2010
Transcription
2010
Business Plan Matthieu Vincent 59211079 Grete Napits 58210359 Anne Marie Knox 59211834 Patrick Keenan 59213337 2010 DCU Business School Assignment Submission Student Name(s): Matthieu Vincent Anne Marie Knox Grete Napits Patrick Keenan 59211079 59211834 Student Number(s): 58210359 59213337 Programme: MECB1 - MSc in Electronic Commerce (Business) Project Title: Practicum - CookiFI Module code: CA 550 Lecturer: DR. Cathal Gurrin Project Due Date: 03/07/2010 Declaration I the undersigned declare that the project material, which I now submit, is my own work. Any assistance received by way of borrowing from the work of others has been cited and acknowledged within the work. I make this declaration in the knowledge that a breach of the rules pertaining to project submission may carry serious consequences. I am aware that the project will not be accepted unless this form has been handed in along with the project. Signed:_________________________ Signed:_________________________ Signed:_________________________ Signed:_________________________ 2 2010 Internal Team Appraisal Form As a team, we have decided to deduct 10% out of the 100% for the practicum for an internal team appraisal. If you could so kindly, grade our report and presentation based on 90% and assign the 10% according to the below table as we feel that some team members have contributed more and it is only fair that they be recognised for their hard work. Group Members Name Value of contribution to the group project See explanation above. Please provide written comments 1% to 10% 1. Anne Marie Knox 2. Grete Napits 3. Matthieu Vincent 4. Patrick Keenan 3 2010 Table of Contents 1 2 3 Executive Summary ....................................................................................................................... 11 1.1 Product .................................................................................................................................. 11 1.2 Market................................................................................................................................... 12 1.3 Strategy ................................................................................................................................. 12 1.4 Business Model ..................................................................................................................... 12 1.5 Target markets ...................................................................................................................... 13 1.6 Sales Forecast........................................................................................................................ 13 1.7 Financial Summary ................................................................................................................ 13 1.8 Funding requirements........................................................................................................... 14 1.9 Exit Strategy .......................................................................................................................... 14 The Concept .................................................................................................................................. 15 2.1 Objectives.............................................................................................................................. 15 2.2 Product Specification ............................................................................................................ 16 2.3 Unique Selling Point .............................................................................................................. 18 2.4 Add on recipe bundles .......................................................................................................... 19 Business Strategy .......................................................................................................................... 20 3.1 Business Model ..................................................................................................................... 22 3.2 Milestones............................................................................................................................. 23 3.3 Market Drivers ...................................................................................................................... 24 3.3.1 Internet Recipes ............................................................................................................ 24 3.3.2 iPad Sales ...................................................................................................................... 25 3.3.3 Obesity and Overweight Rates...................................................................................... 25 3.3.4 Health Conscious Consumers ........................................................................................ 25 3.4 Risk Assessment .................................................................................................................... 26 3.5 Value Chain ........................................................................................................................... 27 3.6 Operations Process Map ....................................................................................................... 29 4 Industry Analysis ........................................................................................................................... 30 5 Competitors Analysis .................................................................................................................... 31 5.1 Our Competitive Advantage ................................................................................................. 31 5.2 Digital Touchscreen Cookbooks Competitors ....................................................................... 32 5.3 Key Ingredients ..................................................................................................................... 33 4 2010 6 7 5.4 iPad, iPhone and iTouch Apps ............................................................................................... 33 5.5 Apple Downloads Timeline ................................................................................................... 33 5.6 iPad, iPhone & iTouch Apps and Websites ........................................................................... 34 5.7 Nintendo DS Lites .................................................................................................................. 36 Market Analysis ............................................................................................................................. 37 6.1 SWOT Analysis....................................................................................................................... 37 6.2 PEST Analysis ......................................................................................................................... 38 6.3 Market Trends ....................................................................................................................... 39 6.3.1 Food Blogging ................................................................................................................ 39 6.3.2 Touchscreen Technology .............................................................................................. 39 6.3.3 Weight Management Market ....................................................................................... 40 6.4 Market Share......................................................................................................................... 40 6.5 Market Segmentation ........................................................................................................... 40 6.6 Target Market ....................................................................................................................... 41 6.7 Health Conscious and Overweight Customers...................................................................... 42 6.8 Mother’s who want to manage their meals around their children ...................................... 42 6.9 Beginner Cooks ..................................................................................................................... 43 Market Research ........................................................................................................................... 44 7.1 Primary Research .................................................................................................................. 44 7.2 Findings from Interviews ...................................................................................................... 44 7.3 End User Survey Results........................................................................................................ 46 7.3.1 7.4 8 Survey Results and Analysis .......................................................................................... 46 Secondary Research .............................................................................................................. 47 7.4.1 Our Customer Sector .................................................................................................... 48 7.4.2 France............................................................................................................................ 48 7.4.3 Belgium ......................................................................................................................... 49 7.4.4 Switzerland.................................................................................................................... 50 Marketing Strategy ....................................................................................................................... 51 8.1 Product .................................................................................................................................. 51 8.2 Pricing Model ........................................................................................................................ 53 8.3 Distribution ........................................................................................................................... 53 8.4 Differentiated Target Approach ............................................................................................ 54 5 2010 8.5 Promotion ............................................................................................................................. 54 8.6 Celebrity Chef Endorsement ................................................................................................. 54 8.7 Websites and Blogs ............................................................................................................... 55 8.7.1 Le Journal du Geek ........................................................................................................ 55 8.7.2 Commercial Opportunity .............................................................................................. 55 8.8 Cuisine TV .............................................................................................................................. 56 8.9 Strategic Partnerships ........................................................................................................... 56 8.9.1 Mangerbouger .............................................................................................................. 56 8.10 Our own Website CookiFI ..................................................................................................... 56 8.11 ‘Que Choisir en Ligne’ Website and Magazine ..................................................................... 57 8.12 Social Media Marketing ........................................................................................................ 57 8.12.1 Facebook ....................................................................................................................... 58 8.12.2 Facebook Advertising .................................................................................................... 60 8.12.3 Twitter ........................................................................................................................... 60 8.13 Google AdWords ................................................................................................................... 61 8.14 Endorsement from Google.................................................................................................... 62 8.15 Offline Campaign .................................................................................................................. 62 8.16 Newspapers and Magazines ................................................................................................. 62 9 8.16.1 Metro ............................................................................................................................ 62 8.16.2 Sante Magazine ............................................................................................................. 63 Technical Solution ......................................................................................................................... 64 9.1 Technology Roadmap............................................................................................................ 64 9.2 Overview ............................................................................................................................... 65 9.3 Development of the Product ................................................................................................ 65 9.4 Underlying Technologies....................................................................................................... 66 10 Finances .................................................................................................................................... 67 10.1 Sales Projections ................................................................................................................... 67 10.1.1 Sales Forecast, Year 1.................................................................................................... 68 10.1.2 Sales Forecast, Year 2.................................................................................................... 68 10.1.3 Sales Forecast, Year 3.................................................................................................... 69 10.2 Cash Flow Statement Summary, Years 1-3 ........................................................................... 70 10.3 Profit and Loss Account Summary, Years 1-3 ....................................................................... 71 6 2010 10.4 Balance Sheet Summary, Years 1-3....................................................................................... 72 10.5 Funding requirements........................................................................................................... 73 11 Appendices ................................................................................................................................ 74 11.1 Key Resumes ......................................................................................................................... 74 11.1.1 11.2 Team Strengths and Weaknesses ................................................................................. 75 Project Management ............................................................................................................ 77 11.2.1 Matthieu Vincent .......................................................................................................... 77 11.2.2 Grete Napits .................................................................................................................. 78 11.2.3 Anne Marie Knox........................................................................................................... 78 11.2.4 Patrick Keenan .............................................................................................................. 78 11.2.5 Meetings ....................................................................................................................... 78 11.2.6 Set up Google Sites ....................................................................................................... 78 11.3 Reasons for setting up in France ........................................................................................... 79 11.3.1 Doing Business in France Facts ..................................................................................... 79 11.3.2 Summary of Indicators- France ..................................................................................... 79 11.4 Notes on Finances ................................................................................................................. 81 11.4.1 Employees and Wages .................................................................................................. 81 11.4.2 Professional Fees .......................................................................................................... 81 11.4.3 Payroll Taxes and Benefits ............................................................................................ 81 11.4.4 Fixed assets ................................................................................................................... 82 11.4.5 Other Office Costs ......................................................................................................... 83 11.4.6 Sales Forecasts .............................................................................................................. 83 11.4.7 Rent/Rates and Insurance ............................................................................................. 84 11.4.8 Marketing ...................................................................................................................... 84 11.4.9 Cost of Sales .................................................................................................................. 85 11.4.10 Other Considerations ................................................................................................ 87 11.4.11 Amortisation of loan ................................................................................................. 88 11.4.12 Venture Capitalists .................................................................................................... 92 11.5 Competitors .......................................................................................................................... 94 11.5.1 Food Websites............................................................................................................... 95 11.5.2 Free Digital Cookbook Software ................................................................................... 96 11.5.3 Weightwatchers and App.............................................................................................. 96 7 2010 11.5.4 11.6 Competitors Products ................................................................................................... 97 Market Analysis ..................................................................................................................... 98 11.6.1 Food Expenditure 1994-2007/08 .................................................................................. 98 11.6.2 Top 10 Distributed French Magazines ........................................................................ 101 11.6.3 OECD: Overweight and Obesity Figures ...................................................................... 102 11.6.4 Children Aged 11-15 years who are overweight or obese, and children who are involved in weight reduction behaviour, 2005-2006 (OECD) ..................................................... 102 11.6.5 Total of marriages in France ....................................................................................... 103 11.6.6 Total of First Marriage Rates in Switzerland .............................................................. 104 11.6.7 Global Sales of Slimming Products .............................................................................. 105 11.6.8 Global Smartphone App Download Market................................................................ 106 11.6.9 Mobile Application Stores' Number of Downloads and Revenue, Worldwide ........... 106 11.7 Market Research ................................................................................................................. 106 11.7.1 Survey Analysis 1 ......................................................................................................... 107 11.7.2 Survey Analysis 2 ......................................................................................................... 113 11.7.3 Interview 1 .................................................................................................................. 117 11.7.4 Interview 2 .................................................................................................................. 125 11.7.5 Our Market Segmenting Criteria ................................................................................. 129 11.8 Future Expansion ................................................................................................................ 131 11.8.1 Norway ........................................................................................................................ 132 11.8.3 Sweden ........................................................................................................................ 133 11.8.4 Finland ......................................................................................................................... 133 11.9 Possible Markets ................................................................................................................. 133 11.9.1 UK ................................................................................................................................ 133 11.9.2 Ireland ......................................................................................................................... 135 11.10 Google Advertising .......................................................................................................... 136 11.11 Contact List...................................................................................................................... 142 11.11.1 Manufacturers of Tablets........................................................................................ 142 11.11.2 People Contacted .................................................................................................... 143 11.12 Distributed Stores ........................................................................................................... 143 11.12.1 France...................................................................................................................... 143 11.12.2 Belgium ................................................................................................................... 