Innovation and Entrepreneurship

This report discusses the concept of innovation and entrepreneurship and its importance in starting a new business. It explores the idea of selling organic food through e-marketing and provides detailed information on marketing strategies, potential customers, and sources of funding. The report also covers the challenges faced by the business idea and the competitors in the industry.

Innovation and
Entrepreneurship
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Start up business idea...................................................................................................................3
Industry profit..............................................................................................................................3
Business model............................................................................................................................4
Point of differentiation.................................................................................................................4
Challenge of business idea...........................................................................................................5
Prospective customers.................................................................................................................5
Brief marketing plan....................................................................................................................6
Competitors analysis....................................................................................................................7
Sources of funding.......................................................................................................................7
Intellectual property.....................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Entrepreneur is an individual’s that wants to start a new business by undertaking
associated risk with an objective to earn maximum return. It plans new and innovative ideas that
could be used by organisation to attract more and more customers so that it can enjoy higher
profit margin. Innovation can be termed as innovative and creative ideas that are used by
business to induce customers so that company can retain its competitive advantages. This report
has explained about the new business idea that is selling of organic food range through e-
marketing to earn maximum revenue and market share. It has contained all detailed related to
marketing strategies, potential customers and sources of funding that will be used by company to
grow and expand its operation.
Start up business idea
The “Farm fresh” is one of the new businesses that have decided to sell organic food
products range to customers so that they can life healthy and better lifestyles. The company has
planned to provide organic fruit bar, candies, pickle, puffed snacks and many other organic food
product to customers. At the same time, the Farm fresh will also sells fruits; organic pulses and
other products to gain and retained competitive advantages in food industry (Lynde, 2020). It has
also decided to provide all these organic products through online medium by quickly delivering
them at the door steps of customers. Through digital media company has planned to delivered
24*7 hour customers services so that they can be happy and satisfied. The company has planned
to follow all legal laws and regulation while deciding to start and operate the new business idea
so that no barrier can be created in its effective achievement of end goals.
Industry profit
The organic food industry of United Kingdom is boosting increasing awareness among
people to have healthy and tasty food products to satisfy their respective requirements. With
digital growth, consumer demand for organic food products has been doubled that has provided
an opportunity to start a business of organic food to meet customer’s expectancy and earn huge
profit margin. As per 2019 organic food and drink sales in United Kingdom was around 2.3
billion pounds and it is estimated that marketing is 2.79 billion. As the sales have increase by
12.6 percentage in 2020 that provide opportunity for Farm fresh to grow its business operation.
Furthermore it has been identified through secondary research that organic food products make
up of 5.7% of US food sales. The people spend around 200 million of money each month on
3

organic food in UK thereby Farm fresh through offering organic food products range can attract
all these customers and enjoy huge market share in longer run (Han and Park, 2017). So, on an
average there are 64% of people that make purchase of organic food and vegetable products to
stay healthy and fit. The consumers are become more and more concerned about their health and
wellness with increase number of diseases so it has provide opportunity to company to offer
healthy food. Through
Business model
Business model can be stated as outline of the way company plan to make money through
selling its products as well as services to potential customers in specific market for gaining
maximum return. The four core areas that are covered by the business model are the way
company will sell products, its intend market, type of expense it need to made and what is the
expected profit. The Farm fresh company out of various business models make use of Crowd
sourcing model as it will contribute in gaining popularity through online platform. Company can
easily get information about customers taste and preferences, their opinion and many more
thereby plan effective strategies that could be used to influence them within organisation
(Howard, Zwicky and Phillips, 2018). Furthermore, this model will contribute the new business
to effective tap into vast network of talented and experienced that can delivered best services to
customers in limited time frame and cost. Through this business model it will extract information
pertaining to market trends thereby plan actual strategies that could be used to make customers
happy and satisfied beyond their needs.
Point of differentiation
The Farm fresh has tried to differentiate itself from other competitors that are operating
their business in food industry of United Kingdom through making use of social media, content
and email marketing. It will continuous post new image, videos and content on different social
media platform to contact and engaged with range of customers. Likewise through email the
company will make aware customers about existing offer, prices so that they can take right
decision. The website of the company is also simple and easy to use so that any individuals that
want to have fresh, organic and hygiene food products can order and get home delivery. At the
same time setting reasonable price for fresh and organic products so that customers are provide
products that ensure their health as well as well being (Leal-Millan, Peris-Ortiz and Leal-
Rodríguez, 2018). It has ensure that people get products that are valuable so that they are
4

