blissmo - uk potential market

International Marketing Plan for U.K. By Mark Cintron

May 22, 2012

International Marketing Plan for U.K. 2

Blissmo buy good. feel great.

Executive Summary

Blissmo is a unique discovery platform crafted for people who are interested in finding exceptional organic & eco products that are safer, healthier and better than conventional alternatives – at up to 70% off. Blissmo works with expert curators and leverages resources to find exceptional products that are either certified as organic or eco-‐friendly, or that skip toxins found in may conventional brands & products, or that have a people & planet positive approach in the DNA of the business – and then Blissmo introduces these products to you via the Blissmobox.

The reason behind this is to introduce consumers and give them the ability to choose products that are better & safer for our bodies, our families, our communities, and our planet. It is difficult to know where to find these products or if they are truly safer. Blissmo hopes to help people who are health-‐minded and earth-‐minded ‘discover what’s better’ through all the clutter and noise of other products.

Blissmo is a young company; it has been operating successfully out of San Francisco for the last 3 years. The idea began with the explosion of Groupon. We realized that when given 50, 60, and 70% off people were willing to try anything. And so we set to use the same idea to allow people to try organic & eco products so that they could ultimately shift their consumptions from regular products that are not sustainable to products that are.

As Blissmo seeks to expand its operations it has discovered that the second largest market for organic & eco products is in Western Europe. Markets with new companies that seek to make their brand known but find it difficult to find the right consumers or make their voice heard through so much clutter of other brands.

After careful consideration of the top Western European countries with a demand for organic products and a demand from organic producers to make their products known we have selected the United Kingdom as a starting point. There is a measurable, accessible, substantial, differentiable, and actionable market segment. The UK is the 3 largest within the Western European countries in consumption of organic & eco products -‐ following Germany, and France. Through out the last 10 years it has also maintained organic farming – although the production has had its growth spurs and times of plateau it has nevertheless remained consistent. Furthermore, the UK has an adequate infrastructure for the distribution of the Blissmo boxes and the setting up of a platform for future expansion of other European Nations.



Cultural Analysis

Western societies are motivated by the desire to change eating habits and customs as concern is raised about how some products may be severely harmful to the environment. According to Ranchod “This has led to higher demand for organic products, sustainable business activities, and stricter regulations from national governments.” The western European countries with highest demand for organic products are Germany, Italy, France, and the United Kingdom. Within these countries there are growing segments of people within a broad range of income categories, consumers that have crossed over from a financial decision into a lifestyle decision to be eco-‐friendly. Within the United Kingdom there has been a growing awareness of a need for more organic products. However, the decision to place Blissmo’s first international operation is not based only on product demand but also existing infrastructure, dependability of transportation, dependability of telecommunication, consumer access to product information and online acquisition, etc. The UK was chosen as hub that could later be used to access Western Europe. Furthermore, the similarity of languages and culture allows an easier adaptation of product material, existing marketing kits, and company documents.

Geographical Setting

Location

� England

Climate

� 0 C -‐ 32 C

Country’s relevant history and/or recent events (Beginning with WWII)

World War II When war began on 3 September 1939 it was feared that the Germans would bomb British cities causing great loss of life. So children from the cities were evacuated to the countryside. Rationing in Britain began in September 1939 when petrol was rationed. As the war continued rationing became stricter and stricter. From 1942 dried (powdered) egg arrived from the USA. Meanwhile the people were encouraged to 'dig for victory' and the amount of land under cultivation increased from 12 million acres in 1939 to 18 million acres in 1945. On 7 September 1940 the Germans began bombing London and by 1 January 1941 over 13,000 Londoners were killed. Other cities heavily bombed during the 'blitz' included Birmingham, Coventry, Bristol, Portsmouth and Plymouth. German bombing lessened after mid-‐1941 when Hitler invaded Russia. From then on most German armed forces were concentrated in the east. About 1 million houses were destroyed or severely damaged during World War II. About 40,000 civilians were killed. After the war Britain was left with a severe shortage of housing. The Housing Act of 1946 gave grants and subsidies for building houses. By 1951 900,000 new houses had been built.

Germany surrendered on 8 May 1945. Immediately afterwards a general election was held (the first since November 1935). Labor won by a landside and Clement Attlee (1883-‐1967) became prime minister until 1951. Labor set about introducing a welfare state.



By the National Insurance Act of 1946 everyone was entitled to unemployment benefit, sickness benefit, old age pensions and widows pensions. The National Health Service was introduced in 1948.