145 11.13 Distributed Stores Locations ........................................................................................... 145 8 2010 11.13.1 Fnac – France .......................................................................................................... 145 11.13.2 Fnac Belgium ........................................................................................................... 152 11.13.3 Fnac Stores: Switzerland ......................................................................................... 153 11.13.4 Vanden Borre Stores: Belgium ................................................................................ 154 11.14 Cooking book publishers in France ................................................................................. 157 11.15 Union TradeMark Search – the trademark and Design Registration Office of the European 158 11.16 Social Media Marketing Report ...................................................................................... 160 11.17 Sales Plan Report ............................................................................................................ 161 11.18 Technical Report ............................................................................................................. 161 11.19 Finance Report ................................................................................................................ 162 Acknowledgements............................................................................................................................. 163 Bibliography ........................................................................................................................................ 164 Table of Figures Figure 1: Strategic Scenarios ................................................................................................................. 12 Figure 2: Product Functionalities .......................................................................................................... 16 Figure 3: Unique Selling Point ............................................................................................................... 18 Figure 4: Strategic Scenarios ................................................................................................................. 20 Figure 5: Business Model ...................................................................................................................... 22 Figure 6: Product Milestones ................................................................................................................ 23 Figure 7: Value Chain (Source: Netmba 2010, Porter’s Generic Value Chain)...................................... 27 Figure 8: Operations Process Map ........................................................................................................ 29 Figure 9: Porter's Five Forces ................................................................................................................ 30 Figure 10: Apple Downloads Timeline (Source: Fortune 2009 and Tuaw 2010) .................................. 33 Figure 11: Touchscreen Module Revenue Forecast (Source: Display Research Touch Market Report 2009, (Cult of Mac 2009)) ..................................................................................................................... 39 Figure 12: Market for the Prescription Obesity Drugs, 2007-2017 (Source: Bioworld research 2010) 40 Figure 13: Customers buying a digital cookbook as a gift..................................................................... 46 Figure 14: Customers buying a digital cookbook for themselves ......................................................... 47 Figure 15: Porter's Five Forces .............................................................................................................. 51 Figure 16: CookiFI Pricing Model .......................................................................................................... 53 Figure 17 Facebook Users – France (Source: CheckFacebook 2010) ................................................... 58 Figure 18 Facebook Users – Belgium (Source: CheckFacebook 2010) .................................................. 59 Figure 19 Facebook Users – Switzerland (Source: CheckFacebook 2010) ............................................ 59 Figure 20: Technology Roadmap........................................................................................................... 64 Figure 21: Year 1 Sales .......................................................................................................................... 68 9 2010 Figure 22: Year 2 Sales .......................................................................................................................... 68 Figure 23: Year 3 Sales .......................................................................................................................... 69 Figure 24: CookiFI Device Sales ............................................................................................................ 84 Figure 25: Email from Sunsing, our prospective device suppliers ........................................................ 85 Figure 26: Top 10 Distributed French Magazines (Source:Ozap 201) ................................................. 101 Figure 27: Overweight and Obesity Figues (Source: OECD Overweight and Obese 2007 (Small-M 2007)) .................................................................................................................................................. 102 Figure 28: Global Sales of Slimming Products Source: Euromonitor 2010 – Consumer Health – trends developments and prospects )( ............................................................................................................ 105 Figure 29: App Customer Base (millions) (Source: Research Guidance 2010, (Techcrunch 2010)) .... 106 Figure 30: Household Size ................................................................................................................... 107 Figure 31: Ever Bought a Cookbook .................................................................................................... 107 Figure 32: Visiting Cooking Websites .................................................................................................. 108 Figure 33: Frequency of Cooking at Home.......................................................................................... 108 Figure 34: Ever printed out Recipes .................................................................................................... 109 Figure 35: Frequency of Printing Recipes ........................................................................................... 109 Figure 36: Watching Cooking Shows ................................................................................................... 110 Figure 37: Ever Taken Laptop to Kitchen ............................................................................................ 110 Figure 38: Own an iPod Touch, iPad ................................................................................................... 111 Figure 39: Downloaded Cooking Apps ................................................................................................ 111 Figure 40: Cooking Experience ............................................................................................................ 112 Figure 41: Frequency of Consuming 'junk food' ................................................................................. 114 Figure 42: Ability to Control Weight ................................................................................................... 114 Figure 43: Owns a Weighing Scale ...................................................................................................... 115 Figure 44: Scale helps eat healthily and control weight ..................................................................... 115 Figure 45: Worried About Weight....................................................................................................... 116 Figure 46: Avg. Consumption of Fruit/Vegetables .............................................................................. 116 Figure 47: Google AdWords Account Creation 1 ................................................................................ 136 Figure 48: Google AdWords Account Creation 2 ................................................................................ 137 Figure 49: Google AdWords Campaign Creation ................................................................................ 137 Figure 50: Google AdWords Campaign View ...................................................................................... 138 Figure 51: Google AdWords Campaign Settings ................................................................................. 139 Figure 52: Google AdWords Ad Creation 1 ......................................................................................... 140 Figure 53: Google AdWords Ad Creation 2 ......................................................................................... 141 Figure 54: Google AdWords Ad Settings ............................................................................................. 142 Figure 55: Trademark Search 1 (Source: The trademark and Design Registration Office of the European Union 2010) ........................................................................................................................ 158 Figure 56: Trademark List (Source: The trademark and Design Registration Office of the European Union 2010)......................................................................................................................................... 159 Figure 57: Trademark Search 2 (Source: The trademark and Design Registration Office of the European Union 2010) ........................................................................................................................ 159 Figure 58: No Trademarks Found Result (Source: The trademark and Design Registration Office of the European Union 2010) ........................................................................................................................ 160 10 2010 1 Executive Summary CookiFI SARL is a French company based in Paris which is set to re-define the cooking management industry. CookiFI is involved in the creation of software for cooking management which is enabled on touchscreen tablets and the selling of digital touchscreen cookbooks to third party retailers. A French speaking user can purchase a CookiFI within our selected retail stores and on-line in our segmented markets including France, Belgium and Switzerland and a user can also download add on recipe bundles on our website. The company aims to enhance a users cooking experience and bring digital technology to the fore front within the kitchen. 1.1 Product CookiFI is 10.2” high resolution touchscreen digital cookbook tablet which managers a users cooking lifestyle by aiding cooking and healthy living. CookiFI contains the following features; 5,000 preloaded recipes. View, add and create your own recipes. 500 recipes: where the device speaks instructions so the user does not have to look at the screen. Issue commands, such as, Next, Back, Time and repeat for an audio recipe. Movement recognition: Detects hand movement. Share recipes on-line via Wi-Fi. Splash resistant and plastic sturdy exterior to meets the busy needs of a kitchen. 11 2010 1.2 Market The explosive growth of touchscreen technology has seen an increase for demand in touchscreen technologies. 60 million search recipes on-line (Infowoof 2009), an indication that cooking still remains popular and over 309 million Western Europeans are blogging to express appreciation of food who are food lovers, enjoy cooking etc. Consumers are becoming increasingly aware of the importance of the link between their diet and their health including consumers who are health conscious, overweight and obese. Rising obesity and overweight prevalence has lead to explosive growth in the weight management market. 1.3 Strategy Figure 1: Strategic Scenarios 1.4 Business Model CookiFI business model will encompass; Direct Model: selling directly through Amazon. 12 2010 Retail stores: selling to retail outlets. Download recipe bundles: for instance, Italian Cuisine Advertisement: the possibility of advertisement on our website 1.5 Target markets CookiFI‟s main target group is between the age of 18 -60 encapsulating the following target markets; Health conscious consumers Overweight consumers Beginner cooks Consumers who want to manage their cooking lifestyles 1.6 Sales Forecast Sales Forecast Year 1 10,000 Year 2 20,000 Year 3 25,000 1.7 Financial Summary The table below is extracted from our financial analysis which details a full set of accounts for the first three years of trading. Under these figures, the company will be profitable in year two with year three seeing strong growth. 13 2010 Year ending 31st of Dec 2010 2011 2012 Revenues 1,057,000 2,878,840 3,990,200 Gross Profit 38,939 1,076,192 1,963,337 Gross Margin 4% 37% 49% Net Profit/Loss (344,629) 603,460 1,486,886 1.8 Funding requirements Funding Requirements Directors €80,000 External Investors €1,000,000 AIB Bank Loan @ 4.15% €100,000 1.9 Exit Strategy The directors believe that the re defining of the cookbook management device industry will facilitate user adoption within France, Belgium and Switzerland. It also believed that after year three expansions to other European Markets will accelerate a possible exit strategy. This will provide an exit strategy in the form of IPO, merger or acquisition or sale. 14 2010 2 The Concept CookiFI’s Product Mission statement: “CookiFI’s vision is to be known as a kitchen touch screen device which manages a users cooking lifestyle and becomes a standard in the kitchen.” The long term is to create an instant recognizable brand and be recognized for our cooking features especially how CookiFI helps a user in the kitchen. The organization intends to create a future of smart technology within the home starting by the introduction of CookiFI. 2.1 Objectives CookiFI‟s main objectives are as follow: To maximize shareholder value through profitable growth. To lead the digital revolution in the home. To focus initially on penetration of France, Switzerland and Belgium markets in Year 1 and the possibility of expansion plans with a second phase of penetration into Norway, Sweden and Finland markets after year 3. To realize shareholder value in 2015 through sale, merger or acquisition and IPO. 15 2010 2.2 Product Specification Figure 2: Product Functionalities CookiFI Digital Cookbook “CookiFI touchscreen digital cookbook enters the kitchen and changes the idea of what a cookbook can do because it can do much more than a traditional cookbook could ever do. It manages your cooking lifestyle!” 16 2010 Touchscreen Technology: CookiFI is a 10.2” high resolution colour touchscreen digital cookbook for use in the home to aide cooking and healthy living. The device provides stepby-step instructions for easy food preparation for beginners and more advanced home chefs. Picture Frame: CookiFI allows a user to have a picture as their screen saver. Recipes: The product includes 5,000 recipes stored on the device; further recipes can be downloaded online via onboard Wi-Fi or by PC. CookiFI also holds and creates your personal recipes in a sleek compact device. The recipes can also be shared on-line. Target Markets: CookiFI will be targeted for French speakers in France, Switzerland and Belgium in Year 1. CookiFI's user interface is simple to use and will allow users to search for recipes by ingredients, calories or even a random recipe. Its uncluttered interface and many tools can simplify the users cooking experience. 17 2010 2.3 Unique Selling Point Speaks Voice Recognition Hand Movement Recognition Social Aspect Monitor & control nutritional food intake • 500 Recipes:Speaking instructions giving step-by-step instructions, to help users who feel apprehensive when it comes to preparing and cooking a meal. • User can issue commands to go to next or previous step & other commands such as: Next, Back, Minutes/Time and Repeat. • Detect the hand of the user the device. • User does not have to touch the device. • Easy change of pages with hand movement. • Re-define social cooking by creating and sharing recipes on-line. • Create new social network for all those health conscious users or for users who simply enjoy food. • Hub of social cooking computing activities. • A user can input “how many calories, they want to consume in a day then create menus where the recipes calculate the number of calories and the user is told the number of calories” Meet the busy needs of a kitchen • Splash-resistant design and sturdy plastic exterior. • .6 hours of battery storage Virtual Library of Recipes • Access recipes including their personal recipes by jumping to any letter. • Store your own personal recipes for future use. Video Recipes • 50 Videos: Watch CookiFI‟s famous chefs prepare and cook meals. Figure 3: Unique Selling Point 18 2010 2.4 Add on recipe bundles In Year 1, the company will introduce two recipe bundles, downloadable by our website. Italian Cuisine: 500 recipes to download for a price of €5. Mexican Cuisine: 500 recipes to download for a price of €5. From there on the bundles will be added according to need and time. 19 2010 3 Business Strategy The organisation is fully committed to bringing the optimised personal digital touchscreen cookbook to consumers. The organisation‟s business strategy leverages its ability to design the digital cookbook in order to take advantage of its own very software Figure 4: Strategic Scenarios CookiFI strategy will evolve to encompass four pivotal scenarios in order to guarantee the success of CookiFI: Enter new Markets: we believe that once the success of CookiFI is achieved within our target groups and other potential target groups in Europe. The company will be in firm agreement that CookiFI can be successful in entering and marketing in new potential markets such as USA, China and Japan etc. to gain more sales and to bring CookiFI to the forefront of cooking devices which manages a users cooking lifestyle. 20 2010 Continual updating of software: the company firmly believes in the continual updating of its software to provide our users with new and advanced software. Develop and Launch new products: CookiFI believes fully in the continual investment in research and development because it is critical to the development of new products which are creating solutions to problems in the kitchen with ease of use, design interface and integration. Introducing new customised add-ons such as for sports nutrition will be a further contributor to growth. Expansion: Our long term view can be divided into two parts. First we want to set up in the kitchen with smart devices that are more and more integrated. On the long term, we see our device embedded in the kitchen – as most people buy kitchen elements all together. We also think that our device evolution will be linked with the evolution of the cloud technologies – by making the device running a cloud OS and so the device becomes thinner and lighter. Secondly, we also see ourselves being part of the smart house. We intend to develop a range of product to facilitate the life of the users in their everyday life, e.g. a smart device in the bathroom helping users to take care of them or to dress. The organisations strategy encompasses a strategy of expanding its distribution network to effectively reach more of its target customers and provide these target customers with top notch sales and post sales experience. 21 2010 3.1 Business Model Advertising model: allowing other websites to advertise on our website. Advertising Download bundles: users downloading different add-on bundles such as diet plan on our website. Direct Business Model Add on Software bundles Direct model: selling to directly to customers through our website by linking in with Amazon. Selling to Retail Outlets Retail stores: selling to retail outlets such as electrical and supermarket stores in the European Market. Figure 5: Business Model 22 2010 3.2 Milestones • Timeline: 01/06/2010 - 30/08/2010 • Obtain Investment from „Business Angels‟. It is thought that at least €1,000,000 investment will be required with additional funds coming from initial investment and Milestone1 debt. Milestone • Timeline: 01/09/2010 - 30/10/2010 • Start work on the final product. 2 Milestone • Timeline: 01/10/2010 - 12/10/2010 • Apply for design patent, Trade Marks and copyright. 3 Milestone • Timeline:01/11/2010 - 14/12/2010 • Test the beta on a device + beta version ready to be installed on an emulator 4 • Timeline: 12/12/2010 - 31/12/2010 • Meetings with Fnac and various retailers to obtain shelf space and facilitate in-store promotions of product at launch. Meetings with celebrity chefs to discuss possible Milestone 5 endorsements. • 01/12/2010 - 31/12/2010 • Commercial website development Milestone 6 • Mobile device application development Milestone 7 Milestone 8 • Timeline: 01/01/2011 - 31/01/2010 • First Order - 5,000 devices to be delivered • User website + synchronising • Timeline: 01/01/2011 - 14/02/2010 • Product Launch Figure 6: Product Milestones 23 2010 3.3 Market Drivers Touchscreen technology Explosive Growth New Growth Phase Cooking Popularity Health Conscious 60 Million search internet Growing obsession with for recipes (Infowoof 2009) Personal Appearance. Laptop not safe in the kitchen Looking for ways to lose and control their weight. France being the second biggest market for the iPad iPad not made for the kitchen CookiFI become like a with prediction of sales of and iPhone or iPod touch weighing scale – a reminder in 805,000 in 2010 (Guardian screen too small the kitchen to eat healthily. UK 2010) 2.5 Million Kindles sold to Arrange cooking lifestyle date across the globe. around their children. Busy lifestyles and home values 3.3.1 Internet Recipes It is clear that the days of printing out recipes and bringing them into the kitchen are over. Even running back and forth from your kitchen to your desktop to drop ingredients all over your keyboard is not the answer (Cult of the Mac 2009). Internet recipes have often not been quality tested, sometimes are not accompanied by a picture to give a better indication of the meal. Based on this, users want to have tested recipes to ensure quality meals (TechCrunch 2010). 24 2010 3.3.2 iPad Sales If users of the iPad want to mount their iPad‟s into/onto kitchen cabinets, the question which arises is: “Is this practical for the user to use the iPad?” In terms of portability, a user is limit. The mounting of the iPad can be far away from the kitchen counter therefore a user would have to go back and forth in order to view the screen (Fresh Home 2010). For kitchen use, a user has to buy water-wear accessory for iPad in order to protect the iPad as well as a stand to hold the iPad in an upright position, which is an extra cost if the user desires to use the iPad in the kitchen (Applelinks 2010). 