Responsible Business Plan and Pitch

A Business Proposal Submitted By

To

Dr. Lorenzo F. Garcia

SF State

Lam Family College of Business

Fall 2019

Table of Contents

Executive Summary .........................................................................................................................1

Company Description ......................................................................................................................2

What is it? ...........................................................................................................................2

Product and Services ............................................................................................................2

How it Works .......................................................................................................................3

The Setup .............................................................................................................................3

Job Duties.............................................................................................................................4

Market Analysis ...............................................................................................................................5

Geographic Location ............................................................................................................5

Target Market.......................................................................................................................5

Competition..........................................................................................................................6

Unmet Needs ........................................................................................................................8

Competitive Advantage .......................................................................................................8

Advertising Plan.............................................................................................................................10

Mission Statement ..........................................................................................................................11

Implementation ..............................................................................................................................12

Evaluation ......................................................................................................................................14

Budget ............................................................................................................................................15

References ......................................................................................................................................16

Appendices ....................................................................................................................................18

Appendix A ........................................................................................................................18

Appendix B ........................................................................................................................19

1

Executive Summary

2

Company Description Products and Services

What is it?

Fit Kid Kits is a meal plan kit service for adolescents. The company is located in

Lafayette, California opened Monday- Friday from 8am- 7pm and Saturday- Sunday from 8am-

5pm. Fit Kid Kits creates a healthy society allowing for adolescents to have meals based on

which foods are preferred. Fit Kid Kits informs the parents and their children on how to make

good decisions on what their children should be eating. The company specializes in home

cooked meals that are simple yet flavorful.

Products and Services

Fit Kid Kits provides meal preparations for lunch and dinner that can be picked up in

store or delivered to the customer. Most children are highly active in playing sports in Lafayette,

but they are lacking the nutrients needed. It is difficult to make children eat healthy, so why not

have a meal prepared of the foods they do like to eat. Our meal kits come in moderations that

provides a balance of all the nutrients children need to consume for their daily in-take. Instead of

searching for healthy meal ideas and worrying about what to make for lunch and dinner, Fit Kid

Kits provides a quick and easy solution. Coming into the store will allow for families to grocery

shop, but instead of going through each isle, everything will be right in front of them. Instead of

door dashing, eating out, or eating frozen meals, Fit Kid Kits are fresh meals that can be prepared

under 30 minutes. The meals are simple to make, even the children can make it themselves.

3

How It Works

In the store there will be a kiosk for the customers to interact with by imputing the foods

they want in their meal kits. A customer needs to create a profile online or in store on basic

information such as their weight, age, preferences on different foods, and what kind of goal they

are looking for. If the customer does not know which healthy option to pair with their meal the

kiosk provides options for each meal on the side. The food options are chicken, fish, pork,

variety of vegetables, starch products (rice, potatoes, and pasta), and seasonal fruits. The cost of

the meal kits depends on the weight of each product and the ingredients used to prepare the meal;

each kit ranges from $8 to $12. The meals are not cooked for the customers, but the kits will

have everything in them. This way the customer does not lose the experience of how it feels to

cook a homemade meal. The customers can check out at either the kiosk or at the registers.

The Setup

Fit Kid Kits wants the customers to experience the feeling as if they were in their own

kitchen. When the customer enters the store there will be a smell of a nice home cook meal. The

front of the store will have a flat walkway, that way it will be ADA compliant. There is a

window in the back of the store for the customers to see their meal kits being packaged. The

employees in the back have a computer screen to see each meal they need to prepare. There will

be three kiosks located in the front of the store, two registers, and one refrigerator for already

packaged meals. Fit Kid Kits is located along Mt Diablo Blvd where parking is free within the

lot, and it is half a mile from the Bart Station.

4

Job Duties

The owner, Caitlyn Wong, hires a hiring manager to employee new employees. There are

two people working the at the registers, and about five people working in the back preparing the

kits. There is a construction team who will come in to help remodel the building to fit the setup

plans. There will be a tech developer coming in to program the kiosks and create the website. A

nutritionist is contracted to create a meal plan for different varieties of each meal. The

nutritionist will work with the tech developer to pair each item with different foods. The

suppliers will be from a local grocery store along with local farmer’s markets. A manager will

come in everyday to manage the store. Employees will pack the meal kits in vacuum sealed bags

to keep the freshness. The packing for packing the meals will be supplied by Costco. The designs

for packaging and the logo are created by a family friend who is contracted with Fit Kid Kits.

Mission statement: Our job is to provide parents with creating a healthy meal preparation on

feeding their children the right nutrients.

