Introduction
In the 21st century, the pursuit of sustainability occupies a key position on the global agenda. In this regard, the U.N. (n.d.) has identified seventeen sustainable development goals, the completion of which will make the Earth a safer environment for all its citizens. The present proposal is completed within the framework of the U.N.’s sustainable development goals. It implies the establishment of an ecological, healthy food and beverage delivery service. This idea corresponds with two sustainable development goals, which are climate action and responsible consumption. The first aspect implies that the service will promote and engage green food manufacturers who acknowledge the principles of sustainability. Such producers reduce the environmental impact of their activities through innovation. Second, responsible consumption is to be ensured from the clients’ side. More specifically, the service is to target the people who make meaningful efforts to reduce waste and support responsible businesses. Through this combination, the project will support green initiatives in the food sector, making them affordable and accessible.
Target Market
At the current stage, the project targets the U.K. population with a possibility of expansion in the mid-term. More specifically, the service will start its operations in Devon, South West England. The core of the target audience will comprise young adults with a life interest in ecological activities and a strong position on current affairs. As such, an average customer will be a person of any gender between 21 and 35 years old, permanently residing in Devon and supporting responsible consumption. This person will be an active user of the Internet and social media, as well, with an active experience in online delivery purchases as a strong enabler of the new service use (Prabowo & Nugroho, 2018). They are unlike to own a personal vehicle, preferring public transportation or bicycle as a greener alternative.
Competition
Considering the format of the proposed project, the key competition will include other delivery services. Traditionally, many restaurants and cafés offer a delivery option to their customers. Moreover, this format had gained additional importance in the age of COVID-19, when lockdown protocols eliminated other opportunities (Mehrolia et al., 2021). However, the public appears to favor online applications in which various restaurants’ offers are aggregated. According to ASDA (2021), the list of leading delivery apps in the U.K. includes Deliveroo, Uber Eats, and Just Eat. These companies rely on the aforementioned format of aggregating all locally available offers in a single interface, providing their customers with a possibility of choice. The proposed service will use a similar framework, meaning that these companies will be the primary competitors in the field.
Value Proposition
The key differential idea of the proposed project consists of making responsible consumption affordable and accessible. The interest in greener practices in the food and beverage industry is not a novelty per se. However, these sustainable options are often associated with higher prices. As a result, many people who would like to support green initiatives in this sector hesitate to do so because of their financial situation (Tan et al., 2016). The proposed service eliminates this factor by negotiating the best prices possible with all suppliers. This way, the customers will be able to have a healthy, eco-friendly meal at the regular price of a McDonald’s. Furthermore, environmentally aware clients will not have to worry about the selection process. With regular delivery applications, it may be time-consuming to review all the possible options and find a “green” restaurant. In the proposed service, each outlet will be thoroughly examined and only included if it meets all standards in terms of sustainability, quality, and ethics of the business. Ultimately, each customer will have a quick, reliable choice at an affordable rate, bringing sustainable food practices closer to consumers.
Key Points to Achieve
First of all, the project will need a strong base of reliable suppliers to fulfill its purpose. Within this context, it will be vital to conduct in-depth research on local food manufacturers. The array of key information includes the adherence of a specific manufacturer to sustainable development goals in the food industry, as well as the work ethics and equality policies. The lack of attention to such matters will inevitably compromise the integrity of the service, negatively affecting its image and customer loyalty. Second, the customer base itself is to be formed, which is why brand recognition is another crucial concept to achieve. This point may prove to be challenging, as it consists of attracting clients to a brand-new service. In other words, the task is to convince the customers that they should opt for this project instead of already familiar platforms.
Solution Differentiation
The key novelty of the solution consists of its full orientation on sustainable food and beverage practices. The project will not pursue collaboration with typical manufacturers and outlets for the sake of recognition. Instead, it will remain loyal to the philosophy of environmentally aware farming and production. For suppliers, fair rates and increased exposure will contribute to the generation of revenues and the development of green businesses. As a result, higher volumes will yield better prices for the end consumers. In turn, clients will be certain that each pound they pay will support the entrepreneurs who truly meet the standards of sustainable and ethical business practices.
Market Research
In order to address the key requirements of the market, it is necessary to conduct the preliminary research on the envisaged operational environment. This process was completed in two steps, incorporating primary and secondary data. Considering that the project does not aim at a global or nationwide presence from its start, the emphasis was laid on South West England when compiling primary data and organizing research activities.
Primary Research
During this stage, a brief survey was provided to young adults permanently residing in Devon. Each of 36 people who completed it meets the profile of an average customer of the envisaged project. As per the results, 65% of the respondents reported a “strong need” for such a platform with green-only delivery options. 24% mentioned that it would be a nice addition to the current selection, whereas only 11% either disapproved of it or deemed the project “unnecessary”. 60% of the respondents said that they currently attempt to support environmentally aware practices in food and beverage manufacturing.
However, this philosophy is currently associated with certain difficulties on the consumer’s end. 55% of the participants referred to the lack of affordable options as the key impediment. Next, 30% of the respondents said that the key problem was related to information, as they struggled to tell which restaurants and providers are actually sustainable. According to the third most popular opinion (14%), green options are simply too difficult to find and visit. This data confirms that the envisaged project will be able to meet the key requirements of young adult customers seeking to support environmentally aware practices.
