Essay: Assignment: Fruit's Paradise – a business proposal

Introduction: Fruit’s Paradise ‘Eat Fresh, Live Long’
According to our learning schedule, I have been asked to establish my own business. My business needs to promote healthy food in New Zealand. My business is named ‘Fruit’s paradise’ and our product will be assorted fruit bowls for people on the go and are looking out for healthy eating options. Fruit’s paradise will be located in Britomart on Queen Street in Auckland CBD. (See Appendix 1, Page 7). Fruit Paradise’s would target anybody above the age of 5. (See Appendix 2, Page 7, 8). My target is to create a brand and attract attention for healthy eating and also address the obesity problem. My channels of distribution for my product would be direct sales, online ordering and home delivery within a fixed kilometer radius. This report will shed light on my marketing strategies and business development plans. I will be talking about internal and external marketing environments and how my business will cope up with possible threats and also how we run our marketing information system.
Marketing Mix:
Product:
Me in my late 20’s, one big problem that I fight is obesity, This is when my product will come in handy and at the same time healthy, A mixture of different kinds of fruits in equal proportion with nutritional values will be helpful in cutting down the obesity numbers in auckland. In our store we will be displaying different fruits from which our customers can choose and make their own customized fruit bowl. I will also take in requests from my customers through our official website incase if they require a certain fruit which is not available in Auckland, and try to cater to their requests. Just to add to this we would also have a loyalty program through which we would post the picture of our most regular customer. This would encourage everbody so be more reciprocal and make freques=nt trips to our store.
Place:
Fruit’s paradise is a B2C, My clientele in Auckland will have the capacity to buy fruit bowls by visiting our outlet or by ordering online on our official website from anyplace in Auckland, which will then be delivered to the provided address that has been given if in our delivery area range. Our business is also ready take up outdoor catering assignments in and around Auckland CBD.
Pricing:
The main pricing strategy of Fruit’s paradise is psychological pricing as my target market is mainly anybody above the age of 5. A small fruit bowl will be priced at a flat rate of $4.99 as if they go to any supermarket they would probably get only one kind of fruit rather than a assorted fruit bowl. I will be also doing weekly ‘specials’ to try and entice locals to try my product, This will also make my product look more attractive and shorten the buyer’s decision process. I would also implement penetration pricing, by pricing my product very less for the first few weeks of opening, This also help in creating hype and word-of-mouth for my product. Once we feel that our product is well established in the market then we could increase prices to suit break even with our investments.
Promotion:
Fruit’s paradise will be running a weekly lucky dip and will choose one winner.
The winner would be presented with a Fruit’s paradise gift voucher. They could redeem that for a fruit bowl. The winners name and picture will be posted on our site and also our instore news boardso that customers walking in and browsing our site can see and make it more close to heart and personal. As per the theory I could link it to Maslow’s ‘theory of motivation and hirerachy of needs’ theory and would be the ‘Esteem’ at level 4 for its recognition, achievement and feeling of accomplishment . To promote my business and my product I will use social networking sites like youtube, Linkedin, Tripadvisor and Facebook to promote my business. Social networking is cost effective and is a easy and reliable way to reach my target market. (see statistics in appendix 3 , page 8 )
PESTE (Demographic and Cultural) Analysis:
PESTE (Demographic and Cultural) is also referred as Macro environment. Macro environment consists of external factors like political, economical, social, technological, environmental, demographical and cultural. These factors affect the microenvironment. (Reding, 2015)
Political:
As a new business we have to relie a lot on poitive advertising, to achieve a positive and better place in todays competetive market, this can be possible by our customers postive mouth to mouth promoting. To attract a positive response we always have to make sure that the hygine and quality of our product is at its best. This is not only to stay away from legal issues but also penalities (New Zealand Legislation, nd).Fruit’s paradise being a new business and our fruit bowls not tried by anyone before its our first priority to make sure to meet the hygenie standards and if we do not then should probably compensate the customer with a refund or a free product.
Economical:
Economical factor has adverse affect on any business in todays world. Economical distress can be caused by various reasons such as rise in inflation rate, rise In interest prices, Jobs lost and many more factors. The nagative effects of this is consumer will drop his expenditure, Business closure. All the above factors will affect my business as the consumer expenditure will come down (Reserve Bank Of New Zealand, 2013). If there is a economical distress that means demand for Fruit’s Paradise will fall and I would lose out on my business.First step that I would take is that I would decrease the price on my product but as a business if this runs for long then would not be able to survive and would have to close down.
SOCIAL:
According to the Statistics New Zealand (see statistics in appendix 4, page 9) NZ Social indicators show that New Zealalnd stands no. 3 in obesity rates in the world.This is very alarming, As compared in the stats people in their mid 40’s are leading the scale. As we know New Zealand produces a large amount of good and healthy food like Vegetables, fruits and meat but the big question is how many of low income families can afford everything? The answer is not many so the only other option that they have is Fast food and junk food.Looking at this trend I came up with this idea of healthy fruit bowl’s at low prices, This gives them a chance to eat healthy food.This also give me an opportunity to promote and allow all consumers from all socio economic groups to purchase my product and live healthy.
