NEW PRODUCT INNOVATION AND DEVELOPMENT

GROUP PROJECT
150302 JAMIE AMING’A KEBABE
150594 ALUODO ED JAY AVNER
151049 RUKUNGU JOSEPH MWANGI
150792 BENJAMIN OPEE
147540 DANIEL MUTISO

Product Description
This is a meal kit delivery company that supplies consumers with ingredients and recipes to
make their meals according to their desires.

Product Features
● Offers dietary and specific meal kit orders
● Provides necessary ingredients to make meals; sourced locally
● Simple and easy recipes
● Scheduled recipes
Procedure:
1. Browse website/app for recipes
2. Choose the desired meals and number of mealkits for the number of people
3. Pack ingredients into meal kits
4. Deliver to customers
5. Customer follows the recipes to make the meals

Identifying Needs
I. What specific problem or need does your proposed product or service address?

● Inconvenience: Shopping for ingredients can be a chore for different individuals hence
the alternative of receiving your needed groceries with instructions on preparation is a
great convenience to have.

● Ease: Some people lack adequate cooking skills and hence Jikofresh provides the
necessary direction and guidance for a decent meal with its clear-cut recipes.

● Lack of Variety: The abundance of chef-curated recipes are provided in the mealkits
allowing for several possible meal variations according to one’s interests and appetite.
This variety prevents monotonous and routine meals unless preferred.
 ● Freshness and Quality: The ingredients provided are top quality and hence they are fresh
as they are sourced locally, this allows for good quality meals to be prepared by the
consumers.

II. How does it differ from existing solutions in the market?

● Customization: Jikofresh may offer greater customization options compared to some

competitors. It might allow customers to choose from a wider range of recipes each week
or cater to specific dietary preferences and restrictions more comprehensively.

● Ingredient Sourcing: Jikofresh emphasizes the quality and freshness of its ingredients. It
may have stringent sourcing practices, partnering directly with local farms or suppliers to
ensure the best quality produce, meats, and other ingredients.

● Environmental Commitment: Jikofresh might have a strong commitment to sustainability

and reducing environmental impact. This could be reflected in their packaging choices,
sourcing practices that prioritize sustainable farming methods, or efforts to minimize food
waste.

● Flexibility: Jikofresh might provide more flexibility in terms of subscription options,

delivery frequencies, or the ability to skip weeks easily. This allows customers greater
control over when and how often they receive meal kits, catering to varying schedules
and preferences.

Market Analysis
I. Who are the target customers for your innovation?

Busy Professionals: People who are loaded with work and lack the time to do shopping for
groceries but prefer homemade food.

Health-Conscious Individuals: People who prioritize healthy eating and are looking for
convenient ways to prepare nutritious meals at home.

Families: Busy families seeking convenient and time-saving solutions for meal preparation,
especially those with multiple members with varying dietary preferences.

Fitness/Gym people: Some people prioritise fitness and hence need to make meals that fit their
dietary needs hence they would rather get the meal kits they need for their diets.
Students: College students or young adults living independently who want to save time and
effort on cooking while still eating well-balanced meals.

Seniors: Elderly individuals or retirees who may find it challenging to shop for groceries or
cook elaborate meals but still want to enjoy home-cooked food.

Vegetarians and Vegans: People following plant-based diets who appreciate the convenience of
pre-prepared ingredients tailored to their dietary preferences, especially due to lack of options for
their vegan food choices

II. What market trends or dynamics support the potential success of your
product/service?

● Increasing Need for Ease: The desire for convenience in food consumption is on the rise,
fueled by hectic schedules and more households with two incomes. Jikofresh provides a
convenient option by removing the necessity of grocery shopping and meal planning.

● Growing Popularity of Cooking at Home: Even though people are busy, there is a
noticeable shift towards cooking at home, driven by a preference for healthier meals,
saving money, and the enjoyment of making dishes from the beginning. Jikofresh backs
up this trend by offering the essential ingredients and customized recipes for home
cooking.

● Focus on healthy living: Consumers are increasingly focusing on their health, looking for
fresh, nutritious ingredients and meals. Jikofresh’s provision of healthy and fresh
ingredients heps aid this healthy lifestyle.

● Environmental Awareness: Consumers are becoming increasingly conscious of

sustainability issues. Jikofresh which focuses on sustainable sourcing, minimizing food
waste, and using environmentally friendly packaging, generating the appeal to customers
who are environmentally conscious.

