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:
There is currently no food app devoted to foodiess and their specific interests and needs.
The management team employed has are professionals from the mobile applications and food businesses.
The mobile applications business is a proven business and has succeeded throughout the world and is continuously growing reaching a wider user-base.
Growth in smartphone users and mobile app downloads work in favour for Foodie Tale Inc.
Foodie Tale Inc. seeks a total funding of $1.25 million to launch its business. The capital will be used for further app development, marketing collateral, website development and working capital.
2. A concise description of the product or service
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.
3. Business Model
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.
2.1 Customer Segments
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.
2.2 Value Proposition
According to Osterwalder (2011), a company’s value proposition is what distinguishes it from its competitors.
There is no food app devoted specifically to foodiess and their specific interests and needs.
The management team are successful experts in the mobile applications and food businesses.
The users get an exclusive insight into the world of food and beverages that is not available to everyone. Only those registered through the app can attend the events organized by the team.
The users can also avail premium services of Foodie Tale Inc. Privilege for a fee, which provide offers and discounts to its users.
There will be cooking classes offered by some of the best chefs in the industry.
The app will enable users to create events that the management team can help organize depending on their interest or needs; thus, drawing in more users.
There will be wine and beer tasting events with local breweries and wineries set up exclusively for the members of the app who can attend such events for a fee.
The app will display events that are happening at various restaurants/bars around the city that can help the users decide where they would like to spend their evening.
The app will enable the history of the users to be stored, which can be accessed anytime.
The app will provide push notifications, real-time chat with other users or the customer service executives, sharing map location and voice messaging.
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.
2.4 Customer Relationships
Self-service – the user can access the app at anytime over a stable internet connection and can choose to attend any event organized by the team or visit any restaurant, bar or cafe whenever they wish to.
Automated services – In case of any complaints, the user can access the complaints tab on the app or website and list their problem(s). The expected turnaround time for problem redressal is 24 hours.
There is also a contact number that users will have access to in case of urgent queries or complaints.
The users can make their bookings only via the app whether they would like to make a reservation at a cafe/restaurant/bar or if they wish to participate in an event organized by the team.
Communities – the users have the option of creating communities via the app to get to know people with similar interests.
The users are also invited to write reviews of their experiences about the events attended or something they really liked or disliked.
The users also can create their own personal blogs about the events and their experience with the app. The users also can request recipes or tips from the list of professional chefs associated with the app.
In addition, the users can also provide feedback and suggestions about the app or what they would like to do as individuals or groups.
2.5 Revenue Streams
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:
Subscription to the Foodie Tale Inc. Privilege service
Advertising in the App
Partnerships with vendors and local restaurants, bars and cafes to be featured on the app. This will help them expand their customer base as well.
2.6 Key Resources
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.
2.7 Key Activities
Marketing the app and website through advertisements and key partners
Designing a user friendly app and website with high functionality.
Developing the app and website ensuring it functions smoothly and updating the app and website to keep up with the changing trends and check for any bugs that deters its functioning.
Ensuring that the customer service team is available to our users and help enrich the user experience.
Ensuring that the payment partner portals function correctly to avoid and incorrect transactions.
2.8 Key Partnerships
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:
Local restaurants, cafes and bars
Local farmers who supply their produce
Wineries and breweries
Google, Apple and Microsoft (app stores)
2.9 Cost Structure
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.
4. A competitive analysis focusing on the most relevant competitors
Direct and Indirect Competitors
Foodie Tale Inc. has a few competitors due to their current brand and resources:
Tastemade is an app that caters to the foodie and traveller. Tastemade shares short videos showcasing the most trending places for food lovers. The app also enables its user to make their own videos during their travels and creates a timeline of of the places they have visited and a list of placed they wish to see.
Foodora is a Berlin-based food delivery company that only provides a basic online ordering and delivery service.
Restaurant Finder covers restaurants across the USA, Canada and Europe, as well as Australia, Brazil, Malaysia, and other countries. It provides a list of places near one’s location, including detailed reviews for each eatery. Additionally, it also shows information about grocery stores in close proximities in case restaurants or bars are shut.
Foodie Tale Inc. enjoys a few advantages over its competitors that include:
Niche Market Focus: By serving the niche market of foodies, Foodie Tale Inc. will be able to focus its products and content on the needs of these customers. Also, currently there isn’t any app that organizes various food-related events in partnership with popular restaurants and skilled chefs.
Relationships: The technology director would employ the services of the best programmers and mobile application development companies improving the app’s functionality.
5 A simplified marketing plan
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:
Offering a wide variety of material centered around food, wine and beers for app users
Making the experience of dining and cooking simple and enjoyable
Ensuring excellent customer service, with skilled and experienced customer service representatives
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.
Search Engine Optimization – 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.
Email Marketing – 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.