3.3.3 Obesity and Overweight Rates Rising obesity and overweight rates are a public health concern around the world. Our assumption that people who are obese will continue to struggle with their condition and look for ways to control their eating habits as well as what is nutritionally acceptable in meals (NCBI 2003). 3.3.4 Health Conscious Consumers Individuals, who are concerned with nutrition, fitness, stress and their environment, accept responsibility for their health and are a perfect target group for CookiFI (NCBI 1993). In recent years, the media and celebrity world has glamorised and made being thin the “IT” thing. Society has become to feel pressurised in order to maintain Hollywood‟s image of thin. While women remain the most health-conscious consumers, men are becoming increasingly aware of their health and diet (Just-Food 2010). 25 2010 Users who are concerned with their health, appearance and keeping fit will continue to buy products that help them control and monitor their food consumption and find recipes to suit their eating habits and needs. 3.4 Risk Assessment CookiFI faces a number of risks including; 1. Strong and entrenched competitors: the competitors identified have vast amount of resources and have already placed products onto the market or their other products can be used for the same purposes as our product. These players have already gained a substantial foothold within the market and thus making it difficult to achieve projected margin and revenues. 2. Global market for CookiFI: is highly competitive and subject to rapid technological change. If CookiFI is unable to compete effectively within our target markets, its operating results and financial results could be affected. 3. CookiFI depends on components, product manufacturing and logistics provided by third parties, who are located outside of France: Most of the components of CookiFI are manufactured in China. The organisation will outsource its logistics and transportation to a third party provider. This can have an effect on the company‟s ability to respond to changing conditions. The organisation relies on third party providers to follow the organisations supplier code of conduct. 4. Viable business model: Will the company‟s business model scale up to the projected sales forecast? Can CookiFI SARL survive as a stand- alone company or will the company be able to generate extra revenue from supplying add on bundles of recipes? 26 2010 5. Pricing: Has the company priced CookiFI at the right price both for the company and the market? 3.5 Value Chain Figure 7: Value Chain (Source: Netmba 2010, Porter’s Generic Value Chain) Inbound Logistics: the digital device will be sourced from Sunsing Technology which is located in Guangdong in China where the manufacturing of the device can be performed cheaper. The devices will be transported by a freight ship to Le Harve, North France or by air to Charles de Gaulle airport in Paris, France, which takes approximately up to two months to deliver from China. Operations: Once the devices have arrived, each device will have a standard Android operating system and initial testing will be carried out on the devices. 27 2010 On CookiFI‟s website, a user will have to download the necessary software. The next step will entail a user to sync their CookiFI with their computer. Outbound Logistics: Previous negotiations with retail stores will determine the quota of devices transported to their headquarters, where the retail stores will distribute them to their stores in France, Belgium and Switzerland. Bearing the quota of devices sent to retail stores, a set number of CookiFI devices will be sent to Amazon‟s fulfilment centre in France. The rest of the devices will be stored in a storage facility near Paris, France. Marketing and Sales: The digital cookbook will be marketed through online and offline advertising. Social media advertising will be set up as well as advertising in trade magazines. Also, it will be ensured that the stores selling the product will have an in-store promotion e.g. branded shelf display of the product (Netmba 2010). Tradeshows for cooking appliances will have a dedicated branded display of the product. After Sales Service: To deal with customer related issues a customer support service will be set up. They will be responsible for online knowledge base as well as an email service. Dedicated customer service dealing with complaints and refunds/returns will be put into operation(Netmba 2010). 28 2010 3.6 Operations Process Map Distribution toDarty Distribution to Fnac Distribution to Amazon Distribution to Vanden Borre Device is being manufactured Devices shipped to France Warehoused in France Distribution to Carrefour Customers Customers Distribution to Boulanger Distribution to Galeries La Fayette Distribution to Unigro Figure 8: Operations Process Map 29 2010 4 Industry Analysis The cooking industry is by no means a new industry but the evolvement of the technologies within the industry has transformed the way users interact with cooking technologies and thus, with the proposal of our digital cookbook, we hope to continue this trend with CookiFI. Users demand has stimulated new forms of technologies to be introduced in the kitchen, in particular how recipes are stored and how to organise a user‟s cooking lifestyle. Porter’s Five Forces Threat of New Entrants (High) • Well known cooking brands may decide to expand to new markets. • Barriers to entry: High capital costs, e.g. high start-up costs of manufacturing and warehousing. Power of Customers (High) • Many buyers. • May be unwilling to buy a digital cookbook at the offered price. • Abundance of alternative products e.g. traditional cookbooks. • High customer expectations. Competitive Rivalry (High) Intense competition betweencompetitors (e.g. websites, books, apps) Power of Suppliers (Low) • Many companies are offering touchscreen device manfacuturing. • Supplier may be locked into contracts. Threat of substitutes (High) • Cookbooks and recipe websites are cheaper. • Abundance of cooking applications on the market performing a similar task. • Alternative touchscreen devices (myDemy) • Customer influenced by cost and usability of device. Figure 9: Porter's Five Forces 30 2010 5 Competitors Analysis 5.1 Our Competitive Advantage We believe that CookiFI can compete for a variety of reasons. The question of healthy eating has become extremely important with consumers. There is a certain amount of consumer scepticism about food health claims made by manufacturers and retailers, with a number of respondents agreeing that they would prefer to decide for themselves whether or not a product is healthy (Research and Markets 2010). Food and Cooking Lifestyle Organises a users cooking lifestyle; 1.Menu Planners 2.Shopping Lists 3. Recipes Decide what recipes to cook & consume CookiFI further enhances users awareness of the link between health and diet Informed: nutritional advice on ingredients and recipes. Management Teaching aid on how to cook Multifunctional features for preparing and cooking meals. Video Recipes: Teach users how to prepare and cook meals Speaking device: CookiFI uses voice speech to read the steps of the recipe to a user Commands: Users can listen to recipes at their own pace 31 2010 5.2 Digital Touchscreen Cookbooks Competitors Company Company Product/ Location Service Offers to Consumers myDemy: Worlds first kitchen safe digital recipe reader. Key Ingredients Product: Texas- Austin 72 LCD colour touchscreen myDemy digital 250 recipes preloaded and holds up to 2500 Sync with www.keyingredient.com recipe reader and Food 3 built in timers and conversion tool Website Website: blog, recipes, and shop Price: $199.95 (MyDemy 2010). Target market: French Speakers 10.2 “ touchscreen QooQ 500 preloaded recipes (Engadget 2010) Paris – France Product: QooQ Meal Planner & shopping list Subscription:12.95 per month Access to over 2000 recipes by well know chefs via Wi-Fi Price: €350 (Q00Q 2010). 8” screen. 48 cooking instructional videos from Chef Belling Merseyside – UK Product: Brian Turner Belling Digital Remote Control Mediachef Acts as a general media player, calendar and Photo frame (Belling 2010) Price: £170 (Engadegt 2010). 32 2010 5.3 Key Ingredients Key Ingredients may react to our introduction of CookiFI by utilising the following methods; Lower the price of myDemy to compete with us and try undercutting us. Introduce the next generation of myDemy, for instance, updating their software and design. Key ingredients will not deploy a strategy to react to our market entry. Brand extension: add to their portfolio by introducing a new range of digital kitchen appliances. 5.4 iPad, iPhone and iTouch Apps Apple has sold around 75 million iPhones and iPod touches combined (MacDaily News 2010). Since the iPad was launched in early April 2010, more than a million have been sold. The different GB‟s of iPad range is priced from €499 to €799 and with a contract; it is priced at €199(Fnac 2010). 5.5 Apple Downloads Timeline Since the inception of Apple Store in July 2008, Apple has announced that the app store has officially broken 3 billion downloads in January 2010 and it has happened in less than 18 months (Tuaw 2010). Figure 10: Apple Downloads Timeline (Source: Fortune 2009 and Tuaw 2010) 33 2010 5.6 iPad, iPhone & iTouch Apps and Websites Company Company Product/ Location Service Offers to Consumers Website: 155th most popular website in France and daily visitors to Marmiton 3,625 (Alexa 2010). 50, 282, 331, 015 reviews and recipes Categorised into; Recipes Practice Food Website Magazine & Apple App A community for users to interact Personal space (Marmiton 2010) Marmiton France iPhone etc. App: Recalls the Marmiton website Shopping list & management of recipes Price: €2.99 (iTunes 2010) Website: Owned by Conde Net magazine group (Conde Net 2010). Provides tips and articles on: Epicurious New York – Food website USA and Apple App Cooking Wine Cocktails (BloomBerg Business Week 2010) Recipes categorized; Quick and easy, Healthy, season cooking, International Cooking (Epicurious 2010). App: 100,000 recipes, menus, food guides Recipe box 34 2010 Shopping List Downloaded: 1.6 Million times (Apple 2010) Price: $2.99 (iTunes 2010) Website: categorised into 1.Food website Recipes Software Videos Q&A Community Store. Recipes divided into appetisers, breakfast 2.Cookbook Big Oven Seattle - USA and recipe Software and lunch, main dish etc. (Big Oven 2010) Software: Recipe boxes include 160,000 recipes & 55,000 cooks. 6 recipe boxes include crock-pot, grains, 3.Apple App lo-crab, mixed drinks, standard & weight watchers. App: User generated collection 170,000 recipes. Price: iPhone Free & iPad: $9.99 (iTunes 2010) 35 2010 5.7 Nintendo DS Lites Company Company Location Service Offers to Consumers Recipes from: different regions, difficulty level, course or even ingredients. Nintendo: Elle a table cooking game France Game which Voice Recognition: has a built in allows a users microphone to navigate recipes. to create their Camera: a user can take pictures of own menu their meals from 1000 Shopping Lists: bring to recipes supermarket to mark of your list Nutritional information: check nutritional benefits of foods items in the recipe (Nintendo 2010). 36 2010 6 Market Analysis 6.1 SWOT Analysis Internal Strengths Weaknesses Durability of the device Similar product aspect: Broad market Specifically made for the kitchen for dietary and health devices Manage cooking lifestyle Competition is intense as competitors Cooking is gaining popularity are coming up with new ways to Stylish device to be placed within the market Other similar applications: not limited kitchen Market opportunity to market as a gift to one device idea Market for calorie count/weight watchers (Users who are concerned about their weight) Device acts as a reminder to keep to healthy lifestyle External Opportunities Take advantage of growing market for weight watchers/dietary products. Expansion into complementary products, for instance, creation of Threats Threat of new competition: thanks to the popularity of iPhone etc. Complementary iPad accessories to protect in the kitchen applications to be downloaded for the Web technologies device Intensive competition from different Rapidly growing touchscreen technology market and consumers are adapting to new technologies. Extensive scope for CookiFI market dietary/cooking applications and devices. Evolvement of Smart technology within the kitchen e.g. Smart Fridge. to improve the quality of life at an affordable price for the mass market. 37 2010 6.2 PEST Analysis Political Stable democratic government. Influenced by past „dirigisme‟ policies CNA-alimentation (National French Food Council): advisory body on nutritional requirements, food safety and quality food. France's Small Business Administration: to provide assistance and financial support to French SMEs EU Healthy Campaign – an initiative Economic France Weathered the economic downturn In 2008, Frances GDP was $2.85 trillion (WorldBank 2010). Swiss economy: will pick up in 2010. & 3.8% unemployment rate (Swissinfo 2010). Belgian economy: unemployment rate at 8.60 (TradingEconomics 2010). to promote healthy lifestyle and balanced lifestyle, campaign called “Eat it, Drink it and Move it” (Europa 2009). Social Technological French women worried about their weight & 62% want to control their weight (Euromonitor 2010). Their ideal weight was lower than other western European women's ideals. Exaggerate their weight and consider themselves fatter than they are Explosion of touchscreen technology Designers are exploring possibility of further development & creative license to blend technology to any physical environment As smart phones grow in popularity and applications stores become the focus (Gartner 2010). (Guardian 2009). Belgians and Swiss: worried and pre occupied with weight(Publmed 2008) 38 2010 6.3 Market Trends 6.3.1 Food Blogging Foodies in Europe, like consumers everywhere, have shifted large parts of their lives online. Euromonitor International data shows that there were 1.8 billion global internet users in 2009, of which 309 million were in Western and 115 million in Eastern Europe. Blogging has become a way of self-expression, with food blogs among the most popular. These blogs are mainly by and for food lovers, passionate about cooking, eating and sharing the experience. (Euromonitor 2010). 6.3.2 Touchscreen Technology Thanks to the success of the iPhone, touchscreen technology will continue to see explosive growth over the next few years (Cult of Mac 2009). Figure 11: Touchscreen Module Revenue Forecast (Source: Display Research Touch Market Report 2009, (Cult of Mac 2009)) A DisplaySearch 2009 Touch Market analysis report estimates that the touch screen market will triple in the next few years, growing from $3.6 billion to $9 billion in 2015. The report 39 2010 comments on with the success of the iPhone, the touch market has entered a dramatic new growth phase (Cult of Mac 2009). 6.3.3 Weight Management Market According to BioWorld‟s Obesity Report 2010, the weight management market, depending on which products, procedures or services are included, is valued in a range of $1.4 billion, which represents the current drug market, to $550 billion and the trend will continue (BioWorld 2010). Figure 12: Market for the Prescription Obesity Drugs, 2007-2017 (Source: Bioworld research 2010) 6.4 Market Share We are basing our market share on the assumption of the estimated number of 805,000 of iPads that will be sold in France in 2010(Techblog 2010); the company will take a 10% of market share and base this percentage in the market of cooking lifestyle management devices. 6.5 Market Segmentation CookiFI market is segmented into three potential markets in which the organisation can penetrate: France Switzerland Belgium 40 2010 French Market Swiss Market Belgian Market Population: French 64,667,000 population: 152,469 3,335,517 (Kwintesssential (French-at-a-Touch 2010). Middle and Upper Class: 6,959,000 Speakers French Speakers population: 2010) (National Institute of Statistics and the study of economics 2010) 6.6 Target Market CookiFI is basing on the assumption that our segmented markets include people at different stages in the lifecycle which therefore will need CookiFI for different purposes (Baines et al, 2008). CookiFI main target group is between the age group of 18-60 within the following target markets. Health Conscious Overweight Customers Customers Beginner Cooks Managing cooking lifestyles 1. Concerned with 1. Monitor & gain 1. Eager to learn 1. Busy & hectic their health & diet control over their 2. Need a device to lifestyles 2. Monitor & Control weight teach them 2. Home & Family weight 2. Monitor eating 3. A device to store cooking values 3. Knowledge of the habits beginner recipes 3. Prepare meals around link between health 3. Help with the family and diet nutritional advice 4. A device in the kitchen to manage their cooking requirements 41 2010 6.7 Health Conscious and Overweight Customers Consumers have recognised the importance of a balanced and a healthy lifestyle. They aim to eat healthily and avoid certain food groups to maintain their health as well as keep control of their weight. Many consumers are looking for ways to lose weight and watch what they eat. However, there is the other spectrum of overweight people who want to control and watch what they consume. French Overweight French Clinically Obese Women Men Women Men 26% 38.5% 15.1% 13.9% Source: Daily Finances 2009 Consumers are developing an unhealthy obsession with slim figures because of the media and fashion industry image of what is termed “socially accepted skinny”. Thus, this obsession will also generate interest in our product (Euromonitor 2010). CookiFI aims target users who are overweight and conscious about their health and want to control their weight. Belgium Switzerland Overweight Obesity 40% 11.7%(2006) 29.7% 9.7% OECD 2009 and Euromonitor 2010 6.8 Mother’s who want to manage their meals around their children According to Euromonitor 2010, women tend to eat more healthily; however, those with children must arrange their cooking lifestyle i.e. preparing meals and food choices around their children. 42 2010 Children aged 11-15 years who are overweight and obese who are involved in weight reduction behaviour 2005-2006 10.5% France 10.5% Belgium 8.2% Switzerland Source: OECD Health at a Glance 2009 6.9 Beginner Cooks A beginner cook, who is apprehensive about cooking and needs a device that manages their first tentative steps into the cooking foray, and are eager to learn how to cook. 43 2010 7 Market Research 7.1 Primary Research In order to effectively understand our users and their specific needs, as an organisation, we believe that the most comprehensive form of procuring relevant market research was to conduct semi-structured interviews with our primary target group: Typical Users – as outlined from our segmented market Our topics included procuring research: Cooking habits and thoughts Comfortable with using a digital touch screen device Features on the device Pricing of the device Use of other Cooking applications On-line sharing and creating recipes Internet recipes Nutritional Advice iPad Different Cooking styles among different nationalities 7.2 Findings from Interviews From our primary research, the organisation found the following information which we took on board for the design, features and pricing of CookiFI. 44 2010 Cooking Cooking allows something Manage and cook what a user Family Cooking/Values different wants 15-30 preparing meals Cooking meals 2-3 hours a Time to cook difficult recipes day Cooking = Good lifestyle Busy Lifestyle Intermediate Experience Cooking at home due to less Modifies recipes money Target/Comfortable using the device Place on countertop for ease Become a part of the kitchen Family Cooking Comfortable using a device Likes new technology Age to use to device: 20+ like CookiFI Price: €150 – cost main Become a part of the kitchen influencer in buying the device Features on the Device Recipes Different styles of cooking Text instructions - allows a (Nationalities) user to cook at their own pace Device speaks Different design colours Nutritional Advice Meal planner Famous Chef Endorsement On-line sharing/Printing recipes Sometimes print recipes Sharing recipes not as important Competitors Weaknesses iPad too small for recipes Afraid to break the device 45 2010 7.3 End User Survey Results In order to measure the same topics as our interview questions above, we conducted a survey using http://www.surveymonkey.com. Our respondents included our target markets and other nationalities. We received approximately 133 responses. The main goal of this survey was to see the viability of CookiFI and how much users would be willing to pay for our device. 7.3.1 Survey Results and Analysis Out of 133 respondents who answered our survey the majority were male. The ratio was 55.6% male and 44.4% female. The age group the product is aimed at is 18-60 year, the main age group that responded to our survey was between the ages of 18 -25 (27.10%) and 26 to 35 (58.6%). 14.30% of the feedback is made up of over 35 year olds but their contribution was significantly smaller. We also inquired into the idea of this product being a gift and if the respondents thought it would make a good gift idea. To Would you buy one as a gift? 64,00% the question, would they buy a digital 36% cookbook as a gift 64% of the respondents said yes, they would and 36% said they would not. Yes No Figure 13: Customers buying a digital cookbook as a gift 46 2010 The respondents were also asked if they would buy a multifunctional digital cookbook for themselves to help them with their every day cooking tasks. The majority Would you buy a multifunctional digital cookbook? 