● Personalization: Customers are more and more looking for customized experiences and
choices that suit their specific likes and availability. The key to Jikofresh's success is its
ability to provide a range of subscription plans, menu choices, and customization options
that meet the needs of a wide range of customers.

III. Are there any regulatory or legal considerations that could impact market entry?
 ● Food Safety Regulations: Meal kit companies are required to follow food safety
regulations established by local, state, and national authorities. This involves making sure
ingredients are handled, stored, and transported correctly to preserve their freshness and
safety.

● Rules for Packaging and Labeling: Regulations dictate how food products, including
meal kits, must be packaged and labeled. This encompasses specifications for ingredient
lists, nutritional facts, allergen disclosures, and correct labeling of perishable products.
● Regulations regarding Health and Nutrition: Depending on the location, there may be
rules concerning the nutritional value and health statements regarding the food provided
by Jikofresh.

● Regulation and Authorizations: Meal kit companies may require different licenses and
permits for their operations, such as business licenses, food handling permits, and
potentially permits specifically for delivery services.

● Legal Standards: Jikofresh may have to create contractual agreements with suppliers and
partners (such as farmers, food producers, delivery services) that meet legal requirements.
These agreements guarantee the integrity of the supply chain and compliance with the
law during the entire operation.

● Environmental Policies: Regulations concerning waste disposal, recycling, and

environmental impact may impact operations, particularly in regard to the materials used
for packaging meal kits.

Competitive landscape
Jikofresh is facing competition from different companies these are:

Jumia food
Jumia foods is a food and beverage delivery service in Kenya. It began expanding its business
from delivery of food, soft drinks and alcoholic beverages and began preparing meal kit services.

Uber eats
It is a food ordering and delivery service launched by Uber in 2014. They deliver the food by
various means such as motorbike and bicycle. They have started experimenting with meal kit
services within various regions such as Nairobi and Mombasa

Greenspoon
It is an all in one bakery, butchery, wine shop, greengrocer and online shop that sells fresh
produce to its customers. They offer meal kits featuring locally sourced ingredients and fresh
ingredients

Pot and apron

It is a Kenyan owned and run meal kit delivery system that operates in the riverside. It offers a
variety of meal options and is solely dedicated to meal kit preparation and delivery

Differentiating Jiko Fresh from other companies

1. Creating value for the brand

This will be achieved in the following ways :

a. Specialized dietary plans

Offering meal kits that are accommodating to the dietary needs of the consumer and providing
alternative meals where it isn’t possible to change a meal. This would cater to diets of various
kinds such as keto, paleo, dairy free, vegetarian or vegan and allergy free meals.
b. Offering ethnic and regional meals
Jiko Fresh would focus on coming up with a variety of both regional and international foods;
however, we would also be offering personalized meal plans and ethnic foods to customers from
different backgrounds such as international customers or customers that prefer local cuisine.

2. Focusing on Sustainability
Sustainability would be a core value of jiko fresh and we would achieve this by:

a. Using eco-friendly packaging

We would use biodegradable, compostable, or reusable packaging to minimize
environmental [Link] addition we would emphasize the dedication to sustainability as
a key value.
b. Local Sourcing
Work with local farmers and producers to obtain ingredients, assuring freshness and
boosting the local economy. We would thus highlight the traceability and ethical origin of
ingredients.

3. Improving the customers experience

The customer experience would be one of the most important things to focus on for Jiko Fresh,
the focus would be on ensuring that the service that they experience is of the highest quality from
when they first begin to learn about the service to their last delivery
This would be done in the following ways:
 a. Creating an interactive cooking experience for the customer by providing access to the
cooking tutorials and interactive videos to demonstrate what would be needed and what
to expect.
b. Customizing meal plans and meal kits to reflect the needs, preferences and dietary
restrictions of the customer. One on one consultations would allow for the planning of
personalized meals for our customers
c. Developing and maintaining a website with ease of access and navigation to allow the
customer to use the website and avoid confusion. This would also make it easy and quick
to subscribe and become a member of the service and complete deliveries

4. Introduction of new and innovative products within the market

These would include the following:
a. Ready-to-Eat Options:
Offer a variety of ready-to-eat meals or partially cooked meal kits to clients seeking quick
and convenient meal alternatives.
b. Gourmet and Premium Options:
Launch gourmet meal kits featuring high-quality, premium ingredients and special
recipes produced by renowned chefs. This may appeal to culinary connoisseurs and those
seeking a fine dining experience at home.

