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(1)國立政治大學商學院國際經營管理英語 碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文 政 治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 有機餐食配送公司之商業計畫 n. al. er. io. Business Plan for an Organic Diet Delivery Company. Ch. engchi. i n U. v. Student: Vivian Peralta Advisor: Professor George Kuo. 中華民國一〇四年六月 June 2015.

(2) 有機餐食配送公司之商業計畫 Business Plan for an Organic Diet Delivery Company. 研究生:葛玉芬. Student: Vivian Peralta. 指導教授:郭維裕. 政 治 大 國立政治大學. 學. ‧ 國. 立. Advisor: George Kuo. ‧. 商學院國際經營管理英語碩士學位學程 碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfilment of the Requirements for the degree of Master in Business Administration. 中華民國一〇四年六月 June 2015.

(3) Acknowledgements I dedicate this achievement to God, who has blessed me with so many opportunities in life; my family who have always given me their unconditional support and my Fiancé who has been there to encourage me.. I would like to thank my friends from the IMBA program who have helped to make this IMBA journey an amazing experience, Professor George Kuo who has guided me through the writing. 政 治 大. of this thesis and the IMBA staff who has always been there to assist in every way possible.. 立. Finally, I would like to thank the International Cooperation & Development Fund (ICDF) for. ‧ 國. 學. giving me the opportunity to study in this program and Mr. Frank Chang for his help and. ‧. guidance throughout these two years.. n. er. io. sit. y. Nat. al. Ch. engchi. i. i n U. v.

(4) Abstract Business Plan for an Organic Diet Delivery Company By Vivian Esther Peralta Garcia The Organic Food Industry worldwide is at its growing stage, farmers already discovered the advantages of becoming certified organic producers and consumers are starting to value the importance of consuming organically produced food. In Honduras, the industry is still at its. 治 政 embryonic stage since few farmers are able to invest time大 and money to obtain certification and 立 demand is still low due to the lack of knowledge of a large number of consumers. However, ‧ 國. 學. there is opportunity to introduce the organic food consumption trend in Honduras which could. the population.. ‧. help fight nutrition problems, such as overweight and obesity, which affect certain segments of. sit. y. Nat. n. al. er. io. In order to analyze the feasibility of the organic diet delivery company this document presents. i n U. v. data of the organic food market worldwide as well as information of the organic food supply. Ch. engchi. and demand in Honduras. Healthy Diet Company is introduced and a business strategy is developed in order to enhance the strengths and work on fighting possible threats in that industry. A marketing strategy is also presented to ensure the correct introduction of the organic food diets to the target market to make the business successful. Finally, the Business model of the Organic diet delivery company is presented which provides the key factors needed for its success.. Keywords: Organic Food, Diet Delivery, Overweight.. ii.

(5) TABLE OF CONTENTS 1.. Introduction ...................................................................................................................... 1. 2.. Overview on the Organic Food Industry ........................................................................ 2. 2.1.. Organic Food Supply .................................................................................................. 3. 2.2.. Organic Food Demand ............................................................................................... 5. 立. 政 治 大. 2.2.1. Organic Food and Healthy Lifestyle Concept ........................................................ 6. ‧ 國. 學. Overview of Organic Food Market in Honduras .......................................................... 8. ‧. Supply of Organic Food in Honduras ........................................................................ 9. sit. y. Nat. 3.1.. io. 3.1.1. Organic Producers .................................................................................................. 9. n. al. er. 3.. Ch. i n U. v. 3.1.2. Processing and Commercial Companies .............................................................. 12. engchi. 3.1.3. Certifying Agencies .............................................................................................. 13. 3.2.. Demand of Organic Food in Honduras .................................................................... 14. 3.3.. SWOT Analysis of Organic Food Industry in Honduras .......................................... 16. 3.3.1. Internal Factors – Strengths and Weaknesses ....................................................... 16 3.3.2. External Factors – Opportunities and Threats ...................................................... 17 3.3.3. Competitive Forces ............................................................................................... 18. iii.

(6) 4.. Business Strategy ............................................................................................................ 20. 4.1.. Competitors Analysis ................................................................................................ 20. 4.1.1. Panamerican School of Agriculture ...................................................................... 20. 4.2.. Healthy Diet Company Description ......................................................................... 21. 4.2.1. Vision .................................................................................................................... 22. 政 治 大. 4.2.2. Mission ................................................................................................................. 22. 立. 4.4.. Strategy and Key Success Factors ............................................................................ 23. ‧. ‧ 國. 學. Goals......................................................................................................................... 23. y. Nat. io. al. v. Market Segmentation ................................................................................................ 28. n. 5.1.. sit. Marketing Strategy ........................................................................................................ 28. er. 5.. 4.3.. Ch. engchi. i n U. 5.2.. Market Targeting ...................................................................................................... 29. 5.3.. Marketing Mix .......................................................................................................... 30. 5.3.1. Product .................................................................................................................. 30 5.3.2. Price ...................................................................................................................... 31 5.3.3. Place ..................................................................................................................... 32 5.3.4. Promotion ............................................................................................................. 33. iv.

(7) 5.4.. Organic Diet Delivery Business Model ......................................................................... 35. 6.1.. Value Proposition...................................................................................................... 35. 6.2.. Customer Segments .................................................................................................. 35. 6.3.. Customer Relationship ............................................................................................. 36. 6.4.. Channels ................................................................................................................... 36. 6.5.. Key Activities ............................................................................................................ 37. 6.6.. Key Resources ........................................................................................................... 37. 6.7.. Key Partners ............................................................................................................. 38. 6.8.. Revenue Stream ........................................................................................................ 40. 6.9.. Cost Structure ........................................................................................................... 40. 立. 政 治 大. 學. ‧. ‧ 國. io. sit. y. Nat. n. al. er. 6.. Marketing Strategy Conclusion ................................................................................ 33. Ch. engchi. i n U. v. 6.10. Business Model Conclusions .................................................................................... 40. 6.11.. 7.. Business Model Canvas ............................................................................................ 42. Conclusion ....................................................................................................................... 43. Reference ................................................................................................................................. 44. v.

