INTRODUCTION TO MARKETING MKG-310A

Ayesha

COLORADO STATE UNIVERSITY– GLOBAL CAMPUS

A business idea, how to establish business

 
Healthy and Hygiene Online Food
“Eat tight, But Right”
 Executive Summary
The 21st century, time is running so steady. Wake up, do work, give time to family & sleep. Knock! Knock! Where is the time for yourself? If
you have good body you will have more energy and optimistic feelings about the life. Our business is here to provide you something organic,
very healthy, idiosyncratic food plans. Now what is special? Special is the purpose; to give quality food and add value to the life of consumer.
It is the commitment of our business that we take care of all associates including employees, consumer and suppliers. As it is our food
business, we make sure to provide hygiene items and give intense attention to the food quality. We will start from Texas (Houston) and our
target is not only health-conscious people. Because when we talk about health there is idea came of being starving eat tasteless food, salads,
oats etc. No, we are talking about something different, delicious, hygiene. Many people suffer from Covid-19 and many have fear they can
infect others. Give healthy and fresh food is important. (Blacher.R. & Field N, 2021) A -st pick the cell phone choose the healthiest plan for
himself/herself and just order by staying safe at home.We are giving food in three categories Gain, Maintain, Reduce. Menu will display in
business app with these 3 head categories. Customer will decide which category and plan they want to select. We are offering daily, weekly
and monthly choices of subscription to attain goal. (Sebastian, 2018) Food delivery is growing business in the US expected to reach $76 billion
in 2022. Our marketing objective is to build the brand image by social media campaigns and advertisement on television. 15% of budget will
spend to promotion of business. The interesting fact is business have no physical building. It is online food service with home delivery. We
choose Texas as our potentials buyer is more in this area. We also make financial projection of 3 years for evaluation of our marketing plan and
result. We don’t exaggerate our profits. In our initial years we will just focus on building our brand reputation. As we stated it is important for
us everyone who belong to business get some value a connection for this proper training will give to staff before the commencement and
hereafter.
 Overview

•The company is a start-up venture that aims to offer online healthy food. Moreover, the enterprise will be a sole proprietorship. Over time, the company will seek investors

to grow its operations throughout the United States and international market. Furthermore, the business aims to make a healthy lifestyle a habit not stress or panic. We will

deliver the consumer favorite item in less calories and more good fat to their doorsteps. The service is entirely new in the market as nobody ever highlighted healthy &

hygiene; meal plans. There will no physical existence of restaurant for people to sit and eat. And the scenario (COVID-19) in which Online restaurant is launched is perfect;

that matters. However, this company seeks to offer a more refined and advanced form of healthy & hygiene food. Further, the organization will operate this service using

Mobile Application software, where a client sets their order and pin their location for delivery. The digital online food purchasing is increasing 300% faster now. (2 nd

Kitchen,2019) The Cell phone Application shows the online restaurant image and videos to give a better understanding to the client. Consumer will have option in the menu

for food and the customized food plan to deliver on monthly base three of the meals. Moreover, consumers will be billed on placing delivery. Since foods are perishable

goods that cannot be returned or delayed. We will provide by our own logo display vehicles.

• MISSION

“To provide healthier, hygiene food to consumer and make it possible to spread awareness of healthy lifestyle with ease in budget and play a corporate role with

society and suppliers”

 Situational Analysis

• SWOT

•Many of the Restaurant’s services are concentrated on having an online catalog where consumers select the items they are interested in and directly purchase.

• Strength:
 Perhaps we are OFFERING different services with product.
 We are offering menu as: Maintain, Gain or Reduce
 User friendly app
 Review option on each package
 Highly corporative online customer service
 Healthy and tasty food without any hesitation
 Clear calories count
 The customer will make account on app and get the calories count per day,
 Breakfast, Lunch, Dinner options.
 • Weakness
 The less finance and more big dream top target whole USA. But the plan is to start from one city.
 Limited awareness of H2.
 Lack of understanding in using technology.

•As H2 is a mobile app that delivers the whole brand message, it will be costly software, that requires time to time maintenance for quality service.

•Business is new and creating awareness takes time, means patience for profits. As we all know not everyone is a good app user to understand the overall

projection.

• Opportunity

People with every passing day in USA getting more health conscious. According to International food information council 43% of American claimed to always

looked for healthy food. Remaining 52% said they at least sometimes scouting for healthy food.

Majority of Americans find difficult to search for the healthy food (Katharina, 2019)
 The Covid-19 itself a curse but change the way of living. Consumer start thinking about a healthy and hygiene lifestyle. Perhaps for our business it is
opportunity.
 Matchless Services.
 Growing awareness of health and hygiene.
 Threat

 The change in technology.

 Existence of other competitors with low cost.
 Existence of competitors with lower price.
 Tangible restaurant with same services.

• Objectives

1. Offer the healthy & hygiene food. Healthy in the way it is Pizza but it is delicious even though contain lesser calories

and delicious as well. Second the hygiene is the priority there is a choice to watch us on the mobile app with minor

additional charges. It is an online food service.

