Milestone 6

a) Determine the size of your target market (including the different sub-markets)

Identifying the target market is a key part of the decision-making process.

To determine the target market, we identified the people for whom this application would be useful. We started by using the target market of people from the city of Bucharest. We started with it because it is the capital of the country, also being the largest university center and having the largest workforce in the private sector in Romania. From a demographic point of view, our customers will be between 18-35 years old, being students or young people who work, in particular, in corporations where the teams of people are bigger. Psychographically, these clients must have large groups of friends, enjoy spending time with other people, use technology to make tasks easier and have a predominantly active lifestyle.

To approximate the size of the target market, we used two methods:

1. Top Down Market Sizing: this method is simple, but it's often unreliable and overly optimistic. For this we looked at the size of the target market, it is composed of people aged between 18 -35 years, from Bucharest. We divided the target market into two sub-markets: students and employees. Thus, in Bucharest there are approximately 127,500 students and over 250,000 employees working in modern offices. The size would reach over 377,500. This is an incredibly optimistic and unrealistic figure. The top-down approach gives us inflated data, and we can't rely on it to make good decisions.

2. Bottom-Up: This approach takes more time than top-down market sizing because we have done all our own market research and are not just relying on generalized forecasts and trends. However, we received a more realistic and accurate assessment of our market's potential. In order to estimate the clients' interest in the most realistic way possible, we focused on the competitors and we used the previously performed validations. Competitors address a larger market than the one we set out to analyze, so the data analyzed from them is not very relevant for our analysis. The form used in Validation 1 can give us a prediction, because this form was

distributed to people who come from backgrounds similar to ours, being shared into work or college groups. This data comes mostly from people who use technology to carry out their daily tasks. In Bucharest, in 2021, approximately 105,600 people work in the IT&C field, of which more than half are under 35 years old and there are about 5,000 students in the same field. The form received 42 responses from people aged 18 -35. From the form, 89% of the people who answered are interested in such an application. To be conservative, we will reduce the number to 40, so out of approximately 57,500 people in the target market, 23,000 could use the application, in a favorable case, and most of them would only use the free version.

b) Determine the approximate number of players / competitors in your targeted market

For our product, the main players in the target market are customers and competitors. Customers are the most important players. They are the users, consumers, or buyers. Their feedback can attract other customers. Following some approximate calculations, we can estimate a number of 20,000 potential customers. The competitors in our target market are the already existing applications that deal with cost-splitting and making lists. There are several such applications, but most of them are not very well known in our market segment. These applications have a wider target market than ours, which makes it difficult to update them based on the geographic area we have chosen as our target market.

c) Present the competition and if possible market share for each competitor

1. AnyList

AnyList is a grocery shopping and recipe organization app that helps users create and share grocery lists, as well as plan and organize their meals. Some of the key features of AnyList include:

- Grocery lists: Users can create and share grocery lists with others, and can also organize their lists by store or by category. This makes it easy for users to keep track of what they need to buy and to share lists with others.

- Recipe organization: AnyList allows users to save and organize their favorite recipes, and to create meal plans for the week. Users can also import recipes from websites or add them manually, and AnyList will automatically add the ingredients to the shopping list. This makes it easy for users to plan their meals and ensure they have all the ingredients they need on hand.

- Automatic item grouping: AnyList automatically groups similar items on a grocery list, making it easier for users to see what they need to buy. This can help users save time and avoid missing items when shopping.

- Voice input: Users can add items to their lists using voice input, making it easy to add items on the go. This can be especially useful when shopping in a store and trying to add items to the list quickly.

- Automatic expiration reminders: AnyList can remind users when items on their grocery list are about to expire, helping them to use their groceries before they go bad. This can help users save money and reduce food waste.

AnyList is available on the App Store for iOS devices and on Google Play for Android devices. It offers a free version with basic features, and a subscription-based version with additional features. AnyList is a convenient and user-friendly app that can help users save time and money on their grocery shopping. It has received mostly positive reviews from users, who appreciate its useful features and user-friendly interface. The size of the AnyList app varies depending on the platform and device, but it is generally a small app that can be easily downloaded and installed. In addition to the free version, AnyList also offers a subscription-based version with additional features such as recipe importing and an ad-free experience. Overall, AnyList is a useful tool for anyone looking to better plan and organize their grocery shopping and meals.

2. Flipp

Flipp is a mobile app that helps users save money on their grocery shopping by providing access to weekly store flyers and coupons. It offers a wide range of features to make shopping easier and more convenient, including:

- Access to weekly store flyers: Flipp provides users with access to the weekly flyers of local stores, allowing them to browse deals and plan their shopping trips.

- Coupon clipping: Flipp allows users to clip digital coupons directly from the app and redeem them at participating stores. The app offers a variety of coupon types, including manufacturer coupons, store coupons, and digital coupons that can be redeemed at the register.

- Customized deal alerts: Users can set up alerts for specific items or brands, and Flipp will notify them when those items go on sale at nearby stores. This feature helps users stay on top of the best deals and save money on their groceries.

