Organic Fruit Juice Business Plan - Farmy Freshness

Farmy Freshness is a start-up business that offers organic fruit juice using natural sweeteners. The company aims to target diabetic people, diet-conscious individuals, sports enthusiasts, and old-aged groups. The marketing plan includes promoting the business through websites, social media, and newspapers.

Innovation and
Entrepreneurship

Table of Contents
1. Executive Summary.................................................................................................................3
2. Start-Up Idea............................................................................................................................3
3. Industry Profile........................................................................................................................4
4. Business Model........................................................................................................................5
5. Point of Differentiation............................................................................................................6
6. Challenges................................................................................................................................7
7. Prospective Customers.............................................................................................................8
8. Marketing Plan.........................................................................................................................9
9. Competitor's Analysis............................................................................................................10
10. Source of Funding................................................................................................................11
11. Intellectual Property Rights.................................................................................................12
REFERENCES..............................................................................................................................13

1. Executive Summary
The start-up company with the name Farmy Freshness is about to launch organic fruit
juice in the market of London, UK. Farmy Freshness will offer their customers healthy and fresh
juices which will use only organic sweeteners and no any extra artificial agents in it. The
concerns related to health have been increased from the last few years and Covid-19 had played
an important role in increasing the health concerns. There is large pool of opportunity for this
start-up business. The main target of the Farmy Freshness to provide organic fruit juice. The
expected consumers of this young company will be the diabetic people, the people who are very
concerned about their diets also kids, sports enthusiasts and old aged group. There are many
companies that are selling and manufacturing the fruit juices. They are using fructose and other
added agents that are harmful for health of the consumers and Farmy Freshness will offer
organic fruit juice using natural agents that does not cross the brix levels. The company will be
promoting their business through mails, websites, various social media platforms and
newspapers. Also the major goal of the new company is to gain attention and faith of the
consumers to sustain in the competitive environment.
2. Start-Up Idea
The Farmy Freshness is start-up business. It is going to sell the fresh juice also it will
provide the fresh fruits that are not easily available in London. The Farmy Freshness will buy
fruits from other countries and provide the consumers organically sugar free juices. The added
sugars are harmful and have a negative impact the health. Also the people with high sugar levels
are using the artificial sugar free contents in their drinks that is also leaving the bad impact on
their health. The Farmy Freshness is using the natural sugar free contents in their products.
Jicama is traditional sweetener it is used as sugar it does not cross the added sugar labelling. It
will be used the juice if the extra sweetness in juice is demanded by the consumers. The juice
will be made when there is a customer's demand and they will not be adding any artificial
preservatives and added colours. So the juice will be organic and fresh. Also the consumers can
see the juice making process for their satisfaction. The company Farmy Freshness will also be
providing the fruits that are foreign fruits to their consumers at the reasonable rates. The
consumers will not have to compromise with the quality and price. Also they will be drinking

and eating healthy with the Farmy Freshness company. The Farmy Freshness will be opening
small stalls near their consumers so that the consumers can reach them with ease. The goal of the
company to take a step forward and make fruit juices more attractive across the London.
3. Industry Profile
The fruit juice production falls in the juice production industry of UK. The companies
that produce fruit juice, vegetable juices and concentrates are part of this industry. These
products may be fresh, cold pressed or pasteurised. Cold pressed are those which aids the storage
and shelf life. The smoothie production is also involved in the same industry. The products and
services that are included in this industry is juices, fruit and vegetable blends and smoothies.
The fruit juice industry has a strong influence of consumer trends on it (Panikuttira and
O’Donnell, 2018). This affects the competition on internal and external levels. A consciousness
towards the health is rising now a days among the consumers. This has supported the revenues to
the British government from last five years. The increasing health concerns have boosted the
customers to use the fruit juices and fruits and vegetables into their diets. The industry operators
have to boost it more and come with clear marketing strategies to improve the revenues. The
industry is looking forward to extend further in the next five years. The trends by the consumers
are more like to change and influence the performance of the industry. As the consumers keep up
with the healthier diets and stays concerned about the issues related to their health they will
choose the healthier options.

