Hungry: Business Plan for Online Food Delivery Service, Canary Wharf

This project presents a comprehensive business plan for "Hungry", an online food delivery service proposed for the UK market, particularly Canary Wharf, London. The plan begins with an introduction highlighting the roles of innovation and entrepreneurship in the business world, emphasizing Hungry's mission to provide quality food delivery at competitive prices. The main body of the report details the business description, including its location and collaboration with numerous restaurants. It then delves into a thorough market analysis, utilizing the STP model (Segmentation, Targeting, Positioning) to identify and understand the target customer base, which includes office workers and students. The industry analysis examines the competitive landscape, focusing on key players and marketing strategies. Furthermore, the plan outlines operational details such as premise location, transport links, and a summary of the enterprise. A SWOT analysis is provided to assess strengths, weaknesses, opportunities, and threats. Finally, the plan includes a discussion of financial requirements and concludes with a summary of the proposed venture and its potential.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business description.....................................................................................................................1
Background of the company........................................................................................................1
Market Analysis...........................................................................................................................2
Industry Analysis.........................................................................................................................3
Operations Detail.........................................................................................................................4
SWOT Analysis...........................................................................................................................5
Financial Requirements...............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation and entrepreneurship play significant role in business world. The term innovation
is defined to creation, development along with execution of a new service, practice, process and
product for improvisation of effectiveness and competitive benefit (Bhagavatula, Mudambi and
Murmann, 2017). Likewise, entrepreneurship is an activity to use innovation with the hope of
bringing ideas to real life. Hungry is an innovative business idea in the field of online food
delivery services. It is a proposed enterprise that aims to offer services to people at home and
offices with quality of food at comparatively low prices.
The report includes a business plan that highlight market analysis of the proposed venture. It
also includes industrial analysis, details of business operations, SWOT Analysis and financial
requirements of the entrepreneurial idea.
MAIN BODY
Business description
Hungry is the proposed enterprise whose entrepreneur is planning to tap fast food industry
of UK. Location of the business are at Canary Wharf, London, England. It is about online food
delivery service that have mission of providing its customers best delivery services of food in
London at short time duration. It collaborates with 5000 restaurants which means it provide a
huge diversity of healthy food.
Background of the company
The delivery food service is becoming very popular day by day. In UK, one of industry is
food industry that have seen huge growth in last few years. The business has been also increasing
around the world and people love to have their desired dishes at their door within the short
period of time. Hungry is particular idea generated along with inspired by the team to propose a
delivery food service to the customers. The business connects with restaurants along with
customers and is very competitive in the market as there are some other players already exist in
the market. It provides choice locations to customers so that they are able to obtain desired
flavours of adverse dishes. It is managed with growth of easy ways to access applications and
existing online food ordering processes of the company have attained trust across the globe.
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Market Analysis
It is all about quantitative and qualitative assessment of particular market. In other words,
entrepreneur conducts market analysis in order to study attractiveness as well as dynamics of a
particular market in specific industry (Gupta, Mithani and Guha, 2019). In context to Hungry,
market analysis is essential as to analyse needs of target market and connecting with customers
through offering them the products that satisfy their wants. Key customers of Hungry are office
going people that have needs for food services in limited time and of great quality. Along with
this, college and university students are also its customers that have needs for different taste of
items of foods at lower prices. Through its online food delivery service, Hungry will address the
needs of its customers. To conduct market analysis, entrepreneur of Hungry apply STP Model
that is a framework to analyse offering of entity and how to communicate values to specific
market groups. STP Analysis of Hungry is as follows:
Segmentation: It is a process to divide wider consumer group or business market that have
similar needs into subgroups on the basis of shared characteristics (de Paula, Alvares and de
Castro Rezende, 2018). Entrepreneur of Hungry have segmented the market of fast-food industry
on the basis of following:
Demographic segmentation: It is statistical data related to a group of people. In this,
market of Hungry is segmented as per as family situation, income, age, education, location,
ethnicity and hence forth. as information of the segmentation type is factual, it is easy for the
company to uncover through market research sites.
Psychographic segmentation: In this segmentation type, audiences and customers are
categorised by factors which concerns to their personalities (Carter, McCullagh and Kreider,
2016). For Hungry, market is segmented as per values, psychological influences, personality
traits, conscious and subconscious beliefs, priorities, motivation, attitude and interest.
Targeting: It is the element which breaks a large market in smaller segments for more
concentration towards particular group of customers in the audience. At targeting, managers
define a customer segment that is based on unique features and emphasis solely to serve them.
