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Cropship Business Plan for SAYES
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Business Plan
To understand Cropship’s core product offering, please first consider the problems below.

The Problem❓
We live in a technological age, and yet the traditional food distribution and supermarket model has barely evolved or changed over the last 30 years to empower consumers to make better choices, despite huge leaps in technological innovation in other retail sectors.

With the current model for CPG (Consumer Packaged Goods) retail, consumers don’t have the tools, data or knowledge they need and want to tackle the emergent issues around food supply chains and sustainability for the future.

Community
The pandemic has brought a greater attention to social priorities; consumers are expecting companies to help local communities to and develop deeper emotional connections.
The supermarket model does not offer a third party marketplace for localised products and emergent food entrepeneurs.
Consumers are looking for . In the United States, 35% of consumers “strongly agree that they want more transparency in food and drink products”.

Environment
Globally, the accounts for around 30% of the world’s total energy consumption and accounts for around 22% of total Greenhouse Gas emissions. Consumers are unable to understand or quantify the impact of their CPG choices.
Each year, – equivalent to 1.3 billion tons worth around US$1 trillion – ends up rotting in the bins of consumers and retailers, or spoiling due to poor transportation and harvesting practices.
. Consumers have very little transparency over where their recycling ends up, with 19% exported overseas. The facts and figures around Australia’s plastic usage speak for themselves:
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have expressed their intent to purchase environmentally friendly products over the past four years.

Nutrition
, with 3.3 dietary preferences per shoppers. Supermarkets are not designed for personalised approaches.
Consumers have a myriad of tools to help track their nutrition (Eg.
@Eat This Much
,
@Thriva
,
@FoodMarble
,
@MyFitnessPal
) but none of these platforms are integrated with the point of purchase of food in Australia.

Spending
Supermarkets are designed to encourage on things consumers don’t need.
, but a large majority of this is the same ingredients week in week out.

The Solution❗
Alex Beckett
Associate Director, Mintel Food & Drink

Cropship is a digital approach to the traditional supermarket model for consumers who want connected change.

An app-based food platform underpins a comprehensive e-commerce retail experience, to provide solutions and make food shopping transparent, beneficial and conscious.

Cropship helps consumers understand their impact and manage their shop as follows:

Community
Inspired by
@Patagonia
and
@Pledge 1%
Cropship commits 1% of total sales or 5% of their profit to environmental, food and community decided by consumers. The impact of these donations will appear on each user’s personalised
@User Feed
.
Users will also be able to put
@Rewards Scheme
points towards .
Cropship endeavours to be a and part of .
Like
@Yummi
, Cropship will develop as a social app for food with key features like the
@User Feed
connecting consumers with producers and influencers and a third party marketplace of food and drink manufacturers, similar to how
@Depop
and
@Grailed
faciliate a third party marketplace for clothing.
Chef users can post
@Recipe Stories
, linked directly to ingredient products. Any products featured and subsequently bought by users will allow Chef Users to earn a small passive affiliate marketing income.
Every SKU in Cropship’s
@Product Database
includes geolocation data which will provide consumers with information around the provenance of their product. This data will inform the content of the
@User Feed
.
Eventually, Cropship will partner with
@Provenance
to validate the supply chain of SKUs from paddock to plate.

Environment
Every SKU available on Cropship’s
@Product Database
quantifies the weight, type and recyclability of product packaging, through integration with the
@Open Food Facts
database and includes this information in
@Environmental Impact Insights
. This information informs the content within their personalised
@User Feed
.
Preference is given for product lines which harmonise with reducing packaging.
Wherever possible, Cropship partners with packaging providers such as
@Great Wrap
to package fresh products and provide sustainable solutions.
By providing a
@Subscription Refill
option, SKUs which are regularly bought can be collected, sanitised and refilled.
Ways to reduce and recycle food waste will appear on the
@User Feed
, based on historic product purchases. Users will be able to search the
@User Feed
for related content.
Inspired by
@The Capture Club
and
@tred.earth
, Cropship will provide compounded
@Environmental Impact Insights
on user purchases, based on their historic orders. The data underpinning these insights will be approximated through databases like
@Hestia
.
User are given
@Carbon Foodprint Offsetting
options, in partnership with
@Greening Australia
. Relevant vision of these initiatives will then appear on the
@User Feed
.

Nutrition
Cropship will provide compounded
@Nutritional Impact Insights
on user purchases, based on their historic orders. The data underpinning these insights will be scraped from the
@Open Food Facts
database.
Customers can filter out products or ingredients which are known allergens or sensitivities from their user account.
Cropship will eventually integrate with third party app like
@Apple Health
and
@Eat This Much
to ensure that data is flexible.

