Business Plan for Eat Organic: Online Grocery Store

This report describes the business plan for Eat Organic, an online grocery store that offers organic and healthy food products. The report includes details about the start-up idea, products and services, unique selling proposition, market demand and statistics, business model, challenges, prospective customers, product positioning, competitor analysis, and sources of funding.

Innovation and Entrepreneurship

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
Executive summary of business plan..........................................................................................3
Start-up idea and products / services detailing............................................................................3
Description of how my company’s product is different from others competitor’s product........4
Current industry demand and statistics on your market..............................................................4
Business model to generate profits and cycle of entity...............................................................5
Challenges to be faced by the business idea with anticipation in my own venture....................6
Who will be the prospective customers?.....................................................................................6
Description of positioning in London market and four P's.........................................................7
Competitor analysis and highlights of 3 competitors prevailing in the market..........................8
Description of two sources of funding........................................................................................9
Intellectual property that will be used to protect the business idea...........................................10
REFERENCES..............................................................................................................................11

Executive summary of business plan.
The given report described about business plan that has been included a company’s
activities, objectives, and how to achieve organizational goals. “Eat Organic” online grocery
stores business plan has been towards effectuating target i.e., expanding its reach whole over
London. Information that is involved in blueprint of enterprise plot came to be prescribed about
the goods offered detailed information its demand and statistics of organic products essential for
coping up with Corona virus (Finley and et.al., 2018). Subsequently, they generated companies
model generating profits accompanying business cycle, and Taste with Health as their unique
selling proposition to attract public towards using the products they sold. Altogether quoted
plans, they have been also looked deep inside challenges like, developing business idea, capital
raising, etc. and identified that who will be their prospective customer by using STP model.
Further, company has been discussed the positioning in London market and 4 P's along with its
competitor analysis on basis of product, price and place. However, for any organization finance
is life blood so, Eat Organic has used two sources that are venture capitalist and angel investors
as a way to arrange funds in company. Further, they have also made their business idea
trademarked to protect them from any fraud of being copied.
Start-up idea and products / services detailing.
The presented project report deals with retail online groceries named as Eat Organic. Idea
to start this start-up arises with need of people during drastic pandemic Covid-19, where
population is becoming health and diet conscious to keep themselves healthy. Quoted online
store will provide proper healthy edible items escorted by own contact less safe delivery facility
which can meet expectations and desires of consumers according to the today's market situation.
Therefore, list is intended with products includes all types of canned pack vegetables that will
only require hot water and vegetable is ready (Cachero-Martínez, 2020). Further, the organic
store offers coffee beans, health conscious chocolates, juices, etc. All these goods served to the
customers would be made with raw materials like coffee beans that is grown without any
involvement of harmful substances i.e., dangerous chemicals which can harm the human body.
Moreover, the stated firm will use vegetables and fruits for canned pack food, juices that would
be directly purchased from manufactures obtaining such raw materials by farmers growing such
materials without using pesticides. Eat Organic before selecting the production firm will find

