The Nutritional Business - Research Proposal Example

NUTRITIONAL BUSINESS PROPOSAL Name: College: Course: Tutor: Date: Executive summary There is no shortage on information and knowledge about food, nutrition and health products, although its huge amount is often confusing to consumers who are not able to differentiate between good information and misinformation. With health consciousness in the contemporary society experiencing an exponential increase, it is pertinent that the society can access the correct and evidence based information and knowledge regarding their diets and health products easily and in a timely manner. The proposed business hopes to bring together the fragmented sources of information under one roof by leveraging on internet and mobile technologies, and social media platforms to target 16 to 35 year olds, who are the most avid users of smartphones and exhibit most concerns about their health in the society. The business proposes to establish an online portal that utilizes social media platforms to provide users with a one-stop-shop from where their health concerns regarding nutrition can be addressed. An application and a web portal shall be availed from the users, particularly of mobile technologies. From this portal, users can access new and emerging knowledge regarding nutrition and health related products, can interact with experts to address any misconceptions they may have, and can access correct information regarding diets and health products, while sharing their experiences through reviews as well. Financial appraisal Costs The business is a startup and will therefore require initial startup capital, which in this case is modest considering that it will be a sole proprietorship. The costs of initiating the project will comprise of cost of fixed assets and operating costs for the first six months. The start-up capital would be as follows: Acquisition of a professional camera at a cost of £ 400 Acquisition of a laptop at a cost of £ 400 Internet access at a cost of £ 15 per month Table 1 summarizes the start-up budge for the business Table 1. Startup Budget Item Unit cost (£) No. of units Amount (£) Fixed assets Professional camera 400 1 400 Laptop 400 1 400 Operational costs Internet access (monthly) 15 6 90 Total 890 Revenues The revenue streams from the business comprise of payments by the YouTube channel and Instagram advertisements. The content creator is expected to earn £ 40 for every 1000 views registered when starting out as a small influencer. However, within the first six months, the content developer is expected to have reached the level of a medium influencer earning £ 300 per post. Table 2 summarizes the revenue projections for the first six months of business when it is expected to have reached the level of a medium influencer. Table 2. Monthly revenues No. of followers Rate per post (£) No. of posts per week Weekly earnings (£) Monthly earnings (£) 1,000+ 40 2 80 160 5,000+ 75 2 150 600 10,000+ 150 3 450 1,350 20,000+ 300 3 900 2,700 Table 3. Revenue projections Month 1 2 3 4 5 6 Total No. of followers 1000+ 1,000+ 1,000+ 5,000+ 10,000+ 20,000+ Revenue (£) 160 160 160 600 1,350 2,700 5,130 The business should break even in the fourth month of operation when the initial capital is expected to have been recouped. By the end of the sixth month, the business is expected to have a net cash amounting to £ 4,240 as illustrated in Appendix 1. From then on, the proceeds from the business can be employed for improvements and diversification of revenue streams in the long term. For instance, the additional revenues can be used to host advertisements about healthy foods, nutritious diets, health related products and food outlets. These advertisements would create an additional revenue stream for the company, enhancing its profitability over time. Sensitivity analysis This section addresses the risks associated with the proposed business and focuses on the uncertainties associated with the assumptions regarding the business environment as might affect the business outcomes. Project definition Background Information This business aims at motivating people to improve the quality of the lives by enhancing their health and wellbeing to ensure that they live their lives to their fullest potential. To this end, the proposed business is conceived as an educational channel employing social media and mobile technologies, which focuses on furnishing information and sharing knowledge of nutritional value to the targeted customers while correcting the misconceptions projected by other popular media such as television and billboards (Hindin, Contento and Gussow 2004). In addition, the business aims at providing valuable advice regarding the healthiest products and services in the market that are related to public health and health wellbeing. The business shall leverage on information and communication technologies and particularly social media technologies to target users of mobile devices, particularly those aged between 16 and 35 years old. Benefits and Limitations This business has both financial and non-financial benefits to business owner, the targeted customer, and the society. While the business owner shall derive financial benefits, by targeting the 16-35 year