Entrepreneurship Proposal for Meal Kit Delivery Services in UK

This proposal outlines the business concept of meal kit delivery services in UK, including legal identity, research on the business sector, target market, competition, internal and external analysis, business strategy, operations, marketing, and finance.

Entrepreneurship

Table of Content
 Introduction
 Business concept
 Legal entity and business goals
 Research of business sector
 Target market and competition
 Internal and external analysis
 Business strategy, operations, marketing and finance
 Critical analysis of main components of business
 Inter-relation between main components of business
 Conclusion
 References

Introduction
Research on external and internal environment of business sector along with the existing
competition in the respective sector is essential so as to understand viability of a business concept.
The proposal presentation outlines the business concept about meal kit delivery services. This
includes description of the legal identity and research justified by data on the business sector.

Business concept
The business concept is about entering UK meal kit industry by
offering healthy and vegan meal kit services with fresh ingredients
as well as variety of culinary options. The meal kit delivery services
will offer consumers recipe boxes packed in sustainable materiel
delivered to consumers any time. The recipe box will contain pre-
measured ingredients so that recipe can be cooked quickly.

Legal Identity and business goals
The legal identity of the business will be limited
liability partnership. The partners’ liability will be
limited to the amount of money invested by the
same in the business. The LLP will be registered
at Companies house. This is suitable legal identity
for small enterprise as it has low registration cost
and provides savings from lower compliance
burden.

Research of business sector
The business concept of opening meal kit company in UK is a viable idea because of higher
growth opportunity in the industry. The pandemic has opened new opportunities for higher
profitability for meal kit firms which is depicted by the surge in sales of firms in this sector.
Meal kit boxes industry in UK was increased by 1114% in April 2020 vs 2019. Out of the 22
million bank accounts analysed by Cardlytics, 11 million accounts purchased recipe boxes.
Consumer trend analysis shows that 12% of adults are considering ordering a recipe box or
meal kit in next 12 months. Apart from this, more than 57% consumers who have subscribed
to meal kit delivery service will be continuing their subscription and increasing their monthly
orders.

Target market and competition
Segmentation: Behavioral segmentation includes dividing markets on the basis of decision
making patterns. Consumers living in individual households who want to eat home cooked
meals are suitable market segment developed by behavioral market segmentation.
Targeting: The target market segment for meal kit delivery services are consumers living in
individual households as they regularly need recipe boxes to prepare home cooked meal
quickly.
Positioning: The unique selling proposition of the meal kit service will be sustainable recipe
boxes delivered 24/7 at lower price than competitors.

Internal analysis and external analysis
SWOT analysis
• Strengths: The main strength of entering meal kit delivery industry is that it
provides easy solution to prepare home cooked meal quickly. This attracts large
number of consumers in Urban areas who have limited time to spend on
cooking.
• Weaknesses: Constructing distribution channels for quick delivery and
commercial kitchens to prepare recipe boxes require huge amount of
investment.
• Opportunities: Meal kit sector offers growth opportunity in developing Asian
countries due to rapid urbanization and demand for authentic home cooked
meals in densely populated cities.

Continue…
PESTEL analysis
Political Factors: Brexit impacts business firms operating in
meal kit industry as it has reduced EU workforce in UK.
Economical Factor: The harsh economic conditions created by
COVID-19 pandemic in UK can considered as an external
factor which can impact meal kit delivery firms.
Social Factor: The social trend of consumers reviewing food
enterprises on social media and making purchase decision on
the basis of social media ratings is a factor which affects
business firms in meal kit industry.

Continue…
Technological Factor: The increase in online food orders after emergence from lock-down is
the primary technological factor which affects growth and future of business firms operating in
meal kit industry.
Environmental Factor: Consumers shift towards consuming vegan food because of
environmental concern is the main environmental factor affecting meal kit delivery services.
Legal Factors: The main legal factor which affects meal kit delivery services is the Food
Safety Act, 1990 which provides framework for food legislation in UK.

