ORGANX Baku – Online Organic Food Delivery Company in Baku, Azerbaijan

Abstract

The benefits of a healthy diet and its remarkable contribution in ensuring better sleep, maintaining a healthy weight and increasing overall physical and mental health conditions are well-known facts that have been proven by many scientists in different experiments. Unfortunately, some people neglect to eat healthy despite its scientifically proven benefits for the human mind and body. Nonetheless, recent developments with COVID-19 has refreshed our memories about the necessity of eating well in terms of building a robust immune system essential for fighting the virus and its mutations effectively. People are now more likely than ever to increase healthy food consumption to shield themselves by natural means against the viral COVID-19 pandemic. Bearing in mind expected rise in demand towards healthy and organic products and lack of adequate and convenient means of supply aligned with the current reality in the light of the pandemic, ORGANX Baku has decided to step in and meet consumers’ growing and unmet needs regarding these kinds of food. The questionnaire results indicated that a substantial number of respondents are inclined to regular organic food consumption, and there’s a growing demand towards such products in the market. Based on the questionnaire results, we have identified two target customer segment groups: 18-30 years old, educated, married, employed females with average monthly income between 1000 ₼ - 2000 ₼; 31-40 years old, educated, married, employed males with average monthly income between 1000 ₼ - 2000 ₼. Startup costs summed up to 50,000 ₼. 30k ₼ or 60% of the total sum was founders’ contribution, 12k ₼ or 24 % granted by soft government loans with an annual interest rate of 5% and 8k, or 16% of the total sum taken in loans from families and friends. ORGANX Baku expects 14,469 customers to spend a total of 141,289.08 ₼ during the first year of operations. Based on projected income statements, ORGANX Baku won’t be able to break even by the end of the first year of service but will do so between the 6th-7th month of the following year. The company expects to make a steady profit by the end of the second year and will continue to do so by the end of the fifth year according to projections. ORGANX Baku expects to finish the first year with 46% of gross margin, -39% gross profit and -1.09 ROI figures. These figures projected to improve in the following years of operation.