(8) List of Figures and Tables Figure 1 Worldwide Distribution of Organic Agricultural Land. ............................................ 4. Figure 2 Growth of the global market for Organic food and drinks. ....................................... 6. Figure 3 - Organic Food Supply Chain ...................................................................................... 9 Figure 4 - Students of Pan-American School of Agriculture - El Zamorano ........................... 10. 政 治 大. Figure 5 Members by Region of ANAFAE Organization ........................................................ 11. 立. Figure 6 - ASOPROL farmers .................................................................................................. 12. ‧ 國. 學. Figure 7 - Orgánica Store in Tegucigalpa ................................................................................. 13. ‧. Figure 8 - Organic Food Industry Life-Cycle in Honduras ...................................................... 15. y. Nat. er. io. sit. Figure 9 - The Five Forces Model applied to the Organic Industry in Honduras .................... 18 Figure 10 - Panamerican School of Agriculture Supermarket .................................................. 21. n. al. Ch. engchi. i n U. v. Figure 11 - Healthy Diet Logo.................................................................................................. 22 Figure 13 - Deaths by broad cause group in Honduras ............................................................ 28 Figure 14 - Examples of diet meals .......................................................................................... 30. Table 1 - Pricing Detail of Healthy Diet ................................................................................... 32. vi.

(9) 1. Introduction The Organic Food industry in the world is becoming an option for many farmers to increase their income since they are able to charge premium prices for their products, but it is also a way of taking care of the environment, the health of the producers and consumers. Consumers on the other hand, see organic food as an option to obtain more nutrients in their food and avoid substances that might damage their health in the long term.. 政 治 大. In Honduras, a lower middle income country, both the producers and the consumers are not. 立. well aware of the benefits of organic food. However, there is opportunity to make organic. ‧ 國. 學. related business since several institutions are already working in supporting organic producers increasing the supply. Businesses could take advantage of the benefits of organic produced food. ‧. to create a need in the population for healthy lifestyles that not only protect the environment. Nat. er. io. sit. y. but also their health.. The organic diet delivery company named Healthy Diet Co, aims to introduce the benefits of. n. al. Ch. i n U. v. the organic food to the high income population of Honduras by making diet meals available as. engchi. an option to reduce the overweight and obesity problems affecting that segment of the population. For Healthy Diet Co. to be successful it needs a set of business and marketing strategies to introduce the organic concept to the population, increase awareness on those who already know about it and emphasize the quality and the nutritious value of the organic food. This document presents those strategies as well as the business model for Healthy Diet Company.. 1.

(10) 2. Overview on the Organic Food Industry Since the 1980s Organic food has started to gain acceptance and importance in many countries in the world. Sale of organic food and drinks by 2013 reached US 72 billion1 and is predicted to grow at a steady rate. The biggest markets of organic food are the United States and Europe; the markets in other developing countries still remain small even though these countries are major producers of organic food. The United States Department of Agriculture (USDA) uses the following definition for Organic food: Organic food is produced using sustainable. 治 政 agricultural production practices. Not permitted are most 大conventional pesticides; fertilizers 立 made with synthetic ingredients, or sewage sludge; bioengineering; or ionizing radiation. ‧ 國. 學. Organic meat, poultry eggs, and dairy products come from animals that are given no antibiotics. ‧. or growth hormones. (USDA, 2004). Nat. sit. y. In order for food to be classified as organic it needs to undergo a process of transition in the. n. al. er. io. farm and later become certified, which requires time and money investment. Each country has. i n U. v. different requirements of certification. In the United States the organic farms can be certified. Ch. engchi. by a private, foreign or state entity that has been accredited by the USDA. The USDA accredited certifying agents sum up to eighty two (48 are from the United States and 34 are from foreign countries), which are authorized to certify operations to the USDA organic standards. In Europe, on the other hand, the entity in charge of verifying that farms meet the organic requirements is the European Commission. Each country with organic markets has its own institutions that control that organic farmers and the certifying agencies meet the standards of the market they. 1. Research Institute of Organic Agriculture. (2015). The World of Organic Industry. Retrieved from:. http://www.organic-world.net/yearbook/yearbook2015.html?L=0 2.

(11) want to supply.. Certification allows the final consumer to be confident that the food was produced and handled correctly and that no chemicals, antibiotic or fertilizer residues would be in the food. Organic produced food not only is healthier for the people who consume it but is also healthier for the farmers and the environment. Organic farming respects the environment, the production of food involves high level of biodiversity and conservation of natural resources through careful. 政 治 大. management of water and providing nutrients to soil in order to enhance its structure.. 立. Nowadays, there are more farmers producing organic food and more people are buying it,. ‧ 國. 學. usually the consumers either have high standard of living and care about their health, have interest in promoting sustainable practices and protect the environment or both. In countries. ‧. such as the United States, organic farms have struggled at times to produce sufficient supply to. y. Nat. sit. keep up with the rapid growth in demand, leading to periodic shortages of organic products. n. al. er. io. (Dimitri & Oberholtzer, 2009). In some markets the organic trend is still beginning.. i n U. v. Nevertheless, there is great potential for the organic industry in the world but it needs the effort. Ch. engchi. of farmers, private and public institutions and governments to stimulate the supply and demand of organic products.. 2.1.. Organic Food Supply. The most recent data from the Research Institute of Organic Agriculture states that currently 170 countries have data on organic agriculture, and more countries are turning into organic production. By 2013, the area with higher percentage of organic agricultural land is Oceania with 40% followed by Europe with 27% and Latin America with 15%. Figure 1 shows the potential of each area in organic production, which represents 43.1 million hectares. Besides. 3.

(12) agricultural land, there are additional organic areas such as wild collection areas, beekeeping, aquaculture, forest areas and grazing areas. By 2013, all areas sum up to a total of 78 million hectares and the number of organic producers is calculated to be 2 million.. Organic Agricultural Land North America Africa 3% 7% Asia 8% Latin America 15%. 立. Oceania 40%. 政 治 大. ‧ 國. 學. Europe 27%. ‧. Figure 1 Worldwide Distribution of Organic Agricultural Land. Nat. y. Source: FiBL-IFOAM survey 2015, Based on information from governments, private sectors and. io. sit. certifiers. n. al. er. Farmers who want to change to organic production need to make a long transition that usually. Ch. i n U. v. takes from two to three years depending on the country. After that transition process they have. engchi. to search for an institution that can certify their farm which requires a money investment. The certifying companies charge an application fee that costs approximately 300 to 400 US$ dollar and every year they charge additionally a renewal fee, a fee for assessment on production or sales, and inspection fees which can range from several hundred to thousands of dollars. In the long-term farmers benefit from organic production because they are able to not only sell their produce at premium prices but avoid any possible harms that the chemicals used for conventional farming could cause them or the soil they work in. After certification farmers are allowed to use the organic logo which differentiates it from conventionally produced food in. 4.

