Market Feasibility For An App - Errand Helper Research Paper Sample

Type of paper: Research Paper

Topic: People, Business, App, Customers, Services, Time, Market, Income

Pages: 3

Words: 825

Published: 2021/03/18

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Introduction

In this paper a market feasibility report for an app ‘Errand helper’ in California, United States is presented. The current social and cultural trends in western nations have brought about changes in people’s perception related to every day chores, household activities, and running errands. People are keener to spend more time at work or in leisure activities rather than involving in mundane and time consuming tasks. Errand helper is an app developed to take care of customer’s everyday needs from cleaning to doing groceries. The main target market for the app is California. People in age group 24 to 40 are the main target group. Presently there are main competitors like Taskrabbit, Instacart, Homejoy, and Magic to name a few. To create a competitive edge, Errand helper will enable customers to hire helpers for a specific period of time or on a regular basis apart from hiring them on an hourly basis.

Product overview

Errand helper is a mobile app developed for both iPhones and Android phones. The main focus of this app is to connect people requiring an errand or task completion with people who are willing to perform the tasks or errands like grocery shopping, picking up and dropping off dry-cleaning, cleaning, gutter cleaning, raking, snow shovelling, cooking, and landscaping to name a few. There is increasing need for help around the house, especially in the Western countries. With changing social patterns and life style trends, people are increasingly finding it difficult to invest the time and resources required to carry out every day essential activities (Giele & Holst, 2004). The Errand helper app will assist busy people find helpers or errand helpers who will willingly assist them in doing their chores, household work and daily activities for a nominal cost. Small businesses benefit from this app as they gain access to a large customer base.

Product value for customers

Errand helper will act as a middleman between consumers and service workers. This app will be useful for tech savvy workers. Customers can outsource their life’s annoyances to someone else who treats it like a job. Customers can make good use of the time they spend in routine and mundane activities saving time for themselves. Outsourcing tasks to people using websites like craigslist for instance will require a person to navigate through a list of available workers, sorting out payment, and until the work is done there is no guarantee it will be completed as promised. To create superior product value, firms can adopt innovative processes and offer innovative products. Errand helper employs people after a background check is done, payment is done through a secure gateway, and there is 100% satisfaction assured as there is the guarantee of money back in case a customer is not satisfied with the services.

Target market

The app will be popularized across the western countries namely the United States, United Kingdom and Canada. During the initial stages of launching the app, the focus of the marketing and business campaigns will be in California, especially bay area. Bay area according to a report in the Pacific Union (2013) was the home to the second largest median income. The income of people in the Bay Area was found to be nearly 22% higher than the income of people in other parts of California. The prime target market is people aged 24 to 40 years, presently residing in the bay area or California at large. The app will be launched in the three western countries mentioned, but initially it will focus on customer market in Bay area, California. It is expected people with more disposable income will want to avail the services and make use of the errand helper app. People having a disposable income are a good target market as they might have achieved an upper income or middle class status. Therefore, they will have a heightened desire to enjoy, relax, and spend their free time in ways that are more personally satisfying. Such people will rely in service organizations to get their chores done. Errand helper is an online tool. People in the bay area will be a good target market, as the chance of customers making use of the app is much higher due to their tech savvy nature. People in this age group will most probably be having children to take care of. Making use of Errand helper will give them the much need opportunity to spend more time with their children and family members (Weis, 2008).

Major competitors

Presently there are websites and small businesses offering similar services. The one major competitor for Errand helper is TaskRabbit. The company is headquartered in San Francisco and its focus is to connect people who require tasks accomplished to registered taskers through their website. TaskRabbit charges a 20% fee for each task an in turn offers its customers with satisfaction guarantee. The payment process is entirely online, so it is secure. The company is rapidly expanding its operations, with presently services available in 19 cities both in the USA and UK (TaskRabbit, 2015). Homejoy headquartered in Mountain View, California offers professional cleaning services. Once a specific cleaning job is scheduled, a register Homejoy service agent is dispatched. Homejoy is available in major states in the United States. Magic offers a wide array of services to its customers. Customers through an online chatting platform can make their request, and choose the person whom they want to carry out the service. Magic is available throughout the United States. Instacart offers grocery running service to its customers.

Comparison of product with competitors

The app is available for both Android and iPhone users. The app is similar to those of its competitors, but it differs in two main aspects. Apart from cleaners, grocery helpers, and people who help with mundane activities, errand helper also offers value added services that require personnel of higher skill level to work like plumbers, carpet cleaners, physicians who can offer home based therapy for patients, people who can take care of errands for the elderly, and people who can tutor people according to their educational needs. The one other notable feature is as busy people will have a higher tendency of making use of this app, to make the process of hiring a worker easy, people can connect to people with a required skill level and higher them for a long time frame even up to six months, apart from hiring people on an hourly basis. Customers will be given an opportunity to specify the number of hours they need the helper to work, the number of days per week, and the skills they are looking for in their helper. Even people who can carry out activities like part-time personal assistance, help with financials and accounting, and help with running a business can be hired through errand helper. Instacart, Homejoy, and magic offer a singular service to their customers. Errand helper offers all these various tasks for a nominal cost through their mobile and desktop platform. The one unique feature of Errand helper is, it is a firm offering a broad array of services under a single platform at moderate costs to its customers.

Target sales

It is expected that the business will observe rapid growth in the next two years. By the end of the first six months, capital expenditure will be increased by acquiring a loan. This will help Errand Helper expand its operations to other states in the United States. It is expected by the end of the first year the company will have increased its profits to at least 15%. By the end of 5 years it is expected Errand Helper will be the market leader in apps that help people run errands for them, and would have reached a revenue of at least 50% of its original investment.
Conclusion

References

Amit, R., & Zott, C. (2012). “Creating value through business model innovation,” MIT Sloan Management Review.
Giele, J., & Holst, E. (2004). Changing life patterns in the western industrial societies. Oxford, UK: Elseiver Limited.
Pacific Union. (2013). Bay area median income highest in the US. Retrieved from http://blog.pacunion.com/bay-area-median-income-second-highest-in-us/
TaskRabbit. (2015). How TaskRabbit works. Retrieved from https://www.taskrabbit.com/how-it-works
Weis, L. (2008). The way class works: Readings on school, family and the economy. New York, NY: Taylor & Francis group.

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Market Feasibility For An App - Errand Helper Research Paper Sample. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/market-feasibility-for-an-app-errand-helper-research-paper-sample/. Published Mar 18, 2021. Accessed July 24, 2021.
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