Organic Hub Business Plan: Market Analysis and Strategy

This business plan outlines the strategy for a new organic food store, 'Organic Hub,' located in Birmingham, UK. The plan includes an executive summary, market and industry analysis (including PESTLE and Porter's Five Forces), product and service descriptions (organic food, beverages, and beauty products), and a detailed competitor analysis. The operational plan covers organizational structure, quality control, supply chain management, and communication strategies. Risk and contingency plans address potential challenges, while the sales and marketing strategy utilizes a marketing mix. Financial and funding plans, along with a management team overview, are also presented. The business aims to capitalize on the growing demand for organic products, offering online and offline services with a focus on customer health and convenience.

Business Plan

EXECUTIVE SUMMARY
The entire plan is based upon new organic food store name as “Organic Hub” who will be
offering range of food, beverages and natural beauty products for their target audience. It has
been analyzed that before implementing any unit, it is necessary for the company to examine the
external factors that helps to make effective strategies. Also, from the study, it had also identified
that there are different competitors within the area which might affect the performance of a
company. That is why, it is necessary for the business to create USP so that it causes positive
impact upon the business. Apart from this, through cash flow, it has been analyzed that there will
be a positive sign of a cash inflow and the chosen business plan is feasible. Overall, there will be
a team of 9 people who manages the entire operations of a company and also able to meet the
demand of a company in positive manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Business details...........................................................................................................................1
Location.......................................................................................................................................1
Market/ industry analysis............................................................................................................1
Product or service description.....................................................................................................5
USP and competitor analysis......................................................................................................5
Operational plan..........................................................................................................................6
Risk and contingency plan..........................................................................................................7
Sales and marketing strategy.......................................................................................................8
Finance and funding plans........................................................................................................10
Management teams....................................................................................................................12
REFERENCES..............................................................................................................................14

Business details
Organic Hub is the new business idea which will be introduced in UK in which range of
organic food and beauty products will be offered. By analyzing the situation of Covid-19, it has
been analyzed that people must changes their ways of consuming food products especially,
because more than 50% of the people in UK are obese due to eating junk food (Bostan and et.al.,
2019). Also, now a days, society is inclined towards health and hygiene and that is why, opening
organic grocery store will be more beneficial for the company in order to attract customers. The
business only deal under organic products because there are limited store available so focusing
upon this business venture will be more beneficial. Hence, quoted business shall be serving the
local customers of UK in different cities where the demand is quite higher as compared to other
stores.
Location
Organic Hub will be located in Birmingham, UK because there is a high demand of
organic store in such area. Also, the company will locate within centre of a city which can be
accessible by all people so that company will easily improve the brand image at local area.
Moreover, opening a store nearby the malls can be a good option because it will be eye-catching
and as a result, company is able to improve the overall performance and offer products to their
target customers as well.
Market/ industry analysis
Opening a store of organic products will be a good and trendy such that as per the Soil
Association Certification's Organic market report 2021, it has been analyzed that the market is
now worth at £2.79 billion, along with a growth of 12.6% from 2020 (Organic sector booms in
the UK as online sales increase by a third, 2020). Therefore, it is also interpreted that the market
has now reached at highest within next 10 to 20 years. To examine the external factor, pestle
analysis has been used which is as mentioned below:
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Political factor:
It deals with the political stability of a country and as per the current situation, UK is
affected from pandemic and Brexit that might fluctuate the political stability. However, the
changes somehow affect the business performance and this in turn increases the financial
performance. Also, due to Brexit, companies has to face some legislation or trade agreement for
the supplier and this in turn affect the performance in adverse manner.
Economic factor:
Economic instability of a country affect the growth of a company adversely such that due
to inflation rate, price of the product will be high and this in turn decrease the consumption rate
of customers (Torres‐Ruiz, Vega‐Zamora and Parras‐Rosa, 2018). That is why, it is analyzed
that with a change in economic performance of a country, it is necessary for the organization to
change the pricing style and start offering the products at low cost. This in turn helps to attract
customers and improve performance.
Social factor:
The social factor has an impact of eating habits of people and the attitude of consumer is
complex about organic food. Therefore, business should invest upon such items that helps to
meet the demand and improve the lifestyle as well. Also, Organic Hub will also offer the best
variety of organic food products in order to satisfy the need of customers.
2

