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    This document provides a step-by-step breakdown for creating a business model to sell organic food items online in Pakistan. It discusses product selection, sourcing, costs, market size, marketing, pricing, distribution, feasibility analysis, financial projections, and compliance considerations.

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    Team A

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    f2020381145
    19 views6 pages
    This document provides a step-by-step breakdown for creating a business model to sell organic food items online in Pakistan. It discusses product selection, sourcing, costs, market size, marketing, pricing, distribution, feasibility analysis, financial projections, and compliance considerations.

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    This document provides a step-by-step breakdown for creating a business model to sell organic food items online in Pakistan. It discusses product selection, sourcing, costs, market size, marketing, pricing, distribution, feasibility analysis, financial projections, and compliance considerations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views6 pages

    Team A

    Uploaded by

    f2020381145
    This document provides a step-by-step breakdown for creating a business model to sell organic food items online in Pakistan. It discusses product selection, sourcing, costs, market size, marketing, pricing, distribution, feasibility analysis, financial projections, and compliance considerations.

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    © All Rights Reserved
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    Creating a business model for selling organic food items online to the urban population in

    Pakistan requires a detailed analysis of various aspects. Here's a step-by-step breakdown of the

    business model:

    **1. Product Selection: **

    - Desi ghee, honey, spices, grains, and dairy products.

    **2. Sourcing: **

    - You can from local farms and home-based producers who follow organic farming practices.

    Ensure that the products meet quality and safety standards.

    **3. Manufacturing Cost: **

    - Calculate the manufacturing cost, which includes expenses for sourcing raw materials,

    processing, packaging, and overheads. Consider transportation costs as well.

    Sourcing organic food items from local farms and producers may cost around 50-70% of the

    retail price.

    Processing, packaging, and overhead costs may make up the remaining 30-50%.

    Transportation costs will vary depending on the distance between the source and your processing

    facility.

    For example, if your retail price for a 500ml jar of desi ghee is PKR 1,000, the manufacturing

    cost may be approximately PKR 500-700, leaving a gross profit margin of PKR 300-500 per jar.
    **4. Market Size and Target Population: **

    - Conduct market research to determine the size of the urban population interested in organic and

    traditional food products.

    - Identify your target audience, which could include health-conscious consumers, food

    enthusiasts, and individuals looking for high-quality, chemical-free food.

    **Hypothetical Market Size: **

    1. **Urban Population**: According to Pakistan's Bureau of Statistics, as of my last knowledge

    update in September 2021, approximately 36% of Pakistan's population lives in urban areas. This

    percentage is expected to increase over time due to urbanization.

    2. **Health-Conscious Consumers**: Assume that around 15-20% of the urban population in

    Pakistan is health-conscious and actively seeks organic and traditional food products.

    3. **Average Household Size**: Assume an average household size of 4 people.

    4. **Frequency of Purchase**: Assume that health-conscious consumers make organic food

    purchases once every two months on average.

    5. **Average Purchase Amount**: Assume an average purchase amount of PKR 2,000 per

    transaction.

    Now, let's calculate the hypothetical market size:

    **Urban Population in Pakistan (2021): **

    - Approximately 36% of Pakistan's population.


    - Estimated population: 36% of Pakistan's total population (e.g., 225 million in 2021) = 81

    million people.

    **Health-Conscious Consumers: **

    - 15-20% of the urban population.

    - Estimated health-conscious consumers: 15-20% of 81 million = 12.15 million - 16.2 million

    people.

    **Average Household Size: **

    - Assume an average household size of 4 people.

    **Frequency of Purchase: **

    - Assume health-conscious consumers make organic food purchases once every two months on

    average.

    **Average Purchase Amount: **

    - Assume an average purchase amount of PKR 2,000 per transaction.

    Now, let's calculate the hypothetical annual market size based on these assumptions:

    - Number of transactions per year per health-conscious consumer: 6 (bi-monthly purchases).

    - Total annual revenue generated by one health-conscious consumer: 6 transactions * PKR 2,000

    = PKR 12,000.

    - Total annual market size:


    - Low-end estimate: 12.15 million health-conscious consumers * PKR 12,000 = PKR 145.8

    billion.

    - High-end estimate: 16.2 million health-conscious consumers * PKR 12,000 = PKR 194.4

    billion.

    **5. Marketing: **

    - Build an online presence through a website and social media platforms.

    - Emphasize the health benefits, authenticity, and purity of your products.

    - Use digital marketing techniques such as SEO, social media advertising, and email marketing

    to reach your target audience.

    - Collaborate with influencers and food bloggers to promote your products.

    **6. Pricing Strategy: **

    - Research competitors' pricing and set competitive but profitable retail prices.

    - Consider offering different package sizes to cater to various customer segments.

    - Offer discounts or loyalty programs to encourage repeat purchases.

    **7. Distribution: **

    - Partner with reliable courier services for timely and safe delivery.

    - Consider offering cash-on-delivery options to accommodate different customer preferences.


    **8. Feasibility: **

    **Pros: **

    - Growing interest in organic and traditional food products in Pakistan due to health

    consciousness.

    - Access to a wide range of organic produce from local farms.

    - The online market allows you to reach a broader customer base.

    - The potential for scalability and expansion into other related product categories.

    **Cons: **

    - Competition from established brands and local markets.

    - Quality control and consistency in sourcing organic products can be challenging.

    - Initial investment in building an online platform and marketing efforts.

    - Logistics and distribution challenges, especially in remote areas.

    **9. Financial Projections: **

    - Create financial projections, including revenue, expenses, and expected profits for the first few

    years of operation. This will help you assess the business's financial feasibility.

    **10. Legal and Regulatory Compliance: **


    - Ensure compliance with food safety and labeling regulations in Pakistan.

    In conclusion, selling desi ghee and organic food items online to the urban population in Pakistan

    is a feasible business opportunity with the potential for growth. Success will depend on your

    ability to source high-quality products, effective marketing, and efficient logistics. Conduct

    thorough market research and financial planning to make informed decisions and mitigate risks.

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