5

Market Analysis

Geographic Location

Lafayette, California has an average population of 26,521 (Lafayette, California). The

median income for households in Lafayette, California is $152,609, while the mean household

income is $218,525 (Lafayette, California). An average household income is $218,525 with a

median income of $152,609 per household (Lafayette, California). There is an 18.8% of males

and a 13% range of females that are between the ages of five-14 (Lafayette, California). Between

the ages of 15-19 there is a 5.5.% range of males and a 7.1% of females in Lafayette, California

(Lafayette, California). In this area there is not a service of meal kits that is provided for

children.

Target Market

Potential customers are for families who want their children to begin eating healthy at a

young age. Starting between the ages 10- 18 in Lafayette, California is when children are

growing and starting to eat more (Gavin, 2019). In Lafayette there is 49% of families with

children are under the age of 18 (Lafayette, California). The target market is for individual

consumers that are boys and girls in middle school and high school. It is important to have

families with children within this range because Fit Kid Kits focuses on providing adolescents

within this age with healthy meals. It is beneficial to begin healthy habits when the children are

young because when they are older, there will be less health problems. It is a challenge for

adolescents to eat healthy and in Lafayette there are 34.9% of people who are overweight

(Lafayette, California). Parents should be informed on all of the nutrients in their children’s

meals. Parents seek for a quick and convenient way to purchase these meals. Each meal comes

prepared, but the steps needed to cook the meal are to a minimum.

6

Competition

A majority of the competition for Fit Kid Kits is online. Five company competitors are

Blue Apron, Freshly, Gobble, Sun Basket, and Home Chef. These competitors are meal plan diet

services that are online only, and other companies deliver it to the customers home. Each

competitor requires a subscription in order to receive the meal plans.

Blue Apron is a subscription-based meal kit founded in New York, New York. Their

packages for the meals come in recyclable packaging. Preparing the meals will take up to 45

minutes and it requires little to no cooking experience (Blue Apron). Delivery is nationwide with

each meal plan costing between $48 to $120, shipping included. A strength of Blue Apron has is

that have added a wine subscription. One of the strengths is that the company delivers high

quality food with high quality ingredients. Each serving can be between $8.99 to $9.99. Some

bad reviews that Blue Apron had was on their produce not being fresh. Blue Apron promotes

their business by having their customers refer their meals to friends and family. The company

uses their marketing money towards sending free meals to customers friends.

Freshly is also a meal plan delivery service for people who do not like to cook. When the

meals arrive, it is already prepared, all the customer has to do is heat it up for three minutes.

These meals are for paleo’s or if the customers want to complete the Whole30 day diet (Bruno,

A). All recipes are gluten free and the kits cost between $50 to $108, shipping included. A

strength for the company is that all of the meals are prepared by a chef. Freshly has three guiding

principles of sugar conscious, fewer processed foods, and more nutrients. A strength of theirs is

each meal contains the right amount of macronutrients and micronutrients. Their meals are very

convenient since the meals are already made. These are easy meals that require no clean up, like

7

dishes. A disadvantage of having food already left over is the experience. Some customers feel

as if they are eating leftovers all of the time. Social media is an influence for people to start

eating healthy, and the customers cannot show off their healthy meals since the foods are in a

plastic container.

Sun Basket is a meal plan diet specifically for Paleo’s. The company has vegan,

vegetarian, paleo, and gluten-free meals. All of the meals are made by an award-winning chef

Justine Kelly. Each meal prep time is around 30 minutes. Sun Basket delivers all over The

United States except Alaska, Hawaii, Montana, and parts of New Mexico (Bruno, A). The charge

of a delivery fee is $6, and for a weekly meal plan it will cost between $72 to $144. The meals

are packaged in all recyclable boxes, and all of the food is organic. The benefits of ordering from

online meal kits is it helps a customer become more knowledgeable about cooking. If customers

do not know how to prepare, Sun Basket is a good way to start. Some of the families have many

members in them, so when ordering the price added up. Even though the customers got to choose

the portion size, sometimes it was not enough.

Gobble’s recipes only take about 15 minutes to prepare. These are chef designed recipes

focuses on fitting their customers dietary needs and restrictions (Bruno, A). There are many

options for how many meals a customer would like to order a week as well as how many

servings. The meal plans cost between $72 to $144 weekly with a $7 shipping fee. If the meal is

not liked by the customer, the customer has a 7-day refund policy. A disadvantage is that there

are less options for special dietary needs.

Every week Home Chef offers different meals, 13 dinners, 3 lunches, and 2 fruit add-ons

every week for customers to choose from. There is no cooking required with their meal plans and

the meals are ready within five minutes. The company does have subscription plans, but there is

8

an option to skip a delivery and or make any changes to their shipments. Their weekly meal

plans can cost between $40 to $358 plus a $10 fee for shipping. A disadvantage of buying online

from Home Chef is that once the food is delivered the customer has to be home to receive the

package. This is because the food is on top of only standard ice packs.

