BUSM4052: Entrepreneurial Idea and Opportunity Development Report

This report analyzes the entrepreneurial idea and opportunities within the food and beverage industry, focusing on a hypothetical company named PoCo Company. The company aims to provide high-quality, innovative, and customer-centric food and non-alcoholic beverages, catering to diverse age groups. The report delves into PoCo Company's objectives, pain points, target customers, value proposition, and competitive advantages, demonstrating how they address industry challenges related to health, safety, and customer loyalty. It covers opportunity recognition, customer profile analysis, assumption testing, and entrepreneurial solutions, highlighting the importance of technology, sustainability, and customer awareness. By focusing on fresh ingredients, hygienic practices, and innovative offerings, PoCo Company seeks to build customer trust, enhance its reputation, and drive long-term success within a competitive market. The company plans to use technology, customer feedback, and market research to achieve its objectives. The report also discusses the cost-effectiveness and the importance of adapting to customer needs.

Running Head: Applied Entrepreneurship
Entrepreneurial Idea and Opportunity Development
Name of the University
Name of the student
Author Note

1Applied Entrepreneurship
Executive Summary
This paper aims to examine the Entrepreneurial Idea and opportunities of a particular
industry, which is the Food and Beverage industry. A hypothetical company that is PoCo
Company has incorporated and described the entrepreneur ideas and opportunities. This
company produces and supplies the food (meals) and non-alcoholic drink for all aged people
taking care of its customer's taste preferences, cleanliness, innovation, and quality of the food
and drink. It discusses objectives, pain points, solutions, target customers, sustainability,
technology, and awareness. Irrespective of facing current issues in the food and beverage
industry, this company is meeting its customer's demand through various tools and technology,
improving services and quality of the food based on health and hygiene, this impacted on sales
and customer-centric for the long term.

2Applied Entrepreneurship
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Opportunity Recognition.............................................................................................................4
Customer profile analysis............................................................................................................6
Assumption testing and validation...............................................................................................7
Entrepreneurial solution and Unique Value Proposition.............................................................8
Conclusion.......................................................................................................................................9
Bibliography and Reference..........................................................................................................11

3Applied Entrepreneurship
Introduction
The report discusses the problems, ideas and objectives that implement in a particular
industry. Considering the Fast-Moving Consumer Goods Industry is the Food and Beverage
industrywhich produces different goods. The Food and Beverage industry includes those
companies which deal with the processing of raw food material, packaging and distributing
them. It can be fresh food, prepared food, packaged food, alcoholic and non-alcoholic beverages.
Problems regarding safety and healthy food quality, ideas of deals with the problem and creating
something new and objective is to meet the sales and target customers need. Discussing with a
hypothetical company, namely PoCo, which supplies both food and drink to its customers. It is
a company that is rising as per the demand of the customer's needs and growing popularity in the
market for implementing business ideas and meeting its objectives. Irrespective of a growing
Company in the market, some problems are faced by the company, the pain points, suffering, its
ideas, opportunities, solution of the product and services, market, consumer, competitors and
technologies are discussed
Value proposition
The Value proposition refers to a promise made by a company to its customer to buy the
product. It is presented in the form of marketing strategy so that the consumer can buy the
product. The Food and Beverage industry promises its customer what they prefer to buy. This
company has the value for his customer and promises his customer for "Fresh Food and Healthy
Life" by supplying fresh food items through various renovation programs and increase the rate of
healthy life to retain its existing customer and attract a new customer.

4Applied Entrepreneurship
Discussion
Opportunity Recognition
The Food and Beverage industry is mostly facing challenges with declining customer
loyalty, sales, and safety in foods. Current issues that a food and beverage industry faced are the
health and wellness of the consumer by in-taking unhealthy, pollutant foods, low packaging, and
mislabeling of the product and price-fixing through unethical means. The industry has to increase
product quality to build loyalty on the product and the company. Customers cannot build trust in
the product it produces and its ingredients which it uses to make the product like water and
nutritious food. This factor reduces the sales of the industry. The customers get reduced due to
low-quality foods and unhealthy products which impacted the health and safety of the customer.
Customers are avoiding the store product centers due to unhygienic stored foods and cheap
packaging quality which are low freshness, natural and whole food ingredient uses. Customers
are focusing on diet food with healthy and clean packaging and hygienic labeling which will not
impact health. Nowadays, customers' requirement is consuming natural product rather than Meat
items because they consider the natural items to be more fresh and healthy than the meat-based
items (Pickard-Whitehead 2019). There is no traceability of the produced food, where there is no
involvement of any big brand and no understanding of where the source and foods were coming
in the market.The problems of PoCoCompany are related to the customer's trust, which affected
the sales of daily foods and beverages and a reduction in the rate of the customer. It happened
due to an issue of non-clean water products and un-fresh food, affected the quality of the
product. The problem will raised when there will be a reduction in the rate of the customer and
an increase in negative feedback.

