Innovation and Entrepreneurship: Go Organic Store Business Plan

This business plan focuses on the start-up idea of an online organic grocery store called Go Organic Store. It discusses the industry profile, business model, challenges, prospective customers, marketing plan, competitor analysis, sources of funding, and intellectual property.

Innovation and entrepreneurship

TABLE OF CONTENTS
Executive summary.....................................................................................................................2
Start-up business idea (Product/ services)...................................................................................2
Industry profile............................................................................................................................2
The Business Model....................................................................................................................3
Point of differentiation.................................................................................................................3
Challenges to the business idea...................................................................................................3
Prospective customers.................................................................................................................4
Brief marketing plan....................................................................................................................4
Competitor analysis.....................................................................................................................5
Sources of funding.......................................................................................................................6
Intellectual property (IP)..............................................................................................................7
REFERENCES................................................................................................................................8
APPENDINX.................................................................................................................................10
1. Organic food product sales....................................................................................................10

Executive summary
The present business idea is based upon online organic grocery store name of “Go
Organic Store” who offers range of organic daily products to their customer within London. As
per the current market trend, due to Covid-19, most of the individuals are not able to get the
essential products and that is why, the chosen business plan will be feasible. The statistics also
shows that there is a high demand of online organic food within London and focusing upon small
store will be beneficial for the company in order to improve the brand image of a business. For
business model, the entity will uses business life-cycle in which all the stages evaluated. Further,
there might be different challenges faced by Go Organic store which includes funding,
competitors etc. Further with the help of Copyright as an intellectual property, Go Organic will
protect its product easily. Also, to increase the competition, it uses innovative products that garb
attention of customers.
Start-up business idea (Product/ services)
Go Organic Store will offer organic food items that helps to boost the immune system of
the people during pandemic. The food items include fruits bars, organic candies, dried fruit,
traditional organic beverages etc. Moreover, by considering the external market situation,
company offer online services only in which application will be developed that helps to meet the
demand of customers immediately.
Industry profile
The company deal within organic retail industry in which Soil Association Certification
Organic Market report 2021 revealed that organic sector booms in UK as a online sales increases
by 5% from last 2019. In 2020, the market increases by 12.6% with a net worth of £2.79 billion
and report also predicted that it will reached its highest growth rate in 15 years as compared to
non-organic sector (UK organic market, 2020). As per the appendix-1, it has been evaluated that
the rate of organic products will increased year by year and due to pandemic, organic food stores
are consider as a boom in order to provide range of products to their customers.
In addition to this, due to change in climate, and increase in health crisis, customer also
changes their shopping behavior. Therefore, they become more health-conscious and that is why,
they all shift towards online organic food products. Also, growth of UK organic market
accelerated in 2020 which is almost double from the non-organic food and drink products (UK

Organic market growth, 2021). Thus, it reflects that customers are focused upon the organic
products and that is why, investing upon such business will be more beneficial during pandemic.
The Business Model
In order to generate profit, company should focus upon quality of offered products. Also,
it has to keep changing in its existing product and use innovation within its business that assist to
increase the profit. Moreover, using effective promotional tools also assist company to improve
the business profit. For life cycle of a business idea, Business life cycle will be used in which 5
different stages has been used like:
Launch: It is about to launch new products and Go Organic Store uses such stage in
order to increase the sales. Initially, the sales might be slow and but company must focus on
marketing to their target customers segment by advertising their comparative advantages (Leotta,
Rizza and Ruggeri, 2020).
Growth: During this stage, company increases its sales and this causes positive impact
upon business. Thus, the profit cycle lags behind the sales cycle and profit level is not as high as
sales. Overall, new organic food offering will be assist to generate the sales.
Shake-out: In this phase, sales continue to increase but at slower rate due to change in
the economic performance or entry of new competitors. In order to maintain profit, company
have to offer innovative products that assist to increase the sales and cash flow increases.
Maturity: In the fourth phase, profit margin gets thinner and cash flow relatively
stagnant. During this stage, it is necessary for the company to invest upon new technology and
emerging markets that allow business to develop new growth options (Kerdlap, Gheewala and
Ramakrishna, 2021). Thus, it will assists company to reposition themselves within dynamic
industries and increases the growth.
Decline: it is the final stage of a business new idea cycle where entire profit and sales of
a company decreases. In this phase, companies accept their failure to extend their business life-
cycle due to continuously change in the marketing trend. As a result, some of them take exit
from the industry while some cope up with the challenge by starting business from first phase.

