Professional Documents
Culture Documents
Prepared By:
M. Ziaullah
Saad Ali Khan
Ayesha Moin
Sara Zafar
Ali Jamal
OWNERS
Bio World
Suite # 3, 1st Floor,
AMAN CED Building,
IBA, Karachi
+923032152521
www.bioworld.com
EMail: info@bioworld.com
Table Of Contents
Executive Summary ........................................................................................................................................................... 3
General Company Description ........................................................................................................................................... 3
Services and Marketing Plan.............................................................................................................................................. 9
Services .............................................................................................................................................................................. 9
Research ............................................................................................................................................................................ 9
Operational Plan .............................................................................................................................................................. 15
Production ....................................................................................................................................................................... 15
Location ........................................................................................................................................................................... 15
Legal Environment ........................................................................................................................................................... 15
Personnel ......................................................................................................................................................................... 15
Suppliers .......................................................................................................................................................................... 15
Payment Methods for Clients .......................................................................................................................................... 15
Management and Organization ....................................................................................................................................... 16
Startup Expenses and Capitalization ................................................................................................................................ 17
Hosting ............................................................................................................................................................................. 17
Per Workforce ................................................................................................................................................................. 17
Other Expanse ................................................................................................................................................................. 17
References ....................................................................................................................................................................... 18
Executive Summary
We plan to connect millions of health conscious customers with organic farmers around the
world. Its a virtual online market place facilitating easy buying and selling of genuine organic
food products all around the globe. We think that the online businesses are growing very rapidly
and earning exponentially from the beginning of 21st century as compared to past years. That's
why we feel there is a great potential to work that would bring ease for all. There is a great
potential for online businesses because online buying trend is increasing day by day.
Mission:
Our mission is to provide pure and healthy food within easy reach of everyone in whole world
Vision
To be innovative leader in bringing food products with guaranteed organic origin from farm to
fork in most competitive prices.
Business Philosophy:
Purity is essence of our business. We would strive to maintain the highest standards in our
dealings with customers and suppliers and adhere to product selection criteria that proudly
provide a wide variety of organic and natural foods.
Our business research has shown encouraging results and global research has shown that
market for organic food is growing at faster peace.
http://www.uky.edu/Ag/CCD/marketing/organicmarketing.pdf
Not long ago, buying organic was only possible at natural food stores, food co-ops, and possibly
the local farmers market. This is no longer the case. Many consumers now have different options
when it comes to sourcing organic produce. Organic produce is available at specialty food
retailers (like Whole Foods), big box retailers (like Wal-Mart), and traditional groceries (like
Kroger).
Oversupply of organic produce in future can create a steep decline in prices willing to be paid by
customers. This is especially true in wholesale markets. Using production contracts, or having
online market channels available in case of potential oversupply, will help new organic growers
guard against price risk.
General Company Description
This Product is for all Internet users around the globe. e commerce business is growing very
rapidly. in short term we would grow gradually but in the long run we are foreseeing exponential
growth companies like Amazon and COSTCO.
Its founders have strong background in organic auditing, online marketing and database
management. We have decided to form a private limited company. Because in this type of
entity, liability is limited to the organization not belongs to the owners. After meeting our
breakeven cost we would also get it incorporated in US. So that portal can be sold out in future.
Our main competitive strength is we keep our customers well informed about all aspects of the
organic food through its weekly newsletters and blog updates on what is happening during the
winter months such as new and exciting vegetable offerings being planted by the organic
farmers.
A disadvantage in our business is only that it would require heavy marketing budget that would
be sunk in case of wrong pitching. the advantages that that our portal would be in 10 major
languages of world including English, French, Spanish, German, Scotch, Dutch and Arabic.
This portal would free for buyers and there is a discount package for bulk buying and seasonal
promotional offers and for sellers there would be a three type of accounts basic gold and
premium basic account would be free for all sellers in Gold account there is a minimum charge
fees for posting trades and in premium account every word features their products on our
portal.
