|Project Title||A modern drive thru beverages store with the potential to expand into a full fledged convenience store in which consumers can use an app to order and pay online beforehand.|
|Current Status||Concept / Business Plan|
|Funding Required||RM1,000,001 to RM2,000,000|
|Description||Drinco is a modern 24 hour drive thru convenience store that specializes in selling all kind of beverages to consumers. Our consumer’s ranges from road users stuck in traffic, late night travellers and people who prefer to get their drinks on the go without having the need to get down of their vehicle. Just think of us as a modern 7/11 concept convenience shop with an addition of drive thru services.
Drinco will adapt technology in its business model as it will allow consumers to order their drinks online before even reaching the store. With the existence of an online app, Drinco aims to cut down waiting time for consumers in drive thru lanes. This will allow Drinco to develop an edge in providing a quick and efficient service.
Our vision moving forward will be to introduce new products other than beverages and services such as mobile top-ups which are essential to consumer daily needs. In addition, Drinco aims to expand by establishing at least one store located strategically in every state in Malaysia and introducing delivery services. In 5 years, Drinco sustainability will be enhanced by moving into the global market.
The key to our success will be marketing strategy where we hope to develop Drinco as a cool brand among Malaysian consumers.
In conclusion, Drinco aims to be a disrupter in the convenience store industry by using technology in majority of its operations.
|Business Opportunity||Drinco solves the problem faced by modern convenience stores where it hopes to reach wider range of consumers by providing an online platform. This platform will allow consumers to order their beverages online before reaching the store thus making it an easier and quick shopping experience for consumers.
In addition, Drinco will also introduce drive thru services for consumers who look to buy their beverages on the go without the need to get down of their vehicles. Consumers which are targeted in this segment are road users, those who are stuck in heavy traffic, athletes who are on road after their training are in need of drinks to satisfy their thirst, and also for those who just want to get quick drinks for late night parties.
Drinco provides a simple idea to solve the issues faced by millions in the country and is line with the modern technological world. Its competitive edge lies on the fact that Drinco will be the first convenience shop to offer drive thru services to its consumers and Drinco aims to achieve market share by locating in busy roads with heavy traffic and in major highways in the country.
The number of convenience store in Malaysia is growing at a CAGR of 2.5% during 2014-2020.
The retail industry of Malaysia is expected to grow as the players are introducing the retail commerce service, which leads the modern grocery. Further, the share of convenience store sales in total retail sales has also been incorporated for the country.
The problem with these convenience stores is that they are not that convenient anymore in this modern society and tech driven world. Consumers would still need to get down of their vehicles and get into a brick and mortar store. This is where Drinco comes in and solve the problem by providing an online platform and drive thru services for consumers.
The targeted market for Drinco is as follow:
1) Workers stuck in traffic after work
2) Athletes who would want to buy some drinks after training or to training
3) Casual road users on normal roads and highways looking for quick fix to satisfy their thirst
4) Ala carte fast food buyers. Limited choices of beverages in fast food outlets
5) People who would want to buy some quick drinks and snacks late night for parties or outings
6) Coffee drinkers in the morning
As can be seen above, the targeted market consist of many potential consumers for Drinco. These consumers can be sustained as Drinco loyal customers with the introduction of point rewards system in the app or introduction of member cards which in return can be used as debit cards for many purposes.
The potential of the market is huge in this untapped industry and Drinco aims to be a disrupter in the convenience store section and have a first mover advantage in this industry.
|Revenue / Business Model||xxx|
|Company Background||This is just a business idea/concept at the moment. I have approached an IT company to develop the web and app as well as the drive thru technology. But i can’t proceed with them as i do not have the required capital to start off the business. A suitable investment would be needed to kick start the business.|
|% Equity Allocation||15%|
|Expected ROI||With the 15% equity allocation, investors will earn back their initial investment by the end of year 3 and then gain profit for the following years.|
|Risks and Mitigation||The convenience store industry is competitive in Malaysia. 7-11 leads the way in terms of market share and it’s followed by the likes of 99Mart and other small players in the industry. But Drinco is different in many reasons because it is a niche technology driven convenience store unlike many in the market. It will be a unique new in nature convenience store which will be face by many similar competitors in future following the same idea. Hence, Drinco is adamant to constantly develop its strategies and utmost importance will be given to business development to ensure it leads the industry.
In terms of competitive landscape, Kuala Lumpur is filled with convenience store but none of them are on the go. Drinco aims to establish a first drive thru beverage shop in Kuala Lumpur as the targeted market potential is huge in the area. In the end of year 2, Drinco will look to establish a store in Ipoh as the owner is from Ipoh and have knowledge of the local market potential. This will be followed by developments in other states in Malaysia.
Drinco aims to be a leading drive thru convenience store player in the industry in 5 year time and expand internationally. The potential is huge in this market and Drinco will be the first to tap into it.
Other risks may come in form of economic uncertainty.
|Exit Strategies||I believe in sharing economy as it is the way to move forward. Investors can exit the business after 5 years by the time in which they will already have made up a considerable amount of profit from their initial investment or they can continue to be partner with us as long as the relationship is profitable and good for the business.
But, if there is an unexpected situation in future in which the company decides to go fully private or public, investors will be given their fair share of equity amount they own in the company based on the company’s valuation upon their exit. Note that i expect the company’s valuation to be in the range of RM50-RM200 million by year 5 if growth strategy is followed thoroughly.
|Business Address||8 hala sepakat 10 taman pinggir rapat perdana ipoh,perak.|
|Contact Person||Harjinder Singh (Harjin)|