Business Idea and Components of Business- MyAssignmenthelp.com

Question: Discuss about theBusiness Idea and Components of Business Model. Answer: Introduction The business idea that I have chosen for the new venture is an organic product line and a movable organic food delivery service. The risk of obesity is increasing in Australia; according to statistics around 63% adults are overweight and suffering from obesity (AIHW, 2017). This has led to the demand of healthy and chemical free food products which can contribute in developing healthy eating which will result into a healthier lifestyle. My business idea includes organic products which will include organic food products such as cold pressed juices, organic snacks, vegetables, fruits and organic baby food products. Food delivery market has been growing at a rapid pace over these years. Every individual is willing to pay more for the sake of convenience and saving time. According to the data, Australian audience visit fast food outlet 51.5 million time per month, which has significantly increases the risk of diabetes and other heart diseases (Campbell, 2016). This has generated the need for healthier eating outlets (BBC, 2017). The food delivery service will be initiated in a van which will be placed at major outlets of the city. The ingredients used will be organic and fair trade marked. Fair trade products will not only help the business to achieve sustainability but also improve the lives of farmers (Foe, 2017). The Food delivery service will include breakfast, lunch and dinner boxed meal which will be healthy and tasty. Organic food is many times associated with green vegetables and that is why kids and adults dont find them tempting enough to switch them with their fast food options. But the menu of the organic food will consist of variety of delicious and healthier options which can attract the crowd. Business Model Components: A business model shows the how an organization will operate into the future, what will be their main business, how they will approach the target audience etc. The components of business model with respect to my business idea are: Product and services: The product line that will be offered by the new business venture is organic food products and organic meal services by a food delivery van. They will provide the meal boxes of Breakfast, lunch and dinner. Value proposition: With the increased consumption of fast food among the Australian public has led to the increase in the demand for the organic and healthy food products. The organic products will be fair trade marked and the ingredients will be of organic grade quality. Target Market segment: The target market for the food delivery service will be office going individuals because they are not able to cook a healthy three time meals for themselves due to lack of time and fast paced corporate life. As a result they rely on fast food which increases potential health risk. The target market for organic products will be every individual of Australia. The range of products will satisfy the need of adult, babies and senior age people. Distribution channel: The distribution channel for the food delivery service will be through delivery vans placed at every convenient location of the city. From malls to parks, the food will be available to everyone. The reason for choosing a van rather than a caf is because the venture is new; deliver van is a more feasible option than a caf. Organic food is generally priced on a higher side than the fast food. In order to persuade people to try out menu options the operation cost should be controlled so that they dont reflect in the food prices. The distribution channel for the organic food products will be through retail outlets such as Woolworths and Coles. The product will be fairly priced so that they can catch the attention of the audience. Pricing Strategy: As mentioned above the fast food is less expensive than the organic food but the health cost in consuming the fast food is much high. The pricing method used will be cost plus pricing method which will include the delivery van rent and cost involved in making and delivering food and organic products will be considered. The profit margin should be kept low in order to survive the competition. Competitors: Australian food market is flooded with many organic food caf chains such as AboutLife, Earth to table, Thrive etc. (The fit foodie, 2014). But what differentiates our product is a delivery van offering organic meal boxes at affordable prices. In the retail industry there are many competitors but the target market of our product is vast and offers to fulfill the needs of larger audience. References: BBC (2017)The risks of a poor diet and being overweight.BBC, London. Retrieved fromhttps://www.bbc.co.uk/worldservice/sci_tech/features/health/healthyliving/dietrisk.shtmlon 10 May 2017. AIHW. (2017). Overweight and obesity. Retrieved from https://www.aihw.gov.au/overweight-and-obesity/ on 10 May 2017. Campbell, L. (2016). Shocking Statistics That Illustrate Australia's Obesity Problem. Retrieved from https://www.huffingtonpost.com.au/2016/02/24/australia-obesity-statistics_n_9154422.html on 10 May 2017. Foe. (2017). The benefits of Fairtrade. Retrieved from https://www.foe.co.uk/living/articles/benefits-fairtrade on 10 May 2017. The fit foodie. (2014). TOP 10 HEALTHY EATS IN SYDNEY. Retrieved from https://the-fit-foodie.com/top-10-healthy-eats-sydney/ on 9 May 2017.