62,20% of the respondents, 62.2%, disagreed, saying that they would not buy such a device for 37,80% themselves, however, we still have a sizeable 37.8% said that they would. No Yes Figure 14: Customers buying a digital cookbook for themselves 7.4 Secondary Research When determining the viability of CookiFI digital cookbook, our organisation conducted both primary and secondary market research. Our secondary market research relates to procuring Euro Monitor studies on the following facts; Our target markets eating habits Expenditure on food Disposable Income Food preferences 47 2010 7.4.1 Our Customer Sector Consumer Expenditure on Food €mn 2004 2005 2006 2007 2008 2009 17767.7 18100.6 19060.2 19672.9 20399.9 19865.9 Switzerland 25696.6 25726.3 26991.8 26991.8 27906.1 28011 134680.4 135036.3 2008 2009 188109.4 197264.7 207228 203400.4 314933 326592.1 339336.4 343207.8 125320.9 128770.5 134680.4 135036.3 Belgium (CHF) France 120648.1 122563.5 125320.9 128770.5 Source: Euromonitor 2010 Annual Disposable Income mn 2004 Belgium 2005 171988.5 177605.9 Switzerland 292162.3 298348.5 2006 2007 (CHF) France 120648.1 122563.5 Source: Euromonitor 2010 7.4.2 France 7.4.2.1 Eating Habits Women tend to eat more healthily, but those with children must arrange their meal time and food choices around their children. The French have been enamoured by the trend of staying in their home to entertain guests. French people have always spent around 2-3 times more money on their household than other countries. They also view a home as a private and comfortable space far from the pressures of work and city life. This idea was even more present at the end of 2007 due to negative 48 2010 financial and economic conditions. Consumer guides are extremely popular in France and most French people would not dream of buying furniture or electrical appliances without reading up on them first (Euromonitor 2010). 7.4.2.2 Shopping Habits According to INSEE 2005, the French rely on supermarkets for 60% of their food purchases and on specialised stores for 50% of their electrical appliances. The French will not buy a TV or a fridge on the internet and prefer going to the shop and having a direct look at what is on offer. The French like touching items and asking questions about them. They are not impulse buyers (Euromonitor 2010). According to Zebulon website, 7% of French households possess a digital frame in October 2008 as opposed to 3% of French households having one in October 2007. 7.4.3 Belgium 7.4.3.1 Eating Habits A Euromonitor study reveals that around 45.5% of Belgian households earned between US$32,000 and US$60,000 in 2007. Excellent food is a Belgian hallmark and Belgian consumers want to have a variety of fresh products from which to choose. With the growing concern for health and wellness, Belgian consumers also want to have a wide choice of healthy foods and ingredients. Additionally, innovation in the sector of cooking appliances could benefit from the health and wellness trend (Euromonitor 2010). 49 2010 7.4.3.2 Shopping Habits In the case of domestic electrical appliances, the market is mainly one of replacement. A household will replace a deficient or outdated refrigerator, for instance. Overall, consumer demand will become more focused on healthy food. According to a recent study by the Belgian retailer, Delhaize, Belgians also enjoy cooking (Euromonitor 2010). 7.4.4 Switzerland 7.4.4.1 Eating Habits Cooking habits in Switzerland differ from age group to age group and from region to region. The Italian Swiss, for instance, have very different cooking habits than the Swiss Germans. The Italian Swiss tend to spend much more time preparing and eating meals and most meal prepared have a heavy Italian influence (Euromonitor 2010). 7.4.4.2 Shopping Habits During the review period, expenditure on household goods and services in Switzerland increased by nearly 8%, reaching CHF 13.5 billion in 2008. Expenditure on household appliances grew by nearly 17% during the review period, reaching nearly CHF 2 billion in 2008 (Euromonitor 2010). 50 2010 8 Marketing Strategy Our marketing strategy will encapsulate traditional, digital media and social media marketing. We will differentiate CookiFI by employing a market strategy consisting of the association of CookiFI as a kitchen appliance. The strategy will focus on the managing users cooking lifestyle if it is for a health conscious user, a mother who wants to manage their cooking lifestyle or even a beginner cook. 4 P’s of Marketing Product CookiFI Place Retail Stores Electrical Stores Price €200 Promotion Websites Digital Media Blogs Figure 15: Porter's Five Forces 8.1 Product Since we are a start-up organisation we must establish our brand name encompassing the association of the image “the number one cooking management device”. Our organisation 51 2010 will rely on the brand of our product CookiFI which will create an image of our company that will become instant recognisable. Both the product and our company brand image go hand in hand. CookiFI is designed specifically for the kitchen and CookiFI‟s vision encompasses CookiFI becoming the “IT” kitchen appliance to have in the kitchen on display. Our packaging will be designed so it bores the trademark of CookiFI. The packaging of the product should elicit instant recognition between the company and the brand CookiFI. We have to create a product placement which can overcome the physical noise of competitive advertising. Since we are a start-up, our main goal is to create a positive association with CookiFI and our company, thus creating elements of brand loyalty (Groucutt et al, 2004). We will have an after sales support to tend to any customers in relation to product satisfaction, repairs etc. If a consumer wants to return a CookiFI to be repaired or return, the protocol will follow: A consumer will return the CookiFI to the place of purchase. Customer is informed of standard repair times. Retail shop returns CookiFI to be repaired to France. Our support team will be located within France to deal with customer queries through the forms of; Email Fax 52 2010 8.2 Pricing Model • Based on prices of: CookiFI: €200 CookiFI (Retail Value) • MyDemy: Touchscreen digital cookbook $200 • iPad: 16GB: €499 • Amazon Kindle: $189 • Price of what the market is willing to pay for CookiFI • Based on prices of: Add on Bundles: €5 (Avg price) • Based on iPad, iPhone and iTouch cooking applications • Price of what the market is willing to pay for CookiFI Figure 16: CookiFI Pricing Model 8.3 Distribution CookiFI has identified potential distribution routes where CookiFI can be distributed to: France Switzerland Belgium Fnac Fnac Amazon Amazon Amazon Unigro Carrefour Vanden Borre Boulanger Darty Galeries La Fayette 53 2010 8.4 Differentiated Target Approach The organisation recognises the importance of a differentiated approach to our segment markets because each target is attractive to our organisation. Therefore separate market strategies are developed for each segment (Baines et al, 2008). 8.5 Promotion For the adoption of CookiFI touchscreen digital cookbook it is imperative that we publicise the benefits of using this technology. Our promotional strategy will entail capturing the very essence of CookiFI and the three particular benefits associated in order to promote our product to our target markets; Calorie Count Recipe Manager Meal Planner 8.6 Celebrity Chef Endorsement We have identified possible candidates for CookiFI‟s French celebrity chef endorsement such as: Alain Ducasse Paul Bocuse Joel Rubuchon Cyril Lignac 54 2010 The celebrity chef will inspire confidence in the beginner cook as they will feel that they are learning from the best with our video demonstrators and recipes. Health conscious user will appreciate healthy recipes endorsed by our famous chef. 8.7 Websites and Blogs 8.7.1 Le Journal du Geek A French blog dedicated to high tech angles. CookiFI will be tested by the contributors of this blog in terms of design, features and usability. The company believes that once we receive positive feedback on the design, users will feel that the technology will be able to manage their cooking lifestyle. We feel that this would be the perfect opportunity to showcase CookiFI as a technological product and the advantages reaped from using this technology in terms of nutritional advice, recipe manager etc (Le Journal du Geek 2010) 8.7.2 Commercial Opportunity We will cooperate with this blog and offer them CookiFI to test. Blogs offer a unique opportunity for crowd sourcing, an activity that will have CookiFI with consumers of the blog to promote CookiFI , pick up trends and relate them to the blogosphere (Euromonitor 2010). This will give CookiFI the opportunity to build a bridge to our potential customers. A future option to consider would be to sponsor a food blog, gaining us a valuable association between a food blog and how CookiFI manages a user‟s cooking lifestyle. 55 2010 8.8 Cuisine TV An avenue to consider is entering into a partnership on the web with Cuisine TV. This partnership could follow into benefits such as reaping an astronomical number of visitors to the website thus gain much needed coverage and grow our customer base (Cuisine TV 2010). Another possible avenue to explore is to be featured on Cuisine TV on one of the variety of programmes in particular, Cuisine TV Boutique (Cuisine TV 2010). 8.9 Strategic Partnerships 8.9.1 Mangerbouger Mangerbouger is a French nutritional website. Our goal is to see the likelihood of an affiliation between CookiFI and Mangerbouger. They promote healthy eating in France and provide nutritional advice (Managerbouger 2010). They could promote our product on their website and highlight the benefits of using CookiFI to monitor user‟s nutritional needs and to see exactly what they are eating, in particular, target our health conscious and obese target markets. 8.10 Our own Website CookiFI The best form of marketing lies within our own website to promote promotional activities focusing on CookiFI and the company itself. A section of the website will be dedicated on features of the product to inform users and potential users of the benefits gained from each feature. Images of CookiFI will be uploaded on to the website so potential users can view our product. For instance, pictures of CookiFI displayed on a kitchen countertop creating the association of the hub of cooking. 56 2010 8.11 ‘Que Choisir en Ligne’ Website and Magazine Que Choisir is published on-line by the UFC-Que Choisir, a non profit organisation established in 1951by the Dean of Consumer Associations in Western Europe. Each month, Que Choisir conducts a series of investigations into products and services in terms of value of money, cost effectiveness etc. There are more than 450,000 subscribers, each month over four and a half million readers are informed (Que Choisir 2010). CookiFI is in firm belief that a glowing review of our product will boast sales and create a positive image of our product for consumers if the review is in their magazine or on-line. 8.12 Social Media Marketing Social Media is exploding at an exponential rate. Our marketing strategy will encapsulate that using social media isn‟t so much about gaining business but establishing CookiFI as a „real person‟ with potential users. The goal of our social media campaign will be to educate our targeted market about our product and to build brand awareness. At the helm of our social media campaign, the company will use Tweetdeck to manage all our social media sites. Numerous social media campaigns running simultaneously are crucial for our success in relation to generating awareness of our product. The two key social media marketing platforms that the company will utilise are: Facebook Twitter 57 2010 These social media sites will provide relationships with our users as users can connect with other users and most importantly, the company. 8.12.1 Facebook We are choosing Facebook as our main social media site because according to Alexa 2010, Facebook is the second top site in France, Belgium and Switzerland. Facebook is also ranked number two in Alexa World Traffic Rank. According to Facebook 2010, Facebook has more than 400 million active users with 50% of their users logging onto Facebook regularly on any given day. A typical user has on average 130 friends. Facebook has 70 translations available and 70% of its users are outside the United States. Facebook Users: France 30,00% 27,80% 27,50% 25,00% 20,00% 15,00% 7,50% 10,00% 3,70% 5,00% 0,00% 18-24 25-34 25-54 55-64 Figure 17 Facebook Users – France (Source: CheckFacebook 2010) 58 2010 Facebook Users: Belgium 30,00% 27,10% 25,10% 25,00% 20,00% 16,80% 15,00% 9,90% 10,00% 4,60% 5,00% 0,00% 18-24 25-34 35-44 45-54 55-64 Figure 18 Facebook Users – Belgium (Source: CheckFacebook 2010) Facebook users: Switzerland 29,50% 30,00% 26,10% 25,00% 20,00% 16,50% 15,00% 8,40% 10,00% 3,10% 5,00% 0,00% 18-24 25-34 35-44 45-54 55-64 Figure 19 Facebook Users – Switzerland (Source: CheckFacebook 2010) The basic premise of our Facebook campaign that will help to simplify the CookiFI brand on Facebook: 1. Build 2. Get Fans 59 2010 3. User Generated Content 4. Filter through news feed – users are allowing CookiFI into directly to their lives 5. Audience equals sales We have to be honest with our audience about who we are and what we are doing. This is in relation to the fact that our audience will find out when we are not. We plan on taking a long term view over a 1 – 2 year period and monitoring the popularity of emerging new social media sites and assessing the benefits of joining such sites. 8.12.2 Facebook Advertising CookiFI will also consider Facebook Advertising in order to reach our target audience and connect with customers. We will advertise our own website in order to generate sales and inform if we are showcasing at specific tradeshows. Our ads will target specifically to our target audience and we will upload an image of our brand name in order to create a connection between our brand and our product (Facebook 2010). 8.12.3 Twitter We have segmented our target audience into a target market between the ages of 18 and 60. Each day, we will schedule between 6-8 tweets per day in order to build momentum over the brand. It is imperative that we follow relevant followers that are target users: People who love to cook Housewives Chefs Dieticians Cooking channels 60 2010 Famous Chefs Bloggers Home Magazines CookiFI it will directly follow these target users in hope that in return they will follow CookiFI. We will use relevant keywords such as our brand, endorsement from chefs, keywords from our website, to describe CookiFI. The next step will be to send direct messaging to followers especially loading videos and images of users using the product (Twitter 2010). 8.13 Google AdWords CookiFI will advertise with Google AdWords because we can connect with potential customers when they are searching for products or services online. We only pay when people click on our ads. According to Alexa 2010, http://www.google.com is ranked the number one site on the web. CookiFI will also have a Google Analytics account in order to optimise our website popularity. This will allow us to: 1. Add high quality referral sites to placement target: a referring site report will highlight the referral sites that drove traffic. 2. Find high performing keywords to add to our campaigns: a keyword report is generated which can be used to expand our campaigns and capture additional traffic on new keywords (Google Support 2010) (Please see Appendices for: Social Media Marketing Report). 61 2010 8.14 Endorsement from Google For marketing purpose, our organisation will enquire into the likelihood of an endorsement from Google because CookiFI operates on Android, free open source software derived from Google. This endorsement will be crucial as the Google brand is well known across the globe. If permission is granted, we will request permission from Google to use any of their Google trademarks where Google grants us a non-transferable, royalty free limited license to use to the Google‟s brand (Google 2010) 8.15 Offline Campaign Our offline campaign will entail the effective promotion of our product in electronic stores situated in France, Switzerland and Belgium. Our in-store promotion will be seen by our target groups when they visit the retail stores. Our campaign‟s next point of entry will revolve around targeting these electronic stores such as FNAC, Trade exhibitionists etc. The most significant aspect is getting our brand out there and highlighting how CookiFI can change the users cooking lifestyle. We plan to set up demonstrations in stores that we distribute to in our segmented markets. French buyers are not impulse buyers and prefer to touch items before they purchase (Euromonitor 2010). 8.16 Newspapers and Magazines 8.16.1 Metro Another advertising avenue to explore would entail placing advertisements in Metro newspaper. CookiFI feels that since the newspaper is free and has a daily audience rate of 885,050 (Metro 2010). CookiFI will be advertised to a sizeable portion of our target audience. 62 2010 8.16.2 Sante Magazine The company believes that the best form of promotion of CookiFI would d entail a review in Sante magazine (Sante Magazine 2010) A review will therefore target our health conscious users who need confirmation from a reputable source that CookiFI will monitor and manage their healthy cooking lifestyle. There is the possibility of advertising by placing an ad in this magazine in order to target specifically our health conscious users. 63 2010 9 Technical Solution 9.1 Technology Roadmap start working on the final product: 1/09/2010 test of the beta on a device, improvements: 11/2010 beta version of the software ready to be installed on an emulator: end of october 2010 commercial website development: 12/2010 Mobile devices applications development: 12/2010 User website + synchronizing: 01/2011 Ready to launch: mid 02/2010 Figure 20: Technology Roadmap After the launch: Mid 02/2011 mid 03/2011 Management of user queries, first software update (fixing probable bugs of the initial version). Mid 03/2011 mid 06/2011: work on an advanced version of the software Mid 06/2011 end of 2011: start working on a new device, with new features both in hardware and software 01/06/2011 31/09/2011: during the summer, using internship students, create 12 different bundles (one to be released every month) for one year. 10/2011: release first bundle 64 2010 Mid 03/2011 31/05/2011: study culinary habits of new markets (Scandinavian countries) 01/06/2011 31/07/2011: Make the software and recipes translated into the new markets languages 9.2 Overview A traditional question on the technical aspects of our proposition could be “why develop a piece of hardware when there are tablets on the market and when it is possible to develop cooking apps for them?” The answer comes from a quote made by one of the most famous American computer scientist: “People who are really serious about software should make their own hardware” – Alan Kay. Interestingly this quote has been used by Steve Jobs when he introduced the initial iPhone. 9.3 Development of the Product The initial development of the product can be split in to 4+1 parts: 1. The device hardware: defining what the requirement are in order to manufacture the as less expensive as possible device 2. The software on the device: reaching all the functionalities already explained 3. The user website, where users will be able to perform most of the actions they can do on the actual device. 4. Mobile devices (iPhone, Android and Blackberry) applications synchronized with the device for the shopping list and consulting planned meals The plus one part is the commercial website to help prospective consumers to make their choice. The two websites will be probably hosted on the same address (with a login access for users on the main page that will redirect them). 65 2010 9.4 Underlying Technologies For reasons of modularity, free licensing, the important community and the high maturity, we have chosen to use Android as our Operating System. Android is Google mobile OS and is broadly used on mobile phone and is adapted to tablets (Android 2010). To develop the software, we will rely on Java language, which is combined to Android. Also, the software user interface is really important; a great attention should be given to the design. The combination of these tools will enable us to develop a nice user interface with for example vocal commands on the recipes through voice recognition (Java 2010). A key point to reach success for this device will be the development of a community through a dedicated cooking social network. Another point to establish a link between the users and us as a company will be the perpetual development of updates and paid extra bundles (e.g. summer diet bundle). Finally to make the device really competitive, we will rely on third part application to propose other functionalities for the device. For example we will develop ourselves a digital picture frame application and we intend to use the actual Android Market for Facebook, Twitter and web TV‟s apps. 66 2010 10 Finances 10.1 Sales Projections CookiFI‟s market will be based on our assumptions of the number of estimated iPad sales of 805,000 in France in 2010 but also a number of weighted factors such as; Touchscreen technology and appliances for the kitchen popularity Health Conscious customers who want to maintain and control their weight Obesity product market CookiFI will primarily target the French market, French speaking Belgians and French speaking Swiss. After the third year the markets of Norway, Sweden and Finland will be targeted as well. CookiFI will take into account the number of middle to higher class consumers located within our target markets. We hope to create a niche market within the area of health conscious and obesity product markets. This will translate into procuring more sales in Year 2 while taking into account direct and indirect competitors and potential new entrants. The company aims to gain 8% of the managing cooking lifestyle devices industry. 