Developing a Plant-Based Meat Range: Industry Market Organization and Financial Feasibility

This report discusses the development of a new business concept of a plant-based meat range called Viva Vegan. It outlines the key components of the business, including target market and assesses the industry, market, organizational and financial feasibility of the business concept. The report also provides ways to mitigate potential risks associated with the business concept.

Entrepreneurship
and Business
Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explaining the new business concept .........................................................................................1
Industry Market Organization and Financial Feasibility ...........................................................2
Value chain and business model canvas for the giver business .................................................5
Mitigation of Potential risks .......................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The process of crating a new enterprise is highly challenging and includes several aspects
which increases the complexity of the process (Ayob and Saiyed, 2020). The present report
includes development of a new business concept which. The business concept sleeted for this
report is of plant based meat range. This report outlines the key components of the business
including target market and assesses the industry, market, organizational and financial feasibility
of the business concept. Value chain and business model canvas is applied to the proposed
business concept. Ways to mitigate potential risks associated with the business concept are
provided in this report.
MAIN BODY
Explaining the new business concept Product Description: The new business idea is of developing a plat based meat range by
the name of Viva Vegan. This will be a vegan meat range developed by scientific cruelty
free methods offering plant based meats products which include plant based meats with
similar taste , nutritional composition and texture to mutton, chicken, horse meat, lamb
meat, veal, pork, beef, and venison. Special Attributes: The plant based meat products offered by Viva Vegan will be offered
in sustainable packaging which is the special attribute of this business concept,. This will
allow consumer to purchase their products in sustainable manner and complete their
environmental responsibility. Target market: Low income consumers who want to consumer sustainable products are
the target market for Viva Vegan. In addition to this vegetarian and vegan restaurant
chains are another target market as they require plant based meat products. Scale of business: It is important to determine appropriate scale of business as it affects
profitability and initial success (Dvouletý, 2017). The scale of business will be medium
sized as it will lower financial risk of the business while also help satisfy maximum
number of consumers before reaching industry leadership. Management will also be
easier because of the medium size of the business and the company will cater to
consumers in UK.
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 Location: The primary location from where the products of Viva Vegan will be sold is
online website and retailers. In addition to this physical retail chains are another viable
option for selling the plant based meat range as most consumers conduct their grocery
shopping from such stores. Who will be involved: The food scientist and nutritions will help in accretion of the plan
based meat products. Sustainable suppliers and IT employees handling automation of
product development process will be the key stakeholders of their enterprise. In addition
to this supermarket and retail chains, both online and offline will also be an important
stakeholder in reaching the target consumer base.
 Rational behind introduction of plat based product range: The primary reason behind
selection of pant based meat range as the business concept is the rising awarenesses about
health and environmental benefits of plant based meat products over factory produced
meat products. This is depicted by the increase in number of vegans in UK by 445,428
people which equals to 40% in the year 2019-2020. Vegans and vegetarians are going to
be quarter of British population by the year 2025. Research by Mintel states that sale of
meat-free food across the UK have grown by 40% from £582 million to an estimated
£816 million in 2019 (Plant based meat: an industry full of potential, 2021). This
statistical information showcases the high growth potential of the plant based meat
industry. Investing in the plant based enterprise in the early stages of the industry will
provide success as the plant based meat industry grows.
Industry Market Organization and Financial Feasibility
PESTEL analysis
 Political Factor: The primary political factor which affects business firms in the plant
based meat industry is the decision taken by World health Organization to classify
processed meat as Group 1 Carcinogen alongside tobacco and coal tar pitch (Fichter and
Tiemann, 2018).
Positive Impact: The positive impact of this stance of leading international health institution is
that it helps promote vegan lifestyle.
Negative Impact: The negative impact of this factor is that it may influence large scale meat
producers to retaliate and take illegal measures to curb competition from vegan meat producers.
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 Economical Factor: The low economic health of UK because of the COVID-19
pandemic affects growth of UK plant based meat industry (Galvão, Ferreira and
Marques, 2018).
Positive Impact: The COVID-19 and economic downturn has made consumers more
environmentally aware. This has positive impact on sales of plant based meat products.
Negative Impact: The economic downturn in UK dissuades consumers from purchasing highly
priced products such as plant based meat products.
 Social Factor: The social factor of increasing tend of health conscious eating affects the
growth of plant based meat industry.
Positive Impact: As vegan meat if more beneficial for health than processed meats, this factor
will increase sale of the company.