The Labor party also nationalized certain industries. Coal was nationalized in 1947. So were the railways. In 1948 gas and electricity were nationalized. Meanwhile shortages gradually lessened. Clothes rationing ended in 1949 and petrol rationing ended in 1950. However rationing of butter and meat lasted until 1954.

However in the mid-‐1950s Britain became an affluent society. For the first time ordinary people had substantial amounts of money to spend on luxuries. Consumer goods became common. In the 1960s Britain became a truly affluent society. Washing machines and vacuum cleaners became near universal. Cars and fridges became common. Foreign holidays became common for the first time. Central heating, electric blankets, electric kettles and toasters and a host of other goods became common in the 1960s. By 1975 90% of homes had a vacuum cleaner, 85% had a fridge and 70% owned a washing machine. Furthermore 52% had a telephone and 47% had central heating. Until the mid-‐1970s there was full employment in most areas of Britain. For most of the period 1945-‐1973 unemployment was less than 5%.

1973 – Labor Unions, EEC, and Unemployment In 1973 the school leaving age was raised to 16. In 1988 a national curriculum was introduced. Meanwhile in the years after 1945 the trade unions grew very powerful. By 1970 their membership had almost doubled. Nearly half the workforce belonged to a union. In the winter of 1972 the coal miners went on strike and the government was forced to give in to their demands. They went on strike again in the winter of 1974

In 1973 Britain joined the EEC (forerunner of the EU). The first elections for the European parliament were held in 1979.

By 1973 the long period of economic prosperity was coming to an end. By the spring of 1975 unemployment had climbed to 1 million. It was over 5% of the workforce. By 1977 it had risen to 5.5% and in 1979 it stood at 5.3%. Meanwhile there was also high inflation.

In 1978 in an effort to tackle inflation the government tried to persuade trade unions to limit pay rises to no more than 5%. The trade unions refused to accept the limit and Britain was hit by a wave of strikes. As a result the government's popularity diminished and in May 1979 the Conservatives won a general election. Margaret Thatcher became Britain's first woman prime minister.

In 1980-‐82 Britain suffered a severe recession. Unemployment rose sharply. By January 1982 it was 11.5%, double the May 1979 figure. Not surprisingly the government was deeply unpopular.

However in April 1982 the Argentineans invaded the Falkland Islands. The British sent a taskforce and on 14 June 1982 the Falklands were recaptured. The war greatly boosted the government's popularity and it contributed to the government's victory in the general election of 1983. (The Conservatives won a third election in 1987).

1982 – Recovery of the UK Economy Meanwhile recession ended in the autumn of 1982 and recovery began. Unemployment remained very high until 1986. In the summer of that year the official figure was 14.1%. However unemployment then fell steadily. The government also succeeded in greatly reducing inflation. Despite the mass unemployment of the 1980s most people with a job experienced a substantial rise in



their living standards during the decade.

On the other hand the percentage of people living in poverty increased. That was partly due to mass unemployment. Another cause was the rapidly rising number of single parent families many of whom lived on state benefits.

The government also privatized industries. British Aerospace and Cable and Wireless were sold in 1981. Then in 1982-‐83 the National Freight Corporation and Associated Business Ports were sold. British gas was sold in 1986. British telecom was sold in 1984. British gas was sold in 1986. Furthermore, during the 1980s the government passed a series of laws restricting the powers of the trade unions.

In 1990 the government introduced a new tax in England called the community charge (popularly known as the poll tax). It was very unpopular and in 1993 it was replaced by the council tax.

The British political system Is headed by a monarchy but essentially the powers of the monarch, as head of state -‐currently Queen Elizabeth II -‐ are ceremonial. The most important practical power is the choice of the Member of Parliament to form a government, but invariably the monarch follows the convention that this opportunity is granted to the leader of the political party with the most seats in the House of Commons.

The monarch is determined on the hereditary and primogeniture principles, which means that the oldest male child of a monarch is the next in line to the throne. Under the terms of the Act of Settlement of 1701, the monarch and the monarch's spouse cannot be Catholics because the UK monarch is also the Head of the Church of England. These archaic arrangements are currently under review.

