Business Plan for Organic Herbs: Market and Competitive Analysis

This report details a business plan for Organic Herbs, a UK-based company specializing in herbs, spices, and botanicals, planning to launch healthy, ready-to-cook soups. The plan includes an overview of the business idea, emphasizing the company's mission to promote a healthy lifestyle. It analyzes the external environment using PESTLE factors, evaluating political, economic, social, technological, legal, and environmental influences. The report also discusses the competitive landscape, highlighting Organic Herbs' competitive advantages, and proposes a target market based on demographic and income segmentation, focusing on health-conscious consumers. The conclusion emphasizes the importance of market analysis and strategic planning for achieving organizational objectives.

Business plan for the
company Organic Herbes

Table of Contents
INTRODUCTION ...............................................................................................................................3
OVERVIEW OF THE PROPOSED BUSINESS IDEA ......................................................................3
EVALUATION OF EXTERNAL ENVIRONMENT ..........................................................................3
DISCUSSION OF COMPETITION AND COMPETITIVE ADVANTAGE .....................................4
PROPOSED TARGET MARKET .......................................................................................................5
CONCLUSION .................................................................................................................................5
REFERENCES ....................................................................................................................................5

INTRODUCTION
Marketing is crucial for the business as with the help of this they can ensure their sustainability in
the business practices. While planning for the activities related to the marketing function it is
necessary to undertake a significant level of research in context of the taste and preferences of the
customers. This report is based upon Organic herb which is a UK based company supplying a large
number of herbs, spices and botanicals (Armstrong, et. al., 2018). The emphasis of the company is
to ensure that their customers have a healthy life with healthy mind and healthy body. For this they
are planning to launch healthy ready to cook soups containing different herbs. For this a business
plan is developed containing various aspects such as analysis of the external environment,
determination of the competitive advantage, target market etc. This will enable them to manage
awareness among the customers as well as to achieve their goals and objectives by increasing their
market share and profitability.
OVERVIEW OF THE PROPOSED BUSINESS IDEA
The Organic Herb is operating with the business of herbs, spices, botanicals, superfoods, powders,
extracts, oils, etc. that has been operating in UK. But they are operating in 40 countries as they have
their suppliers from different locations. Now they are planning to launch their soups that contain
various herbs and have various benefits for the health of people. This will facilitate them to work
for their objectives which is a healthy mind in a healthy body.
 Brand Name: Organic Herbs
 Tag Line: 'Mens sana in corpore sano”
 Mission: The mission of the company is to be a global leader in terms of herbs and other
organic products so that the people can experience healthy lifestyle.
 Vision: The vision of the company is to create a holistic and sustainable business that can
inspires, promote and support better quality of living directly through mother nature.
 Products and Services: The products and services that are offered by organic herbs
includes tea and herbal infusion, fresh herbs, baobab, superfood etc. They are adding new
products to their product line which is soups in different flavours (Chaffey and Smith,
2017).
EVALUATION OF EXTERNAL ENVIRONMENT
With the help of external analysis the company can ensured various opportunities and threats that
are present in the business environment. The food industry has been growing significantly because
the taste and preferences of the customers are changing. Their consciousness has been increased due

to which the demand for herbs has been increasing along with the related products. But due to
various prevailing situation the impact on such product can be adverse. The impact of different
environmental factors are discussed below
 Political Factors: The Government of UK has been working with commitment for the
development and local consumers and for the foreign producers. They have implied the
regulation of fair trade with the help of this it can be ensured by the consumer that the
company has been working with fair practices as the product has its labelling. This offers
them opportunity as their products can easily be accepted by the consumers of UK. In
addition to this the various regulations are imposed on food industry due to which they may
face various barriers while launching herbs soup. But due to this their customers will be
satisfied with their offerings as this will ensure the quality as well as nutrition (Cui, Allan
and Lin, 2019).
 Economic Factors: The economic factors has direct impact on the business of Organic
herbs as this reflect the income of the people, cost of labour, availability of funds etc. In UK
the disposable income of the customers has been increasing due to which the people of the
country can afford the ready to cook soups based on herbs as they are quite expensive in
comparison to normal soups. But the income is increasing due to the fact that the labours
within the nation are demanding more wages which leads to increase in the their living
standards and thus the demand of such products increased.
 Social Factors: With the help of this factors the taste and preferences of the customers can
be identified which enables to determine the relevance of the product for the customers. The
people of UK are health conscious due to which their they prefers to have tea and soups
containing herbs because they have various health benefits. This is an opportunity for
Organic herbs as they can easily target the customers with such products. In addition to this
the people also have various dietary restrictions due to which they consume products which
are good for their health. This implies that Organic herbs can sell their offerings to the
consumers easily (Malhotra and Dash, 2016).
 Technological Factors: The technological factors has direct influence on the product and
services that are offered by the company to the customers. The automation is taking place in
various business activities within food industry due to which Organic herbs has impact on
their operations. If the impact of automation within the technology has to be managed then
Organic herbs must consider improvement within their production process so that they can
ensure that the quality of the products are better with cost effectiveness as well as better
productivity. But this directly affect the requirement of the funds as for this the amount of