All of the competitors provide a service for people who do not know what healthy foods

to shop for along with not know what meals to prepare.

Unmet Customer Needs

Meal plans are mostly acquired by adults or parents who want to eat healthy. An unmet

need is that these meals mostly apply to adults, but what about for the younger members.

Children can eat the meal plans bought by their parents, but normally children do not like to eat

the foods given in the meals. The meals have a healthy look to the meal, this does not attract the

eyes of the younger customers. Most younger customers like simple meals; for example, chicken

and rice, or pasta and salad. There are multiple snacks for children that come in portions, and

with Fit Kid Kits there will be small portions of fruit and veggies; this way their meal plan is not

overwhelmed with all veggies. Most online services for the meal plans are only online. This

limits the option choices of what comes in the meal plans.

Competitive Advantage

Fit Kid Kits is an in-store and delivery service meal plan kits provided for adolescents.

The parents can pick and choose any meal the children would like, and it will be ready in a kit.

Instead of searching for healthy dinner plans for the family, Fit Kid Kits helps create meals from

foods that are organic, non-GMO, and low in sodium; all recipes will be displayed in front of the

customer. There is no subscription needed and the customer can order online or in-store

whenever the customer wishes. Customers can choose when they want to receive the meals

9

which will help reduce freezer storage. There is a profile that can be made in- store or online, so

that the company can see what the customers goal is and in case the customer wants to reorder

the meal. All ingredients in the kits are created by a nutritionist, making sure that your child is

receiving the right amount of nutrients. If the customer orders online, $25 or more has to be

spent to receive free shipping. Customers order online and all of the food is vacuum sealed that

way the food is fresh when the customer receives it. The customers first meals are 15% off. The

company will have bundles where if the customer does want to buy more meals at a time, the kits

will be a cheaper price. The kits come with everything cut and prepared the customer needs to

bake it. The customer has an option to choose the portion size, and what they want in their foods.

Fit Kid Kits makes the process very simple that way the customers are in and out of the store.

This company does not take away the experience of cooking, but these kits will help take away

some of the meal prep time.

10

Advertising Plan

The advertising company Single Origins is contracted with Fit Kid Kits to influence users

to visit the site to spread awareness on why meal kits are a healthier option. Single Origins

promotes the store in order for opening day to be successful and have a high event crowd. Single

Origins will help increase the number of customers to try the meals; this way Fit Kid Kits can

start to build relationships with the customers. Fit Kid Kits budget for the advertising campaign

is $100,000 a year.

Since the target market for Fit Kid Kits are adolescents they are surrounded by

technology. This means that the advertising plan will be posted mainly throughout social medias

and the web. Single Origins will create a 10 second ad on Snapchat briefly showing a pre-teen

eating a meal in the kitchen, mentioning why meal kits are best for them. The ad will play in

between a user watching their stories. On Instagram, Single Origins will create an ad of the

different food options that can go into a meal kit. Along with the ad on instagram there will be a

link on the ad that is directed to Fit Kid Kits website. Fit Kid Kits needs to spread the message

towards parents, so there will be ads online and in magazines. If the parents or adults ever search

for healthy recipes, ads on the side of their searches will appear.

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Mission Statement and Objectives

Our Mission Statement

Fit Kid Kits is a meal kit service that helps families feed their children healthy choices in

Lafayette, California. Our mission is to inform parents on what nutrients their children should be

eating, reducing health risks, and quick meals to pick up.

Goal

Parents should be informed

on why their adolescents

should eat nutritious meals.

Goal

With easy and low-cost meal

plans will help adolescents make

better choices when eating.

Goal

Provide a fast food like

service with healthy meals.

Objectives

1) Explain online and in-

store on which foods

are best for the

customer.

2) Increase the

knowledge to the

customers of the

consequences of not

eating healthy.

Objectives

1) design meal kits that are

quick and easy for the

customer to bake it at

home.

2) Produce meals that are

accessible to low- and

high-income families.

Objectives

1) Installing a kiosk will

help the customer

order and receive their

meals faster.

2) Grabbing premade

meals can be simpler

for customers to grab

and go, making it

quicker as if the

customer was ordering

take-out.

12

Implementations

1/03/20- 1/10/20- Owner contracts commercial realtor to locate a location for the store front.

1/11/20- 2/1/20- Owner contracts XYZ Construction to begin renovation.

2/2/20- Owner contracts with advertising company to plan advertising ads.

2/2/20- 2/16/20- Owner obtains for a business license with the state’s department of licensing.

