Business Plan: Launching Healthyfi, an Online Grocery Store in UK

This business plan outlines the launch of Healthyfi, an online grocery store in the UK, capitalizing on the increasing demand for online grocery shopping. The plan details the business description, market opportunity, industry analysis using Porter's Five Forces, operational and management structure, marketing strategies including competitor-based pricing and social media promotion, and financial projections. Healthyfi aims to offer a wide range of quality products with a great online shopping experience, focusing on a customer-centric approach and cost leadership strategy. The plan also includes a market research section highlighting the growing trend of online grocery shopping and the influence of peer reviews on customer behavior. A PESTEL analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors impacting the business.

BUSINESS PLAN
BUSINESS DESCRIPTION / MARKET OPPORTUNITY
Entrepreneurship is a systematic process in which entrepreneur work effectively to manage their own business by taking risk and
initiative attempts in order to achieve profitability. The present report will be based in new business model start up company named
as Healthyfi and fresh food grocery store, UK. The company will provide various types of products such as cereals, rice and many
more. The study will design a business plan for this online grocery store a start up company.
Due to pandemic, people are more concerned about their health and prefer/ wants to purchase everything online without going
outside at physical store. People want to follow policies and rules made by government that is social distancing. Customers don't want
to spend more hours standing in a line for billing at counters (Thabit and Raewf, 2018). As more people are ordering products online,
this is a good business opportunity to small individual players who wish to start up their small grocery business online in order to
make customer base in the business environment. So it is the great opportunity to adopt and start new online business of grocery.
Healthyfi and fresh food grocery store is going to provide huge variety of products online-starting from bakery products, rice, cereals,
pulses, eggs, cheese, beverages to spices. Nowadays, online shoppers are showing interest in purchasing grocery online at reasonable
cost. This is the major reason behind opening a grocery store. In the past year, social commerce start-ups have reached at good
position as they provide fresh groceries to the doorsteps of customers. As per the industry reports and surveys taken during
pandemic, the grocery industry has almost doubled their profit at the time of lock down.
Mission statement- to provide wide range of quality service or products to customers with great online shopping experience.
vision statement- to be an independent and honest brand in which clients are able to make purchase from varieties of products at
affordable prices.
goals and objectives- Increase profits, sales and reputation- The major goal of the company is to sell products online and earn
good reputation in the grocery industry.
Organizational structure- The company is going to follow flat organisational structure because this is a start up company with
relatively few employees and management team but its goal is to have as little hierarchy as possible to manage business operations easily and
effectively.

INDUSTRY ANALYSIS
Basically it is a tool used by companies in order to increase the level of understanding of its position relative to other brands that produce
similar goods. It is essential for company to understand the forces at work so that they can make strategic planning. Industry analysis can be
beneficial for company to review the market situation, external factors that can impact business operations and development and growth of
company. the company will be using cost leadership strategy to differentiate it from others.
Market size- the market size of grocery market in the UK stood at around £205 billion in the year 2020.
Growth rate- In the upcoming year the industry is going to reach over £229 billion.
Porters five forces model- it is a model used by companies in order to identify and analyse different forces that can shape every type of
industries and help them to know about their strengths and weaknesses. By using this model, healthyfi and fresh food grocery store can easily
determine corporate strategy. With the help of this model, company's owner can enhance a long term stability and profitability which will help
them to gain competitive advantages.

Threat of new entry
No doubt anyone can start an online grocery store but it is necessary for them to keep track on new entrant in the market. As we all
know that new start up requires investments, customer service staff, marketing and user-friendly website where customers can buy
anything, logistics etc. In today's business environment new entrant is the biggest threat for businesses who is going to start newly
(Juliana and Nyoman, 2019). Although it is easy to enter the grocery industry and also it is very simple to be in competition with
others. This can be done through low switching costs, so the company is going to focus on cost to compete with others. Plus, to increase
customer satisfaction the company is going to invest and make efforts in customer experience from very beginning by providing them
user-friendly website and on time delivery and return of products.

Threat of substitutes
To be successful the company must do market research to know about substitutes products and price of that products. If the company will have
the option to forgo buying goods from other company, then healthyfi and fresh food grocery store power can be weakened. To attain success
and to deal with high threat company is going to focus on customer experience.
Bargaining power of customers
Nowadays, customer ability to purchase products or service is one of the most important factors that needs to be taken into consideration while
understanding about five forces. Basically, it is influenced by how many purchasers a company has, how much it would cost a firm to attract
more new clients in the market. It has been said that if the customer base is small in size they have more power to negotiate for lower prices
and deal in a better way. While on other hand, if the company has many customers than it will be easy for firm to charge higher cost in order
to increase profitability. So, Healthyfi and fresh food grocery store is going to run a customer centric approach in its online business which
helps the customers to chose high quality products and receive on time delivery at affordable price.
Bargaining power of suppliers
According to porter five force, suppliers can easily drive up the cost of inputs which can influence the business operations. It is
essential for company to have more suppliers than only they can enhance its profitability (Juliana and Nyoman, 2019). Healthyfi and
fresh food grocery store is going to work with various retailers to serve their customers. The company should ensure that all the
retailers must follow policies and rules laid out by the firm.

