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Document Sample
Jurijs Jersovs
Nathaniel Borges do Canto
Spring 2012
Business Plan
Table of Contents
Overview 3
Market Opportunity 3-4
Demographic 4
How to Convince Customers 5-6
How to Influence the Consumer's Behavior 6-7
Embedded Value 7
Management 7-8
Product and Service Development 8
Our Strategy 8-9
Marketing and Sales 9-10
Key Steps Timeline 10
Financials 11
Funding 11
Design Plan
Style Guide
Site View / Wireframe (Features) 12
Page View(s) / User Interface Design 12-13
Navigation Design 13
Visual Design 13
Editorial Style 14
Technical Specifications
User Platform Requirements 14
Developer Platform Requirements 14
Test Plan
Consumer Testing
Design / Interface Testing 14
Navigation Testing 15
Usability Testing 15
Business Testing
Content Testing 15
Functionality Testing 15
Appendix 16
2
Overview
Company Name: This is Organic!
Team Members: Jurijs Jersovs and Nathaniel Borges do Canto
This is Organic! is an online delivery service that sells fresh, organic fruits and vegetables in
Fairfield County, and it strives to make healthy, natural produce a part of everyday life.
Market Opportunity
Our business will be located in Norwalk, Connecticut, and our market area is in Fairfield County.
With this location, we have the advantage of serving clients who live south, east, and north of us.
Our target audience includes those who are concerned with their health and seek a nutritionally-
balanced diet. We can be a source for parents who wish for their children to learn how to eat
healthy. Others may wish to consume produce that does not have chemicals or pesticides in it.
Chemicals are used in produce to extend shelf life, and studies have shown that they are
connected to the risk for disease among consumers.
According to Common Dreams' Demand for Organic Food Outstrips Supply, there is an
increased demand for organic produce by American consumers. The growth in sales of organic
food has been increasing at a faster rate (15 percent to 21 percent each year) than that of total
food sales (2 percent to 4 percent each year). Enthusiasts believe that eating organic can help
improve the environment and support the businesses of small-scale farmers. Although the
number of organic farms has been increasing, "organic manufacturers are still searching for
ingredients outside the United States." If produce is imported and has an organic label, it must
meet USDA standards in order to be sold and consumed in the country.
Not many organic products can be found in large supermarket chains. We can meet the growing
demand, because such firms have a limited supply available. Organic fruits and vegetables are an
alternative to conventional product. With the Internet, we can provide a direct, door-to-door
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delivery service. We provide convenience for our customers to log in and order our product.
Because of a busy work schedule, people have little time to research and do business with brick-
and-mortar stores. There is an opportunity for us to sell a variety of organic products online.
Demographic
We will place our focus on consumers who have children. Parents seek the best nutrition for their
children, especially for those who participate in organized activities such as sports and martial
arts. Single parents have the same desire, but may be too busy with work and education to be
able to find a supplier of organic produce. Our potential audience comes from the fact that
consumers may face a busy work schedule.
According to the Centers for Disease Control and Prevention, In the United States, thirty-five
percent of adults and seventeen percent of children and adolescents are obese. Some of its causes
include the lack of accessibility to healthy foods in supermarkets and school campuses as well as
the lack of advertisement for it. Obesity can increase the risk of conditions such as Type II
diabetes, high blood pressure, coronary heart disease, and joint deterioration. According to
Consumer Affairs, it may cause a "2-5 year decline" in life expectancy, causing children to live
shorter lives than their parents.
Our audience also includes those who are concerned about their own health as well as those who
consume such produce out of personal preference. Our demographic comes from those living in
Fairfield County who are aware of the growing problem of using chemicals for food production.
There is little access in the city for organic products from supermarkets and other firms that
provide food service. There is also a low number of organic products available, and even lower a
number for those purchased. As a result, we can take advantage of accessibility and supply in
order to attract customers.
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How to Convince Customers
To attract and keep customers, we will offer a variety of fruits and vegetables that are packaged
in three sizes. We will price Small boxes at $24, Medium at $34, and Large at $44. Delivery and
taxes are included. Small boxes will contain between eleven and thirteen types of produce,
Medium boxes fourteen to eighteen, and Large eighteen to twenty-one. A list of the items
included in the boxes is posted on our web site every three days before delivery. Every week, we
will include a new item. By proving a random variation, we will cut costs by balancing the
supply and demand of different fruits and vegetables. Otherwise, costs will rise from the
consumer demand for certain types of produce and, thus, the straining of supply. Variety will
also encourage customers to have a nutritionally-balanced diet. One cannot achieve this by eating
only a few kinds of fruits and vegetables.