Negative Impact: Since plant based meats is lower in protein than actual meat it may dissuade
consumers with protein based diets from purchasing vegan meat products.
 Technological Factor: The scientific development in building and preparing tasty vegan
alternatives to meat products with similar texture and taste affects the growth of the
industry.
Positive Impact: Continuous development in food technology will enable business in the vegan
meat industry to regularly improve the quality and diversity of their meat based products.
Negative Impact: The technology for producing plant based meat is not common and can be
expensive for small businesses entering this industry.
 Environmental Factor: The rising environmental awareness impacts the sale and growth
of plant based meat products.
Positive Impact: The positive impact on Viva Vegan is that it will influence consumers to
purchase affordable vegan alternatives rather than purchasing processed meat.
Negative Impact: Viva Vegan can face high competition in the future because increasing
lucrativeness of the vegan meat industry due to rise in environmental awareness.
 Legal Factor: This factor of the PESTEL analysis looks at legal forces which can impact
success of the company (Galvão and et. al., 2020). Patenting vegan meat formula is
highly essential for small business firms in the vegan ,eat industry as it can be copied by
multinational retailers. This legal concern impacts Viva Vegan.
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Positive Impact: The positive impact of this factor is that using IP protection methods such as
patent and trademark can help Viva Vegan gain success from their vegan meat formula.
Negative Impact: The negative impact is that gaining IP protection tools is highly time
consuming and complicated process.
Porter's five forces analysis of meat based industry:
This analysis is a technique for identifying competition of a business. It aims to identify
the effect of five forces that is competitive rivalry, supplier power, buyer power, threat of
substitutes,and threat of new entrants which extracts everything from a particular organization
and then it will be used to recognize the competitive strength and the attractiveness of an
organization in terms of the profitability. These five forces are explained in detail below:
1. Bargaining Power of the buyers :
In this force, buyers have more power to demand lower price or higher product quality
that is upto what level customers are able to put the whole company under the pressure and
customer has a lot of power when their bargaining power is strong (He, Gan and Yuan, 2019). In
context to the meat based industry the bargaining power of suppliers is low. This is because of
large number of suppliers who offer same quality products at similar prices through which buyers
may switch to the other variety of food as they have more choices.
2. Bargaining Power of suppliers :
This implies the strong bargaining power which allows the supplier to sell high priced or
low quality raw materials to their buyers (Ma and Guo, 2021). The increment in the supply
capacity makes it daring for the suppliers for the victorious growth of the company or any
organisation. In context to Meat based industry, bargaining power of buyer is high. This is
because of the competition of vegan companies in the market who could manufacture and
distribute the vegan food like beyond meat.
3. Threat of New Entrants :
This force regulates how simple or not it is to enter a specific industry. New entrants
bring new range and wish to obtain market share and also at the same time it affects the
company's power. In case of meat based industry, threat of new entrants are high. This is because
the world is directing towards the healthy eating so this industry will surely have more
competition as a substitute product may come from outside the industry.
4. Threat of substitute products :
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This force is focusing on the substitutes. It is specially threatening when buyers can easily
find alternative product with good prices and better standard products (Altieri, Silva and Terabe,
2020). Also when buyers can move from one commodity or service to the other with a low price.
In context to meat based industry, threat of substitute products are low. This is because of the
brand loyalty and very affordable price of the product.
5. Rivalry amongst existing competitors :
This force is the main factor of how competitive and profitable an industry or
organization is. And this force is used to decide how extreme the current competition is in the
market. In case of meat based industry, rivalry amongst existing competitors is high. This is
because of biggest competition of food industries in the market. As industries like impossible
foods in the market who has same motive of providing plant based meat substitutes and healthy
food in the market.
STP analysis
 Segmentation: The primary consumer segment for Viva Vegan is based on psycho-
graphic segmentation which includes environmentally conscious consumers. Psycho
graphic segmentation involves dividing consumers on the basis of their lifestyle choices
(Komarova and et. al., 2019). The second consumer segment for Viva Vegan is based on
demographic segmentation which includes consumers with low income backgrounds
who are looking for affordable vegan products. These consumers are beneficial for Viva
Vegan as the company fulfils their requirement of getting vegan meat range at low price.