In classical political theory, there are three arms of the state:

� The executive – the Ministers who run the country and propose new laws

� The legislature – the elected body that passes new laws

� The judiciary – the judges and the courts who ensure that everyone obeys the laws

In the political system of the United States, the constitution provides that there must be a strict separate of powers of these three arms of the state, so that no individual can be a member of more than one. So, for example, the President is not and cannot be a member of the Congress. This concept is called 'separation of powers', a term coined by the French political, enlightenment thinker Montesquieu. This is not the case in the UK:

� All Ministers in the government are members of the legislature

� Some very senior judges sit in the upper house of the parliament

� The formal head of the judiciary is a senior minister



THE U.K. PARLIAMENT The British Parliament is often called Westminster because it is housed in a distinguished building in central London called the Palace of Westminster.

The British Parliament – like most in the world – is bicameral, that is there are two houses or chambers. The only exceptions to this practice around the world are some small countries such as Israel and New Zealand.

The House of Commons This is the lower chamber but the one with the most authority. I worked there as a Research Assistant to Merlyn Rees MP, then Labor’s Opposition spokesperson on Northern Ireland, from 1972-‐1974.

The Commons is chaired by the Speaker. Unlike the Speaker in the US House of Representatives, the post is non-‐political and indeed, by convention, the political parties do not contest the Parliamentary constituency held by the Speaker. The House of Commons currently comprises 650 Members of Parliament or MPs Rather oddly (but deliberately), there is insufficient seating capacity in the chamber of the House of Commons for all the MPs. Members do not sit at desks (like most legislatures) but on long, green-‐covered benches and there is only seating capacity for 437 MPs out of the total of 650. Each member in the House of Commons represents a geographical constituency. Typically a constituency would have around 60,000 -‐ 80,000 voters, depending mainly on whether it is an urban or rural constituency. In the UK, unlike many countries, there are not fixed term parliaments. A General Election – that is, a nationwide election for all 650 seats – is held when the Prime Minister calls it.

POLITICAL PARTIES Today there are three major political parties in the British system of politics:

� The Labor Party (often called New Labor) – the center-‐Left party

� The Conservative Party (frequently called the Tories) – the center-‐Right party

� The Liberal Democrat Party (known as the Lib Dems) – the centrist, libertarian party

Population and Demography England is the most populous country out of the four that make up the United Kingdom (the others being Wales, Scotland and Northern Ireland). In fact, England alone makes up over 80% of the total population of the United Kingdom. It is also in the top quarter of the most populous countries in the world, with over 50 million inhabitants. Most of the current inhabitants of England descend from the lines of the first settlers, who date back centuries ago. These ones had Norse, Saxon and Anglo roots. Various cultures have shaped and molded the modern community, including the Roman and Gaelic influences, creating a melting pot of complex traditions and heritages.

Of the 50 million + inhabitants, there is a fairly equal split between males and females, with females numbering slightly higher. The median age of English residents is about 36 or 37 years. Males’ life expectancy averages around 77 years of age, while most females will live to be about 81 years old. Regardless of actual nationality, the vast majority (that is, almost 90%) of people in England are white.

� Nationality: Noun-‐-‐Briton(s). Adjective-‐-‐British

� Population (July 2011 est.): 62,698,362



� Annual population growth rate (2011 est.): 0.557%

� Major ethnic groups (2001 census): White 92.1% (of which English 83.6%, Scottish 8.6%, Welsh 4.9%, Northern Irish 2.9%), black 2%, Indian 1.8%, Pakistani 1.3%, mixed 1.2%, other 1.6%

� Major religions (2001 census): Christian (Anglican, Roman Catholic, Presbyterian, Methodist) 71.6%, Muslim 2.7%, Hindu 1%, other 1.6%, unspecified or none 23.1%

� Major languages: English, Welsh, Irish Gaelic, Scottish Gaelic

� Education: Years compulsory-‐-‐12. Attendance-‐-‐nearly 100%.

� Literacy-‐-‐99%.

� Health: Infant mortality rate-‐-‐4.62 deaths/1,000

� Live births. Life expectancy (2011 est.)

o Males 77.95 years;

o Females 82.25 years; total 80.05 years

� Work force (2009, 31.25 million):

� Services 80.4%;

� Industry 18.2%;

� Agriculture 1.4%.

http://www.guardian.co.uk/news/datablog/2010/feb/24/uk-‐trade-‐exports-‐imports

Economic Statistics and Descriptions

� GDP (at current market prices; International Monetary Fund (IMF), 2011): $2.481 trillion.

� Annual growth rate (IMF, 2010): +1.14%.

