Airway Delivery -new venture (AIRDROP): A new perspective of delivery.

Assignment Taken

Airdrop company business plan.

Case Understanding

The AIRDROP is a service-based courier company as a parental company, which deliver products across India in 7 smart cities in various pin codes. The company’s board has recently decided to introduce the delivery would be made through DRONE, and enter into ‘Hyper-local delivery space’. The company has already secure permissions for drone base delivery venture from (DGCA) Director General of Civil Aviation. After conducting successful trials and understanding need of today’s India, drone base delivery has lot of growth potential. The initial participators are food delivery companies and few pharma chains. The decision to enter this service domain is possible and worth pursuing. The company’s new venture requires to achieve break even within first year of operations, board establishment and innovation in processes and product to become market leader.

BCS Solution Summary

AIRDROP has enough budget for fiscal year 2021-2022 to achieve break-even within one year and then expand the business on large scale. This company providing services in 7 smart cities of India like Pune, Mumbai, Delhi, Amritsar, Coimbatore, Jaipur, Srinagar to achieve goals, company need to higher experienced employees with proper job description. Company also taking initiative to give chance to freshers for making this project successful with lots of new ideas and innovation. Company has to create sophisticated, well managed IT infrastructure to provide reliable security, strong speeds, connectivity, support and accessibility for employees and satisfying user experience of client. Apart from this marketing strategy help us to be a market leader in future and be the top-rated company of India. Namely we are focusing on cost, speed, and sophistication of the delivery mechanism. However, there are certain limitations also to overcome in future years.

Solution

BUSINESS PLAN- (for scaling drone delivery business of AIRDROP company.)

INDUSTRY OVERVIEW

The Indian Drone Delivery Service Market was valued at USD 520.0 Million in 2019 and is forecasted to reach USD 9.51 Billion by 2027 at a CAGR of 44.2%. The need to deliver goods faster has boosted the growth in demand for drone logistics. This, in turn has affected the market positively on a global scale.

The delivery drone industry witnessed immense progress in 2019. While a handful of aspiring drone delivery services made their first flights, the other corporations got approvals from regulatory bodies pertaining to the utilization of delivery drones. The players operating in the market are constantly in an attempt to make batteries efficient and cheaper. The complex regulations imposed on various types of drone delivery services often act as restraining factors to the growth of the market. Access to remote areas and reduction on the operational costs has been made possible by the usage of drones. Drone delivery is likely to enhance the instant gratification of consumers thereby providing a competitive edge for businesses. The new drone laws have started facilitating traction in the market, as numerous companies are partnering to disseminate technology knowledge and attract funds. Drones have recorded increased adoption in the recent years owing to its widespread capabilities—from simple photography to surveillance, monitoring roads & railway lines and even delivering essentials/food items to customers. Moreover, even amid the ongoing COVID-19 pandemic, drones played a crucial role in carrying out a host of activities—from surveillance and sanitization to temperature checks and public broadcasting—across the country. This not only helped in minimizing the risk of virus spread, but also helped authorities in ensuring the safety of healthcare and police personnel. The Delivery Drones Market has been Segmented by Type (Rotary-wing and Fixed-wing), Capacity (Less than 10kg and Greater than 10kg), End-user (Food, Healthcare, Retail, and Logistics), and Geography (North America, Europe, Asia-Pacific, Rest of the World).

 

                                                                                    AIRDROP DRONE DELIVERY VENTURE

                                                                      

• VISION- To creates a new kind of demand for logistics services, so we are trying to keep up with that demand and be a market leader. The management principle used here is the ‘Going Concern’ Concept that states that a business should always be seen from a long-tern perspective.
• MISSION- AIRDROP’s mission is to provide every user of India with instant access to vital medical supplies and desired food to their door steps. The aim is to build a commercially drone-delivery system and provide better offerings when compared to the ones offered by the competitors in the same industry.
• MAJOUR GOALS- 1. To achieve Break-Even within first year of operations.

                                      2. Brand Establishment.

                                      3.Innovation in processes and product to become Market leader.

• OBJECTIVES-1.  Value of cost and time

         2. Reliable

         3. treat every customer delivery as though it is meant for someone you love.

