Efarm App: Business Plan for Online Platform Connecting Farmers and Customers

This business plan discusses about Efarm app which is a online platform that connects farmers with customers directly and they can directly buy and sell variety of British food. In this different aspects of business such as industry and market analysis, value proposition and marketing strategy for business. Along with this, management structure have also been discussed and along with financial planning and also risk mitigation strategies have been discussed in plan.

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Business Plan
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Contents
Executive Summary............................................................................................................ 2
Business details.................................................................................................................. 3
Industry and market analysis..............................................................................................4
Customers and value proposition........................................................................................5
Marketing strategy.............................................................................................................. 6
Operations plan..................................................................................................................7
Management team and company structure.........................................................................8
Resources.......................................................................................................................... 9
Financing.......................................................................................................................... 10
Financial projections.........................................................................................................11
Risks and strategic options...............................................................................................12
Key milestones................................................................................................................. 13
Appendices....................................................................................................................... 14

(Business name)
Executive Summary
This business plan discusses about Efarm app which is a online platform that
connects farmers with customers directly and they can directly buy and sell variety of
British food. In this different aspects of business such as industry and market
analysis, value proposition and marketing strategy for business. Along with this,
management structure have also been discussed and along with financial planning
and also risk mitigation strategies have been discussed in plan.
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Business details
Product is an application named efarm app and this app is mainly for farmers
that allows them to register on the platform and sell their products direct to
consumers.
This app is different because through this farmers will not require selling their
products through mediators and they will be able to direct sell their products to
customers.
Mission
“To ensure app can be used easily by everyone and enable farmers to sell and
customers to buy in simplest way possible”
Vision
“To become a platform where farmers and people can connect for the best”
Aim
“Efarm aims to be online platform that brings more British food on more British
plates”
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Industry and market analysis
Porter’s five forces
Porter’ s five forces can be defined as a model which helps managers of company to
identify market situation and it helps in making plans according to that. There are five forces
which are defined by Porter are:
Competitive rivalry
According to porter it means that there are many competitors in the market and
managers should identify before making plans. It is essential to conduct market analysis
because it is not easy to enter into new market. Strategies which are made by organisation
should be good so that they can gain competitive advantage and it will them in generating
more profit (Wee, 2017). E farm company is new in market so managers should identify
market situation and according to that they should take actions so that they can achieve
goals and objectives. It will also help in increasing profit and building good image in market.
Supplier power
It means that managers should make good relation with suppliers so that they will
supply raw material on time. It is important to maintain relationship with person who is
providing material to organisation. If there is less suppliers then may be company will face
problem because if they will not maintain good relation, they are not able to make products
as supplier will not give material. This helps in determining that how easy it is for suppliers to
increase prices of raw material. Managers of E farm company should maintain good relation
with suppliers.
Buyer power
According to porter it means that how much a buyer can spend for purchasing a
particular product. It is important to identify buyers purchasing power so that managers will
make plans or strategies accordingly and prices of products will be decided. It is essential
that products should be available to consumers at reasonable prices so that consumers can
buy it (Aithal, 2017).
Threat of substitute products
Organisation is having threat of substitute products because in this fast moving
world, there are many competitors so it is an issue for managers. It is responsibility of
managers to make plans so that they can enter into new market and fight against
competitors. It is essential to identify competitors so that good quality products can be made
and satisfy consumers.
Threat of new entrants
It means the ability of an organisation to enter into the market. It is important for
company to conduct market survey as it will help them in determining strategies which is
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used by competitors and managers of E farm can make good plans to gain competitive
advantage and generate more profit.
Market analysis is important because it will help in determining that how much buyers can
spend and what improvements organisation should made so that good quality products can
be made. The main purpose of E farm company is to provide British food products to farmers
and other population in UK. Their main aim is to provide products to farmers and they will
make strategies to attract framers.