� Per Capita GDP (at current market prices; IMF, 2011): $39,604.

� Natural resources: Coal, oil, natural gas, tin, limestone, iron ore, salt, clay, chalk, gypsum, lead, silica.

� Agriculture Products: cereals, oilseed, potatoes, vegetables, cattle, sheep, poultry, fish.

� Industry Types-‐-‐steel, heavy engineering and metal manufacturing, textiles, motor vehicles and aircraft, construction (7.0% of GDP), electronics, chemicals.

� Services Types-‐-‐financial, business, distribution, transport, communication, and hospitality.

� Trade Exports/Imports of goods and services:

o $782.7 billion Major goods exports: manufactured goods, fuels, chemicals, food, beverages, and tobacco. Major export markets-‐-‐U.S., European Union. Imports of goods and services

o $827.6 billion. Major goods imports-‐-‐manufactured goods, machinery, fuels, foodstuffs. Major import suppliers-‐-‐U.S., European Union, and China.



Other Factors Affecting Individuals:

� Women are choosing to stay at home due to economic factors or the lack of availability of part-‐time flexible working in today’s economy.

� Men’s income rose from £2,324 (May 2011) to £2,350 (Aug 2011). While the median income fell marginally, UK families on the lowest income remained static over the year

� Families surviving on less than £1,000 per month at 19% in August 2011, the same as in January 2011.

� At the other end of the scale, those who are in a committed relationship with plans to have children have the highest monthly income (£2,516). This is an eight percent increase since May 2011 (£2,331)

� The number of families with a household income of more than £2,500 has fallen by two percentage points from 38% (May 2011) to 36% (Aug 2011) – possibly indicating the impact of redundancies and the availability of fewer part-‐time positions for women.

� There were 26.3 million households in the UK in 2011. Of these 29 per cent consisted of only one person and almost 20 per cent consisted of four or more people



Inflation peak The Bank of England had already predicted that inflation would top 5% this year as a result of higher utility bills, but it expects price rises to slow in 2012 and 2013.

Unemployment Rate The total number of jobless fell to 2.63 million, according to the Office for National Statistics, its lowest level since last summer. That brought the unemployment rate in the first quarter of 2012 down to 8.2%, from 8.4% in the last three months of 2011. http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Balance+of+Payments

Trade

� The surplus on seasonally adjusted trade in services was estimated at £5.8 billion in March, compared with the surplus of £5.6 billion in February.

� The deficit on trade in goods with EU countries was £4.5 billion in March, compared with the deficit of £3.7 billion in February

� The deficit on trade in goods with non-‐EU countries was £4.1 billion in March, compared with the deficit of £4.9 billion in February

http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Balance+of+Payments

Description of Daily Life and Lifestyles The United Kingdom’s cultural traditions are reflective of the country’s heterogeneity and its central importance in world affairs over the past several centuries. Each constituent part of the United Kingdom—England, Scotland, Wales, and Northern Ireland—maintains its own unique customs, traditions, cuisine, and festivals. Moreover, as Britain’s empire spanned the globe, it became a focal point of immigration, especially after the independence of its colonies, from its colonial possessions. As a result, immigrants from all corners of the world have entered the United Kingdom and settled throughout the country, leaving indelible imprints on British culture. Typical and Popular foods � Roast beef and Yorkshire pudding

� Toad-‐in-‐the-‐Hole

� Roast Meats

� Fish and Chips

� Ploughman's Lunch

� Cottage Pie

� Shepherd's Pie

� Gammon Steak with egg

� Lancashire Hotpot

� Bubble and Squeak

� English Breakfast

� Bangers and Mash

� Black Pudding

� Bacon Roly-‐Poly

� Cumberland Sausage

� Pie and Mash with parsley liquor

� Roast beef and Yorkshire pudding



Availability and Impact of Media http://www.nationmaster.com/country/uk-‐united-‐kingdom/med-‐media



Channels of Distribution



Competitive Analysis

Blissmo Blissmo offers consumers a platform of discovery to its subscribers through a monthly subscription to a Blissmobox. The Blissmobox contains exceptional organic & eco-‐friendly products that are delivered right to the customer’s door once a month. The box contains £19 -‐ £40 or more of value in products. The customer logs on to the website and selects from a set of curated, limited quantity, box options. Products range from food products to health and beauty products. The products are chosen after on a series of guidelines and after Blissmo has determined that the products are truly better for the consumer, his family, and the environment. Blissmo is not a certification agency but it does rely heavily on free trade certification, organic certification, and others similar as a method of filtering the products. Furthermore Blissmo carries products that have a high quality design, are aesthetically pleasing, have lower or no toxins, that have sustainability credentials, products have been featured in magazines, and consumers have voiced their desire for such product.