olds, this business has the benefit of influencing the feeding behavior of individuals while they are in their young adulthood, when perspectives about life are being formed and lifelong ambitions are being planned (Tobey and Manore 2014). Such early influences have a higher chance of being sustained in the long term, with high chances of becoming lifelong feeding habits (Mann and Truswell 2012). Increased awareness and subsequent behaviors regarding food, nutrition, and health, would lead to better health outcomes in the society, and in turn, reduce the heavy financial and resource burdens exerted on healthcare services (Weenen et al., 2013). However, deeply ingrained cultures and perceptions may hinder the adoption of healthy feeding and nutrition habits, assimilation of new evidences and may inhibit sharing of information and expression of concerns, and thus may induce resistance towards the utilization of the business portal, constricting the performance of the business (Fabry et al. 2006). Option identification and selection The proposed business employs internet technologies to provide the proposed solution. The education portal shall be hosted on social media platforms such as YouTube, Instagram, Twitter and Facebook in addition to the official website. These social media applications employ Web 2.0 technologies, which are online technologies to enhance collaboration and interactivity. These technologies shall be employed to enable customization of information to the user and interactivity between the experts and the users as well as within the user community that shall emanate from regular usage of the portal (Fernandez-Luque et al. 2013, Hanberger, Ludvigsson and Nordfeldt 2013, Tobey and Manore 2014). At the onset, two posts, in form of video content or expert advice, shall be posted weekly on the portal to not only educate and raise the awareness of users but also to initiate conversation among the portal users as well. In addition, the portal shall have a provision of reviewing health services and products. Further, the portal shall provide a platform for advertising on health foods and products, nutritious diets, and retail outlets such as restaurant and cafes from where such products are available. Outline plan The project will be rolled out in phases with phase 1 focusing on the procurement of the laptop and the professional camera, phase two focusing on the development of the portal (website development and setting up social media accounts), phase 3 dealing with development of content and engaging with food and nutritional experts and phase four being when the portal will go live. Table 4 summarizes the rollout plan of the project. Table 4. Rollout plan Phase Activity Duration Phase 1 Procurement of equipment 1 week Phase 2 Development of portal and signing up to social media platforms 2 weeks Phase 3 Content development 2 weeks Phase 4 Testing and going live 1 week Market assessment Nutritional information is plentiful and easily accessible courtesy of advancements in information and communication technologies, particularly the internet and mobile technologies. Indeed, many people are resorting to the internet among other media for retrieval of information that could guide the food and nutritional choices they make, considering the market is proliferated with wide diversity of processed food choices (Nehi and Simsek 2012). However, misinformation regarding nutritional and dietary issues, is rampant, and worst still, many consumers may be digesting this information without any sort of verification (Myers and Pope 2010). While, use of experts to confirm any issue or doubt regarding foods, diet and nutrition is recommended, many people hardly seek expert opinion, leaving then to the wiles of the food marketers, whose primary objective is to maximize sales and profits as well. This situation is fertile to the development of an information portal that would not only address informational concerns regarding foods, diets, and nutrition, but would also help promote good dietary and nutritional practices that would yield better health and wellness. In the addition, the business has strengths and opportunities that outweigh the weaknesses and threats it faces. The ensuing PESTLE and SWOT analyses provide insights into the environment and market in which this business proposed to operate, and the capabilities possessed therein, which are also summarized in appendices 2 and 3 respectively. PESTLE Analysis Political Food and politics are intertwined intimately because the political environment often influences the food and nutrition industry. Food politics is a term that has been employed to underscore how deeply food issues influence the politics of the day, considering the huge magnitude of revenue that the industry remits to the governments and the huge implication to healthcare that nutritional issues proffer (Nestle 2013). The political stance in some of the food and nutritional related issues is confusing and often ambiguous (Brownell and Horgen 2004). For instance, Nestle (2013) observes that while governments may declare that people should have access to healthy foods and correct information, they allow marketers of processed food products to target vulnerable members of the society