The Brave Thinkers, New Zealand 2019 Business Week

[TOP 3 Teams]

Executive Summary --------------------------------------------------------------------------------------------------------

Our Mission

Avo.Co offers a bag that delivers a good bag with recipes on it, providing the consumer with a cheap,easy,convenient and healthy way to eat a meal. Our team will ensure that these meals are to the highest standards

The Company and Management

Avo is located in Palmerston North. The company is owned by our whole team with all of us being equal partners

The management of Avo consists of the CEO Kavish Desai

Communications manager - Dominic Edmond Finance Manager - Ploy Techa-Intrawong Strategic manager - Kavish Desai Marketing Manager - Destiny Nicholas

Production manager - Aaliyah Miller

Our Services

Our clients are all Kiwis’ across New Zealand however our main target are

• Low socioeconomic people

• Large Families

• Students

• As well as anyone who

- Low on cash

- Low on time

- Low on confidence to cook

The Market

Across the New Zealand grocery market has seen an extreme amount of potential with each consumer going to buy meals at a cost of $30 each day . Our market research has shown that consumers are definitely willing to eat healthy if it is available at a lower price point and is convenient and easy

Our Competitive Advantages

Our main competitor is Nadia Lim however we do this better because we have larger serving sizes and offer more variety

Financial Projections

Based on the size of our market and our defined market area as well as our first year trial. We operate in a social enterprise fashion so we’re a non for profit.We will get approximately $50,000 from farmers looking at spending money in advertising their brand on our bag. We expect the government funding to grow. We project a growth rate of 20% growth per year for the first three years.

For the first year no one will take a salary, once more financing is secured we will pay each partner a salary of $20,000 per year. To begin with, CEO Kavish Desai will be scheduling appointments and coordinating services, but we plan to hire a full-time receptionist once we have grown after a few years

Already we have well established connections with various people in different industries and plan to slowly build our client base through word of mouth, our website, social media

The tasty,healthy,convenient and cheap meals we provide will definitely captivate our New Zealand consumers

Start-up Financing Requirements

We are seeking a $150,000 line of credit to finance our first-year growth.

This concludes the executive summary based on Avo.co.

Business Plan -------------------------------------------------------------------------------------------------------------------

Problem

• Avocados cost too much

• Access to affordable nutritious kai

• Lack of education & skills around cooking

• Obesity rates in NZ

1 out of 3 adults are obese in New Zealand.

1 out of 8 children are obese and lower social economic area and 2.1 times more likely to be obese than people in more fortunate area.

Passion

We want every New Zealander to have access to nutritious food and the confidence to make it into something special. We all have a large passion in this problem because we want people to be living a healthy lifestyle, we want all people to have access to healthy food regardless of their income and we pride ourselves in ensuring that we put effort into developing a solution that matters because the problem really does matter to us.

Partners role

CEO - Kavish Desai

Communications manager - Dominic Edmond Finance Manager - Ploy Techa-Intrawong Strategic manager - Kavish Desai Marketing Manager - Destiny Nicholas

Production manager - Aaliyah Miller

Business goals

• Increase healthy food consumption across New Zealand since many New Zealanders don’t eat that healthy

• Decrease obesity rates since 1 in 3 New Zealanders are obese

• Increase the availability of fresh NZ produce because consumers don’t always get access to fresh food.

Ideal Customer/Target market

-Low socioeconomic

Many people have a low socioeconomic class causing in them many stages choose between cheap and unhealthy food options

-Families

Many families have trouble making meals for large groups of families so by using our product they can have an easier time making meals for such large groups

-Students

Students just don’t have time to make a meal as they’re constantly studying and a lot of the time survive on takeaway food but with our product students can make a meal very quickly and worry less about what kind of food they’ll make

-We also look in general at people who are

-low on cash because they can use our unique product and get a very low price point for each meal

-Low on time since our product offers you a very convenient and easy way to make a meal time is less and less of an issue

-Low on confidence to cook because a lot of consumers don’t feel confident to cook but with our product they can just make an attempt at making the product with our very simple and easy instructions

The Market

Across the New Zealand grocery market is seen an extreme amount of potential with each consumer going to buy meals at a cost of $30 each day . Our market research has shown that consumers are definitely willing to eat healthy if it is available at a lower price point and is convenient and easy The industry has a gross margin profits of 24.2% so there is a lot of money to be made in the industry and we can make more money by expanding out to the market and increasing cash flow through farmers as well as supermarkets willing to join the Avo.co brand

Point of difference

Healthy food that is affordable due to the seasonality of the recipes provided on the bags.

Simple nutritious meals done well (GOOD PORTION SIZES)

Our company is very environmentally friendly since we make our bags from paper that has already been used therefore we have a very small carbon footprint

Education about leftovers (left overs are inevitable with these portion sizes)

We are affiliated with Just Zilch, a food bank in Palmerston North, any leftovers not to be eaten are encouraged to be sent to Just Zilch which no other company in our industry offers

Working directly with suppliers and supermarkets to improve their value therefore increasing the quality of food New Zealanders eat overall

Competition

Nadia Lim is one of main competitors however we are superior to her product as we have the cheaper price point, we also have larger serving portions this makes us better as opposed to Nadia Lim since consumers will feel like they’re eating a lot more, with our product there is also the added benefit of not being locked into purchasing multiple meals, we feel this offers consumers more of a variety

Packin save ready to go food bags are also key competitors however we offer more nutritious food, far more delicious and enhance what is offered there

2 things none of our competitors have is:We aren’t just providing a product and a service we are also providing education as well, people must go through the supermarket and be aware of what they are buying.Also, the leftovers are used as a good thing and positively help New Zealanders who struggle finding a meal through our connections at Just Zilch where we will give consumers a chance to donate unused food so they can give it out to the people who can’t afford it

Price Range

For 2 people the price point is $15 For 4 people our meals at a price point of $20 and for 6 people there is $25 which means $4.20 a head in comparison to Nailia lim which is $12 a head

We are able to offer a unique price point because of our connections therefore we beat out any other potential competitors

Risk

A risk is supermarket not accepting us which would mean we would actually not be able to create or have a sustainable business model however that risk is minimized to how if foodstuffs were to say no we would just tell them we would go straight to their competitors which would hurt them since our product would get popular foodstuffs would attract backlash so foodstuffs would definitely try to join in.