5. Community engagement and social media marketing

a. Local community initiatives: Participate in community events, host cooking seminars, and
form partnerships with local schools or organizations. This increases brand loyalty and
trustworthiness.
b. Influencer collaborations: Work with local influencers and chefs to promote Jiko Fresh
on social media by using their followers to reach large audiences.

Challenges faced in entry into the market

1. Difficulty in logistical management:
This is seen in that:
a. It is difficult to establish a supply chain of fresh and high quality ingredients and develop
partnerships with trustworthy, reliable and consistent suppliers.
b. Creating an efficient distribution network that ensures timely and fresh delivery across
multiple regions can be difficult and expensive. Infrastructure restrictions in some regions
could worsen these issues.

[Link] and compliance requirements

The following standards are often difficult to meet
 a. Food Safety Standards: Adhering to local food safety regulations and gaining required
certifications can be a difficult and continuing procedure.
b. Environmental standards: Adherence to standards governing sustainable packaging and
waste management may necessitate additional cost and planning.

3. Competitive Landscape

a. Established Players: Competing with well-known companies like Jumia Food and
Greenspoon, which have great brand recognition, client loyalty, and huge delivery
networks, can be hard.
b. Market Saturation: In urban regions, the market may be nearing saturation, making it
more difficult for new entrants to differentiate themselves and gain customers.

4. Economic and market conditions

a. Consumer purchasing power: Kenya's economic conditions can have an impact on
consumer purchasing power, which in turn affects demand for comparatively pricey
products such as meal kits.
b. Market Education: Educating the market about the benefits and convenience of meal kits
can take time and resources, especially if the concept is new to the local populace.

5. Technological barriers.
a. Digital literacy: Because the service operates mostly online, the level of digital literacy
among potential clients is critical to reaching a large customer base. If customers aren’t
able to use and access the internet then it becomes difficult to get customers.
b. Cybersecurity: Ensuring the security of online transactions and consumer data is critical,
and it necessitates investment in strong cybersecurity measures.

6. High initial investment.

a. Startup Costs: A significant initial expenditure is necessary to establish operations, which
includes acquiring ingredients, packaging, warehousing, and delivery logistics.
b. Technology and Infrastructure: Creating a user-friendly website and mobile app, as well
as the essential backend systems for order management and customer service, requires
significant investment and technical knowledge.

Value proposition
We deliver fresh ingredients and chef-curated recipes to your doorstep, simplifying home
cooking with convenience and quality. We offer tailor made solutions to the home cooking with
easy to follow recipes, fresh ingredients and high quality instructions to your doorstep.

Feasibility Assessment
i. Technical Requirements and Challenges for Developing and Producing Jiko Fresh

Developing and producing a meal kit service like Jiko Fresh involves several technical
requirements and challenges:

● Supply Chain Management:

○ Requirement: Establish a robust supply chain to source fresh ingredients.
○ Challenge: Ensuring consistent quality and freshness while managing logistics.
● Recipe Development:
○ Requirement: Create diverse and appealing recipes.
○ Challenge: Balancing taste, nutrition, and simplicity for a wide audience.
● Packaging:
○ Requirement: Develop eco-friendly and efficient packaging solutions.
○ Challenge: Maintaining freshness while minimizing environmental impact.
● Technology Infrastructure:
○ Requirement: Implement a reliable digital platform for orders and subscriptions.
○ Challenge: Scaling the platform to handle high traffic and providing a seamless
user experience.
● Data Management and Analytics:
○ Requirement: Utilize data for inventory management, customer preferences, and
operational efficiency.
○ Challenge: Integrating data from various sources and ensuring data security.
● Logistics and Delivery:
○ Requirement: Efficient delivery system to ensure timely delivery of meal kits.
○ Challenge: Managing delivery logistics, especially in remote areas.
● Compliance and Safety:
○ Requirement: Adhere to food safety regulations and standards.
○ Challenge: Regularly updating practices to comply with changing regulations.

ii. Access to Necessary Resources

Jiko Fresh has access to the necessary resources to bring their idea to fruition:

● Technology:
○ Jiko Fresh has developed a sophisticated digital platform for managing
subscriptions, orders, and customer interactions.
● Expertise:
○ The company employs culinary experts, nutritionists, and supply chain specialists
to ensure high-quality meal kits.
● Funding:
 ○ Jiko Fresh has successfully raised significant capital through various funding
rounds, IPOs, and reinvestments, allowing it to scale operations and improve its
services.

iii. Potential Obstacles or Risks

● Supply Chain Disruptions:

○ Risks include weather-related disruptions, supplier issues, and global events like
pandemics affecting ingredient availability.
● Market Competition:
○ Intense competition from other meal kit services and grocery delivery platforms
could impact market share.
● Operational Challenges:
○ Scaling operations while maintaining quality and efficiency can be challenging.
● Customer Retention:
○ High customer churn rates and the challenge of retaining subscribers in a
competitive market.
● Regulatory Compliance:
○ Navigating varying food safety and labeling regulations across different regions.