PESTLE analysis:
It is an analysis of the external analysis that is concerned with the external forces. It
will enable the Efarm to have an analysis of the entire industry that is concerned with the
agriculture and the farming sector. This analysis consists of:
Political:
It includes an analysis of the political factors including the government policies, or
rules and regulation of the concerned country with reference to the political party. Imposition
of tariffs, trade restrictions, restriction due to Brexit impacts, pricing restrictions and many
more, are the political factors and forces needed to be studied by the Efarm before
establishing its business in UK.
Economic:
Changes in the economic policies in the form of interest rate, change in currency
value, employment rate and various other important factors are concerned with the
economic environment. Efarm may also face these forces with regard to its business and
may its business got affected if it will not analyse it.
Social:
It is concerned with the societal forces and the forces including the taste and
preferences of the customers (Perera, 2017). An analysis of this force is also important for
the Efarm. However, as the people of UK will got benefitted from the Efarm products so this
force works in favour.
Technological:
Adoption and imposition of latest technology in the production of goods is very
important for the company. however, with regard to Efarm an adoption of high advanced
technology in the farming process will again lead to a favour with regard to this force.
Legal:
Performance of business operation as per the compliance with the laws and
regulations will enable the company to operate its business successfully. Thus, Efarm also
need to consider this force while operating its production activities.
Economic:
An equal consideration towards the environment in terms of safeguarding the natural
resources will enable the Efarm to favour this force. This means that the operation of
agriculture activities with dual consideration towards the environment forces will enable the
company to favour this force.
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Segmentation, Targeting and Positioning (STP):
As per this analysis the whole market is needed to be segmented by the company in
order to run their business and enable their position. It consists of three important process
and steps:
Segmentation:
Here the whole market is divided into segments and parts by the companies
(Camilleri, 2018). The major segment of Efarm is related with the agriculture and related
activities. This is because it want to target the farmers of the UK by enabling them best
products and services.
Targeting:
Under this the segmented market is target by the concerned companies. The main
target of the Efarm is related with the farmers sectors of the UK. Here the Efarm will make
and implement all the necessary efforts in order to garb and capture the targeted market.
Positioning:
Under this the position of the company is determined with regard to the customer’s
acceptance and the competitive market. EFarm is mainly concerned with obtaining a good
position in the sector of agriculture.
Market research will help managers in identifying how much consumers can spend and what
are their needs and requirements. It is essential to conduct survey so that competitors
strategies can be identified. Strength of company is that they are providing online platform
which will bring British food on British plates (Pervan, Curak, and PavicKramaric, 2018).
They will also help farmers as well as people of UK. Strength of competitors is they are
working from many years having experience. Weakness is that they are not providing any
innovative products.
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Customers and value proposition
This involves reason because of which target market should buy product or
services being offered by a business. Efarm offers online platform where farmers
(target market of business) can connect with potential buyers. Key benefits of Efarm
for both farmers and population are-
 Enables to sell and purchase variety of food choices
 Easy to operate online platform which reduces hassles of searching for fresh
and variety of food
 This connects farmers with buyers and this way mediator are not required,
this reduces cost of products being sold.
 This also increases profit margin of farmers
 Online platform enables to connect with population all over UK and this way
reach of farmers also expand
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Marketing strategy
Marketing Mix
Product- Product offering of the business is Efarm app that enables farmers and
population to connect with each other. Product will enables population to get large
variety of British food and farmers will also be able to sell their products to customers
directly.
Price- This is concerned with what will be price for services being offered by Efarm
and in this cost plus and penetration pricing strategy will be adopted by Efarm. Cost
plus pricing strategy involves charging a price in which cost plus profit margin of the
company. In penetration pricing strategy, Efarm determines a price in which it can
attract maximum number of customers.
Place- Regarding place of application it will be availed on different operating
systems. Concerned with distribution strategy through app it will connect farmers all
around UK with population all around UK and will follow an online distribution
strategy.
Promotion- This involves using different strategies and channels for communication
and for the purpose of promotion communication mix involves direct marketing
including social media, and advertising. Social media involves advertising through
different social media platforms and advertising will involve advertisement through
newspaper and radio.