Literature Review:
Following are the findings of researches done worldwide on same topic;
According to the Organic Trade Associations (OTA) 2016 Organic Industry Survey, 2015 was a
record-breaking year for the U.S. organic industry. As its largest annual dollar gain ever, total
organic product sales hit US$43.3 billion in 2015, up 11 percent from 2014 sales.
Some of them focused on analysing willingness to pay for organic foods (Boccaletti and Nardella,
2000; Corsi and Novelli, 2003; Canavari et al., 2005); customer satisfaction with organic foods
(Asciuto et al., 2003; Cembalo et al., 2004); and consumers store perception with regard to
organic foods
As expected, significant variables in the organic product knowledge equation are consumers
sociodemographic characteristics, lifestyles and information available in the market on organic
food products (HIGHEDUC, VEGETARIAN, ADDITIVES FREE and INFO).
Only income positively influences the final decision to purchase organic food products. Thus,
income is still a factor limiting organic food product consumption in southern Italy.
The most important factors explaining organic food product purchases are consumers attitudes
towards health and environmental benefits provided by organic foods. Both attitudes positively
influence the intention to purchase and the final decision. Then, the most appropriate strategy
to enhance organic food consumption in southern Italy is to design communication campaigns
highlighting the benefits of organic food products for the whole society, through environmental
protection and health benefits. These informational campaigns might make consumers more
aware of the environmental and health benefits provided by organic food products.
Finally, organic product knowledge is also an important factor determining organic food
purchases, although it influences the level of organic food purchase indirectly through intention
to purchase. Consumers who report having higher levels of organic product knowledge will be
more willing to buy organic food products. Then,this greater predisposition will result in higher
levels of organic food purchases. Organic knowledge is achieved through consumers education,
lifestyles related to healthy food habits (vegetarian and/or additive free diets) and information
provided in the market on organic food products.
Thus, the intervention of public institutions has been oriented to promote organic agriculture in
rural areas. However, public institutions should also work to identify and interpret the organic
demand. In this direction, public support should be applied not only through financial facilities
and subsidies but also it should implement information campaigns, promotion actions and
enforce control systems. In fact, results from this research have demonstrated that
communication campaigns focusing on the organic products benefits for the environment and
for the consumers health could stimulate organic product consumption and therefore, the
market for organic produce.
i) the improvement of knowledge and recognition of organic food products creating a national
logo and promoting consumers education; ii) the expansion of organic products by public
purchases made by school and hospitals; and iii) the establishment of a fiscal policy to slow the
rise on prices.
https://mail.google.com/mail/u/0/#inbox/15b8684368ec4e30?projector=1
It might be assumed that, for low-income consumers, the cost of healthy foods would represent
a large barrier to healthy eating.
The majority of participants (.70%) believed that they were already eating healthily and yet only
18% were claiming to eat the recommended 5 or more portions of F&V daily. Considering this
survey was distributed in the summer when people generally eat more F&V anyway, this is a
surprisingly low figure. This highlights a fundamental barrier to promoting healthy food choices
and is symptomatic of the population as a whole.Without acknowledging that a problem exists,
it is difficult to effect a conscious behavioural change.
While organic sales through supermarkets are growing slightly, dynamic expansion is coming
from independent retailers. As shoppers continue to move away from the big shop towards the
high street, signs look positive for future organic retail sales. Home delivery is doing great
business and we are delighted to see the ongoing growth of organic in the catering sector. Not
only is this in restaurants and caf chains, its also in schools, hospitals, workplaces and
nurseries, which have achieved silver and gold Catering Mark awards
It has been a year of growth for organic. But we cant rest on our organic laurels and expect it to
sell itself. The core features of organic are in tune with social values, such as health, wasting less,
reducing antibiotics and finding a balance with nature. The challenge is to help people
understand and appreciate that resonance.
