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6. Organic Diet Delivery Business Model
6.1. Value Proposition
Healthy Diet Co. value proposition is the offer of organic meals with delivery service. Meals are adjusted to a diet plan which will be in accordance to the gender, age and lifestyle of the end customer. The diet plans will be created by a nutritionist in collaboration with our chef. Not only will Healthy Diet Company offer high quality organic meals, but also convenience to its customers helping to solve their weight problems without undergoing stress in looking for healthy food or investing time in looking for recipes and preparing them. As a result, Healthy Diet Co. aims to meet the need of healthy meal options in the market by introducing a new product that makes life for the customer more convenient. Meals will be pricy. However, they will be characterized by their freshness and their nutritional value.
6.2. Customer Segments
As mentioned in previous chapter, Healthy Diet Co. will target a niche market. It offers a product that connects organically produced food to a diet delivery service. The customer segments will be the following:
Women and men who care about their health and the environment, and have difficulties to cook a healthy meal at home.
Parents who are concerned of the weight and nutrition of their kids
Women and Men who suffer from diabetes and need to follow a strict diet
At the beginning, most of them will belong to the high income and highly educated segment of the population since they will be the ones able to afford the premium price. In the future as organic food becomes more affordable, the focus differentiation strategy should be reconsidered
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in order to allow organic food meals to reach other customer segments such as middle income population, who have also overweight problems and time constraints to be able to start a diet.
6.3. Customer Relationship
The target segment Healthy Diet Co. aims to serve is really demanding. It is important to invest in the establishment of a comfortable and strong relationship. We will approach most of our customers personally. In order to buy the meals and take a greater advantage of all the information we will offer, they will have to subscribe to our webpage. We have to take into consideration that some of our customers might feel that they are not getting a personalized service if they just go to the website. Hence, a sales assistant will handle those customers who will like personal assistance. In this case the assistant will guide them and, if necessary, teach them how they can order, pay and see the information available. The sales assistant will also handle complaints or special requirements of our clients.
6.4. Channels
Since Healthy Diet will be serving demanding customers, the best way to approach them at the beginning is through personal visits in order to explain in better way the benefits of Healthy Diet Co. meals and the convenience to order them. Our sales assistant can make appointments to explain how the website works. It is very important that every client opens a user account, making it easy for us to contact them through mail or phone in case it is necessary and for them to place the orders and to participate in any promotion that we might have. Our sales assistant’s duty is to teach the clients how the website works and he should be available to help if a client has any issues in relation to the service provided. The company will only accept orders and payments done through the website to avoid the risk of personnel to manage cash.
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The ideal situation is that all our clients decide to use the website without been assisted by our personnel in order to be more cost efficient. The company will also use social media as a channel to promote the products and raise awareness. Healthy Diet Co. will constantly do surveys to our clients to know if they are satisfied with our services, what we could improve and which other products or services we could offer for them to help in their health improvement.
6.5. Key Activities
The key activities needed to make Healthy Diet Co. a quality organic meal provider are the following:
Provide quality organic produced food
Make on time delivery of the meals ordered
Establish and maintain relationship with suppliers to have a wide range of food varieties in the menu
Establish and maintain relationship with nutritionist
Provide a user friendly online platform
Provide to our customers news and information related to health, organic food and the environment.
Raise awareness of health and environmental problems through marketing campaign in collaboration with our key partners.
6.6. Key Resources
As the only company in Honduras to offer organic meals, it is necessary to have some key resources in order to maintain the competitive advantage. The main ones are the following:
Organic Food: The supply of the organic food is the key for the functioning of the
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company; the variety and quality of the products should be essential in order to maintain the competitive advantage over possible competitors.
Website: Since our website will be the main channel to reach our customers, it is crucial for it to be user-friendly and effective. It will provide the customers with information of the meals we offer, news on the latest organic trends worldwide and advices to keep a healthy weight. On the other hand, it will provide statistics to the manager who is concerned about the sales and customers to make informed decisions.
Chef: The chef is key for the preparation of the meals. He or she should work at the beginning with the nutritionist to design the meals. Then the chef will be in charge of preparing the meals together with two assistants to ensure that the final meal meets the specification of quality and specifications of the customers.