2/2/20- 2/16/20- Owner obtains for Employer Identification Number.

2/2/20- 2/16/20- Owner obtains for seller permit with state department of revenue.

2/2/20- 2/16/20- Owner obtains for food handler’s permit by online training.

2/2/20- 2/16/20- Owner obtains for health department permit with online application process.

2/2/20- 2/16/20- Owner obtains fire certificate for building from Uttar Pradesh Fire Service Dept.

2/2/20- 2/16/20- Owner obtains for certificate of occupancy to rent the space for the store.

2/17/20- 3/2/20- Owner contracts nutritionist to create healthy meal ideas for each kit.

3/3/20- 3/17/20- Owner contracts tech developer to create kiosk program.

3/18/20- 3/30/20- Owner contracts with vendor and local farmers market.

3/31/20- 4/13/20- Owner contracts with Costco for packaging products.

4/14/20- 4/17/20- Owner purchases furniture and storage supplies for store.

4/18/20- 4/25/20- Single Origins releases advertising for opening day; flyers, social media, ads.

4/26/20- 4/30/20- Owner hires a hiring manager to help manage the store and hire new

employees.

5/1/20- 5/2/20- Deliveries from all vendors and Costco arrive and be unloaded.

5/3/20- 5/10/20- Owner contracts designer to create the logo, design the packaging labels, flyers.

5/11/20- 5/15/20- Hiring manager interviews applicants.

5/16/20- 5/23/20- Owner sets up the store with employees.

13

5/24-6/7/20- Staff training between the employees and the owner.

14

Evaluation

The income statement reflects the results of how the business has profited within a

certain time frame. Once Fit Kid Kits has been open for a year, the income statement will

analyze which certain areas have been successful for the company. Fit Kid Kits will be able to

see whether or not if their target market was reached. If the target market was not reached the

data will determine who is a more conducive target market. The accountant that is contracted

with Fit Kid Kits will prepare an income statement each quarter and at the end of the fiscal year.

After we analyze what has worked best for the company, Fit Kid Kits can see what issues there

were in sales or marketing (See Appendix A).

Capturing measurable qualitative data benefits a company because it researches direct

observations. Sending out a survey to each customer after they have purchased a meal plan kit

will help Fit Kid Kits see what customers like and do not like about the service. The survey looks

at how customers buying behavior is when purchasing a kit. The survey analyzes a better

understanding of the specific qualities a customer is searching for when coming into the store.

There will be negative feedback with the surveys, but the comments will improve the quality of

the service (See Appendix B).

15

Budget

16

References

Areavibes. (n.d.). Lafayette, CA Demographics. Retrieved from

https://www.areavibes.com/lafayette-ca/demographics/

Blue Apron. (n.d.). Retrieved from https://www.blueapron.com/pages/vision

Bruno, A. (n.d.). The 17 Best Healthy Meal Delivery Services of 2019. Retrieved from

https://www.self.com/gallery/10-healthy-meal-delivery-services

Chef-cooked, healthy meals delivered to you. (n.d.). Retrieved from https://www.freshly.com/

Digital Advertising Solutions - Single Origin: A Digital Creative Agency. (n.d.). Retrieved from

https://singleorigin.co/advertising/.

Gavin, M. L. (Ed.). (2019, June). Growth and Your 13- to 18-Year-Old (for Parents). Retrieved

from https://kidshealth.org/en/parents/growth-13-to-18.html.

Haney, A. (2019, August 15). Freshly Review (Pros/Cons, Pricing, and More). Retrieved from

https://introwellness.com/nutrition/meals/freshly-review/

Home Chef Review. (2019, September 18). Retrieved from

https://www.top10mealdeliveryservices.com/reviews/home-chef-review/

Income statement 1 year. (2019, April 3). Retrieved from https://templates.office.com/en-

us/income-statement-1-year-tm01113238.

Lafayette, California. (n.d.). Retrieved from http://www.city-data.com/city/Lafayette-

California.html

17

Lafayette, California Population 2019. (n.d.). Retrieved from

http://worldpopulationreview.com/us-cities/lafayette-ca-population/

Lutz, A. (2017, October 19). I stopped using Blue Apron after being a huge fan - and the reasons

reveal that the company is doomed. Retrieved from

https://www.businessinsider.com/blue-apron-pros-and-cons-2017-10

White, S. (2019, March 30). A Dietitian's Honest Review of a Meal Delivery Service. Retrieved

from https://parentingdiabetes.com/food-carbcounting/a-dietitians-honest-review-of-sun-

basket-meal-service/

18

Appendices

Appendix A

(Source: Income statement 1 year, 2019)

19

Appendix B