(13) the markets they are supplying and allows the consumers to quickly identify them in the markets.. Supply of Organic food is limited in comparison with its demand. In addition, organic food is normally sold at higher prices because labor costs are higher per unit of production and economies of scale are difficult to achieve. As a result of small sale volume, the post handling, marketing and distribution are less efficient and hence more costly.. 2.2.. Organic Food Demand. 政 治 大. Since 1999 there has been a growth in the organic food and drinks market. Data of Organic. 立. Monitor2 states that from 2010 to 2013 the market increased by 22%. Figure 2 shows the growth. ‧ 國. 學. tendency of the global market. According to the sales per country in the Research Institute of Organic Agriculture (FiBL,German Acronym)3 report of 2015, the biggest markets in terms of. ‧. sales include the United States, Germany, France and China. The countries with higher. y. Nat. n. al. er. io. sit. consumption per capita are Switzerland, Denmark and Luxembourg.. 2. Ch. engchi. i n U. v. Organic Monitor is a specialist research, consulting and training company that focuses on global sustainable. product industries. 3. FiBL states for Forschungsinstitut für biologischen Landbau, german name of the Reasearch Institute of Organic. Agriculture. 5.

(14) Growth of the global market for Organic food and drinks US$ Billions. 80 72.0. 60 59.0 40 20. 28.7 15.2. 0 1999. 2004. 2010. 2013. 政 治 大. Figure 2 Growth of the global market for Organic food and drinks. 立. Source: The Global Market for Organic Food and Drink (Organic Monitor). ‧ 國. 學. In developed countries Organic food is in high demand; in markets such as the United States and some countries of Europe people are becoming aware of the differences between organic. ‧. and conventionally produced food not only in nutrition but also as a way to contribute to the. y. Nat. io. sit. conservation of the environment and natural resources. As defined in previous sections, organic. n. al. er. production makes agriculture sustainable because it is environmentally friendly by not. Ch. i n U. v. damaging the soil, preserving the water and reducing pollution. The industry is still in its. engchi. growing stage and in some countries it is still in an embryonic stage representing strong business opportunities for those interested in investing in the organic market. 2.2.1. Organic Food and Healthy Lifestyle Concept Several studies have been made to determine the importance for human health to consume organically produced food instead of chemically treated food. Consumers are interested in knowing what they are eating and how it affects their health. A research made by the Newcastle University in the United Kingdom states that organic food does contain more antioxidants, which may indicate that it has nutritious potential benefits. Besides the higher percentage of. 6.

(15) antioxidant in the organic produced crops, the research also documents that there is lower percentage of cadmium, nitrogen and pesticides residues. Cadmium is a highly toxic metal which accumulates in the human body (especially in the kidneys and liver); therefore, the intake of Cadmium in diets should be as low as possible (Leifert, 2014). Excess consumption of nitrogen, which combined with oxygen becomes nitrates, has been linked to Blue Baby Syndrome, cancer and birth defects as reported by the United States Environmental Protection Agency.. 政 治 大 The intake of antioxidants is health beneficial. Several studies have confirmed that it can be 立. ‧ 國. 學. good for the skin, cancer prevention, improved immune function and reduction of the risk of cardiovascular and neurodegenerative diseases. In the world the risk of developing. ‧. cardiovascular diseases, becoming obese or diabetic is increasing, the need to beware of. sit. y. Nat. nutrition should be one of the priorities for the global population in order to prevent future. io. al. n. substances in the body.. er. concerns. An organic diet is one of the options to stay healthy and avoid residues of toxic. Ch. engchi. 7. i n U. v.

(16) 3. Overview of Organic Food Market in Honduras Honduras is a lower middle income country located in Central America, by 2013 it had around 8.098 million inhabitants. In 2013, the GDP was US$ 18.55 billion dollars, the gross national income per capita was US$ 2,180, and is one of the countries with the highest income inequality in the World. The income share held by the highest 20 percent of the population was 61.2 percent by 2011, in contrast to the 2.6 percent income share held by the lowest 20 percent of the population (The World Bank, 2015). Agriculture, hunting, forestry and fishing are among. 治 政 the main activities of the country and together represent 大13% of the GDP (Honduras Central 立 Bank, 2015). ‧ 國. 學. Some of the main agricultural exports of Honduras include: Coffee, Bananas, Pineapple, Sugar. ‧. and vegetables; the latter in smaller amounts. Although not all exports are organic produced,. Nat. sit. y. the National Institution of Agriculture in Honduras has confirmed that there is a great potential. n. al. er. io. in organic farming since this and several other non-profit institutions are providing resources. i n U. v. to encourage farmers to transform into organic production. Organic farming is seen as an. Ch. engchi. opportunity for farmers to improve their income, which in the long term might help alleviate rural hunger and poverty.. Many farmers in Honduras already know about organic agriculture, according to the report of the Research Institute of Organic Agriculture (FiBL) 0.8% of the total agricultural land in Honduras is used for organic production. The organic produced food in Honduras includes: coffee, cocoa, cashew, aloe, sugar cane, blackberries, citrus, and vegetables (Biolatina, 2015). Although there is production of organic food there are still some challenges in training and technological developments that have to be overcome to boost the organic production not only. 8.

(17) in agricultural products but also on the meat, poultry eggs and dairy products.. 3.1.. Supply of Organic Food in Honduras. Based on the information of Food and Agriculture Organization of the United Nations and National Institution of Agriculture in Honduras (SENASA, Spanish acronym). There are 2,015 Organic Producers, 26 processing companies, 26 commercial companies and 4 organic certifying agencies in Honduras. Figure 3 shows the importance of certification in every step. 政 治 大. of the supply chain before reaching the final consumer.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 3 - Organic Food Supply Chain. 3.1.1. Organic Producers In Honduras there are several institutions that work in coordination with the government, international cooperation and farmers to promote organic farming, among them we can find the Pan American School of Agriculture (El Zamorano), The National Association for the development of the Ecological Agriculture (ANAFAE) and PyMe Rural in collaboration with the Swiss Cooperation.. 9.

(18) Pan American School of Agriculture (Zamorano) is a private agricultural university located in the central region of Honduras, which produces organically since 2003. It is continually developing programs that help farmers to implement some of the sustainable practices and technological inventions that students have developed in campus. Figure 4 shows how students get involved in the production of food and learn by doing in the school campus.. 立. 政 治 大. ‧. ‧ 國. 學. Figure 4 - Students of Pan-American School of Agriculture - El Zamorano. y. Nat. er. io. sit. Source: Pan-American School of Agriculture website. al. n. v i n Ch The National Association for the Development e n g c hofi theUEcological Agriculture (ANAFAE). Among the activities that this institution works in are: promoting biodiversity, urging the legal framework to develop laws that protect resources for production, research, creation of schools of agro ecological promoters, promotion of organic agricultural practices and sharing of experiences among farmers. The members come from several regions of Honduras as detailed in Figure 5.. 10.

