9A. Testing The Hypothesis Part 2

For this assignment I am going to propose a new idea. My idea in the previous assignment would require an incredible amount of knowledge in technology and sustainability so I decided to move on. My new business plan is to start a grocery store where every 50th customer gets their groceries for free. It may seem crazy at first, but I believe giving away groceries would cause many customers to want to come in and that would actually increase business. On top of that, so much food is spoiled at the end of the day anyway so the losses will hardly be noticeable. I have always wanted to run a grocery store, however the barriers to entry are very big because it would be impossible to compete with the big chain stores. However, this plan would make my store have a competitive advantage and make people want to come and shop with the chance of getting their food for free.

For my interviews I told 5 people my plan and asked them what they thought of it. I got mixed reviews. 4 of the people were college age students and one was a 50 year old. Two people loved the idea and said that they would always shop there, especially if the food is still of good quality. The other three thought it was a great marketing strategy but mentioned it is not really a business. From the interviews I realized the biggest struggle is that there is not a real big need, it is more an added bonus to an everyday task. These people were outside the need because they could afford groceries. However, people who struggle financially will find having a chance to gain free food as a major benefit. One of the people I interviewed works at Publix and he said the amount of people who buy the scratch off lottery tickets is shocking and people are always looking for ways to get big deals at check out. This shows how much the public enjoys games of chance in order to win big money, which shopping at a grocery store that gives 1 out of 50 customers their food for free will provide. I did not get quite the positive feedback that I expected, however these interviews revealed major flaws in my idea that I can work to fix.



                        Inside the Boundary                                                Outside the Boundary

Who is In Pretty much anyone who grocery shops can be helped by this business model.	The people who are not in are people who think they have no chance of winning the free groceries or are already loyal to one store that they go to.
The need is people want excitement in their lives even during the most mundane activities such as groceries. People could use help paying for their groceries. People these days also love gambling and betting, especially with the increase of online gambling and legalized sports betting. This can just be another way people have a chance of winning big.	The need is not that this is a necessary thing to have in life, but it can make a boring task exciting.
The need exists because groceries are expensive and there are so many places to choose from. People tend to lower their quality standards so that they can get cheaper food. In this store you will be able to save money and we will strive to keep the food quality the best that it could be.	Alternative Explanations This business plan can backfire, mainly because it is an incredibly competitive industry that takes a lot of time to get into. As stated above, it is not really a dire need, it would more just be an added thing that people may enjoy.