The statics shows that the there is fluctuation in the fruit juice consumption. But in the
last year 2020, the growth can be seen (Huang and et.al., 2017). The major cause of this growth
is health concerns of the consumers and Covid-19 has played an important role in this growth.
4. Business Model
The business model of Farmy Freshness can be explained by: Product:The Farmy Freshness will sell fruits and fruit juices. And for the sweetening
they are opting organic sweeteners. Marketing: The Farmy Freshness will be marketing their product via websites, social
media and newspapers. Expenses: The expenses of the company can be described through the table:
Item Prices (in Pounds)
Buildings 10000
Machinery 5000
Illustration 1: Statics of Juice Production Industry in UK
Source:Value of the fruit juice market in the United Kingdom from 2013 to 2020, 2021

Marketing and promotions 100
Salaries 1500
 Profit: The main source of earning for the Farmy Freshness is consumers. By grabbing
attentions and earning the customers they will earn the profits. Competitive Analysis: The Farmy Freshness will sell the organic fruit juice that does not
add any artificial and harmful ingredients in it and preparation of the juice making will
start only after the order is received. No any other contemporary business is selling such
product right now. Cost structure:The major expenses of the company includes machinery, buildings,
expenses in the promotions and the salaries of the workers in the company. Resources: For Farmy Freshness the resources are machinery, furnitures, rent and the
worker's wages.
Business Life Cycle
Business life cycle is the phases of the growth over different time periods (Business Life
Cycle, 2021). Generally it is divided into 5 sections. First section explains about the launch
period. In this period the sales are slow but it increases gradually. Second phase is growth, there
is rapid growth in the sales and business starts to earn profit. Third section is shake out where the
sales continues to grow but rate of growth is slow (McDonald and Eisenhardt, 2020). Forth
section is maturity where the sales begins to decrease slowly. In this phase businesses extend
their life cycles. Fifth section is decline phase, in which companies accept their failures and starts
to change their approaches.
5. Point of Differentiation
The start-up company has to differentiate themselves from the other contemporary companies.
There are some points how the Farmy Freshness will be differentiating itself from the other
companies:
 The other companies are producing juices that are cold pressed and pasteurised. Whereas
the Farmy freshness will be producing the organic fruit juice.
 The other juice producers are selling packaged fruit juice and the Farmy Freshness will
be providing their consumers with freshly made juice. They will also give additional

benefit other than the best healthy drink is that the consumers will be getting the juice in
the best affordable prices that are lower than the contemporary juice manufacturers.
 The Farmy Freshness will also let the consumers see their juice making procedures to
gain their trust. They will open small stalls as there outlets that will be close to the
customers. The other companies are using fructose as their sweeteners that are 20%
sweeter (Kim and et.al., 2019). Fructose increases the brix levels of the juice whereas the
Farmy Freshness will not use any added sugar or if using they use the natural sugar and
this does not have any impact on the sugar levels.
 The companies are using extra added artificial flavours and artificial colours to their
drinks whereas the Farmy Freshness will not use any of the artificial ingredients in their
juices.
 They will also provide the fruits that are not grown in the country due to unsuitable
climate or any other reasons are available in the Farmy Freshness stores and will sell such
fruits in affordable prices. They would buy it from other countries and make these less
approachable fruits in their consumer's range for their use.
 The Farmy Freshness will differentiate itself from the other companies in terms of quality
as well. The main focus of the company is to provide the quality to their consumers. Also
the main targeted consumers of the company will be the people who are diet conscious
and those who are suffering from high sugar levels and are not allowed to intake anything
from the measured sugar level.
 One of the concerns of the UK government is to focus on environmental concerns (Shi
and et.al., 2021). The Farmy Freshness is planning to use the environment friendly
containers for the juice and carry the fruits.
6. Challenges
The challenges that Farmy Freshness can face are as follows:
 The major challenge of the company Farmy Freshness will be that there are so
many other brands that are well established in the market from many years. It is
difficult get settled in such market where there are companies who are serving the
same product and service as the new start-up.