Customer Validation

i. Market Research and Customer Validation Activities

Jiko Fresh conducts extensive market research and customer validation activities:

● Surveys and Feedback Forms:

○ Regularly collects feedback from customers about meal preferences, packaging,
delivery experience, and overall satisfaction.
● Focus Groups:
○ Conducts focus groups to understand customer needs and preferences.
● Data Analytics:
○ Analyzes purchasing patterns, customer reviews, and engagement metrics to gain
insights.
● Pilot Testing:
○ Tests new recipes and features with a small group of customers before a full
rollout.

ii. Insights Gained from Potential Customers

Insights gathered from customer validation activities have significantly influenced Jiko Fresh’s
product design:
 ● Personalization:

Customers desire personalized meal options. Jiko Fresh has introduced

customizable meal plans to cater to dietary preferences and restrictions.

● Convenience and Time-Saving:

Feedback highlighted the importance of convenience. This led to simpler recipes

with shorter preparation times.

● Sustainability Concerns:

Customers expressed a preference for sustainable practices. Jiko Fresh has

increased its focus on eco-friendly packaging and sourcing locally produced
ingredients.

● Variety and Quality:

Demand for variety and high-quality ingredients has driven Jiko Fresh to
continually innovate and expand its recipe offerings.

● Customer Service:

Insights into customer service experiences have prompted Jiko Fresh to enhance
its support services and improve delivery accuracy.

Scalability and Sustainability

i. Scalability:

Jiko Fresh’s innovation of a local ingredient-sourced meal kit delivery service has considerable
scalability potential. Here’s how it can be scaled:

● Replicability in Different Markets: Jiko Fresh can replicate its model in various urban
centers across Kenya initially and then potentially expand to other East African countries
where similar consumer trends and agricultural practices exist. The model of sourcing
ingredients locally can be adapted to different regions by partnering with local farmers
and suppliers, ensuring freshness and supporting local economies.
● Adaptability to Different Customer Segments: The meal kit concept appeals to busy urban
professionals, health-conscious individuals, and families seeking convenient yet
nutritious meal solutions. Jiko Fresh can adapt its offerings by introducing different meal
plans (e.g., vegetarian, vegan, keto) to cater to diverse dietary preferences and needs
within each market segment.
ii. Sustainability:

Jiko Fresh places sustainability at the core of its operations:

● Local Sourcing: By sourcing ingredients locally, Jiko Fresh reduces carbon footprint
associated with transportation and supports local farmers, contributing to the economic
sustainability of rural communities.
● Packaging and Waste Reduction: Implementing eco-friendly packaging solutions and
promoting waste reduction strategies (e.g., recycling, composting) can further enhance
sustainability efforts.
● Energy Efficiency: Exploring energy-efficient delivery methods and operational practices
can minimize environmental impact.

Revenue Model

i. Proposed Revenue Model:

Jiko Fresh can adopt a subscription-based revenue model for monetizing its services:

● Subscription Plans: Offer weekly or monthly subscription plans where customers pay a
fixed fee in exchange for a set number of meals per week. Different tiers can be offered
based on the number of servings per meal or the complexity of recipes.
● One-time Purchases: Provide the option for customers to make one-time purchases of
meal kits for special occasions or trial purposes.

ii. Revenue Generation and Profitability:

To achieve profitability over time, Jiko Fresh can focus on the following strategies:

● Customer Retention: Emphasize quality, convenience, and customer service to retain

subscribers over the long term.
● Economies of Scale: As the customer base grows, negotiate better terms with suppliers
and optimize operational efficiencies to lower costs.
 ● Expansion of Offerings: Introduce complementary products or services such as kitchen
utensils, cooking classes, or ready-to-eat meals to diversify revenue streams.

iii. Implementation Plan:

A phased implementation plan could include:

1. Market Research: Conduct detailed market research to understand consumer preferences,

pricing sensitivity, and competition in target markets.
2. Pilot Launch: Begin with a pilot launch in a major urban center like Nairobi to refine
operations, logistics, and customer feedback.
3. Scaling Operations: Gradually expand operations to other cities and regions based on the
success of the pilot phase, ensuring scalability without compromising quality.
4. Partnerships and Alliances: Forge strategic partnerships with local farmers, logistics
providers, and technology platforms to streamline supply chain operations and enhance
customer reach.

