Starting Up an Electronic Food Vending Company in Dubai - Example

EXECUTIVE SUMMARY We intend to start up an electronic food vending company in Dubai. The name of the company will be Organic Experience. The logo of the company is organic freshness. The target market for the company is the whole of Dubai. Through this, we will be able to supply out products to both the suppliers and the customers. This will be in a bid o increase the reach for the company and the returns that will arise thereafter. With the headquarters of our company being located at Dubai, we will be able to supply our products to the soaring population of the town. With time, we will be able to expand into the other cities in the country. This will be like the city of Abu Dhabi. The customers that we seek to attract will be all ages of the customers. There is however a high number of middle aged population and we will hence seek at using this to our advantage by making products that are more attractive to them. The main products in our lines will be fruits and other salads. They will hence include; Fresh fruits Pudding Fruit juice Vegetable salads The main reason underlying our intention to venture into the market will be to meet the high demand for the products. The high temperatures of Dubai have made the people to have an increased demand for fruits and other products. This is so as to quench their thirst that is high in the region. Table of Contents EXECUTIVE SUMMARY 1 Table of Contents 2 THE MISSION STATEMENT 3 THE COMPANY INFORMATION 4 PRODUCTS / SERVICES AND PROMOTIONS 4 MARKET ANALYSIS 5 CUSTOMER ANALYSIS AND FINANCIAL PLAN 8 EXIT STRATEGY 9 CONCLUSION 10 References 12 THE MISSION STATEMENT Mission The company will focus on the production of high quality fruits and salads. This will also be done with the use of the latest trends in technology as depicted by the vending machine. Objectives of the company The company has several objectives that it seeks at fulfilling in the long run to the society at large and to the consumers of its products. a. To manufacture the best quality products in line with the demands of the customers in the market. b. To offer the best in terms of the technologies used in the manufacture of the salads and other products and also in the vending of them to the market. c. To enhance price competitiveness in the market by offering the most suitable prices for the products of the company (Ali, 2010). d. To ensure the maintenance of good hygienic practices in the conduct of the business activities to the delight of the customers of the company. e. Ensure that we create an environment of quality output with suitable and reasonable prices for the desire and the satisfaction of the customers. Through the ensuring of this, the company will be able to counter the competition that exists in the market and at the same time increase the returns made due to high customer numbers. The company through this will also be able to blend well with the target market. They include; a. All age groups of the town b. The upper class population c. The middle class population d. The lower class population THE COMPANY INFORMATION The company seeks at the production of juices and other fruit and vegetable salads to the rising demand for them in the city. This will be through the ensuring of quality and originality in the products that t will use in the manufacturing process. The company also intends to put into use a food vending machine. Through this, the customers will be able to select the products that they prefer from an onscreen menu. Through this, it will be processed for them and they will have to pay and receive their products (Dehghan, etal, 2005). The use of the vending machine will be beneficial to the company. This is because it will see to it that there is a reduction in the number of resources that are required for the staff to sell the products to the customers. There will also be the elimination of the delays that characterize the human operations. This will make the company to offer the best and in the least time possible. The vending machine will also ensure that the company can serve people from the different corners of the world. This is because it will eliminate the language barriers that may exist in the operation of human employees. This will hence enable it to supply to different people (Jared, 2000). The onscreen menu will also give room for the customers to see a photo preview of the intended product that they seek to consume. Through it also, the company will be able to get the best from the use of the recent trends in the technology used. They include efficiency in time, quality and cost of the services that are rendered. PRODUCTS / SERVICES AND PROMOTIONS The company will be concentrating on the production of four main products. They are a. Fresh fruits b. Fruit salads c. Vegetable salads d. Fruit juices The products of the company will be 100% organic and will as such have no additives to the freshness. This will make the people to like the originality in the products of the company. There will however be many tastes to the juices (NBC News, 2009). This is due to the many different types of fruits that will be at the disposal of the company. MARKET ANALYSIS Over the recent past, the city of Dubai has hit the world headlines for the right reasons. It has not only become a business centre but also a tourist hub for the whole world. Its iconic landmarks have played an important role in the seeing to it that this is possible. The city is however located in a geographic area that is characterized by very high temperatures. This has made the people who live in Dubai and those that visit to Dubai every year to have high demands for fruits and other cool salads. This increase in demand has not been met efficiently by the companies that are operational in the city. This has given room for the opening up and the success of the new industries. Organic Freshness intends to use this niche to its advantage. It sees the possibilities of success as being very nigh (Krane, 2009). Through the offering of high quality produce, it will be able to meet the demand that exists in the market and that has not been met effectively. The number of visitors is expected to be on the rise. This will also result to the rise in the demand for the fruits and juices in the region. Through this, the returns of the company will be on an upward trend. Through the ensuring of quality in the produce of the company, it will be able to set itself apart from the rest in the industry. The increase also in the demand for the juices and fruits by the resident population in the city will also mean that the company will have effective operational and successful undertakings. Table of number of fruits sold in tons against the years According to the table, the number of fruits that are consumed in the city over the years has been on the rise. This is indicative of the continued growth that is expected in the industry and the high prospects for development that are existent. Competitor analysis The market that the company seeks to enter in is subject to much competition. The competition if from other companies that provide similar and / or slightly differentiated products to those that the