

Competitive evaluation of products/servicesCurrently there is only one company in Vienna offering meal subscriptions and this particular was hard to find, since their SEO does not meet the current standard. Additionally the company does not target the premium market but instead targets the broad public.However SEILBAHN does not underestimate the market and its competitors. We expect at least three more companies to enter the market in the next year who are direct competitors to our product as well as in our target market. Additionally it will not lose sight of the competitors who stand in indirect competition to us, like food trucks or other delivery services.

Future products/servicesBesides the fitness advisory and cookbooks, SEILBAHN also plans to offer specialized nutrition plans for professional sportsmen as well as more personalized service packages for clients who want to go beyond healthy lunches in improving their lifestyle. While there are many personal trainers in Vienna, a variety of restaurants serving healthy food, and many sports centres, SEILBAHN would be the company bringing all the aspects together by providing one solution that would take care of a clients lifestyle even on a busy schedule.

MARKETING & SALESMarketing strategyThe marketing strategy of SEILBAHN has two main focusses. Firstly online strategies where SEILBAHN aims to be present with its own website, on Facebook, on Youtube and on Pinterest which is particularly popular with women.

Secondly a growth multiplier in the form of an incentive will foster word of mouth advertising which we anticipate to bring in a good number of customers. However the marketing value of the integrated multiplication factor is obviously higher - but impossible to put into numbers.

Advertising:With the change of the advertising industry towards online advertising SEILBAHN will use the Internet as its main marketing channel. For a start-up Google Ad-Words is the most important marketing tool. The team will focus on precise targeting such as buying advertising time during lunch hours. A well worked out online advertising strategy will not only save costs but will also effectively employ the budget assigned for marketing activities.

Promotions/incentives:SEILBAHN plans to do sales promotions in the form of protein cookies or muesli bars which will be distributed in the morning at Subway stations in downtown Vienna. Potential customers will be provided with a nutritious breakfast or brunch alternative they can enjoy in the office or on the way to the office.Additionally, The act of providing customer value before a monetary transaction took place is an important aspect in the customer interaction process since the potential customer already knows if he likes our product or if he does not. This way we hope to be able to bring customer satisfaction to a higher level than with any other form of advertising our food subscription plan.

Additionally we plan to encourage our users to share their lunch on Instagram with the chance to win a weekly price.

PublicityEventsSEILBAHN would supply food for any company events, providing a variety food to meet customer desire. Moreover, our company makes it available to order fresh food for meetings, team building sessions or conferences. Our aim is to reach more and more people and educate them about eating something healthy and fast is not an issue any more.

OPERATIONSKey personnel Firstly, the three founders of the venture will have a considerable impact on its daily activities according to their functions. Thus, Earl will be responsible for direct communication with potential partners such as restaurants in Vienna, delivery services, and suppliers. Rebeka will be responsible for all the marketing activities as well as be our human resources person until the workload requires dedicated personnel. Lastly, Martin will be responsible for finances of the venture as well as for accountancy, again, until the workload requires dedicated staff.Besides that, the staff responsible for the creation and maintenance of the website and the smartphone application will be crucial to the success of the business. Lastly, the intention to hire students/athletes to do the deliveries in later stages will require tapping into the sports community of Vienna and looking for people who would fit the set expectations.

Organizational structure Being a rather small business, the only management in the initial phases of the venture will be the three owners, each of them responsible for certain areas of the business as described above. Moreover, each will be managing their own team of delivery personnel, in order to ensure direct contact between the management and the employees as well as to simplify the performance evaluation. Key decisions influencing the whole business will be made by voting of all three executives, each of them having equal voting power.

Product/service deliveryThe daily delivery will be carried out by our own bike couriers. In the beginning Earl and Martin will take the seats as food couriers to cut costs. Once the daily subscriptions cannot be handled by two couriers anymore SEILBAHN plans to hire more couriers.

It is planned to hire mostly sports students or hobby athletes. The compensation is dependent on the delivery speed and the resulting delivery count. After the starting phase Martin and Earl will have enough data to set up a compensation plan to suit the needs of the company, therefore not resulting in underpayment or overpayment.

Customer service/support An online feedback platform as well as a direct line to one of the company executives will be available to all our customers in order to ensure an outstanding quality of service and make each customer feel important.Moreover, in the initial phases the customers will be able to evaluate each of the restaurants supplying food in order to determine those who meet the quality standards and welcome any new suggestions from even smaller, niche restaurants.

