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F&V Characteristics

Perishability of products

Seasonability of production

Bulkiness of products

Quality variation of products

Irregular supply of products

Small Holdings size

Scattered production processing


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Rising F&V Consumption

Rising income / Economic growth

Indias burgeoning middle-class

Substantial rise of the youth population

Demographical changes Health awareness

Increased literacy

New diseases prevalence Trade liberalization /Globalization

Development of better infrastructure &transit facilities


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Constraints in F&VMarketing

Lack of basic infrastructure viz.cool chains,logistics and supply chain management

Lack of proper grading and quality control system

Scattered productions

Lack of unity and organization skill among thefarming community

Inefficient & Imperfect markets

Lack of consumer packaging

Lack of forward & backward linkages Ignorance to new methods of cultivation

Perishability and Storability

Freight charges

Long marketing channel


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F&V Statistics

India 2nd largest producer of F&V

90 million tonnes of vegetables every year

40 million tonnes of fruit every year

Market size for F&V in India : Rs 145,000crores

Organised retail in this segment : 300crores (2%)

F&V constitute about 22% of the averagemonthly household consumptionexpenditure in urban areas

Annual Growth Rate 10-13%

Wastage : 25-30% of the total produce


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Company Mission

Mission Statement:

Our mission is serving the customersthrough best services.

Our Core Values:

To achieve maximum customer satisfaction.

To deliver quality services to customers.

Practice what we preach: honesty, integrityand ethics


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g a n isa tio n a lS tru ctu re


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Nature of Service

Home Delivery of F&V

Phone, SMS, Internet

Quality Assurance with Cash back

Guarantee Healthy Food items for consumers


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Chennai

Estimated Population 9.25lakhs in 2009

Literacy Rate 85%

60% population middleclass or upper

middle class


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Wholesale Price @ Chennai

Apple Rs.62.14/Kg

Banana

Rs.15.22/Kg Lemon Rs.9.79/Kg

Mosambi Rs.18.82/Kg

Mango Rs.22.28/Kg

Brinjal Rs.8.12/Kg

Cabbage Rs.3.02/Kg

Cauliflower Rs.8.28/Kg

Onion Rs.7.73/Kg

Data from NHB Market Database 2008


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Cost Factors

HR Office Activities/Order Processing

3*Rs.60000 p.a

Delivery Team 5*Rs.72000 p.a + ProfitBased Incentives

Sales Team 2*Rs. 102000 p.a + TargetBased Incentives

Total Cost Rs.742000 p.a

Assets Computer 2*Rs. 15000

Phone 10*Rs.1000 + Rs.3600 p.a

Mopeds 5*Rs.15000 p.a

Office Rent Rs.84000 p.a


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Sources of Financing

Partners Funding

Loans from Banks if and when necessary


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Product Assortments

Minimum Order Quantity - 2 Kg

Individual Ordering

Pre-packed Kits Offers further discounts


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Payment Options

Credit Card Payment Online/Phone

Cash on delivery of goods

Branded gift vouchers of Home Fresh

Prepaid Options


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Customers

B2B

Hospitals

Schools/Colleges

Hotels/Restaurants

B2C

Individual Customer

Flats/Residential Organisation


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Strategies

Strategy Home FreshServices Home Deliver

Phone, SMS or Internet OrderPricing Market Price + Small Premium

Distribution Direct Selling

Promotion Print & Visual MediaBTL Activities Road shows,Pamphlet DistributionInitial Attractive OffersBranded Packaging

Strengths InventoryQualityDoor DeliveryHealthy

Weakness Lack of trustPerishablePackaging Problems


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STP

Market Segments

55

Target Segments

25-35 & 35-45 : Office going & very busyhouseholds

Positioning

Healthy, Quality & Convenience


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PLC

INTRODUCTION GROWTH MATURITY DECLINE

ProductStrategy

DistributionStrategy

Promotion

Strategy

PricingStrategy

Limited variantsSeasonalchanges

More itemvariants

Large numberof items.

Eliminateunprofitable

items

Limitedarea wide

distribution

Expandeddistribution.

Long-term relations

Extensive.Margins drop.

Phase outunprofitable

nodes

Awareness.Stimulate

demand.Sampling

Aggressive ads.Stimulatedemand

Advertise.Promoteheavily

Phase outpromotion

Higher/recoupdevelopment

costs

Fall as result ofcompetition &

efficient produc-tion.

Prices fall(usually).

Pricesstabilize atlow level.


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