2. We will offer services 24/7.

 Objectives

1. We will offer the food to the busy health-conscious people on daily/weekly/monthly bases. App consumer will

select the meal they want, there is a list of calories with each meal. Breakfast, Lunch, Dinner deals are to be

given on week/ monthly bases for weight loss/gain or maintain. A person who subscribes the card will get

weekly deals to manage the weight with our diet plan with refundable amount. Food will be delicious is not

like a boring salad, or tasteless oats there will be taste and fitness together.

2. Build the brand image to vast level in lesser time.

3. Primarily, we will deliver the food in our own vehicles

 SEGMENTATION AND TARGETING ANALYSIS

Why segmentation is needed?

 Segmentation takes us to the exact our potential buyers.

 Segmentation eliminates the risk of less market share
 It give us understanding of consumer behavior which change due to
 Cross-cultural consumption
 Low income consumer
 Digital first (Shet.J, 2021)
 Segmentation, Target market

 A product can`t be accepted at same level due to consumer preference, behavior and time.
 Segmentation make things crystal clear for the business man.
 Consumer behavior is now extremely change with the passage of time unlimited choices
make segmentation the need
 Our Segmentation, Target Market

• What we choose after Research work:

 We use Psychographics ( healthy and hygiene)

 Demographics (age 24-40 )
 Geographics Texas (Houston)
 There is 2.1 million people in Houston and according to the study 2.4% of Americans take home delivery every week , spend $
70. (Benaca.S, 2018)
 So, it make sense
 Positioning Map
UX experience GOOD

Bebidas
H2

Prices high Prices Low

True
Green
Food
seed
Kitechen

UX experience Average
 MARKETING STRATEGY (4P`S)

•Product: We are giving the product of healthy, hygiene online Food.

•Our main theme is our menu and that is our competitive advantage no one give the service of calories tracking: Menu
 Maintain
 Gain
 Reduce

• There is customization of plan.

•Client will choose a plan and he/she can get one day meal or the week/ month base meal plan to achieve the desire result. Menu include:

•Salads, Smoothies, Burgers, Pizza, Salmon, Protein base items, Organic multi grain tortilla, Cheese sandwiches, Butter Chicken & Fish B.BQ, Under 900

calories, Chocolate cake, Almond dessert. Almost 100 items.

•Basically the monthly plan/weekly consumer describe his /her liking or disliking about food than H2 provide them under the selected menu category the Meal.
 Promotion

• The business will offer a free delivery option for first-time subscribers and for every referral a consumer also gets a discount. For
Retention of the customer: Suppose A person who choose the menu of weight gain and if he achieves the target in the one-week
time span so that customer will have one day free meal

Paid Advertisement:
There will be social campaign of 40 days on Facebook, Instagram, YouTube, Tweeter, Tik tok everywhere there is H2 to penetrate
in the mind of the consumer before launching. Repetition works. The billboard with desktop image for the people who are anti-
social. After 40 days results will be concluded and again Advertise the brand.

•Pricing: Additionally, the business will also employ a Competitive pricing strategy to go with market rates since it operates within the

high competition. Later on price strategy will shift to value base pricing strategy once brand get recognition.
 Place

Place is our app free to download that will be highly user friendly and give a full detail of the items with pictorial catalog and chatbot. Furthermore, the

app for the service will be easy to use in terms of navigation.

The second thing if we start so what will be the target market location it will be Texas. As here are the majority of millennials. Millennials are the age
group in US who are more interesting in healthy lifestyle. We also decide to open the 2 nd chain to Arlington Virginia as the fittest in the US. (Butler, 2020

• Packaging: Food is made perfectly and now ready to dispatch, what requires is wonderful packing that obviously done brilliantly. It includes the
feature of Paper bags mention the name of business H2 and tagline.
 BRANDING STRATEGY

• “We want to become the regular part of your food”

• “We promise to deliver the food that will add value to your life”

•Pandemic force the people to stay home and take delivery 62% American during pandemic search for the keyword “Takeout near me” or

“Take out”

•Consumer base branding strategy will be followed to attain the goals. It is important to develop an impactful brand image. Business will

start a campaign on social media or Television for creating the brand image in the mind of targeted audience. The Brand will demonstrate

the story behind this business and the purpose. It starts when I read the book IKIGAI. The Japanese people believe the person who eats right

live long and happy life that’s why in Okinawa Japan people live 125 years of life. There is many other factors but it is the number one.

(Hector.G.,Francesco M., IKIGAI) Therefore, we can’t imagine how much important it is what we eat.
 ETHICAL CONSIDERATION

 Corporate social responsibility plays an important role in building brand image. We make sure that our H2 do not harm surroundings. And we give value
to all our associates.

