Assignment TakenPrepare and Present complete Business Plan for Company's Board Approval

Case UnderstandingAirway Delivery is a courier company, which has branches across India and delivers to most pin-codes. Company has decided to venture into ‘Hyper Local Delivery space’ and want to conduct local delivery through drones. company has all necessary permissions. Trials are conducted at beyond the visual line of sight (BVLOS) and successful test deliveries are conducted. Company has decided to start this venture as “Short Range Drone Based Services” instead of Long-Range Drone Flight operations due to high purchase cost of “Long range drones”. Company Intend to build an end-to-end Drone Operations & Management Platform through which a rapid scaling of business can be achieved. Company has performed several successful beta testing deliveries for initial participants such as food delivery companies, few Pharma Chains & Internal Local deliveries and looking forward to exploring more business areas for cost-effective cargo deliveries.

BCS Solution SummaryAirway delivery is courier company they want to deliver the courier by using Drone service We have been able to lease a facility that is big enough to fit into the design of the kind of warehouse facility we intend operating from and the facility is centrally located in the heart of town with easy delivery network. Airway Drone Delivery Services, will deliver a wide range of parcels within our stipulate limit to locations in and around We will engage in transporting medicines and vaccines, and retrieving medical samples, into and out of remote or otherwise inaccessible regions and transporting packages, machine components, food or other goods. We are aware that there are several large and small commercial drone delivery companies all around , which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, strong online presence and our office is well secured with the various payments of options. Our customer care is going to be second to none in the whole of and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our services. Drone Delivery Services, will ensure that all our customers are given first class treatment whenever they visit our office. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are. Drone Delivery Services, will at all time demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Solution

CONTENT

1. Our Product and Services
2. Mission and Vision Statement
3. Our Business Structure
4. Job Roles and Responsibilities
   1. Leader
   2. HR Manager
   3. Warehouse Manager
   4. Sales and Marketing
   5. Information Technologist
   6. Finance Head
   7. Client Service Executive
   8. Drone Delivery Operator
5. SWOT Analysis
   1. Strength
   2. Weakness
   3. Opportunities
   4. Threat
6. Market Analysis
   1. Market Trends
   2. Our Target Market
7. Sales and Marketing Strategy
   1. Sales Forecast
   2. Marketing Strategy and Sales Strategy
8. Publicity and Advertising Strategy
9. Pricing Strategy
   1. Payment Options
10. Sustainability and Expansion Strategy
11. Conclusion

 

1. Our Products and Services

Drone Delivery Services, is in the commercial drone delivery line of business to maximize profits, and we are going to do all that is permitted by the law to achieve our business goals.

We will engage in transporting medicines and vaccines, and retrieving medical samples, into and out of remote or otherwise inaccessible regions and transporting packages, food or other goods via our reliable drones.

 

2. Our Mission and Vision Statement

• Our vision is to become the leading brand in the commercial drone delivery services line of business in the whole.
• Our mission is to provide faster and reliable means of delivering parcels via drones. We want to build a commercial drone delivery services company that can favorably compete with other leading brands in the commercial drone delivery services industry both in the United States of America and in other parts of the world.

3.Our Business Structure

Drone Delivery Services do not intend to start a commercial drone delivery business without a solid structure; our intention of starting a commercial drone delivery services business is to build a standard business that can favorably compete with leaders in the industry. Will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Drone Delivery Services.

• Chief Executive Officer (Owner)
• Warehouse Manager
• Human Resources Manager
• Sales and Marketing Manager
• Information Technologist
• Accountants/Cashiers
• Customer Services Executive
• Drone Delivery Operators

4. Job Roles and Responsibilities

Leader:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Answerable for fixing prices and signing business deals
• Responsible for providing direction for the business
• In charge of signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Warehouse Manager:

• Responsible for managing the daily activities in the warehouse
• Ensures that proper records of goods meant for delivery that are kept in the warehouse
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Control goods delivery and delivery chain inventory

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Helps to increase sales and growth for the company

Information Technologist

• Manages the organization’s website
• Monitors the delivery of parcels from our office / warehouse to client’s destination
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Finance HEAD

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Drone Delivery Operators

• Assists in loading and unloading drones
• Maintain a logbook of their drone flying/delivery activities to ensure compliance with federal regulations
• Keeps a record of drone inspections and make sure the drone is equipped with tracking devices
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Comply with drone delivery rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collect and verify delivery instructions
• Report defects, accidents or violations

5. SWOT Analysis

We are quite aware that people and businesses have not fully embraced the use of drones as delivery options, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

 Drone Delivery Services employed the services of an expert HR and Business Analyst to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Drone Delivery Services.