Launch Strategy
Launch strategy for Efarm involves launch of the app in different operating
systems from where customers and farmers can install app. Along with this, Email
marketing will be used to communicate and promote launch of app. Email marketing
will mainly target farmers and they will be informed through Email. Along with this,
search engine will also be used for promotion and communication of the app to
target market and will enable general population for information regarding Efarm.
Sales Tactics
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Regarding sales tactics, farmers will be encouraged to use online platform of
Efarm for their benefit. They will be encouraged through advertising and promotions
and will also be offered discounts and sales promotions to join Efarm online platform
to sell their services. Along with this, convenience that they receive for using this
online platform is also biggest sales tactic to be used by Efarm platform. Regarding
guaranty, farmers will be able to use services of Efarm for exactly days they buy its
services. Efarm will also enable farmers to share their feedback so that they can
share their problems with support team and customers services of Efarm.
Brand Development
Brand development involves developing logo and personality of brand through
which it becomes identifiable. In this logo of Efarm is planned to be such that it
reflect identity of the brand and at the same time reflect elegant brand personality.
Logo will be simple and elegant and something that encourages and attracts farmers
to join Efarm online platform. Tagline of the brand will involve both customers and
farmers. Core values of the brand will also play important role in building positive
brand image including being true and transparent with all customers. In this products
and their information will be completely transparent so that buyers are able to have
trust in brand.
Competitors’ reaction
This a challenging task to determine how competitors will react however,
there are few competitors that exist in market for giving strong competition to Efarm.
Competitions include Instacart, goPuff, Shipt, OurHarvest, Rappi and Growcer.
These are certain successful competitors of the Efarm and this is why they might
perceive Efarm as no competition for them.
Growth potential
This is concerned with potential does the app have regarding growth and
concerned with this, it can be said that product development and market
development both are opportunities for Efarm that company can use. Product
development involves developing products or offerings of Efarm and developing
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market involve considering more market segments than existing in future for growth
of business.
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Operations plan
Key operations activities of the Efarm are to connect farmers and customers
through its application operations. This means that as soon as farmers install app or
connect with Efarm online platform they are required to create a profile and provide
specifications about their reason to join Efarm app (Viglietta, 2019). The app will
provide two options for creating a profile, one is for farmers which will allow them to
connect with and sell their products to customers.
Business model of Efarm is subscription based business model in which
farmers will require to subscribe to services of Efarm in order to sell their products
through the platform.
Partnership and networking are two important elements for starting business
and in this Efarm will form partnership with different farmers, because in order to sell
to customers it is very important that there are adequate British food which is aim of
Efarm and this is possible through partnership with farmers (Cornelissen, McLellan
and Schofield, 2017). Regarding networking of Efarm its networking will be done
through different corporate events and also events that are held for farmers. This will
enable farmers to understand benefits of Efarm and how they can use it for their as
well as benefits of customers through high quality products available at affordable
price because supermarkets and mediators will not be there.
Business will be controlled by its top executives and at different levels it will
be controlled by executives working at that level. However, overall business and its
activities will be managed and controlled by top executives and major business
related decisions will also be taken by executives (Vasilev and et.al., 2017). Efarm is
an app and online platform and this is why its copyright will be obtained to protect
intellectual property rights.
Regarding scalability of Efarm it is an app and online platform and this is why
it has unlimited potential for scalability. This means that app can be used by
thousands of people for buying and selling British foods. However, initially it will be
availed to limited number of places.
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Management team and company structure
Management team and company structure
Key people in Efarm includes-
Chief Managing Officer- Lewis Brown
This is one of the key role and people in Efarm and function of CEO include making
major corporate decisions. CEO makes decision regarding overall organisation and
along with this managing overall operations of the company and management of
organisational resources. Role of CEO also includes representing company and
being public face of the company (Argenti, 2017). Lewis have 20 years experience in
IT industry at different positions.
Chief Finance Officer- Jack Smith
Chief financial officer is a role in which CFO is required to manage all financial
actions and decisions of the company. Role of CFO includes tracking cash flow and
developing financial planning and also analysing financial position of the company.
