2. Value Proposition
The thrust of our idea is that most grocery shoppers in Lagos, Nigeria did not enjoy their shopping experience
due to the state our of markets and hence are in a need of an improved shopping experience. Our value
proposition is to provide an avenue for improved shopping experience, hygienic and consistent quality for
grocery shopping in Lagos.
Our Hypothesis
1)Nigerian grocery shoppers mostly who are women did not like their shopping experience and wanted a
better shopping experience
2)We hypothesised that shoppers would be willing to pay more for an improved shopping experience.
3)Online shopping and home delivery for groceries was an option they were considering
4)That shoppers would be able to pay 20-50% more of original prices for improved hygiene and better
shopping experience
Our Experiment
An online survey was conducted using www.freeonlinesurveys.com, our questionnaire was hosted at
(http://freeonlinesurveys.com/s.asp?sid=nmpfnbyzbnb58ma59496) and our live result of the survey is
hosted at (http://freeonlinesurveys.com/app/item-liveresults.asp).
3. Result of Questionnaire
Gender Marital Status
33.30% 28.20%
Male
Female Single
Married
66.70%
71.80%
Age Bracket
How much worth of grocery do you consume in a week
80.00%
71.80%
70.00% 82.10%
60.00%
50.00%
40.00%
30.00%
20.00% 15.40%
10.30% 10.30%
10.00% 5.10%
2.60% 2.60% 0.00%
0.00%
0.00%
15-25 25-35 35-45 45-55 55-65 N5,000-N10,000 N15,000-N20,000
N1,000-5,000 N10,000-15,000 Others
4. Result of Questionnaire
Where do you currently shop for groceries? How often do you shop for groceries?
46.20%
38.50%
28.20% 30.80%
20.50% 20.50%
12.80%
2.60%
0.00%
Local Community Markets Others Twice a Week Once a Month
Local Specialised Market Specialised Malls Once a Week More than twice a week Others
How best do you describe your shopping experience? Are you willing to pay for a better shopping experience
53.80%
25.60%
Yes
23.10% No
15.40%
5.10%
2.60%
Very Stressful Stressful Enjoyable Very Enjoyable Others 74.40%
5. Result of Questionnaire
How much additional are willing to pay for an improved experience?
75.90%
24.10%
0.00% 0.00%
10% of cost 20% of cost 30% of cost Others
Do you think online and home delivery of groceries would work for you.
2.60%
Yes
35.90% No
Others
61.50%
6. Interpretation of Questionnaire
Results
Hypothesis 1
69.7% of respondents stated that their shopping experience was stressful and not enjoyable and just 27.2% of
respondents answered that their shopping experience was enjoyable. This validated our initial hypothesis
that shopping for groceries in Nigeria is a stressful past time for most shoppers hence validating the need for
improved shopping experience for Nigerian grocery shoppers
Hypothesis 2
78.8% of the 69.7% of the respondent who said shopping was a stressful experience for are willing to pay
more for a better shopping experience hence validating our second hypothesis
Hypothesis 3
72.7% of total respondent stated that they are willing to pay more for outsourced purchasing and home
delivery of groceries and another 57.6% of total respondent stated that they were online shopping was
feasible solution they were considering hence validating our initial hypothesis
Hypothesis 4
76.0% of respondent stated that they would only be able to pay 10% of overall cost more for improved
shopping experience hence this disproved our initial estimate of 20-50% of overall cost.
7. Market Share Analysis:Grounds up
Food Consumption, a National view High
Estimated Market Sizes
Value of Total Food Consumption 2010
% QSR and FSR (service component of
food consumption)
$126B 2011est. -5% $120B 2011est.
Source : Nigeria Bureau of Statistic 2010
% food consumed in Agriculture
% Agriculture in GDP
Nigeria's GDP Figure component of GDP
39.49% 80%
$194B 2011est. $88B 2011est.
% Wholesale & Retail Trade in % food consumption in wholesale
GDP & retail trade in GDP
19.87% 60%
Source: WWW.TRADINGECONOMICS.COM -| IMF
Imported Processed
Food including grains
Retail Food Import Into Nigeria 10.0%
Local unprocessed Food
$900M 2011est.
85.5%
Source: Steady Growth of Nigeria's Retail Food
Sector 2011, USDA GAIN report
Local Processed Food
$9B 2011est.
4%
Others
0.5% Low
8. Market Share Analysis: Lagos Analysis
Average Density in Estimated Food Industry
Assuming our Mall serves size in Nigeria
Metropolitan Lagos is
an area of 10 sq. km
20,000 person per sq. km
$120B
% Consumption in Lagos
Assuming an Average Source: Nigeria Bureau of Statistic
family size 4 persons 9% 2010 Consumption Report
Estimated Food Industry
Implies 50, 000 Size in Lagos
households within a 10
square km range ~$10B
Assuming a consumption
Consumption period of 50
pattern of N2,500 per Target Market $417
weeks in a year
week i.e.$17 per week million which is equivalent
~4.33% of the Lagos
Market
Revenue accruable will be
$417 million
9. Zeroing in on our Target Market
$120 Billion
The available Food market in
Nigeria spanning over 36
states.
$10 Billion
Our Initial served
Food market in Lagos
$417 Million
Our target market serving
households living within 10
sq. km of the Mall