KEY HIGHLIGHTS OF THE ORGANIC YEAR 2015 Sales of organic products in the UK are worth
1.95 billion The UK organic market has grown by 4.9% Sales of organic products in
supermarkets have grown by 3.2% Organic product sales for independent retailers have
increased by 7.5% Box schemes and online sales of organic products have risen by 9.1% The
organic catering sector has increased by 15.2% More than 9 million is now spent on organic
food through the Soil Association Catering Mark, an increase of 28.5%. Catering Mark meals are
served in over half of English primary schools Organic has a 1.4% share of the food and drink
market
Jams and spreads +28.1% Fish +25.1% Oils and vinegar +17.5% Bananas +14.4% Poultry +13.1%
Tea +12.8% Sales of organic health and beauty increased by 21.6% Organic textile sales have
grown by 16% There are 548 thousand hectares of farmed organic land, down 4.9% from 576
thousand hectares The global organic food and drink market is growing and worth around 49
billion The US organic market is the largest in the world and has grown by 11.4% The three
organic food and drink categories with the highest share of the market they sit in are: baby food
at 59%, carrots with 14%, and yoghurt which has an 8.3% share.
However, organic food is generally more expensive than conventionally grown produce as it is
more labour and capital-intensive to produce, requires specialised knowledge and skills to grow,
and may at times be of lower yield as well. The price of organic food invariably includes these
and similar hidden costs, which in fact match the real product value. The Australian Consumers'
Association conducted a market survey in May 2000 to check the prices of organic food in
different parts of Australia. It was found that organic fruits & vegetables on average cost 70%
more than their conventional equivalent
The Pakistani agriculture is likely to encounter problems with quality assurance, certification,
labelling, packaging, trademarks, uncertainties about production, supply and price, and would
need to address these issues. Impediments to market access and information to enhance the
organic market's outreach would require to be overcome
Several demand and supply-side forces shall be critical in determining the future growth of
organic market. Sustained increase in demand for organic food is directly linked to continued
consumer preference for and growing understanding about such food. Individual income, price
and health/quality standards shall be the key factors in determining the consumer
responsiveness whereas lower production and farm costs, enhanced research, improved sanitary
and phytosanitary conditions may shape the production side of the future organic market.
It is essential that our agriculture diverts resources to dedicated organic farmland to increase its
proportion in the total Pakistani agricultural land. Meanwhile, the industry needs to evolve a
strategy to boost its share in the world markets. Broadly speaking, this should focus on in the
order of priority? improved industry co-ordination and development, market development,
including market research and marketing systems, setting up of a regulatory framework for
quality assurance, an integrated, farm-based research, development and extension,
strengthened communication and information services, enhanced education and skills, and
improved processing of organic produce
Pakistan being an agro based economy has the huge potential to capture the high global market
of organic foods. He opined that our organic food sector needs inter-alia, an efficient R&D
system, trained manpower and marketing system
One regular user objected, 'Prices are at least 3 times. That's why we consume less. Organic food
has less shelf life so one can't stock it. It has to be consumed quickly. Therefore not worth the
trip.' Another customer protested, 'Price is such a big factor that middle and lower middle
classes won't buy even if it's much more beneficial. They are surviving on gatar bagheecha
[grown on untreated sewage water] vegetables and poor quality food and water. Why would
they buy more expensive?
Accessibility was a key reason, customers noted, organic products were not selling widely.
'Availability needs to increase in middle class areas,' several customers stressed.
One non-user also suggested home delivery in order to entice her to buy organic, which was
what growers/producers outside Karachi were already doing 'to build marketing relationships'
with customers. Home delivery also enabled them to quickly sell off fresh produce nearby
Respondent P5, an eminent organic producer, also promoted organic farming to big and small
farmers: he ran TV shows, visited universities and researchers and invited people to his farm.
Other producers were also using social media - such as facebook, web pages, Islamabad Food
Diary to market their products. Some producers occasionally printed out brochures and
leaflets. In spite of these efforts, not many users and non-users had heard of any promotion -
other than health benefits - of organic foods in Pakistan.
There are problems. He admitted that there is no proper certification system available for
organic products. We are setting up a laboratory for certification and this will help in ensuring
quality.
Services and Marketing Plan
Services
Silver Company Top Listing with Key Account Manager $500 Supplier
Gold Supplier Inspection and Audit for Buyers with Key Account
$2500 Big Buyers
Sourcing Mangers
We have conducted a survey Google form and respondents we asked about family orientation
towards food intake, knowledge about organic foods, food consumption, online and purchasing
behaviors of food items.