This involves analysing financial strengths and weaknesses of Efarm. Jack has 10
years experience in various jobs relating to finance.
Chief Information technology officer- Ryan Thomas
Ryan is also the one who has developed app and role of Ryan involves ensuring that
application is working adequately and also to continuously improve Efarm app and
its online platform (Ilyas, Hu and Wiwattanakornwong, 2020). Along with this, role of
Ryan also involves making decisions regarding technology and IT in functioning of
Efarm.
Chief human resource officer- Daniel Wilson
Daniel is CHRO in Efarm and role of Daniel includes developing planning regarding
Hr functions in Efarm. Along with this determining skill requirement and staff
requirement is also included in role of Daniel. Daniel have previous experience of 15
years in HR field.
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Investors
Regarding investors, Lewis Brown also CEO of Efarm is biggest investor in
the company and have largest shares in Efarm and along with this few other
investors are external to Efarm. Key partners of Efarm include financial partners, and
outsourcing companies, who are providing services of HR outsourcing.
Skill gap in Efarm includes skill gap in IT department as there is requirement
of qualified personnel in IT department.
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Resources
Premises- This involves a small office premises with a capacity of maximum 50
people and also have a board room with a capacity of 14 people.
Machinery and equipments- machinery and equipments involve computers and IT
equipments (Scarpellini and et.al., 2018). In addition to this, office furniture and
telephone system connecting within office, Storage equipments and stationery is
also included in machinery and equipment resources
Staff- Staff employed in Efarm includes 25 employees in organisation in different
departments carrying out organisational activities. These involves 7 staff in IT
department, 4 employees in finance department and 3 employees in HR department.
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Financing
Financing of Efarm has been in two types, firstly financing was a investment by CEO
of the company and along with this additional finance was collected by investment
banks and financial institutions. This financing was in form of loan and investment by
CEO was equity investment in Efarm.
Financial projections
Sales Projection
Sales
January 1000 May 1360 Sept 1600
February 1300 June 1380 Oct 1550
March 1260 July 1360 Nov 1400
April 1320 Aug 1400 Dec 1580
Cost Analysis
Cost type £
Fixed/
Variable Notes
Set up cost 7500 Fixed Depreciation of £ 20000
Staff cost 3000
Rent 2000 Fixed 4000 per month
Electricity 1000 Semi variable
6000 fixed and remaining
variable
Administratio
n 7000 Fixed
Advertisemen
t 3000 Variable
6000 estimated brochures
@0.5
Insurance
cost 4000 Fixed
Bank interest 1800 Fixed 6000 @ 3%
Total 20680
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0
Budgeted Profit forecast
Particular £ £
Income from
sales
34000
0
Less: Variable
cost
Material 30000
Electricity 34000
Advertisement 3000
-67000
Contribution
27300
0
Less: Fixed
cot
Staff cost 30000
Electricity 6000
Administration 7000
Rent 16000
Bank interest 1800
Insurance 4000
-64800
Profit
20820
0
Calculation of Breakeven point:
Particular Calculation
Total fixed cost £64800
Contribution £273000
Number of sold units 17000
Contribution per unit £273000/17000=16.
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05
Break even units
£64800/16.05=4037.
38
Break even point in
sales value 4037*20= £80740
Risks and strategic options
Internal and external risks
Technical issue- This is a very important risk for Efarm, especially when it is
completely based on technology. This risk involves potential in which technology
unidentified issues in technology because of which it stops working (Handa and
Garg, 2018). This can be avoided and solved through regular maintenance of
technology and all technical equipments.
Physical risk- This is concerned with the risk that is included in physical
environment of business. This might include loss or damage of business properties
and assets which might include additional cost for business.
External risks- This is concerned with risk that is there an external environmental
factors. Changes in external environment difficult to determined in advance and this
is why frequent and unidentified changes can create significant risk for business.
This might include changes in political and legal factors in external environment
because of which organisation might require to change its policies. Similarly changes
in other external elements also pose risk for business.