Competitors Because Blissmo is not an ecommerce site, it does not compete with sites that are retail organic products.

Blissmo currently has no competition in its curating and delivering of organic, fair trade, and eco-‐friendly products as a tool of discovery.

It does however have competitors in the “deal space” – although such companies offer a wide range of products and vary rarely promote organic, air trade, eco-‐friendly companies. The larger competitors are Groupon UK and LivingSocial. However, since Groupon’s recent success others have opened such as Groupola, KGB deals, and Crowdity.

Groupon in the UK is ranked #76 based on a calculation of visitors and page views; it has amassed to over 35 million users worldwide in over than 300 markets. In the UK there are around 2.5 million users.

Based on Internet averages, goupon.co.uk is visited more frequently by users who have no children and are graduate school educated.

LivingSocial is ranked #337 in the UK. Based on Internet averages, livingsocial.com is visited more frequently by females who are in the age range of 25-‐34, are college educated and browse this site from work. (Based on www.alexa.com)

Features: Both these sites offer companies the ability to promote a product or service at a significantly discounted rate. The sites keep up to 50% of the cost paid by the customer on its site for a redeemable voucher he/she can print after the purchase is complete. Products/services are featured on a local scale – city specific.

Prices of such products could be offered up to 75% off regular prices, the cost of promotion being incurred mainly by the companies themselves. Most vouchers are set to expire within 6 months after the day of purchase. According to sandwich shop owner from Chicago, he obtained 56% redeemed vouchers within four months. Vouchers are also limited in quantity by the company being featured.



Packaging: There is no comparison given all purchases are in the form of vouchers. Orders on products are filled by companies themselves and not by such sites.

Promotion and Advertising: Groupon and LivingSocial’s main source of advertisement is through the web. In September 2011 LivingSocial spent $2.9 million on AdWords from Google. Groupon, however, in the Q1 of 2011 spent $179 million in online marketing – acquiring 33 million new subscribers. It is important to note that Groupon’s significant investment in online marketing is considerably high during its initial 9 months as part of the strategy to acquire new customers. The company has stated that they will continue to spend significant amount in order to acquire additional subscribers.

Both sites marketing expenses consist mainly of:

� Targeted online ads, including sponsored searches

� Ads on social networks

� Email marketing campaigns

� Loyalty programs and Affiliate programs

� Groupon spent less than $16 million on TV, radio, and outdoor ads

Relative Market Shares Both sites have significant and broad market presence but do not service the organic, fair-‐trade, and eco friendly industry. Few companies featured would pertain to that specific segment. Furthermore, Blissmo’s main approach is not to sell vouchers for products/services but rather curating boxes with various products according to the customer’s choice.



Market Conditions

Transportation The UK’s infrastructure has adequate transportation means for our products. The main facto that concerns Blissmo is the postal service system that is currently operated and owned by Royal Mail Holdings plc – it operates Royal Mail (letters), Parcelforce (parcels), Post Office Ltd. (counters), and General Logistics Systems (International logistics company). The company utilizes bicycles, push-‐trolleys, vans, trains, ships, and some aircrafts as part of their fleet.

Currently all 8,000 of their vehicles have GPS fleet tracking. This has contributed to £4 million in fuel savings, 20% fewer accidents, and 60% fewer instances of speeding.

The UK’s freight industry is healthy and growing. It has an adequate infrastructure to support transportation of goods between its districts, ports, and businesses. Here are some Road Freight Statistics (As collected by the UK-‐Department of Transportation):

� Between 2009 and 2010, the amount of goods moved by GB-‐registered vehicles in the UK increased by 11% to 139 billion-‐ton kilometers.

� Over the same period, the amount of goods lifted increased by 10% to 1,489 million-‐tons, and vehicle kilometers increased by 4% to 18.8 billion vehicle kilometers traveled.

� In 2010 the main categories of commodity transported by UK vehicles in 2010 were Foodstuffs (24% of all tons lifted)

As for, accessibility to key services (food stores, education, health-‐care, town centers, and employment centers) by individuals (As collected by the UK-‐Department of Transportation):

� The average minimum travel time to key services (excluding town centers) was 14 minutes by public transport/walking, 9 minutes cycling, and 6 minutes by car.