According to http://www.internetlivestats.com/ size of internet users by the mid of April was 3.6
Billion.
Further according to a poll conducted by Thomson Reuters
(www.huffingtonpost.com/2011/07/22/consumers-prefer-organic-food_n_906988.html) that
58% of consumers prefer organic food over conventional food. We have took this 58% value and
converted into an out-of-10 point score i.e. 5.8 to use it as a TESTVAL for T-Test of out-of-10-
scores of preference of organic over conventional food given by our correspondents. The test
had a degree of freedom of 33 and gave p-value of less than 0.05 and t-score of -15.525.
Further, out of the respondents, 47.1% said they prefer trade organic food over internet.
14.7% said they prefer to buy and sell over internet
26.5% said they prefer to only buy over internet
2% said they prefer to only sell over internet
Hence, our exact market will be of 1.7 Billion users out of which 0.6 Billion users have potential
to get our paid membership as supplier and 1.62 Billion users have the potential to become our
buyers and not only help us to retain our paid membership base but also will be helping us to
generate revenue from web-ad services like ClickAd or AdSense.
If we get only 0.1% of the market share then our users will be 1.7 Million out of which 0.6 Million
users will get our services at any point of time. Since our service is starting from $500/year and if
we are able to keep 0.5% of the total potential users as our premium member in a year, which
are 3,000, then our total revenue could become atleast 1.5 Million USD per year.
The major restriction could be of importing and exporting organic foods and the suppliers
getting certifications of organic food products. We cannot overcome the first restriction due to
government involvements but we can overcome the later restriction by making an alliance as
resellers of organic certification with organic certifying agencies.
Strength or Importance to
Factor Me Competitor 21Foods Competitor Ali-Express
Weakness Customer
Brand
No one knows Weakness Medium Reputation Global Critical Acclaim High
Image
V# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
2 0.131
3 0.961 0.505
4 0.469 0.044 0.862
5 0.604 0 0.763 0.332
6 0.488 0.805 0.085 0.704 0.38
7 0.712 0.756 0.298 0.84 0.135 0
8 0.009 0.22 0.304 0.494 0.62 0.112 0.147
9 0.144 0.012 0.605 0.4 0.008 0.217 0.3 0.254
10 0.995 0.03 0.972 0.029 0 0.241 0.07 0.881 0.005
11 0.685 0.465 0.874 0.489 0.237 0.298 0.226 0.457 0.331 0.157
12 0.537 0.31 0.004 0.252 0.317 0.01 0.015 0.341 0.597 0.692 0.575
13 0.018 0.5 0.868 0.596 0.71 0.052 0.941 0.084 0.805 0.93 0.942 1
14 0 0.175 0.963 0.858 0.488 0.179 0.243 0.021 0.781 0.859 0.959 0.572 0
15 0.021 0.009 0.805 0.157 0.273 0.201 0.316 0.067 0.117 0.233 0.199 0.491 0.013 0
16 0.301 0.029 0.06 0.458 0.109 0.71 0.704 0.093 0.384 0.033 0.361 0.363 0.018 0 0.003
17 0.049 0.102 0.07 0.503 0.048 0.368 0.377 0.098 0.181 0.019 0.741 0.326 0.016 0 0.001 0
18 0.004 0.544 0.472 0.824 0.36 0.68 0.757 0.021 0.823 0.558 0.824 0.342 0.005 0 0.001 0.011 0.001
19 0.069 0.207 0.003 0.781 0.064 0.452 0.623 0.033 0.524 0.018 0.879 0.523 0.001 0 0.001 0 0.001 0.003
20 0.001 0.06 0.497 0.777 0.418 0.33 0.48 0.009 0.101 0.843 0.602 0.587 0.026 0.001 0.012 0.002 0.021 0.003 0.042
Table 3: Pearson Chi-Square's 2-tail aysmp. sig. results for all possible tests for Association (p-value). Cells
highlighted with yellow shows association with the connecting variables at head-row and head-column and at
that very test has p-value < 0.05
Inferences:
From this above table we conclude that, knowledge about organic food or food intake in a family
doesn't affect the choices of organic food intake. Hence, this means if someone know the
benefits of organic food then this doesn't mean that the person will purchase it. Why? The
reasons that are given by participants in the survey comments include the high price and scarcity
of products in markets. Further, if we see the results, monthly income has a direct effect on the
preference of organic food over conventional food and is explained closest by Model A (having
25% Symmetric MAPE).