Point of differentiation
Go Organic Store is different from the other business because of its quality of products
and delivery services. There are more than 50 organic store in London and they all provide range
of organic food items. However, the quoted business will be make itself differentiate from the
pricing style and marketing style. Under pricing strategy, the company charge minimal rates as
compared to other store and also offer specific discount to those customer who download the
official application. In the context of marketing, company uses influencers and blog post with
creative content that helps to increase the customer base (Septianto, Kemper and Paramita,
2019). Another unique selling point of the company is such that it provides free delivery to the
customers from the store location and do not took any extra charges (especially who suffered
from Covid). This point of differentiation helps the company to improve the brand image and
increases customer base as well.
Challenges to the business idea
There are many challenges faced by Go Organic Store while establishing its unit, some of
them are as mentioned below:
Funding: One of the major challenge faced by the company is to identify best funding
source for the business to generate profit. Though there are many sources available, but it is not
easy to determine the best that helps to grow the business eventually (Holmes and et.al., 2018).
Identify the changing market need: It is another challenge because it is not able to
consider market need immediately because the trend fluctuates very frequently. That is why,
company have to focused upon market needs and implement the strategy to meet the demand of
customers as well.
Competitors: In order to develop new business idea, company have to consider external
factors in which facing competition from many rivalry firms is common. This in turn somehow
affect the competition and to minimize the same, it is necessary to offer trendy and innovative
products that helps to attract customers towards it.
Hiring employees: Being a small and medium size business, Go Organic Store also faces
issue to hire employees. It is not easy for the company to select the best candidate for the
company who possessed strong competencies in order to take a business toward growth (Bojnec

and et.al., 2019). Also, recruitment and interview process are time consuming and it might delay
the launching date of the business as well.
Prospective customers
Segmentation: Go Organic Store will segment their customers on the basis of demographic
information, in which age, gender and income are considered as a key aspect. Such that under
age, company target people whose age fall in between 25 to 65. Also, both men and women will
be targeted and middle and lower middle class people are segmented because they will easily
buy the products without any bargaining (Jordan, 2017).
Targeting: The quoted business will uses concentrated targeting marketing strategy in which a
single marketing message will be floated for all the segmented people. This strategy is beneficial
for newly start-up business in order to grab attention of many customers over it. Also, it is cost
effective method that helps to build a brand image at local market.
Positioning: In order to establish a brand image, the USP of Go Organic Store will be its high
quality products and low pricing strategy (Nguyen and Zhang, 2020). Along with this, it’s free
home delivery service also assist people to attract easily as compared to their competitors.
Brief marketing plan
For brand positioning in London, Go Organic Store will uses string marketing strategy
that helps to meet the defined aim of the company. Also, in order to develop marketing plan 4Ps
of marketing plan will be used which is as discussed below:

 Product: Go Organic Store will offer online food products which include fruits bars,
organic candies, dried fruit, traditional organic beverages etc. Along with this, company
deal online and that is why, it offer free services to their customers as well.
 Price: Being a newly developed business, company uses penetration pricing strategy in
which it offer product at low cost, which assist to gain market share (Lahtinen, Dietrich
and Rundle-Thiele, 2020). Along with this, it assist customer to take advantage of high
product quality at reasonable price.
 Place: It will establish in London because the city is highly affected due to pandemic and
majority of the obesity cases belong to this area. That is why, opening in this city will be
beneficial for the quoted business and generate high profit as well.
 Promotion: For promoting the business product, Go Organic will uses social media
marketing in which youngster will be attracted and start consuming organic products.
Moreover, influencer is another marketing style opted by the company to attract range of
customers. Further, discount and free delivery services are also consider as a promotional
tool to grab attention of many customers towards it quickly.