Competitive Rivalry
Name of competitor Differentiation
Whole food grocery
store
Use differentiation generic strategy by offering unique features
Masco express food
store
Innovation strategy which includes focus strategy
Vital grocery store Premium price strategy used by this store to gain competitive advantages
OPERATIONS AND MANAGEMENT TEAM
OPERATIONS

The company is sole proprietorship, it is a grocery store which sells all its product online with the support of online supply and distribution
channels. The process involved in it is proper planning, HR processes will be conducted, designing of products, manufacturing, safety and
maintenance. The supply chain management and inventory system will be used to manage stock at warehouses and to get them to customers
by transportation. The company will use supplies and equipment’s such as electronic devices, chairs, furniture, machinery, furniture, office
machines, hangers, shopping carts, racks and storage boxes. The company is going to use effective marketing strategy to generate revenue and
take support from investors by using pricing strategy to attract more customers and target audience.
MANAGEMENT TEAM
Name Skills What do they bring to the firm
Human resources team Managing priorities and coaching skills Skilled workforce
Accounts and management team Critical thinking skills and analytical
knowledge
Keep financial records
Operations team Time management skills and problem
solving skills
Minimize costs and risk management
Manage stock and inventory management
Sales and marketing team Communication and research skills Builds relationship with clients
MARKETING: with the help of proper marketing plan, the business can easily market and sell its products online and attract more
customers
Product- Healthyfi and fresh food grocery store is going to offer a great deals on products such as cereals, fresh food items, rice, sugar and
other grocery items for household.
Price- The company is going to follow competitor based pricing strategy which is one of the best strategy used by start up businesses.
By using this, the company can enjoy the benefits of economies of scale.
Promotional mix – in order to spread brand awareness among customers, the company is going to use social media platform
such as Instagram, you tube ads and Facebook as its promotional mix strategy (Lahtinen, Dietrich and Rundle-Thiele, 2020). To
attract more customers, the company also arrange marketing campaigns by offering deals such as buy 1 get 1 free. Also, it will
provide sale and discount coupons to attract more customers so that they buy their goods without thinking much.
Distribution strategy- the company will be using direct delivery to physical stores by vendors who are the suppliers and also the
customers can make purchase of groceries via its online website named as Healthyfi.com.

FINANCIALS
Sources of funds: The company is going to make investment of own savings or either take loan from commercial banks at affordable
interest rate.
Year 2022
Particulars January February March
Cash inflows
Opening cash inflow 5000 5500 6570
Sales revenue 10000 10200 10404
Other income 2000 2000 2000
Total cash inflows 17000 17700 18974
Cash outflows
Material 2500 1530 1560.6
Labour 2500 3000 3000
Other expenses 2500 2600 2704
Administration expenses 4000 4000 4000
Total cash outflows 11500 11130 11264.6

Cash deficit / surplus or
closing cash balance 5500 6570 7709
MARKET RESEARCH
Grocery store comes under the food retail industry provides food service facilities in order to satisfy the needs of customers. Likewise,
other industries such as hospitality industry, grocery and retail industry is also growing at fastest due to developing nations moving into a more
modern format of purchasing and selling food. This industry has great sales and revenue because of increased trend of technology and online
shopping for food and groceries. Online shopping is the most common way for people to get their products delivered at doorstep.
Peer influence impacts customer buying behaviour and expectations
Nowadays, customer trust their friends and family and relied on others experience to inform their experience related to shopping
(Christodoulou and Cullinane, 2019). Due to bad reviews, the customers can change their mind to purchase particular product and highly
influenced by comments and likes given by others people. This reliance on peer inputs have significant impacts on company's performance and
reputation.
PESTEL Analysis
Political factors- A small change in policies, rules and regulation made by government can influence the business operation of company.
It includes, taxation, interest rate, foreign trade policy, tariffs and labour law (Rastogi and Trivedi, 2016). So, company needs to focus on
changing rules of online retail and grocery business to grasp the opportunity given by government.
Economic factors- as we all know that this factor can directly impact the revenue of firm which includes interest rates, raw material
costs, unemployment etc. by understanding these factors company can know about the purchasing power of customer and make plan on the basis

of that (Thomas and et.al., 2021). Before implementing any new strategy it is advisable to focus on changing economic factors to gain
profitability.
Social factors- to be successful, it is essential to understand customer behaviour, social trends, culture and needs. Due to increasing trend
of using technology to replace staff members can impact the company. The rate of decreasing job opportunities can be a big threat for the firm so
it is suggested to provide job opportunity to people.
Technological factors- Due to changing trend in technology can influence the business operations it includes technical innovation,
technical awareness, supply chain management and many more. By using new technologies and plan properly for logistics and distribution
channels the grocery store can achieve success.
Legal factors- The company must focus on industry regulation, health and safety standards and customer law to run its business
smoothly in the market.
Environmental factors- nowadays, customers are more environmental conscious so it is essential for company to focus on ecological
factors, wastage management and maintain sustainability and adopt CSR system in the company (Achinas and et.al., 2019). It includes reduce
plastic, utilize renewable energy and provide eco-friendly services.

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