Spending
Cropship provides compounded
@Financial Impact Insights
on user purchases, based on their historic orders. The data categorises the regular shop and tracks expenditure from month to month. The data will inform the content on the
@User Feed
.
Cropship offers a
@Personalised Interface
based on user profile and preferences.
Cropship allows users to schedule a regular shopping window (weekly, fortnightly, monthly).
Cropship’s algorithm aims to learn user habits and frequency of routine purchases to economise time spent on the platform.
Cropship provides
@Siri & Andriod Assistant Integration
so users can add items to their regular list vocally.

UN Sustainable Development Goals
Cropship contributes solutions to the following
into its product offering:
Search
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Goal 2
image.png
Goal 13
image.png
Goal 15

Astronaut Thomas Pesquet

Key Assumptions 🧭
Conscious consumption is mainstreaming; consumers want sustainable, puropose-driven solutions and are willing to pay for it.
Consumers want to learn how their diet can benefit long-term cognitive health.
Data is already helping people get fit, find love and manage their finances; now it can help them fight climate change for a sustainable future.
Brainstorming
As an initial exercise, I mapped out all of the avenues and ways I could see Cropship helping consumers, producers and food marketers. It is hosted on
@Miro
and embedded here.

Feature Set
Below is a list of the features mentioned above, whether these are free or paid features, and what version of the product they will be released under.
Search
Feature
Priority
Free or Paid?
Version
1
User Feed
Free
MVP
2
Nutritional Impact Insights
Free, Limited
MVP
3
Financial Impact Insights
Free, Limited
MVP
4
Personalised Interface
Free, Limited
MVP
5
Email Login
Free
MVP
6
User Preferences
Free
MVP
7
Facebook Login
Free
MVP
8
Google Login
Free
MVP
9
Product Pages
Free
MVP
10
Product Database
Free
MVP
11
Environmental Impact Insights
Free
MVP
12
Carbon Foodprint Offsetting
Free
V2
13
Profile Pages
Free
MVP
14
Receipt Scanning
Paid
V2
15
Explore Product
Free
MVP
16
Recipe Stories
Free
V2
17
Rewards Scheme
Paid
V2
18
Third Party Sellers
Free
V3
19
Create Lists
Free
MVP
20
Subscription Refill
Paid
V2
21
Siri & Andriod Assistant Integration
Paid
V3
22
Open API for User’s Data
Paid
V3
23
Scheduled Shopping Window
Paid
V3
There are no rows in this table

User Stories
Below is a few User Stories to start to explain the journey of users and which features they require.

This is a useful tool for UI/UX development of the product and helps establish the Customer Journey Map being developed by the
@Product 💻
team.
Search
User Profile
Description
Features
1
1
As a new user, I want to create a new account with Email, Facebook, or Google
Email Login
Facebook Login
Google Login
2
2
As a new user, I want to state my dietary preference, food allergies, and sensitivities
Personalised Interface
User Feed
3
3
As a user, I want to explore product pages based on shopping categories
Explore Product
4
4
As a user, I want to see breakdown of a product’s nutritional stats and ingredients
Explore Product
5
5
As a user, I want to see a recommendation for similar products and the percentage difference in price
Explore Product
6
6
As a user, I want to see data around my order and what it means for my nutrition, the environment and my finances
Nutritional Impact Insights
Financial Impact Insights
Environmental Impact Insights
There are no rows in this table

Revenue Model
The main revenue stream for Cropship is a monthly Subscription as a Service (SAAS) model for premium features within the platform.

The suggested monthly fee is $15 per user.

Calculating Annual Recurring Revenue (ARR)
According to the 2016 Census of Population and Housing (Census), there were nearly 8.3 million households in Australia (TAM).

Within South Australia, there are 765,786 households according to the 2016 Census (SAM).

A realistic target of this market is 20,000 monthly subscribing households/users (SOM).
Search
Market
Description
# of Households
Monthly Pricing Plan
Monthly Recurring Revenue
Annual Recurring Revenue
1
TAM: Total Addressable Market
# of people in total market x monthly pricing plan x 12 months
8,300,000
$15.00
$124,500,000
$1,494,000,000
2
SAM: Serviceable Addressable Market
Portion of TAM that is serviceable
765,786
$15.00
$11,486,790
$137,841,480
3
SOM: Serviceable Obtainable Market
Realistic fraction of SAM that is obtainable
20,000
$15.00
$300,000
$3,600,000
There are no rows in this table

Cropship’s estimated
@MRR
is
$300,000
and
@ARR
is
$3,600,000
Other Revenue Streams
Cropship also produces revenue through Margin on CPGs and Sales of In-App Advertising Banners. Please see the section for the impacts of these.

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