investment will be increased and this can become threat for them (Vlados, 2019).
 Legal Factors: The government of UK has been imposing various legal standards on the
food industry so that better quality of the products and services can be offered to them.
Organic herbs has already been operating with the herbs related products such as tea, so they
can efficiently manage the impact of such legal imposition on their operations. This is an
opportunity for them to expand their product line but if they do not meet with the
compliance they may face various legal proceedings due to which the level of trust of the
consumers can get affected (Shenoy and Aithal, 2017).
 Environmental factors: The environmental impact on the operations of the Organic herbs
is more as they are taking entire raw material for their manufacturing from the nature. Due
to this they need to emphasis on all the regulations related with the environment such as
waste management, better plantation of the herbs etc. so that the balance can be created
within the environment. They have their farms and suppliers that specifically cultivate herbs
and spices for them due to which the impact of these factors on their business operations is
not much.
On the basis of analysis of the external factors it can be identified that the idea of Organic
herbs has significant opportunity as the consciousness of the people is consistently increasing for
their health. Also the spendings of the consumers is also increasing due to which they can easily and
efficiently launch their new product i.e., ready to cook soup with a wide variety of herbs.
DISCUSSION OF COMPETITION AND COMPETITIVE ADVANTAGE
With the help of the competitive advantage the company can ensure their sustainability as
this enables them to accomplish the goals and objectives of the organisation. It can be done by
retaining their customers and by offerings better quality products as well as services within the
market. The competitive advantage can be taken by the organisation by either emphasising on the
uniqueness of the products and services offered or by considering the cost of the products and
services offered by them. On the basis of the analysis of the external environment it is identified
that the consciousness of the consumers towards health has been consistently been incandescing due
to which the demand of organic products and herbs based products are also increasing. Such
advantages can be taken by the company on the basis of their resources and implementation of the
strategy as well as models so adopted by them (Singh, 2016).
Further the competitive advantage can be taken by the company with the help of market
segmentation as well as with the help of segmentation of the customers. The Organic herbs is
leading suppliers of the herbs and species due to which they have better supply chain network and

better brand image due to which their can easily be accepted by the consumer preferring such
products. This provides them the competitive advantage to them as with the help of this they can
directly cater the needs of the individual. The competitor of Organic herbs is Besmoke which is also
a suppliers of the herbs and spices, seasoning. They have similar strategies with that of Organic
herbs due to which they are perfect competitors.
PROPOSED TARGET MARKET
For the company it is necessary to determine the target market which they have to cater as
on the basis of such determination various strategies and planning are done by them. For this
detailed analysis of the market is to be done by the managers of Organic herbs as this will facilitate
them to understand the taste and preferences of the customers along with factors that brings changes
in the perceptions to make purchases. With the increasing awareness and consciousness of the
people for the health the preferences of the products such as ready to cook herb soup has been
increasing. Segmentation can be done on the basis of the geography, behaviour, demographics etc.
For this the segmentation will be done on the basis of the following basis:
 Demographic factors: Such factors includes the age, gender and other similar factors of the
consumers which the company wants of target. For the herbs based soups Organic herbs are
planning to target people at the age of 20 above as at this age they becomes conscious of
their health. Also their prime target is female customers as they are more conscious over
man for the health and household decisions are taken by them (Vintilă et.al., 2017).
 Income segmentation: This type of products attract people having higher income as the
cost of the products are comparatively high due to which it becomes unaffordable for the
common people. In addition to this the products offered by Organic herbs are of high quality
with advance d technology due to which its prices are high thus making it affordable for the
high income group people.
The suggested target market for Organic herbs to launch their product i.e., herbs based soups
are female customers above the age of 20 that belongs to high incomes group as they can easily
afford the product offered by them and they are more health conscious.
CONCLUSION
It is concluded from the above report that the organisation need to analyse the market
efficiently in such a manner that they identify all the opportunities and threats so that they can
formulate better plans and strategies. Also while planning to launch any product or services the

company need to emphasis on the external factors affecting the business as well as the level of
competitiveness. Along with this the target market has to be identified on the basis of their needs
and wants so that organisational objectives can be achieved by them.

References
Books and Journals
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Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Cui, J., Allan, A. and Lin, D., 2019. SWOT analysis and development strategies for underground
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Malhotra, N.K. and Dash, S., 2016. Marketing research: An applied orientation. Pearson,.
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(IJCSBE), 1(2), pp.103-113.
Singh, A.K., 2016. Selecting Regional Postponement Centre Using PESTLE–AHP–TOPSIS
Methodology: A Case Study in a Pharmaceutical Company. Global Business Review, 17(5),
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