Risk monitoring and mitigation
Efarm will monitor risk on periodic basis. A regular time for Risk measurement
or monitoring is every 3 months in which a detailed risk monitoring will be done so
that potential risk in internal as well as external environment can be identified. On the
basis of identified risk mitigation strategies will be developed (Handa and Garg,
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2018). Concerned with technical risk business will undertake regular maintenance of
technological equipment so that unidentified and unpredicted risk can be avoided.
Critical success factors
Critical success factors for Efarm is increasing subscribers of app and increasing
subscribers of online platform of farm (Nasab and et.al., 2017). Critical success
factors also include improving user interface of application which enables to attract
more subscribers for Efarm.
Strategic options
Porters’ generic strategies
Cost leadership- Cost leadership is a strategy in which organisation ensure that
they are leader in industry in terms of cost. Cost leadership enables organisation to
gain benefit in terms of higher profit margin. Efarm can and benefit in terms of low
cost of subscription and this will enable more subscribers for business and will
ultimately lead to increased profitability.
Differentiation- Differentiation is a strategy in which business of different and unique
product to its customers (Islami, Mustafa and Latkovikj, 2020). Differentiation for a
app can be advanced features and advanced technology and improved the user
interface enables easy operation of app. In this strategy differentiation becomes
basis for charging premium price which increase is profit margin of business.
Cost Focus- Cost focus includes that business apply cost leadership strategy for
selected target market rather than complete market of a business. In this business
gain benefit from selected target market and all other selected market other
strategies adopted by business. In thisEfarm can apply cost focus on a selected
target market and gain advantage from that market.
Differentiation focus- Differentiation focus strategy in which differentiation strategy
is adopted for a selected target market (Omsa, Abdullah and Jamali, 2017). In this
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organisation required to developed strategy in which selected target market is
offered differentiation benefits.
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Key milestones
1st Milestone
Gaining 10000 subscribers
Gaining 100000 customer users
2nd Milestone
Gaining 50000 subscribers
Gaining 500000 customer users
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Appendices
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Cornelissen, F., McLellan, R.W. and Schofield, J., 2017. Fostering research
engagement in partnership schools: Networking and value creation. Oxford
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Handa, H. and Garg, A., 2018. Approach to reduce operational risks in business
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Sustainable Development (pp. 123-131). Springer, Singapore.
Ilyas, S., Hu, Z. and Wiwattanakornwong, K., 2020. Unleashing the role of top
management and government support in green supply chain management
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Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies
to firm performance. Future Business Journal. 6(1). pp.1-15.
Korableva, O.N and et.al., 2018. Elaboration of database for the subject domain of
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Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix.
Testing the effectiveness of the commercial marketing mix in a social
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Mohd Satar, N.S., Dastane, O. and Ma’arif, M.Y., 2019. Customer value proposition
for E-Commerce: A case study approach. International Journal of Advanced
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Nasab, S.S and et.al., 2017. Critical success factors for business intelligence system
implementation in public sector organisation. International Journal of
Information Systems and Change Management. 9(1). pp.22-43.
Omsa, S., Abdullah, I.H. and Jamali, H., 2017. Five competitive forces model and the
implementation of Porter’s generic strategies to gain firm performances.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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Pervan, M., Curak, M. and PavicKramaric, T., 2018. The influence of industry
characteristics and dynamic capabilities on firms’ profitability. International
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Pöyry, E., Parvinen, P. and McFarland, R.G., 2017. Generating leads with sequential
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pp.89-99.
Scarpellini, S and et.al., 2018. Defining and measuring different dimensions of
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Stummer, C., Kundisch, D. and Decker, R., 2018. Platform launch
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Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
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Tselempis, D and et.al., 2019. Factors that impact farmers’ engagement in local food
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Vasilev, V.L and et.al., 2017. Internal control in the system of innovation
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Viglietta, G., 2019. Going Viral with the Subscription Business Model. In LA
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Wee, C.H., 2017. Think tank—beyond the five forces model and blue ocean strategy:
an integrative perspective from Sun Zi Bingfa. Global Business and
Organizational Excellence. 36(2). pp.34-45.
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