Deliveries will occur between 10:00 AM and 4:00 PM, from Monday to Friday. Customers may
receive their produce on a weekly, biweekly, or monthly basis. Our location in the middle of
Fairfield country will provide us with a competitive edge, which will result in fast delivery,
reducing gas expenses, and minimized delivery times. Assigned delivery dates will depend on
the customer's location. Multiple areas are covered on different days of the week. We can deliver
to your home or office, as long as your zip code falls into the areas we can reach.
We will use a logistics system to provide updates and confirmation of the shipping of goods. We
do not have a return policy, but we guarantee that the produce will arrive fresh. If the customer is
not satisfied with the product, we will provide a refund. Because there will be a variety of goods
in one package, we will not refund those who are dissatisfied by the certain types of fruits and
vegetables that were sold to them.
One major competitor is urbanorganic.com. Their location in New York City gives the firm a
disadvantage, for it only makes deliveries to Connecticut on Thursdays. Our location allows us to
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have more delivery times in the county, and we are able to ship our product before Thursdays.
Mike's Organic Delivery, located in Greenwich, Connecticut, is another competitor that offers
the same service we will provide. We will compete against both of them, based on price, service
and quality of produce.
Brick-and-mortar stores, such as Whole Foods and Stop 'n Shop, are considered secondary
competitors. The latter, in particular, has a small variety of organic products available. Brick-
and-mortar stores cause their customers to go through the inconvenience of traveling to the
location to pick up what they have ordered. Our online business can provide our customers with
the convenience of purchasing and receiving their orders.
There are multiple ways we can provide customer service and satisfaction. Our customer service
line will be available on Mondays to Fridays, from 9:00 AM to 6:00 PM. Customers are able to
either cancel or make changes to their orders twenty-four hours before delivery date. We also
have an e-mail alert system that keeps us and our customers updated on orders, shipping, and
cancellations. We have a user-friendly web site, and we provide simple policies.
How to Influence the Consumer's Behavior
We are offering fresh, organic fruits and vegetables that are easy for the customer to place an
order and receive. Because we will make deliveries in Fairfield County, we are able to quickly
get orders out. We will allow customers to use coupons to save money on their purchases. By
using a Groupon, a customer can save $6 on the next purchase. Other coupons will provide a $3
discount. To redeem a voucher, a customer must either use a valid credit card when signing-up or
place an order for a recurring delivery. These and other promotional codes and discount vouchers
are only valid for one-time use and for new customers and/or delivery addresses. Our web
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application will not allow their use from customers with the same home/office and e-mail
addresses.
Unlike our competitors, however, we will implement a referral system. With it, we can give
existing customers an incentive to attract new customers. If the latter registers with a referral
code, then the former's delivery of a Small box will be free. We will also provide recipes and
storage tips, so our customers will be encouraged to try new produce and feel that their money
has been well spent.
Embedded Value
We deliver a variety of fresh, organic fruits and vegetables to homes and offices. On our website,
we will provide instructions on how to use and consume different types of produce. As a result,
we can not only encourage our customers to try new types of food but also convince them that
they received their money's worth. We will also deliver our product to small businesses, mom-
and-pop stores, and other firms who wish to do business with us. We can help increase the
accessibility and availability of organic produce to consumers living in Fairfield County. We also
hope that this can impact the health of our customers by giving them the opportunity to pursue a
nutritionally-balanced diet. By doing business with us, they can help make an impact in the
environment and reduce their ecological footprint.
Management
Jurijs Jersovs has knowledge of what one needs to have and maintain a healthy, nutritionally
balanced diet. His knowledge of organic fruits and vegetables will play a role in how to create
supply for our product. He is currently running a small business and has experience in the field.
Nathaniel Borges do Canto has knowledge of the financial field with some experience in
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providing customer service. This will play a role in influencing the business's behavior towards
providing quality service as well as customer satisfaction.
