Tyler Petry

09/8/2020

C212

BUSINESS PROPOSAL FOR KING'S AGRICULTURE COMPANY

Contents
A1a. New Products and/or Services.............................................................................................................3
A1a. Methods..............................................................................................................................................3
A1b. Competitive Advantage......................................................................................................................3
A1c. Inherent Risks.....................................................................................................................................3
A2. Customer Relationship Management Software.....................................................................................3
A2a. CRM Information................................................................................................................................3
A3. Distribution Channel.............................................................................................................................3
A3a. Key Considerations.............................................................................................................................3
A3b. Global Supply Chain...........................................................................................................................3
A4. Major Pricing Strategy..........................................................................................................................3
A4a. Costs Associated with Development and Launch................................................................................3
A4b. Consumer Acceptance of Price...........................................................................................................3
A4c. Competitor Prices................................................................................................................................3
A5. Promotional Strategy............................................................................................................................3
A5a. Mass and Social Media Channels........................................................................................................3
A5ai. Justification of Media Channels.........................................................................................................3
A5b. Sales Promotion Activities..................................................................................................................3
B. Sources...................................................................................................................................................3

BUSINESS PROPOSAL FOR KING'S AGRICULTURE COMPANY

A1. New Products and/or Services

After months of market research, the following were picked as a viable new product and service

that the organization can engage in when it comes to global expansion. The first proposed project
is an online course that teaches existing and aspiring farmers on the different farming techniques

that will allow them to grow, maintain, and harvest their crops. This service will be offered to

anyone who can pay, but the focus will be on low-income and small-scale farmers in Arizona.

This service will be provided via the organization's online web page. It will have a comfortable

and high-quality course where the clients log onto the site and pay a one-time membership fee

along with a course fee and receive three different lessons. The lessons will be varied from fruit

farming to commercial farming of cereals such as maize and beans. The three main agricultural

exports from Arizona are coffee, horticulture, and grains. Therefore, the team decided on the

three items because more people can relate to the service, the more they will buy into the site.

Africa is becoming an increasingly technology-driven market. For example, in some countries,

they have a mobile cashless transaction application called M-Pesa that runs on sim card

technology only. This means that payment methods can be easily accessible, and given most

farmers are now moving into the online space to sell their items, access to the website will be a

non-issue. The company headquarters will be in Arizona and have outlets in different states in

the country. In addition to this, the company will also be operating in different parts of the world

as a strategy to venture into global platform.

The second is exploring environmentally conscious meat alternatives that are quickly becoming a

trend amongst millennials and environmentalists. These products, such as the impossible burger

and vegetarian sausages, have been a game-changer to cow and livestock emissions'

environmental issues. There are two options under this proposal. The first is to make an attempt

to make the products ourselves, which requires more workforce and technical knowledge on

making the products, which could be time-consuming but profitable should the company find a

cheaper way to make more quality products. The second option is to buy ready-made products
and ship them to Africa and the middle east, where the market has not been explored yet. There

is enormous demand for the works; however, there is a shortage in supply, which could be a very

profitable venture if done correctly. Market research, especially in the middle east where meat

must be made Halal, will give them a cheaper option and a more environment-conscious one at

that.

A1a. Methods

The market wants and needs are always a question of data and statistics and feasibility that one

can satisfy the needs and wants of the consumers. The first thing required is potential consumer

feedback. This was conducted via online questionnaires where the participants were chosen at

random from the countries of focus. There was a free coupon reward if one completed the

questionnaire and provided their emails for further communication. The questionnaires were set

up on the company's website and advertised on social media, where a more pinpointed search

was redirected at potential consumers, given their online trends. In total, there were 9876

responses from the first questionnaire on the online course. The results were as follows. Out of

all the participants (upon collecting the data), the chart is as shown below. 

Given the opportunity, more than 80% of the participants claimed that they would partake in the

online course at a fair cost. For the meat alternatives, the results were as follows. A group of

8,000 participants filled out the questionnaire, and the results were as seen in the chart.  

These questionnaire reports are a great sign that should the organization decide to enter these two

new markets; they will be profitable and have a willing consumer base. 

