Partnership development and launching timetable

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6.2. Partnership development and launching timetable

However, what takes time to develop is not just the system, but also the partnership.

Partnership with existing online shoppers and nutrition knowledge owners.

6.2.1. The benefit for nutrition knowledge owners and partnership scheme

As mentioned in the previous part, the diet knowledge follows an open source model and as such is open to the contributions of any doctor. In order to reach that goal, we need to form a team in charge of materializing strategic alliance (SA) and have them identify and reach ideal knowledge owners.

The ideal owners we are looking for are professional medical doctors/nutritionist that writes health books. The real purpose for them to write the books is sharing knowledge, gain publicity or both. Our App can be used for the same purposes—develop nutrition module Apps as a supplement of the books, and issue them together with the new book release promotion will be the most straight forward and effective way to gain awareness—for the book and for our service.

Partnering scheme

By partnering with us, we help them to turn the book wording to digitalized tools to help people apply this knowledge in their daily lives. It is an extension of service for existing readers. And having these models uploaded on App stores, it’s another new channel to gain exposure. App users but not book readers might find the App helpful and will get interested in the writer. In that way, the writers gain even more publicity.

The writers do not need to invest anything but the corresponding license to their proprietary copyrights and methods. The development process is on us. They only need to hand in a copy of the book and authorize us for developing the module. And he/she is still the intellectual property owner. The profit for selling the module first goes to cover the development cost,

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which is to be limited*. Once the revenue covers development cost, we start to share the profit. The price of each module is 200NTD, we expect to earn 100NTD for each download.

* Note The development cost will be limited because in order to fasten the speed of

publishing models, we develop an easy interface for data inputting. For each set of module, we will only need several hourly workers for data input, limited engineer working hours to check and fine tune before uploading to app store. In other words, the time consuming part is taken ahead to system development blue print.

6.2.2. The benefit for online grocery seller and partnership scheme

”I Grocery ” is like Ebay or yahoo, is an intermediary between various sellers and consumers, with special focus on food and grocery. Although this platform can serve both health oriented customers and convenience oriented customers, we will first look for healthy/organic food sellers to be our partner. Two reasons for that. First, since health is the backbone concept of this software, appearing on the marketing together with healthy/organic food sellers sends coherent image. (More detail is to be elaborated in next paragraph) Second, comparing to ordinary food, healthy/organic food is not easy to get access to. We bring more value addition to customers by linking multiple healthy/organic food sellers than ordinary sellers. Shopping in Taiwan is in fact convenient. Linking ordinary sellers doesn’t create attraction to

customers.

Benefits to partner with us are 1) The marketing concept coheres

To go on diet is about selecting the right item and quantity to eat. Consuming healthy/organic food is about choosing food that was produced following sustainable methods. Both

consumption patterns are out of health motivations. By linking with us vendors of healthy/organic foods are in fact extending their service offering to existing consumers,

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enabling them to eat the right things in the right way.

Organic food is on average twice as expensive as ordinary food but with higher quality. The concept is the opposite of those large quantity package food sold at discounted price at hypermarkets. They use discounted price and bundle promotion to stimulate people to buy more. Customers very often end up buying more than they need. This brings extra burden to their health. (Also, even at ordinary stores, junk foods are displayed on shelf locations that appeal to consumers. This kind of products does not exists at organic stores) Taking into consideration the medical cost derived from the modern over eating lifestyle, they are very possibly paying more than they saved from the discounts.

The concept of our menu planning is encouraging people to purchase just the right quantity according to their diet plan. This concept coheres with the mindset of organic food.

Partnering with us is like co-branding. We together offer the idea of selecting and eating food in a healthy way.

2) By getting linked with other sellers, they can avoid pressure of expanding variety to secure customers.

Organic foods are not easy to source not only to consumers but to sellers as well. It’s difficult for one single seller to provide everything a family needs. For instance, a family that

conducts a Chinese medicine diet plan on this platform might need some herbs that are not planted in Taiwan. These kind of customers will need to find his/her way to look for that particular herb. This increases the risk of losing such customer to other providers.

Having multiple grocery sellers linked to the platform, customers can easily find everything they need at the same place. The convenience will attract more customers than if these sellers were separated. Sellers can access to more customer after linking to this platform. They can avoid the pressure of expanding variety to secure customers to better focus on their strengths

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and unique offerings.

Partner scheme

The partnership scheme is simple. The only difference is they need to put their latest product item on “I Grocery”, so that the key word search function can find the closet offerings across sellers according to the consumer’s shopping list. They, still receive orders from their own websites; ship goods from their own storage to the customer’s house. As part of the

agreement partners will agree to display advertisement for the App on their websites, which also enhance the overall health concept brand image. The cost to enjoy the benefits above will be a commission of 2.5% per transaction, which is 0.5% less than Yahoo Taiwan.

6.2.3. Partnership development and launching timetable

As developing the system takes time, building the related partnerships takes time as well. In the first 6 months of preparation period, the SA team will engage in partnership arrangement.

At the first launch, we want to have 1-2 organic stores, 1 ordinary store, 1 Chinese medicine herb store, and 1 ready-made Chinese medicine soup store on “I Grocery.” And then continue expend to more sellers in the following period.