5Applied Entrepreneurship
The pain point of the Food and Beverage Industry is associated with the problems of
the producing industry related to the quality, health, cleanliness, natural ingredient, slow
innovation, and diet-friendly food. These pain points suffered by the customer after consuming
the food and resulted in less customer-centric activities. The PoCo Company has declined in
consumer's trust, which impacted the company's reputation and suffered by its customers for
low-quality and high-rated food. It produced and low-quality non- alcoholic drinks it supplies. It
influenced the revenue generation of the company and its production.
The food and beverage industry is processing of raw food material, packaging and
distributing them to different companies or vendors and customers. The objectives of the Food
and beverage industry are to satisfy the needs of the customers- physiologically, psychologically,
socially and economically (Kimmel 2018). Physiologically is a need to taste different food
varieties. Socially, defining a need for friendly environment. Psychologically a need to increase
the dignity and financially is satisfying the cost of investment to Food and beverage services
(Conte 2018).It provides professional, hygienic, attentive and high-quality service on foods and
beverages. Industry offers a friendly and welcoming environment and pays value for money. It
retains the existing customer and adds new customers to increase the business. The objective of
PoCo Company, to enhance the quality of foods and services and to make the use of food,
healthier to its customers. The company wants to inspire its customers to live a healthier life.
They ensure a long term success for its company's growth and to become a leader who
contributes toward a positive and distinctive experience for a future customer. Company plan to
become a consumer choice and wellbeing.

6Applied Entrepreneurship
Sustain, viable and feasible of product and service, Food and Beverage industry has to take
the initiative to build the trust of the customer by promoting the product, to use the healthier
substance in the product. The industry has to be aware of processing the product that will be non-
polluting, cost-effective, protect the quality of the resource and conserve non-renewable energy
and natural ingredient, and use of effective environmental packaging which are safe for the
workers and consumers (Weber 2019). Industry must introduce a new idea to attract customers
through its innovative product and components. It must include the healthy substance, meat-free
items, sugar fewer items or minimize the use of sugar, long term development of product and
innovative, renovation of the product, and quality (Pickard-Whitehead 2019). Cost-effective for
the customer and company by reducing the operational cost.ThePoCo Company has to promote
its Food and drinking quality and use of a good substance to attract the customer. It has initiated
the process for the customer to build a good relationship, pollution-free product, use of more
vegetable products rather than the meat substance, daily supply of fresh items. This company has
spread awareness about its initiative and introduction of new items of food and drink,which
delight the customer's for taste and preference and health. It will gain faith of the customer and
benefit from cost-effectiveness.We have not in-texted here?
Customer profile analysis
Target customers are those customers who can consider what the company is supplying
based on its price, quality, and resources. Understanding the target customers will make a clear
marketing strategy for the company to implement on those customers so that they can get the
opportunities to purchase. The target customer for the Food and Beverage industryis to have
fresh, healthy, and cost-effective food. It includes people who can afford the price of the items
and by its brand value, it can increase the target customers from various locations of different

7Applied Entrepreneurship
age groups (Allemandi et al. 2018). Industry has to be specific regarding whom to sell the
product. Checking the demographic, sociological, economic, psychographic, behavioral and
attitudinal characteristics will help to identify them. PoCo company produced vegetarian and less
non-vegetarian items for its targeted customer and categorized its product into teenage (10 -
19years), adults (20 -60years), and old age(60year above). The demographic region will be from
the Australian region and the local area. Like it supplies healthy dinner, lunch, and breakfast and
evening snacks for all ages with special rates and healthy drinks for all the sections. The
psychographicincludes all classes of people from moderate to high. Sociological offering to
families and communities, economical it categorized into two, high and medium but mostly it
works on the medium class families (earning $100,000 yearly) and the individuals.
Behavioralsegment is divided into knowledge, attitude and feedback from the customer. By
making the customer aware of the food, the company supply is healthy, consisting of ingredients
mostly related to mostly fresh vegetables and less fresh organic.
Assumption testing and validation
The problem is linked with the pain point of the Food and Beverage industry and
customer, market and increase in the competitor's rate. The Solution for the issue will reduce this
problem creation. Improvement in technology will increase the rate of awareness and promotion
rate.The problems of the PoCo company is solved through using healthy ingredients and use of
quality items, this impact in the market to build the company's trust and gain customer
relationship. Through various technology and awareness in social media will help in the
company's growth and increasing competition in the market.