For Hungry, characteristics of target market are as follows:
Management of “Hungry” worked with effective planning for target wider market place. Key
characteristics of target market on the basis of certain attributes are as follows:
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Size: Hungry is a medium size business having employee strength of 100 to 150 people
that have connections with restaurants and knowledge about customer desires in food
industry.
Value: Values of Hungry are great as it creates a strong position in the market that helps
to increase our brand value and foster competition. It also offers additional services to make
working easy and meet desired experiences of customers.
Geographic location: Geographical location of Hungry includes people living in the
region of Canary Wharf, London, England. Moreover, having positive values to support
online food delivering business is also target market of Hungry.
Demographic details: Hungry targets people belonging to all age group and key focus is
on population between 18 to 50 years. Office going people, college and university students
are also target market of the proposed venture.
Positioning: The concept to associate as well as develop mental position within
consciousness of public for business and its offerings is known as positioning (Gråsjö, Karlsson
and Bernhard, 2018). It is a strategic process which comprises of devising an image of venture
within mind of target customer. In case with Hungry, some types of positioning to be employed
for building an image in target market are as follows:
 Pricing: It is one of factor which impacts on decision of customers. Entrepreneur of
Hungry position the venture in mind set of customers through charging a standard price
of £4. The cost of the service would be as low as possible to beat the competitors to make
penetration within the business environment.
 Convenience: It creates easier for target audience (Ferreira, Fernandes and Ratten, 2017).
Hungry will provide convenience to customers by delivering food items in the time of 25
minutes.
Entrepreneur, managers and other stakeholders of Hungry expects the market to grow
because it will bring new opportunities to expand and achieve success. Moreover, growing
market increases business efficiency, innovation along with productivity.
Industry Analysis
Industrial analysis is a strategy of entrepreneur to facilitate understanding about forces of
overall industry to make effective strategic planning. In case with Hungry, entrepreneur is
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planning to tap fast food industry with online food delivery service. In almost all industries,
competitive rivalry intensity is biggest determinant that reflects competitiveness of an industry.
Within fast food industry, key players are Deliveroo, Uber Eats, Delivery Hero and hence forth
that creates highly competitive rivalry for Hungry. All these companies have built their unique
position and have larger share in market.
To analyse the industry, entrepreneur apply Marketing strategies which is a framework to
look towards attractiveness and competition in an industry (Cunha, Benneworth and Oliveira,
2015). This include the main five stages:
Product strategy: This is related to effective food menu which are collaborative with
different restaurant, cafe and hotels. Their main product or service is related to provide effective
opportunities for the growth of business and make some effective stages to analyse different
concepts.
Pricing strategy: the price strategies for the respected company is very cost-effective
manner and helpful in managing different type of player in the market. All is related to make
price, marketing mix and work in analysing competitive theory.
Promotion strategy: They are doing major campaign and provide free food items in
number of outlets which actually help to promote in market. Further, they are providing more
discount and make sure to provide good quality of the food.
Place distribution: The company are able to work and provide relevant growth and
make provisions to the customer's satisfaction level. In Hungry, their management team are able
to work to deliver food through online platform.
Philanthropic plan: This is used by the company to work and manage their financial,
human and social plan. Which are the biggest asset for the company and make effective planning
process for the growth of company in near future.
Operations Detail
Operations are activities to manage inner working of business in order to run it in best
effective manner. In association to Hungry, operations details are mentioned below:
Location of premise: Location of premise of Hungry is Canary Wharf, London, England,
UK to offer variant services to encourage customers to pay attention towards it so to enhance
brand value addition to market share.
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Transport links: In case with Hungry, customers will get to the entity through smartphone
app as well as website (Devece, Peris-Ortiz and Rueda-Armengot, 2016). For the customers of
Hungry, an easy way to order and get food from a nearby restaurant could be done by the
website or through our dedicated app. This line of business is in charge of large number of
people, both directly and indirectly, from one side of the glob to the other. By implementing
online delivery, the enterprise will be able to reach the majority of their customers.
Details of premise: Hungry is the enterprise that will provide delivery services along with
order taking facilities with partnership to approximate 5000 restaurants that do not normally
offer delivery services. Through the app, target customers place and pay for an order that is
conveyed to participating restaurant and food are delivered with 25 minutes.
SWOT Analysis
It is strategic planning framework helps a business to identify its strengths, weaknesses,
opportunities and threats in context to competition or planning for future (Yunis, Tarhini and
Kassar, 2018). Mentioned below is SWOT Analysis of Hungry:
Strengths:
 Low cost: Hungry provides food at low cost
that attracts wider customer group towards
its services.