Secondary Research
In spite of the global sustainability discourse, the actual situation fails to comply with the proclaimed environmental policies of developed countries. According to Delabre et al. (2021), “current food production and consumption trends are inconsistent with the Convention on Biological Diversity’s 2050 vision of living in harmony with nature” (para. 1). In other words, an actual customer seeking to support green food industries is unlikely to find a viable option on a short notice, as the necessity of a long selection process hinders them (Soni et al., 2020). Furthermore, many people are prevented from engaging in responsible consumption by the barriers related to financial issues and limited choice (Anaba V. & Anaba D., 2021). Saviolidis et al. (2020) concur, adding that the lack of stakeholder engagement is the largest obstacle to sustainable consumption. Such projects, as the one that is proposed, will contribute to global environmental awareness and stakeholder engagement.
Marketing Strategy
Considering the profile of the target audience, an online-based marketing strategy is envisaged. The service will be positioned as the first platform that connects responsible manufacturers with responsible consumers. Such notions as “green”, “sustainable”, and “responsible” will be embedded in the branding materials, including the name, logo, mission statement, and marketing materials. Social media advertisement is expected to become the key channel of customer acquisition due to its increased young audience outreach potential (Luzon et al., 2021). The project will rely on Google Ads search queries, as well as the promotion in the key mobile app catalogs. Next, context advertisements will be purchased for social media, namely Instagram and Facebook. Finally, a portion of the promotion budget will be allocated to influence marketing, as popular opinion leaders are likely to sway their followers toward a new product.
Situation Analysis
Strengths
The strength of the envisaged project consists of its alignment with the vision of a progressive society. Sustainability ideas are actively discussed on various levels, which corresponds with the direction of the proposed business. Following the initial launch phase, the platform is likely to remain afloat because of this factor. In addition, the open promotion of sustainable and environmentally aware ideas may attract the support of the government and large organizations. After all, environmental awareness is fashionable today, meaning that the interest in the project will be increased, as well.
Weaknesses
Ironically, the key weakness of the project lies in its focus on environmentally aware partners with affordable rates. This philosophy limits the choice of suppliers, as well as the overall recognition potential of the project. Because of it, it will not be possible to build an initial customer base with globally known partners, such as McDonald’s, KFC, or Starbucks. These giants of the industry do not align with the locally sourced, environmentally aware paradigm of partner acquisition. Therefore, the initial marketing expenditures will be increased considerably to put the company in the spotlight of public attention.
Opportunities
At the same time, the opportunities of the new project are vast in the mid-to-long term. The industry of sustainable food and beverage production is on a stable increase, which includes the growth in public attention. Initial success is likely to attract more investments in this sector, which will be beneficial for all players. With improved recognition and cash flows, sustainable manufacturers will be ready to expand their offer and develop new products. Simultaneously, customers will enjoy a better selection at more affordable rates. The proposed platform being the ultimate intermediary between them, it will see increased benefits from both sides, solidifying the position in this market.
Risks
The majority of envisaged risks are associated with the initial stage of the project’s development. First of all, the competition in the overall delivery sector is considerable. Along with the growing demand in the age of COVID-19, many companies have designed their own online delivery services (Mehrolia et al., 2021). Even though the proposed platform is distinguished by its heavy emphasis on green suppliers, it will need to perform against the well-known giants of the industry. At the same time, a solid supplier base is to be established. The failure to do so will indicate the company’s inability to fulfill its self-imposed expectations.
Operations and Logistics
The operations will be controlled from the headquarters situated in Devon. The exact location of the base is not crucial, as the customer will not have to visit the premises at all. The core of the operations will rely on courier logistics in terms of delivering the product from manufacturers to consumers. Most couriers will be using bicycles as a matter of supporting green transportation options. In addition, such an organization of logistics will eliminate fuel expenses. In addition, short-distance delivery can be completed by walking couriers, as well. For longer deliveries, the company will purchase two electric vehicles. All active partner and customer relations will be processed at the headquarters, whereas several remote workers will be needed, too. They will conduct a continuous search for new opportunities, contact potential partners, complete their evaluations, and present the benefits of cooperation.
Business Model
The business is to incorporate a network of partners, connecting them with a wider customer base through the command center. Each partner will first negotiate a net price, which will reflect their immediate earnings for entry to the menu. A service fee of 10-15% will be added to it, generating profits for the platform along with the delivery rate. The latter will depend entirely on the delivery distance, varying from a minimal walking-courier fee to a higher rate for the use of electric vehicles. Upon the completion of a quarter, the most successful partners will receive a one-time performance bonus as a stimulus to remain engaged in the project. All contracts will be signed for one year, granting the opportunity to renegotiate the tariffs at the end of each fiscal year. For long-term partners, a revenue-sharing model will be proposed. In their case, no service fees will be applied and the platform will instead take 30-40% of the initial net price. At the end of each month, the partner will have a negotiated percentage of the service’s overall profits across the same period.
Conclusion
Overall, the creation of such a business is feasible from economic, political, and social perspectives. It will serve as the key bridge between environmentally aware consumers and responsible suppliers, helping them find one another. The potential market investigation shows a high demand for such an opportunity as customers seek to support truly responsible businesses. It is projected that such a project will find its niche in South West England, taking another step toward the completion of the global Sustainability Goals.
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