Chapter One Introduction
1.1 Research background
1.1.1 Why I conduct this study?
Nowadays, people’s concern about safe and healthy food encourage the expansion ofplant-based lifestyle, since plant-based diets are low fat and provide daily requirements ofmacro- and micronutrient for young people and adults. For that reason, the food and drinkindustry is focusing on welcoming products, which include plants as key ingredients informulas for packaged and home cooking products that help consumers’ wellness prioritiesand omnipresent health. This will lead the food and drink industry toward moreinnovations that exalt the inherent healthy properties of plants.According to Mintel Company, the world population is increasing the consumption ofyogurts at the same time that the increasing demand for healthy products rise most rapidly,therefore the yogurt market need to integrate a large variety of healthy yogurts in order toavoid boredom of people, who always consume the same yogurts, and most important tosatisfy the customer need of having a healthy lifestyle through good eating, for that reason,it is very meaningful for a businessman to enter this market.In 2015, the most consumed dairy products in Spain were yoghurts and otherfermented milks, 680 million of kilos, particularly the Spanish individuals consumed onaverage 15.25 kilos of yogurt.The current yoghurt market in Spain is one of the most dynamic in the milk sector,companies typically pursue the constant differentiation strategy, launching new products,which incorporate new aggregates, vary and innovate packages or adapt to changes inconsumer demand for different varieties and categories, for this reason, strong investmentsare made in research and development, customer services and communication actions.
1.2 Current status
The following management studies, used by scholars, are methods of collecting dataor information needed to conduct a market research.The survey is a verbal or written questionnaire that give substance to the business plan,since it collects information from potential customer.Advantages: accurate data can be obtained through this techniqueDisadvantages: respondents can give any false or misleading answer to any suchquestion or make a false or misleading statement.To avoid the disadvantages mentioned above for the survey, it is also recommended toconduct an interview due to the interviewer usually asks open questions and lead theinterview according to the answers given by the interviewee. Therefore, the interview is averbal questioning that may easily be modified in real time.Advantages: it offers the possibility for further discussion on the topicDisadvantages: high cost per interviewed person. The information collected and itsinterpretation depend on the ability of the interviewer.The observation technique consists of observing people, phenomena, facts, cases,objects, actions, situations, etc., from which the scholar obtain the necessary informationfor the investigation. An example of the observation technique could be to visit the placesfrequented by our targeted audience in order to observe their behavior, for example: howthey examine the products, which king of question they ask, which kind of products theydecide to buy, etc.Advantages: it allows us to obtain accurate information that could not otherwise beobtained, or information that people could not or would not offer us for various reasons; itis easy to implement and low cost.
Chapter Two Literature review
2.1 Management theories
2.1.1 4Ps of marketing
It is a model that enhances the four classic elements, which are product, place,promotion and price, with which E. Jerome McCarthy defined the concept of the marketingmix in 1960 –this is the analysis method used to describe the marketing strategy developedby companies in any sector.The first step is to meet any specific customer demand with the company’s offering,for that purpose is necessary to ensure what is the value preposition, related with the valuethat the brand promise to deliver, acknowledge or communicate to the customers, in otherwords, the value creation for our clients.The best way of understanding the 4ps should be asking ourselves the followingquestion:Product: What benefits do you offer your customers? What do you sell exactly? Whatcharacteristics define your product or service? Consider not only what, but how: packaging,name, delivery method, attention, times, etc.Price: What value does the product have for the customer? Are there standard pricesalready established for products in this area? If we lower the price of the product, will webe able to increase an advantage in the market? Is your product going to be exclusive oreconomic? The price fixing of a product is not only the result of its costs plus the expectedprofit, but a complex process that impacts on the clients’ image before.Promotion: how will you make your product or service known? Where are yourcustomers? According to the media you use, the messages you choose and the investmentyou make, you can reach different audiences. You have to take into account traditionalcommunication methods, such as promotions and discounts as well as loyalty campaigns.
