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INSTITUTE FOR TECHNOLOGY AND

MANAGEMENT

ORGANIC FARMERS MARKET

SUBMITTED TO:

Dr. Snigdharani Mishra

PR ESENTED BY: Group No. 04

N iharika Durvasula-04

Dharmambir Singh-14

J. Rashmiranjan Ray-24

Amit Agarwal-34

Ankur Mathur-44



Selected Place in Mumbai

Place: Vashi (Navi Mumbai)

Analysis of the Environmental factors that led to the

Growth of the Organization

The lifestyle of the people and the quest to have the best of the

quality products has led us to come u p with this business plan for

organic far mers market..

The vegeta bles and fr uits which are in the domestic market areusually chemically treated by the retailers for greater attractiveness

leading to better profit margins taking a toll on the health of the

consumers. Direct far m fresh produce by the far mers would help

solve this pro blem and also the far mers would be directly benefited

by this plan in ter ms of their capital gain.

The Vashi area of Navi-Mumbai has developed a lot during the last

decade. It has grown enor mously in ter ms of commer cialcapitalization.The ideal place to set u p this market would be in vashi

which has become the centre of Navi Mumbai. The area is easily

accessi ble by all modes of transport.



Company Name and brief description

ORGANIC FARMERS' MARK ET

I T RO UC TI ON

Direct marketing is a long felt need of the far mers and consumers of the country

as it goes a long way in ensuring higher remuneration to the far mers and

meeting the satisfaction level of the consumers through direct sale of the

agricultural commodities by the far mers to the consumers at afforda ble prices.

CONCEP T

Organic far mers market were introduced with a view to eliminate the

middlemen and arrange facilities for the far mers to sell their produce directly to

the consumers at reasona ble rates fixed every day. On account of the scheme

both the far mers and the consumers are benefited .



Problem in the market to be addressed

R egulated market yards for fr uits and vegeta bles are f unctioning only at a few

centres. The marketing system for fr uits and vegeta bles is now in the hands of

middlemen. Middlemen exist at various levels between the far mers and the

consumers and exploit through malpractice in weights, handling and payments.

A large number of small far mers are una ble to effectively bargain for better

price in the wholesale market. Inefficiencies in the wholesale markets results in

a long chain of inter mediaries, multiple handling, loss of quality and increase

the gap between the producer and consumer prices. Large number of small

retailers, each handling small quantities, create high overheads leading to h igh

margin on produces.

It is, therefore, felt necessary to evolve an alternate marketing strategy where

both growers and consumers are benefited through this market.



How does this service would address the problem ?

The o bjectives of the organic far mers market are mainly:

1. To ensure remunerative prices to the far mers and provide fresh vegeta bles to

the consumers at reasona ble rates fixed every day.

2. Facilitate prom pt realization of sale proceeds to the far mers with out any

deductions.

3. Cur b malpractice in weights.

4. Provide direct interface between far mers and consumers - eliminating

inter mediaries in trade.



Current Potential Competitors

The main com petitors of the organic far mers market are the local market

vendors and also the ma jor su per markets selling vegeta bles and fr uits like Big

Bazaar, Hyper city etc.

Competitive advantage

Organic far mers market can withstand the com petition in the following ways:

P ice Fix tio

The market committee will every day communicate the moderate wholesale

prices of vegeta bles through fax between 7.30 AM and 8.00 AM. Based on the

same, the prices of vegeta ble are fixed in consultation with the far mers

committee, which may be 20% -25% higher than the whole sale price and lower

than the local retail market prices in the area.

P lic A e te

Prices of vegeta bles are frequently announced through public address system to

create awareness of the rates of the vegeta bles among the consumers as well as

far mers.



Description of the Target Market and Demographic

attributes

S

uccessf ul operation of direct agricultural marketing infrastr uct ure facilities

depend u pon location of the bazaars, number of customers visiting the bazaar

per day, nature, type, quantity and quality of agricultural produce being brought

by the far mers for sale, systematization of the retail price fixation mechanism,

allotment of stalls to the far mers on far mers¶ grou p, design of the stalls based on

the nature, type and quantity of scala ble items brought by the far mers,

availa bility of f unctional infrastr ucture facilities viz. cleaning, grading,

weighing, packaging, short ter m storage etc., price display mechanism, loud

speakers and broadcasting system, availa bility of utilities viz. electricity, water,

gar bage disposal/ cleaning facilities and last but not the least services/ facilities

for the convenience of the consumers viz. parking, coin chang ing machines,

grievance redress mechanism etc. The facilities should, therefore, match to the

requirement of the far mers and the consumers/ customers.

The demographic attri bute would consist mainly of the working class with

lower and middle income grou p category. The health conscious grou p would

also fit into this category.



Demographic Classification

Consumers Per centage

Male 38

Female 62

Age grou p Per centage

Below 20 years

10

21-30 years 23

31-40 years

29

41-50 years 26

A bove 50 years12



Projected market in next 5 years:

Based on the current consumer per ception of organic foods and the

attractiveness and benefit to the far mers this business plan is expected to grow 4

times in the coming years already taking a success route in the im plemented

areas.

190,000

195,000

200,000

205,000

210,000

215,000

220,000

225,000

CurrentMarket ProjectedMarket

Customers

Customers

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