Business Report for Business Idea – Wonky Edibles
Business Report for Business Idea – Wonky Edibles
Value Proposition
An important aspect that can enable the company to establish considerable value proposition is to have a thorough knowledge of the competition in the market . Since the competition usually deals with well-shaped and colored food, which is also what is usually offered in the market at average prices, one of the most important components of Wonky Edibles is low prices. The food that is offered by Wonky Edibles is not cosmetically perfect. However, it is perfectly edible. Since the average consumer usually strives to find the perfect fruit or vegetable, therefore, the imperfect looking produce is either never harvested or never sold. Wonky edibles would offer these fruits at low prices and, therefore, attract the attention of cost savers.
The company is at the moment, however, the sole business that aims to operate on such a cost saving structure at the moment. Much of the consumer market is usually an average working class. Therefore, they usually do not have the time to go out every week or every other day to buy fresh fruits and vegetables. Wonky Edibles provides the service of shopping for fruits or vegetables at the click of a button. It also has a physical storefront; however, the company expects most of the sales to originate on its e-commerce website due to the recent boost in the e-commerce website. The company also encourages healthier living as online delivery at relatively low costs would encourage customers to buy fresh produce easily and readily. In addition, to this, there are many individuals who wish to contribute to the ecology of the earth by reducing wastage and consuming organic food. Wonky Edibles also provides a suitable value proposition for this customer segment. It will, therefore, attract the attention of cost savers, healthy eaters, and environmentalists.
The company intends to earn sales and revenues from the targeted market via online payment procedures. While half the profits will go into the buying of fresh produce for future sales, the rest will be classified as revenues, after the deduction of expenses. The company will offer the customers with specific box sizes such as Extra Small, Small, Medium, and Large. While the Extra Small box feeds one individual, it would cost £10 whereas the Small box would feed between one to two individuals and cost £12. Similarly, the Medium box, which feeds around two to three people would be priced at £16, and the Large box would be costing £22 and feeding around 3-5 individuals. These boxes are priced in a manner that about 40% of the prices are the profits for the company and, therefore, could be utilized for re-investment or wage payments of the employees of the company. The rest of the 60% of the prices are the actual cost of the products and will be paid for by the initial investment of the company. After the first few sales, further, reinvestment will be gained from the sales revenues of the company.
A company can increase its sales revenues on the basis of strategy, structure, people and processes . Therefore, the company intends to follow a well-established strategy and a low-cost structure in order to increase the sales via offering low prices as well as increase revenues of the company. In addition, to this, the company will also ensure that the people and processes employed at Wonky Edibles will be efficient and effective.
List of References
Evans, M., 2013. Why Value Propositions Are Important (And How To Create Them). [Online] (http://www.forbes.com/sites/markevans/2013/10/31/why-value-propositions-are-important-and-how-to-create-them/#5a7ff3534b0d).
Keenan, J., 2014. The Four Key Areas for Increasing Sales Revenue. [Online] (http://www.forbes.com/sites/jimkeenan/2014/06/02/the-four-key-areas-for-increasing-sales-revenue/#190de50a2664).