67 2010 10.1.1 Sales Forecast, Year 1 CookiFI Device Sales Year 1 Sales 800 600 400 200 Own Sales/Store 0 1 2 3 4 5 6 7 8 9 10 11 12 Amazon Fulfillment Year 1 Months Figure 21: Year 1 Sales 10.1.2 Sales Forecast, Year 2 CookiFI Device Sales Year 2 Sales 1500 1000 500 Own Sales/Store 0 1 2 3 4 5 6 7 8 9 10 11 12 Amazon Fulfillment Year 2 Months Figure 22: Year 2 Sales 68 2010 10.1.3 Sales Forecast, Year 3 CookiFI Device Sales Year 3 Sales 3000 2000 1000 Own Sales/Store 0 1 2 3 4 5 6 7 8 9 10 11 12 Amazon Fulfillment Year 3 Months Figure 23: Year 3 Sales 69 2010 10.2 Cash Flow Statement Summary, Years 1-3 Cash Flow Statement for the year ending 31st December Year 1 Year 2 Year 3 Inflows Debtors 30 Days 351 680 1 074 016 1 517 120 60 Days 435 240 1 504 344 2 171 640 80 000 - - 1, 000, 000 - - 1 866 920 2 578 360 3 688 760 Fixed Assets 15 650 3 352 1 897 Cost of Sales 1 018 061 1 802 648 2 026 863 Salaries 206 583 267 000 292 000 Payroll Taxes & Benefits 108 456 140 175 153 300 Rent, Rates & Insurance 14 970 14 970 14 970 134 - - Other Office Costs 13 750 19 316 23 131 Professional Fees 30 000 30 000 30 000 Marketing 38 400 38 400 38 400 (32 701) (40 623) (79 527) 1 413 303 2 271 886 2 501 034 Period Inflow/(Outflow) 453 617 306 474 1 187 726 Cumulative Inflow/(Outflow) 453 617 760 091 1 947 817 Initial Investment by Directors Equity Investment from Private Investors Total Outflows Company Registration Bank Interest and Charges Total 70 2010 10.3 Profit and Loss Account Summary, Years 1-3 Profit and Loss Account for year ending 31st December Year 1 Year 2 Year 3 Revenues CookiFI Device 1 048 000 2 837 440 3 912 800 Add-on Pack 1 6 300 20 700 38 700 Add-on Pack 2 2 700 20 700 38 700 1 057 000 2 878 840 3 990 200 1 018 061 1 802 648 2 026 863 1 018 061 1 802 648 2 026 863 38 939 1 076 192 1 963 337 Cost of Sales Gross Profit Gross Margin 4% 37% 49% Expenditure Salaries 206 583 267 000 292 000 Payroll Taxes & Benefits 108 456 140 175 153 300 315 040 407 175 445 300 14 970 14 970 14 970 134 - - Other Office Costs 13 750 19 316 23 131 Prfessional Fees 30 000 30 000 30 000 Marketing 38 400 38 400 38 400 3 976 3 494 4 177 Bank Interest and Charges (32 701) (40 623) (79 527) Total 383 568 472 732 476 451 (344 629) 603 460 1 486 886 199 142 490 672 59 689 1 255 045 Rent, Rates and Insurance Company & Domain Name Registration Depreciation Net Profit/(Loss) Corporation Taxes Cumulative Profit/(Loss) (344 629) 71 2010 10.4 Balance Sheet Summary, Years 1-3 Balance Sheet as at 31st December Year 1 Year 2 Year 3 Fixed Assets - Hardware and Software 11 221 11 221 12 458 - Office Equipment 4 429 4 429 5 089 - Accum. Depreciation 3 976 7 469 11 647 11 674 8 180 5 900 - Debtors 270 080 570 560 872 000 - Inventory 349 140 63 788 101 107 - - - 619 220 634 348 973 107 349 140 63 788 101 107 (453 617) (760 091) (1 947 817) (104 477) (696 303) (1 846 710) 723 697 1 330 651 2 819 817 - Net Book Value Current Assets - Cash at Bank Creditors (Due within 1 yr.) - Payables to device supplier - Bank Overdraft/Interest Net Current Assets/(Liabilities) Total Assets 735 371 1 338 831 2 825 717 Equity - Initial Investment by Directors 80 000 80 000 80 000 - Equity Investment from Private Investors 1, 000, 000 1, 000, 000 1, 000, 000 - Profit and Loss A/C (344 629) 258 831 1 745 717 735 371 1 338 831 2 825 717 72 2010 10.5 Funding requirements Funding Requirements Management and Board €80,000 External Investors €1,000,000 AIB Bank Loan @ 4.15% €100,000 The initial investment will encapsulate €20,000 from each director, calculating at €80,000 through personal funds, family and friends. CookiFI will look for funding to be raised through a venture capitalist or a syndicate of business angels. We are estimating the amount of funds that need to be raised will be €1,000,000. We will enter into a negotiation with the selected venture capitalist in terms of the capital. According to IVCA 2010, 15% of start up companies receives venture capital each year. This will be explored in the first year of operation. However, it also must be noted that we are assuming the possibility of extra funding that will need to be obtained through: Business Loan Grants 73 2010 11 Appendices 11.1 Key Resumes Has a master in telecom engineering from Telecom SudParis, French leading telecommunications school. Has a specialization in financial and industrial risks. Has also studied law, economy, strategy, marketing, management. Matthieu Jeremy Vincent Has a degree in applied mathematics in advanced (CEO) probabilities. Currently finishing a master in e-commerce (technical) in DCU. Has some experiences in leading informatics projects and has a network resource allocation manager experience in France Telecom. Formerly a Quality Assurance Engineer at Skype, responsible for ensuring the quality of the client before release. A champion in the company in leading the accessibility issues and making the product friendlier to disabled people. Also responsible for issue management and acted as a right hand to release management to ensure the information flow between business and development Grete Napits (CIO) sides. Prior to this, was part of service management team at Swedbank, biggest bank in the Scandinavia, providing reports to involved parties in SQL for better understanding of customer behaviour and suggested offers. Grete also has a M.Sc. in Business Information Technology from Tallinn Technical University, Estonia. Currently doing a M.Sc. in Electronic Commerce (Business) in Dublin City University, Ireland. Previously a Processing Administrator, Payments Anne Marie Knox (Head of Administrator and International Accounts Administrator at Marketing) Ulster Bank, responsible for interacting between various departments and ensuring the accurate execution of 74 2010 different sector transactions. She also was in close contact with the customers to provide best customer care in regards to their accounts. She has also acted as a Mortgage Officer at Ulster Bank, liaising with different internal departments as well as solicitors as part of her responsibilities. Currently acquiring a M.Sc. degree in Electronic Commerce (Business) at Dublin City University, Ireland. Previously held positions with Dublin City Business Improvement District (Dublin 2) and Irish Greyhound Board where he has mainly dealt with customer relations Patrick Keenan (CFO) issues. Currently acquiring a M.Sc. degree in Electronic Commerce (Business) at Dublin City University, Ireland. 11.1.1 Team Strengths and Weaknesses Strengths Matthieu Vincent Capability to work in team in an Weaknesses Though coming from a international environment technical background, High-level background from French no specific knowledge leading engineering “Grande École” in “one” field in the field of the Can be too directive telecommunications. Knowledge in and not always able to computing applications, pure science, listen to other people finance and entrepreneurship opinions Quick learner in many fields Some experiences as a team leader in business planning completions and Can be too passionate about a project Can be harsh with other technical projects. Able to lead people who don‟t meet a project and to put people “on the his level of expectations rails” 75 2010 Known to be creative, imaginative and passionate Love cooking which is a plus for the project Grete Napits Strong capability of working with databases. She brings to the team knowledge of creating SQL queries skills. and the ability to create relational databases. No strong programming Lacking in detailed business knowledge. Impatient at times, Strong report creating skills. wanting to get started Strong technical writing skills as a rather than mull over all result of working in the area of the details. software development. Not a good idea Excellent communication and generator but rather networking skills. sees herself as the Good teamwork skills as a result of person to elaborate on working in teams throughout her an idea. professional and academic life. Fast learner with the ability of picking up things fast. High stress tolerance and ability to keep cool under stressful situations. Anne Marie Knox Digital marketing skills – social Lack of technical skills media for marketing, Google Weak financial skills AdWords, Good research skills, both qualitative and quantitative. Exceptional presentation skills and vast experience in delivering verbal presentations to large audiences. Excellent interpersonal skills and 76 2010 networking skills Extremely diligent and meticulous, with firm attention to detail. Creative, with the ability to come up with new ideas. Patrick Keenan Extensive experience and interest in cooking, food preparation and agriculture Imaginative – ability to create new No relevant experience in programming Little experience in new product development ideas/solutions High level IT competency Financial background – Corporate finance, investment analysis, accounting 11.2 Project Management In order to determine how our practicum project was managed, the first step was to review and assess the competencies of each team member and discuss suitable project roles. As a team, we felt that we had to improve our project management skills and we reviewed the website https//www.prince2.com to inform us how to successfully manage a project and succeed in our Practicum. We also reviewed previous projects team failures in order to learn from our mistakes, for instance, ensuring that every team member has a equal say and assigning roles based on our capabilities. 11.2.1 Matthieu Vincent The team felt that Matthieu was best suited for the role of CEO as the idea originated from him and he was passionate about the product. In terms of his background, he was most suitable to conduct the technical implementation of the software on the emulator and the design of the website and to write up on the technical report. 77 2010 11.2.2 Grete Napits The team agreed that Grete was suitable for the role of CIO due to her extensive academic and work background that she would play a pivotal role in design and testing of software. We assigned her the role of to editing and formatting the final document. 11.2.3 Anne Marie Knox Our Team believed that Anne Marie was suited to the role of Head of Marketing due to her academic experience and her enthusiasm to market CookiFI. She led the market research aspect of the project. Her other role consisted of editing and reviewing the final document. She also drew up social media marketing and sales plan in order show how CookiFI will reach our target markets. 11.2.4 Patrick Keenan We felt that Patricks was most suited for the role of finances due to his background in finance and business. He undertook the role of accounting and balancing our accounts. 11.2.5 Meetings We held weekly team meetings and the minutes of each meeting were taken. As a team, we felt that each week we could review previous minutes of meetings in order to view work completed and to see our progress. Communication was the key to our creativity in terms of design of CookiFI and where we see our business situated within the market. Our main goal was to re define the Cooking management device industry and set standards accordingly. 11.2.6 Set up Google Sites Google sites account was set up to allow for easy access of information and to use their forums for discussions to bounce around ideas and to keep track on work already completed. 78 2010 11.3 Reasons for setting up in France 11.3.1 Doing Business in France Facts Rank Doing Business 2010 Ease of Doing Business 31 Starting a Business 22 Dealing with Construction Permits 17 Employing Workers 155 Registering Property 159 Getting Credit 43 Protecting Investors 73 Paying Taxes 59 Trading Across Borders 25 Enforcing Contracts 6 Closing a Business 42 Source: Doing business 2010 11.3.2 Summary of Indicators- France Starting a Business Procedures (number) 5 Time (days) 7 Cost (% of income per 0.9 capita) Dealing with Construction Procedures (number) 13 Permits Time (days) 137 Cost (% of income per 22.9 capita) Employing Workers Difficulty of hiring index (0- 67 100) Rigidity of hours index (0- 60 100) Difficulty of redundancy 30 index (0-10) 79 2010 Rigidity of employment 52 index (0-100) Redundancy costs (weeks of 32 salary) Registering Property Getting Credit Procedures (number) 8 Time (days) 98 Cost (% of property value) 6.1 Extent of disclosure index (0- 10 10) Extent of director liability 1 index (0-10) Ease of shareholder suits 5 index (0-10) Strength of investor 5.3 protection index (0-10) Paying Taxes Payments (number per year) 7 Time (hours per year) 132 Profit tax (%) 8.2 Labor tax and contributions 51.7 (%) Trading Across Borders Documents to export 2 (number) Time to export (days) 9 Cost to export (US$ per 1078 container) Documents to import 2 (number) Time to import (days) 11 Cost to import (US$ per container) 1248 80 2010 Enforcing Contracts Closing a Business Procedures (number) 29 Time (days) 331 Cost (% of claim) 17.4 Recovery rate (cents on the 44.7 dollar) Time (years) 1.9 Cost (% of estate) 9 Source: Doing business in France 2010 11.4 Notes on Finances 11.4.1 Employees and Wages Hiring all 4 Directors permanently for €20,000 Gross p/a Hiring 1 Graphic Designer permanently at €28,000 Gross p/a Hiring 3 Software Developers permanently at €28,000 Gross p/a Hiring Sales reps/Cust. Support at a wage of €28,000 Gross p/a o First is hired in month 6 o Two more are hired in month 13 o A Fourth is hired in month 25 11.4.2 Professional Fees We will pay €30,000 a year on legal and accounting professionals 11.4.3 Payroll Taxes and Benefits We will estimate to pay an additional 52.5% per employee in payroll taxes and benefits, but aim to enlist the services of a French accountancy professional to reduce this. 81 2010 Family Benefits 5.40% Health and Sickness 13.10% Social Wellfare Levy 0.00% Accident at Work 3.00% Unemployment Benefits 4.40% 9.90% Main Pension Complementary Pension 16.45% Total= 52.5% Source: French Property 2010 11.4.4 Fixed assets Filling Cabinets – HELMER Drawer unit from IKEA for €29 o Buy 1 filing cabinet in month 1 o Buy 2 filing cabinets in month 13 Desks - MICKE Office Desks from IKEA for €69 o Buy 9 Tables initially o Buy 2 more in month 13 o Buy one more in month 25 Office Shelves – IVAR combination storage from IKEA for €78,50 o Buy one in Month 1 Skype Phones – we will purchase Skype phones priced at €41.40 o Buy 9 initially o Buy two more in month 13 o Buy one more in month 25 Mobile Phones – we will purchase HTC Desire phones from Orange for €49 o 9 phones will be purchased initially o 2 phones will be purchased in month 13 o 1 phone swill be purchased in month 25 82 2010 Fax/Printer/Photocopier – we will purchase a Multi-functional printer/copier/scanner/fax from DELL for €966.37 in month 1 Other Additional Office Equipment o €1500 will be spent in month one for additional equipment o and unforeseen office needs o €500 will be spent in month 13 o €500 will be spent in month 25 Laptops costing €1278 will be purchased from DELL: o We will purchase 2 laptops in Month 1 Desktops costing €1238 will be purchased from DELL: o We will purchase 6 desktops in Month 1 o One more desktop will be purchased in Month 6 o Two further desktops will be purchased in Month 13 o One desktop will be purchased in Month 25 11.4.5 Other Office Costs Telephone & Fax Costs are estimated at €60 per month per employee. These consist of: o A Skype Unlimited world subscription = €9.99 per month per employee o An Orange Origami Star Plus mobile subscription = €50 per month per employee Printing & Stationary costs are estimated at €50 per month per employee Sundries per month per employee are estimated to be €20 per month per employee Google Accounts = €40 per year per employee: o 7 Accounts in Year 1 = €280 /12 = €23.34 o 7 Accounts in Year 2 = €280 /12 = €23.34 o 8 Accounts in Year 3 = €320 /12 = €26.67 11.4.6 Sales Forecasts We release the CookiFI device in Month 3 at a price of €160 We release Recipe Add-on packs for €9 83 2010 Add-on pack 1 will be released in Month 5 (May) Add-on pack 2 will be released in Month 10 (October) We expect sales to rise steadily after release, with spikes around Christmas period as a result of marketing the device as a gift. Cookifi Device Sales 4 000 3 500 3 000 2 500 2 000 Cookifi Device Sales 1 500 1 000 500 1 4 7 10 13 16 19 22 25 28 31 34 Figure 24: CookiFI Device Sales 11.4.7 Rent/Rates and Insurance Storage Space rent:: €560 including taxes and insurance Office rent €550: Offices rates: 15% Offices Insurance: 20% of rent 11.4.8 Marketing Marketing budget is set at €38,400 a year. Online advertising - we will use Google AdWords and Facebook advertising for online marketing. We will spend €8,400 per year. o We will spend €15 a day on Google AdWords advertising, costing €5,040 a year for the first year 84 2010 o We will spend €10 a day on Facebook advertising, costing €3,360 a year for the first year Online competition – we will award a cash prize of €10,000 at the end of each year to the winner of a cookery video YouTube competition Chef endorsement – we will pay €10,000 a year to a popular French chef to publicly endorse our product. Additional marketing expenditure – we will set aside €10,000 a year for additional marketing during each year. 11.4.9 Cost of Sales Orders of CookiFI device in orders of 5,000 units costing €506,048. o We expect the cost of the device to fall by 10% in year 2 & 3 as components become cheaper. Figure 25: Email from Sunsing, our prospective device suppliers Cost of Month Market Units Order Order 1 M1 French 5000 €506,048 Order 2 M7 French 5000 €506,048 10,000 €1,012,096 Year 1 Total 85 2010 Year 2 Order 3 M13 French 5000 €445,443 Order 4 M17 French 5000 €445,443 Order 5 M20 French 5000 €445,443 Order 6 M23 French 5000 €445,443 20,000 €1,821,772 Total Year 3 Order 7 M26 French 5000 €400,899 Order 8 M29 French 5000 €400,899 Order 9 M32 French 5000 €400,899 Order 10 M33 French 5000 €400,899 Order 11 M35 French 5000 €400,899 25,000 €1,603,595 Total Amazon Fulfilment – We will use the Amazon fulfilment program to sell a number of the devices o We will pay for 5,000 devices to be sold by Amazon each year at a cost of €1,491.20 per month Order Handling + Pick & Pack + Weight Handling = Cost of Amazon.co.uk fulfilment We will deliver 5,000 units to the Amazon fulfilment centre in Boigny on Bionne (Orléans) Year 1 - They will receive 5,000 units in Month 9 Year 2 - They will receive 5,000 units in Month 19 Year 3 - They will receive 5,000 units in Month 28 86 2010 Amazon Fulfilment costs for 5,000 units Handling £0 Pick & Pack £11,500 Weight Handling £3,500 Total 15,000 Total per month £1,250 €1,491.20 In Euro @1.19GBP 11.4.10 Other Considerations To limit exchange rate exposure we have organised to pay our supplier in Euro rather than US dollars. Further, as operations in Switzerland are planned to only take place through a French partner there, we will only deal in euro transactions. Company registration will cost €20 and the registration of domain names will cost €114.03 The four directors will contribute a total of €80,000 initially in own savings. Financing of approx €1,000,000 will be required over the first year in order to finance device orders and operations. It is projected that this will cover necessary operation costs until the company begins to make a profit. o To obtain this financing the directors will make presentations to venture capital firms in France and look into various debt options which may be available to us. Registration of company €20 Registration of domain names €114.03 87 2010 11.4.11 Amortisation of loan Principal of AIB Loan: €100,000 Annual Interest Rate: 4.15% Term: 10 years Number of payments: 120 Monthly Payment: €1,019.60 All Interest Payments: €16,335.8 Payment Number Date Beginning Regular Balance Payment Interest Principal Extra Ending Payment Balance 1 01/01/2010 €100,000.00 €1,019.60 345.8333 €673.76 €99,326.24 2 01/02/2010 €99,326.24 €1,019.60 343.5032 €676.09 €98,650.15 3 01/03/2010 €98,650.15 €1,019.60 341.1651 €678.43 €97,971.71 4 01/04/2010 €97,971.71 €1,019.60 338.8188 €680.78 €97,290.94 5 01/05/2010 €97,290.94 €1,019.60 336.4645 €683.13 €96,607.81 6 01/06/2010 €96,607.81 €1,019.60 334.102 €685.49 €95,922.31 7 01/07/2010 €95,922.31 €1,019.60 331.7313 €687.86 €95,234.45 8 01/08/2010 €95,234.45 €1,019.60 329.3525 €690.24 €94,544.21 9 01/09/2010 €94,544.21 €1,019.60 326.9654 €692.63 €93,851.58 10 01/10/2010 €93,851.58 €1,019.60 324.57 €695.03 €93,156.55 11 01/11/2010 €93,156.55 €1,019.60 322.1664 €697.43 €92,459.12 12 01/12/2010 €92,459.12 €1,019.60 319.7545 €699.84 €91,759.28 13 01/01/2011 €91,759.28 €1,019.60 317.3342 €702.26 €91,057.02 14 01/02/2011 €91,057.02 €1,019.60 314.9055 €704.69 €90,352.33 15 01/03/2011 €90,352.33 €1,019.60 312.4685 €707.13 €89,645.20 16 01/04/2011 €89,645.20 €1,019.60 310.023 €709.57 €88,935.63 17 01/05/2011 €88,935.63 €1,019.60 307.5691 €712.03 €88,223.60 18 01/06/2011 €88,223.60 €1,019.60 305.1066 €714.49 €87,509.11 19 01/07/2011 €87,509.11 €1,019.60 302.6357 €716.96 €86,792.15 20 01/08/2011 €86,792.15 €1,019.60 300.1562 €719.44 €86,072.71 21 01/09/2011 €86,072.71 €1,019.60 297.6681 €721.93 €85,350.79 22 01/10/2011 €85,350.79 €1,019.60 295.1715 €724.42 €84,626.36 23 01/11/2011 €84,626.36 €1,019.60 292.6662 €726.93 €83,899.43 88 2010 24 01/12/2011 €83,899.43 €1,019.60 290.1522 €729.44 €83,169.99 25 01/01/2012 €83,169.99 €1,019.60 287.6295 €731.97 €82,438.02 26 01/02/2012 €82,438.02 €1,019.60 285.0982 €734.50 €81,703.53 27 01/03/2012 €81,703.53 €1,019.60 282.558 €737.04 €80,966.49 28 01/04/2012 €80,966.49 €1,019.60 280.0091 €739.59 €80,226.90 29 01/05/2012 €80,226.90 €1,019.60 277.4514 €742.14 €79,484.76 30 01/06/2012 €79,484.76 €1,019.60 274.8848 €744.71 €78,740.05 31 01/07/2012 €78,740.05 €1,019.60 272.3093 €747.29 €77,992.76 32 01/08/2012 €77,992.76 €1,019.60 269.725 €749.87 €77,242.89 33 01/09/2012 €77,242.89 €1,019.60 267.1317 €752.46 €76,490.43 34 01/10/2012 €76,490.43 €1,019.60 264.5294 €755.07 €75,735.36 35 01/11/2012 €75,735.36 €1,019.60 261.9181 €757.68 €74,977.68 36 01/12/2012 €74,977.68 €1,019.60 259.2978 €760.30 €74,217.39 37 01/01/2013 €74,217.39 €1,019.60 256.6685 €762.93 €73,454.46 38 01/02/2013 €73,454.46 €1,019.60 254.03 €765.57 €72,688.89 39 01/03/2013 €72,688.89 €1,019.60 251.3824 €768.21 €71,920.68 40 01/04/2013 €71,920.68 €1,019.60 248.7257 €770.87 €71,149.81 41 01/05/2013 €71,149.81 €1,019.60 246.0598 €773.54 €70,376.27 42 01/06/2013 €70,376.27 €1,019.60 243.3846 €776.21 €69,600.06 43 01/07/2013 €69,600.06 €1,019.60 240.7002 €778.90 €68,821.17 44 01/08/2013 €68,821.17 €1,019.60 238.0065 €781.59 €68,039.58 45 01/09/2013 €68,039.58 €1,019.60 235.3035 €784.29 €67,255.29 46 01/10/2013 €67,255.29 €1,019.60 232.5912 €787.00 €66,468.28 47 01/11/2013 €66,468.28 €1,019.60 229.8695 €789.73 €65,678.56 48 01/12/2013 €65,678.56 €1,019.60 227.1383 €792.46 €64,886.10 49 01/01/2014 €64,886.10 €1,019.60 224.3978 €795.20 €64,090.90 50 01/02/2014 €64,090.90 €1,019.60 221.6477 €797.95 €63,292.95 51 01/03/2014 €63,292.95 €1,019.60 218.8881 €800.71 €62,492.25 52 01/04/2014 €62,492.25 €1,019.60 216.119 €803.48 €61,688.77 53 01/05/2014 €61,688.77 €1,019.60 213.3403 €806.26 €60,882.51 54 01/06/2014 €60,882.51 €1,019.60 210.552 €809.04 €60,073.47 55 01/07/2014 €60,073.47 €1,019.60 207.7541 €811.84 €59,261.63 89 2010 56 01/08/2014 €59,261.63 €1,019.60 204.9465 €814.65 €58,446.98 57 01/09/2014 €58,446.98 €1,019.60 202.1291 €817.47 €57,629.51 58 01/10/2014 €57,629.51 €1,019.60 199.3021 €820.29 €56,809.22 59 01/11/2014 €56,809.22 €1,019.60 196.4652 €823.13 €55,986.09 60 01/12/2014 €55,986.09 €1,019.60 193.6186 €825.98 €55,160.11 61 01/01/2015 €55,160.11 €1,019.60 190.7621 €828.83 €54,331.28 62 01/02/2015 €54,331.28 €1,019.60 187.8957 €831.70 €53,499.58 63 01/03/2015 €53,499.58 €1,019.60 185.0194 €834.58 €52,665.00 64 01/04/2015 €52,665.00 €1,019.60 182.1331 €837.46 €51,827.54 65 01/05/2015 €51,827.54 €1,019.60 179.2369 €840.36 €50,987.18 66 01/06/2015 €50,987.18 €1,019.60 176.3307 €843.26 €50,143.92 67 01/07/2015 €50,143.92 €1,019.60 173.4144 €846.18 €49,297.74 68 01/08/2015 €49,297.74 €1,019.60 170.488 €849.11 €48,448.63 69 01/09/2015 €48,448.63 €1,019.60 167.5515 €852.04 €47,596.58 70 01/10/2015 €47,596.58 €1,019.60 164.6049 €854.99 €46,741.59 71 01/11/2015 €46,741.59 €1,019.60 161.648 €857.95 €45,883.65 72 01/12/2015 €45,883.65 €1,019.60 158.6809 €860.91 €45,022.73 73 01/01/2016 €45,022.73 €1,019.60 155.7036 €863.89 €44,158.84 74 01/02/2016 €44,158.84 €1,019.60 152.716 €866.88 €43,291.96 75 01/03/2016 €43,291.96 €1,019.60 149.718 €869.88 €42,422.08 76 01/04/2016 €42,422.08 €1,019.60 146.7097 €872.89 €41,549.20 77 01/05/2016 €41,549.20 €1,019.60 143.691 €875.90 €40,673.29 78 01/06/2016 €40,673.29 €1,019.60 140.6618 €878.93 €39,794.36 79 01/07/2016 €39,794.36 €1,019.60 137.6222 €881.97 €38,912.39 80 01/08/2016 €38,912.39 €1,019.60 134.572 €885.02 €38,027.36 81 01/09/2016 €38,027.36 €1,019.60 131.5113 €888.08 €37,139.28 82 01/10/2016 €37,139.28 €1,019.60 128.44 €891.16 €36,248.12 83 01/11/2016 €36,248.12 €1,019.60 125.3581 €894.24 €35,353.88 84 01/12/2016 €35,353.88 €1,019.60 122.2655 €897.33 €34,456.55 85 01/01/2017 €34,456.55 €1,019.60 119.1622 €900.43 €33,556.12 86 01/02/2017 €33,556.12 €1,019.60 116.0483 €903.55 €32,652.57 87 01/03/2017 €32,652.57 €1,019.60 112.9235 €906.67 €31,745.90 90 2010 88 01/04/2017 €31,745.90 €1,019.60 109.7879 €909.81 €30,836.09 89 01/05/2017 €30,836.09 €1,019.60 106.6415 €912.95 €29,923.14 90 01/06/2017 €29,923.14 €1,019.60 103.4842 €916.11 €29,007.03 91 01/07/2017 €29,007.03 €1,019.60 100.316 €919.28 €28,087.75 92 01/08/2017 €28,087.75 €1,019.60 97.1368 €922.46 €27,165.29 93 01/09/2017 €27,165.29 €1,019.60 93.94663 €925.65 €26,239.64 94 01/10/2017 €26,239.64 €1,019.60 90.74543 €928.85 €25,310.79 95 01/11/2017 €25,310.79 €1,019.60 87.53315 €932.06 €24,378.73 96 01/12/2017 €24,378.73 €1,019.60 84.30977 €935.29 €23,443.44 97 01/01/2018 €23,443.44 €1,019.60 81.07524 €938.52 €22,504.92 98 01/02/2018 €22,504.92 €1,019.60 77.82952 €941.77 €21,563.16 99 01/03/2018 €21,563.16 €1,019.60 74.57258 €945.02 €20,618.13 100 01/04/2018 €20,618.13 €1,019.60 71.30438 €948.29 €19,669.84 101 01/05/2018 €19,669.84 €1,019.60 68.02487 €951.57 €18,718.27 102 01/06/2018 €18,718.27 €1,019.60 64.73402 €954.86 €17,763.41 103 01/07/2018 €17,763.41 €1,019.60 61.43179 €958.16 €16,805.25 104 01/08/2018 €16,805.25 €1,019.60 58.11814 €961.48 €15,843.77 105 01/09/2018 €15,843.77 €1,019.60 54.79303 €964.80 €14,878.97 106 01/10/2018 €14,878.97 €1,019.60 51.45642 €968.14 €13,910.83 107 01/11/2018 €13,910.83 €1,019.60 48.10828 €971.49 €12,939.34 108 01/12/2018 €12,939.34 €1,019.60 44.74855 €974.85 €11,964.49 109 01/01/2019 €11,964.49 €1,019.60 41.3772 €978.22 €10,986.27 110 01/02/2019 €10,986.27 €1,019.60 37.9942 €981.60 €10,004.67 111 01/03/2019 €10,004.67 €1,019.60 34.59949 €985.00 €9,019.68 112 01/04/2019 €9,019.68 €1,019.60 31.19305 €988.40 €8,031.27 113 01/05/2019 €8,031.27 €1,019.60 27.77482 €991.82 €7,039.45 114 01/06/2019 €7,039.45 €1,019.60 24.34478 €995.25 €6,044.20 115 01/07/2019 €6,044.20 €1,019.60 20.90287 €998.69 €5,045.51 116 01/08/2019 €5,045.51 €1,019.60 17.44906 €1,002.15 €4,043.36 117 01/09/2019 €4,043.36 €1,019.60 13.9833 €1,005.61 €3,037.75 118 01/10/2019 €3,037.75 €1,019.60 10.50556 €1,009.09 €2,028.66 119 01/11/2019 €2,028.66 €1,019.60 7.015787 €1,012.58 €1,016.08 91 2010 120 01/12/2019 €1,016.08 11.4.12 €1,019.60 3.513949 €1,016.08 -€0.00 Venture Capitalists We have identified the following venture capitalist that we will contact in order to generate the necessary investment. Venture Invests Location Contact Capitalist Siparex Start up 139, rue de Vendôme Comapanies 69477 Lyon Cedex 06 France Relations Extérieures - Edith Jarsaillon [email protected] Tél. : 04 72 83 23 23 Fax : 04 72 83 23 00 Turennecapital Software Paris Tel : +33 1 53 43 03 03 Innovative 29-31 Rue Saint Fax : +33 1 53 43 03 04 industries Augustin 75002 Paris Marseilles Tel : +33 4 91 14 31 35 31 rue Montgrand –BP Fax : +33 4 91 55 62 59 303 13177 Marseille Cedex 20 Ventech Information 5/7, rue de Monttessuy T + 33 1 58 19 21 50 Technology 75340 PARIS Cedex F + 33 1 58 19 21 60 07 [email protected] France 9th Floor, China T + 86 10 5920 4215 Central Place, Tower F + 86 10 6530 7652 II [email protected] 92 2010 79 Jianguo Road, Chaoyang District Beijing 100025, China CDC ICT Enterprises 137, rue de l‟Université Tél. : 01 58 50 71 71 75007 PARIS [email protected] Argos Soditic Small to 14, rue de Bassano Tel. +33 1 53 67 20 50 medium 75783 Paris Cedex 16 Fax. +33 1 53 67 20 55 Potential 68 rue du Faubourg Tel: +33 (1) 53 05 40 50 Growth Saint Honoré 75008 Fax: +33 (1) 53 05 40 57 Firms PARIS Mail: [email protected] sized businesses Partners Astorg 93 2010 11.5 Competitors Company Company Product How it competes Touchscreen If users can download cooking devices applications thus they can use Location Apple Inc. USA this cooking applications on their Apple Devices. Bring the devices into the kitchen (Apple 2010). Amazon USA Kindle Kindle application for iPad, iPod and iPod touch. Users can read over 600,000 Kindle books in the Kindle Store and also be read on a user‟s PC, blackberry etc (Apple 2010). Nintendo Personal Trainer USA Game bringing 245+ recipes from over 30 gourmet cooking countries. Videos of techniques, explanations of ingredients and expert advice. Shopping lists Voice command: next page, next page, repeat a step and go back 94 2010 Company Company Product How it competes Location Cuisine TV France TV Station Website categorised into; and website Recipes TV programmes Videos Magazine The club Games & podcasts (Cuisine TV 2010) 11.5.1 Food Websites Company Company Product How it competes Location Digital Cookbook USA Websites Digital Own virtual recipe box cookbook Send in comments about recipes website Submit recipes opportunity to feature on the website and digital cookbook TV Purchase cookbook(Digital Cookbook 2010) La Cucina Belgium Food website By being independent by not having any commercial ties. Online community of food enthusiasts recipe collection Articles Brose their store(La Cucina 2010). All Recipes Seattle – USA Website 40,000 recipes and most visited food social website (Mashable 2009). network for Views recipes: food and Popular collection avid food Course 95 2010 lovers International Personal Recipe box & blogs Free registration. (All recipes 2010) Create Shopping lists & newsletters 11.5.2 Free Digital Cookbook Software Company Product How it compares Free digital cookbook Digital Organize recipes, ingredients, measurement (Cnet 2010) cookbook units, and menus, and perform nutritional software analysis, calculate costs, create shopping lists, import and export recipes, and even send recipes to your friends by e-mail. 11.5.3 Weightwatchers and App Company Company Product How it competes Location Weightwatchers USA Website and App: See feature recipes daily Application Create shopping lists Interactive Cheat sheets Success stories Track Points Calculate Point values 31,000 Food options Track weight and see progress See weight loss Website: Food and recipes – contains food plans and Success stories Community (iTunes 2010) 96 2010 In France, there are 1500 meetings welcoming 35 000 – 45 000 people every week in 650 centres (LinkedIn 2010). Their strength lies within their brand and the loyalty of their weight watchers. It must be noted that within these meetings, leaders will recommend products and steps to do to get results; hence it is likely that they are going to recommend their own WeightWatchers iPhone/iPad app to use to monitor food consumption and weight. When our product is introduced, WeightWatchers can respond in a number of ways; Introduction of a actual physical device with an applications on it Introduction of new applications for iTunes store 11.5.4 Competitors Products Name MyDemy Picture Description Picture from: http://www.mydemy.com/features/ Nintendo DS http://www.nintendo.com/ds/syste ms/dsi 97 2010 Free Kindle reading apps for all Amazon Kindle devices now (Mac, pc, iPhone, iPad, android, blackberry): http://www.amazon.com/dp/B0015 T963C/?tag=gocous20&hvadid=5266389317&ref=pd_ sl_7caym1p0x_b Kindle Kindle DX QooQ http://qooq.fr/ Belling’s http://www.belling.co.uk/Belling- Mediachef Digital Mediachef/Mediachef_c42/Belling- Cookbook Mediachef_s140.aspx 11.6 Market Analysis 11.6.1 Food Expenditure 1994-2007/08 11.6.1.1 France Analysis 1995-2007 Growth 2000-2007 Food 16.4 10.0 Bread and 13.9 7.0 Meat 12.4 9.2 Fish and 28.0 9.3 cereals 98 2010 seafood Milk, cheese 12.7 8.4 Oils and fats -2.3 -4.3 Fruit 30.0 25.8 Vegetables 10.5 6.4 Sugar and 26.5 16.8 37.7 16.0 Non-alcoholic 25.5 13.9 and eggs confectionery Other food drinks Coffee, tea -8.8 5.6 46.4 23.7 17.0 10.3 and cocoa Other soft drinks Total Source: National Statistical Office, OECD, Eurostat, Euromonitor International Note: Constant Value at 2007 prices 11.6.1.2 Belgium Analysis 1995- 2007 Bread and Growth 2000-2007 16.8 21.2 Meat -6.0 11.0 Fish and 32.6 16.4 17.7 21.4 Oils and fats -28.7 -7.6 Fruit 6.9 20.8 cereals seafood Milk, cheese and eggs 99 2010 Vegetables 46.6 28.0 Sugar and -0.7 11.4 Other food 157.5 94.2 TOTAL 17.7 23.3 confectionery Source: National Statistical Office, OECD, Eurostat, Euromonitor International Note: Constant Value at 2008 11.6.1.3 Switzerland Analysis 1995-2008 Bread and Growth 2000-2008 9.5 7.5 Meat 15.0 4.5 Fish and 45.7 1.6 15.5 -1.6 Oils and fats -18.0 -1.5 Fruit 34.7 18.0 Vegetables 34.0 10.7 Sugar and 9.9 9.6 Other food 39.5 27.6 TOTAL 11.8 7.6 cereals seafood Milk, cheese and eggs confectionery Source: National Statistical Office, OECD, Eurostat, Euromonitor International Note: Constant Value at 2008 100 2010 11.6.2 Top 10 Distributed French Magazines Figure 26: Top 10 Distributed French Magazines (Source:Ozap 201) 101 2010 11.6.3 OECD: Overweight and Obesity Figures Figure 27: Overweight and Obesity Figues (Source: OECD Overweight and Obese 2007 (Small-M 2007)) 11.6.4 Children Aged 11-15 years who are overweight or obese, and children who are involved in weight reduction behaviour, 2005-2006 (OECD) Netherlands 8% Slovak 8.80% Republic Turkey 10% Poland 11.20% Austria 12% Germany 12% United 12% Kingdom Luxembourg 12.50% OECD 13.80% 102 2010 Ireland 14.20% Iceland 14.50% Czech 15% Republic Hungary 15.50% Spain 16.7% Italy 18.3% Greece 18.80% Portugal 18.80% Canada 21.30% United States 29.80% Finland 15.8% Norway 10.0% Sweden 10.0% Source: OECD 2009 11.6.5 Total of marriages in France Year Marriages 1994 260,866 1995 261,813 1996 287,144 1997 291,163 1998 278,525 1999 293,544 2000 305,234 2001 295,720 2002 286,169 2003 282,756 2004 278,439 2005 283,036 103 2010 2006 273,914 2007 273,669 2008 265,404 2009 (p) 256,000 Source: National Institute of Statistics and Economic studies 2010 11.6.6 Total of First Marriage Rates in Switzerland Men Women 2005 2006 2007 2008 2005 2006 2007 2008 58.6 58.1 58.5 59.0 63.0 62.8 63.1 64.0 Sources: Vital Statistics (VITSTAT), Annual Population Statistics (ESPOP), (BFS 2010). 104 2010 11.6.7 Global Sales of Slimming Products Figure 28: Global Sales of Slimming Products Source: Euromonitor 2010 – Consumer Health – trends developments and prospects )( 105 2010 11.6.8 Global Smartphone App Download Market App Customer Base (millions) Worldwide smartphone 980 1000 900 800 700 600 500 400 300 200 100 0 application market to grow from $1.94 billion in 2009 to $15.65 780 billion by 2013 (Techcunch 580 2010). 300 100 2009 2010 2011 2012 2013 Figure 29: App Customer Base (millions) (Source: Research Guidance 2010, (Techcrunch 2010)) 11.6.9 Mobile Application Stores' Number of Downloads and Revenue, Worldwide Downloads (in M) Total revenue (in $M) 2009 2010 2013 2,516 4,507 21,646 4,237.80 6,770.40 29,479.30 Source: Gartner (December 2009) 11.7 Market Research We conducted quantitative and qualitative research by utilising the methods of two surveys on https://www.surveymonkey.com and conducting semi-structured interviews with our target audience. Unfortunately, we did not conduct focus groups as we felt that one-on-one interviews would elicit true responses and another key factor was in relation to the location of the interviews taking place in Ireland and not in our target markets. If we were to conduct our market research differently, the company would visit our target markets and conduct primary research within France, Switzerland and Belgium to further substantiate our initial primary research. 106 2010 11.7.1 Survey Analysis 1 Household size 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% 36,10% The household size of those who participated in the survey was 36,10% divided equally between 2 people and 3-4 people with 36.6% each. 18,80% The households with 1 person made 9,00% up 18.8% of the survey respondents and households with 5 or more people made up 9% of the overall 1 2 3-4 5+ percentage. Figure 30: Household Size Bought a cookbook? To determine the interest in 71,40% cooking, we asked respondents had 28,60% they ever bought a cookbook. The majority of 71.4% said yes and 28.6% said no. Yes No Figure 31: Ever Bought a Cookbook 107 2010 Visiting cooking websites 45.2% of the respondents said that they visit cooking websites once a month, 45,20% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% 18,30% 11,90% 1,60% 23,00% 18,3% visit them every couple of weeks, 11,9% do so 2 to 3 times a week and only 1,6% claim to visit the Every 2-3 Every Once a Never day times two month a weeks week cooking websites every day and never at 23%. Figure 32: Visiting Cooking Websites The survey respondents were asked to Frequency of Cooking at Home 39,70% 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% home during the week. This gives us an idea if people cook at home and if so then how much. From the results it 23,80% 9,50% 11,10% answer as to how often they cook at is apparent that 39.7% of the 15,90% respondents claim to cook at home 4 to 6 times a week, 23.8% cook 2 to 3 times a week and 11.1% once a week. Less Once 2-3 4-6 Every than a times times Day once a week a a week week week Only 15.9% of the respondents claim to cook something in their kitchen every day and 9.5% of the respondents Figure 33: Frequency of Cooking at Home say that they spend time in the kitchen cooking less than once a week. 108 2010 Printed out recipes The people who had visited cooking websites were also asked 72,20% if they have ever printed out any 28,90% recipes from those sites. 72.2% said yes and 28.9% claimed no Yes No Figure 34: Ever printed out Recipes How often do you print out recipes? 76,10% Furthermore, the respondents who said that they had printed out recipes were asked about the 80,00% frequency of doing so. The 60,00% majority, 76.1%, say that they 40,00% 12,70% 11,30% 20,00% print recipes out less than once a month, 12.7% print them once a 0,00% Less than once a month Once a month 2-5 times a month month and only 11.3% claim that they do it more often Figure 35: Frequency of Printing Recipes 109 2010 . To gain an idea of people‟s Do you watch cooking shows? cooking enthusiasm they were asked if they also watch cooking shows. The percentage of people watching cooking shows is 53,20% 46,80% slightly higher than that of those who do not with 53.2% and 46.8% respectively. Yes No Figure 36: Watching Cooking Shows Have you brought your laptop to kitchen? The respondents were also asked if they bring their laptop into the kitchen to determine whether a dedicated device for cooking 55,60% 44,40% would suffice. 55.6% of the respondents said that they bring their laptops into the kitchen and 44.4% said that they do not. Yes No Figure 37: Ever Taken Laptop to Kitchen 110 2010 Do you own an iPad or iPod touch? In addition they were asked if they own an iPad or iPod touch. The majority of the respondents, 74.1% said no and only 25.8% 25,80% 74,20% said, we consider Apple as one of our main competitors. Yes No Figure 38: Own an iPod Touch, iPad People owning the iPod touch or Have you downloaded cooking apps on it? iPad were also asked if they have ever downloaded a cooking application to their device to help them find recipes and manage 11,50% their cooking experience. It was 88,50% determined that only 11.5% of the iPad and iPod touch have downloaded a cooking application whereas 88.5% stated Yes No no. Figure 39: Downloaded Cooking Apps 111 2010 Cooking Experience The respondents were also asked to shed light on their cooking 61,10% 70,00% prowess in the kitchen. The 60,00% majority considered themselves 50,00% 40,00% to be at the intermediate level 27,00% (61.10%), 27% said that they are 30,00% 11,90% 20,00% on the beginner lever and 11.9% claimed to be experts. 10,00% 0,00% Beginner Intermediate Expert Figure 40: Cooking Experience Views on cooking and healthy eating Answer Options Strongly Disagree Neutral Agree Disagree Cooking meals at home has Strongly Rating Agree Average 0,00% 8,90% 29,50% 48,20% 13,40% 3,66 People are eating healthier 5,40% 18,80% 24,10% 44,60% 7,10% 3,29 Obesity is prevalent in society 0,90% 10,70% 25,90% 44,60% 17,90% 3,68 11,60% 26,80% 38,40% 17,00% 6,30% 2,79 10,70% 23,20% 30,40% 26,80% 8,90% 3 0,00% 3,60% 10,70% 36,60% 49,10% 4,31 become popular Having a digital cookbook would allow me to manage my cooking lifestyle I would try different recipes if I had a digital cookbook Cooking at home saves money compared with eating out 112 2010 Functionalities of a digital cookbook Answer Options Strongly Disagree Neutral Agree Disagree Strongly Rating Agree Average Managing recipes 0,9% 6.3% 25,9% 53,6% 13,4% 3,72 Voice commands 16,1% 27,7% 27,7% 21,4% 7,1% 2,76 Speech instructions 19,6% 27,7% 25,0% 20,5% 7,1% 2,68 Nutritional Advice 6.3% 12,5% 25,0% 39,3% 17,0% 3,48 Calorie Count 6,3% 12,5% 25,9% 39,3% 16,1% 3,46 Create recipes 3,6% 21,4% 31,3% 34,8% 8,9% 3,24 Editing recipes 2,7% 15,2% 24,1% 45,5% 12,5% 3,50 Recipe search 0,0% 1,8% 8,9% 43,8% 45,5% 4,33 Sharing recipes online 2,7% 8,9% 45,5% 28,6% 14,3% 3,43 Downloading new recipes 1,8% 2,7% 15,2% 50,9% 29,5% 4,04 Meal planner 4,5% 10,7% 34,8% 35,7% 14,3% 3,45 Shopping list 4,5% 8,0% 20,5% 48,2% 18,8% 3,69 Video demonstrations 6.3% 16,1% 26,8% 33,9% 17,0% 3,39 Celebrity chef recipes 9,9% 12,5% 42,0% 30,4% 5,4% 3,09 11.7.2 Survey Analysis 2 An additional survey was conducted to determine the eating habits of people. The survey also included question about how the respondents felt about their weight. Out of the 30 respondents 63.3% were male and 36.7% were female. Half of the people taking the survey were in the age group of 18-25 and 26-35 year olds also formed a considerable amount of respondents. Only 10% of the people who took the survey were in the age range of 35-50 and no one over 50 responded to the survey. 113 2010 The respondents were asked as Frequency of 'junk food' consumption 44,80% 45,00% 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% to how often they indulged themselves with „junk food‟. Junk food in this context was considered to be burgers, pizza, 20,70% 24,10% chips etc. Majority, 44.8% answered they consume „junk 0,00% 3,40% 6,90% food‟ a couple of times a week. A significant 24.10% eat „junk Never Less Once a Once a Couple Every than month week of day once a or less times a month week food‟ every day and 20.70% consume junk food once a week or less. Figure 41: Frequency of Consuming 'junk food' Able to control their weight To follow up we also asked the respondents if they are able to 65,50% control their weight to which the majority of 65.5% said that they 34,50% are capable it and 34.5% admitted to being unable to control their weight issues. Yes No Figure 42: Ability to Control Weight 114 2010 Own a weighing scale The respondents were then inquired if they had a weighing 62,10% scale in their household to which 62,10% said Yes to and 37,90% Yes 37,90% said No. No Figure 43: Owns a Weighing Scale Scale reminds me to eat healthy and control my weight People owing a weighing scale were then asked if they use their scale o help them control their weight and make decision to eat healthily. Here the answers were 50% 50% tied with 50% agreeing that having a scale really does help them and 50% saying that no, it does not. Yes No Figure 44: Scale helps eat healthily and control weight 115 2010 Worried about weight The respondents were also asked if they are worried about their 44,80% weight. 44.8% said that they are 55,20% indeed worried about it and 55.2% said that they are not. Yes No Figure 45: Worried About Weight To determine how often the respondents were trying to eat healthily and get their recommended 5 portions of fruit Avg. Consumption of fruit/vegetables in a day of vegetables a day, they were asked to answer as to what is their average consumption of 50,00% 41,40% 40,00% those items per day. 41.40% of 31,00% the respondents that they 30,00% 10,00% consume 3-4 vegetable/fruit 13,80% 20,00% 10,30% 3,40% portions a day. 31% said that they only have one portion a day, 0,00% Less than 1 1 2 3-4 Figure 46: Avg. Consumption of Fruit/Vegetables 5+ 13.8% stated that they have two portions a day. Only 10.3% of the respondents said that they have five or more portions of fruit/vegetables a day and 3.4% admitted to having less than 1. 