Chapter One Introduction

 

1.1 Background

Colombia is a Latin American Country that during the last decade has been showingsustained economic growth (The World Bank, 2017) in despite of the internal conflict, thecorruption and poverty.Historically, the coffee and agricultural commodities have had such an important rolein the Colombian Economy. However, it is important to have into consideration the GDP asstarting point to see which are the economic sectors that contribute with the current countryeconomic growth.The GDP is the total value of everything produced by all people and companies in thecountry. It doesn't matter if they are citizens or foreign-owned companies. If they arelocated within the country's boundaries, the government counts their production as GDP(Amadeo, 2017).The current GDP shows a significant change in the Colombian economy in which theservices has become a key player as contributor to the GDP with a percentage near to 60%.In the services category is included the services related with food such as restaurants, orFood delivery services.

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1.2 Current Status

Nowadays, more than 1000 million of people around the world is overweight, itmeans that more than 1000 million of people have and Body Mass Index (abbreviationBMI) > 25 and at least 300 million of the world population is obese with a BMI > 30.According to Schutter (De Schutter, 2011), overweight and obesity resulted in 2.8 millionsof death around the world. Overweight and obesity are included within non-communicablediseases. Deaths that comes from this kind of non-communicable diseases exceed the death caused by communicable diseases and it is anticipated that deaths from noncommunicablediseases (NCDs) increase by 15% worldwide between 2010 and 2020. Likewise, thesediseases are lethal more rapidly in poor countries.Colombian Food habitsAccording to (Food Export Association, 2016) Colombia is ranked as the largestimported of processed food in South America, the figure reached in 2016 was US$ 496.8million, this figure represents an increasing to 9% compared with 2015. Imports ofprocessed food during 2016 includes Food preparations, processed/prepared dairy products,fats and oils, preserved/ prepared meats, processed vegetables.According to a survey published in 2010, by ENSI (Encuesta Nacional de la SituaciónAlimentaria y Nutricional en Colombia) 81.2 % of the population consumes processedfood. 69.6% of the population consumes package food and from those, 15.2% consumespackaged food daily and 45% consumes in weekly basis.16% of Colombian population add more salt to their food after serving it at table, thispractice is more common in people between 19 and 30 years old. 73.6% of Colombianpopulation consumes sausages (sausage, ham, mortadella, among others), and the greaterfrequency with which they do it weekly (50.7%). 98.6% of Colombians consume sugar,panela or Honey, 94.6% consume daily and 3.8% do so on a weekly basis. 95.2 % OfColombians eat fried food, of these, 32% do it daily. Regarding the daily proportion of fruitconsumption (1-3 times per day) is 66.8%

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Chapter Two Literature Review

 

2.1. Literature Review

This chapter analyzes the previous research regarding the most important fieldsrelated with this project.Chapter Two Literature ReviewThe concepts of entrepreneurship, entrepreneur and start-ups has been studied widelyduring last years. Rusu said that Entrepreneurship is a multidimensional concept that isdifficult to define (Rusu, 2002)In their paper, (Kolvereid & Isaksen, 2005) have said that Self-employment is definedas a continuous construct, measured by the number of average weekly hours spent workingfor the business. This is likely to be a more accurate indicator of self-employment than, forexample, a simple self-reported yes/no answerKrueger and Carsrud (Krueger & Carsrud, 1993) argued that entrepreneurialbehaviors, such as becoming self-employed or starting a new business, are mainlyintentional and therefore best predicted by intentions toward the behavior.Regard to the birth of the new Business Kolvereid & Isaksen (Kolvereid & Isaksen,2005) define this event as legal registration of the firm, for those all new ventures createdin Norway.In this field of entrepreneurship, Kolvereid & Isaksen (Kolvereid & Isaksen, 2005)affirm that the legal status of the business has been used as a criterion to determine whethera person is to be categorized as employed, self-employed or something else, thatdescription is important since it can influence the economic indicators of any country.