various alternatives first, and then they choose few manufacturing entities which are suiting to
their needs by also fulfilling the objectives of prospective buyers.
Description of how my company’s product is different from others competitor’s product.
Eat Organic unique selling proposition that differentiate from other firms are Taste with
Health. Entity have to introduce the goods after analysing the demand and stated online
company has taken benefited of such need by seeing continuous rise in organic health along with
diet conscious product's consumption. Therefore, by taking advantage to this change Eat Organic
will bring merchandises in which raw materials are used that is grabbed directly from the farmer
where they grow plants without any harmful chemicals. Moreover, with above quoted trait firm
also pay attention towards the products quality irrespective of its quantity and will adapt
skimming price strategy to attract consumers by matching their perspective (Trollman and et.al.,
2021). Subsequently, Taste with health will also focus on mass reach distribution towards every
citizen of United Kingdom whose main attention is not to sacrifice on health by taking
nutritional products. Further, the online platform will provide with contactless delivery that
becomes crucial in today's era because of deadly disease attack i.e., Covid-19. However, all
competitors are serving with same products but the firm who is first to come and cope with
changes puts a long-lasting impact on consumer’s mind which will ultimately leads in increasing
market demand for their products.
Current industry demand and statistics on your market.
Report by Soil Association Certification, revealed that orders for consumption and home
delivery of online organic products in UK, is increased by more than a third part. The report
presented from Soil Association shows that organic market has reached to its highest growth as
compare to non–organic groceries sector. Organic market is worth £2.79 billion, after 12.6%
growth of sales during year 2020 and 4.5 percent in 2019. Covid-19, climate, nature destruction
and health urgency has bought many opportunities to all food line business, especially for
organic (Tandon and et.al., 2021). The public are turning towards healthy goods and contactless
services by assurance of transparency, probity and quality the online groceries are providing.
Organic market growing faster than ever with expectation to reach £2.9 billion by year-end of
2021, this in turn provided opportunity for both offline and online organic market towards
innovation alongside growth of economy in terms of GDP. Digital retail grocery stores according
to the report revealed 36.2 percent boom close with £500 million, transcending independent

retailer sales for first time as in 2020 more than £50 million per week was spent on organic food
and drink by the population. So, after studying the statistics it has been cleared that demand of
healthy food will not stop.
Business model to generate profits and cycle of entity
By using business model organization will get help to generate revenues from online
sales, commissions on related sales, etc. and aid in accomplishing all the desired goal along with
its objectives. Eat Organic online platform company will take benefit from such business canvas
model to articulated with increment of profits.
Key partners
 Manufacturers: producing goods
from organic raw materials.
 Suppliers
Channels
 Supplied through agency recruited
by company.
Key activities
 USP: Taste with health, providing
only organic product as compared to
other.
Customer segments
 Selected through STP model of
prospective customer.
Key resources
 Professional employees
 Efficient back desk team
 Creative advertising person
Cost structure
 Fixed cost
 Variable cost
Value propositions
 Easily accessible on site
 Fast shipping and tracking of orders
 Value for money
Revenue streams
 Online sales
 Commission
 Revenue through ads

Customer relationship
 Quick problem solving of customers
 Automated services
Challenges to be faced by the business idea with anticipation in my own venture.
Development of business idea: It is the first and preliminary stage that every entrepreneur
has to face while starting his own start-up. Person need to conceive the idea that is different and
unique which will stand by in market giving strong competition to its competitor. While starting
Eat Organic, venture will have to forecast the demand and supply prevailing, who can be its
target audience, what is the growth rate, competitors, etc.
Capital raising: Most important key term for any start-up, existing business is capital
which denotes as life blood for them to run its operations (Abdalla and Chen., 2021). Eat
Organic venture will have to face this challenge of arranging funds so capital requirement need is
fulfilled to incorporate and carry on the business functions and their operations. Convincing
investors, financial institution, venture capitalist to fund the organization is difficult task as they
have a doubt on the success of start-ups.
Finding good manpower: The most difficult task for any organization is to select and
recruit appropriate, passionate, trustworthy staff that can properly execute plans of business.
Subsequently, Eat Organic venture too will face this difficulty as employees are reflection of
business ethics, and they should know how delicately to attend and fulfil the desires of
customers.
Who will be the prospective customers?
Prospective customers are identified by STP model which is used by each and every start-
ups.
Segmentation:
 Demographic: It is most common form in which differentiation of audience depends
upon age, sex, marital status, family size, nationality, religion, etc. and Eat Organic
company focuses on each type of mentioned traits.
 Behavioural: Eat Organic after giving a thorough look at online shopping habits like
how frequently the buyer is ordering goods through online platform, availability of