(19) Figure 5 Members by Region of ANAFAE Organization Source: Asociación Nacional para el Fomento de la Agricultura Ecológica (ANAFAE). 治 政 大together with the Swiss Cooperation PyMe Rural on the other hand is an institution that works 立 and the Government of Honduras to promote programs for the development of small and ‧ 國. 學. medium sized enterprises in the rural areas in Honduras. One of the main programs in relation. ‧. with organic production is Healthy Organic Food producers of Lepaterique (Alimentos Sanos Organicos de Productores de Lepaterique - ASOPROL), whose members have implemented. y. Nat. er. io. sit. good practices in order to become certified organic producers and be able to commercialize their products in the local supermarkets in the main cities of Honduras. This program is also. n. al. Ch. i n U. v. developing schools of agricultural practice, in which farmers share their experiences and their. engchi. way of doing business. ASOPROL has confirmed that organic production is a way of improving the income of small producers in rural areas and they have also empowered women to become involved in the production as shown in Figure 6.. 11.

(20) Figure 6 - ASOPROL farmers. 政 治 大. Source: PyMe Rural website. 立. ‧ 國. 學. There are several other cooperatives that work together with farmers to strengthen the knowledge of organic production and are exporters of quality organic products. A market case. ‧. study made by several government institutions of Honduras states that organized groups of. y. Nat. io. sit. farmers have made productive investments and organizational innovations in this industry,. n. al. er. allowing them to maintain steady supply of products (Ortiz Gallardo). Some of these. Ch. i n U. v. organizations of farmers are not only producers but they also process and commercialize their. engchi. products, either in local supermarket chains or international markets.. 3.1.2. Processing and Commercial Companies The processing and commercialization of organic produced food is normally done by the group of farmers that produce it or the cooperatives they are members of. The Pan-American School of Agriculture does its own processing and commercialization and the Healthy Organic Food producers of Lepaterique send their production to Hortifruti Company to be processed and commercialized to the main supermarkets.. 12.

(21) The only company which only commercializes imported organic food is Orgánica Store Honduras. Orgánica Store is a Central American franchise, located not only in Honduras, but also in main cities of Panama and Guatemala. In Honduras they only have one shop located in a well-known area of the capital city. Figure 7 shows the picture of the Orgánica Store in Tegucigalpa.. 學 Figure 7 - Orgánica Store in Tegucigalpa. ‧. ‧ 國. 立. 政 治 大. Source: Orgánica Store webpage (http://www.organicastore.com). y. Nat. io. sit. 3.1.3. Certifying Agencies. n. al. er. The certifying agencies registered and authorized by the National Institution of Agriculture to. Ch. i n U. v. operate in Honduras for the period 2014-2015 are the following (SENASA, 2015):. engchi. . Biolatina S.A. de C.V – A Latin American certifying agency. . BCS-Ö KO – German certifying agency. . Mayacert S.A. – Mexican Certifying agency. . Ecohonduras S. de R.L. de C.V. – Honduran Certifying Agency. In order for the products to be considered organic, farmers, processing and commercializing companies have to be certified by any of the agencies mentioned above.. 13.

(22) 3.2.. Demand of Organic Food in Honduras. A market case study of the development of organic vegetables in Honduras4 has determined that the demand for the product is still low in Honduras since many people are not aware where to find organic products in Honduras and supply still remains small. However, the same study reflects that 51.4% of the key players in the horticultural chain, like supermarkets and restaurants, do buy organic products. The study also determined there is potential market for organic products since people is willing to buy the organic products, nevertheless they would. 政 治 大. want to buy at lower prices. The potential buyers are motivated to buy organically produced. 立. food mainly because of the benefits for their health, conservation of the environment and also. ‧ 國. 學. to help the farmers (Ortiz Gallardo). Given the high prices of organic food, in Honduras organic food will be affordable for only 20% of the population who have a high income.. ‧. sit. y. Nat. Honduran organic industry is at its embryonic stage since it is beginning to develop, there is. io. er. still buyers´ unfamiliarity with organic food and the price of the products are still high since. al. significant scale economies cannot be achieved. The Organic Food Industry life cycle in. n. v i n C hsuccess in this industry Honduras is shown in Figure 8, the e n g c h i U will depend highly in the ability of. the business to educate the customers and be able to take advantage of the lack of competitors in order to obtain a strong positioning in the market.. 4. Study was presented by Mesoamerica S.A., financed by Honduran government and Central American Bank for. Economic Integration. 14.

(23) 立. 政 治 大. ‧ 國. 學. Figure 8 - Organic Food Industry Life-Cycle in Honduras Honduran population is in need of a healthy lifestyle since overweight and obesity are becoming. ‧. a major health concern. According to the World Health Organization (WHO) in Honduras. y. Nat. sit. around 46% of the population aged 15 or above is either overweight or obese. These conditions. n. al. er. io. are more prevalent in the highest socioeconomic group, in urban areas and are linked to many. i n U. v. health problems, such as high blood pressure, diabetes, high blood cholesterol and arthritis.. Ch. engchi. Overweight and obesity are a consequence of a calorie imbalance, meaning that more calories are consumed than used (Larson Duyff, 2012). The modern lifestyle is leading more people to do less physical activities and consume easily available food that not always is rich in nutrients. Hence an improvement of the diet could help to avoid these conditions or to reduce them.. Promotion of healthy diets that in best of the cases include organic food can be beneficial on the long term not only to contribute to increase sustainable practices in farms but also to provide healthy food to the population. Efforts to educate the population on the importance of a healthy diet and to issue policies to improve the availability of a healthy food supply can help to reduce. 15.

(24) the rapid escalation of obesity and chronic diseases. (Bermudez OI, 2003) Therefore healthy diets that include organic fruits and vegetables are an option to be considered.. 3.3.. SWOT Analysis of Organic Food Industry in Honduras. 3.3.1. Internal Factors – Strengths and Weaknesses. 立. n. Ch. engchi. 16. y. sit. er. io. al. Lack of Knowledge: Honduran farmers need to be trained in composting practices, soil ecology or even greenhouse production. Consumers are not that familiar about organic products. High cost of organic Certification, in order to make certification farmers have to search for certifying companies and invest a high amount of money to be able to become organic. High Prices: Due to higher costs of production, farmers have to sell at premium prices No transparent information of the Honduran organic market; having all information possible would allow to make informed decisions of benefits and costs for the buyer and the producer. Supply of organic products inside Honduras is still low.. ‧. Nat. Organic food not only is environmental friendly, but it provides more minerals and nutrients. Legal Protection for Organic Consumers and Producers: Since 1995 Honduras has worked in the implementation of laws that protect the consumers of organic food. Such laws stipulate that companies that decide to use the word organic in their products must be certified by an accepted institution. Few Competitors in the market: In Honduras there are only a pair of stores that sell organic produced food, making it easier for organic businesses to develop and strenghen their business model in order to obtain high market share.. 學. Weaknesses:. ‧ 國. Strengths:. 政 治 大. i n U. v.