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2.2 Models / concepts / frameworks

While the purpose of this Business project is to completely build up our businessthought, we trust it is vital to first set up and clarify the system in which we will work.Having analyzed the hypothetical system in which our venture has created, we will nowclarify the instruments utilized through the strategy for success arranged by utilization.This model sets up a structure to analyze the level of rivalry inside an industry, and tohave the capacity to build up a business procedure (Grundy, 2006). This investigationbrings about the articulation of the 5 forces that determine the power of rivalry andcompetition in an industry, and along these lines, how appealing this industry is inconnection to speculation and gainfulness openings.Porter alluded to these forces as the micro environment, to balance them with forcesthat influence the environment on a bigger scale to the industry. These 5 forces are thosethat work in the prompt condition of an association, and influence in the capacity of this tofulfill their clients, and to get benefit.

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Chapter Three The Opportunity.......... 17

3.1. The opportunity explained ........... 17

3.2 Industry and Internal analysis ....... 21

3.3 Innovations brought to the industry by the new venture............ 26

3.4 Strategy ..... 27

3.5 Ethics and sustainability ...... 32

Chapter Four The Company and Team ........ 34

4.1 Legal structure ............ 34

4.2 Ownership .......... 36

4.3 The advisory board ..... 38

4.4 The management team ......... 39

Chapter Five Marketing Plan........... 43

5.1 Identification of customers ........... 43

5.2 Number of potential customers and potential sales revenues. ............ 44

5.3 Requirements of various customer segments........... 47

5.4 Appropriate sales and promotion approaches .......... 48

5.5 Analysis of how purchase decisions are made......... 49

5.6 Customer price sensitivity.... 50

5.7 Cost of acquiring and retaining customers...... 51

5.8 Strengths and weaknesses of competitors and possible reaction ........ 52

 

Chapter Five Marketing Plan

 

5.1 Identification of customers

To determine if the Business will have the expected sales grow and expansion, here isimportant to identify who are the people willing to buy my value proposition. Also, isimportant to determine the demand of the product my company offers and the appropriatemarketing strategies. To determine the appropriate marketing strategies, I need to knowwho is my customer, what are their preferences and profile. Also, here is important to notethat consumption of food is a primary need, therefore, the task now is to identify who iswilling to acquire food specially designed to have a balance in nutrients that will contributewith the well-being of the people.A recent study made by Nielsen, shows the consumer behavior related how muchColombian people eat outside home (Nielsen, 2016), in that study were exposed someimportant insights that could guide us to the current customer preferences in Colombia andhow much people are willing to buy healthy food. Figure 5.1 shows that the study revealsthat in general, Colombian citizen prefer to eat homemade food but 38% of the peopleinterviewed use to eat out home once to twice a week. The most valuable fact related withmy project is that Colombia ranks sixth among the 61 countries covered by the study, inpercentage of respondents taking lunch out of the home (72%). Here, we can see thatColombia, and specifically Bogotáis an appropriate location to offer our value preposition.In the next section I will describe the opportunity we have in main city, which is Bogotáand how my company will approach the customer.

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Conclusion

 

After collecting, organize and analyze all the information shown in this Business Plan,here we present the main points that help investors and owners decide if is viable keepgoing with the project or if is better invest on another project.Colombia is a good region to invest since we have been experienced the positiveeffect of the peace process during last year. Digital era has become a trigger that move theentrepreneurs to create products and services that make easier the life of people. But on theother hand, the customer awareness to healthy habits, climate change and sustainabilitytopics make customer more empowered about purchasing decisions, this situation makethat companies think about how to include and show customers how do they work tocontribute to the society, the environment etc.The differential factor of my Business plan is that it was born from the real andpersonal experience and therefore, I understood that the country is facing an overweightproblem that can be controlled by the education of good habits.The potential customers are there, waiting for options to change their habits, evenwith the survey we found that right now, people is seeking to follow some advises toimprove their habits, the advises comes from different places, from doctors to videos onsocial networks.

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References (abbreviated)