internet connection, user of online products, etc. Therefore, after detailed analysis venture
will choose their target audience.
 Geographical: Target audience of Eat organics will be all individual of London market
country except the areas where there is no internet connectivity. Psychographic: Eat Organics prospective customer, after seeing need to keep person
themselves healthy at this crucial time of Covid-19 is all the individual human.
Targeting: Eat Organic target market will depend upon the market size and availability of
resource that should be enough to justify segmenting basically geographical reach and
psychographic (Kamilah and et.al., 2021). Moreover, focus will also be there on benefits with
increment of profits in respect to its cost.
Product positioning: This is the final stage where other competitor’s goods are analysed by
Eat Organic and made compared by its own merchandise they will introduce, and wishes to
occupy the target audience mind.
Description of positioning in London market and four P's.
Eat Organic will create its product positioning in the market by attracting them towards
their quality and quantity without any adulteration along with educating benefits of using organic
goods provided by them to keep themselves healthy as it is crucial during this pandemic.
Four P's of marketing:
 Product: Merchandise a company will offer to its customer is Eat Organic that will fulfil
an existing consumer demand not only from the protection of Covid-19 but also from
other health issues. Company will try to attract buyers and made them believe need to
have it and like this creates a new demand.
 Price: Eat Organic will use skimming method of pricing at which they charge high rate
from the consumers as the customer’s mind is setted with perception that product offered
costly meet with all quality standards (Melović and et.al., 2020). Therefore, by looking at
purchaser’s behaviour and standard company will use this method to charge against the
goods sold in market.
 Place: The product of Eat Organic through its online platform will be sold in London
market and try to reach all customers that are ready for buying their goods. Moreover,
along with place company will decide the channel of distribution i.e., they choose and
appoint agency to fulfil their need of distributing goods over a country.

 Promotion: Eat Organic will use different strategies like social media i.e., by giving paid
ads through you tube, Facebook, telegram, etc. or involve mailing as a medium. Further,
other ways they can use are television, radio platform to reach at mass and might also
include offers like 50% discount, rebate, etc.
Competitor analysis and highlights of 3 competitors prevailing in the market.
Particulars Eat Organic Amazon fresh Sainsbury's Morrison’s
Product Will come up
with the organic
products like
canned packed
vegetables, juices
and healthy
chocolates along
with contactless
services provided
to their
customers.
Providing with
fresh meat,
poultry, fish,
bakery, fruits and
vegetables, etc. to
their customers.
Small retail
business that
stocks a range of
everyday items
such as coffee,
groceries, snack
foods,
confectionery,
tobacco products,
etc.
Provides food and
drink, clothing,
florist, petrol,
books, magazines,
etc.
Price Method of pricing
that will be used
by the firm is
Skimming
strategy in which
they charge goods
at high rate.
Amazon fresh
uses the lowest
price strategy to
be profitable and
for maximizing
gains they find &
use the highest
price.
The entity has
overhauled its
pricing strategy
by moving
towards a mid-
low way with
reducing the
rates.
Morrisons use
premium pricing,
promotional
pricing and
product bundle
pricing. They
continuously
improve offering
by lowering
prices.
Place Eat Organic will
market their
products in all
Place and
distribution
chosen by this
Sainsbury
distribute goods
to its customers
Company
operates good
portion of food

parts of London
along with chosen
agency as
distribution
channel.
entity is omni-
channel where
they uses
different ways to
interact with
customers like,
mobile apps, QR
scan, etc.
through a
specialist channel
like DHL, NFT,
etc. (Veisi and
et.al., 2021). At
present, it has 13
regional
distribution
centres.
supply chain by
selling both
online and in
retail stores
through medium
of tractors.
Description of two sources of funding
Two source of finance that newly start-up online platform i.e., Eat Organic will include to
fulfil the adequate capital needs are as mentioned below.
1. Angel investors: They work as an angel to all those newly start-ups who are in need of
finance for incorporating their business and run operations effectively with efficiency (9
Startup Funding Sources: Where and How to Get Funding for Your Startup?, 2021).
Such investors are generally wealthy individuals or retired company executives who
made their ideal money invested in small start-ups. Eat Organic will take aid of such
funding source as its difficult for newly starting company to grab capital from Banks and
other financial institutions so easily.
2. Venture capitalist: Second, and important source to fund company is through venture
capitalist. Such investors impose money in those start-ups who have high growth
potential by taking equity position which carry out promising but higher risk project
(Stevenson and et.al., 2021). Eat Organic an online platform, will approach to venture
capitalist with full organized blue print of their business structure. Moreover, after
looking into the drafted documents venture capitalist can easily identify firms growth
prospect with profit maximization scenario. Therefore, quoted firm will try to convince
and sell their company by making them move around current market situation prevailing
with need of such start-up in the future.

