New Venture Development Business Plan Essay Example | Topics and Well Written Essays - 4500 words

New Venture Development Business Plan - Essay Example It is a private company incorporated in Hong Kong. There is a shift towards consumption of organic foods in China, especially in Hong Kong city because of extensive campaigns urging people to embrace organic products. Increasing population, high number of food poisoning scares as well as need for healthy eating is driving demand of organic vegetables and fruits to the roof in Hong Kong. Therefore, organic products markets is growing rapidly and is promising higher returns to investors. The business is a limited private company owned by a single person. The owner of the company contributed HK$106,000 and borrowed HK$60,000 to finance start-up and part of the working capital. Table of Contents 4.4 Regulatory requirements 8 4.5 Industry challengers 9 5.0 Customer 9 5.1 Understanding the customer 9 5.2 Target customer profile 10 6.0 Competition 10 6.1 Competitor Analysis 10 6.1.1 Direct Competitors 11 6.1.2 Indirect Competitors 11 6.2 Competitive analysis 11 6.2.1 Competitive Advantages 11 6.3 Entry and Growth Strategy 12 7.1 Objectives 13 7.5 The Product 14 8.1 Overview 15 8.2 Pricing strategy 15 8.3 Sales Tactics 16 8.4 Advertising and Promotion 16 8.5 Marketing Communications Strategy 16 9.0 Operations Plan 17 10.2 Personnel Plan 19 11.1 Start-up Summary 20 11.3 Breakeven analysis 21 11.4 Balance Sheet 21 11.5 Income Statement 21 11.6 Cash Flows 21 13.0 References 23 14.0 Appendixes 24 1.0 Introduction The organic vegetable and fruit market has been growing steadily in Hong Kong. This is because disposable income of people in China, especially Hong Kong is steadily increasing. In addition, in recent years, there have been incidences of food poisoning caused by chemical components in food and more people are shying away from chemically processed food. They are becoming more health conscious and are spending thousands of dollars to purchase organic products, especially food. Therefore, the market segment for organic vegetables and fruits is promising. 2.0 The orga nic vegetable concept After working in a grocery shop for over one year, Tim Chan discovered that most consumers in Hong Kong were turning to organic foods especially vegetables and fruits because they were consumed on daily basis. This is because of rising concerns of food poisoning and danger posed by processed and non-organic food to people’s health as informed by the media and health care practitioners. Four in every eighty consumers who visited the food store where Tim Chan worked asked for organic fruits and vegetables. Therefore, Tim Chan identified a growing opportunity to run an organic food store that specialized in vegetables and fruits sourced locally and from western countries. 3.0 Opportunity Rational China is one of the fast growing and lucrative markets in the world with a huge business promise to thirsty entrepreneurs and business persons. As disposable income increases in urban China, people are more preoccupied with higher standard of living and are turning to organic products, especially food to achieve better health status. China’s Urban and rural population spent between 37.9% and 43.7% of their disposable income on food (Lu ,2010). The market for organic food is big and unquenchable. According to (NTZE 2010), the supply of organic foods in China, especially Hong Kong is very low and there is need to increase supply. In addition, food and grocery market segment is expected to grow by 6.6% and 6.1% in 2011 and 2012 respectively. High demand for organic frui