1. HTSC High Tech Shopping Cart Project Vincent Declercq GSBA 573 Fall 2006 USD

2. OUTLINE Introduction Project Analysis Product characteristics and requirements Return on Investment Analysis Risk Management Work Breakdown Structure Measures of Success Feasibility Study Conclusion

3. INTRODUCTION More and more grocery stores moving towards high tech Automated self check out stands RFID implementations Their main focus is lowering prices Try to gain a competitive advantage by having more services Idea of High Tech Shopping Carts

4. PROJECT ANALYSIS Pilot location at VONS in La Jolla, CA. Provide new and attractive shopping experience to the customers. Have an attachable computer to the cart to allow customers a variety of options and information. The computer carts will run for three years (estimated time before being obsolete).

5. PRODUCT CHARACTERISTICS AND REQUIREMENTS It will allow users to log in with their phone number and name. Allow users to search for items and find the location in the grocery store. Allow users to scan the items they wish to buy. Allow customers to scan their coupons and tell upfront the price and location of the item. Recommend what foods and drinks go together when customers add items to the cart (for example white wines for special kinds of fishes). Give the opportunity to access recipes and find each ingredient needed by locating the aisle. Allow advertising and marketing opportunities by providing brand names, sales, promotions, and recommendations on the screen. Be able to recharge the batteries when needed when grocery personnel notice low battery.

6. EXPECTED BENEFITS Increase of brand recognition $10,000 Returning clientele $900,000 Advertising revenue $360,000 New customers $540,000 TOTAL BENEFITS $1,810,000

7. EXPECTED COSTS Manufacturing costs $7,500 Research and development $200,000 Employee and manager training $19,920 Cart modification $1,500 Maintenance fee $18,000 Salaries $460,000 TOTAL COSTS $706,920

8. ROI ANALYSIS TOTAL BENEFITS $1,810,000 TOTAL COSTS $706,920 ROI = (1,810,000 - 706,920) / 706,920 ROI = 56%

9. Risk Management YES NO Success Benefits of $1,100,000 Increase in store profits Benefits of $100,000 FAILURE Lost investment of $700,000 FAILURE NO benefits 0.8 0.2 0.8 Build computer cart +880,000 -140,000 +20,000 +740,000

10. WORK BREAKDOWN STRUCTURE Design phase: August 1st 2006, to December 29th 2006. Implementation and execution phase: January 2nd 2007, to April 1st 2007 Monitoring and Controlling phase: August 1st 2006, to April 1st 2007. Closing Process: March 1st 2007 to April 1st 2007.

11. MEASURES OF SUCCESS The computer carts are up and running on the launch date. The system has no bugs and customers can access all the information provided. The system provides the accurate information of price and location of the items. Number of customers increases once the word is spread out. This is due to the clientele staying faithful as well as new customers interested in this shopping experience. The success will be estimated at 200 new shoppers per month and 500 existing customers returning to the store. The program receives good reviews from both its customers and the media. The project receives high revenue from advertisers and sponsors. The return on investment of 56% is achieved.

12. FEASABILITY STUDY Technical The location already determined. Just need ot modify the carts. Software will need to be installed on the grocery computers to let the store manager access all the information. The computers will be updated through a wireless interface. There will be one charging station to accommodate the low battery computers and charge them. The grocery store already has a website and the functionality of the cart program will be a link from the main website. Operational The store manager has agreed to take in charge any functions needed to implement, execute and maintain the project. All the grocery employees have agreed to go ahead with the cart project. Economically The board of directors of the grocery store has given full support for this project. The sponsors of the advertising campaigns that will show on the screens of the computer cart have also told their interest in the project and will sign contracts.

13. CONCLUSION Project is very demanding and involves some risk but the benefits can be very rewarding to the company and possible revolutionize the grocery industry by providing high tech tools to the fingertips of the customers. Once the project is launched, the customer service center will provide all the after market information and warranty work. The project manager will be looking closely at the profits of the store comparing them to close by local stores to determine the impact this program had had on the community. If the project is a success in this pilot location it will be implemented to several other stores nationwide.

14. THANK YOU! COMMENTS OR QUESTIONS ?