Company Description

I have created a business plan for the establishment of a new organic snack company called

Nutricrisp in the United Arab Emirates. The company will produce and distribute snacks with

a focus on the customers' health and helping them lose weight. There will be an online store

as well as different physical stores for attracting people towards healthy and tasty snack

products. It has been discovered that the primary target market of this new

business includes families, businessmen, and students, which will enable the company to

make significant profits.

In order to launch this business, the company will set up its own production facility and

register it as a private limited company under UAE legislation. On the other hand, the goal of

a new company is to dominate the market by providing products and services that meet the

highest standards for health, safety, quality, and services.

In addition to launching its own website, the business will open retail outlets across the UAE.

The business will provide ready-to-eat foods with health considerations, protein bars, and

organic chips under various platforms. On the other hand, the company plans to offer a

variety of items, including organic snacks that can help customers maintain their health and

lose weight. These nutrient-rich and healthful organic snack foods will include organic

flaxseeds and organic cereal cakes & protein bars.

In order to entice clients to buy products through the company's website as well as other

physical outlets, Nutricrisp will also provide free home delivery services and discount offers.

The primary drivers behind this service are to satisfy customers and boost website traffic in

order to seize growth prospects in the UAE food and snack market.

To supply our goods to various businesses, we will have a supplier license, and we also abide

by the UAE government's standards for food security and safety. The government enacted
this rule to ensure that the food being sold is of high quality and suitable for human

consumption. Additionally, this rule is designed to prevent food organizations from

disseminating inaccurate or fraudulent descriptions of the offered food goods. The majority

of people today are health conscious and choose better options when snacking, and Nutricrisp

is keeping up with these new trends in the market.

Market and industry analysis are also carried out to evaluate the viability of new ventures. As

a result, it can be concluded that the new venture is viable in the UAE due to the country's

robust economic and social environment, which will assist Nutricrisp's ability to run its

business and generate profits.

PESTEL analysis

Political:

 Food costs in the UAE are rising and will continue to rise as the Value-Added Tax

(VAT), which is 5% for all food products, came into effect in 2018. the political

climate of

 The UAE encourages new ventures in the region by offering a welcoming investment

climate, which promotes the opening of Nutricrisp. The UAE government helps new

businesses get off the ground by offering market-based tax reductions.

 Over the past few years, the food processing sector in the UAE has experienced

significant growth, and this trend is anticipated to continue as foreign investment and

government initiatives to boost domestic food production and self-sufficiency have

caused production facilities to emerge and diversify.

Economic:
 The opening of Nutricrisp is supported by the UAE economy. UAE has started

economic reforms to open up trade in the area. It has high GDP and per capita

income, which expands the commercial opportunities. Additionally, the UAE has a

low inflation rate of 1.1%. The UAE food and beverage sector has increased 22%

over the last five years.

 The UAE scored 70.4 points, which is above the global average of 50 points, for the

Food & Beverage sector according to BMI. The economy was able to cope with the

impact of VAT on the food industry due to the high purchasing power of F&B.

 The high level of wealth and hectic lifestyle of the UAE population generates a new

business opportunity for the launching of healthy food and snack items, which

facilitates a solid investment opportunity for Nutricrisp. Additionally, the opening of

the firm is supported by the high per capita income of the UAE population, which is

41800.00 USD.

 Due to the increase in tourists and population, food consumption in the UAE is rising.

In the GCC, food consumption is projected to increase to 60.7 million metric tonnes

(MT) in 2023 at a compound annual growth rate of 3.3 percent. The pandemic fuelled

an increase in home delivery as well as healthy eating, and the food industry was no

exception. Covid-19 was a catalyst for blooming trends throughout industries. By

2025, the GCC's total food demand is projected to expand moderately at 2.3 percent,

reaching 52.4 million metric tonnes. More than $20 billion was invested in funds for

innovative proteins and dairy substitutes in 2020.

Social:

 The standard of living for residents of the UAE is rising steadily, and eating habits are

changing as well. Food goods with quality and flavor are in high demand, which

presents Nutricrisp with new business opportunities in the UAE.

  People in the UAE are starting to check the nutrition labels on food goods before

purchasing them as they have grown more health conscious. UAE consumers prefer to

purchase goods that offer more health advantages. Nutricrisp offers a variety of

healthy products to conform to the current healthy eating lifestyle trend.

 Growing awareness among younger generations of the value of healthy eating and the

potential drawbacks of failing to do so. There is a developing attitude and philosophy

regarding fitness and good living, particularly in the UAE. Because of the diverse

expat population, the shifting weather patterns, the hectic pace of modern life, and the

growing desire to be healthier and feel better overall.

 In the UAE, obesity affects the majority of the population. Individuals in the UAE

have hectic job schedules, which is the main cause of the issue. They lack the time to

work out. Individuals prefer to consume junk food, which is bad for their health,

because of their hectic job schedules.

 In the UAE, which ranks fifth in the world for obesity index, the F&B sector has long

come under investigation. UAE is striving to encourage a healthier way of life, better

eating practices, and increase public awareness of the significance of physical fitness.

 Consumers in UAE are growing more interested in the popularity of healthy food and

snack options brought on by globalization and the pandemic.

Technological:

 Industry-wide technological advancements have an impact on industrial activity.

Nutricrisp can reduce production costs while increasing operational efficiency by

utilizing technological advancements. Through an efficient pricing strategy in the

market, this can help the company be more profitable.

  People after the COVID-19 pandemic prefer to order food and snacks from online and

our company provides online store which will help the consumers who prefer this

mode of purchasing as it is more convenient for them.