 

                                                                           THE BUSINESS PLAN SUMMARY OF AIRDROP COMPANY

MANAGEMENT TEAM

As a business grows, entrepreneurs and business owners may find themselves challenged by filling multiple high-level roles. This includes the accounting, marketing, sales and general business strategy of the entire company. Creating a management team to help delegate roles and responsibilities is an important step for expand. In AIRDROP company it includes Board, Leader , finance department, marketing and supply chain management , information technology department ,human resource management.

 

PRODUCT AND SERVICES-

Pharmacy- medicines to your home on your schedule.

Restaurant- faster, warmer and more reliable.

Grocery- Fresh to your home in 15 to 20 min.

Convenience- Any essential any time.

E-commerce- Any packages when you want them.

 

THE MARKET AND MARKETING STRATEGY-

oKey Market Trends

The Retail and Logistics Segment Held the Largest Market Share by Revenue in 2020

The retail and logistics segment currently dominates the market, and it is expected to continue its dominance during the forecast period due to the increased demand for drones to deliver parcels and packages from retailers, e-commerce providers, last-mile delivery companies, shore-to-ship drone operations, and postal companies. Due to the lack of delivery personnel and the impact of the global pandemic, the necessity to respond to changes in the logistics industry has become more urgent than ever before, and the use of drones may help realize automatic, contactless delivery services on remote islands, mountainous areas, and even within the cities. This is strengthening the demand for the segment during the forecast period.

EDUCATE MARKET

1."Learn Flow"- It's tempting to throw a customer straight into app or product ("We built this cool thing, go play with it!"). In reality, users will value a bit of hand-holding. Tried to make it fun, but take the time to show them the different aspects of product. What happens when you swipe right? Why should they click that circle? Teach them, and they'll get more value from day one.

2.Web education-It's tempting to throw a customer straight into app or product ("We built this cool thing, go play with it!"). In reality, users will value a bit of hand-holding. Tried to make it fun, but take the time to show them the different aspects of product. What happens when you swipe right? Why should they click that circle? Teach them, and they'll get more value from day one.

1. Promote across many platforms- When our last service launched, we educated customers through all available outlets: email, client platforms, press releases, web articles and radio interviews. Promote new products across a variety of internal and external outlets to reach as many customers as possible.

 

1. Use Step-By-Step Starter Guides- AdWords and SumoMe are two services we use that have excellent step-by-step starter guides. When using the products for the first time, there will be step-by-step popups that direct users where to click and what to click on. By showing (rather than telling) users how to use your product, they are much more likely to understand how to use it and will continue to use it in the future.
2.  

5.Catch Users' Attention with Website Banners-A website banner is a great way to grab the attention of any individual who visits your site. These banners are highly customizable and will be the first thing any user sees. Due to the simplicity of these banners, they can be changed at any time to promote the most recent company information.

6.Use Blog Posts and Email Marketing Campaigns- we stay in touch with customers/users through compelling and engaging content, they'll be open to receiving information about new products or services through emails and blog posts. The key is to make every touch with customers/users full of helpful information that keeps them wanting more.

7.Attend Trade Shows- I really like being at trade shows where I can interact with people who want to see what I'm doing rather than hoping that they do. People attend trade shows to see what you have to offer and ask a lot of questions. It makes educating them a really enjoyable and entertaining experience and feels less like selling and more like hanging out with friends who are interested in what you have to say.

 

COMPETITORS

The market of delivery drones is highly fragmented, with many new players entering the market. The prominent players in the aircraft delivery drones market are DJI, United Parcel Service of America Inc., Zipline, Deutsche Post AG, Flytrex, and Amazon.com Inc. The advent of players from the logistics, healthcare, and food delivery sectors into the drone market led to increased competition for delivery drone manufacturers. To further increase their share in the market, the companies are investing in increasing their fleet of drones and begin their operations with new regulatory approvals.

 

 SWOT ANYLISISA

Strengths: the main advantage of the implementation of this technology is the projected time of delivery. The delivery of a parcel to the customer within a few minutes from his ordercan significantly boost the company’s popularity and increase its penetration to the market.

Weaknesses: the current technology limits the flying and carrying capabilities of the drones. With the weather being an unknown factor and the short battery life of a drone, the delivery of the products can face serious obstructions.

Opportunities: drones are a new technology that can be improved in many aspects. The collaboration with suppliers and developers of this technology creates the opportunity to enter a market that seems to be in the beginning of a remarkable expansion.

Threats: one of the greatest obstacles in the wider implementation of transportation via drones is the current and future legislation.