 The success of the start-up is based on the customers (7 Most Common
Challenges Faced By Startups, 2021.). Earning faith of the customers in such
competitive environment would be a little difficult but with proper strategies
Farmy Freshness will earn the faith of the consumers. To win the faith and
confidence of the customers the Farmy Freshness needs to work in the direction
of customer centric philosophy.
 One more challenge is to start the business, there might be some problems related
to the funds. The young business mainly depends on the investors. Also the
anticipated challenge will be managing the funds. In order to overcome this
situation, Farmy Freshness needs to work very cautiously.
 The main focus of the Farmy freshness would be to attract those consumers that
are diet conscious and diabetic, that can draw the limitation for them in the future.
The Farmy Freshness might face the challenges of setting unrealistic goal. But
starting business is all about taking risks and grabbing the opportunities. For
sustaining in the market consistent efforts are required.
 The Farmy Freshness wants to sell the fruits that are not grown in the country for
that the company has to list the sellers that are willing to do business with them, It
will be really difficult to find the trustworthy partners.
 The major challenge will be hiring suitable candidates within the company
(Shrivastava, 2019). Also to develop an organizational culture and create a team
with similar focus and capabilities. The Farmy Freshness will find so many
aspiring candidates but selecting the most appropriate candidate for the start-up
business can be very tricky task.
7. Prospective Customers
This is important to know about the prospective Customers. They can be as follows for the
Company:
 The major focus of Farmy Freshness will be the diabetic people, who are suffering from
the high sugar levels and cannot intake more than the particular sugar levels. As the
company will be providing sugar free juices or maintaining the sugar levels in their
product.

 The expected consumers will be those who are really concerned about their fitness and
wants to follow their calculated diet and do not want to exceed the sugar levels.
 The sport enthusiasts will also be the expected audiences of the Farmy freshness. The
sports enthusiast have to follow their diet and they have to make compromises because of
the unhealthy options available in the market. Farmy freshness will offer them the healthy
alternate in juices.
 The consciousness towards the health and awareness towards the healthy diets is
increasing in the consumers. So these health conscious people will also be the targeted
costumers of the Farmy Freshness.
 The Farmy Freshness is thinking the old age group of consumers as their future
customers. Most of the old aged people are suffering from chronic diseases and they are
on ongoing medication, they might choose to consume juices from the Farmy Freshness.
 The Covid-19 pandemic has also increased the health concerns of the parents and they
want their kids to eat and drink healthy (Bortolini and et.al., 2018). Also their main
concern is to boost the immunity of their child. Farmy Freshness will offer them the
healthy and organic juices. The kids will be the prospective customers of the company.
 People in London have started to opt for organic items in their diets. They are diverting
themselves towards the organic options. Farmy freshness will come to the market in the
same time and there are very limited companies that are providing such products. The
company thinks that they will be able to attract these customers.
 People who want to explore new and different juices will also be the customers for the
Farmy Freshness. Because they will be providing the fruits and the juices that are not
grown in the country or are not easily available for them.
8. Marketing Plan
Farmy Freshness will use the strategies for the positioning in the London market. The
positioning strategy that will be used is product characteristics or consumer benefits. In this
strategy the main focus remains on the quality of the product. The target of the Farmy Freshness
is to provide the quality juices to the customers. The main strategy of the Farmy freshness will be
to sell the best quality of the fruit juices and the fruits. This will help them to sustain in the
market for longer time.