� Service users in urban areas could access key services by public transport/walking, on average, in 12 minutes compared with 21 minutes in rural areas.

� Overall, levels of access to key services by public transport/walking within a ‘reasonable’ time were highest in London and lowest in the East of England.

Communication According to the ITU – the UN agency for information and communication technologies, as of June 2010 the UK has 51,442,100 Internet users. That represents 82.5% of the population.

In addition a survey conducted by the Office for National Statistics found that more than 19 out of 20 connections to the Internet were via broadband. In December 2008, 59.6% of broadband connections had a speed greater than 2Mbps.



Consumer Buying Habits Online Purchasing Habits:

In 2011, 32 million people (66% adults) purchased goods or services over the Internet. Clothes/sporting goods were the most popular online purchase in 2011 with 46% of users buying these items.

Organic Products Purchases (Research by Soil Association with the Support of Triodos Bank):

� Sales of organic products were worth £1,731 million in 2010 – Shoppers spend more than £33 million a week on all things organic

� The year’s biggest success stories were in sales of organic beef (18%), organic baby food (10.3%), and organic textiles (8.8%)

� 17 out of 20 households (86%) buy organic products. On average consumers bought organic products 15 times in 2010

� Dairy products (30.5%) and fresh fruit and vegetables (23.2%) are the most popular

� Organic food products continue to attract shoppers from across the social spectrum. Those in the more disadvantaged socio-‐economic groups account for a third of spending

� Box scheme and mail-‐order sales grew in 2010 to £155.8 million

Leading Multiple Retailers (72.3%)

1. Tesco (28.1%) 2. Sainbury’s (24.4%) 3. Waitrose (21%) 4. Asda (8.9%) 5. Morrisons (6.8%) 6. Co-‐Operative Sommerfield

(3.8%) 7. Marks & Spencer (2.3%)

Multple Retailers 72%

Other Independent Retailers 15%

Farmers' Markets

1%

Catering 1%

Farm Shops 2%

Box Schemes/home

delivery/mail order 9%

Share of UK Organic Market 2010



Advertising and Promotion Channels Available Relevant to Blissmo Most companies and individuals that Blissmo seeks to partner with would be found through these means:

� Internet Ad Promotion –

o Google Ad Words

o Social Media

§ Organic/Fair-‐trade/eco friendly – Bloggers

§ Facebook

§ Twitter

§ Pinterest

� Trade Shows

o Natural & Organic Products Europe Trade Show London

o Take a Step Trade Shows 2012

o London Green Fair

o Keen Green and Ethical Trade

o Fairtrade Foundation

Pricing and Discounts Blissmo is unique in its service of being a platform for discovery rather than a retailer of products. Blissmobox offers diverse products, mostly local, organic, eco-‐friendly, and certified fair -‐trade. Therefore it is difficult to assess how retailer’s discounts and pricing would affect Blissmo. In addition, Blissmo offers products at a discounted rate below average discounted prices of retailers not as a means of sale but of promotion, not as to take market share away from retailers but to bring awareness of such products.

There are companies such as the above-‐mentioned Groupon, LivingSocial, and others, which serve the general audience as platforms of discovery for a wide variety of industries. Blissmo, however, focuses only in the market segment of organic, fair-‐trade, eco friendly products. Furthermore, where these companies feature products and their discounts by redeeming vouchers Blissmo offers the curating of a combination of featured products handled and delivered to their doorstep.



Marketing Plan

Blissmo is already offered in the US as a means of discovery for people who already belong to organizations we have partnered with and individuals who are interested in gaining knowledge of organic, fair-‐trade, eco friendly products. This marketing plan is aimed at consumers of such products in UK. We seek to establish strategic alliances with organizations that support organic, fair-‐trade, eco friendly products as a means of introduction of our service – An Exploration Platform.

In terms of revenue, according to BioFach (2010) Europe is the second largest market for organic foods in the world. By 2008 Revenues were estimated at €18 billion:

� Germany €5.8 billion;

� France €2.6 billion;

� Italy €1.97 billion;

� United Kingdom €2.5 billion

Demographics of Target Consumers: In a study conducted by researches in the University of Murcia, Spain on “Organic Food Consumption in Europe: International Segmentation based on value system differences” a sample profile was conducted of consumers of organic products. Most of the consumers as it relates to the UK: were women 79%; Mean age 45 – 46; 56% were intermediate to upper household income; 29% lived in cities with more than 250,000 inhabitants.

