Innovation and Business: Organic Gift Shop Delivery by Drone

This article discusses the feasibility of an organic gift shop that delivers surprise gifts by drone up to 25-45 miles. It covers the value to customers, team credibility, and marketing mix. It also provides insights on segmentation, targeting, positioning, and business model.

Innovation and Business

Table of Contents
Overview.....................................................................................................................................1
Opportunity and value to the customers......................................................................................1
Credibility of a team and capability to execute...........................................................................1
Research and feasibility assessment for business case...............................................................2
Segmentation, targeting, positioning and Marketing mix...........................................................5
Business model and strategy.......................................................................................................6
REFERENCES................................................................................................................................8

Overview
Innovation and business ideas helps a business to grow at further level of success and
that is why, the present business idea is based upon the organic gift shop in which organic item
can be delivered through drone up to 25 to 45 miles. The present idea entirely based upon the
drone which have carrying capacity is 3 kgs. Moreover, during delivery through drones can
record videos and capture image which is a unique concept and it also has a capability of face
recognition and GPS tracking that assist to deliver the product to their respective locations.
Opportunity and value to the customers
During the pandemic, most of the business changes their business idea and introducing
innovative ideas in order to attract range of customers towards it. Similarly, organic gift shop is
the new business idea in which company deliver surprise gifts by drone in order to improve the
customer satisfaction level. Through this, company is able to enhance the customer retention and
in any special occasion, drone delivery capture happy moments of customers that generate the
lifetime memories. Shumaev and et.al., (2018) stated that trust is a primary predictor of
technology usage and it is a fundamental concept to understand the user's perception in modern
world. Thus, it can be stated that it helps to increase the customer's intention to engage within
drone deliveries. However, Benbrahim Ansari (2021) argued that cost saving is another
determinant of new technology and that is why, most of them invested upon new technologies
like automated drone deliveries that helps to save money and reduce extra labor cost (Why would
customer engage in drone deliveries?, 2017).
In the context of value to customers, the innovative idea is feasible because it helps to
save time of customers and that is why, it influences the preference and intention to use new
technology. Offering service in innovative manner will definitely assist to create a sense of trust
among customer so that it improve sales of a business. That is why, it can be stated that with the
help of current business idea, company is able to attract users and leave a positive impression
upon their mindset as well.
Credibility of a team and capability to execute
In the present business scenario, company hire experts who work in a team. This in turn
assist to build a trust among them so that company will access to bigger opportunities in near
future. There will be some departments such as IT, Research and development (R&D), finance
and operation that helps to execute the work and generate sales as well. Further, owner of a
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business should also ensure to avoid hiding things, transparency and provide realistic feedback
so that it cannot affect the business performance. Also, working in a team also requires faith and
trust so all the employees must possesses enough capabilities that ensure about smooth
functioning of a business.
Apart from this, skills like communication, interpersonal, critical thinking abilities, team
work abilities helps to execute the plan in effectual manner. Also, the entire workforce of an
organic gift shop must have an ability to work as a team so that different challenges can be
overcome which include financial constraint, delay in delivery of gift products etc.
Research and feasibility assessment for business case
Innovation and implementation of new technologies within business are assist to improve
the business performance and draw attention of many customers towards it. In this regard, there
are different ways to deliver surprise gifts to their customers in which drones are about to change
current industries. Thus, offering product in an innovative manner will assist business to grab
attention of many customers towards it. Therefore, to determine the feasibility, cash flow
projections has been used that helps to determine whether the new business is appropriate or not.
Particul
ars
Janu
ary
Febr
uary
Ma
rch April May June July
Augu
st
Septe
mber
Octob
er
Nove
mber
Dec
emb
er
Cash
inflows
Opening
cash
inflow 3500 4250
591
3
7587.
82
9273.
1988
1096
7.79
1267
0.15
14378
.77
16092
.01
17808.
13
1952
5.32
212
41.6
Sales
revenue 5000 5100
520
2 5306 5412 5520 5630 5743 5858 5975 6095
621
7
Other
income 1800 1800
180
0 1800 1800 1800 1800 1800 1800 1800 1800
180
0
2