Kitchen and business headquarters: The meals should be prepared with high standards of quality and hygiene; therefore, a place will be provided for the chef to make the meals. The office should be in the same place in order to have a better communication among coworkers and deliver what the customer wants.
Customer Service: High income customers are a really demanding segment; therefore, having personnel to deal with any problems that might arise in relation to our customers is the key to maintaining the sales and keep their loyalty.
6.7. Key Partners
Healthy Diet Co. needs the collaboration of key partners to acquire particular key resources and to obtain help in some activities that will help us obtain customers and raise the awareness we need to accomplish our mission.
Pan American School of Agriculture: The University can serve as our key supplier of
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organic food. As it has been mentioned before, this university could be considered a possible competitor. Although taking it as a supplier might be risky, it can give us a better image considering that we are a startup and we need strong partners to add value to our brand.
Healthy Organic Food producers of Lepaterique: Based on our long term goal,
Healthy Diet aims at incentive organic farmers and, therefore, the agricultural school cannot be our only supplier. This group of producers can be a second supplier helping us have enough organic food to prepare the meals.
Orgánica Store: Besides the local suppliers we would like to have also as a supplier
the Organic Store since they import all types of organic food and Healthy Diet Co. might not always obtain all organic ingredients throughout the local suppliers.
Nutritionist: It is essential to maintain a relationship with a nutritionist to create our menu and in case modifications to diets should be made later on. A nutritionist also adds credibility to our image of being healthy, so that the option for our clients to make an appointment with one should be one of our priorities. Healthy Diet Co. can send customers to the nutritionist and the nutritionist can also suggest our meals to other clients.
In order to accomplish successfully one of our key activities that is to raise awareness of health and environmental problems, we need the collaboration of strong institutions which include:
World Health Organization:
Government
National Diabetic Center
Private schools and Universities
Collaborating with these institutions will add credibility to our work since our customers will
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be aware that Healthy Diet Co. is doing everything possible to meet high standards.
6.8. Revenue Stream
The main source of revenue for the company will be the sale of the organic meals which will be offered in weekly or monthly plans paid up front through our website.
6.9. Cost Structure
Healthy Diet Company is more value driven, offering a premium value proposition.
Its cost structure will consist of:
Fixed Costs: Rent, Salaries, annual organic certification, webpage domain fee, inventory of ingredients.
Variable Costs: ingredients of the meals, supplies, energy and water fees, packaging supplies, PayPal commission fees, advertisement.
Financial Costs: Financial interest derived from loans.
More expensive resources of Healthy Diet will be the ingredients of the meals and the payment of the human resources. However, we expect a growth that will allow us obtain bargain prices from the suppliers.
6.10. Business Model Conclusions
Healthy Diet Company will offer organic diets and delivery service to its customers, characteristics that together will make of it a unique company in the Honduran market. The company is targeting a small segment of the population, which includes health and environment concerned individuals. We are aiming to use different channels that include personal visits and
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also website and social media to introduce our products to potential customers. To maintain our value proposition it is required a strong relationship with key partners such as the suppliers and the nutritionist. These and other key partners will help us add quality to our brand and they will help support our key activities in order to be successful in the long term. The source of revenue of the company will be the sales of the meals and its cost structure includes fixed and variable costs such as employees’ payments, fees of website, marketing expenses and others. All of these characteristics will make of Healthy Diet Co. a new and different business model in Honduras.
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Key Partners Key Activities Value Proposition Customer Relationship Customer Segment
● Organic healthy Meals ● Self Service
● Diet Plans
● Nutritionist Delivery of meals ● Delivery Service
World Health Organization
Government
● National Diabetic Center Provide online platform
Key Resources Channels
Organic Food Business Website
Website Personal Visits
Chef ● Social Media
Customer Service
Cost Structure Revenue stream
Sale of organic diet meals
Financial Costs: Financial interest derived from loans
Fixed Costs: Rent, Salaries, annual organic certification, webpage domain fee
Variable Costs: ingredients of the meals, office and kitchen supplies, energy and water fees, packaging supplies, PayPal commission fees, advertisement
Parents who are concerned of the weight and nutrition of their kids
Women and Men who suffer from diabetes and need to follow a strict diet
● Personal Assistance
Provide to our customers news and information related to health, organic food