Competitor analysis
Particulars Go Organic Store Planet Organic Earth natural
foods
Bio Organix
Health Store
Products The company offer
range of products to
their customers
which includes fruit
bars, bakery
products, dried fruit,
traditional organic
beverages and many
more
Planet Organic offer
Fresh and chilled
organic products
which includes
desserts, fresh meals,
organic bone broth
and organic dairy
products etc.
It offer finest
quality of organic
super foods
spices, herbs and
teas at worldwide
level.
It is a healthy
food store
who provide
range of
organic food
stuff in
London
Price The company offers
penetration pricing
style
It uses competitive
pricing style (Voza
and Roep, 2020).
The quoted
business uses
penetration
pricing style
Skimming
pricing style
Promotional
tools
It promotes the by
digital marketing in
which social media
and influencers are
common method to
promote the
products at different
level
Planet Organic store
uses both traditional
and modern form of
marketing in which
social media and
billboards are
common
It uses only
modern form of
promotional
technique which
includes SEO,
digital marketing
etc.
Uses both
traditional
and modern
form of
marketing
USP The USP of the
company is to
provide free
delivery services
and high quality
products at
reasonable rate.
Planet organic USP
is to help the needy
people and through
organic products,
company want to
increase the market
share
The pricing and
marketing strategy
is considered USP
of a company
(Septianto,
Kemper and
Paramita, 2019).
Discount
strategy and
quality of
innovative
product is the
USP of Bio
Organix

Health Store
Sources of funding
There are two types of sources of funding such as:
 Personal saving: Under this source of funding, owner uses own saving because it will
help to understand how much money is available to run a business and there is no
liability. This in turn assist to get higher return and retain full ownership of a business as
well.
 Bank Loan: Another method through which owner collect finance. Under bank loan, a
specific amount will be borrowing by the company and bank set a limit to repay the same
within specific tenure (Brown and Rocha, 2020). This in turn assist to increase the
ownership and generate higher return in future.
Intellectual property (IP)
It is the category of property which includes intangible creations of human intellect. For
the present study, Go Organic Store uses Copyright as an intellectual property within its food
products (Stim, 2020). Through this IP, company protects its product once it has been made
tangible and create its own importance within a market which reflect that company has its own
products which make it differentiate from others business.

REFERENCES
Books and Journals
Bojnec, Š. And et.al., 2019. Locally produced organic food: Consumer preferences. Amfiteatru
Economic. 21(50). pp.209-227.
Brown, R. and Rocha, A., 2020. Entrepreneurial uncertainty during the Covid-19 crisis: Mapping
the temporal dynamics of entrepreneurial finance. Journal of Business Venturing
Insights. 14. p.e00174.
Holmes, M.R. and et.al., 2018. Local and organic food on wheels: exploring the use of local and
organic food in the food truck industry. Journal of Foodservice Business Research. 21(5).
pp.493-510.
Jordan, R., 2017. Organic Food & Farming in the Context of Climate Change and Food, Water &
Livelihood Security. History. 3(9). pp.518-567.
Kerdlap, P., Gheewala, S.H. and Ramakrishna, S., 2021. To rent or not to rent: A question of
circular prams from a life cycle perspective. Sustainable production and consumption, 26,
pp.331-342.
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 marketing context. Journal of
Social Marketing.
Leotta, A., Rizza, C. and Ruggeri, D., 2020. An Overview of Family Business. Profiles,
Definitions and the Main Challenges of the Business Life Cycle. Management Controlling
and Governance of Family Businesses, pp.7-28.
Nguyen, T. T. and Zhang, W., 2020. Techno-economic feasibility analysis of microwave-assisted
biorefinery of multiple products from Australian lobster shells. Food and Bioproducts
Processing. 124. pp.419-433.
Septianto, F., Kemper, J. and Paramita, W., 2019. The role of imagery in promoting organic
food. Journal of Business Research. 101. pp.104-115.
Stim, R., 2020. Patent, copyright & trademark: an intellectual property desk reference. Nolo.
Voza, M. A. and Roep, I.D., 2020. Exploring the Feasibility of a Mobile Processing Unit as a
Solution for Fruit and Vegetable Sector with a User-oriented Innovation Approach in
Mexico.
Online
UK organic market. 2020. [Online]. Available through:
<https://www.newfoodmagazine.com/news/137823/uk-organic-market/>.

UK Organic market growth. 2021. [Online]. Available through:
<https://www.bioecoactual.com/en/2021/01/28/the-uks-organic-market-dubled-growth-
non-organic-food-2020/>.

APPENDINX
1. Organic food product sales
Figure 1: Forecasting of Organic Food product