Kenko Foods Case Study

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Figure 7 shows the MBS for Kenko Foods. In the following sections, each one building block will be explained. 3.1. Customer Segments
We are targeting healthy conscious - fast pace professionals, students and households, leaving in high density areas. According to Shiu et al. (2004), the region of residence, gender and age are the most relevant variables to segment the convenience and healthy-oriented markets. Professionals and students in mayor UK cities, between 21-40 years would the segment that would be most likely to buy a healthy and easy to consume food alternative for quick lunches or short breaks. The same study also identified that there is no significant demographic variable to segment households so we have focused in the general
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Value Proposition
We have developed healthy soups, based on dehydrated vegetables and meats, recreating international and local tastes, as our way to create value to our target customers.
We believe that healthy conscious students might value healthy soups with traditional flavours, easy to purchase, of quick consumption and at a low price range. Healthy conscious and fast pace professionals will demand a higher range of flavours and with a more flexible budget. For both segments the product will be served warm, with a tap and a spoon taped to the bottom of the cup, for convenient transport and consumption.
For healthy-fast pace households we have developed two presentations for its delivery: packs of six and twelve cups, with mixed or single flavour products. The product will be sealed and will also include the spoons taped to the bottom of the cup.
3.3. Channels
The channels through which we will be interacting with our customers, shown in section 4.1, are:
• Vending machines for healthy-fast pace professionals and healthy conscious students. This channel provides, low real state expense and labour costs, 24 hours income-producing work and easy cash flow management. Some of the disadvantages to consider are fraud cases, heavy taxation levied on the sites of location and vandalism.
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This channel provides low cost sales, accessibility, low cost promotion and a closer relationship with the client. It also provides an option for recurrent customers who want to consume the products at home.24
3.4. Customer Relationships
We will be establishing a self-service and impersonal relationship with all of our customers. KF has defined the channels in a way that the value proposition to be provided to its customers will be done through a low costs and limited face-to-face interaction.
3.5. Revenue Streams (£)
Figures 8 and 9 show the revenues by target customer and by channel for the first three years of operation. Healthy fast-pace professionals will account for 50% of the company streams in three years. Vending machines will be the main channel and will account for 75% of the revenue by the third year. The subscription online sales will start in the second year.
Figures 10 shows the volumes of dry soup cups sold by channel, for the first three years of operation. Online volumes will account for 25% of sales at the third year, doubling every year, building from the awareness of the brand created through the vending machine channel, and from online marketing

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