Intellectual property that will be used to protect the business idea.
IPR are registered under intellectual property right act which are established to protect
business ideas from copied by any other entity. Therefore, all organizations that are planning to
incorporate their ideas into reality get the work, design, logo, brand name, or any discovery, etc.
made by them protected from outsiders through taking benefit from this act. Eat Organic an
online grocery store will also come up with the products like juices, chocolates, vegetables, etc.
and here also need of such act arise. During tenure of incorporation a start-up looks into an
intellectual property rights i.e., they will make their tagline, firms name trademarked so that it
can't be used by any other entity. Further, entity also take the above stated intellectual right to
protect its packaging with labelling and Quality Standard Mark (QSM) present on their products
that will qualify merchandise purity (Roca, 2021). Moreover, accompanying trademark company
also make intellectual property of goods unique designs that will be adapted to attract users along
with protecting firm’s confidential database. Hence, by adopting all these means the entity will
get highly protected from danger of re using their work transcribed either exactly, part of it or
similar nature spadework by any outside party.

REFERENCES
Books and Journals
Abdalla, T. A. O. and Chen, Y., 2021. A case study on the opportunity and challenges faced by
organic farming in Jiangsu Province. Agroecology and Sustainable Food Systems. pp.1-48.
Cachero-Martínez, S., 2020. Consumer behaviour towards organic products: the moderating role
of environmental concern. Journal of Risk and Financial Management. 13(12). p.330.
Finley, L. and et.al., 2018. Does organic farming present greater opportunities for employment
and community development than conventional farming? A survey-based investigation in
California and Washington. Agroecology and Sustainable Food Systems. 42(5). pp.552-
572.
Kamilah, K. and et.al, 2021. THE EFFECT OF ENVIRONMENTAL FRIENDLINESS
FANATICISM OF STUDENTS TOWARDS PURCHASE INTENTION AND
PURCHASE DECISION OF ORGANIC FOOD. Jurnal Manajemen & Agribisnis. 18(1).
pp.32-32.
Melović, B. and et.al., 2020. Attracting green consumers as a basis for creating sustainable
marketing strategy on the organic market—relevance for sustainable agriculture business
development. Foods.9(11). p.1552.
Roca, S., 2021. Compatibility of the Intellectual Property Regime, the Convention on Biological
Diversity and the Nagoya Protocol. GRUR International. 70(4). pp.349-360.
Slávik, Š., Bednár, R. and Mišúnová Hudáková, I., 2021. The Structure of the Start-Up Business
Model—Qualitative Analysis. Sustainability. 13(15). p.8386.
Stevenson, R. and et.al., 2021. Entrepreneur fund-seeking: toward a theory of funding fit in the
era of equity crowdfunding. Small Business Economics. pp.1-26.
Tandon, A. and et.al., 2021. Facilitators and inhibitors of organic food buying behavior. Food
Quality and Preference. 88. p.104077.
Trollman, H. and et.al., 2021. COVID-19 demand-induced scarcity effects on nutrition and
environment: investigating mitigation strategies for eggs and wheat flour in the United
Kingdom. Sustainable Production and Consumption. 27. pp.1255-1272.
Veisi, H. and et.al., 2021. Competing fields in sustainable agriculture: on farmer-expert
understandings of good farming, good farmers and organic farming. International Journal
of Agricultural Sustainability. pp.1-13.
Online
9 Startup Funding Sources: Where and How to Get Funding for Your Startup?.2021 [Online].
Available through: < https://blog.salesflare.com/startup-funding-sources >.