Another risk is that we don’t get government funding this would be bad for our company since we rely on government funding significantly for our business to stay afloat

SWOT Analysis

Strengths: We have a good team that has a variety of strengths this is useful because it means that for most situations our group is well equipped

Our group also has also a strong adaptability to situations this means we can recognise a situation and find a way to adapt well to the problem

Weaknesses: Weakness is when it comes to making decisions that can affect the company on a large scale.

Team members not putting in their full weight could be bad for the company since we need everyone pulling their weight cause we have no other workers

Opportunities: There are plenty of opportunities to grow and take this outside of just New Zealand as the business model means that we can go to different countries and do the same thing if expansion is needed given we’re only changing the location but most other aspects remain the same. A bonus would be getting more money to fund our solution whether this be through funds, trusts or even one off contributions

Threats: Our threats are a company trying to steal our concept this would mean another company would be taking our market share

The production cost of bags increasing would be a large threat as it would cut into a significant portion of our threats

Production Process

We have found a man from Palmerston North:Leon, Leon will be contracted to use the bags supplied at each supermarket and print out recipes on them, however later when hemp is more readily available we will get Leon to change to Hemp bags as they will be easier for consumers to carry as well as it means consumers can come and replace there bag with a new hemp bag

We will have a small pilot test of 80,000 people in Palmerston North and aim at 500 meals a week after we have proven this business model works we will then order extra bags and send them out to other various locations in New Zealand

We will good recipes in collaboration with the app Tasty that meet high standards of the the problems we’re trying to address since we want each meal cheap, convenient, easy and healthy

Promotional Strategy

One of our Promotional Strategies is the use of social media such as Facebook and Instagram

As well as using Tasty this is done through them promoting us within the app

We will have the NZ government promote our product given that we are making people healthier, lowering the staggeringly high health budget in New zealand of 19 billion dollars , even if this had a 1% of the 1% that would save the government 2 million dollars a year.

We will promote through Just Zilch and they will be telling the people who go there and advertising through their facebook page.

However we will still be using the more conventional ways for advertising such as billboards and posters

A large part of our promotional strategy will be based around word of mouth this is because

People will really enjoy and like our product so much.

Market Research

Our market research shows that most people want to eat healthy if they were given the ability to and most of these reasons are beyond their control such as time,convenience and cost all these are significant valid reasons and at Avo.co we really want to change that for the better and address these key problems

Journey

We started off with the concept of having an app that would teach you about healthy eating however we weren’t really passionate about that and couldn’t find it having a significant effect. We then started looking at the recipes offered in meals at companies like countdown i.e the little paper with recipes at countdown we then started to talk about the idea more and realise we were passionate about New Zealanders having a healthy way of living and wanted to create change and so we continued to develop the product further and have since really enjoyed designing the product and we all have a strong passion for it. We then prepared and worked well as a team although sometimes there were a bit of disagreements every company has its ups and downs but in the long run we’ve worked well as a team and been good at communication and understand everyone's strengths and weaknesses so we’ve been able to adapt accordingly.However we understand in the end we all here just to have fun and solve a problem we’re all passionate about

How we chose our name

We were just having general chats and Alia commented on how avocados were very expensive as she really enjoys eating avocados and avocados being a health option got us thinking of how expensive healthy products are in the first place bounced some ideas off and after one failed product idea we turned the chapter and went to the next but decided to keep the avocado as a symbol for the product. We also felt that Avo.co really tells a message about what our products are about.

Financial Figures

Income vs expenses

• 288,000 sold each year

• $50,000 government funding

• $50,000 farmers advertising

We will get funding in our first year at $50,000 however we can grow this by applying for funding for $1,000,000 out of the 19 billion dollar health budget if needed.

We will get sponsorship from farmers by estimating that they move their marketing spend from paid advertising starting off in the first year at $50,000 with growth to increase to $500,000 per annum) in return they get support by having their brand on the bag or highlighted in store. They also secure your support and direct their spend into backing the “good of the country” non-profit

AVO movement.

Expenses

Each bag will cost 30 cents per unit to make however since we won’t be taking any salaries or hiring any staff that will be our only ongoing costs in the near future however along the road we understand expenses will pop up and we will deal with accordingly

Product: Our product is cheap,easy,convenient help people select affordable food and cook it with confidence with a bag that offers fresh ingredients to allow you to buy the meal you want or need that is very healthy this can be done through a general pop in store and get the ingredients or click and collect where you just go online select everything and it’ll be available in store

Price: We are providing the bags for free to the supermarket since we’re building a relationship with them and using them as a provider therefore there is no actual price for the product

Place: We will be in foodstuff supermarkets across the nation and then after 1 year we will expand out and rely on it being popular so other supermarkets will want to engage in our product

Promotion: Our promotion is used on social media apps like facebook and instagram we also promote through the government and Just Zilch and the tasty app there is also a huge element of word of mouth which is where consumers will be telling others about how wonderful our product is and how much it helps them.