Go to Market Strategy

a. What steps are needed to bring your innovation from concept to market launch?

1. Market Research and Validation

Conduct Market Research- Understand the target market, competitors, customer preferences, and
market trends.

Validate Concept: Use surveys, focus groups, and pilot programs to test the concept and gather
feedback.

2. Business Planning

Develop a Business Plan: Outline business goals, target market, value proposition, revenue
model, and marketing strategy.

Financial Planning:Create a detailed budget, including startup costs, operational expenses,

pricing strategy, and revenue projections.

Secure Funding:Seek funding through investors, loans, or crowdfunding platforms based on the
financial plan.

3. Product Development
Recipe Development: Curate a diverse range of recipes catering to different tastes and dietary
needs.

Supplier Partnerships: Establish relationships with local farms and suppliers to source
high-quality ingredients.

Packaging Design: Design sustainable and user-friendly packaging for meal kits.

4. Technology and Infrastructure

Build a Website and App: Develop an intuitive and user-friendly platform for customers to
browse meal kits, place orders, and manage subscriptions.

Logistics and Distribution: Set up a reliable supply chain and distribution network to ensure
timely delivery of fresh ingredients.

Inventory Management System: Implement a system to track inventory, manage stock levels, and
reduce waste.

5. Marketing and Branding

Brand Development: Create a strong brand identity, including logo, tagline, and brand
messaging.

Marketing Strategy: Plan a multi-channel marketing campaign to create awareness and attract
customers (social media, content marketing, influencer partnerships, and traditional advertising).

Pre-Launch Campaign: Build anticipation with teaser campaigns, early sign-ups, and
promotions.

6. Regulatory Compliance

Food Safety Regulations: Ensure compliance with local and national food safety standards and
regulations.

Business Licenses: Obtain necessary licenses and permits for operating a food delivery service.

7. Operations and Team Building

Hire and Train Staff: Recruit chefs, nutritionists, logistics managers, customer service
representatives, and marketing professionals.

8. Soft Launch and Iteration

Pilot Program: Launch a soft pilot in a limited geographic area to test operations and gather
customer feedback.

Iterate and Improve: Analyze feedback and make necessary adjustments to recipes, delivery
processes, and customer service.

9. Full Market Launch

b. What timeline do you envision for the development and rollout of your
product/service?

Months 1-2: Market Research and Validation

- Conduct surveys, focus groups, and competitor analysis.

- Test the concept with pilot programs and gather feedback.

Months 3-4: Business Planning and Funding

- Develop a comprehensive business plan and financial projections.

- Secure funding through investors, loans, or crowdfunding.

Months 5-6: Product Development

- Create recipes and establish supplier partnerships.

- Design sustainable packaging and develop the website/app.

Months 7-8: Operations Setup

- Set up supply chain, distribution networks, and inventory systems.

- Hire and train key staff; ensure regulatory compliance.

Months 9-10: Marketing and Branding

- Finalize brand identity and messaging.

- Launch pre-launch marketing campaigns to build anticipation.

Months 11-12: Soft Launch and Full Launch

- Conduct a soft launch to test and refine operations.

- Analyze feedback, make adjustments, and expand marketing efforts for the full launch.

c. Are there any strategic partnerships or collaborations that could facilitate the
implementation process?

Yes, strategic partnerships with local farms for fresh ingredients, technology firms for website
and app development, logistics companies for efficient delivery, and marketing agencies for
brand promotion can significantly facilitate the implementation process of Jikofresh.

Long term vision

1. Our vision is to expand our innovation in order to have the ability to do deliveries across
the country. This can be possible by slowly integrating our service and ensuring we
convince our customers to accept the innovation by providing high quality service.

2. Our service will adapt to changing market conditions and customer needs over time by
doing research from time to time to stay ahead in the market as well as ahead of our
competitors e.g. conducting interviews, taking feedback we get from customers’ reviews
seriously if it is negative and needs improvement. We will ensure our prices are at par
with the market.