(25) 3.3.2. External Factors – Opportunities and Threats. Opportunities:. Threats:. Availability of aid for Organic Farmers - Most organic farmers obtain help from international Non-Profit Organizations, which help them in financing and in knowledge to make organic farming. Allowing on the long term an increase in supply of organic produced food and could make it more affordable to all buyers Small amount of competitors in organic related businesses- The organic market has not yet been exploited, presenting business opportunities. Technology- could be used to improve business relationship between the supplier and the buyer. United States and Central American free trade agreement, represents an opportunity to import or export organic produced food.. Demotivation of farmers to produce organically - There is an increase in international competition, farmers around the world are starting to identify the advantages of producing organically since they are able to protect their lands by making sustainable production and selling at premium prices. However, an increase of supply will reduce the price and farmers might become demotivated. Economic and political situation of the country, could make the consumers to avoid spending high amount of money in organic food, they might prefer to change into a cheaper option.. n. engchi. 17. y. sit. er. io. Ch. ‧. Nat. al. 學. ‧ 國. 立. 政 治 大. i n U. v.

(26) 3.3.3. Competitive Forces In order to analyze the competition in this industry Figure 9 shows the level on each of Porter´s five competitive forces, which determines possible opportunities or threats depending on the strength of the competitive force.. Risk of Entry (medium). 立. Bargaining power of buyers (medium). ‧. ‧ 國. Among established firms (LOW). 學. Bargainig power of suppliers (high). 治 政Rivalry 大. y. sit. io. n. al. er. Nat. Threat of substitutes (low). Ch. i n U. v. Figure 9 - The Five Forces Model applied to the Organic Industry in Honduras. engchi. Risk of Entry of potential competitors – is considered medium in this industry since there are few companies that have the key knowledge to enter the organic food industry. In the embryonic stage the economies of scale of this industry is difficult to reach, and additionally the certification process required by law and the time to meet the quality standards may de-motivate possible competitors. In order to lower the risk of entry of competitors for the established companies, it is necessary to obtain loyalty from consumers. Rivalry among established firms – Organic Food industry rivalry is very low in the Honduran market, since companies have the opportunity to raise prices due to the fact that few companies 18.

(27) sell organic produced food. The industry is still fragmented in Honduras, meaning that at the moment when other companies decide to take the risk and sell organic products, rivalry will increase, leading to price wars that at the end will reduce profitability to already established companies. Bargaining Power of Buyers – Due to the type of industry, it is considered medium. Buyers have a certain power over the price since the supply industry depends upon them to be able to sell.. 立. 政 治 大. Bargaining power of suppliers – In the organic industry the power of the suppliers is high. ‧ 國. 學. since there are few options to buy organic produced food in the Honduran market. Without the supply the organic related companies could lose vital products to their companies.. ‧. sit. y. Nat. Threat of Substitutes – Organic Products have unique characteristics therefore it has no close. io. n. al. er. substitute allowing it to have higher prices and obtain additional profits.. Ch. engchi. 19. i n U. v.

(28) 4. Business Strategy 4.1.. Competitors Analysis. 4.1.1. Panamerican School of Agriculture The Pan-American School of Agriculture is considered one of the most prestigious agricultural universities in Latin America. It is important to take into consideration that the practices developed there can give an opportunity to those future professionals to develop companies in the organic food sector. The students develop capabilities that can help them have a high control. 治 政 of the supply chain from the organic food production to 大 its commercialization. 立 ‧ 國. 學. The Pan-American School of agriculture was founded in 1942, it is located 30 kilometers from Tegucigalpa, the capital city of Honduras. The education offer in this institution is based on. ‧. learning by doing, therefore its students are able to contribute to the development of their own. Nat. sit. y. countries through investigation and the creation of solutions in relation to agricultural. n. al. er. io. innovation. The university aims to create projects that contribute to provide answers to. i n U. v. problems in agriculture, agroindustry, agricultural businesses and environment.. Ch. engchi. Its value proposition consists in education through the concept of learning by doing and it was one of the first institutions to start organic production in Honduras. The University counts with key partners which allows it to maintain a prestigious place in Latin America among them are nonprofit organizations, universities, some governments and private institutions.. It is considered a strong competitor in the industry as it has high capital to invest on the development of organic related business which could add greater competitive advantage to the university and could be used as learning centers for their students. The institution already has a small supermarket (Figure 10) inside its campus where their products are for sale and where 20.

(29) students can gain experience in production, sales, marketing and in customer service.. 立. 政 治 大. Figure 10 - Panamerican School of Agriculture Supermarket. ‧ 國. 學. Source: Pan-American School of Agriculture website. 4.2.. Healthy Diet Company Description. ‧. As mentioned in the last chapter, Honduran population has overweight and obesity problems,. y. Nat. sit. which affect mainly the highest socioeconomic group in urban areas. There is an underserved. n. al. er. io. need for services that promote a healthy organic diet, which, if served, could lead not only to. i n U. v. weight reduction but also to enjoy the benefits of organic food. Nowadays, it is easy to perceive. Ch. engchi. that a great part of the urban population is full of different types of responsibilities both at work or at home, reducing their free time and pushing them to have a sedentary life and to consume unhealthy food. Wouldn’t it be wonderful for a person to prepare you all the meals and assure you that all the ingredients used to prepare them are of the best quality, have been produced in an environmentally friendly way, help you maintain a healthy weight and besides are delivered to your home or workplace?. Healthy Diet together with a top chef and a nutritionist will take care of its customers by giving 21.

(30) them top quality meals prepared with organic food containing the right amount of calories they need for the day, either to reduce or maintain their weight, and in accordance to their gender, lifestyle and age. In order to provide a complete service and make it more convenient, the meals will be delivered on daily basis to either customers’ homes or workplaces.. The Healthy Diet meals will be prepared under a clean and safe environment in full equipped kitchens located in our headquarter house that will be located in a strategic place of the capital. 政 治 大 website that will be the main way the customers will approach us. Through the website 立. city, trying to be as closer to our target markets as possible. The company will have its own. ‧ 國. 學. customers can arrange their appointments with the nutritionist, select their meals from the menu options, make their payments and even be aware of the organic and ecological trends worldwide. ‧. by a “green” news portal. As a representation of the inclusion of “green” in our diets figure 11. n. al. er. io. sit. y. Nat. shows the logo of the company.. Ch. engchi. i n U. v. Figure 11 - Healthy Diet Logo. 4.2.1. Vision Deliver nutrition in organic meals to the health conscious consumers.. 4.2.2. Mission To create a nutrient oriented and environmental awareness in our customers by providing high. 22.