Previous research by Hartman and New Hope has shown that consumers are segmented according to their lifestyles: “the willingness to pay for an organic product might be influenced by individual ways of living rather than by the usual socioeconomic variables.”

Organic, fair-‐trade, eco friendly products consumers tend to be people who are concerned with the environment, sustainability projects, global awareness for fair-‐trade.

Blissmo is focusing initially in the UK as a platform of departure for its services and products given the ease of transferability and compatibility of information between the US and UK. The UK also offers a good infrastructure for future growth into other European Nations with similar demographics and values.



Product: Blissmo offers two main areas of service/products

� How it works for a partner:

� How it works for the consumer:



What a Blissmobox looks like:

Curation (taken from Blissmo.com) When evaluating a product, we look at several factors including:

� Organic. You hear the word a lot but what does it mean? Organic means produced without pesticides or chemical fertilizers, GMOs, solvents or additives. This is not only important for what you eat but what you put on you and around you (after all, your skin absorbs most of what you put on it).

� Low (or No!) Chemical/Toxin Content. There are a lot of chemicals in conventional products these days. Some are toxic and known to harm humans at certain quantities, but are included in products in trace amounts deemed to be harmless -‐ to give products a certain smell or extend shelf life. We don't know the long-‐term effects of trace amounts, however as we are learning with BPA sometimes we think a chemical to be "safe" when it is not. We seek out products that are awesome without the additives;

� Money (And Environment!) Saving. Sure BPA-‐free water bottles, energy-‐saving power strips and solar flashlights are better for the environment, but they also save YOU some money.

� Eco-‐friendly or Sustainable. Every product we buy is a vote of endorsement for the way that product was sourced, manufactured and delivered. It's time we started voting in favor of our water, our air, and our communities (they need our help) so we seek products that have been produced in a people & planet positive way.

� People & Community Positive. Occasionally we'll come across a product that might not be organic or eco-‐friendly, but has a unique, compelling story and serves a people or community that we think you'll enjoy discovering (and using).

Blissmo Brand: Blissmo is a composition of two words: Bliss and Mo -‐ for months. Bliss as the state of perfect happiness; serene joy; the name hopes to convey a lifestyle and a role in peoples lives, one of perfect happiness – of finding products that are good for the consumer, his family, and the environment while at the same time feeling great they are making a difference.



Innovative Aspects: Blissmo is not an ecommerce website. Blissmo is looking to answer peoples concerns about not knowing which products to purchase, what is reliable, what is good. Blissmo does the research so the consumer doesn’t have to. The mission is to promote organic, natural, eco-‐friendly products that help the companies that are making those products and are helping the customers who are looking for those products.

There are companies that sell bulk organic items in boxes – through the mail. Blissmo does not seek to compete against these nor any type of food retailer. But to simply serve as a discovery platform.

Furthermore, Blissmo considers every dollar a consumer spends as a vote, as such we seek to shift the consumers vote towards sustainable products. With the expectation of helping these industry grow thus creating further dependability and consumer awareness in their everyday products.

Problems and Resistance: People may be hesitant to subscribe to any service for 6 to 12 months.

Partners may also be wary about compromising their image through a new venture.

Marketing Objectives Partners – Blissmo seeks to target partners at organic trade shows. Companies that carry products that have a high quality design, are aesthetically pleasing, have lower or no toxins, that have sustainability credentials, products that have been featured in magazines, and consumers have voiced their desire for such products.

Consumers – Target people who are searching for organic products through the web – social media such as Facebook, twitter, YouTube, Google, different blogs. Partner with ecommerce websites that can offer Blissmobox as a means for discovery of their many products.

Curating – Target curators that are relevant to the organic, fair-‐trade, eco friendly audience – such as leading companies within that niche, local celebrities known for their work in the field, and a consumer platform – where consumers voice their opinions in regards to product.

Market Share: Currently consumers spent £33 million a week in organic products in the UK. Blissmo’s expectation is not so much to take money away from products already being purchased but to shift consumers from regular products to sustainable products.

Furthermore 86% of households purchased 15 organic products at some point in 2010. In 2011 according to the UK Environment Agency there were 23.6 million households. Therefore, an estimated 20.3 million households purchased at least 15 organic products throughout the year.

If Blissmo captures 5% within the first 2 – 3 years it would have 1.015 million households users.