Business strategy, operations, marketing
and finance
Business strategy: Market penetration is the suitable business strategy for business concept of
opening low cost meal kit delivery service in UK. This strategy involves introducing existing
products in thriving markets with high demand and combat the competitors. Low cost meal kit
delivery services with variety of vegan and non-vegan options will be able to gain large market share
rapidly and drain business rivals. This will assist in attainment of business goals and provide profits
which will further assist in expanding internationally.
Operations: The business operations include preparing recipe boxes with measured ingredients in
commercial kitchens and delivering to few postcodes by own brand distribution channels.

Continue…
Particulars Amount
Licenses £500
Interoperation £300
Permits £500
Internet set up £300
Lease Deposit £1,500
Accounting £500
Legal £300
Security £2,000
Transportation £4,500
Payroll services £3,000
Website domain registration £400
TOTAL £13,800

Critical analysis of main components of
business
Human resource management department: This is main business competent for meal kit
delivery service as it helps retain skilled employees. Skilled employees play critical role in
preparing tasty meal kits for consumers and delivering services in a timely manner which is
essential for providing satisfactory consumer experience. The advantage of this business
component is that it builds high talented workforce which can given the company competitive
advantage in the meal kit industry.

Inter-relation between main components of
business
HR and marketing department: HR department recruits highly skilled employees in the marketing
department and works with marketing department suitable training to develop current and future
skills required by the company. The marketing department collaborates with HR department to
advertise vacancies and attract skilled candidate for recruitment and selection.
Finance and R&D: The finance department provides financial to invest in research and
development activities. In return the R&D department develops innovation and unique products
which can be pitched to investors to secure funding. The benefit of this interrelationship is that meal
kit company is able to contentiously develop innovation in a cost effective manner. The drawback
of this interrelationship is reliance on success of innovations to gain funds.

Conclusion
From the above report it is determined that business proposal needs to be completed after
completing research on business sector. Apart from this legal identity of the business concept
is also included in the proposal. PESTEL and SWOT analysis are useful tools to explore
external and internal environment of business sector.

References
• N. Randazzo-Barnes, C., 2018. If It’s Not Broken, Don’t Fix It: A Call to Amend the Definitions Provided by the
Food and Drug Administration to Include the Newly Developed Meal-Kit Delivery Industry. Journal of Legal
Medicine, 38(2). pp.313-328.
• Gee and et. al., 2019. Deliver Me from food waste: Model framework for comparing the energy use of meal-kit
delivery and groceries. Journal of Cleaner Production, 236. p.117587.
• Gavilan and et. al., 2021. Innovation in online food delivery: Learnings from COVID-19. International Journal of
Gastronomy and Food Science, 24. p.100330.
• Roh, M. and Park, K., 2019. Adoption of O2O food delivery services in South Korea: The moderating role of moral
obligation in meal preparation. International Journal of Information Management, 47. pp.262-273.

References
• Lambie-Mumford, H., 2017. Hungry Britain: The rise of food charity. Policy Press.
• Kosseva, M. R. and Webb, C. eds., 2020. Food industry wastes: assessment and recuperation of commodities.
Academic Press.
• Online
• How Popular Are Meal Kits? Industry Statistics In 2021 And Beyond, 2021. [Online] Available through <
https://trulyexperiences.com/blog/meal-kits-industry-statistics/>
• Meal kits at ' tipping point' as Hello Flesh's bumper quarter illustrates sector's growth potential, 2021. [Online]
Available through <
https://www.foodnavigator.com/Article/2021/05/04/Meal-kits-at-tipping-point-as-HelloFresh-s-bumper-quarter-illus
trates-sector-s-growth-potential
>
• Take one lockdown, add a gourmet meal kit … and taste the success, 2020. [Online] Available through <
https://www.theguardian.com/food/2020/nov/15/take-one-lockdown-add-a-gourmet-meal-kit-and-taste-the-success>

Thank You