8Applied Entrepreneurship
The technology tools used by the Food and Beverage Industry are Modern ERP Solution,
consumer relationship management, human capital management, Warehouse Management
solution, supply chain management and cloud deployment (AKINTELU, IREFIN, and
AKARAKIRI 2017).The PoCo Company uses the technology of supply chain management,
which incorporated various networks to work with this company for production, uses Product life
cycle management, which helps in innovation, packaging, a new choice of food items and taste
preferences. Building customer relationships through the internet and website (Bresciani 2017).
The PoCo Company should be aware of economically related to its cost and accessibility
regarding the cost of the product and the choice of food quality. Socially associated with the
family and friends,the industry should be aware of its food quality, packaging, safety and
labeling, which attract the customer. The company focus on consumer demand, good quality
food, improve service and follow the government policy by branding the company through
proper packaging and labeling the items, increase the market strategy through promotional
advertising, emails, blogging and social media (Kanter et al. 2019).
Entrepreneurial solution and Unique Value Proposition
PoCo company uses ideas to increase the customer from a different location but primarily
focusing on the local area. It incorporated the idea of meal delivery, catering and innovating new
foods and non-alcoholic drinks (Crampton 2019). It has a legal advisor to help sort the legal
issues and financial representative to guide based on the cost-effectiveness of the company. Uses
feedback and survey to analyze the company's reviews from its customers. The opportunity is the
target customers and innovative items. The PoCo company currently increasing customers due to
its innovative food items and improve the quality of the food items it produces.

9Applied Entrepreneurship
If I were to start a business, the opportunity cost would be $ 1,000,000 for the investment
in the business. If I do not start the business, the next best job for me to join a reputed
organization and lead as a marketing head. I would have earned an amount of $ 160,000 per
annum.
The unique value proposition the company has to implement is to disclosing the
ingredient, organic spices, herbs, vegetables and meat items it uses has to be fresh and clean
drinking water they supply to the customers (Brainard and Hunter 2016). Improve the service by
approaching every targeted customer through feedback and survey, improve the technological
tools more effectively to increase the sales and trust of its customers.
Conclusion
However, from the above discussion, it can be concluded that the Food and Beverage
industry should focus on the market condition and the requirement of customers. Industry has to
categorize its customers (like the old age, adult age, teenage) to meet its objective to increase the
company's revenue, profit and trust of its customers, instead of considering the bulk customer or
all the customers. Industry has to consider the pain points of the customer regarding the quality,
preference, taste and hygienic food and drink it serve. Company must find out the solution for
the same to sustain in the market in the long run.It can be done by introducing innovative ideas
to maintain in the market by healthy food quality supply, innovation of food (toast on vegemite,
burger with lots of veggies, creative chocolaty desserts and fruit desserts) liked by the most
target customer. Here, PoCo Company drives its ideas and opportunity on the current problem
going on the food and beverage industry which reduced the customer and thus impacted the
business. However, initiatives are to be taken on healthy food-supply to its targeted customers as

10Applied Entrepreneurship
per their age, locations, taste and preferences. Maintaining hygiene factors to retain the customer
and to attract the new one by introducing the innovative food and dessert, like in meal they
provide additional sweet dish or dessert to please the customer as per their tastes and adding
special dish food for every customer during lunchtime. Implementing all the above will increase
the wealth of the company by serving the customer's requirement, trust with good quality food
and services.

11Applied Entrepreneurship
Bibliography and Reference
11 Highly Effective Marketing Strategies For A Food & Beverage Business (2017). Available at:
https://www.designhill.com/design-blog/11-highly-effective-marketing-strategies-food-
beverage-business/ (Accessed: 16 March 2020).
8 major challenges facing the food and beverage industry in 2016 (2016). Available at:
https://www.fooddive.com/news/8-major-challenges-facing-the-food-and-beverage-industry-in-
2016/411408/ (Accessed: 16 March 2020).
8 technologies for the food and beverage industry (2020). Available at:
https://www.foodprocessing.com.au/content/materials-handling-storage-and-supply-chain/
article/8-technologies-for-the-food-and-beverage-industry-1275250813 (Accessed: 16 March
2020).
AKINTELU, S.O., IREFIN, I.A. and AKARAKIRI, J.B., 2017. INFORMATION AND
COMMUNICATION TECHNOLOGIES AND PROJECT PLANNING IN THE NIGERIAN
FOOD AND BEVERAGE INDUSTRY. Journal of Global Economics, Management and
Business Research, pp.52-59.
Allemandi, L., Castronuovo, L., Tiscornia, M.V., Ponce, M. and Schoj, V., 2018. Food
advertising on Argentinean television: are ultra-processed foods in the lead?. Public health
nutrition, 21(1), pp.238-246.
Brainard, J. and Hunter, P.R., 2016. Contextual factors among indiscriminate or large attacks on
Food or water supplies, 1946-2015. Health security, 14(1), pp.19-28.