Business Development of Online Food Industry: Menulog Report Analysis

This report focuses on the business development of Menulog Pty. Ltd., a prominent online food delivery application in Australia. It begins with an executive summary highlighting the company's operations and the application of a business idea aimed at enhancing its business model. The report delves into customer problems, such as the shift towards e-commerce and the challenges of attracting customers back to physical stores. It explores innovative ideas like DIY and DIFM food delivery services to address these issues. A detailed discussion of the suggested business model, derived from Osterwalder & Pigneur (2010), is provided, along with an evaluation of its feasibility. The report also identifies key interrelationships within the business model, critical success factors, and potential risks and assumptions. The conclusion emphasizes the importance of the business model for Menulog's success, covering legal aspects, brand definition, and the efficient explanation of market and customer issues. The report also includes an appendix with the business model canvas.

Running head: BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
Business development of online food industry
(Menulog Pty. Ltd., Australia)
Name of the student:
Name of the university:
Author Note

1BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
Executive summary
The Menulog Pty. Ltd. is one of the leading food delivery application at Australia. It functions
through the Internet. This smart platform of e-commerce has its headquarters at Sydney. In this study
a business idea applied for Menulog to enhance its business. Here, a business model is illustrated
that is helpful to create, supply and achieve the values for Menulog. Furthermore, in this report
various ideas are generated and a discussion is made one the business model that is developed.

2BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
Table of Contents
1. Introduction:......................................................................................................................................3
2. Explaining of the different customer problems:................................................................................3
2.1. Problems to be solved:................................................................................................................3
2.2. Reason behind the innovation:....................................................................................................4
3. Discussion on the argument of the customer benefits developed through the idea:..........................4
4. Evaluation of the suggested business model:....................................................................................5
5. Determination of primary interrelationships in the business model:.................................................6
6. Critical success factors required to be managed during execution of the concept:...........................6
7. Understanding of various critical risks and assumptions:.................................................................7
8. Evaluation of the entire feasibility of the concept:............................................................................7
9. Conclusion:........................................................................................................................................8
10. References:......................................................................................................................................9
11. Appendix:......................................................................................................................................11

3BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
1. Introduction:
The Menulog Pty. Ltd. is a popular Australian beverage ordering and food ordering
application over the Internet. This effective e-commerce platform has been headquartered at New
South Wales at Sydney.
The new business model demonstrates the rationale of the way in which the business of
Menulog can develop, provides and gains the values. This is evaluated under financial, cultural and
additional contexts. The overall process of the modification and construction of the business model
is also known as the innovation of business. This has been forming an essential element of strategy
of business. The following study deals with the generating of ideas with illustrating the required
business model development that can be implemented to Menulog.
2. Explaining of the different customer problems:
2.1. Problems to be solved:
The first issue is regarding the customers who are found to be avoiding the center for storing
products. For, Menulog the consumers has been found to be shopping within the perimeter of the
store. This is at the cost of the categories of the center. This is an obvious issue that is weighed on
Menulog. Further, the consumers are found to be not focusing on different foods that are fit for
dieting. This is in terms of cutting the calories and fit as they has been once. Next, there is adaption
of the shift towards the e-commerce (Soon et al., 2019). Moreover, it is seen that various industries
such as the consumer electronics, games, appliances and electronics and additional household
products has been established firmly under the space of e-commerce. Nevertheless, the beverage and
food manufacturers has been slower for the up taking.

4BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
2.2. Reason behind the innovation:
Menulog has been not without its challenges. The tastes of the consumers has been fickle.
They are targeted with the proper messaging at optimal time and space that has been rousingly
essential. However, as the manufacturers has been looking inwards for finding the manners to be
more nimble and adapting the trends of consumers, various ways are found. These are found to be
more appealing to consumers and be more beneficial in the overall process (Zeng et al., 2017).
Nevertheless, Menulog has been struggling with luring the clients back to the store of the centre.
This also includes the seeking of the ways for developing the enticing products. This is regarding the
perimeter of the grocery store.
3. Discussion on the argument of the customer benefits developed through the
idea:
Various innovative business ideas that can be implemented on Menulog for customer benefits
involves the following.
DIY food delivery:
It is seen that the present online food delivery has been innovating on the conveniences. This
is because it has emerging ideas under subscriptions for the food boxes. It delivers all the aspects for
preparing the home-prepared meals, higher qualities and healthy food. Further, it can also involve
various aspects like shakes of meal replacements towards the high-end recipes. Thus one can focus
on various healthy scopes that are sustainable and local. This they can also eradicate the waste of the
foods (Savastano, Amendola & D’Ascenzo, 2018).
DIFM food delivery:

5BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
Here, the idea of the quick has been found to be modifying. This is because the DIFM
services of food delivery has been putting emphasis on fast and easy service that is local in nature.
This supplies the particular sub-groups of various tastes of restaurants. It has been coming from the
list of curated restaurants. Here, the services has been focusing on the various niche value
propositions. This involves the additional fast delivery of all the aspects. There are free delivery,
real-time tracking and specialty meal deliveries. Moreover, the scopes has been scratching the
surface that is probable to offer the appetizing, convenient and quick scopes. This can be kept up
with the latest demands of the consumers.
Understanding the reward failure:
Here, the innovation has been under greater risk and can face failure. This is true for the
innovators to celebrate and expect. However, the food industry has tended to reward the low-risk and
well-executed changes.
Investing in risk:
This indicates the undertaking of economic commitments as per the theses of compelling
investments. It has been marked as the different from conventional industry approaches. This is
makes the decisions of business on the basis of carefully calculated ROI (Minnens et al., 2018).
Again the conventional food processing industry has been finding it complicated to adopt the
actually powerful innovation. This s refuses the examining where the industry has been successful.

6BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
4. Evaluation of the suggested business model:
The new model illustrated in the Appendix section is derived from Osterwalder & Pigneur
(2010). The above study shows how the primary customers has been getting the products that can be
effectively implemented for Menulog. The customers of Menulog has been either facing the
groceries delivered and picking them up that the distribution facility or stores through a click-and-
collect service. In the new business model, there is indication of the place where the retailers has
been fulfilling orders. This is for the later livery for the customers. The shadow warehouse pickup
has been driving through the pickup of the time of savings (Mason & Vinatoru, 2017).
However, the new business ideas as discussed above can be deployed through the model. It
can be implemented to Menulog, keeping in mind that the absence of any personal contact can
damage the customer service efforts and marketing. Next, the shadow warehouse of the home
delivery has been including the features of time-saving and efficiency. This is costly for the
customers. However, the customer service level included has been making that comparative costly.
Again, the pickup approach of the store-based has been permitting the clients for picking-up the pre-
packed groceries (Yeo, Goh & Rezaei, 2017).
In this way, through deploying this business model, Menulog, can smoothly move their
business through Internet. Thus they can provide both home delivery and lick-and-collect delivery
from the stores. Lastly, there is store-based home delivery. Here, the picking through in-store can be
helpful for Menulog in been developing its popularity among various retailers due to availability,
costs and inefficiency.

7BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
5. Determination of primary interrelationships in the business model:
For the customers, the focus has changed to what and how the online grocery shoppers has
been buying. Again, the operations has been playing a vital role for finding the most effective
approach for deploying and developing the strategy that is customer friendly.
For Menulog, it can be useful for getting the service model suitable. Here, the pickup service
has been alleviating the hesitations for the shoppers to buying the fresh food over the Internet. Here,
they are able to check the quality prior leaving the point of collection (Shahin, Mohammadi &
Shahin, 2017). Moreover, the above outcomes has been indicated the trade-offs taking place between
the finding of the upfront of investing and savings in the long-term affectivity advantages
6. Critical success factors required to be managed during execution of the
concept:
The gap remaining between the relation between the customers and operations is fulfilled
through success factors. It is helpful to create distinct propositions of selling. Finally, it is useful to
win the trusts. Next, the customers of Menulog are required to be educated. Here, one of the
important finding from the new business model indicates how much shoppers has been not aware
that the service of online grocery has been existing. Then, it is helpful to win the trusts. Here, the
retention of the customers has been a primary issue for Menulog (Shangguan et al., 2018).
Moreover, the issue begins through decreasing the errors. This are never forgiven by different
already-skeptical clients. Since, the clients has been unable to touch the products present in the
online, they are uncertain about the quality. This has been often found to be wary of the various
inconvenience to get the refund for various defective products (Shajil, Mary & Juneius, 2018).

8BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
7. Understanding of various critical risks and assumptions:
In the new model, there are risks for both the brand of Menulog and the customers. Here, for
instance, time in transit can affect the safety of food for cold and hot items. Though the delivery
models has been providing the windows of one-to-two hour delivery, the store never has the power
on the time on delivery. This is reason why the packing of items for maintain the quality of
temperature is vital.
Through applying this new business model, with the third party shopper is involved,
Menulog can requires to rise the quality of the store level. This is to assure the smartest items that
are available. Apart from this, the packing is a vital element for product and food quality (Nestle,
2016). At last, the uncontracting partners can represent the store of Menulog. This has been
presenting the risk for safety and quality, Further this also indicates other businesses that has been
profiting off the name of Menulog.
8. Evaluation of the entire feasibility of the concept:
Feasibilities Discussion
Create and institute ideas First of all the idea in the new business model is helpful to institute
and create the processes for addressing ideas that are been
determined in analyzing the risks.
Undertaking robust
training programs
Next, the robust training programs are to be developed for the staffs
and the partners in adopting and learning the quality and safety
standards.
Deploying of detailed
supplier agreements
Further, detailed supplier agreements are to be deployed for
establishing the rules of liabilities and engagements (Salleh et al.,

9BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
2016).
Considering checks of
performing quality
Lastly, for considering the checks of performing quality for
assuring the agreements at service level are to be upheld. It can
involve various unannounced and announced safety of food with
operational analysis. This is useful to examine the standards that are
vital for Menulog’s brand.
9. Conclusion:
The above study shows how Menulog can effectively plan its business through the new
business model. This is important for the success of the business as the entrepreneurs. This has been
forming a legal entity and registering for various taxes. Further, Menulog can also set up the
business accounting and obtaining the needed licenses and permits. Further, it is helpful to gain the
business insurance. Nevertheless, Menulog has needed to define its brand. The above study is
helpful for understanding the efficient explanation of the market and customer issues. Then, the
persuasive argument of the benefits of the clients to be created through the concept is analyzed in the
study. Next, demonstration is made on the suggested model of business. Then the discussion and
identification is made on the primary interrelationships in the business model. The complex success
factors required to be controlled as the execution of the idea is evaluated in the study. Further, the
assumptions and critical risks are identified. Lastly, the entire feasibility of the concept is evaluated
that can be utilized effectively for Menulog.

10BUSINESS DEVELOPMENT OF ONLINE FOOD INDUSTRY
10. References:
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more
sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Mason, T. J., & Vinatoru, M. (2017). Ultrasonically Assisted Extraction in Food Processing and the
Challenges of Integrating Ultrasound into the Food Industry. Ultrasound in Food
Processing: Recent Advances, 329-353.
Minnens, F., Sioen, I., Lucas Luijckx, N., van de Brug, F., & Verbeke, W. (2018). Food industry
stakeholders’ perspectives on sharing information to prevent and detect food integrity issues.
In Belfast Summit on Global Food Integrity.
Nestle, M. (2016). Corporate funding of food and nutrition research: science or marketing?. JAMA
Internal Medicine, 176(1), 13-14.
Salleh, N. M., Ariff, M. S. M., Zakuan, N., Sulaiman, Z., & Saman, M. Z. M. (2016, May).
Attitudinal Factors Affecting Viral Advertising Pass-On Behaviour of Online Consumers in
Food Industry. In IOP Conference Series: Materials Science and Engineering (Vol. 131, No.
1, p. 012013). IOP Publishing.
Savastano, M., Amendola, C., & D’Ascenzo, F. (2018). How Digital Transformation is Reshaping
the Manufacturing Industry Value Chain: The New Digital Manufacturing Ecosystem
Applied to a Case Study from the Food Industry. In Network, Smart and Open (pp. 127-142).
Springer, Cham.
Shahin, A., Mohammadi, M. A. Y., & Shahin, A. (2017). Evaluation of factors influencing
performance of world class supply chains using structural equation modelling-with a case

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study in the food industry. International Journal of Procurement Management, 10(4), 514-
523.
Shajil, S., Mary, A., & Juneius, C. E. R. (2018). Recent Food Preservation Techniques Employed in
the Food Industry. In Microbial Biotechnology (pp. 3-21). Springer, Singapore.
Shangguan, S., Afshin, A., Shulkin, M., Ma, W., Marsden, D., Smith, J., ... & Mozaffarian, D.
(2018). A meta-analysis of food labeling effects on consumer diet behaviors and industry
practices. American journal of preventive medicine.
Soon, J. M., Krzyzaniak, S. C., Shuttlewood, Z., Smith, M., & Jack, L. (2019). Food fraud
vulnerability assessment tools used in food industry. Food Control.
Yeo, V. C. S., Goh, S. K., & Rezaei, S. (2017). Consumer experiences, attitude and behavioral
intention toward online food delivery (OFD) services. Journal of Retailing and Consumer
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review. International Food and Agribusiness Management Review, 20(4), 439-460.