 

INFORMATION TECHNOLOGY PLAN-

DRONE 1 – multi rotor drone

Figure 1 shows the pictorial view of Multi-rotor drones. These kinds of drones have strong robotic arms and more pickup capacity than other kinds of drones. These can be used for longer range delivery and heavy package delivery. The arms will extend and carry the package. The control ensures that the load is properly attached and the right route is followed. These can carry the load over longer distances.

DRONE 2- Quadcopter Drones

Figure 2 shows the pictorial view of Quadcopter Drones. These drones have little less carrying capacity than heavy weight carrying drones. None the less, it can also fly over great distances to deliver the package. the body is lighter and can fly up to greater altitude to avoid disturbances and obstacles. Extra arms can be modified into these types of drones.

 

SYSTEM OF DRONE DELIVERY-

 the user system interaction Long distance vehicles carrying more payloads require more energy and batteries for each unit of travel. Larger multi-stop vehicles carry more battery and payload and pay for it in drag. Vehicles are conservatively sized to be able to traverse the entire delivery route and return to the fulfillment center with all packages. The burden of irreversible packages increases with each additional package and with compounds. On the delivery date the information is sent to the customer’s phone and he updates the system with either his live location. If the payment is received on delivery the drone collects the payment in a safe-box installed in the central controlling head.

• Multiple senders book orders
• Within 30 minutes, whatever orders are gathered, they are segregated as per geographical zones
• One drone is assigned to one zone
• The drop locations from that zone are arranged on an optimized route
• Whatever pickups are to be done in that zone, the drone does it in the reverse order of the sequence of drop locations
• The drone picks all packages and then moves to the dropping route
• Drone drops all packages at their respective locations
• At each drop location, the recipient will scan the QR code sent to them, for releasing their packages from drone
• Once all packages are dropped, drone returns to office
• If a drone malfunctions, two spare drones will be dispatched - one to take the packages ahead and the other to carry the damaged drone back to the office premises.

 

FINANCIAL PLAN-

Company has a 10cr budget for fiscal year 2021-2022. After distributing to all departments and taxes. company will generate revenue INR 122200000 in one year. So, the break- even point will achieve in 10.6 month from start. That means by planning and forecasting budget, company will have do 610000 services per year to generate BEP and for be the market leader in drone delivery business.

 

HUMAN RESOURCE MANAGEMENT PLAN-

New job positions required- As a part of the HR plan for recruitment and training, there are several new job positions created exclusively for the drone-based delivery service business. The job opportunities are as under:

1.Drone operators.

2.Head of software app- Each app we build has unique challenges, such as our need to support customers in low-connectivity environments, varied literacy rates of end users, and apps that enable life-critical operations.  

3.Supporting staff.

4.Drone operation manager- Responsible for systematizing the operations functions through process formation, implementation and adherence; Cost planning, monitoring and optimization; Tracking certifications, licenses, training, and proficiency of each pilot; assigning pilots to each job; 

The recruiting and training challenges. Because commercial drone operation is a pretty new discipline, it is likely that qualified operators are in short supply. "And very few organizations would have any in-house capability or capacity to train their existing employees," Boese said.

The need for niche skills. "Longer-term, HR leaders would need to think about commercial drone operations like they consider other technical or niche skills," Boese said, for example, whether it makes sense to have people with these capabilities as in-house employees or as part of the extended or contracted workforce.

"Drones can allow certain portions of your more senior workforce to be repurposed into other highly valuable jobs,"

 Certification issues. "Human resources will want to maintain records of related certifications and may want to offer training for personnel who operate drones," added Arun Srinivasan, senior vice president, SAP Fieldglass, a Chicago-based services procurement provider.

 

 

 

 

Conclusion

After researching, studying and forecasting on India’s need and overall budget plan we can conclude that AIRDROP company has a potential to grow in future and generate revenue with increasing graph. By using marketing and sales strategies and business model run by departments it will be very easy to educate people about innovation of system and new services of the company. The key to its success is to continuously collaborate, innovate, and retain its talented workforce!

Attached File Details

View Attachment file (BCS solution presentation.pptx) View Attachment file (BEP achieved Graph..png) View Attachment file (budget allocation and BEP result.png) View Attachment file (calculation of finance department .jpg) View Attachment file (market share.png) View Attachment file (multirotor drone.png) View Attachment file (quadcoptor drone.png)

Video

https://youtu.be/TkV0fvwGegM