such as children, minority groups and residents of developing countries in their aggressive campaigns, often leading to heightened consumption of foods that develop adverse health effects over time. Economic The ability to procure foods and access food and nutrition related information is dependent on the economic status of the individuals involved. For individuals with limited resources, a meal of any kind would be of foremost priority regardless of the health implications of the food. However, for those with sufficient disposable income, options regarding foods and ability to seek expert opinion are heightened. Unfortunately, the attractiveness of some of the marketing campaigns makes many individuals ignore expert opinion regarding the health-related issues associated with the food choices they make. Sociological Dietary and nutritional cultures are deeply engrained in communities and societies although the proliferation of the fast food culture is quickly decimating traditional food cultures (Ngo et al. 2011). In addition, food fads are increasingly influencing healthy feeding habits by quick fix measures for accelerating weight loss, a common misinformation perpetuated by doubtful nutrition experts (Sharma et al. 2013). Technological Technological advancements have permeated the food and nutritional industry, starting from the manufacturing processes, to marketing approaches and retailing avenues. Indeed, proliferation of information and communication technologies is enabling food marketers to reach customers located near and far, enabling retailers to sell their ware online, and availing information regarding food and nutrition on internet enabled mobile devises thus increasing its accessibility (Tobey and Manore 2014). Legal Many countries have legal frameworks regulating the food industry, particularly the marketing of food products and the labeling of food products (Brownelland Koplan 2011). For instance, in the United States, the Food and Drug Administration is charged with the mandate to regulate the food industry particularly on issues related to products and marketing practices that have an influence on the health of the society. However, Bellows and Moore observe that enforcement of these regulations is often weak and regularly flouted by the manufacturers and marketers of food products. Environmental The food and nutrition industry has environmental implications, which emanate particularly from the food processing and packaging practices. Excessive utilization of plastic bags and containers for food packaging has rendered havoc to the environment considering such packaging are not biodegradable (Maloni and Brown 2006). SWOT Analysis The proposed business has strengths, which include the high professional qualifications of the business owner, thus negating the need for external capacity during setup, and the proliferation of information and communication technologies in the targeted market. In addition, the business exhibits growth opportunities through the hosting of awareness events to expand the reach of business, possible collaboration with professionals to enhance the quality of information and services provided by the portal and the possibility of opening a nutritional centre. However, the weaknesses of the business include the inexperience of the business owner and the lack of brand reputation for the proposed business, while the business faces imminent threats from competitors such as nutritionist and dieticians who provide information and services similar to those provided by the proposed portal. Risk assessment The risks that the business is exposed to include changing political and legal environments, which might change the current regulatory environment. These include changes in food labeling such as the one in the offing in the United States, changes in the country’s laws regarding advertisement and marketing practices, which might make some of the information and content posted by the business owner irrelevant. However, the market has plentiful opportunities for enhancement of awareness regarding food and nutrition issues despite the abundance and availability of such information though advanced information and communication technologies, and the risks associated by a volatile operating environment. Indeed, there is a shortage of a one-stop-shop from which all information regarding foods and nutrition can be accessed and through which people can interact with experts remotely, as all these aspects are highly fragmented. Project Approach The business owner shall implement the project almost entirely because of the ability to create relevant content, as they are qualified with a degree in nutrition and pursing an advance degree in the same area. However, the development of the applications for the mobile and personal computer platforms will be outsourced. The applications will be availed though Google Play and App Store for both Android and iOS mobile gadgets. Project organisation Project Governance While the business is a sole proprietorship, making the owner double up as the project manager, other experts shall be engaged to form the project team. A web portal expert and a social media expert shall be incorporated into the project team in which the business