Expected Sales in dollars volume Considering a market share capture of 1% (203,000 Households) in the first year and revenue of £19.00 per box -‐ $6,099,952.55 (or £3,857,000.00)



Product Strategy The product/service differentiation is the uniqueness of such form of advertising within this specialized segment of products. Some of the advantages include:

� Just in time operations – Products are only ordered based on the current monthly subscription

� Stabilized Revenue – The consumers payments are made 6 months or 12 months in advance

� Customer loyalty – Subscribers make multiple purchases over time

� Sense of Community – Members can use the company’s Facebook page to trade tips, comments, and reviews

Packaging: Boxes are a standard size (20x15x15cm) made of recyclable material.

Support Services (Taken from Blissmo.com)

� How do I get to choose? Around the 15th of every month, we'll send you an email with the featured boxes for that month. You'll then have until the end of the month to make your selection -‐-‐ but don't wait too long as each box is limited in quantity. If you don't like any of the boxes you'll have the option to "skip" that month and receive a credit to use towards a future box. For example, if you were to skip July, you would have the option to select two boxes in August. If we don't hear from you by the end of the month, we'll select a box for you based upon your purchase history.

� What if I get a box and I don't like what's in it? We want you to be happy with your box and if for any reason you are not let us know and we'll do what we can to make it right.

� What if I get a box and some of the products are damaged? While we do what we can to ensure that the products will reach you in mint condition, occasionally products do get damaged. If this happens to one of your boxes, simply take a photo of the damaged product and send it along with your name and email address to [email protected] and we'll replace the product if we can, or credit your membership the value of the product.

� What if I want to cancel my subscription? We'd hate to see you go, but we understand that a few of you might move out of the country and no longer need your Blissmobox subscription. ;) To cancel for any reason, simply email [email protected] and we'll take care of it. If that month's box has already shipped (around the 30th of each month) when you cancel but you have yet to receive it, we'll cover return shipping.

Promotions Strategy Blissmo seeks to create a community of users and partners – so the promotion follows the same guidelines. Social media helps us do just that – through Facebook and blogs we hope to reach people who are interested in making a difference and are looking for ways to do that.



In addition to social media we also plan to partner with NGO’s that focus on Fair-‐trade, eco friendly, organic products. In the US we have done such a partnership with Care2 – Care2 in turn has given us access to 15 million subscribers who are interested in making a collaborative shift towards healthier, more sustainable consumption.

Ultimately, we look to meet and find partners locally. Blissmo does this by participating in tradeshows hearing the stories behind the product, evaluating them, and asking them to join us in the shift of the consumers dollars towards healthier, safer, and better products.

Finally, as we grow we look to invest some of our funds into online advertisement specifically geared to those who are looking for products in the organic, fair-‐trade, eco friendly industry.

Distribution Strategy (Inbound) Because of Blissmo’s nature and type of business, inbound logistics are simple. Partners are in charge of getting their products to our warehouse. All that is required is standard paperwork, such as: Invoices for products that are not deemed as samples, truck bill of lading, and packing list.

Distribution Strategy (Outbound) Boxes are limited to the amount of subscribers. Each box is filled according to the products featured that month. Some are filled according to the featured curator of the month. As the selections come each is labeled with the consumer’s information.

The distribution of the boxes is done through the Royal Postal Service (UK).

The initial distribution is only within the UK, beginning with England (later Wales and Northern Ireland), there is no import or export fee given that all products are locally made/distributed. Most of the major distribution efforts have already taken part by the producer.

Pricing Strategy The price per box/per month will be £19 (Plus VAT 20%, shipping and handling £3.50)

There are no custom duties, no import taxes, and no wholesale & retail markups. Prices are to be paid up front for subscriptions of 6 months and 12 months.

The products included in the box are given to Blissmo by the pertinent organizations as samples at no cost and as a method of promotion (that is why products are limited as to different boxes).

Government Participation There are several channels within government that can serve to bring awareness to organic products and Blissmo as a service offered as a means of exploration – Such as:

� Soil Association

� Sustain: The alliance for Better Food and Farming

� British Nutrition Foundation



� Food for life: the school meals action pack

� Food Standards Agency

� Organic Food Federation

� Department for Environment, Food and Rural Affairs

� National Famers’ Retail and Market Association

blissmo - uk potential market

Documents

organic products

exceptional products

regular products

conventional brands

organic producers

organic farming

blissmo boxes

western european countries