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Personal Shopping

Assistant

Presented By: John ChangTeam Members: Albert Ayres, Jeremy Allen, Steve Eleyet, & Tony Taylor

Copyright © 2001-2003, Farm Fresh. All rights reserved.

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PRESENTATION OUTLINE

•PART I:

•BACKGROUND INFORMATION

•PART II:

•FINISHED PRODUCT DETAILS

•PART III:

•PROTOTYPE DETAILS & DEMONSTRATION

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Part I : Background

• BACKGROUND INFORMATION

• Problem Statement

• Why Farm Fresh ?

• Goals/Objectives

• Risks

• Budget Summary

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Problem Statement

• Current statistical studies indicate that the local Farm Fresh Supermarket chain has a declining customer base.

Source:Food World, June 2001 and 2002 editionsThe Scarborough Report, 2002 Pilot Online FOOD LION TOPS LIST OF LOCAL FOOD RETAILERS,June 28, 2003, page D1

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Shopping CriteriaRESEARCH: Difficult to locate products (ACSI, 2002)

SURVEY: 84% had difficulty in the past finding the products

RESEARCH: Unsure of how much total will be (PriceWaterHouseCoopers)

SURVEY: 86% would find it beneficial to know running total as they shop

RESEARCH: Deterioration in customer service (ACSI, 2002)

SURVEY: 78% would like better customer service in grocery stores

RESEARCH: Takes too long to get out of the store (PriceWaterHouseCoopers)

SURVEY: 85% would like to spend less time in the grocery store

Source: The American Customer Satisfaction Index

PriceWaterhouseCoopers Survey Report

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Survey Results

•70% Would use a technical device that would make shopping more convenient

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Why Farm Fresh?

• Online Shopping– Use of Same Data

• Interviews– CEO & Executives

• Location– Locally Headquartered

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Project Goals

• The PSA Project goals are two-fold:– Goals to meet the needs of Farm

Fresh– Goals to meet the needs of

supermarket shoppers

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Farm Fresh Goals

• Help reduce the loss of customers• Convince previous customers to

return to shopping at Farm Fresh• Entice new customers to shop at

Farm Fresh• Identify Farm Fresh as a leader in

supermarket chains

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Shoppers Goals

• Assist shoppers in meeting their shopping needs

• Enhance their shopping experience with new services

• Increase the customer satisfaction of shopping at Farm Fresh

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Project Objectives

• Establish a validated set of critical shopping criteria

• Design a system that will enhance Farm Fresh’s ability to deliver the critical shopping criteria

• Incorporate the system into a test store supermarket

• Collect customer use and system performance data

• Analyze the data to validate meeting the system’s goals

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RisksRISK

PROBABILITY EFFECTS PRODUCT LIFE-

CYCLE STRATEGY

Non-Acceptance MODERATE SIGNIFICANT EARLY/ MIDDLE EASE OF USE ADVERTISING TRAINING POST-INSTALL

EVAL DATABASE

INTERFACING

LOW SIGNIFICANT EARLY DEVELOP FULLY FUNCTIONAL LAB PROTOTYPE

WIRELESS CONNECTION

(SPEED)

LOW SIGNIFICANT MIDDLE+ EVALUATE USAGE INCREASE

NUMBER OF ACCESS POINTS

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Budget Summary

• Sales Price, Return on Investment

• Second Year Costs for Remaining 36 Stores

• First Year Costs for One System– One System = One Store

• = 20 Mobile Units, 3 Access Points

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First Year Production Costs

Personnel Costs

Capital Investment Costs

Non-Residual Value Costs

Miscellaneous Expenditures/Admin Costs

Total

Prototype Development

32,997.12 4,643.78

431.48

38,072

Production Development

525,987

39,135

1,391

150,282

716,795

754,867

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Second Year Production Costs

Fixed Costs Variable Costs Total Annual Production Costs for 2nd Year

35,464 1,793,041

1,828,506

Production Costs for Remaining 36 Stores

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Sales Price & Return On Investment

• Goals:– Recoup all Costs & 20% Profit

Total Costs

Prototype Development 38,072 Production Development 716,795 Annual Production Costs for 2nd Year

1,828,506

Total Costs for 37 systems 2,583,373 20% Profit 516,675 Total Price for 37 systems 3,100,048 Price Per System 83,785

Cost of $3.1 Price Tag = Less Than 1% of Farm Fresh’s Projected Net Profits for the next 2 years