 Eco-Friendly: Its practices are eco-friendly.
Moreover, the transportation mode that
Hungry will use are bikes, scooters, hoover
boards and other human powered vehicles
that are more environmentally friendly than
other options.
 Fast delivery: Time which the enterprise
will take to deliver order is 25 minutes on
an average that is faster than other
companies.
 USP: USP of Hungry is providing a
network of dedicated couriers and an
ordering platform for customers.
Weaknesses:
 Poor management: Being a start-
up, Hungry do not have
professionals to manage the
business effectively.
 Lack of trust: Hungry is a new
business that lacks trust of wider
audience and fast-food market.
 Lack of advanced technology:
The organisation does not have any
advanced techniques and it sole
reliance is on service app to deliver
food items (Smallbone, Virtanen
and Sauka, 2016).
 Targets zonal restaurant: Hungry
only takes orders from restaurants
that are established within zone of
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 Location: In context to facilities or
locations, Hungry is intangible that permits
to avoid traditional taxes along with
employment fees.
customers.
 Increase in name of brand:
Presently, brand awareness of
Hungry is less and requires more
emphasis towards branding.
Opportunities:
 Increasing market: The market of fast
food is increasing and to tap in it is better
opportunity for the company.
 Chance to grab advanced technology: In
order to capitalise on food service market,
Hungry have opportunity to grab advanced
technologies such as Chatbots, search
engine optimisation and many more.
 Increasing people interest: With
increasing awareness about takeaway of
healthy food options, Hungry have chance
to improve its services as per increasing
interest of target audiences.
 Growing marketplace: Hungry sees
diverse opportunity in market as there are
huge potential customers. More services: The business must find
ways for incorporating additional services
in its operations.
Threats:
 Increasing competition: With
launch of Hungry, competition in
the industry is increasing.
 Brand value of rivals: Key rivals
of Hungry are Deliveroo, Uber eats
and many more that have strong
brand value.
 Rival’s charging lower prices:
There are various small businesses
in the industry that charges lower
prices than Hungry that is major
threat for it.
 Fewer customers: As target zone
is limited, there are few customers
of Hungry which is its biggest
threat.
 Enhancement in health conscious
people: Now a day’s, people are
becoming more conscious towards
their health so that are preferring
less outside food.
Financial Requirements
Finance is essential for all types of businesses (Plotnikova, Romero and Martínez-Román,
2016). Financial requirement for Hungry are as follows:
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Particulars Expenses (In £)
Premises Cost 2000
Cost of acquisition of delivery bicycles,
motorcycles and cars
40000
Cost of acquisition devices and furniture 3500
Insurance 1000
Hybrid Electric 2500
Maintenance of Cars 250
Cost of creating a website and app 500
Operational cost 80000
Marketing promotion 1750
Total 131000
Expected cost of sales for Services of Hungry are as follows;
Year 2022 2023 2024 Total
Orders delivery 13140 X 10
drivers
17520 X 15
drivers
26280 X 25
drivers
1051200
Price per
delivery £
4 4 4.5 -
Total £ 525600 1051200 2956500 4533300
Entrepreneur of Hungry is making plan to charge £4 per delivery in 2022 and 2023, while in
2024, it will charge £4.50 per delivery. It is expected to around 131400 orders charging £4 per
delivery to make around £525600 income in 2022. In 2023, it expects to deliver 262800 orders
charging £4 per delivery which means £1051200 income. In 2024, the venture expects to deliver
657000 orders charging £4.5 per delivery which means £2956500 income.
Gantt Chart:
Gantt chart for establishing and implementing activities of Hungry is underneath:
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CONCLUSION
From the information, it is concluded that Innovation and entrepreneurship are essential to
establish a business with new idea. Business ideas refers to a written document which entails
detailed information related to objectives, market analysis, swot analysis and financial
requirement. Through market analysis, entrepreneur look towards needs of specific market so to
targe specific subgroup with effective positioning strategy. Industry analysis facilitates
understanding of a venture for its position in relevance to rivals which produce and offer similar
products together with services. Operational details are termed to particular information of daily
working, tasks and activities to be carried out for achieving objectives. SWOT analysis provides
visibility of existing organisational status, letting managers to understand along with measure
entire performance of the enterprise. Financial requirements are estimated sum of financial
resources that are required for carrying out a plan or venture.
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REFERENCES
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Smallbone, D., Virtanen, M. and Sauka, A. eds., 2016. Entrepreneurship, innovation and
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