They will provide high profitability to the company. In addition to this another consumer
segment based on demographic segmentation is young consumer segmentation. This is
because statistical data shows many young consumers are adopting vegan lifestyle. 38%
of young adults say that they have sustainability concerns about meat production. In
addition to this 70% of global population is reducing meat consumption or leaving meat
consumption (Data Shows Major Rise In Veganism Among Young People, 2020).
 Targeting: The target consumer base for Viva Vegan is the low income environmentally
conscious consumer. This consumer segment is identified through demographic
segmentation technique. This consumer base is suitable for the company as they will not
be able to switch to higher prices competitor in the vegan eat industry. Vegan and
vegetarian eating establishments are another target consumer base for Viva Vegan. This
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is because they require healthy plant based products at bulk quantity. The most profitable
target consumer base for Viva Vegan are young consumers. The reason behind this is that
in the last decade half of growth in veganism among British population is of consumers
between the ages of 15-34 (The unstoppable rise of veganism: how a fringe movement
went mainstream, 2018).
 Positioning: The positioning of Viva Vegan will be of affordable plant based meat
provider with maximum sustainability. The sustainable packaging of the company and
competitive pricing strategy adopted by the fir contribute to creation of this type of brand
perception. This positioning is beneficial for the company as it will help the firm attract
large number of consumers as their products will be of higher quality, low price and
better sustainability. The positioning of the firm will be to attract young consumers with
focus on building strong digital identity which resonates with young people. This is
because young people and consumers are at the forefront of veganism and are more
comfortable with shifting their diets for betterment of the environment (Lounsbury and
Glynn, 2019). Viva Vegan will be able to gain loyal young age consumers because of
this positioning.
Vision: To become industry leader ion vegan industry and be capable of serving global demand
for delicious vegan meat products.
Mission: To create delicious plant based meat products which deliver indistinguishable
experience to consumers from processed meat products.
Marketing Strategy
 Product: The product is wide range of plant based meat products which provide same
taste and texture when compared to actual meat products. This includes plant based
alternatives for various meats including mutton, chicken, horse meat, lamb meat, veal,
pork, beef, and venison.
 Price: Competitive pricing strategy will be adopted for plant based products by Viva
Vegan. This strategy involves considering price of the competitors in setting the pricing
strategy of the company. Viva Vegan will be able to utilize this strategy to gain
competitive advantage and position themselves as best affordable choice for vegan meat
products.
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 Place: Viva Vegan will be selling their products through own company website and the
products will also be present tat major offline and online retailing stores. Viva Vegan will
be able to reach large number of consumers with this marketing decision. Promotion: This element of the marketing mix looks at promotional tactics adopted for
increasing consumer curiosity (Lumpkin, Bacq and Pidduck, 2018). Digital marketing
strategy will be created to connect with young consumer base and create brand
awareness. This is beneficial for Viva Vegan as it will help the company connect with
target consumer base creatively at low costs.
Market Growth strategy
The market growth strategy adopted by Viva Vegan will be market development. This
involves introducing existing vegan product range of the company in different markets. This will
helps the company different markets in EU with high growth potential for vegan product range
early and gain rapid success in different markets. The market development strategy is also
beneficial as it helps the company lower reliance on business cycle of single market.
Value chain and business model canvas for the giver business
Value Chain Analysis
Primary Activities
Inbound Logistics: This primary activity involves resourcing warehousing and inventory
management (Neumeyer and et. al., 2019).Viva Vegan will acquire plant based proteins such as
soy potato protein and pea protein from sustainable suppliers who provide quality ingredients at
low price. This will help the company lower costs while also offering high quality products in a
responsible manner.
Operations: The operations at Viva Vegan will be heavily automatized. This will lower
production costs and also ensure responsible manufacturing of products as unethical labour
practices will not be involved.
Outbound logistics: This involves shipping products to various retail stores and delivering
online orders. For this, Viva vegan will be using services of third part logistics as they are
experts in their field and ensure timely deliver of products. Tome deliver of products is also
necessary as Viva Vegan offers perishable products and delivery of fresh products is essential for
increasing consumer satisfaction.
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Marketing and Sales: The promotional and advertising activities of the company are
described in this part of the value chain analysis (Paoloni and et. al., 2020). Digital marketing
strategies such as social media marketing and content marketing will be used to promote Viva
Vegan products. This is because digital marketing is highly effective to connect with vegan
consumers and promote products with low investment.
Support Activities
Human Resource management: This value chain activity at Viva Vegan involves
attracting and retaining talented employees to fill senior management roles and IT positions. This
is because heavy automation does not reduce role of talented staff in ensuring success of the
company.