 

• Strength:

Our location, the business model we will be operating on, varieties of payment options, safe and reliable delivery and our excellent customer service culture will definitely count as a strong strength for Drone Delivery Services.

          The important advantage of using drones is its potential to decrease the travel time for diagnosis and treatment. Patients within a 4.6 square mile radius can be reached by a drone in a minute which is 10 times faster than conventional emergency services. Drones are a cost-effective alternative to road transport in difficult terrains. A simulation model has shown that the drones could increase vaccine availability and decrease the costs. As drones fly close to the surface of the Earth, the limitations associated with satellite images, such as cloud contamination, are overcome by drones and they can provide accurate data. Drones can be operated in difficult areas, such as mountains, canyons, or snow-covered ground, and assisted rescue teams in searching and documenting missions.

• Weakness:

A major weakness that may count against us is the fact that we are new commercial drone delivery company and we may have to ride on external publicity of the reliability of drones as a safe and fast means of delivery to grow our business.

1. Manpower and Infrastructure

Operating drones require trained staff and continuous monitoring from the ground. Lack of infrastructure like runway is a potential problem; however, it can be overcome by using drones having vertical take off and landing.

When drones are used for medical purpose, there is a possibility of job loss for those who are currently involved in the transport of medical products. But new staff will be recruited to operate the drones.

1. Technical Limitations

Unlike commercial planes and helicopters, drones cannot carry heavier payloads or deliver goods long distances. The payload of a drone varies between 2 and 4 kg.

 The smarter a drone, the weight, and its cost would increase. The safety and efficiency of drones are not well established. The battery life of drones is a concern, which can be addressed by using solar-powered drones for example the Aquila by Facebook. Drones can be programmed to a return-to-safe location if the battery is low or communication is lost. The tolerance of drones to adverse environmental conditions like wind and turbulence is not clear. Electromagnetic interference has disturbed the signal reception in the monitoring of drones from the ground.

• Opportunities:

The fact that we are going to be operating our commercial drone delivery company in, a city that is known to embrace new technology is an opportunity that we need to leverage on. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they hire our services; we are well positioned to take on the opportunities that will come our way.

• Government initiatives such as the “Make in India”, which promotes the domestic manufacturing of drones, would further fuel the growth of the commercial drone market in India during the forecast period.

1. Transport of Blood, Medicines, and Biologicals:
   1. In developing countries, such as India, there is a shortage of safe blood in hard-to-reach areas. Drones can be used to transport the blood, required for transfusion during surgery or delivery, from blood banks in cities or towns to a remote health centre. This will avoid the need to set up blood storage facilities in rural health centres and save costs. we can also be used to deliver blood to mass casualty scenes. The delivering of blood using drones to clinics located in hard-to-reach areas in a short time and at the cost of motorbike delivery.
   2. In rural areas, the delay in diagnosing diseases due to lack of laboratory facilities can be overcome by the use of drones. Health workers can be trained to collect samples from patients and send them to the nearest laboratory by drones. The results can be sent back to the health worker along with medicines if tested positive. Drones have been used successfully to transport blood samples from villages without diagnostic facilities to laboratories in cities.
2. Organ Transplantation

One of the biggest challenges in organ transplantation is in moving the donated organ from the facility where it is harvested to a recipient admitted at another distant hospital in the shortest possible time. To avoid the delay in this transport, traffic police departments usually create a Green Corridor by blocking the traffic and making way for the ambulances carrying the organs. With the use of drones, organs can be transported in a short time bypassing the busy traffic. Kidneys transported in drones did not show damage related to extrinsic forces.

• Threat:

A major threat that may work against us is the fact that people and businesses have not fully embraced drone as a means of delivery. So also, legal and regulatory environment can stand as a challenge to us. In essence, integrating the technologies into daily life could take a long time—or it could happen very quickly.