Product and Service Development
Our web site will be available on the last week of April 2012. Our business will depend on the
functionality of the site, which will allow us to perform actions such as order tracking, updating
schedules, and e-mail notifications. Our produce will be grown in-country during the on-season,
and we will reach out to our suppliers during the rest of the year. For example, during the non-
season, we may receive pineapples from suppliers in Hawaii, and mangos and avocados from
those in Mexico.
There will be many risks to constructing and maintaining the web site. The payment process is
vital to earning sales. The seasonal schedule must be followed and updated in order to keep
customers informed. Feedback and cancellation requests are needed to compensate dissatisfied
customers and learn how to improve our service. The upkeep and preservation of produce are
essential to customer value.
Our site includes informational pages on the product included in the variety boxes, such as
descriptions, expiration dates, recipes, and tips on preservation and use. This will encourage the
customer to make use of the product as well as maintain the worth of their purchase. We will
also inform customers on who will supply us with non-seasonal product.
Our Strategy
Businesses that specialize in the produce delivery service have motivated us to create one that
will set a new benchmark in the industry. Although we will focus on those who are concerned
about their health, we seek to provide organic fruits and vegetables to other kinds of consumers.
Unlike our competitors, we do not provide customization. We want to encourage our customers
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to not only try new produce, but also gain and maintain nutritional balance. As a result, we will
be able to help them make the most of their purchase. We seek to provide convenience in our
delivery of fresh produce by serving those living in Fairfield County.
Marketing and Sales
We will use print ads on local newspapers and magazines to raise awareness of our business. We
will also place advertisements on cable channels such as Food Network. To reach out to potential
and current customers, we will take advantage of social networking sites, such as Twitter and
Facebook. Pay-per-click advertisements will not only help us spread awareness but also cut our
costs (compared to other types of web advertising). We will also use Groupon, coupons, and
other discount vouchers to give customers a greater incentive to do business with us.
We will have partnerships with local mom-and-pop stores and local small-to-medium
restaurants. Within our web site, we will frequently e-mail clients about coupon offers and our
referral system. We will also inform customers about what types of produce will be available for
different boxes on a weekly basis. Electronic gift cards are issued and will have no expiration
date.
To earn sales, we provide a detailed description of our produce. Informational pages will help
customers know what to expect from our produce and service, and a feedback system will
encourage them to interact with us. We can track buying data from consumers to discover trends.
As a result, we can find other ways to increase sales and, thus, profitability. We can increase the
incentive to purchase from new and current customers by providing them with free shipping.
Our site has a Frequently Asked Questions page which can help customers resolve any issues
with their purchase or our service. Those not resolved by it can be managed by the customer
service line. E-mail alerts can update customers on shipping process and updates on orders and
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the schedule. As a result, we can keep the customer informed and provide satisfaction. The size
of the target market in dollars is about $300,000 per year. The number of prospective customers
for our business is approximately ten thousand.
Key Steps Timeline
Weeks
Tasks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Business determination/
registration/ professional
advisement
Legal
Procedures/License/Insurance
Set Target Market
Competitor Analysis
Business Plan
Web-Site Development/Testing
Agreement with Distributors
Selection and Purchase of
companies vehicle
Selection of office/warehouse space
Office/warehouse organization.
