Foodie Tale Inc., with its headquarters in Munich Germany, is a mobile application that helps you find restaurants, culinary events and other foodie gatherings. It’s a unique guide based on recommendations from prominent chefs and sommeliers. These recommendations range from restaurants promoting various cuisines to bars and cafes to local farmers markets. Foodie Tale Inc. facilitates options of improving dining out and nightlife experiences of the users. In addition, it will drive sales for the vendors.
Foodie Tale Inc. is qualified to succeed due to the following:
Foodie Tale Inc. seeks a total funding of .
25 million to launch its business. The capital will be used for further app development, marketing collateral, website development and working capital.
Foodie Tale Inc. will offer a wide variety of recommendations from the food industry’s most skilled and popular chefs, sommeliers, writers, restaurateurs, bartenders and food critics. These recommendation include restaurants offering various cuisines, bars, grocery stores, farmer’s markets, meat and seafood shops, delis, bakeries, cafes and recipes.
According to statista.com, mobile apps are projected to generate 188.9 billion US dollars in revenues via app stores and in-app advertising in 2020.
In 2018, roughly 57 million members of the German population owned a smartphone. This number is the current available market, but the target audience is the young, working-class individuals between ages 18 and 50 who would not mind paying an amount to have a different and enriching experience while dining out or just having a relaxing at a bar or cafe.
The next step is the business model and in order to actuate this business plan, I will be adopting a business model based on Osterwalder’s Business Model Canvas that is best described through nine basic building blocks that show the logic of how a company intends to make money.
Foodie Tale Inc. primarily aims to target smartphone savvy people in two primary age groups: 18-30 and 31-50. Consumers in this age group are the most technologically savvy, have the highest smartphone penetration rate and have the greatest comfort purchasing online.
According to research conducted by statista.com, the revenue generated from mobile apps in Germany in 2013 amounted to roughly 547 million euros. Consumers aged 30 to 49 are estimated to represent 45% of the market. It is a growing segment where more lifestyle, tools and productivity apps are being developed to cater to this market, as it typically has significantly higher income than consumers age 18 to 29.
According to Osterwalder (2011), a company’s value proposition is what distinguishes it from its competitors.
The Foodie Tale Inc. app can be downloaded onto any smartphone via the App Store, Microsoft store or the Google Play Store for free. Those who wish to could also access the app on their laptops/computers through the link www.foodietaleinc.com. The app/website are secure platforms where user information is securely stored and is not available to any third party apps except for permissions granted through the app stores. The app/website has a user-friendly interface, which makes is easy to use by any individual.
This is the most crucial points while starting a business as I need to be aware about the way I can financially create and launch my app. The following are the ways in which I plan to acquire capital for the app:
Key resources can be physical, financial, intellectual, or human.
Physical – These resources include an office space for app developers, the IT, HR, marketing, designers and customer service teams. It would also include laptops, computers, app developments softwares, infrastructure and logistic costs.
Intellectual resources would include the customer databases, proprietary knowledge, copyright of the app and website, content shared on the app or website by the users. Human resources will include skilled mobile app developers, and the IT, HR, marketing, designers and customer service teams. It would also include the vendors and partners who contribute to the development of the app.
Financial resources include angel investors, government subsidies for start-ups, bank loans and business grants.
For the app to run smoothly and be able to provide the promised events and activities, the following are the list of crucial partners who will help contribute to the success of the app:
Fixed-costs would include salaries of the employees, rent of the office space, cost for upgrading the latest softwares.
Variable costs would include paying celebrity chefs or up-scale restaurants a price to host or conduct exclusive events for the users.
There is potential for economies of scope if there is an increase in the number of users who would subscribe for the Foodie Tale Inc. Privilege benefits.
Foodie Tale Inc. has a few competitors due to their current brand and resources:
Foodie Tale Inc. enjoys a few advantages over its competitors that include:
The Marketing Plan describes Foodie Tale Inc’s planned promotions and pricing strategies.
Foodie Tale Inc. will focus on the company’s unique value proposition aimed at the following:
Foodie Tale Inc. will employ the following promotions strategy to reach the target market of foodies:
Public Relations: The marketing team will contact food magazines, food sections of newspapers, and television stations and send them a press release describing the opening and unique value proposition of Foodie Tale Inc.
Develop the website to direct as much traffic from search engines. The website designer must use knowledge of search engine optimization to orient the website’s content towards this end and begin a program of link exchange to move up the search engine rankings (particularly Google). Ongoing search engine optimization of this type will be executed by an experienced SEO firm contracted on a monthly basis.
Foodie Tale Inc. will publish a monthly email newsletter to its customers shedding details about the latest trends in food and offer other articles and columns of interest to them. Email addresses will be gathered from users who opt-in when using the website or app and the email newsletters will support the brand of the site as an expert in food-related recommendations. In addition, emails presenting exciting new offers or products may be sent as often as once a week to customers who have opted-in to keep them informed of the latest information.
Foodie Tale Inc. will advertise in food magazines and the food sections in newspapers to create awareness.
The pricing will be appropriate for the marketplace in tandem with other mobile applications with similar offerings.
Foodie Tale Inc.’s revenues be generated through the sale of business listing fees and in-app advertisements.
The major costs for the company will be cost of goods sold such as internet connection fees and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds – Foodie Tale Inc. requires a total funding of $1.25 million to launch its business. The capital will be used for app development, marketing collateral, website development and working capital.
In the first year, the company witnesses a considerable loss; however, the second year seems to be mangeable despite going into losses. As a new business, the company seems to adapt quickly as the loss incurred in the second year is considerably lower. Foodie Tale Inc. gets a taste of profit from the third year onwards and according to the predictions the growth is gradual and achievable.
Customers will not want to join the app or pay for the additional subscription.
Solution: In such a situation a collateral amount from funding or the investments will be kept aside in order to pay-off existing expenses. However, if this continues for a prolonged period then the app will have to be discontinued.
In case of malware dysfunction or viruses that seem too difficult to resolve may lead to the app becoming dysfunctional including a breach in customer confidentiality resulting in exposure of the user database.
Solution: To have an highly-skilled and experienced experts in app development and technology to ensure any such issue can be handled without loss of data.
Partnering with upscale restaurants or chefs could be viewed as a threat.
Solution: Ensuring that the restaurants or chefs including local vendors receive exposure and further clients after joining the app.
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