Total
cash
inflows
1030
0
1115
0
129
15
14693
.86
1648
5.35
1828
8.19
2010
0.97
21922
.2
23750
.3
25583.
6
2742
0.29
292
58.4
7
Cash
outflows
Drone 400 0 0 0 0 0 0 0 0 0 0 0
Material 1250 765
780.
3 795.9
811.8
2
828.0
6
844.
62
861.5
1
878.7
4 896.31
914.2
4
932.
53
Labour 500 500 500 500 500 500 500 500 500 500 500 500
Other
expenses 1800 1872
194
7 2025 2106 2190
2277
.574
2332
928 2369 2463 2562 2664
277
1
Administ
ration
expenses 2100 2100
210
0 2100 2100 2100 2100 2100 2100 2100 2100
210
0
Total
cash
outflows 6050 5237
532
7.18
5420.
66
5517.
56
5618.
03
5722
.19
5830.
19
5942.
16
6058.2
8
6178.
68
630
3.54
Cash
deficit /
surplus
or
closing
4250 5913 758
8
9273 1096
8
1267
0
1437
8.77
16092 17808 19525 2124
2
229
55
3

cash
balance
In order to determine the external environment of a business, it is necessary to use Pestle
as a strategic framework model that help to identify the outer environmental factors which are as
mentioned below:
Political factor: The political condition of a country is stable and also have a proactive
government that support business to establish successfully (Achinas and et.al., 2019). Also, due
to pandemic, it will be more beneficial to introducing organic gift shop and deliver surprise gift
through drones. However, due to brexit, country somehow affected the business performance by
fluctuation in political factors.
Economic factor: The GDP and economic performance of a country is stable and that is
why, it will be more beneficial for the business to sustain the brand image. Also, customers are
also ready to invest money in innovative products and that is why, it aids to increase the
financial performance of a company.
Social factor: The factor deal with the changing perception of a people and that is why,
businesses are focusing upon smart and innovative ways in order to grab attention of customers.
Also, there are majorities of people whose standard of living is high, so the new business idea
will be more beneficial in order to gran attention. However, it will also use surprising MMS for
long distance relations in order to generate the best outcome.
Technological factor: There is good access to technology and have a quality innovation
skills among individual that support businesses to comply with advance technologies (Cooper,
2020). In regard to present business case, gift shop also uses advance technology i.e. drone in
which different features will be added like GPS, face recognition in order to provide innovative
service to their customers.
Legal factor: it deals with the laws that must be adhered by different companies. Such
that in order to run a business smoothly, it is necessary for the company to comply with
employment act, equal opportunity act. With regard to organic gift shop, it complied with data
protection act and offer necessary leaves that assist to smooth functioning.
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Environmental factor: There is a need to take care of environment and for that organic
gift shop adhere with sustainability act so that there will be no harmful gases and products will
be used that cause harm to environment.
SWOT analysis
Strength Weaknesses
 Offer only organic items
 Uses advance technology to deliver the
products.
 Helps to improve the customer
satisfaction level.
 Have experts that support business to
improve sales
 Fail to upgrade the products as per the
changing market need.
 Technical error might lead to wrong
gift deliveries.
Opportunities Threats
 Increase the branches lead to increase
sales by investing upon different
technologies (Taghikhah and et.al.,
2021).
 Comply with more advance technology
to grab attention of customer at
national level.
 Changing in legal factor affect the
business performance.
 Strong competition
 Changing perception of people might
ruin a business.
 Changes in advance technology lead to
affect the business performance.
Segmentation, targeting, positioning and Marketing mix
Segmentation:
As per the business idea, demographic segmentation will be chosen in which people will
be segmented in accordance with age, gender and income. Such that on the basis of age,
company segment youth who can easily invest upon new idea (Moon, Jalali and Erevelles,
2021). Further, in accordance with age, both male and female will be segmented, whereas on the
basis of income, middle class people will be segment so that business improve its sales.
Targeting:
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Concentrated targeting strategy will be used for the present business idea because it is a
unique idea that is designed for youths so that they deliver surprise gifts in unique manner
(Market targeting: Why it pays to differentiate, 2020). With the help of chosen strategy,
company is able to increase the brand loyalty and generate a long-lasting relationship with
customers.
Positioning:
Organic gift shop has a unique positioning such that it offer product through drone by
using GPS and face recognition system that helps to reduce the labor cost. Also, it will help to
enhance the overall business performance and gran attention of many customers towards it.
Marketing mix: Product: The company will offer only organic gift items to their customer by delivering
the same through drone at the respective addresses. Price: Company will uses penetration pricing style in which products will be offered at
low rate initially that helps to enhance the customer base (Mintz and et.al., 2021). Place: The new business will offered the service within UK and offer wide range of
products and services to their customers at local area i.e. by 25 to 45 miles away only. Promotion: In order to let people know about new services, company will use social
media marketing in which Facebook, Twitter and Instagram will be used that helps to
promote products. Also, SEO will be used in order to generate traffic that helps to attract
range of customers towards it. Process: The process of ordering surprise gift is simple and convenient such that anyone
can order the product through official website or can come directly to store. The payment
can be done through online and offline mode that helps to attract customer (Marcial,
2021). Physical evidence: Its official website, building, customers and people are recognized as
a physical evidence.
 People: The key people of organic gift shop will be employees, customers, suppliers,
technical experts.
Business model and strategy
Key partners Key activities Value
propositions
Customer
relationships
Customer
segmentation
6