motivated to be part of it rather than other enterprise operating in similar industry. Moreover, it
will have differentiate pack gaining, 24*7 services and highly determined employees that are
ready to give their best for growth and expansion of business. So, all these will help company in
differentiating it form other competitors and gain competitive positioning.
Challenge of business idea
There are few challenges pertaining to new business idea of starting online delivery of
organic food products range to wide range of customers such as limited access to financial and
other resources. Fresh farm is operating its business online so it has challenge that less number of
people trusts online shopping. Due to increasing number of fraud and Malpractices Company
will face challenge in attracting customers and expanding its business operation (Leal-Millan,
Peris-Ortiz and Leal-Rodríguez, 2018). At the same time, increase competition is also one of
biggest challenge of online food delivery business as there are many other companies that are
making use of innovative technology to attract and retained customers in the firm. Moreover, the
farm fresh is small and medium companies so it has limited products and services to offer to
customers so that their desired can be fulfilled. Legal formalities that need to be completed for
starting and operating business also acts as challenge for new business idea as it has to follow all
legal laws and restriction while operating business online. So, it can be stated that no harm can
be cause to individual that are living in society in any circumstance (Sun, 2018). Therefore, all
are these basic challenges that business will incorporate while expanding its business idea for
fruitful outcome.
Prospective customers
Customers are most crucial for any organisation as they make purchase of products and
services in order to satisfy their respective wants which resulted in increasing overall
profitability of company. The farm fresh operate its business in food industry thereby in order to
select its prospective customers it has make use of segmentation, targeting and positioning so
that it can retained its market share (Mothersbaugh, Hawkinb and Kleiser, 2019).
Segmentation: The Company has segmented the prospective customers on basis of
demographical (age, gender, caste, income), geographical (location at which they live) and
psychological (their taste and preferences)and behavioural( attitude and belief). Thus company
through segmentation is able to understand and identified its prospect customers that are ready to
buy organic food products to meet their needs.
5

Targeting: The fresh farm has mainly plan to target customers that wants to have organic and
hygiene food products in their diets. Moreover, it has decided to have medium and high income
group individuals that want organic food at reasonable rate to fulfil their requirements. Younger
generation are also target of company as they are more concerned about their health and well
being.
Positioning: Enterprise has planned to effectively position its brand image by providing
qualitative, hygiene and organic products so that it can grow and sustain its business in
competitive environment (Alahverdi, 2017). So, through reasonable pricing strategy and
qualitative products company is able to attract more and more customers.
Brief marketing plan
These is segment that contained detailed pertaining to marketing strategies or key action
that company used in order to attract more and more customers. Fresh farm has make use of
different marketing strategies to promote its products and services for retaining its market
positioning in food sector of United Kingdom. The company will make use of marketing mix
strategies to attract wide range of customers within organisation and attained competitive
advantages. So the way it will make use of marketing mix strategy can be illustrated as follows:
Products: The Company has decided to offer qualitative and organic fresh food to its customers
so that they are always motivated to prefer it rather than other competitors in market. It will
provide fresh food and vegetables, pickle, fruit car and candy to customers so that they can have
better and healthy lifestyles (Kelly, 2020). Moreover, it has planned to have innovative design,
attractive packaging so that customers are attracted within organisation to have its product for
fulfilment of their respective desired.
Price: The Farm fresh has decided to set reasonable price for its qualitative products so that
middle as well as high income group can come and make purchase for ensuring their health and
well being. Therefore it has planned to become price leader in organic food industry so that
maximum numbers of customers are part of organisation.
Place: The customers can easily make order of their respective products and services through
online or official website of the company. The website has contained all detailed pertaining to
organic food products in its deal along with their respective prices (Vinerean, 2017). It is also
friendly and easily access or use by individuals to make purchase order and get delivery of goods
at their doorsteps.
6

Promotion: The Farm Fresh will make use of social media, content as well as e-mail marketing
to attract range of customers within organisation. It will post its fresh food image on social sites,
inform and build relationship with customers through email so that they are motivated to be part
of company (Keegan and Rowley, 2017).
Process: Since the company will be initially starting the process will be simpler, but it would be
clearly explained to each and every individual about their respective roles and responsibilities
within organisation. So, that there are minimum chance of confusion and conflict in future
circumstances regarding the way particular task will be completed.
Physical distribution: The company will maintained strong supply chain and distribution
channel so that it can delivered timely services to range of customers. So, it is planning to make
customers happy and satisfied by delivering products in minimum time.
People: The Farm fresh will have talented, determined and dedicated employees that are ready to
give their best so that company can attain its objectives (Carvalho, 2017). Moreover it has plan to
provide training and development to employees regarding the way they will delivered services to
customers.
Competitors analysis
There are various competitors of Fresh farm in online organic food products such as Yeo
valley farms that is family owned and dairy company that is having around 250 organic farm
through which people are delivered fresh products at anytime and anywhere in London. Ethical
superstore is online store that provide fair trade and organic products to customers, likewise it
have 2500 fair and widest range of products available to meet customers’ requirements. Farm
drop is another company that delivered online fresh, fairer food and home to their doorsteps. So,
all these companies have different market share, profit margin and products and services thus it
lead in increasing competition among the company in organic food industry (Leal-Millan, Peris-
Ortiz and Leal-Rodríguez, 2018). There are many more small, medium and large company that
are making use of varieties of strategies to attract customers so that they can enjoy high profit
margin. So farm fresh in order to competitor all these companies needs to offer products at
reasonable prices so people can afford and motivated to make purchase in order to satisfied their
respective desired.
7