116 2010 11.7.3 Interview 1 Interviewer: Anne Marie Knox Interviewee: Jerome Protveau Anne Marie: Hi I am Anne Marie Knox and today, I will be conducting an interview on our practicum idea, the digital cookbook and will now hand you over to. Jerome: I am Jerome Provteau Anne Marie: Em so Ok, Jerome, em do you like to cook and if so what do you like about cooking? Jerome: [Laughs] something different Anne Marie: Do something different Jerome: Eh everyday Anne Marie: Yep Jerome: Em, I can manage and do what I want. Anne Marie: Do want you like, that‟s why you like to cook, do what you want to do? Anne Marie: So, do you think in your opinion influenced by your family for cooking? Jerome: Yes Anne Marie: Who in particular cooks in your family? Jerome: My parents Anne Marie: Your parents and? Jerome: My mom and my Dad Anne Marie: Do they cook both the same? Or does your mam cook more than your Dad? Jerome: My mam cooks more Anne Marie: And how many times, cook home cook meals? Every day? Jerome: My parents? Anne Marie: Yeah, your parents and yourself. Jerome: I really don‟t know myself, no Anne Marie: You don‟t know Jerome: Eh, as I said 15 mins or 20 mins for lunch maybe Anne Marie: Preparing the meals or cooking the meals. Jerome: Eh, 30 for dinner 117 2010 Anne Marie: Eh then what influences you choosing these types of meals, is it the easiness of cooking it or is it the quickness or the convenience? Jerome: Eh, I don‟t know, I can do, eh, something more difficult, eh if I had the time. Anne Marie: So if you had the time, do you like to eat out a lot in restaurants. Jerome: Eh not really Anne Marie: eh not really, why is that? Jerome: Because it is so expensive? Anne Marie: So expensive, can you tell me what your favourite meals are? Jerome: [Laugh] Anne Marie: What do you like to cook? Jerome: Eh no, I have no really favourites. Anne Marie: Ok em, so you have been explained before what the digital CookiFI, cookbook is. So, would you be comfortable using this digital cookbook? Jerome: Yes, if there are a lot of recipes and eh. Anne Marie: a lot of recipes? Jerome: is better, than to have a lot of cookbooks and manage my week. Eh, have a shopping list Anne Marie: Yep, shopping list so you prefer a digital cookbook in your kitchen than a traditional cookbook? Jerome: yes, you would go for the digital cookbook first? Anne Marie: Yeah if I gave you a cookbook or a digital cookbook, which one would you prefer and why do you think that is? Prefer a digital cookbook? Jerome: Em, I don‟t really know Anne Marie: Is it technology or? Jerome: Yes, yes and I like the new technology Anne Marie: Oh okay, so you buy a lot. So your perfect digital cooking device. What would it do for you? How would it help you in the kitchen? Jerome: eh um, I see I could help me or give me help in recipes and eh, as I said, em give me the shopping list Anne Marie: so anything else, do for you like? Would you be interested in diets? Or calorie count Jerome: Plan a week 118 2010 Anne Marie: Plan a week? Basically, just plan your cooking week? Em, so on this digital cookbook, would you be happy with video or text instructions on how to cook a meals or prepare a meals. Jerome: Text is better. Anne Marie: Why is text better? Em a video of a chef showing you how to cook something Jerome: with a meal, I have to look at the screen and see the video, there is just the text, I read the text and I can do it and em, change and go to the next step and after. Anne Marie: So more, at your own pace, to cook at your own pace. Is that? Okay, and so just for example, do you think voice commands would help you, just say for example on a recipe and it tell you what to do, put in the oven, it calls and tells you what to do on voice. Jerome: But not on, I think that it is better with a text. Anne Marie: so with a text, you would have both the text and the digital cookbook would speak to you. Jerome: Yes, yes , Yes. Anne Marie: Do you think as a beginner, you would prefer this in the beginning to cook. You would like this, someone to tell you what to do. Jerome: Yes. For a beginner it is better. Anne Marie: So do you think that you are a beginner or an experienced cook? Jerome: Not experienced but em, in the middle. Anne Marie: So you think that you are in the middle. So you would still need voice commands. Oh Okay, so if you bought this device, how much would you be willing to pay? Jerome: Eh um, €150 Anne Marie: And is the cost, a high factor to you if you were going to buy it, the cost that influences your decision. Jerome: Eh yes, Anne Marie: So the cost is the main? Jerome: Not the main, what the device does. Anne Marie: Yeah, So em, so if you bought this device today and where would you put it in the kitchen, where exactly in the kitchen. Jerome: Um, [Laughs] Anne Marie: If you had your kitchen, your counter tops. Where would you place it? Jerome: Um, near other 119 2010 Anne Marie: Other appliances. Jerome: Yes, Yes. Near coffee marchine, near microwave . Anne Marie: Yep. Wouldn‟t put this device or hide it anywhere. Would you have it on display at all times? Jerome: Yes Anne Marie: Do you think that the colour of the device would influence you to buy it? Would you like it in different colours? Jerome: Um, could be better Anne Marie: Better? Jerome: for people who have a kitchen for specifically for colours Anne Marie: Colour scheme?And so what kind of recipes would you like?On the digital cookbook if you were going to buy it? Jerome: Um, the more recipes Anne Marie: The More as possible, so if there was a website dedicated specifically for the digital cookbook , would you go on-line buy more applications, download them. Jerome: Yeah, I think so. Anne Marie: Yeah, how much would you pay for an application? Would it have to be the same price as an iPad application or an iPod touch. What price range? Just say for example, you get more recipes on Italian Cooking? How much would you pay for an application like that? Jerome: I don‟t know, €5 Anne Marie: €5 Jerome: €10 Anne Marie: €10 Anne Marie: Oh Okay, do you own a iPad or a similar device, iPod touch or a iPhone. Jerome: Yes Anne Marie: So why did you buy it? Jerome: Um, because of the reputation Anne Marie: Reputation Jerome: The brand and the apps stores Anne Marie: Do all your friends own an iPad? Or a iPhone? Jerome: Yes 120 2010 Anne Marie: So, you think because your friends that you will buy it? Jerome: Not especially Anne Marie: yep, so because you have a iPod touch and iPhone, have you ever downloaded cooking applications. Jerome: Yes Anne Marie: What, can you name them? Remember them Jerome: I can‟t remember Anne Marie: Can you remember how much? Jerome: It was free! Anne Marie: Is that? Jerome: I just tried it. Anne Marie: Do you use this application much? Prepare meals? Jerome: No, just once or twice Anne Marie: One or two times! so okay. What did you like about the cooking application? Jerome: Um, the different applications, the different steaks but I think that it is too small Anne Marie: Too small on your device, yeah. So could you see it? Jerome: It is too small and I don‟t like to put my iPhone in the kitchen. Anne Marie: In the kitchen, why do you don‟t like to put the iPhone in the kitchen? Jerome: it is not safe Anne Marie: it is not safe, oh, you are afraid, it will break so the iPhone is not made for the kitchen. In your opinion? Jerome: Yes Anne Marie: so what were the weaknesses of the cooking application?what did you not like. Jerome: Sorry. Anne Marie: The cooking application that you downloaded why did you not like it. Was there anything wrong with it? Jerome: I think that the problem is the iPhone Anne Marie: The iPhone the problem. Jerome: It wasn‟t the application but the iPhone. Anne Marie: A bigger screen, it is better. Em, so as well as that, would you bring your laptop into the kitchen for cooking purposes? Jerome: Yes sometimes . I don‟t really like it because like with the iPhone, it is not safe . 121 2010 Anne Marie: So you are afraid that it will break or something will happen. So, afraid cooking and your ingredients would go on your laptop. Jerome: Yes Anne Marie: Or you would dirty your laptop. Okay, as well as that have you ever printed off recipes from the internet . Jerome:No Anne Marie: No, why is that? Jerome: I don‟t know, sometime I go on websites, cooking websites but I just look at, look at the recipe Anne Marie: and go to the kitchen then? Jerome: Yes Anne Marie: So em, as well as that em, would you consider buying the CookiFI digital cookbook for a person? Jerome: Yes Anne Marie: who would you give the gift to? Jerome: For my family, for my friends and my parents, for friends. Anne Marie: So um, do you think the digital cookbook, what age group for? Jerome: Age, um, a lot of people, I think, for 20 to no limit Anne Marie: Onwards, so do you think that someone would buy this device if they can cook or cant cook? Who would be more willing to? Jerome: Both, I think. Anne Marie: Both, oh okay, you can cook yourself? So you would buy the device for the recipes and someone who couldn‟t cook why would they buy this device, do you think. Jerome: Yes Anne Marie: have you ever shared recipes on-line? Jerome: No Anne Marie: Why is that? Jerome: I don‟t know, I don‟t really know Anne Marie: You don‟t really know and not on Facebook or any other social media sites . Jerome: No Anne Marie: you haven‟t shared recipes 122 2010 Anne Marie: Em, is it because it is not cool to share recipes on-line or you don‟t think social media is suitable for that. Jerome: Yes, mabye. I think that it could be better if there is a dedicated site, website. Anne Marie: Oh okay, if there was a dedicated website, would you share recipes on-line with other users? Jerome: Yeah maybe and when you are cooking something Anne Marie: do you modify the recipe or do you stick by it? Jerome: It depends Anne Marie: It depends on how?Oh okay, em, do you regularly visit cooking websites? Jerome: Yes Anne Marie: Are they in French or English? Jerome: In French. Anne Marie: In French, do you think that the French websites are better than the English websites. I don‟t know. Jerome: I didn‟t try Irish. Anne Marie: So, have you created your own recipes? Just your own completely from scratch? Jerome: Yes, yes Anne Marie: so would you watch on-line cooking demonstrations? Jerome: yes, sometimes. Anne Marie: Sometimes, on TV or your laptop? Or on your iPhone? Jerome: yes Anne Marie: so, which do you prefer to watch? Which one for the screen? Jerome: It doesn‟t matter Anne Marie: So, can you name any famous chefs? Jerome: Yes, Ceril Yinyack Anne Marie: ceril yinyack, who is ceril yinyack? Jerome: It is a famous French chef Anne Marie: so he is famous. Why is he famous? Do you think? Jerome: I don‟t know, Anne Marie: Does he promote any cooking utilities/applications? Jerome: Yes 123 2010 Anne Marie: What are they? Jerome: some cookbooks. Anne Marie: Some cookbooks. Jerome: I think that he did some TV shows Anne Marie: TV shows as well, okay, do you think that if you bought this device that you would cook more? Jerome: Yes, maybe, Yes Anne Marie: In your opinion, do you think that people have g one back to cooking? Jerome: I think so. Anne Marie: In France, Ireland or any other countries? Jerome: In Ireland, I don‟t know but in France, yes. Anne Marie: Why do you think that they have gone back to cooking? Jerome: Why? I don‟t really know. Anne Marie: the recession Jerome: Not really, I think that they try to have a good lifestyle. Anne Marie: A good lifestyle, that‟s why? Do you think that if you have this digital cookbook that you will save more money or users would save more money instead of eating out? If they could, cook their own stuff. Jerome: Yes. Anne Marie: if this digital cookbook told you how to eat healthy, would you follow this advice? Jerome: Yes Anne Marie: In terms of an application, take advice from a nutrionists telling you what is healthy and what is not? Jerome: I think that it is a good thing. Anne Marie: In your opinion, do they French have a different cooking style than other nationalities? Jerome: Yes Anne Marie: They prefer cooking French cooking? Jerome: Yes Anne Marie: No other cooking like Italian? Jerome: sometimes. [Laugh] 124 2010 Anne Marie: I just want to say thank you for your time with the interview. 11.7.4 Interview 2 Interviewer: Grete Napits Interviewee: Norah Cassidy Grete: Thank you Norah for agreeing to have an interview with me To start off I would like to ask you if you think that many people are going back to cooking these days Norah: Yes, no I do. I think a lot of people are returning to cooking. It's becoming more popular with people having a lot less money they're cooking home more. Grete: Okay. So you think that the trend of cooking is going upwards and gaining popularity Norah: Yeah I do, I definitely think everyone‟s trying new things and different recipes at the moment Grete: Do you think that yeah as you already mentioned its saving money. Does it save money for you as well as you're a student? Norah: Oh yeah definitely. I wouldn't be able to eat out a lot and I think I do cook a lot. So, I really enjoy cooking. I definitely think it would save a lot more money rather than eating out all the time. Grete: Do you spend a lot of time preparing food in the kitchen? Norah: I might spend maybe two to three hours a day cooking and I suppose between breakfast and dinner in the afternoon as well like. I definitely spend a couple of hours cooking Grete: That's quite a bit actuality! 125 2010 (laughter) Norah: Well it depends, I suppose on how busy I am. Grete: I know there's a lot of cooking shows and everything like a lot of things to do with cooking? Are these days. Do you watch any cooking shows at all? Norah: Yeah. Some cooking shows. I like the restaurant on rte. And a few other ones that, that are out. All the different reality kind of cooking programs. But they're definitely becoming more popular, and I like watching them. Grete: And there's also websites of sorts, do you visit those? Norah: Sometimes, there's a lot of like recipes on RTE website for healthy eating and just things like that. I look them up. Grete: Again, do they also have online cooking demonstrations as to how to cook meals? Norah: Yeah, I haven't watched them now at all but I'm sure they do Grete: As you look at the recipes online, do you ever print them out to maybe try them in the kitchen? Norah: Yeah I think I have printed out a few, not many. I think the last one I printed off was for brownies Grete: Brownies are good! Norah: A lot of the things I just tend to remember and change myself. But most things like if it was something like a dessert then I might print it off Grete: Are there any specific chefs that you like, as to who's recipes you'd prefer maybe? 126 2010 Norah: Not really I suppose I'll try anything. I like Gordon Ramsay's cooking and Marc Pierre White as well. He's very good. I like the French style of cooking Grete: Cool. Have you ever created your own recipes? Norah: Yeah, no I like trying with whatever I have in the kitchen so I try to make something Grete: I know internet is the big thing at the moment and everyone's on social networks and so on. Do you ever share your recipes with your friends maybe? Norah: Some of them… not, I suppose it depends if people are looking for a recipe I might be able to help them but I wouldn't do it a lot like Grete: Ok so you wouldn't actually go online and put up your recipes? Norah: No Grete: You wouldn't get anything out of it. Norah: No, I like to keep my recipes secret! (laughter) Grete: Ok, so when you're taking recipes from online would you ever bring your laptop to the kitchen to look over the recipe? Norah: Yeah, no. I don't think so. Maybe not in this kitchen I‟m in at the moment. It's a little small for a laptop and I tend to make a bit of a mess sometimes. So I either print off the recipes if it's that important, or just try and remember it. But I wouldn't have ever brought in my laptop Grete: Do you own an Ipad or an Ipod Touch or a similar device? 127 2010 Norah: No Grete: So you've never downloaded any cooking applications for them either? Norah: No Grete: If you had a specific device that was meant specifically for the kitchen, for recipes, would you have a space for it in your kitchen? Norah: I probably would. It depends how big it was. I'm sure if you really wanted it, you'd make space for it if it's going to be part of your kitchen. It would probably be useful. Grete: What would a device like that look ideally to you? As to what kind of functionality would you like it to have? Norah: I suppose like it would be able to store your different recipes in different groups. So if you put in something that was healthy it would go into the healthy group, or if you stored something that was a dessert like, it would be able to tell you. Say if you wanted to go on acertain diet, maybe it would show these recipes and pool them together. Definitely that would be helpful. Grete: So, for example if a nutritionist put some nutritional advice up on the device would you look it up? Norah: Oh definitely, 'cause I think I'm very prone to cholesterol, high cholesterol so I think I definitely watch what I eat in relation to that. So if advice was there from a nutritionist I'd definitely take it. Grete: Ok so, would you find having voice recognition useful on such a device? 128 2010 Norah: Yeah, I think so, because if you're going to be cooking a lot and have it in your kitchen, it's gonna be like a computer device and you wouldn't want to be touching it all the time 'cause you might have loads of stuff all over your hands. So it would be good to say be able to talk to it and get the information that way instead of making a mess everywhere. Grete: Ok so, just to wrap it all up how much do you think that sort of a device would be worth for you? How much would you be willing to pay? Norah: It depends on the device you see. I suppose it mightn't have that much market if all it could do was y'know show recipes. It'd be good like obviously to go on the internet with it as well, then it would be like a computer as well. Maybe... I suppose it would have to be about a hundred euro. I don't think I'd pay that much more extra. It depends. If I really wanted it and it was really good, I might be able to pay a little more. Grete: Ok, do you think it might be a perfect gift idea? Norah: Yeah, no I think a lot of people would enjoy it. Say some like, my Mam wouldn't enjoy it because I suppose she's not really into computers and those things, and she'd like old style cooking with the recipe books in the kitchen. But I would like, and you know modern, more modern people would probably like them in the kitchen instead of having loads of books, you could compile them into one. Grete: Ok, thank you very much for helping us out 11.7.5 Our Market Segmenting Criteria CookiFI has identified our market segment criteria of our target markets and the assumptions based on each segmented market. Base Type Segmented Explanation Market Manage cooking Demographic 20+. Demographic: predominantly female. 129 2010 lifestyle i.e. The level of education attainment will vary Families because users will want a device to monitor their cooking lifestyle. Social Class: Upper-to-Middle class Income Characteristics: will depend on disposable income and how much a health conscious and a user will be willing to pay for a physical device. Life stage The life stage that we are assuming is from adult hood Geographic Whole geographic coverage of France West Switzerland French Speaking: Belgium Geo-demographic A relationship between the type of housing and location that people live in and their purchasing behaviours Psychological Psychographic Users who want to manage their cooking lifestyle. (Lifestyles) Children‟s preferences for meals. Menu‟s planned in advance so the head of the householder knows exactly what they need Busy lifestyles: needs a recipe planner and a shopping list Benefits sought Maintain + monitor food consumption Find a wide variety of healthy recipes or recipes that their family will eat Manage cooking lifestyle 130 2010 Base Type Health conscious Segmented Market Demographic Explanation Starting from teenager years +. user: monitoring Demographic: predominantly female. weight The level of education attainment will vary because users will want a device to monitor their weight. Social Class: Upper-to-Middle class Income Characteristics: will depend on disposable income and how much a health conscious and a user will be willing to pay for a physical device. Life stage Adulthood Geographic Whole geographic coverage of France West Switzerland French Speaking: Belgium Psychological Psychographic Users who want to maintain their weight; Peer pressure and acceptance of weight Motivation to maintain weight Weightwatchers iPhone cooking application + myDemy are similar products Benefits sought Maintain + monitor food consumption Find a wide variety of healthy recipes Manage cooking lifestyle Plan meals according to calorie consumption 11.8 Future Expansion We have considered the possible markets to penetrate after year 3; Norway – population 4,676,305 Sweden – population 9,074,055 131 2010 Finland - population 5,255,068 11.8.1 Norway Expenditure on food in Norway rose by a significant 29.3% to NKr104.8 billion between 1995 and 2008. However, food budgets in Norwegians households have been shrinking, and on average they now spend just over 12% of their budget on food compared to 40% in 1958. Hypermarkets, retail stores selling a variety of goods in different categories, have a 9.6% market share (Euromonitor 2010). 11.8.1.1 Food Preparation Norwegians like to prepare more elaborate dinners on weekends served with wine or beer. Increased foreign travel has resulted in Norwegians developing a taste for international and more exotic foods. According to SSB, the time spent preparing meals has increased by seven minutes for men and decreased by 15 minutes for women since 1980. Men are now spending 20 minutes and women 50 minutes on preparing meals. Due to hectic lifestyles, there is less time to prepare meals. As a result, more family members get involved in cooking household dinners. Men in Norway are preparing more food than before as men now increasingly take on more household responsibilities. People ages 16-24 spend the least amount of time on meals. This group largely represents full-time students with part-time work and who therefore have less time to cook. However, more time is used for weekend meals (Euromonitor 2010). 11.8.2 Beginners Cooks The lack of cooking skills and a tendency towards very basic food preparation amongst an increasing number of Norwegians makes them increasingly reliant on prepared meals. This plus hectic lifestyles have spurred the strong growth of ready-to-eat meals (RTE) produced by different players in the food market (Euromonitor 2010). 132 2010 11.8.3 Sweden A 2009 survey by the Swedish Meat Information group reported that poor eating habits and low levels of cooking skills amongst young Swedes is a myth. Four out of 10 Swedes between the ages of 15 to 25 years-old cook every day and eight out of 10 that have moved out of their parental homes cook at least three times a week. Eighty percent report that they interested in cooking and 25 % report being very interested. Seventy-four percent report they are good at it. The interest in food and cooking among young Swedes is likely to continue, particularly as recession forces people to gather at home more often instead of going to spend their money in bars and restaurants (Euromonitor 2010). 11.8.4 Finland According to a Finfood study in 2006 based on 758 university students, the six most popular meals among university students were as pasta, lasagne, chicken, fish , steak and escallops, and pizza. Men tend to favour meat and females healthy vegetables and soups. Most likely the favourite foods will remain after studies. This indicates that Italian cuisine (45% of the students preferred) is popular among Finns. In general, healthy eating habits are also increasing in Finland. In addition to buying in bulk, the shift in shopping trends towards large hypermarkets boosted sales of private labels. In large supermarkets/hypermarkets retailers have plenty of opportunities to promote their private label products. Kesko in particular actively promoted a wide range of products under its Pirkka umbrella brand (EuroMonitor 2010). 11.9 Possible Markets 11.9.1 UK 11.9.1.1 Obesity Overweight and obesity are increasing. The percentage of adults who are obese has roughly doubled since the mid-1980's (UK Obesity Statistics 2010). 133 2010 UK Overweight UK Clinically Obese Women Men Women Men 46% 32% 21% 17% Source: UK Obesity Statistics 2010 UK Overweight/Obese 16-24 UK Overweight/ Obese 55-64 Women Men Women Men 27% 28% 68% 76% Source: UK Obesity Statistics 2010 11.9.1.2 Home Ware Appliances Between 1995 and 2007, overall UK expenditure on household goods and services grew by 31.1%, reaching £47.8 billion in 2007. Consumers became more fashion-conscious in relation to their homes. As a result, they chose to remodel and redecorate their homes with greater frequency, often buying new home wares, furniture and even home appliances and consumer electronics to match their new home “look” (Euromonitor 2010). 