 Angel
investors
 Suppliers
of raw
material
 Organic
shops
 Marketing
 Special
occasion
discounts

 Advertisin
g
 Quick
delivery
 Reduce
traffic
 Facebook
 Twitter
 Instagram
 Word of
mouth
 Youths
 Middle
class
people
Key resources Channels
 Drone
 Advance
technolog
y
 employees
 Internet
 MMS
 Online
dealing
Cost structure Revenue streams
 Product design cost
 Distribution cost
 Material
 Manufacturing cost
 Advertisements
 Subscription fees
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REFERENCES
Books and Journals
Achinas, S. and et.al., 2019. A PESTLE analysis of biofuels energy industry in
Europe. Sustainability. 11(21). p.5981.
Benbrahim Ansari, O., 2021. Geo-Marketing Segmentation with Deep Learning. Businesse. 1(1).
pp.51-71.
Cooper, R. J., 2020. Pestle and mortal: the demise of community pharmacy in the
UK. International Journal of Pharmacy Practice. 28(3). pp.205-206.
Marcial, V. F., 2021. Marketing mix de servicios de información: valor e importancia de la P de
producto. Bibliotecas. Anales de investigación. 11(4). pp.64-78.
Mintz, O. and et.al., 2021. The right metrics for marketing-mix decisions. International Journal
of Research in Marketing. 38(1). pp.32-49.
Moon, S., Jalali, N. and Erevelles, S., 2021. Segmentation of both reviewers and businesses on
social media. Journal of Retailing and Consumer Services. 61. p.102524.
Shumaev, V.A. and et.al., 2018, June. Innovative aspects of agritourism project management.
In SERVE 2017, Financial and Economic Tools Used in the World Hospitality Industry-
Proceedings of the 5th International Conference on Management and Technology in
Knowledge, Service, Tourism and Hospitality (pp. 241-8).
Taghikhah, F. and et.al., 2021. Shifts in consumer behavior towards organic products: Theory-
driven data analytics. Journal of Retailing and Consumer Services. 61. p.102516.
Online
Market targeting: Why it pays to differentiate. 2020. [Online]. Available through:
<https://blog.hurree.co/blog/market-targeting>.
Why would customer engage in drone deliveries?. 2017. [Online]. Available through:
<https://core.ac.uk/download/pdf/301371848.pdf>.
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