The another strategy that can be used by Farmy Freshness will revolve around the
pricing. The price is the major concern of the customers. Customer's perception is to get the best
quality product with affordable pricing (Ibidunni, Peter and Ogbari, 2017). This strategy will
support the company and help them reach to the more number of consumers.
The 4-Ps of marketing strategy: Product: The product that the Farmy Freshness will be offering would be diverse range
of juices and fruits. The main focus of the Farmy Freshness will be to maintain the
quality and taste. Also to provide the fresh juices without any preservatives and fructose
and maintaining the sugar levels with organic sweeteners. Price: Farmy Freshness will use the strategy of pricing and this would be economy
pricing strategy. This strategy will be helpful to attract the prospective consumers who
are looking to save as much money as possible on the product they are buying (5 Smart
Pricing Strategies to Attract Customers, 2021.). Promotion: The Farmy Freshness will adopt the promotional strategies such as
advertising it on the website, on social media, and newspapers to create the hype about
the new start-up among the customers.
 Place: The Farmy Frehness will be opening small outlets in London near their
consumers. Such as near schools, colleges, gyms, play grounds and sports areas, near
hospitals and colonies for grabbing as many consumers as they can.
9. Competitor's Analysis
Farmy Fresh is a start-up company that will sell fruit juices in already existing market.
There are already many companies that are selling juices. These companies will be the
competition of the young start-up.
Major competition of the Farmy Freshness will be the Orchard House Food Ltd. The
company is in the market from 1985. It has the experience and they have gained the consumer's
confidence. They are selling fruits and the packed juices. These are the same products Farmy
Freshness wants to sell in the same market. The Orchard House Food Ltd will prove to be a
tough competition for the new business.
The other company that will give a tough competition will be Innocent Ltd. This
company is selling their juices and smoothie through coffee stores, supermarkets and other

outlets. The owner of the company is Coca-Cola (a bit about us, 2021). They already are a big
brand with the name attached to it (Baporikar, 2021). They are selling their products in other
countries as well as in UK. It will be a little difficult for Farmy Freshness to sell their products
with such contemporary brand working along with them.
The Konings Juices & Drinks are in the market and providing the juices and other
beverages drinks. They are working on the strategy of providing their drinks all day. Their outlet
is open for 24hrs in a day. So this has helped them to increase their sells. This company is giving
strong competition to the contemporary brands.
10. Source of Funding
The Funds are the important part of starting any business. There can be many sources of
funding such as bank loans, peer to peer landings, government grants and subsidies, business
accelerators, angel and venture investors and personal investments etc.
 Bank Loans: These are the most commonly used source of funding by the new
entrepreneurs. The source of funds for the Farmy Freshness will also be Banks.
For that the company has to analyse the interests and different advantages that
banks are offering and then decide the best suitable bank for the loans. The banks
are providing the start-up loans to the new businesses (Nurjanah and Hasanah,
2021). For that the company has to generate a solid business plan that convinces
the bank. The advantage of bank loans are that theses are the easiest approach.
The interest that are paid on the bank loans are tax deductible. These loans can be
used as short term and long term financing. Also there is risk of penalty, it can
decrease the cash flow when the company has borrowed big amount as the loan.
 Peer to Peer Landing: Peer to Peer landing of money allows the entrepreneurs to
take loans directly from the individuals. Farmy Freshness is also using this as
their source of funds. They will borrow money from the friends, family and social
sites. For borrowing the money from social sites the company has to post the
financial profile with interest rate Farmy Fresh will pay. Then the company can
review the offers and accept the most suited proposal (Garg and Shivam, 2017).
The advantage of the Peer to Peer landing is that entrepreneur can access loans at

lower rates. The disadvantage of the peer to peer landing is that it has high credit
risk.
11. Intellectual Property Rights
The Farmy Freshness will be a juice manufacturer company. The company differentiate
itself from the other juice manufacturers with the new idea of using natural sweeteners in their
products without losing the natural taste of the juice. For protecting this business idea, the
company will apply for patent application (FERAUD, Kim and Kim, 2019). A patent is a
property right. It will be granted by the UK government. It will enable the Farmy Freshness to
prevent third party from using their invention. For getting the patent granted the company has to
fulfil a certain criteria. The criteria is that the claimed idea must not be disclosed before the date
on which the patent is filed. The claimed idea must be applicable and meet the criteria of food
and drink industry.
After fulfilling the criteria the Farmy Freshness can file the patent application. After
filing the application, this will be examined by the patent officer. If the examiner considers the
application that meets the important and necessary requirements, the patent will be granted and if
not examiner will issue a report that has details about the points that has raised issues (Protecting
intellectual property in the food and drink industry, 2021.). Then the company has to resolve the
issues.
Even after the grant of the product, it is important for the Farmy Freshness to review third
party rights. This can be done by requesting to the authorities. If any relevant patents are found
Farmy Freshness can consult the patent authority and this must be resolved as soon as possible or
this would restrict the Farmy Freshness to run their business.

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