R&D: Viva Vegan will focus their R&D department on improving manufacturing
processes and making breakthrough in development of other vegan non-vegetarian products such
as seafood. This will help the company diversify their product portfolio quickly to gain
competitive advantage.
Business model canvas
 Consumer segment: Demographic consumer segments for Viva Vegan are low-income
environmentally conscious consumers and young age consumers between the ages of 15-
30. Psycho graphic for the enterprise are environmentally conscious consumers whoo aim
to live responsible lifestyle.
 Value Proportions: The value proposition of the company refers to the value promised
by the company which will be given to the consumer (Ribes-Giner and et. al., 2018). The
sustainable and affordable vegan meat range offered by the company is the main value
proportion of the firm. This distinguishes the firm from other vegan meat companies as
the products are given at affordable price. This acts as pain reliever for low-income and
young age consumers wish to purchase sustainable products at low prices.
 Revenue Streams: Online sales and retail sales of the products are the two revenue
streams of Viva Vegan.
 Channels: The company will distribute their products through online as well as offline
channels. Online channels include own brand website and online retail firms. Offline
channel includes nationwide retail chains who will be supplied the Viva vegan range to
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reach large number of consumers. This type of Intensive distribution strategy will ensure
rapid growth of the firm.
 Consumer relationships: Social media internation will be used for building consumer
relationships by Viva Vegan. In addition to this, a dedicated consumer service line will be
created for solving consumer issues and queries. This is an effective decision as social
media provides opportunity for direct internation with young age consumer segment to
gain loyal conquers.
 Key activities: This refers to the main activities conducted by the firm for delivering
finished product to the consumer (Tien and et. al., 2019). The main activities at the
company include production of plant based meat range using sustainable ingredients,
packaging products from sustainable material and ensuring that third party logistics
deliver the products in timely manner. In addition to this social media marketing are
another important activity of the company.
 Key resources: The main resources of the company are ingredients used for producing
plant based meat which include pea protein, potato protein, human resources overseeing
automatized production and financial resources.
 Key Partners: The retail partners who will be supplied own brand vegan meat range to
reach large number of consumers, suppliers, employees and third party logistics are key
partners of the company.
 Cost structure: Proportions of fixed and variable costs are included in this part of the
business canvas model (Vuorio, Puumalainen and Fellnhofer, 2018). The primary costs of
the company will be used in maintaining automation technology for timely
manufacturing, supplier costs and gaining services from third party logistics.
Mitigation of Potential risks
Financial Plan
Budget
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Cash Flow
10

Risk Register
RISK SEVERITY RESPONSIBILITY MITGATION AND
CONTINGENCY ACTIONS
SCORE
(out of 10)
Logistics risk High Logistics manager Viva Vegan will use
advanced technology to track
products and ingredients in
real time. This is helpful
action as it will enable the
8.5
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company to respond quickly
to any logistical problem and
deliver fresh products to
every consumer increasing
positive consumer experience
(Tipu, 2017).
Intellectual
property
rights
protection
Moderate Viva Vegan will utilize non-
disclosure products when
supplying their products to
retailers and collaborating
with investors to protect their
intellectual property. NDA
are an effective way of
protecting intellectual
property as firms can take
legal action upon
infringement of agreement.
5
Cyber
security risks
Low The company will invest in
partnering with cyber
security company to protect
from cyber crime. It is
important to gain protection
against cyber crime to
mitigate against the risk of
leakage of sensitive
information (Rank, and
Strenge,2018).
2
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CONCLUSION
From the above report it is determined that the process of developing anew enterprise
involves considering various factors such as marketing, plan analysing competitors. In order to
gain success in the corporate world with new business idea requires conducting macro
environmental analysis with PESTEL and understanding competitive landscape with Poter's five
forces analysis. Development of marketing stagy with marketing mix, identification of target
consumer and brand positioning with STP analysis helps businesses gain success. Value chain
analysis and constructing business canvas is also essential for understanding different aspects of
the business such as HRM activities and key partners of the enterprise. Risk of developing an
enterprise can be identified and mitigated with the help of risk register which helps determine
severity of risk and take action accordingly.
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Online
Data Shows Major Rise In Veganism Among Young People, 2020. [Online] Available through
<https://plantbasednews.org/opinion/major-rise-veganism-young-people/>
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