TECHNOLOGICAL:
In the times of plastic money, not many people carry hard cash. Catering to consumer needs is first in order, to make sure there is no delay in the billing process. I will have 2 billing counters with EFTPOS manchines and also an other one machine as backup if incase there is a breakdown. As mentioned above our main source of advertising and promoting and also sales is online and this requires a reliable broadband connection.I would make sure I would hire the best broadband service provider in town.This would let me keep tab on emails, online orders, and conduct our weekly lucky dip.
ENVIRONMENTAL:
Fruit’s Paradise as a environmental friendly organisation, we would be using Polylactic acid (PLA) or “corn plastic” bowls(Biodegradable Store, 2015). These bowls are biodegradable and compostable as well. As an eco friendly organisation we need to be agile and vigilant about the kind of plastic bowls that we use and what harm that they can do to the environment. In a few weeks of opening I would start giving discounts to the customers who bring their own take away containers. As an internal procedure we would also create a compost pit in the near by farms to dispose all the fruit waste and skin. This would enrich the soil. (appendix 5 , page 9 )
DEMOGRAPHIC/CULTURAL:
In 2014 the population of Auckland has touched an all time high of 1.42 million and accounts for a 32% of the whole New Zealand’s population. According to the statistics, Auckland is emerging as a big and most visited tourist location. The census conducted in 2006 shows us the different ethnic groups who reside, come to Auckland.(World Population Review, 2014). Auckland’s population is dominated by European New Zealanders with a 56.5% total population.
As a matter of fact Fruit’s paradise deals only in fruit and byproducts of fruits.So this gives us a reason not to worry about diary products and halal issues with meat products. I am not required to offer halal meat in order to provide for my target market. Auckland’s demographic and cultural groups are ideal for maximum sales and revenue. (Appendix 6 , page9-10)
Target Market:
Britomart on Queen Street serves around 21000 people on a weekday.
(Auckland Transport, 2015). Looking at the above numbers Fruit’s Paradise has a huge target market; anybody above the age of 5 is a potential customer for our product. With the above mentioned numbers it can consist: – Business people, Families, School students, university students and other working class.
Internal Marketing:
Internal Marketing means that the firm must train and motivate its employee and support them to work as a team. (Kothler, Bowen, & Makens, 2014, p. 40)
Fruit’s Paradise will have a team of 3 well trained staff including me for the store, A separate person for delivery. All my staff needs to well trained and have indept knowledge of my product and services. Training and motivation will be my top most priority for them. With the training I dream to achieve the highest level of job satisfaction. I would also try to provide them with as many employee benefits possible. This should keep them from quiting. To add to the above benefits I would also have a incentive program for the best performer on a monthly basis.
I would also make sure that the person on delivery be trained on special road safety skills, would also check if he has a full and valid license to drive in auckalnd.This also makes sure that we don’t have any legal issues.
Handling till is one of the risky jobs in a business. Just to make sure that the business is running smoothly when I am not available, I would train my employee’s on how to use the eftpos machine and also the micros system.
MIS System:
Marketing information system (MIS) is a tool for management for developing stratergies. (Reding M. F., 2015)
A marketing information system (MIS) is the means by which data can be stored, manipulated and accessed when needed. (Boaz, 2006)
Marketing Information System is important for any business as it allows the business/Organistaion to do a environmental scanning and also keep track of social trends so that we could agile and vigilant.
We at Fruit’s paradise would use our MIS for our customer details, sales and revenue information, Maintain our Employee details, Supplier and distributors details. It would also help us in maintaining our market research and analysis records and the most importantly our competitors details. MIS will also help us in maintaining our loyalty programm members details.
Customer Evaluation/Market Research:
Market research involves the systematic collection of data and analysis of the data to a given question or problem. (Boaz, Marketing In New Zealand, 2006)
Fruit’s Paradise will depend on its target market for its Market research. I would be handing out a questionaire to all the walking guests to fill up. This would become my primary research. This is not a cost effective method but we will be able to analyze and record our results in our MIS. The seond way would be by using our social networking sites.The biggest draw back by using our social networking site is that this research will only reach the few who are connected with us on our social pages.
Suppliers:
Althrough New Zealand I was able to identify only 2 suppliers who would be able to supply me with fresh produce. One of my supplier ‘Fresh Direct’is located in Auckland and just a few mins drive from our store in Auckland CBD. And the other supplier is ‘Chevalier’ whose also is located in Auckland. The reson behind choosing these suppliers is that they can do bulk orders and also import other seasonal fruits from other parts of the world.The second reason for selecting them is that the transportation cost is quiet low because of the same city.These supliers prove me with the best high quality produce. The third supplier for Fruit’s Paradise is Biodegradable store who would supply us with biodegradable bowls. This ensures that we are also environmentally responsible.