company will seek to offer. This makes the company to have to fight for its customers. COMPETITOR LOCATION MAIN AREAS Yalda Trading Co LLC Dubai Fresh fruits and vegetables Gulf Fruits Trade Company LLC Dubai Fresh fruits and vegetables Ajmeer General Trading LLC Dubai Fresh fruits and vegetables The first competitor to the company will be the Yalda Trading Co. LLC. It is the leading importer, exporter, wholesaler and distributor for all the kinds of fresh quality fruits and vegetables. These are the vegetables from all the parts of the world (Patricia and Alberto, 2010). It will offer the greatest competition due to the fact that it has been in the industry for a long period of time. It also has established good relations with the customers to make it a threat to the new firms that are joining the market. Its operations are based in Dubai which is the city that the company intends to capitalize on. This will offer great challenge for the company in its operations. The second great competitor to the company is the Gulf Fruits Trade Company LLC. This is similar to the other competitor in terms of the services and products that it avails to the consumers. It has its operations based in Dubai city. It has been in existence for a lengthy period of time. It has the endowment of massive resources that it uses to its advantage in the conduct of its business. It also has established networks with the customers and it assists in the development of the available resources of the company. Its main specializations are in the fruits and vegetables in the market. The company also boasts of having a large market share. This offers great competition for the entry of new companies into the market (Krane, 2009). The third force of competition for the company is the Ajmeer General Trading LLC. It also has its headquarters and main branches located in Dubai. It also has a large market share to its advantage. Its main areas of operations are in the fruit and vegetable industry. Just like the other firms in the industry, it has well established and developed networks. This poses difficulties for development of the newly launched businesses in the same field. The company as highlighted is subject to much competition in its undertakings and in its entry into the market. As such, it needs to put in place market and product differentiation techniques. This is in order to be able to penetrate effectively and efficiently. The company also needs to employ the latest trends in technology in order to have an upper hand in the market. Price competition is also crucial for the company. This is because it will enable the company to be able to counter the prices that are charged by the competitors and which are generally high as compared to the market accepted prices. CUSTOMER ANALYSIS AND FINANCIAL PLAN The demand of the fruits in the city has over the recent past been on the rise. Many people are demanding for the organic fruits in this case. This makes the demand to be very high and making the prospects for the development of a company that deals with organic fruits to be high. Trends in the customer preferences -Most customers prefer mixed fruit juices. This makes it best for the company to have different mixed fruit juices to the avail of the customers. -The customers also have a taste for 100% original products with no additives added to them. As such, the company should concentrate on the production of additive free fruits products and vegetables (Petrosyan and Hayastani, 2007). -The customers also prefer commodities with reasonable pricing to them. As such, they dislike over charged commodities. In order to meet this requirement, the company should charge reasonable prices for all its components. -The customers also prefer the commodities that are prepared with the highest levels of technology and high hygiene levels. With this, it will be able to acquire the support from the customers. Barriers to entry -High competition exists in the market -Price competition -Maintenance of high quality levels -High startup costs Overcoming the barriers to entry -Ensure product and price differentiation in order to counter the competition that is prevalent in the market. -The company should also employ adequate marketing techniques in order to pass knowledge of its products to the customers (Rehman, 2008) EXIT STRATEGY Legal strategies In order to be allowed to operate, the company should first acquire an operative license from the council authorities. They should also receive the certification from the health departments. This is in order to put a check on the hygienic levels of the foods that are sold by the company. The license for the business facility security act must also be adhered to. The staff must also be well-recognized using identifiable staff IDs. The personnel The company by operating under an organic food vending machine, is machine intensive. As such, lesser staff numbers are required in the process. This makes it use lesser resources on the staff. Inventory The company by dealing with highly perishable products requires the use of food storage measures. They include the use of refrigeration measures. This calls for the use of resources in the acquisition of such machines and freezers required. This is also because the main items used are the fruits and the vegetables. CONCLUSION In conclusion, it is important that the company should put in place adequate marketing techniques in order to be able to sustain itself in the market. It should also put in place adequate price and product differentiation techniques. This is in order to get the support of the customers at all times. It should also ensure that it has put in place the latest trends in technology. This is so as to get the benefits that come with having the latest technological trends. The company should also ensure that their premises are hygienically situated and that they are clean in appearance. This is so as to get the confidence of the customers. Through the ensuring of high quality output, the confidence levels on the products of the company will be high. The quality should also come at competitively low prices. This will make the customers seek to use the products of the company at all times. This will make the company to be able to enter, develop and succeed in the fruit and vegetable market. References Ali, S2010, Dubai: Gilded cage, New Haven, Yale University Press. Dehghan, M, Nusrath, F&, Anwar, T2005, Development of a semi-quantitative food frequency questionnaire for use in United Arab Emirates and Kuwait based on local foods, BioMed Central Ltd. Jared, B2000, Dubai real times, New Delhi, India: HT Media. NBC News, 2009, Dubai: City of Money and Mystery, New York, NBC News. Krane, J2009, City of gold: Dubai and the dream of capitalism. New York: St. Martin's Press. Patricia G & Alberto, F2010, Phenolic-Compound-Extraction Systems for Fruit and Vegetable Samples, Molecular Diversity Preservation International. Petrosyan, S& Hayastani, A2007, Strategic marketing plan for exporting Armenian fresh fruits to the United Arab Emirates (UAE), Yerevan, Armenia, American University of Armenia. Rehman, A2008, Dubai & Co: Global strategies for doing business in the Gulf states, New York, McGraw-Hill. Read More