2.2.1 Canvas Model
It is used as business creation tool, which use a strategic management template fordocumenting existing business model or developing new ones and, as indicated in thetemplate beside, describe the customer segment: mass market, niche market, segmented,diversify and multi-sided platform; customer relationship: personal assistance, dedicatedpersonal assistance, self-service, automated services and communities; the value proposition:quantitative and qualitative; the distribution channels; a brief summary of the revenuestreams: asset sale, usage fee, subscription fees, lending, licensing, brokerage fees andadvertising; the key resources, partners and activities as well as a brief summary of the coststructure: cost-driven, value-driven, fixed and variable costs and economies of scale or scope.It helps companies align their activities by outlining possible trade-offs, being a helpful toolthat encourages analysis, understanding, creativity and discussion (Alexander Osterwalder,2004, thesis University of Lausanne)
Chapter Three Opportunity And Innovations ..........20
3.1.1 Market research .............20
3.1.2 Gap (need and its satisfaction) ..........40
3.2 Industrial and internal analysis ......41
3.3 Innovations brought to the industry by the new venture........48
3.4 Strategy ............49
3.5 Ethics and sustainability ......51
Chapter Four Company And Team......52
4.1 Legal structure. ..........52
4.1.1 Limited partnership .......52
4.1.2 Established requirements.........52
4.2 Ownership ........53
4.3 The advisory boards.............54
4.4 The management team .........56
4.4.1 Expected contributions by each team ..........56
4.4.2 Expected salary....58
Chapter Five Marketing Plan .....59
5.1 Customer analysis and segmentation .......59
5.2 Requirements of the customer segment .............60
5.3 Marketing mix............64
Chapter Five Marketing plan
5.1 Customer analysis and segmentation
5.1.1 Identification of customers
As is well known, the mass marketing is currently in decline due to it is difficult tocreate an unique attractive product for every group of the population, however, thearomatic yogurts are intended for the mass market due to their innovative value prepositionis an excellent competitive advantage focused on the general public, being attractive foreveryone because of their health benefits, in other words, thanks to the current healthylifestyle trend, everyone (whichever is their age, gender, occupation, social and economicstatus, personality or lifestyle) are interested in having or maintaining a healthy lifestyle byconsuming products that favor good nutritional habits and health benefits.Our most important customers will be the people who believe and are aware of themedical properties that have the aromatic plants and the people who wish to maintain ahealthy lifestyle and to consume natural product.
There is essential to know the employment law “Real Decree 742/2016” because itdescribes minimum requirements in relation with labor aspects. Yogurt companies mustconsider that Ministry of Labor is always modifying labor law aspects.Food quality regulations are relevant because it describes the minimum requirementsthat a yogurt company must take into consideration such as cleanliness and process of rawmaterials.The world population is increasing the consumption of yogurts at the same time thatthe demand for healthy products rise most rapidly, therefore, the yogurt market need tointegrate a large variety of healthy yogurts in order to satisfy the customer need of having ahealthy lifestyle through good eating habits. In addition, thanks to the Spanish populationis more aware of the importance of having a healthy lifestyle and a balance diet, ouraromatic yogurts are more likely to be successful in markets terms.Yogurt companies could recognize the unemployment as an opportunity regardingworkforce availability, however, it could be perceived as threat regarding population lesspurchase capacity. On the other hand, despite the fact that the interest rate is approximately0.0%, in the next 5 years, there is estimated that increase it, having an impact on thebusiness performance. In addition, it is expected that the population purchase capacityincrease due to the economic growth tendency.The yoghourt industry is attractive for our aromatic yoghourts because, despite the factthat it has medium barriers to enter, weak suppliers and strong buyer bargaining power, aswell as many substitute product and much competition, the forecast yoghourt market growthis wide and the aromatic yoghourts are differentiated products (competitive advantage).The globalization considered as a great opportunity due to there are not multinationalcompanies that elaborate aromatic yoghourts in the industry; our company could be thefirst one.