11.9.1.3 Beginner Cooks – Lack of Cooking Skills Faster consumer lifestyles have made convenience central to UK eating habits. With longer working hours and increased commuting times, more and more consumers no longer cook and are turning instead to convenience and snack foods. Moreover, an increasing number of people in the UK lack basic food preparation and cooking skills, making them increasingly reliant on prepared meal (Euromonitor 2010). 11.9.1.4 Eating Habits Overall, the eating habits of many UK consumers remain fundamentally unhealthy. According to a 2005 study published in the Journal of Epidemiology and Community Health, poor dietary habits in the UK cost the NHS £6 billion annually, more than three times the cost of smoking. 134 2010 11.9.2 Ireland 11.9.2.1 Obesity Obesity is soaring in Ireland. According to a SLAN 2007 report which indicates that 39% of the population of the Republic of Ireland are overweight and 25% are obese Northern Ireland Executive 2008). Ireland has been revealed one of the highest rates of childhood obesity in the world, with one in 10 children aged between Five and 12 in Ireland being classed as obese (Irish Health 2010). In a recent survey conducted by the Irish Medical Times of 100 GPs, 60% cited obesity as the number one threat to our health (The Southern Star 2009). 11.9.2.2 Eating Habits In spite of the increasingly cosmopolitan nature of Irish society, Irish eating habits have remained relatively stable. The traditional Irish main meal of meat and potatoes accompanies by vegetables remains alive and well, even if the consumption of rice, noodles and pasta is growing at the expense of potatoes. Between 1998 and 2007, per-capita consumption of rice grew by almost 50%, to 3.2kg, with per-capita consumption of pasta and noodles exhibiting similar growth. Although bread, potatoes and dairy products are consumed by almost everybody in Ireland, foreign travel has broadened the culinary horizons of the Irish nation. Ireland‟s rapidly expanding immigrant community has also contributed to an increase in diversity on Irish supermarket shelves, with products of Polish origin now found on the shelves of both Dunnes Stores and Tesco outlets (Euromonitor 2010). 11.9.2.3 Spending on Household goods and services Expenditure on household appliances grew by 118.5%, to €857.2 million. This strong growth was also partly been driven by the trend towards cocooning; consumers are more inclined to spend money on their homes to create a certain look or ambience for entertaining guests, which is becoming more popular in Ireland. Increased affluence also led to the premiumisation of Irish tastes in home appliances, with more exclusive brands gaining in popularity as consumer decision-making regarding the purchase of such items as refrigerators became more influenced by their appearance. There is also increased consumer awareness of interior design through magazines and TV programmes. An increasing number of people regard their homes as an extension of themselves and think that it should reflect their 135 2010 personality. As a result, they are willing spend significant sums of money to get the right result (Euromonitor 2010). 11.10 Google Advertising This is how we propose to set up the Google online marketing campaign. For the online marketing campaign Google AdWords account was set up. Figure 47: Google AdWords Account Creation 1 The account was set up to the product: CookiFI as can be seen from the screenshot below. 136 2010 Figure 48: Google AdWords Account Creation 2 Figure 49: Google AdWords Campaign Creation 137 2010 Following the account setup and login the first campaign was created. Figure 50: Google AdWords Campaign View Campaign name is CookiFI device. Three ads were put under the campaign and keywords were added. 138 2010 Figure 51: Google AdWords Campaign Settings 139 2010 Figure 52: Google AdWords Ad Creation 1 140 2010 Figure 53: Google AdWords Ad Creation 2 141 2010 Figure 54: Google AdWords Ad Settings 11.11 11.11.1 Contact List Manufacturers of Tablets Manufacturer Address Contact Quote SunSing Rm.805, 8/F, Block Dralin Zeng $124.6 base on for Technology Co Ltd B12 ,NanjingXincun, Tel: 86 755 61580566 10,000 Minzhi St., Longhua. Mobile: +86 135 3037 9937 142 2010 Long da Digital No. 1208 Room, International Trade International CO Business Building, Jolin Chen $179 Kenneth Metral $102 (7”) Bing Jiang Road, Chengdu City, Sichuan, China. United States Belvia Corporation 11.11.2 People Contacted Name Location Job description Lisa Knox Dublin, Ireland Nutritionist Jean-Michel Cahier Cork, Ireland Restaurant Owner, Chef 11.12 11.12.1 Distributed Stores France Fnac.com: CookiFI digital cookbook will be distributed on Fnac.com under the formula pro account. This pro account is priced at €39.90 and also distributed in FNAC‟s 143 stores. It is a retailer of technological products in France, Belgium, Spain and Italy. It is also active in Switzerland, Brazil, Italy, Portugal and Greece. The advantage lies under that we will have an extra presence on-line as it is the number one retail website in France. FNAC Retail stores: We will enter into an agreement with FNAC with regards to distributing CookiFI to their stores. It has 2.3 million members, 18 million customers a year and 150 million visits to stores in France (PPR 2010). Amazon Fulfilment: since CookiFI is not in the Amazon catalogue, we will choose the professional seller option as we expect to sell more than 35 items per month. This allows us to have unlimited sales for a monthly description of £28.75 and pay a referral fee of 17.25% 143 2010 on the product price of the item (Amazon 2010). Amazon has direct operations in France (CrunchBase 2010). CookiFI will join fulfilment by Amazon. This program works in five steps; We send CookiFI to Amazon Amazon stores the number of units of CookiFI Customers purchases CookiFI Amazon picks and packs CookiFI Amazon ships CookiFI to customers Amazon will designate a fulfilment centre in France depending on what the item is and our location. Amazon provides tools to create item and shipping labels and to see the status of our shipping and receiving into fulfilment centres. Amazon will store CookiFI inventory in their warehouses and will notify us when inventory arrives. CookiFI will only have to pay for the average amount of storage that they have during the month translating into we only have to pay storage for what is in the warehouse while it is there. Customers receive returns and customer services directly from Amazon.fr. Whether a customer picks through our website or through Amazon.fr, they will pick, pack and ship CookiFI to our customers. Amazon will ship CookiFI to customers (Amazon 2010). Carrefour: A survey undertaken by a French Distribution specialist N Michael highlights that French People tend to visit big food stores with a preference towards hypermarkets like Carrefour (Euromonitor 2010). Boulanger: is a multi specialist in leisure, multimedia and home appliances (Boulanger 2010). The aim would be to distribute to Boulanger as this store offers a wide variety of domestic technology. On their website and in their stores, they have a dedicated section to food preparation. This could be the perfect location in terms of staging demonstrations of how CookiFI can assist in preparation and cooking of meals. 144 2010 Darty: is one the leading electrical retailers in France, with 200 stores (Darty 2010). CookiFI could also be distributed in a electrical retailer like Darty especially if CookiFI is to become known as a home appliance and a standard in the kitchen. Galeries La Fayette: was first established in 1893, located near the Opera Garnier. It is known as a one pit stop for fashion enthusiasts as well as home furnishings (Go Paris 2010). Since, we are targeting users buying CookiFI for gift purposes; this department store is perfect to target such a target market. 11.12.2 Belgium Unigro: Unigro has been in business for over 60 years specialising in high quality furniture and decor, linen, image and sound, kitchen and maintenance, electrical etc. This company comes under the form of mail order firm and has an on-line presence. It may be in our benefit to consider the option of featuring in a mail order catalogue (Unigro 2010). Vanden Borre: Vanden Borre is a Belgian electrical store, stocking items from fridges to cameras. It has over 58 outlets and CookiFI feels that this is perfect geographical coverage in order to target our target groups and we hope to enter into negotiation with Vanden Borre with the possibility of stocking CookiFI in their stores (Vanden Borre 2008). 11.13 Distributed Stores Locations 11.13.1 Fnac – France Fnac Stores Fnac Aix-en-Provence Address 160 avenue Giuseppe Verdi Contact Tel : 0825 020 020 Les Allées Provençales Aix-enProvence 13100 Fnac Amiens 12, rue des Trois Cailloux Amiens Tel : 0825 020 020 80000 Fnac Angers 25, rue Lenepveu Angers 4902 Tel : 0825 020 020 Fnac Annecy Centre commercial Courier Tel : 0825 020 020 65, rue Carnot Annecy 74000 145 2010 Fnac Avignon 19, rue de la République Avignon Tel : 0825 020 020 84000 Fnac Avignon - Le Pontet Centre Commercial Avignon Tel : 0825 020 020 Nord Avignon 84130 Fnac Bayonne Soult Bayonne 64100 Tel : 0825 020 020 Fnac Belfort Faubourg de France Belfort 90000 Tel : 0825 020 020 Fnac Bordeaux 50, rue Ste Catherine Bordeaux Tel : 0825 020 020 3300 Fnac Bordeaux-Lac Centre commercial Auchan Tel : 0825 020 020 Quartier du lac Bordeaux 33300 Fnac Boulogne Centre commercial Les Passages Tel : 0825 020 020 de l'Hôtel de Ville 5, rue Tony-Garnier BoulogneBillancourt 921 Fnac Bourges 8, rue Moyenne Bourges 18000 Tel : 0825 020 020 Fnac Brest Centre commercial Tel : 0825 020 020 Espace Jaurès 65, rue Jean-Jaurès Brest 29218 Fnac Caen Centre Paul-Doumer Caen 14000 Tel : 0825 020 020 Fnac Cannes 83, rue d'Antibes Cannes 06400 Tel : 0825 020 020 Fnac Cergy Centre commercial Les 3 Tel : 0825 020 020 Fontaines rer A : Cergy Prefecture Cergy 95014 Fnac Chartres 18 rue Noël Ballay Chartres Tel : 0825 020 020 28000 Fnac Clermont-Ferrand Centre commercial Jaude Tel : 0825 020 020 Clermont-Ferrand 63000 Fnac Colmar 1, Grand'Rue Colmar 68000 Tel : 0825 020 020 Fnac Créteil Centre commercial Créteil Soleil Tel : 0825 020 020 Porte 13 Créteil 94012 Fnac Croix-Blanche 17 rue des Petits Champs Sainte- Tel : 0825 020 020 146 2010 Geneviève-des-Bois 91700 Fnac Dijon 24, rue du Bourg Dijon 21000 Tel : 0825 020 020 Fnac Evry Centre Commercial Régional Tel : 0825 020 020 Evry 2 2 boulevard de l'Europe Evry 91022 Fnac Gennevilliers Parc Commercial Chanteraines - Tel : 0825 020 020 112 av du Général De Gaulle Gennevilliers 92230 Fnac Grenoble - Grand Place 119, Grand'Place Tel : 0825 020 020 Centre commercial Grenoble 38100 Fnac Grenoble - Victor Hugo 4, rue Félix-Poulat Grenoble Tel : 0825 020 020 38000 Fnac Herblay 9 mail des Copistes Tel : 0825 020 020 ZAC des copistes Herblay 95220 Fnac La Défense-CNIT 2, place de La Défense La Tel : 0825 020 020 Défense 92053 Fnac La Valentine Centre commercial La Valentine Tel : 0825 020 020 Route de la sablière Cedex 11 Marseille 13011 Fnac Labège Centre commercial Labège 2 Tel : 0825 020 020 Labege 31670 Fnac Le Havre Espace René-Coty Tel : 0825 020 020 22, rue Casimir-Perier Le Havre 76600 Fnac Le Mans entre commercial Les Jacobins Tel : 0825 020 020 13, rue Claude-Blondeau Le Mans 72000 Fnac Lille 20, rue Saint-Nicolas Lille 59000 Tel : 0825 020 020 Fnac Limoges BP 30190 Tel : 0825 020 020 147 2010 8 rue des Combes Limoges 87005 Place Aristide Briand Lorient Fnac Lorient Tel : 0825 020 020 56100 85, rue de la République Lyon Fnac Lyon Bellecour Tel : 0825 020 020 69002 Centre Commercial Part-Dieu Fnac Lyon Part-Dieu Tel : 0825 020 020 Lyon 69003 Fnac Marseille Centre Bourse Marseille 13001 Tel : 0825 020 020 Fnac Metz Centre commercial Saint-Jacques Tel : 0825 020 020 Metz 57000 Centre commercial Le Métropole Fnac Monaco Tel : 0825 020 020 Monaco 98000 Centre commercial Le Polygone Fnac Montpellier Tel : 0825 020 020 1, rue des Pertuisanes Montpellier 340 54, rue du Sauvage Mulhouse Fnac Mulhouse Tel : 0825 020 020 68100 Fnac Nancy 2, avenue Foch Nancy 54000 Tel : 0825 020 020 Fnac Nantes Place du Commerce Tel : 0825 020 020 B.P 63215 Nantes 44032 La RIVIERA Fnac Nice Tel : 0825 020 020 44-46 avenue Jean Médecin Nice 06008 Fnac Nîmes La Coupole des Halles Nimes Tel : 0825 020 020 30000 Fnac Noisy-le-Gran Centre commercial Arcades Tel : 0825 020 020 Clos Mont d'Est Noisy-le-Grand 93160 Fnac Orléans 16, rue de la République Orléans Tel : 0825 020 020 45000 Fnac Parinor Centre commercial régional Tel : 0825 020 020 148 2010 O'parinor Le Haut de Galy Aulnay Aulnay-sous-Bois 93600 Fnac Paris - Champs-Elysées Tous produits Tel : 0825 020 020 (Sélection livre) Galerie du Claridge 74, avenue des Champs-Elysées Paris 75008 Fnac Paris - Forum des Halles 109 Porte Berger Paris 7500 Tel : 0825 020 020 Fnac Paris - Italie 2 Centre commercial Italie2 Tel : 0825 020 020 30, avenue d'Italie Paris 75013 Fnac Paris – Montparnasse 136, rue de Rennes Paris 75006 Tel : 0825 020 020 Fnac Paris – Odéon 77-81,Bd St-Germain Tel : 0825 020 020 Métros Odéon, St-Michel ou Cluny-La Sorbonne RER B,RER C St Michel Notre dame Paris 75006 Fnac Paris - Saint-Lazare Passage du Havre Tel : 0825 020 020 109, rue Saint-Lazare. PARKING Public - 105 rue Saint Lazare. Paris 75009 Fnac Paris - Ternes 26-30, avenue des Ternes Paris Tel : 0825 020 020 75017 Fnac Parly 2 Centre commercial Parly 2 Tel : 0825 020 020 52, avenue Dutartre Le Chesnay 78150 Fnac Pau Palais des Pyrénées Tel : 0825 020 020 avenue De Lattre De Tassigny Pau 64000 Fnac Perpignan Espace Dames de France Tel : 0825 020 020 Place de Catalogne Perpignan 149 2010 66000 Fnac Poitiers 4, rue Henri-Oudin Poitiers 86000 Tel : 0825 020 020 Fnac Reims Espace Drouet d'Erlon Reims Tel : 0825 020 020 51100 Fnac Rennes Centre commercial Colombia Tel : 0825 020 020 Rennes 35000 Fnac Rosny 2 Centre commercial Rosny 2 Tel : 0825 020 020 Avenue du Général-de-Gaulle Rosny-sous-Bois 93117 Fnac Rouen 8, allée Eugène-Delacroix Tel : 0825 020 020 Espace du Palais Rouen 76000 Fnac Saint-Etienne Centre commercial Dorian Tel : 0825 020 020 16, rue Louis Braille SaintEtienne 42000 Fnac Saint-Maximin Rue de l'égalité, ZAC du bois des Tel : 0825 020 020 fenêtres - St-Maximin Creil 60740 Fnac Strasbourg Centre commercial La Maison Tel : 0825 020 020 rouge 22, place Kléber Strasbourg 67080 Fnac Thiais 39, rue de la résistance Thiais Tel : 0825 020 020 9432 Fnac Toulon Centre Commercial Mayol Tel : 0825 020 020 Rue du Murier Toulon 83000 Fnac Toulouse - Micro Jeanne- 77, rue Alsace-Lorraine Toulouse d'Arc 31000 Fnac Toulouse - Wilson 16, allées Franklin-Roosevelt Tel : 0825 020 020 Tel : 0825 020 020 Toulouse 31000 Fnac Tours Centre commercial Tel : 0825 020 020 Les Galeries nationales 72, rue Nationale Tours 37000 150 2010 Fnac Troyes Le Mail Tel : 0825 020 020 5, rue de la République Troyes 10000 Fnac Val d'Europe Centre Commercial International Tel : 0825 020 020 Val d'Europe 14, cours du Danube Espace 334 - Serris Marne-laVallée 77711 Fnac Valence Centre commercial Victor-Hugo Tel : 0825 020 020 17, avenue Victor-Hugo Valence 26000 Fnac Valenciennes Centre Commercial Place d'armes Tel : 0825 020 020 Valenciennes 5930 Fnac Vannes Parc de Kerlann Tel : 0825 020 020 46 rue Théophraste Renaudot Vannes 56000 Fnac Vélizy Centre commercial Vélizy 2 Tel : 0825 020 020 2, avenue de l'Europe Vélizy Villacoublay 78140 Fnac Villebon CC Villebon 2, avenue de la Tel : 0825 020 020 plesse Villebon 91140 Fnac Villiers-en-Bière Centre Commercial - Lieu-dit : Tel : 0825 020 020 Pièce du Chapeau Route National N°7 -Route départementale N°24 Villiers-enBière 77190 Source: FNAC 2010 151 2010 11.13.2 Fnac Belgium Fnac Stores Address Contact Fnac City2 Nieuwstraat Tel. : 02 275 November 1911 Brussels 123/401 Fax: 02 275 21 00 1000 Brussels Email: [email protected] Fnac Ghent Rue 88 9000 Gent Tel. : 09 223 40 80 Fax: 09 224 June 1993 Email: [email protected] Fnac Leuven Vital Tel. : 016 75 December 1911 Decosterstraat 7 Fax: 016 75 December 1912 Federal Pleasure Avenue 32 3000 Leuven 3 Rue Joffre Tel. : 04 232 71 11 4000 Lièg Fax: 04 222 21 13 Markt 18-19 Tel. : 050 47 62 62 8000 Brugge Fax: 050 47 62 46 Fnac Brussels Toison 17a-20 Tel. : 02 402 26 26 Toison d'Or 1050 Brussels Fnac Antwerpen Green City Tel. : 03 213 1956 1911 2000 Antwerp Fax: 03 232 97 32 Fnac Liege Fnac Brugge Email: [email protected] Fnac Louvain- Centre commercial Tel.: 010 48 71 11 La-Neuve "L'esplanade" Fax: 010 48 71 98 Place de l'accueil, Email: [email protected] 152 2010 10 1348 Louvrain-LaNeuve Fnac Wijnegem Shopping Center Tel. : 03 355 22 00 Turnhoutsebaan 5 Fax: 03 353 97 95 2110 Wijnegem Email: [email protected] Source: FNAC 2010 11.13.3 Fnac Stores: Switzerland Fnac Stores Fribourg Address Contact Fribourg Centre Phone : 026 351 13 13 Avenue de la Gare 10 Genève-Balexert Genève-Rive Lausanne 1700 Fribourg Avenue Louis-Casaï 27 - Phone : 022 979 44 44 C.P. 2890 Fax : 022 979 44 1 1211 Genève 16, rue de Rive 1211 Genève Rue de Genève, 6 Phone: 021 213 85 85 CP 6129 Fax: 021 213 85 12 Phone : 022 816 12 12 1002 Lausanne Source: FNAC 2010 153 2010 11.13.4 Vanden Borre Stores: Belgium Vanden Borre Address Store Bruxelles centre Louvain-La-Neuv Place De L'Accueil e Centre 1348 commercial de Louvain-La-Neuve L'Esplanade Shopping City 2 - Leuven Rue Neuve, 123 1000 Bruxelles Bruxelles – Ixelles Tiensesteenweg, 395 3010 Kessel-lo Boortmeerbeek Leuvensesteenweg, Chaussée d'Ixelles, 367 84/86 3190 Boortmeerbeek 1050 Bruxelles Bruxelles - Chaussée de Schaerbeek Louvain, 610/640 Drogenbos Rue de Stalle, 219 1620 Drogenbos Centrale zetel 1030 Bruxelles Slesbroekstraat, 101 1600 Sint Pieters Leeuw Bruxelles - Basilix shopping Berchem Sainte center - Avenue 26 Agathe Charles Quint, 420 3290 Diest 1080 Bruxelles Diest Herentals Leuvensesteenweg, Augustijnenlaan-Rin Bruxelles - Woluwe Shopping g Woluwe St Center - Boulevard 2200 Herentals Lambert de la Woluwe Lier 1200 Bruxelles Bruxelles - Westland Shopping Anderlecht Center - Boulevard Sylvain Dupui Wavre Waterloo Donk, 54 2500 Lier Schilde Turnhoutsebaan, 401 2970 Schilde Wijnegem Wijnegem shopping 1070 Bruxelles center - Rue J. Wauters, 87 Turnhoutsebaan, 5 1300 Wavre 2110 Wijnegem Chaussée de Mortsel Bruxelles, 281 1410 Waterloo Statielei, 20 2640 Mortsel Turnhout Steenweg op Gierle, 154 2010 180 Mol 2300 Turnhout Deurne Merksem Turnhoutsebaan, 79 2400 Mol Mechelen - Zemst 441 A Bredabaan 2800 Mechelen Kapellen 891-893 2170 Merksem Hasselt Wilrijk Sint-Truiden 3730 2170 Merksem 3800 Sint-Truiden Leysstraat, 12-14 Boomsesteenweg Genk Hasseltweg, 77 3600 Genk Herstal Centre Commercial (vers Anvers), 925 Basse Campagne - 2610 Wilrijk Rue des Naiveux, 16 Boomsesteenweg 4040 Herstal Liège - Médiacité Boulevard Raymond 2610 Wilrijk Poincaré, 7 Laar, 28 4020 Liège 2400 Mol Mechelen - Zemst Schurhovenveld, l'autoroute), 974 (vers Boom), 696 Mol Genkersteenweg, 84 3500 Hasselt 2000 Antwerpen Wilrijk Hoevensebaan, 17 2950 Kapellen Bredabaan (près de la sortie de Meir Brusselsesteenweg, 2100 Deurne (Winkelstap), Merksem Laar, 28 Verviers Rue Du Gazomètre, Brusselsesteenweg, 1 441 A 4800 Verviers 2800 Mechelen Boncelles Route Du Condroz, 44 Meir Leysstraat, 12-14 2000 Antwerpen Wilrijk 4100 Boncelles Andenne Avenue de Belle Boomsesteenweg Mine, 23 (vers Anvers), 925 5300 Andenne 2610 Wilrijk Jemappes Avenue Wilson, 510 155 2010 7012 Jemappes Gosselies Aalst 351A Centre commercial 9300 Aalst City Nord - Rue de la Renaissance, 6 Gent Rue des Roselières, Lokeren n 7503 Froyennes 9160 Lokeren Route de la Basse Sambre 6061 Montignies St-Denijs-Westre Kortrijksesteenweg, m 1200 9051 s/Sambre Roeselare St-Denijs-Westrem Brugsesteenweg, 356 Dendermonde 9200 Dendermonde Maalsesteenweg, 328 Ninove Kuurne Gentseweg, 595 8793 Sint-Eloois-Vijve Knokke Oudenaarde St. Niklaas - Kapelstraat 100 Waasland 9100 Sint-Niklaas Shopping Center Ronse Oosterzelesteenweg, 5 Cesar Snoecklaan, 29 Lippenslaan, 191 9600 Ronse 8300 Knokke-Heist Wetteren Kraneveld, 87 9700 Oudenaarde Ringlaan, 11 8520 Kuurne Waregem 9402 Meerbeke Oostendelaan, 306 8430 Middelkerke Brusselsesteenweg, 208 8000 Brugge Middelkerke Mechelsesteenweg, 3 8800 Roeselare Brugge Hoek Oeverstraat-Zelebaa 6 Charleroi Martelaarslaan, 307 9000 Gent 6041 Gosselies Froyennes Gentsesteenweg, Eeklo Stationstraat, 82 9900 Eeklo 9230 Wetteren 156 2010 11.14 Cooking book publishers in France Cooking Book Publishers Address Contact Alain Ducasse Editions/Les Alain Ducasse Phone: +33 (0)1/58 00 21 Editions Culinaires Editions/Les Editions 66 Culinaires Fax: 58 00 21 82 84 avenue Victor Cresson 92130 Issy-lesMoulineaux Issy-les-Moulineaux Profile of Archipel Studio, Archipel Studio Phone: +33 (0)1/44 64 83 Paris, France 16 rue Claude-Tillier 40 75012 Paris Fax: 44 64 09 09 Paris Cherche Midi Editeur Cherche Midi Editeur Phone: +33 (0)1/42 22 71 23 rue du Cherche-Midi 20 75006 Paris Fax: 45 44 08 38 Paris Editions Artemis Editions Artemis Phone: +33 (0)4/73 19 58 ZA Les Vignettes 2 rue 80 du Colombier Fax: 73 19 58 99 63400 Chamalières Chamalières Editions Filipacchi Editions Filipacchi Phone: +33 (0)1/41 34 90 149 rue Anatole France 69 92534 Levallois-Perret Fax: 41 34 90 70 Cedex Levallois-Perret Edtions Solar Place des Edtions Solar Place des Phone: +33 (0)1/44 16 05 Editeurs Editeurs 00 12 avenue d'ltalie Fax: 44 16 05 19 75627 Paris Cedex 13 157 2010 Paris Flammarion Illustrated Flammarion Illustrated Phone: +33 (0)1/40 51 31 Books in English Books in English 04 87 quai Panhard et Fax: 43 26 57 65 Levassor 75013 Paris Paris Plume De Carotte Plume De Carotte Phone: +33 5 62720876 28 impasse des Bons Fax: +33 5 62875914 Amis Toulouse 31200 France Source: Publishers Global 2010 11.15 TradeMark Search – the trademark and Design Registration Office of the European Union CookiFI Figure 55: Trademark Search 1 (Source: The trademark and Design Registration Office of the European Union 2010) 158 2010 Figure 56: Trademark List (Source: The trademark and Design Registration Office of the European Union 2010) CookiFI Figure 57: Trademark Search 2 (Source: The trademark and Design Registration Office of the European Union 2010) 159 2010 Figure 58: No Trademarks Found Result (Source: The trademark and Design Registration Office of the European Union 2010) 11.16 Social Media Marketing Report Social Media Marketing Report can be found as a separate document after the business plan. 160 2010 11.17 Sales Plan Report Sales Plan Report can be found as a separate document after the business plan. 11.18 Technical Report Full *Technical Report can be found as a separate document after the business plan. 161 2010 11.19 Finance Report Full finance report can be found added separately after the business plan. 162 2010 Acknowledgements We would like to sincerely thank our supervisors; Dr. Teresa Hogan and Professor Mike Scott for their invaluable help and Dr. Cathal Gurrin and Dr. Theo Lynn for their support. We would also like to sincerely thank Lilian Haruoja for designing and allowing us to use our logo for practicum purposes and Kristel Sarri for taking potential pictures to use in our emulator. 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