 As opposed to websites, UAE consumers prefer to order food using mobile apps.

Online purchases of food and beverages total AED 161 per person. Another intriguing

finding is that brand switching among residents of emirates and non-emirates has not

been affected by changes in food prices. The food delivery business has seen some

significant change as a result of the 2020 pandemic. Restaurant to consumer delivery

climbed by 11% to reach 22%, while aggregator to customer delivery increased by a

staggering 13% to reach 39%.

Environmental:

 Due to increased market demand, snack and health-focused goods have more potential

in the UAE. It is due to the hectic lifestyles of UAE residents and the rise in the

market's number of customers who are health conscious.

 Businesses using cutting-edge delivery solutions are ready to succeed given the

scorching weather and clogged traffic conditions in areas like Dubai.

 Rise in diabetes is observed. Despite awareness campaigns, 1,000 people pass away

annually. Diabetes is completely avoidable, although over 35% of cases in the UAE

go untreated, increasing medical expenses and risks. Healthy eating prevents

overeating, which lowers demand and lessens its negative effects on the environment.

 UAE promoted the "FOOD FOR LIFE" campaign, which will include a number of

initiatives aimed at promoting healthy eating habits and sustainable food systems in

order to improve public health, safeguard the environment, and boost the country's

economy.
Legal:

 Two important aspects that fall under the legal criteria for product safety are food

quality and sanitary standards.

 As per Ministerial Decree No. 239 of 2018 on National Food Accreditation and

Registration System, all food, whether imported, locally produced, or modified on its

food label, ingredients, or composition, must be registered in the electronic system

(ZAD), which is an integrated smart platform for food products data, before being

handled in the markets of the United Arab Emirates.

SWOT analysis:

Strengths:

 Eco friendly product packaging

 Organic snacks

 Affordable prices

 Easy access through physical store as well as online store

 High customer needs as we can see in the survey 60% are health conscious and 70%

read the label while purchasing snacks.

 90% of the consumers are interested in a healthy snack company being launched

which is Nutricrisp.

 We can also see that while purchasing a snack product 20% read about the statement

of health benefits in the label, 30% read the calorie count and 40% read the nutrition

facts panel, hence this lets us know that the company will create high sales as our

snack product will be organic and healthy.

Weakness:
  High rent cost for physical stores

 High salary expense for delivery workers for the online purchases

 Difficult to change the eating habits of consumers who don’t prefer organic snacks

which from our survey shows 40% of the consumers.

Opportunities:

 There is growth in demand for healthy products as consumers are more health

conscious.

 Increasing target customers by promoting healthy eating in the media as well as

marketing campaigns on social media.

 A decrease in the number of competitors due to entrance barriers as licensing in the

food and beverage industry of UAE is a complex procedure.

 Offering online ordering of products

Threats:

 Competitors’ threat as there many unhealthy snacks company’s which are already

popular in the industry and consumers find it hard to shift from them.

 As from the survey we can see 40% of consumers are not health conscious while

purchasing healthy snacks and this can be a mild threat for the company to change

their mindset to purchase their products.

 High substitutes in the market

 The emergence of new customers' needs as trends keep changing.

5 Porters Analysis

Existing Rivalry:
Due to the presence of a significant number of market players in the snack product industry,

the market environment in the UAE is extremely competitive. Kellogg, PepsiCo,

Weetabix, Lay's, etc. are major fast-food and snack market participants in the United Arab

Emirates. In addition, there are numerous local brands and businesses operating in the UAE

that provide food and snack items.

Threat of substitute products:

Because snack food manufacturers spend a lot of money on R&D to create and introduce new

items to the market, there is a high risk of substitute products. Additionally, due to rising

health consciousness among consumers, organic foods are now being used as a replacement

for snack and fried products.

Threat of new entrants:

Threats from new entrants are moderate since established brand names attract more

customers and make it tough for new firms to enter while small and medium-sized business

firms are also entering the market of UAE with their local brands at comparably cheaper

pricing.

Bargaining power of suppliers:

Due to the abundance of raw material providers on the market, the supplier's negotiating

power is low. As we can order the raw materials from another supplier if one supplier is

charging a higher price for the products.

Bargaining power of buyers:

The bargaining power of buyers are high, since switching between brands is simple and

inexpensive when items differ somewhat from one another and are more standardized. It has

been suggested that customers are drawn to the affordable prices.

Consumer Survey
 References
UAE. (n.d). Food safety. https://u.ae/en/information-and-services/health-and-fitness/food-

safety-and-health-tips

Bridge, S. (2019). Revealed: how much more food the GCC will consume by 2023.

ArabianBusiness. https://www.arabianbusiness.com/industries/retail/427711-revealed-

how-much-more-food-the-gcc-will-consume-by-2023

AaronAllen. (n.d). Macroeconomic Trends and the UAE Food and Beverage Industry.

https://aaronallen.com/blog/uae-food-and-beverage-industry

Rizmona. (2022). Trends and opportunities in the UAE food and beverage market.

https://www.rizmona.com/blog/trends-and-opportunities-in-the-uae-food-and-

beverage-market/

EmiratesNewsAgency. (2022). ‘Food for Life’ Campaign launched to drive nationwide

transformation towards healthier diets from sustainable food systems.

http://wam.ae/en/details/1395303023828

Appendix

Nutricrisp- Company Survey

https://docs.google.com/forms/d/e/

1FAIpQLScqy3k7QwkCbnm04YJFOJD0afaP4Q3OYfzYa7p44KjJGAvqKw/

viewform?pli=1&fbzx=-3056254756421232551