FacilitiesInitially, the business will be located in one of Viennese co-working spaces. This would provide benefits of both cheaper rent as well as an entrepreneurial atmosphere that could spark new ideas and foster networking with potential future partners. However, once a certain scale of deliveries is reached, the venture will move to its own office spaces that would be equipped with a kitchen in order to start with in-house food production. Most important will be in this case the location of the offices, in order to ensure not having to compromise on the speed of delivery of our meals. Of additional benefit would be a ground floor location which also provides some opportunities for marketing such as allowing people to see into our kitchen, meet the management, as well as to get some free samples.

FINANCIALSSales forecast assumptionsThe number of customers is estimated to reach 500 by the end of the first year, mostly due to the intensive marketing efforts as well as incentives for customer referrals. During the first five years is the customer base expected to grow to 2,250 customers, while the emphasis would be put on trying to maximise the number of customers within individual companies/delivery spots in order to minimise the delivery costs.

Salary assumptionsAfter the initial period of deliveries done exclusively by two of the founders of the venture, duration of which depends on the number of daily deliveries, the salaries of delivery people will be as an hourly wage of a certain performance bonus based on the speed of delivery and the evaluation coming from the customers. This structure will motivate the delivery employees to focus on the speed of delivery while maintaining a reasonable level of its quality via employee evaluations and feedback giving options. Each of the employees will have a clearly visible name tag so that the feedback can be given as accurately as possible. Moreover, the salaries of founders will be set at a symbolic value of EUR 1 per year, for the first years of operations.

Food costs assumptionsInitially, the venture wont have any own cooks and thus all the food will be acquired via delivery service offering to already existing restaurants in Vienna (for further information see the section about possible partnerships in the gastronomy industry). However, based on the trajectory of the business, specialized cooks would be potentially hired later on, in order to reduce the costs by cutting out the additional margins set by the partner restaurants.

Expected marginsWhile the food delivery business is usually based on low margins, SEILBAHN distinguishes itself by delivering healthy food to a rather niche market, therefore the margins are slightly higher compared to its competitors. Moreover, the planned introduction of in-house meal preparation is expected to increase them even further.

Charging for extra servicesIn the beginning the only add-on would be a smoothie drink complimenting the meal. After establishing an initial customer base, most likely after the second year, a brief study would be conducted in order to determine the existence and the extent of interest of our customers in additional offerings such as cookbooks and fitness advisory.

Cost development forecastInitially, the majority of variable costs will depend on the degree of success of the cooperation with restaurants in Vienna as well as the negotiations regarding delivery services. Moreover, even though the market has been screened regarding the rent prices, they are known to be rising in Vienna year by year, so theres a certain risk that the assumptions about rent expenses will have to be adjusted upwards.

Financing assumptionsFirstly, majority of capital required to finance the business in its early stages has already been raised from family members and friends, in the total amount of EUR 65,000. Moreover, a low interest loan in the amount of EUR 5,000 has been procured. However, in order to ensure that the business wont run out of cash in the beginning, additional EUR 15,000 is needed. In case of the whole amount being raised from outside investors, the funds raised from the loan would be left unused as a reserve in case of some unforeseen circumstances.

Potential economies of scale assumptionsAs the core business is focused on the food delivery, one of the significant cost reductions is expected to come from preparing the delivered meals in-house. This would be combined with the delivery services, as our own prepared meals would focus on covering the niche markets where traditional restaurants have no reach, such as paleo diets, gluten-free meals, and diets focused on high protein intake or low intake of carbohydrates.Another benefit from increasing the scale would be the cost of individual deliveries. As the geographical area of our venture is quite focus, the cost per delivery would go down as the number of deliveries in one area increases.Finally, increased scale would result in a better negotiating position with suppliers for all of our provided services.

Fixed and variable costs assumptionsThe most notable among fixed costs are rent expenses. As mentioned previously, those are also those most likely to see some considerable increases in the coming years in case the rent prices in Vienna keep on rising. Apart from that, salaries of administrative and IT employees needed to be considered as they are essential for day-to-day running of the business as well as the creation and maintenance of the website and online order system.

Additional commentsThe founders will try to have the guerrilla approach towards many of the ventures activities by the usage of free tools/services where available as a cost saving measure. Among those with the most impact in the initial stages would be the usage of social media for advertising and marketing, providing excellent services in order to leverage word of mouth marketing as well as some variances of bring your own device policies such as delivery employees using their own bikes.

SEILBAHN 25 March 20154