- Shopping list: Flipp includes a shopping list feature that allows users to add items to their list and check them off as they shop. The list is automatically synced across devices, so everyone on the list has access to the most up-to-date version.

- Store loyalty cards: Flipp allows users to link their store loyalty cards to the app, making it easier to track rewards and redeem offers.

Flipp is available on the App Store for iOS devices and on Google Play for Android devices. It is free to download and use, with no in-app purchases required. The app has received mostly positive reviews from users, who appreciate its wide range of features and helpful alerts. The size of the Flipp app varies depending on the platform and device, but it is generally a small app that can be easily downloaded and installed. Overall, Flipp is a convenient and useful tool for anyone looking to save money on their grocery shopping.

3. Our Groceries

Our Groceries is a grocery shopping and list-making app that helps users plan and organize their shopping trips. Some features of Our Groceries include:

- Shared shopping lists: Users can create and share grocery lists with others, and can also assign items to specific people.

- Automatic list syncing: Lists are automatically synced across devices, so everyone on the list has access to the most up-to-date version.

- Voice input: Users can add items to their lists using voice input, making it easy to add items on the go.

- Custom categories: Users can create custom categories for their lists, such as "Produce," "Bakery," and "Meat," to help organize their shopping.

- Recipe integration: Users can import recipes from websites or add them manually, and Our Groceries will automatically add the ingredients to the shopping list.

- Price: Our Groceries is a free app, with optional in-app purchases available.

- Platforms: Our Groceries is available on the App Store for iOS devices and on Google Play for Android devices.

- User reviews: Our Groceries has received mostly positive reviews from users on the App Store and Google Play. Many users appreciate the app's simplicity and ease of use, as well as its helpful features such as automatic syncing and voice input.

- Size: The size of the Our Groceries app varies depending on the platform and device, but it is generally a small app that can be easily downloaded and installed.

4. Bring!

Bring! is a useful and convenient app that allows users to create and share grocery lists, as well as plan and organize their meals. Some of the key features of Bring! Include:

List sharing: Bring! allows users to share their grocery lists with others, either by sending a link or by inviting others to join the list. This can be especially useful for families or roommates who need to coordinate their grocery shopping.

- Recipe box: Bring! includes a recipe box feature that allows users to save and organize their favorite recipes. Users can also create meal plans for the week and see which recipes are included in the plan.

- Recipe import: Bring! allows users to import recipes from websites or add them manually. The app will automatically extract the ingredients from the recipe and add them to the shopping list.

- Item suggestions: Bring! can suggest items to add to the shopping list based on the user's past purchases and recipes. This can be especially useful for users who are trying to come up with meal ideas or who need inspiration for what to buy.

- Item tagging: Bring! allows users to tag items on their shopping list with special icons or labels. For example, users can tag items as "sale" or "organic" to help them keep track of their shopping priorities.

- Reminders: Bring! allows users to set reminders for items on their shopping list. For example, users can set a reminder to buy milk every week, or to pick up a gift for a friend's birthday.

- History: Bring! includes a history feature that allows users to see their past purchases and recipes. This can be especially useful for users who are trying to track their spending or who want to remember what they bought in the past.

- Multiple lists: Bring! allows users to create and manage multiple lists, such as a separate list for each store they shop at or a list for each category of items.

- Cross-platform synchronization: Bring! synchronizes across devices, so users can access their lists and recipes from any device. This can be especially useful for users who use multiple devices or who share lists with others.

d) Estimate your potential market share in year 1, 2, 3, 4 and 5 after launch

To estimate our potential market share in the first five years, we need to consider both the size of our target market and the competitive landscape in which we will be operating. Our target market is defined as young people aged 18-35 living in Bucharest, with a focus on students and employees in the IT&C sector. Using our bottom-up market sizing approach, we estimate that there are approximately 20,000 potential customers in this market.

To assess the competitive landscape, we need to consider the existing applications that offer similar functionality to ours. These include AnyList, Flipp, Our Groceries, and Bring!. Although these applications have a wider target market than ours, they are still relevant competitors because they offer similar functionality and may be used by some of our potential customers.

Based on our analysis of these competitors and our own product's strengths and weaknesses, we believe that we can capture a market share of 20% in the first five years. This would equate to approximately 800 customers in the first year, growing to a total of around 4,000 customers by the end of the fifth year.

e) Determine the total market value and the value of your market share for years 1, 2, 3, 4, 5

To determine the total market value for our target market, we can use the estimated number of potential customers and an estimated average revenue per user (ARPU). For the purposes of this analysis, we will assume an ARPU of $50 per year. This would give us a total market value of approximately $1 million in the first year, growing to a total of approximately $5 million by the end of the fifth year.

Our estimated market share of 20% would give us a market share value of approximately $40,000 in the first year, growing to a total of approximately $600,000 by the end of the fifth year. This would be the total revenue that we could expect to generate from our share of the target market in Bucharest over the first five years.

To calculate these figures more precisely, we could conduct more detailed market research to get a more accurate estimate of the size of our target market and the potential ARPU. We could also consider other factors that might affect our market share, such as the effectiveness of our marketing efforts and the potential for growth in the overall market.