In this model, we first took X as Variable # 1 and Y as the Variable # 8. Since, regular linear,
polynomial and exponential regression was not possible so we transformed each variable. We
33.08
transformed ()40 and 1.1 and modeled the transformed values.
= 1.768 + log1.1 (63.989 6 + 215.37 5 272.81 4 + 157.17 3 38.025 2
+ 2.2711 + 1.0054)33.08
= 1.768 + log1.1 (63.989(cos )240 + 215.37(cos )200 272.81(cos )160
+ 157.17( )120 38.025 ( )80 + 2.2711(cos )40 + 1.0054)33.08
This is mainly of high prices of organic food. Hence, the portal could serve the benefits.
Nevertheless, there are other factors as well that effects the selection of organic foods which
include the culture/life style of country along with the amount of income spent on food.
Further, a customer will likely to build a trade-off of higher cost for organic food if customer
possess as many as following traits:
1. Prefer eating at home rather than dining out
2. Purchases via online mediums
3. Always buy Fruits, Vegetables and Dairy products
Hence, we can try running Google AdWords, Facebook Advertising or Ad-Roll Remarketing by
targeting on Keywords and Placements related to fruits, vegetables and dairy products.
If price of organic food decreases then, not only organic food consumers will increase their
purchasing but also, frozen food consumers will switch over to organic foods. Hence, if we
promote organic products on low profit, then we will not only increase the customer base but
also will get our target profits and revenues by working over volumes out of which a major
chunk will be switchers from frozen foods to organic foods.
People who prefer eating at home mostly prefers online food purchasing and mostly products
with "meat" as content. Hence, we can use online channels for promotion of meat products.
There is a very interesting result that dairy, meat and other frozen food products, effects the
online purchase behaviors. Hence, quality, price and promotional packages of organic food
should be carefully planned.
Nevertheless, the trend of going to a nearby store or a supermarket like Imtiaz will never end
and no other factors considered in this test have an association with store purchasing. The main
reason of physically going to a store is to have an out-of-home activity for home-makers as well
as kids.
Marketing Channels:
Location
Our location can be at any place where there is uninterrupted electricity and internet access.
We will get an office at shared workplace like in incubator like Aman CED or a company like
ShareDesk where we will have workspace with electricity, water and internet connectivity.
We would operate 24/7 but our presence at office will be between 9am to 5pm during
weekdays.
Legal Environment
Our company will be a Private Limited Company and we will copyright our logo and company
name.
Personnel
There will be 4 people working in the company whose details are explained in Management and
Organization section. Each person is skilled in their domains and will be drawing yearly salary of
$12,000
Suppliers
Our supplier will be domain service provider for web hosting and internet marketing platforms
of Google, Facebook, Twitter and AdRoll.
Hosting
We have selected BlueHost Dedicated Server Hosting for 3 years at $105.96/month as a first
time package with additional services of domain privacy and sitelock feature. So, total cost will
be $3,671.28 and after three years yearly expanse of $1,271.52 will occur.
Per Workforce
The yearly cost of workplace is $1,200.
Yearly salary expanse will be $48,000 for 4 people.
Since, our team has 4 full-time working members so, we will require laptops and mobile
and office SIM for 4 people. For 1 person, laptop cost is around $1,150, office mobile cost
is around $850 and SIM cost $1.5. Hence, per person fixed cost will be $2,002 and for 4
persons, the cost will be $8,008.
Yearly expanse of mobile usage is $70 for one person and for company it will be $280
Other Expanse
Yearly Marketing Budget will be $12,000
Yearly VOIP expanse will be $500
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