Training of employee
Marketing Campaign Preparation
Selection of supporting software
License/ Insurance
Financial Plan
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Financials
Year Year 1 Year 2 Year 3
72,800 157,500 227,500
Sales (2080*$35.00) (4500x $35.00) (6500x $35.00)
Cost of Goods Sold 50,000 $135,000 $205,000
Labor Cost 5,000 5,000 5,000
Gross Margin 62% 83% 88%
Operating Income $45,000 $130,000 $200,000
Expenses
Payroll 38000 $52,000 $80,000
General and Administrative $3,500 $2,500 $2,500
Marketing Expenses $12,000 $12,500 $13,500
Professional Fees and Licensure $11,000 $11,000 $11,000
Travel and Vehicle Costs 37,400 19,500 $21,500
Rent and Utilities $8,000 $8,200 $8,500
Miscellaneous Costs $1,000 $1,900 $3,000
Total Operating Costs $110,900 $107,600 $140,000
EBITDA ($65,900) $22,400 $60,000
Federal Income Tax 0 8500 $15,500
State Income Tax 0 $1,500 $3,500
Interest Expense $2,000 $1,800 $1,500
Net Profit ($63,900) $10,600 $39,500
Profit Margin - 6.73% 17.36%
Funding
Projected Startup Costs
Business Startup Year
Year 1
Initial Lease Payments and Deposits
$7,000
Working Capital
$17,000
Company Vehicle
$15,000
Website Development
$20,000
Marketing Budget
$8,000
Miscellaneous and Unforeseen Costs
$3,500
Total Startup Costs $70,000
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Design Plan
Style Guide
Site View / Wireframe
Home
Coupons
Sign-In
Refer a Friend
Register
Services Shop This Week's FAQ Contact Us Why Choose
Harvest Us
Page View
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Navigation Design
The navigation bar will always be at the top of the page. Links regarding account creation and
management, coupons, zip code availability, the referral system, and customer service will
appear in the right margin on the home page. Our business logo will always be located in the
upper-left corner of the page, and clicking it will return users to the home page. Our phone
number is in the upper-right and bottom-left corners of every page. Both new and returning
visitors will find it easy to both navigate the site and use our services.
Visual Design
All of the pages on our web site will have a few, warm shades of green to represent the themes of
environmentalism and the consumption of organic produce. The color white is chosen for the
body of every page to make it easy for visitors to read the information. The design is not meant
to overwhelm them, but provide the feeling of warmth and simplicity as they navigate through
the site.
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Editorial Style
The content of the web site is written as though we are speaking directly to visitors. It is easy to
understand, and does not use industry terminology that can leave them overwhelmed or
confused. For pages such as "This Week's Harvest" and "Why Choose Us," we organize the
information to be quick and easy to read. The FAQ page has a simple question-and-answer
format, so visitors can easily skim through the list of questions to find what needs to be
answered.
Technical Specifications
User Platform Requirements
Our web site is compatible with any Windows and Mac operating systems. An Internet
connection and a resolution of 800 x 600 are required. Our site will work perfectly on Internet
Explorer. However, it may not be compatible with other Internet browsers, such as Firefox,
Chrome, and Safari. After launch, we will remedy this issue. It is important that we make our site
easily compatible with whatever operating system or browser our visitors will use. Pages such as
registration, sign-in, testimonials, recipe, storage tips, and order tracking will work after the web
site service changes from free to premium.
Developer Platform Requirements
We are using Wix to create and maintain the web site.
Test Plan
Consumer Testing
Design / Interface Testing
The appearance of the site is simple and attracts the visitor's attention. Every page on the site will
have the same appearance for functionality purposes. The body of each page will be different in
terms of what information is provided in each page.
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Navigation Testing
The navigation bar will always be on top of every web page. The additional links will remain on
the bottom. The links that appear on the right margin of the home page will disappear when
navigating. However, clicking on the Home button or the business logo will return the user to the
home page. Visitors will always find a way to be able to sign in or register an account. More
importantly, they will never feel lost when navigating and will find a way to reach a desired
page.
Usability Testing
Testing will be done on fields involving the creation and management of accounts and orders, the
availability of delivery, the usage of coupons, and the referral system. It is important that
customers are able to interact with the web site and for us to be able to receive and store their
information.
Business Testing
Content Checking
To improve the stickiness of the web site and maintain business, content such as the weekly
harvest and the availability of delivery must be updated. Our customers must know what types of
fruits and vegetables may be in their order for each delivery. Because the availability of delivery
will be subject to change, updating our list will open ourselves to a larger pool of potential
customers.
Functionality Testing
All pages must work and be easy to access for visitors. The most complex feature of our site is
managing orders and accounts, for is it essential to both our site and the business.
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Appendix
"Demand for Organic Food Outstrips Supply." Common Dreams. July 7, 2006.
http://www.commondreams.org/headlines06/0707-04.htm
"Overweight and Obesity." Centers for Disease Control and Prevention. October 21, 2011.
http://www.cdc.gov/obesity/
"Childhood Obesity Shortens Life Expectancy." Consumer Affairs. January 16, 2011.
http://www.consumeraffairs.com/news04/2011/01/childhood-obesity-shortens-life-
expectancy.html
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