(31) quality organic produced meals in the most convenient way.. 4.3.. Goals. Short Term Goals: . Provide high quality food. . Establish relationship with a professional in nutrition. . Establish relationship with health and environment institutions. . Establish strong ties with organic producers.. . 治 政 Attract enough customers to make a sustainable 大 profit 立 ‧ 國. Educate customers about benefits of organic food and the importance of having a. ‧. . 學. Long Term Goals:. balanced diet.. n. er. io. al. Ch. i n U. v. Every year make a significant input to aid in the training of farmers in organic production.. . sit. Build a strong community of organic food consumers that are loyal to the company brand.. . y. Nat. . engchi. In a five year period be able to provide more service options to simplify the life of the customer and meet their healthy lifestyle demands.. 4.4.. Strategy and Key Success Factors. Healthy Diet Company is in an industry at its embryonic stage since the organic industry has not yet reached a great demand and cannot reach economies of scale. The company is a new business model in Honduras, organic produced meals with delivery service, the best strategy for it to pursue is a focus differentiation strategy. This strategy will allow that Healthy Diet 23.

(32) Company can focus in offering a distinctive product, which is organic food, to one or two market segments. The company will focus on offering superior quality in order to differentiate its product and be able to charge a premium price.. In order to accomplish the desired goals there are several initial activities needed to create value:. Human Resources: It is vital to hire professionals that will add credibility to the company, therefore hiring a chef and making alliance with a well-known nutritionist will be one of the. 政 治 大. key success factors of the company. In Tegucigalpa we can find well-known nutritionists in all. 立. private hospitals, however one of the easiest to access hospitals for our desired target segments. ‧ 國. 學. is the Honduras Medical Center, it is located in a convenient place and it has easy accessibility. Another option is a well-known nutritionist that has its own private clinic and promotes a. ‧. healthy lifestyle through television, she could be a great partner as her goal is to help improve. y. Nat. sit. the health of the Honduran population by encouraging the intake of meals rich in nutrients;. n. al. er. io. which goes in accordance to our vision. Hiring a good chef is necessary to offer quality. i n U. v. produced food, visiting some of the culinary schools of Honduras (Gastronomic School. Ch. engchi. Hernando Moreno and/or Hotel Escuela Madrid) can give ideas of possible candidates that could meet the profile Healthy Diet Company is looking for.. Suppliers: Establishing strong ties with the organic producers is of great importance for the company to guarantee a supply. In Honduras the company can make agreements with the PanAmerican School of Agriculture and the Healthy Organic Food producers of Lepaterique to obtain the food required for the production of the meals. Both of this possible suppliers are close to Tegucigalpa, therefore this city will be the best option to start the business. It is important that there is a timely and enough supply, therefore importing certain foods should. 24.

(33) remain as an option for the future as the demand increases. Honduras is part of CAFTA, a free trade agreement between United States and Central America, which can be a benefit in case that importations are needed from one of the neighboring countries or United States.. Information System: As a main step to start the business, it is necessary the development of an e-commerce website for our clients to select the products and services they want and make the payment online. It is necessary that the website has social media integration specially. 政 治 大 Honduras (22.6% of penetration). The website should be designed to allow customers to 立 Facebook which according to Social Media Global Info Center has 1.880 million users in. ‧ 國. 學. contact the health professional and decide the products and services that they want to obtain from Healthy Diet. There are several online store builder websites that can aid in the. ‧. accomplishment of this specific goal. Among the wide range of e-commerce sites the one that. sit. y. Nat. best suites the needs is goodsie.com since it offers custom domain, custom design, social media. io. er. integration, supports videos and rich media galleries which can help in the accomplishment of. al. the long term goal of educating customers in the benefits of organic food and having a balanced. n. v i n Cgoodsie.com diet. In addition to these features, payment gateway support and sales h e n g cprovides hi U and traffic analytics that will aid in management decision making.. Market penetration in hand with aggressive marketing and cooperation with private and public institutions: To attract customers the company has to make a high investment in marketing. A marketing strategy specially designed for the company will be developed in the next section identifying the market segment that the company wants to target, explaining the products offered, the place where customers can find the products, the price and the promotions that the company will implement. In order to educate customers about the health benefits of organic food, raise awareness of the importance to maintain a healthy weight and attract 25.

(34) customers to buy our meals, implementing a marketing campaign will be one of the first steps as soon as the company is established.. The marketing campaign will focus on the development of activities that will attract people concerned about their health and the environment. However, since the company belongs to an embryonic stage industry it requires the involvement across several sectors, including government, public and the private sector for it to have success. The institutions that can be. 政 治 大 sicknesses such as insurance companies or institutions that want to incentive health care such 立. interested in becoming partners with Healthy Diet are the ones who would like to prevent. ‧ 國. 學. as Ministry of Health and World Health Organization. Partnership with schools and universities will help to reach the long term goal of raising awareness of nutrition issues and promotion of. ‧. organic food consumption.. y. Nat. sit. A further description of the main institutions in Honduras that can help us to reach the market. al. n. following:. er. io. segments desired to cover and can become future partners or competitors at some extent are the. Ch. engchi. i n U. v. Ficohsa Seguros – An insurance company that offers health insurance to its customers and has a strong presence in the Honduran market. They organize health fair for its collaborators which could be a way to approach not only Ficohsa Seguros clients but also their employees. They also are copartners with a clinic that focus on everything that a non-specialist doctor can assist. World Health Organization (WHO) – In 2004 WHO developed a strategy to call all sectors of the society to support healthy diets and physical activities. The World Health Organization states that an optimal nutrition at early age reduces the risk of dying and of developing NCDs. Taking this as an opportunity, the company Healthy Diet can use help from WHO to approach 26.

(35) all sectors through the “Well-Being Week” the institution organizes in different places of the city. Ministry of Agriculture – This governmental institution can aid in the implementation of information campaigns to promote organic production among farmers and evaluate what resources does the farmers are missing to help them overcome those difficulties. The company Healthy Diet can help by making agreements to continue buying if they meet the demand of the. 政 治 大 sales among our business, since later on we might not sell only meals but other organic products 立 company. Further strategies can be developed in agreement with the farmers to promote their. ‧ 國. 學. that farmers could elaborate based on the organic products.. Schools and Universities – In Honduras there is a great number of private schools and. ‧. universities, according to the ministry of education only in Tegucigalpa there are 627 private. y. Nat. sit. schools and 10 private universities where possible organic and health care conferences can be. n. al. er. io. organized to promote a healthy lifestyle at a young age and promote environmental care. A. i n U. v. product will be specially designed to allow parents to buy a healthy meal to their kids which can be delivered at school.. Ch. engchi. National Institute for the Diabetic – According to an interview made to the director of this institution Jesus Orlando Molina, he informs 12% of the Honduran population suffer of diabetes and there is a high percentage of deaths related to this disease which most of the time are due to the patients not following the treatment and diet. The institution urges for more projects that can promote health care and prevent such disease. A stand promoting the services of Healthy Diet could be very useful in this institution.. 27.