owner shall serve as the food and nutrition expert as well. Progress Reporting The business owner shall maintain regular records of the business activities and review these records in a daily and weekly interval. This close supervision is crucial at the initial stages of the business because they not only help indicate the performance and trends of the business but also provide valuable insights through web analytics that would help the business understand and meet the needs of users better. References Brownell, K.D. and Horgen, K.B. (2004) Food fight: The inside story of the food industry, America's obesity crisis, and what we can do about it. Chicago, IL: Contemporary books. Brownell, K.D. and Koplan, J.P. (2011) ‘Front-of-package nutrition labeling—an abuse of trust by the food industry?’. New England Journal of Medicine 364(25), 2373-2375. Fabry, B., Ernst, H., Langholz, J. and Köster, M. (2006) ‘Patent portfolio analysis as a useful tool for identifying R&D and business opportunities—an empirical application in the nutrition and health industry’. World Patent Information 28(3), 215-225. Fernandez-Luque, L., Karlsen, R., Krogstad, T., Burkow, T.M. and Vognild, L.K. (2010) ‘Personalized health applications in the Web 2.0: the emergence of a new approach’. In Engineering in Medicine and Biology Society (EMBC), 2010 Annual International Conference of the IEEE (pp. 1053-1056). IEEE. Hanberger, L., Ludvigsson, J. and Nordfeldt, S. (2013) ‘Use of a web 2.0 portal to improve education and communication in young patients with families: randomized controlled trial’. Journal of medical Internet research 15(8), e175. Hindin, T.J., Contento, I.R. and Gussow, J.D. (2004) ‘A media literacy nutrition education curriculum for head start parents about the effects of television advertising on their children’s food requests’. Journal of the American Dietetic Association 104(2),192-198. Maloni, M.J. and Brown, M.E. (2006) ‘Corporate social responsibility in the supply chain: an application in the food industry’. Journal of business ethics 68(1), 35-52. Mann, J. and Truswell, S. (2012) Essentials of human nutrition. Oxford University Press. Myers, L.A. and Pope, J.F. (2010) ‘Nutrition, Food, and Wellness: Rationale and Resources for Implementation in Family and Consumer Sciences Teacher Preparation Programs’. National Standards for Teachers of Family and Consumer Sciences: Research, 141. Nehir El, S. and Simsek, S. (2012) ‘Food technological applications for optimal nutrition: an overview of opportunities for the food industry’. Comprehensive Reviews in Food Science and Food Safety 11(1), 2-12. Nestle, M. (2013) Food politics: How the food industry influences nutrition and health (Vol. 3). University of California Press. Ngo, D.H., Wijesekara, I., Vo, T.S., Van Ta, Q. and Kim, S.K. 2011) ‘Marine food-derived functional ingredients as potential antioxidants in the food industry: an overview’. Food Research International 44(2), 523-529. Sharma, S., Dortch, K.S., Byrd-Williams, C., Truxillio, J.B., Rahman, G.A., Bonsu, P. and Hoelscher, D. (2013) ‘Nutrition-related knowledge, attitudes, and dietary behaviors among head start teachers in Texas: a cross-sectional study’. Journal of the Academy of Nutrition and Dietetics 113(4), 558-562. Tobey, L.N. and Manore, M.M. (2014) ‘Social media and nutrition education: the food hero experience’. Journal of nutrition education and behavior 46(2), 128-133. Weenen, T.C., Pronker, E.S., Commandeur, H.R. and Claassen, E. (2013) ‘Patenting in the European medical nutrition industry: Trends, opportunities and strategies’. PharmaNutrition 1(1), 13-21. Appendices Appendix 1: Projected cash flow statement for the first 6 months of operations Item Amount (£) Startup capital 890 Revenues 5,130 Net cash 4,240 Appendix 2: PESTLE analysis Factors Explanations Political The political stance in some of the food and nutritional related issues is confusing and often ambiguous Governments allow marketers of processed food products to target vulnerable members of the society in their aggressive campaigns Economic Low economic endowment forces people to consume unhealthy foods Social Fast food culture is quickly decimating traditional food cultures Food fads are increasingly influencing healthy feeding habits Technological Technology is increasingly being employed along the entire value chain of foods, from marketing to retailing Legal Enforcement of regulations and laws related to the food industry is often weak and are regularly flouted by the manufacturers and marketers of food products Environmental Excessive utilization of plastic bags and containers for food packaging is polluting and ruining the environment Appendix 3: SWOT analysis Beneficial Detrimental Internal factors Strengths Business owner is highly skills and can run the business himself Targeted population is most active in the society Wide proliferation of social media technologies Weaknesses Inexperienced business owner Lack of brand reputation External factors Opportunities Collaboration with dieticians, nutritionists and medical professionals Hosting events to raise health, nutritional and dietary awareness Opening a nutritional centre Threats Many competitors consisting of dieticians, nutritionists and educators Read More