The second method the team used to assess the consumers' needs and wants was by interviewing

local consumers of the product and service offered by other organizations to evaluate the

challenges ahead and provide a quality product that did not disappoint the target market
overseas. This was done via the web as well. After identifying areas of improvement required in

the existing products, another questionnaire was sent to the clients who had already filled out the

first to gauge their knowledge of the product and service we would be offering them. The final

method was to analyze the potential competitors in this market space. In the meat alternatives,

the organization will be facing competition from the local livestock owners who will view the

product as a direct challenge to their market base. Holding environmental seminars and

education on the dangers of livestock to the environment events in the countries the product will

launch to inform the livestock owners that the products will not be a replacement. Instead,

another alternative should prove useful and crucial in eliminating any future issues with them.

The online courses already exist; however, the service offered will differ in price and easy

accessibility for the consumers.

A1b. Competitive Advantage

In expanding and getting to be the first in the target markets abroad, the organization stands out

as a trendsetter and an industry leader that garners trust and reliability from consumers. This will

enable the organization to have advantages such as price setting and inherent trust that comes

from purchasing well-known brands compared to newer and less tried options. Having this as a

competitive advantage ensures that even as more people get into space and attempt to fill the

demand for its product and service, a base clientele will have been identified and secured. In

agriculture, people tend to remember the first product they used and liked, and given the quality

control, products will have a reasonably great advantage in the competition.

A1c. Inherent Risks

As with any business venture, there are risks involved in this market. There are two main risks in

launching these products in two different continents and multiple countries. The first is that in

any new market, data gathered cannot be entirely relied on because there was a reward incentive

for filling out the questionnaire; thus, people may fill in anything to claim the gift at the end of

their questionnaire. Given out of the first 9876 people who filled out the first questionnaire, only

8,000 responded to the second one. That is a decline of 1876, which is an 18.99% decline. This

may be worrisome; however, once the products are ready for supply, the marketing team

recommends a test launch first with products given to potential clients in their respective

countries. This will be the soft launch and provide a clearer picture of its ability to sell and get

profits. The second risk is that setting up shop in countries the organization has not yet been to

could prove difficult given different international trade laws and taxation. This can be solved by

partnering with local businesses and assuming a supplier's role where the local companies can

participate as distributors and retailers. This allows the organization to make money without

employing new employees and paying hefty taxes in the ports where the products will dock or

arrive. This is ideal in that as the brand name grows, the products will begin to sell themselves,

and this can only happen if they are coming from trusted local businesses and organizations.

A2. Customer Relationship Management Software

Customer relationship management (CRM) used is the same one as the organization uses locally.

This is a computer-generated system where the organization will track their products' sales and

pinpoint the areas where more focus is required and what the best-doing regions are. This will be

possible thanks to the cloud-based systems that give and collate results in real-time. Having this

sort of ability will be instrumental in the growth of the business. Each product will be scanned

into the organization's database and categorized accordingly. Once this is done, the same will be
done in the countries where the products will be sold, and thus, every sale is logged and the

states and the specific area the sale is made. Once gathered, this information will enable King's

ltd to get a full and clear picture of the market's response to their products. Knowing this, one

can easily decide where to market their products more or reduce marketing to achieve sustainable

profitability.

A2a. CRM Information

As shown in this section, these are the top benefits of using CRM. (Goldberg, 2020).

"It quite as important to make sure that the merchandise is accessible where the buyer is can to

get it. Simply put, the merchandise has to be made available at the proper time and the proper

place. To ensure sure this happens, the manufacturer has got to make strategic decisions for the

methodical circulation of its products" (Erminôte, 2020). This brings us to distribution channels.

A3. Distribution Channel

The marketing team suggested the indirect distribution channel model. The company will

purchase the products from the manufacturer, ship to a wholesaler in the countries the products

will be selling, and retailers. Finally, the product arrives at the consumer who purchases it. This

model ensures that the consumer will be getting their products from trusted sources and that

quality control is optimal. When shipping to different countries where one does not have contacts

or have an already set-up business, it can be challenging to get people to trust one's products. In

contrast, if you enter a partnership with local wholesalers and retailers, one is more likely to trust

the products because of their familiarity with the businesses and their brand name.

A3a. Key Considerations

The primary mainstays of SCM for the most part have been production, transportation,

stockpiling and request arranging and the executives. In any case, worldwide gracefully chain the

board includes a lot more factors, including society, language and cash contrasts, also

international danger and network protection.