(36) 5. Marketing Strategy 5.1.. Market Segmentation. Honduras, as mentioned before, belongs to the lower middle income countries and its population by 2013 was 8.098 million (The World Bank, 2015). Around 54% of the population lives in urban areas (World Health Organization , 2015) which include the cities of San Pedro Sula and Tegucigalpa. The World Health Organization (WHO), based on different studies, has concluded that overweight and obesity are more common in urban areas. Malnutrition is a. 治 政 serious concern for the Honduran population since it leads 大to non-communicable diseases such 立 as diabetes, heart disease, stroke and cancer. Figure 13 shows an overview of the number of ‧ 國. 學. deaths and causes in year 2000 and 2012. It is observable an increase in deaths related to. ‧. cardiovascular diseases in men and women.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 12 - Deaths by broad cause group in Honduras Source: Honduras:WHO statistical Profile, World Health Organization. 28.

(37) Concerned by these problems, Healthy Diet Company would like to address the high income sector of the population to help prevent these diseases by offering a nutritious diet based on organic produced food.. A little less than 20% of the households belong to the highest income population which earn more than 40,000 Honduran Lempiras (Around US$ 1800) monthly and which the head of the household has a higher education (INE, 2013).. 5.2.. Market Targeting. 立. 政 治 大. Target markets will include the city of Tegucigalpa as being the best area to start the business,. ‧ 國. 學. with a population estimate by 2013 of 1.101 million inhabitants (INE, 2013). Tegucigalpa is the capital city and is also closer to the main suppliers. According to the Pan American Health. ‧. Organization around 3% of the population reaches a high level of education, our target market. y. Nat. er. io. segment.. sit. size therefore will be small approximately seven thousand customers in the high income. al. n. v i n C h to be introducedUto the consumers. Some stands in the In Honduras organic food is starting engchi supermarkets have organic products and small organic shops are starting to open. A study has documented that people who know about organic products normally are the more educated people (Ortiz Gallardo). Therefore, our target market will focus on: . Women and men with high education and high income, environmentally concerned and with health awareness.. . Parents of the bilingual school students, who are concerned of the nutrition of their kids.. 29.

(38) . Women and Men who suffer from diabetes and need to follow a strict diet. Healthy Diet Co. aims that its products will be positioned in the mind of the consumers as the best option to improve their diet and to eat nutritious and healthy food without worrying about the time and effort needed to buy and cook the food.. 5.3.. Marketing Mix. 5.3.1. Product. 政 治 大. Through the Healthy Diet Co. website customers will be able to make an initial appointment. 立. with our nutritionist who will assign a diet according to our already pre-designed plans that. ‧ 國. 學. cover different gender, range of ages and lifestyle. The product that Healthy Diet Co. is offering is a set of meals that will contain the necessary calories for the customers to either lose or. ‧. maintain their weight. The meals will be designed in collaboration with the nutritionist and our. y. Nat. sit. chef. Pictures of the different diets available will be posted on our website to allow the. n. al. er. io. customers to know how the meals look like. Examples of meals are shown in Figure 14.. Ch. engchi. i n U. v. Figure 13 - Examples of diet meals. 30.

(39) The main Diets will include:  Diet to lose weight for women  Diet to lose weight for men  Diet to maintain weight  Diet for diabetics  Nutritious diet for kids. 政 治 大. According to the customers’ need, the options will increase in order to cover other segments of. 立. the population that need special diets, for example, old age population and pregnant women.. ‧ 國. 學. 5.3.2. Price. ‧. Organic products tend to have higher prices than the conventionally produced ones, and. sit. y. Nat. therefore, in order for a person to eat organic produced food he or she needs to pay a premium. io. er. price that can range between 60 to 70 percent higher than the conventional ones. The price of a. al. conventional produced meal in Honduras is around 111 Honduran Lempiras for a lunch and 70. n. v i n Honduran Lempiras for a dinner C according information. h e ntoggovernmental chi U. In order for healthy diet to cover the high cost of human resources and to be able to offer a high quality products and services, it will charge premium prices. The Price will be dependent on the diet chosen in weekly meal payments or monthly payments. They can choose to order 2 meals or just lunch meals. Table 1 shows the list of the products and the price of each product. The appointments with the nutritionist should be paid by the customers.. 31.

(40) Table 1 - Pricing Detail of Healthy Diet Product. Weekly. Diet to lose weight for women. L. 1,500.00. Diet to lose weight for women. L. 975.00. Diet to lose weight for men. L. 1,500.00. Diet to lose weight for men. L. 975.00. Diet to maintain weight. L. 1,400.00. Diet to maintain weight. L. 950.00. Diet for diabetics. L. 1,500.00. Diet for diabetics Nutritious diet for kids. 立. Monthly. 5 days a week. L. 5,800.00 Lunch and Dinner L. 3,800.00 Only Lunch L. 5,800.00 Lunch and Dinner L. 3,800.00 Only Lunch L. 5,400.00 Lunch and Dinner L. 3,600.00 Only Lunch L. 5,800.00 Lunch and Dinner. 975.00 L. 3,800.00 政 L.L.治 700.00 大 L. 2,400.00. Only Lunch Only Lunch. Currency is the Honduran Lempira. ‧. ‧ 國. 學. 5.3.3. Place. Healthy Diet Co. website will be the main way to make the diet meals available to our customers.. y. Nat. er. io. sit. It will be the platform where they can become members of the healthy diet club and be able to order their diet meals according to their needs. The company aims to create an online platform. al. n. v i n where the customers can be informed environment and health news. C hof different organic, engchi U. The first time appointment with the nutritionist is the ideal, and therefore the customer should be able to save time to meet the nutritionist in the clinic near where he or she is located. In addition, depending on the agreement we can determine if a small office could be built in Healthy Diet Co. headquarters for the use of the nutritionist to make the evaluation of the customers there. The location of the headquarters will be in one of the areas close to our target market in order to save time and money in the deliveries. At the beginning the company will hire two employees to do the deliveries in motorcycle to the customers.. 32.