1. Safety of the Public

In a case of an accident, the drone may fall in a residential area and injure the public. Military drones have crashed and caused huge damage. Apprehension among the public exists due to fear of military drones. Safety of the Drone.

 Hackers can hijack a Drone using GPS jammers and loot the Drone or its payload. Software resistant to hacking have to be developed.

 

6. MARKET ANALYSIS

• Market Trends

If you read up stuffs from the internet about commercial drone deliveries, you will agree that with time, it will become one of the first options when it comes to the delivery of parcels that are within the required weight range. In the meantime, drone deliveries will probably get their start in remote areas, or in cases like flying vital machine components to oil rigs and mines, or by collecting data on shipping to make it more efficient.

As a matter of fact, people are already paying premiums to get their parcel delivered via drones

ØOur Target Market

We are aware that commercial drone delivery business is pretty much green and would require innovative marketing approaches. Our target market cuts across hospitals that need delicate blood samples or medicines, oil rigs that need replacement parts, residents in remote towns that need key supplies and companies that need timely data et al.

In view of that, we have positioned our commercial drone delivery services to service. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to services the following people and organizations;

• Households
• Pharma services
• Corporate Executives
• Business People
• Corporate organizations
• Grocery stores
• Fast food restaurant
• Post office
• Documentation companies

7.SALES AND MARKETING STRATEGY

In essence, our source of income will be the delivery of medicines and vaccines, and retrieving medical samples, into and out of remote or otherwise inaccessible regions and transporting packages, machine components, food or other goods with the aid of drones.

 8. Sales Forecast

One thing is certain when it comes to commercial drone delivery business, if your company is well – publicized and centrally positioned coupled with effective and reliable delivery services, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in and around and we are quite optimistic that we will meet our set target of generating enough income from the first one year of operation and grow the business and our clientele base.

We have been able to critically examine the commercial drone delivery services line of business and we have analyse our chances in the industry and we have been able to come up with the sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startup.

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9.Marketing Strategy and Sales Strategy

Prior to choosing a location for Drone Delivery Services, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents and businesses in and around. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the commercial drone delivery services line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market.

• For Marketing we can tie up the food aggregator apps like swiggy, Zomato and take app like Dunzo
• For food aggregator we will ask the apps to make space for a drone delivery video in the app space itself. The video will show the hotel in the area view which will be a one time shoot with the name of the drone deliveey company in one corner or a watermark in the video. This will add to the marketing because people will see the video in the app and the brand's name will be shown everytime someone orders food. The hotel will also be ready for this type of in app video instead of stock images of the hotel because it will be advertising for the hotel as well.
• Another method is to tie up with the local hotels itself instead of intermediate apps. This will give hotels a chance to distribute leaflets to the nearby housing societies from the newspaper telling that we offer drone delivery . Hotels and the compa6 can jointly invest in printi5 and distribution of leaflets.
• A camera broadcasting live to the app from which the food is ordered can also be done to make the deliebey feel more exciting and engaging. The customers can post the delivery speed and time on social media and can post a speed up video of the delivery footage on their social media handles . This will give the necessary media attention for the drone company. Also for every video shared the customers get a 5% on the next delivery.
• We can run Facebook ads within a radius of 5 kms showing the real time delivery of the footage shot from a camera mounted on the drone itself. And we can create testimonial video of people sharing their experience of how fast there delivery happened. Both this videos can be advertised with Google and Facebook and for the set radius only.
• Instead of setting up hoardings we can create a considerably big teflon sheet on which the drone delivery details will be printed. This sheet will be flown around the said radius for 60 minutes every day. The sheet will have the details to contact the hotels to make a drone delivery to them. Also people will see the teflon type advertising sheet been flown around and will shoot a video of it and it has a high chances of going viral. We have to out a scannable we code large enough on this teflon sheet and fly it with the drones so that people can simply point the phone cameras towards the teflon advertising sheet and place an order. We can shoot a video of a person scanning the big we code on the teflon sheet and advertise it again on social media platforms within a 5 km radius.
• We can also tie up with local kirana stores who need to deliver groceries to nearby housing societies.
• Milk delivery is again one other chire that housing societies can come together and can place an order for the entire society.
• All the Marketing activities told above will not cost more than 1 lakh rupees
• Drones can now be used to deliver 'just-in-time' supplies to customers who live within a 10 km radius from a base station. Items available for delivery could include all food items and drinks.