A3b. Global Supply Chain

The service being offered is online; hence the users must come to the site to access the courses

they desire. This does not need a distribution chain; however, the supply chain will affect the

meat alternatives. Because these are perishable goods with a longer shelf life than beef, chicken,

or any other livestock, it is paramount that quality prevails over quantity. Overstocking will lead

to a loss of products, and that cannot be allowed to happen. Instead of sending as much stock as

possible, the organization should send frequent smaller shipments to maintain the products'

quality. This is a direct influence of the global supply chain. 

A4. Major Pricing Strategy

The recommended pricing strategy is penetration pricing, where the organization will be able to

set low and affordable prices to get more customers. "A penetration strategy is the price war; this

strategy goes for the deepest price cuts, driving at every moment to have your price be the lowest

on the market. Penetration strategies only work in one of the four lifecycle periods: growth"

(Meissner, 2010). This strategy is best because, as a new venture, the business will get a feel of

what the market truly feels about their products without the burden of high prices.

A4a. Costs Associated with Development and Launch

Many costs will go into developing the product and service into a product that will be launched

successfully. The first will be paying coders to add the online courses to the business website and

making it accessible to everyone who will need it in the service launches. Researchers and

biologists will also be required on the payroll to curate and create the classes factual and truth-

based. Videographers will need to take recordings of the tutors who will be giving the lessons,

and both will also be an additional cost. Seeing as the website has big enough servers to

accommodate the projected number of participants, this will not be a cost to the organization yet;

however, as more people join in, then additional server space will be required to be purchased in

the future.

A4b. Consumer Acceptance of Price

Meat alternatives will require more costs than online courses. This is because the following

expenses will appear;

1. 1. Paying manufacturers for the products.

2. 2.Transport from the manufacturer to King's refrigerated warehouse for stocktaking and

inspection.

3. 3.Security for the items from the manufacturer to the port.

4. 4.Transport to the port where they will be loaded onto the ship.

5. 5.Container space fee for the products.

6. 6.Port and duty fees.

7. 7.Clearance fee in the ports where the goods will be going to.

8. 8.Insurance for the goods in case of loss of products or unforeseen circumstances.

9. 9.Transport to wholesalers (depending on the agreement with them).

10. 10. Employee raises depending on who is promoted to manage the new project.
A4c. Competitor Prices

As stated above, there are many cost implications when taking on such a business venture, and

when it comes to pricing, one must price their products at a rate where the consumer is satisfied,

and the effects still make profits. Consumers are expected to accept the pricing because of the

questionnaires that they had filled out earlier and agreed to the prices suggested beforehand. A

kilogram of beef in Arizona is roughly five dollars. The organization aims to make meat

alternatives under three dollars per kilo, which is manageable due to mass production and

cheaper ingredients. In underpricing the organization's main competitors and having useful

quality items, this will enable the products to lead in the competition. 

A5. Promotional Strategy

The primary promotional strategy will be social media and television ads bought at prime times

when most people are tuned in. As some countries in South America and Africa begins to catch

up to the rest of the world in technological advances and the dawn of social media, this is the

best strategy. "Technology now has arrived in isolated regions of Africa primarily in the form of

relatively inexpensive cell phones." (Draper, 2017). He further states that "Their (digital

entrepreneurs) emergence coincides with the ubiquity of mobile phones throughout the continent,

as well as the arrival of high-speed Internet—which, as recently as a decade ago, was rare in

most of Africa." This shows that as the world settles down and perfects technology, Africa is

learning from their previous mistakes and capitalizing on it, thus growing exponentially faster. 

A5a. Mass and Social Media Channels

The first social media channel recommended is Facebook, which has millions of active users in

Arizona, thus reaching a multitude of people hence getting mass promotion for the products and
service at a relatively cheaper cost compared to digital media. The second will be Instagram,

where younger users and the target market for the meat alternatives will have access to their local

retailers and get deliveries of the products or know the locations that have the businesses'

products in stock. By paying influencers on both social media platforms, the organization will

get voices and opinions trusted by the consumers to market the products at lower prices

compared to print media.