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PART II: Finished Product

• System Overview• Features• Hardware• Software• Wireless Communications

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System Overview

• The PSA is a mobile, multi-featured, easy-to-use shopping assistance tool

• Provides features to assist shoppers as they move through the supermarket

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Feature List

• Running Total• Product Directory• Store Map• Price Scanner• In-Cart List• Nutritional Information• Store Specials• Advertisements

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Hardware Components

• PSA User Device – Manufactured By Contractor– Built from COTS Parts

• Wireless Network– Access Points - COTS

• Store’s Server– Existing Server and Product

Database

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System Layout

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PSA User Device

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User Device Characteristics & Functions

• Characteristics:– Computer housed in a rugged plastic

case– Mounts to the shopping cart handle

• Functions:– Provides access to the PSA features – User input– Output/Display– Wireless connection

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User Device Components

• Motherboard– 200 MHz CPU– 64 Mb RAM– 64 Mb Flash Memory

• Display Screen• Network Card• Battery

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Barcode Wand Scanner• Unitech MS265-01• Characteristics:

– Mounts to the top of the user device– Connects to the user device with a 4 foot reinforced cord– USB Connection

• Functions:– Product price scanning– Add items to the In-Cart list

© Unitech

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Wireless Network Card• Friendlynet FBT100

– Range: 33 ft– Standard: 802.11b– Installed in each User Device

© Friendlynet

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Battery• Sharp Mebius High Capacity

• 4 cell Li-ion Battery

Power Consumption Table

mA (max)

Wireless Network

Card

170 per hour

Scanner 180 per hour

Screen 19.6 per hour

Flash Memory 50 per hour

Total Power 419.6 per

hour

Battery Power 3000 per hour

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Wireless Access Points• Wireless Access Points (3)

– Symbol AP 4121 Access Point– Range: 295 ft– Standard: 802.11b– Installed on the store ceiling– Connected to Store’s Server

© Symbol

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Wireless Dataflow

WirelessTransmission

DataRequestData

ProductDatabase

Requested Query

Query Results

Server

GUI translationTo/From Data

FeatureSelection

Menu Selection

Information Displayed

PSA User Device

PSA Data Flow

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Store’s Server

• Server exists at each Farm Fresh location

• Communicates with the PSA wireless network (Hard-wired to Access Points)

• Stores existing product database• Provides a platform for system

administration functions

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Software Components

• PSA User Device Software• Server/Database • Administrative Tools

Data Flow Between Software Components

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PSA User Device Software

• Operating system is UNIX-based• Implements the system’s features• Prompts the user for input • Requests database queries for

required product information• Outputs user-requested

information

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Communications Software

• Facilitates wireless communications

• Controls data transmission between the PSA User Devices and the store’s server

• Maintains a system use log

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Administrative Tools

• Tools for the system administrator

• Functions:– Set up user logs– Update advertisements– Update store specials

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Central Database

• Database exists at each Farm Fresh location

• Stores product information• Accessed by Other Applications

– P.O.S. Registers– Online Shopping

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PART III: Prototype

• Goals• What It Demonstrates• What It Doesn’t Demonstrate• Demonstration

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Goals

• Build a demonstration prototype that demonstrates the usage of the PSA from the shopper’s point of view

• Address most significant risk: Non-Acceptance

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What It Demonstrates

• Mimics User Device• Demonstrates the use of Every

Feature– Separately– In-Conjunction with each other

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What It Does Not Demonstrate

• Future “Lab Prototype”• Current “Demonstration Prototype”

– Proof of Concept – Existing Technology

• Total System Functionality– Database Interface– Wireless Communications (Speed)

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Demonstration• Wireless Connection - Keyboard• Database Interface – Flat Files• Screen – Desktop Screen• Buttons – “F” Keys• Scanner – Manual Input• Features (States)

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Prototype Features• Main

– Welcome OR In-Cart List

• Map• Product Directory• Store Specials• Advertisements• Price Scanning

– Adding/Subtracting Quantities

• Nutritional Information• In-Cart List

– Deleting Products/Quantities from List

• Reset

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Conclusion: Future Possibilities

• Basic Features• Branch Out Nationally to Other

Supermarkets • Incorporate into other types of Specialty

Retail Chains– Home Improvement – Consumer Electronics– Home Office– Toys– Sporting Goods