1.Introduction (Sitichoke S19001772)
1.1 Business idea and structure
Vegetable Lover is the mediator that provides a variety of vegetables such as carrot, cucumber, lettuce, herbs and more directly from farm to customer house and market. The business is based in Bangkok, Thailand. All the vegetable products will be grown in Chiang Mai (located in the north part of Thailand) with local farmers and distributed to urban cities. The business ensures that all products will be formed in healthy and organic ways. Organic food is the products that do not use any chemicals in the growing of plants in order to have high quality food and clean (Lewin, 2019).
The company will be selling products toward multiple grocers and providing delivery service to customers. Our main competitor is the companies that provide similar products such as Golden Farm Siam. Golden Farm Siam is our main competitor as they sell vegetables and fruits in Thailand (goldenfarmsiam.com, 2020).
1.2 Core, Formal and Augmented analysis
| CORE | FORMULA | ARGUMENTATIVE | |
| BUSINESS | -All vegetable products are organic and high in quality by farmers. | Vegetable Lover is a mediator that provides varieties of vegetables from local farmers, and delivery to customers. | The local farmer will be checking that all processes run in organic ways to have good standards. |
| PRODUCT | – Non chemical and insecticide in all products – reducing global warming issues by organic farming. | All fresh vegetables including carrot, cucumber, lettuce, tomato and more. | No animal meat providing such as eggs, fish or meat |
| SERVICE | Premium packaging with goods delivered from local farm to customer house. | Distribute goods to the market such as multiple grocer and organic shops -Having a delivery agency to support and deliver goods to customers. | Customers can ensure that the company guarantees organic vegetables. |
1.3 Investment outlay
For the Vegetable Lover company’s, we will have to invest 100,000 pound to build up the company at the starting stage , and they will be from two sources of funding including personal funding (55,000 pound) and family and friends funding(45,000 pound). We need to have 100,000 pound in order to pay the following costs such as farmers contract, delivery agency contract, seeds and advertising and packaging costs.
1.4 Mission and goal of the Vegetable Lover company in each years
1. The first goal for a company is to distribute organic food to customers to make good quality food and healthy for everyday life. Organic food is good for people’s health because they avoid chemicals, better in taste and not harm to plants (Harrison, 2016). To make this happen business will ensure that local farmers will grow plants in natural ways that company commitment.
The second mission is to build a good relationship between company and local farmer. This venture is made to reduce global warming impact and provide organic food, which also makes local farmers earn money to push the agricultural economy of the country (Buren, 2016). The strategy seeks for the customers that are willing to pay for our product, which will make the company and farmer earn profit as a result.
The third goal is to make customers find organic food easier. From research we found out that people tend to shop online more and more everyday. For example, Thailand has more than 39.8 million ecommerce users (www.janio.asia.com, 2020) and therefore our goal is to fulfill customer needs by providing delivery service to customers. To explain, customers can simply use mobile phones, use delivery apps and order our products.
Lastly, 3-5 years potential vision is to expand business to other countries such as Indian, Myanmar and China to earn higher profit and level up business position to international market.
Macro Market (Aaveg S2005179)
2.1 Maximum, scalable market volume size and estimated value, showing calculations and assumptions, as well as any identified growth trends.
Market-sizing estimates of the total addressable market to gain executive interest and approval of their new product or service ideas. Although this approach can garner attention, it is just as likely to overlook key factors and overestimate realistic opportunities.
1st step should be analyzing the location you are willing to target for the vegetables markets then identify the customer base and target base.
2nd step should be assessing where your business is lacking in growth then try to rectify it ,in the process, you will gain insight into how they might be better served.
3rd step is to consider the competitive structure of your market. Knowing who your potential competitors are, where they are located, and what services they provide are important pieces of information for you as a new grower-marketer. Note potential competitors who might have marketing advantages (lower costs, better locations, and higher-quality produce) or may provide potential consumers with similar products.
2.2 Prioritized and integrated PESTEL acronym trends and influences on the macro market.
Political factors-The macro environment include taxation, tariffs, trade agreements, labor regulations, and environmental regulations. Vegetable market is something which the country survives which will always force the government to give subsidies and minimum support prices to the market people so that this business never dies.
Economic Factors-NO mater is the situation of the country’s economy. Vegetables always sell ,having this edge from different sectors or products one business which will never have a downfall unless there is a natural calamity.
Sociocultural Factors-Demographics, a subset of this category, includes facts about income, education levels, age groups, and the ethnic and racial composition of a population. All of these facts present market challenges and possibilities.However almost every age group every region every income group consumes vegetables.
Technological Factors-The rise of the Internet may be the most disruptive technological change of the last century. The globe has become more interconnected and interdependent because of the fast, low-cost communications the Internet provides.To stay in the market we have to use the technological enhancements.From providing door to door facilities and services one has to take the help of the internet to expand his business.
Environmental Factors-The physical environment, which provides natural resources for manufacturing and energy production, has always been a key part of human business activity. As resources become scarcer and more expensive, environmental factors impact businesses more every day.However the vegetable business will always be in favour of nature.But still to accommodate the needs of the business we will require the most suitable/fertile land to increase the production.
Legal Factors-Legal factors in the external environment often coincide with political factors because laws are enacted by government entities. This does not mean that the categories identify the same issues, however. Although labor laws and environmental regulations have deep political connections, other legal factors can impact business success.
3.1
References
Buren, D., 2016. 6 Ways To Support Local Food And Farmers. [online] Seedstock.com. Available at: <http://seedstock.com/2016/03/07/6-simple-ways-to-support-local-food-and-farmers/> [Accessed 19 February 2021].
Estay, Beatriz. “How to Identify and Analyze Your Target Market in 2020.” bigcommerce, https://www.bigcommerce.com/blog/target-market-analysis/.
Harrison, J., 2016. [online] Naturespath.com. Available at: <https://www.naturespath.com/en-us/blog/11-reasons-why-organic-food-is-better-for-you-the-planet/> [Accessed 19 February 2021].
Lewin, J., 2019. What does organic mean?. [online] BBC Good Food. Available at: <https://www.bbcgoodfood.com/howto/guide/organic> [Accessed 18 February 2021].
Golden Farm Siam. 2021. Thai Fruits & Vegetables Exporter – Golden Farm Siam. [online] Available at: <http://www.goldenfarmsiam.com/> [Accessed 22 February 2021].
Janio. 2020. Who are Thailand’s eCommerce Consumers? – Janio. [online] Available at: <https://janio.asia/articles/who-are-thailands-ecommerce-consumers/#:~:text=There%20are%2039.8%20million%20eCommerce,67%20per%20cent%20by%202023> [Accessed 19 February 2021].
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