A5ai. Justification of Media Channels

Television adverts will be tailored to appeal to the older generation that relies on television for

entertainment and news. This will enable the online courses to get better attention, and having a

simple layout on the website will be vital to keeping consumers of the service loyal and

captivated. In as much as a large part of the world believes in the end times for print media, "The

print media in developing countries, unlike in Europe and North America, is expanding and

showing healthy profits" (African Business Magazine, 2011). This means that the organization

can capitalize on this and buy out adverts in newspapers and magazines, which will reach many

people. The marketing team advises these because, based on research done by (Statcounter

GlobalStats, 2020) 

As shown in the table and chart below:

Date Facebook YouTube Pinterest Twitter Instagram Tumblr LinkedIn Reddit

2019-08 69.61 15.36 8.42 5.19 1.11 0.11 0.06 0.0

2019-09 69.84 16.96 7.3 4.37 1.23 0.08 0.09 0.0

2019-10 67.24 15.49 7.07 6.22 3.68 0.08 0.08 0.0

 2019-11 63.52 16.23 8.29 6.63 5.02 0.09 0.09 0.0

2019-12 54.77 22.78 9.39 7.47 5.27 0.09 0.07 0.0

2020-01 58.91 16.93 9.55 8.14 6.18 0.09 0.08 0.0

2020-02 66.89 12.1 8.14 6.56 6.05 0.08 0.06 0.0

2020-03 73.2 11.12 5.35 5.61 4.55 0.06 0.05 0.0

2020-04 61.28 17.63 6.11 10.12 4.63 0.08 0.05 0.0

2020-05 63.12 24.02 7.7 3.95 0.86 0.12 0.08 0

2020-06 66.71 18.16 8.27 5.66 0.75 0.17 0.11 0.1

2020-07 74.67 12.5 7.45 4.3 0.7 0.11 0.1 0.1

2020-08 83.38 7.94 4.82 3 0.58 0.07 0.07 0.0

A5b. Sales Promotion Activities

The leading sales and promotion activities will include promotional pricing and incentives for

intermediaries. "Sales promotion is the process of convincing a potential customer to buy the

product. Sales promotion is designed to be used as a short-term tactic to boost sales" (Schildge,

2019). In using the aforementioned promotional strategies, the organization will be appealing to

the consumers and the middlemen. By setting prices low and affordable, the organization will

pull in a variety of consumers. The customers will range from students who live on a tight budget

to environmentally conscious people who will have access to an alternative protein that tastes

like their preferred meats and saves the planet. With the online market for the courses, the prices

will be low. One time that enables the consumers to revisit classes as often as they may please

and be a lifetime membership will gain the organization's loyalty. By providing incentives such

as trips abroad to the best distributors, wholesalers and intermediaries will be motivated to get
the product out as fast as possible and reorder more, which benefits both them and the

organization. The more they sell, the more the organization makes. This business plan has

covered the proposed products and services, customer relationship management, cost

implication, target markets, pricing, and promotion. In the above method, one will see that the

effects brought forward can and should bring in more profits and expansion. 
B. Sources

African Business Magazine. (2011, October 17th). Digital Threat To Africa's Print

Media? Retrieved from africanbusinessmagazine.com:

https://africanbusinessmagazine.com/uncategorised/digital-threat-to-africas-print-media/

Draper, R. (2017, December). How Africa's Tech Generation Is Changing the Continent.

Retrieved from nationalgeographic.com:

https://www.nationalgeographic.com/magazine/2017/12/africa-technology-revolution/

Erminôte, H. D. (2020, March 1st). Marketing Guide —Channels of Distribution. Retrieved from

medium.com: https://medium.com/@daric_erminote/marketing-guide-channels-of-distribution-

10-e793476d78a2

Goldberg, A. (2020, September 8th). What Are Examples Of CRM? Different Tool Types You

Should Know About. Retrieved September 8th, 2020, from financesonline.com:

https://financesonline.com/what-are-examples-of-crm-different-tool-types-you-should-know-

about/

Meissner, J. (2010, March 2nd). Meissner Research Group — Operations Strategy and Pricing

Management Blog. Retrieved from meiss.com: http://www.meiss.com/blog/tag/penetration-

pricing-strategy/

Schildge, G. (2019, January 28th). Sales Promotion Strategy: How to Develop a Plan That

Works. Retrieved from matrixmarketinggroup.com: https://matrixmarketinggroup.com/sales-

promotion-strategy/

Statcounter GlobalStats. (2020, August 31st). Social Media Stats, Africa. Retrieved September

8th, 2020, from gs.statscounter.com: https://gs.statcounter.com/social-media-stats/all/africa