Sources of funding
Company requires sufficient amount of capital in order to grow and expand its business
operation in external environment. So, there are different sources through which company can
easily raise its capital to smoothly operate its business in external environment. Thereby different
sources of funding used by “ Fresh farm” to expand its business can be illustrated as follow:
 Bank loan: It is one of the best methods that have been used by the company to arrange
sufficient capital for meeting all its expenses. The organisation can easily get fund
through taking bank loan by making repayment at small instalment at specify interest
rates. The Fresh farm” through bank loan can significantly get amount of money at one
time that it will required in order to start and operate business successfully.
 Owner capital: It is another sources that could be used for funding of new business idea
which is named as “ fresh farm” as the owner itself has its own saving which it can used
for meeting all expenses of the business. Thus it does not even have to pay interest for
using the money for operation of business in effective manner (Keegan and Rowley,
2017). But the disadvantage of owner capital is that it have limited amount of capital
which may not be sufficient for starting and operating business smoothly. So, bank loan
and owner capital are two sources through which “ fresh farm get its fund to effective
operate its business and enjoy high profit margin.
Intellectual property
Intellectual property is use of property so that firm strategies, method or business model
cannot be copied by other individuals for earning maximum return. Copyright, patent, trademark
and trade secrets are various type of intellectual property that is used by company to protect its
technology and idea from being used. Likewise the Farm fresh will make use of copyright to
protect its original work of authorship so that it cannot be used by other person to attract
customers and enjoy high profit margin (Sun, 2018). Copyright will contribute Farm fresh owner
to take its permission in order to copy the idea to grow and expand business operation for fruitful
return. So use of intellectual property by company will lead in building strong brand image and
attracting more and more customers in the firm.
CONCLUSION
From the above report it can be concluded that Farm fresh is innovative business idea that
has been used by company to induce maximum number of customers to enjoy higher return. It
8

can be stated that enterprise has various option to raise its fund such as bank, personal loan
which it can take to expand its business. Moreover, it can be stated that company through
continuous making improvement and ensuring quality of products is able to yield maximum
benefits. At last it can be summarised that company through making use of intellectual property
can gain competitive advantages and earn higher profit margin.
9

REFERENCES
Books and journals
Alahverdi, A. A., 2017. Researches Benchmarking for Identifying the Relationship between
Innovation and Entrepreneurship in E-commerce. International Review of Management
and Marketing, 7(5). pp.1-8.
Carvalho, J. M., 2017. Social innovation and entrepreneurship: The case of Porto region.
In Entrepreneurship: Concepts, methodologies, tools, and applications (pp. 850-887). IGI
Global.
Han, J. and Park, C. M., 2017. Case study on adoption of new technology for innovation:
perspective of institutional and corporate entrepreneurship. Asia Pacific Journal of
Innovation and Entrepreneurship.
Howard, H. A., Zwicky, D. and Phillips, M., 2018. Academic libraries support cross-disciplinary
innovation and entrepreneurship.
Keegan, B. J. and Rowley, J., 2017. Evaluation and decision making in social media
marketing. Management decision.
Kelly, R., 2020. Collaborative Creativity: Educating for Creative Development, Innovation and
Entrepreneurship. Brush Education.
Leal-Millan, A., Peris-Ortiz, M. and Leal-Rodríguez, A. L., 2018. Sustainability in Innovation
and Entrepreneurship (pp. 1-9). Springer.
López-Lemus, J. A. and Garza Carranza, M. T. D. L., 2019. The practices of business
management, innovation and entrepreneurship: influencing factors in the performance of
entrepreneur firms. Nova scientia, 11(22). pp.357-383.
Lynde, R., 2020. Innovation & entrepreneurship driving food system transformation. Physiology
& behavior, 220, p.112866.
Mothersbaugh, D. L., Hawkin, D. I. and Kleiser, S. B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
10

Sun, Z., 2018, July. Innovation and Entrepreneurship in the 4th Industrial Revolution. In Joint
Workshop on Entrepreneurship (pp. 1-34).
Vinerean, S., 2017. Importance of strategic social media marketing.
11