Market Scenario

According to this research, India's commercial drone market is projected to grow at a CAGR of 12.4% during 2020-2026. Based on types, rotary blade drones dominated the India commercial drone market share in 2019 owing to its special advantage of vertical landing and take-off.

 

Marketing plan:

For branding and awareness:

• They can start their you tube channel, Instagram page, Facebook page where they can start posting creatives. On you tube channel they can start live sessions as well as post videos how they are delivering food on time and how drones are working, which safety they are taking.
• SMO: they can use all social media platforms and they can do social bookmarking, pdf submissions, quora question Answer where they can give link there which will give them backend traffic.
• They can work on off page and on page SEO. They should post daily articles, blogs, links, images on Tumblr, Reddit, scoop it, Diggo
• They can circulate leaflets, or post advertisement in newspaper as traditional way of marketing.
• They can also start forwarding messages on WhatsApp about their services where they can reach to many people.
• They can make their own app or they can ask Zomato, swiggy to make section in their app So they can ask people to install app and ask your 5 friends to install it if they
• Installed then you will get your first order free. So this way many people will install the application and it will help not only for their branding but will be helpful for Zomato and swiggy too, So this will attract other food delivery sites to tie up with your company.

In summary,

The following sales and marketing approach to win customers over;

• Open our commercial drone delivery services business in a grand style with a party for all.
• Introduce our commercial drone delivery services business by sending introductory letters alongside our brochure to organizations, households and key stake holders in and around.
• Make use of attractive hand bills to create awareness and also to give direction to our office facility
• Position our signage / flexi banners at strategic places around.
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on roadshows within our neighborhood to create awareness for our commercial drone delivery services business.

10. Publicity and Advertising Strategy

Despite the fact that our commercial drone delivery services business is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our commercial drone delivery services business.

Drone Delivery Services, has a long – term plan of expanding our drone delivery services all around Columbus and neighboring states which is why we will deliberately build our brand to be well accepted in India before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Drone Delivery Services.

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business
• Ensure that our we position our banners and billboards in strategic positions all around Columbus – Ohio
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our commercial drone delivery services business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our drones, official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

11. Our pricing Strategies

 Drone Delivery Services, we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in loads of parcels to be delivered via drones to their large clientele base. In addition, we will also offer special discounted rates to all our customers at regular intervals.

• Payment Options

The payment policy adopted by Drone Delivery Services, is all inclusive because we are quite aware that different customers prefer different payment options them but at the same time, we will ensure that we abide by the financial rules and regulation.

Here are the payment options that Drone Delivery Services, will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines
• Payment via online bank transfer
• Payment via check
• Google pay or Phone pay

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

12.Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Drone Delivery Services, is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our drone delivery services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Drone Delivery Services, will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

TAG LINE:

“ON TIME, EVERY TIME”

 

 

Conclusion• Drone Delivery is indeed a big leap in the field of logistics, but as excited as we forget our parcels delivered by the air drones, it still has a long way to go! If we talk about the developing country like India, where the roads and traffic are not organized, unmanned air vehicles could prove to be disastrous if not programmed well! Further, air traffic, cybersecurity, hacking, delivery cost, and other concerns should also be considered. • Drone Service Provider Ranking shows that capable drone service providers are located all over the world. Moreover, new Drone Service Providers continue to emerge, while established companies continue to grow, which reflects the ever-growing drone industry • Drones are set to become the future of logistics with their reduced cost, higher convenience and delivery times of less than 30 minutes. Both online retailers and brick and mortar stores will adopt it to smoothen their last mile delivery process. The early adopters will be the winners as they will be able to provide their services at cheaper and quicker rates leading to brand promotion Deliver by drone. • With drone deliveries quickly becoming a reality, the need for security, coordination and proper logging is a must for the future. Using blockchain can help solve these problems immensely, and, combined with an IoT monitoring device that enables for multiple inputs from the drone, will allow any drone to become a more secure flying aircraft. It’s imperative to be able to secure drones from malicious parties, create a verified trail of audibility, and pave the way for the future through proper communication and protocol standardization amongst different manufacturers and operators make it happen!