 Our business will share 5% of the profit with different charities. Initially, it might be a lessen amount but with the growth of business
it will also enhance.
 The Business will also give special privilege to the employees in every matter specifically health.
 The most important is the food quality, not cause any health issue to any one.
 Last but the most important is “go green” Each item used for packing will make sure not harm the environment.
 Equality for all in everything.

 We will always consider 3R`S

 Reduce , Reuse, Recycle

 Financial Projection

•Our budget is $40,0000. We will spend 15% of our budget First year on advertisement for proper impact on the target market later

it will be 11.2% in year 2 and year 3.

•Total Population in Texas is 29million.

•Houston population 2.1 million

•51% is our target audience 29000000*51% = 14790000

•Tax rate is imposed 15.30%. (Diana Fitzpatrick, J.D)

•$400000*15%= $60,000 1st year advertising expense

 Healthy & Hygiene Online Food Maker
Income Statement
Budget 400000
Estimated Year 1 Year 2 Year 3

Sales $ 1,250,000 $ 2,500,000 $ 3,750,000

less: Discount $ 2,000 $ 2,000 $ 2,000

Less: Return $ 1,000 $ 1,000 $ 500

Net Sales $ 1,247,000 $ 2,497,000 $ 3,747,500

Cost of Items sold      

Material $ 150,000 $ 200,000 $ 250,000

Labor $ 8,000 $ 10,000 $ 15,000

Mobile Software $ 3,000 $ 1,000 $ 1,000

Total cost of goods solds $ 161,000 $ 211,000 $ 266,000

Gross profit $ 1,086,000 $ 2,286,000 $ 3,481,500

Operating expense      

Staff hiring $ 10,000    

Advertising ( 400000*15%) $ 60,000 $ 60,000 $ 30,000

Repair $ 1,000 $ 2,000 $ 2,000

Depriciation (50,000*2%) $ 1,000 $ 1,000 $ 1,000

Total operating income $ 1,138,000 $ 2,229,000 $ 3,448,500

5% Less: Charity 5% $ 56,900 $ 111,450 $ 172,425

Profit or loss before tax $ 1,081,100 $ 2,117,550 $ 3,276,075

15% less: Tax 15% $ 162,165 $ 317,633 $ 491,411

Estimated Profit $ 918,935 $ 1,799,918 $ 2,784,664

 PRODUCT INTRODUCTION AND GROWTH STAGE IN BUSINESS CYCLE

• The product life cycle has 5 stages Development, Introduction, Growth, Maturity, Decline
• We developed our Services/Product
• Introducing something new to market takes time, as how's the taste of food ?
• We took the strategy of Rapid Skimming.
• Further we describe previously in our market plan we use competitive pricing but still it will be low
to the competitors
• If they are selling at $5 we will sell at $4.
• Our Introduction stage will take time of approximately 1-2 years
• It is the time when people are curious to know about the service so right choice of attack will benefit
the business in long run.
 Growth

• As we read enter the market when it is in growing stage give huge profit without any wait as it’s the time of
being healthy and caring of yourself. Also pandemic makes home deliveries more demanding. (Shankar.V,
Greygory S. Carpenter, and Krishanurti.L, 1999)
• The growth period of our Service will start after 2 years
• We are new consumer will taste and if enjoy the service than recommend or spread something
good.
• Our time will start after 2 years.
• In this time period we will change out promotion strategy now the need is not to recognition. But
give the consumer wonderful deals.
• Better service or features will add.
• Value based pricing strategy will implement at this point.
 CONCLUSION

• H2 will become the choice of smart people. It is so convenient just order and have your meal according to your
diet plan. We want to enhance and appraise the health of people with meager amount. The plan is realistic no too
unimaginable. It is a wonderful opportunity to took the advantage of social distancing. Marketing plays a vital
role in capturing the mind of consumer. The budget is needed $500000. The best part is the services we are
going to deliver in form of eating plans. There is big share of Uber eats in Texas 46%. That is something hard to
shake But! We decide to deliver with our own vehicles. There is charity we mention in our plan that will go for
starved people. At the end, we believe we communicate our message rightly.
 References

B. Kathrina, 2019. From https://www.statista.com/chart/16796/us-interest-in-healthy-food/#:~:text=In%20a%20survey%20recently%20published,sometimes

%20scouting%20for%20healthy%20foods.

• Vast majority of Americans interested in healthy

• Shankar.V, Greygory S. Carpenter, and Krishanurti.L, 1999. The advantage of entering in growth stage of product :The empirical analysis. Journal of Marketing
Research, 36(2), 269–276.
• https://doi.org/10.2307/3152098
• Smith.D.L , 2016, 34 hottest healthy restaurant in America Retrieved from https://www.eatthis.com/hottest-healthy-restaurants/
• Sheth, J. (2021). New areas of research in marketing strategy, consumer behavior, and marketing analytics: the future is bright. Journal of Marketing Theory &
Practice, 29(1), 3–12. https://doi.org/10.1080/10696679.2020.1860679
• www.bebidashouston.com
• Thetruefoodkitchen.com