Technological factor:
This factor is used to take competitive advantage over the competitor brand. Also, taking
online orders of the products and supply the same at doorstep of their client will assist the
company to meet the defined aim (Bazaluk and et.al., 2020). However, it may also increase
cyber security which causes adverse impact upon brand. Therefore, it is necessary to take steps
to minimize the chances of virus and fraud.
Legal factor:
In order to run a business in effective manner, it is necessary to comply with the laws
which includes employment act, equality act etc. Also, to establish a business at UK, it is also
essential for the business to improve standards and adhere with essential laws like consumer
protect act, equal opportunity and employment act which ensure about the safety of business.
Environmental factor:
Company must complied with sustainability act that helps to prevent the environment
from harmful gases. Also, the packaging of organic products should be recyclable so that it do
not cause any negative impact upon the business performance (Kranjac, Vapa-Tankosic and
Knežević, 2017). Further, due to global warming the production capacity of farmers is affected,
however the brand keep focusing upon sustainability.
Porter five force model:
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 Bargaining power of suppliers (low): There is a low bargaining power of supplier and
that is why, the products are not sold at high price without compromising the quality of
products. Therefore, it is essential for the business to select different suppliers so that it
does not affect the pricing style of a company.
 Bargaining power of buyers (high): There is a high bargaining power of buyers
because there are range of people who want to invest within organic food products that
assist to create positive impact upon business performance (Kuchler and et.al., 2020).
Also, due to having large number of buyers, company must develop strategy in order to
meet the defined aim.
 Threat of new entrant (high): In this industry, there is no high capital needed and that
is why, threat of new entrant is high. As majority of the people are more conscious about
their health and that is why, it become more profitable when business focusing upon
customer requirement.
 Threat of substitute (moderate): It has been analyzed that threat of substitute is
moderate because there are small number of organic food store available in the market.
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Therefore, customer shift towards another brand when they find any change in the price
or quality of product.
 Rivalry competition (high): There is a strong competition in the food industry and that
is why, companies are focusing upon innovative products that assists to grab attention of
customers (Orsini and et.al., 2019). Also, to gain attention, companies are focusing upon
the marketing campaigns so that it assist to meet the defined aim.
Product or service description
Organic hub will start its online and offline services to their customers which in turn
assist to let the customer enjoy the offered services. Quoted business will offer all variety of
organic food (packed and unpacked), also, it offers beverage to their customers and provide
natural beauty products that helps to attract the range of customers towards it.
Moreover, company also provide online services to their customers in which it took only
30 minutes to deliver the product at customer's home. Due to pandemic, customers prefer to buy
products online and that is why, it will assist to attract to customers and also provide discount
and coupons on their purchasing.
USP and competitor analysis
Particulars Organic hub Holland & Barrett Planet Organic
Products
offering
The company will provide
all variety of food (packed
and unpacked), beverages
and natural beauty
products (Hamilton and
Hekmat, 2018).
It provides online
organic food products
like Gluten Free Bread,
organic snacks, tins of
soups and jars of pesto.
It provides healthy
products which include
drink, coconut water,
juices and smoothies
organic beer and Wine
etc.
Pricing style It will use low cost
leadership pricing style in
order to sell the products
easily.
It uses penetration
pricing style in order to
gran attention of many
customers.
It uses competition pricing
style in order to generate
the best outcome and
change the price as per the
market competition.
USP Innovative packaging style
and effective promotional
USP of the company is
effective customer
High quality and range of
innovative products is
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tools are consider as a USP
for Organic Hub.
service and prompt
response to the
customers (Ham, Pap
and Stanic, 2018).
consider as a USP for
Planet organic.
Promotional
strategy
It will uses only modern
form of promotional
strategy that helps to
improve the business
performance level which
include social media, SEO
It uses only modern form
of marketing tool like
Facebook. Online
website and emails.
It uses both traditional and
modern form of
promotional tool to grab
attention of many
customers towards it.
Operational plan
Particulars Description
Organization
structure
The company's organization structure will be hierarchical in which
different departments are functioning parallel. Through this, company
will also offer the range of products and develop strategy in order to
meet the defined aim.
Quality control It is quite essential for Organic Hub to control over quality of products
and for that all the food products must contain ISI mark that helps to
identify the quality (Scollan and et.al., 2017). Also, the store license
must be renewed timely that helps to carry out the operations in
effective manner.
Supply chain
management
The company is also deal online and that is why, it must have an
effective logistic facilities so that company is able to meet the orders of
customer effectively. Also, suppliers should also have an effective
knowledge so that they provide appropriate raw material that do not
cause any negative impact upon business performance.
Communication Proper flow of communication will assist the company in its smooth
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operations. All the internal department of a company should be properly
communicates if any changes done. This in turn helps business to meet
the target aim and objectives.
Risk and contingency plan
In order to implement a new business, there are many changes identified that affect the
business performance and might also cause delay project as well.
Type of risk Reason Likelihood Impact Preparation Response (action)
Communicat
ion risk
This occurs
when the
flow of
communica
tion is not
proper.
Low medium An effective tool
can be
implemented
that improve
communication
channel
Proper hierarchy should
be maintained that helps
to improve he chances of
occurrence.
Technologic
al risk
This is due
to system
crash and
virus attack
Low High Alternate
systems must be
implemented and
important data
can be stored in
two different
forms.
Advance technological
systems should be used
that helps to minimize
the chances of
technological risk
(ADAWIYAH, NAJIB
and ALI, 2021).
7

Financial
risk
This is
performed
when the
expenses
are
increases
over the set
budget
Medium High Budget should
be performed for
each task in
order to
determine the
actual
performance
Benchmark should be
set that assist to meet the
define task in an
appropriate tome that
helps to minimize the
chance of delay.
Operational
risk
Due to low
quality
products,
company is
failed to
meet the
internal
process
Low High Each department
must report to
their senior in
order to evaluate
the performance.
Keep developing new
policies that helps to
improve the existing
policy and this in turn
assist to increase the
performance.
Sales and marketing strategy
For effective marketing strategy, marketing mix is used that helps to define the overall
performance of a company along with key elements. Such that:
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Particulars Description
Product Organic Hub will provide range of organic food and beverages to their
customers which includes soup, wheat, oil, coffee etc.
Place The company will operate in Birmingham, UK as well as nearby different
areas that helps to improve the overall performance of a company (Sahaidak
and et.al., 2021).
Price It will use low cost leadership style in which products will be offered at low
cost without any compromising in quality.
Promotion Organic Hub will use modern form of promotional tools which includes post
on Facebook, Twitter and Instagram that helps to grab attention of customers.
Also, SEO will be used as a digital technology tool that helps to improve the
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