(41) 5.3.4. Promotion For Healthy Diet Co. to approach the potential customers it will have to invest in publicity and advertising which can include having informational stands in the National Institute of the Diabetic and other institutions like hospitals, as well as getting involved in the “Well-Being” week organized by World Health Organization which in collaboration with other institutions promote marathons, give health talks and where Healthy Diet Co. can promote its healthy diet meals. By investing in the promotion of a healthy lifestyle through other activities and. 政 治 大. institutions the company can attract its customers.. 立. ‧ 國. 學. Once a person orders in the website they will become members of the Healthy Diet club, the customers will be able to participate in different promotions and activities that Healthy Diet Co.. ‧. will organize. The way of promotion will be mainly through social media, trying to engage the. sit. y. Nat. customers to actively participate and giving away free meals or free nutritionist appointments,. io. n. al. er. so that they can get a nutritional evaluation.. i n U. v. As mentioned before the nutritionist appointments will be covered by the customers but if they. Ch. engchi. make the appointment through our website, a discount can be given as a way of promoting our sales. Advertisement can be done in the possible partner institutions that were mentioned in last chapter which include insurance companies, National Diabetic Center, school and universities.. 5.4.. Marketing Strategy Conclusion. Healthy Diet Co. aims to serve a niche market, which targets mainly the high income and highly educated population who have health concerns such as overweight and diabetes or are planning to avoid diseases by changing their diets. The company will be established in the capital city of Honduras, Tegucigalpa. This due to the fact that people in urban areas have higher incomes and. 33.

(42) are more likely to be overweight. The product will consist in lunch and dinner or only lunch diet plans which can be paid weekly or monthly. An additional plan will offer the parents of private schools´ kids the option to buy healthy and nutritious lunchboxes for their kids. All products will have a premium price but will be quality produced and will be delivered to the place our customers select. Promotions will take place mostly through website and social media to help attract customers and to promote the consumption of organic food.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 34. i n U. v.

(43) 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. 治 政 healthy food or investing time in looking for recipes and 大preparing them. As a result, Healthy 立 Diet Co. aims to meet the need of healthy meal options in the market by introducing a new ‧ 國. 學. product that makes life for the customer more convenient. Meals will be pricy. However, they. y. Nat. io. sit. Customer Segments. er. 6.2.. ‧. will be characterized by their freshness and their nutritional value.. As mentioned in previous chapter, Healthy Diet Co. will target a niche market. It offers a. n. al. Ch. i n U. v. product that connects organically produced food to a diet delivery service. The customer segments will be the following: . engchi. 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 35.

(44) 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. 政 治 大 consideration that some of our customers might feel that they are not getting a personalized 立. information we will offer, they will have to subscribe to our webpage. We have to take into. ‧ 國. 學. 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. sit er. Channels. io. 6.4.. y. Nat. handle complaints or special requirements of our clients.. ‧. them how they can order, pay and see the information available. The sales assistant will also. al. n. v i n Cdemanding Since Healthy Diet will be serving the best way to approach them at the U h e n g customers, i h c 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.. 36.

(45) 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. 政 治 大. The key activities needed to make Healthy Diet Co. a quality organic meal provider are the. 立. following:. . Make on time delivery of the meals ordered. . Establish and maintain relationship with suppliers to have a wide range of food. ‧. ‧ 國. Provide quality organic produced food. . Provide a user friendly online platform. al. er. Establish and maintain relationship with nutritionist. io. . sit. y. Nat. varieties in the menu. v i n Provide to our customers C news related to health, organic food and the U h eandninformation i h gc n. . 學. . 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 37.

(46) 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.. . 政 治 大. Chef: The chef is key for the preparation of the meals. He or she should work at the. 立. beginning with the nutritionist to design the meals. Then the chef will be in charge of. ‧ 國. 學. 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. y. Nat. sit. standards of quality and hygiene; therefore, a place will be provided for the chef to. n. al. er. io. make the meals. The office should be in the same place in order to have a better. i n U. v. communication among coworkers and deliver what the customer wants. . Ch. engchi. 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. 38.

(47) 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. 政 治 大. us have enough organic food to prepare the meals.. 立. Orgánica Store: Besides the local suppliers we would like to have also as a supplier. 學. ‧ 國. . 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. y. Nat. sit. menu and in case modifications to diets should be made later on. A nutritionist also adds. n. al. er. io. credibility to our image of being healthy, so that the option for our clients to make an. i n U. v. appointment with one should be one of our priorities. Healthy Diet Co. can send. Ch. engchi. 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 39.

(48) 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. 政 治 大. Healthy Diet Company is more value driven, offering a premium value proposition.. 立. Its cost structure will consist of:. ‧ 國. 學. . Fixed Costs: Rent, Salaries, annual organic certification, webpage domain fee, inventory of ingredients.. ‧. Nat. y. Variable Costs: ingredients of the meals, supplies, energy and water fees, packaging supplies, PayPal commission fees, advertisement.. er. Financial Costs: Financial interest derived from loans.. io. . sit. . al. n. v i n C hDiet will be the ingredients More expensive resources of Healthy of the meals and the payment engchi U 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. 40.

(49) 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.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 41. i n U. v.

(50) 6.11. Business Model Canvas Key Activities  Provide quality organic produced food  Delivery of meals  Establish and maintain relationship with suppliers Establish and maintain relationship with nutritionist  Provide online platform  Provide to our customers news and information related to health, organic food. Value Proposition ● Organic healthy Meals ● Diet Plans ● Delivery Service. 政 治 大. 立. ‧. Channels Business Website  Personal Visits ● Social Media. sit. n. er. io. al. y. Nat. Key Resources Organic Food  Website Chef  Kitchen and business headquarters Customer Service. Customer Relationship ● Self Service ● Personal Assistance if required. 學. ‧ 國. Key Partners ● Pan American School of Agriculture ● Nutritionist  World Health Organization  Government ● Private Schools and Universities ● National Diabetic Center. Ch. Cost Structure  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 Financial Costs: Financial interest derived from loans. engchi. 42. i n U. v. Revenue stream Sale of organic diet meals. Customer Segment  Women and men who care about their health, the environment  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.

(51) 7. Conclusion In Honduras the creation of an organic food business represents a challenge that needs management and employee commitment to assure growth and profitability. Additionally, key partners’ collaboration is vital to assure success in raising awareness of the importance of health and environment care through organic production and consumption. It is necessary to make a high initial investment, due to the high amount of costs, which can be financed through a long term loan and owner´s capital. Despite the challenges, the strength of the value proposition will. 治 政 allow that Healthy Diet Company differentiates itself 大since the beginning and keep the 立 competitive advantage deterring the entry of competitors. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 43. i n U. v.

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