Fresh & Easy
A sw in i
N a sre e n
B h u va n a m b ig a i
A bheek
N ith in
S a u ra b h K u m a r
C handy
Jo h in d
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
Rising F&V Consumption
• Rising income / Economic growth
• India’s 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
Constraints in F&V
Marketing
• Lack of basic infrastructure [Link] chains,
logistics and supply chain management
• Lack of proper grading and quality control system
• Scattered productions
• Lack of unity and organization skill among the
farming 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
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 145,000
crores
• Organised retail in this segment : 300
crores (2%)
• F&V constitute about 22% of the average
monthly household consumption
expenditure in urban areas
• Annual Growth Rate – 10-13%
• Wastage : 25-30% of the total produce
Company Mission
Mission Statement:
• Our mission is serving the customers
through best services.
Our Core Values:
• To achieve maximum customer satisfaction.
• To deliver quality services to customers.
• Practice what we preach: honesty, integrity
and ethics
O rg a n isa tio n a l
S tru ctu re
Nature of Service
• Home Delivery of F&V
– Phone, SMS, Internet
• Quality Assurance with Cash back
Guarantee
• Healthy Food items for consumers
Chennai
• Estimated Population – 9.25lakhs in 2009
• Literacy Rate – 85%
• 60% population middleclass or upper
middle class
Wholesale Price @ Chennai
• Apple – • Brinjal – Rs.8.12/Kg
Rs.62.14/Kg • Cabbage –
• Banana – Rs.3.02/Kg
Rs.15.22/Kg • Cauliflower –
• Lemon – Rs.9.79/Kg Rs.8.28/Kg
• Mosambi – • Onion – Rs.7.73/Kg
Rs.18.82/Kg •
• Mango –
Rs.22.28/Kg
•
Data from NHB Market Database 2008
•
Cost Factors
• HR
– Office Activities/Order Processing –
3*Rs.60000 p.a
– Delivery Team – 5*Rs.72000 p.a + Profit
Based Incentives
– Sales Team – 2*Rs. 102000 p.a + Target
Based 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
Cost Factors
• Marketing Expenses
– Promotional Activities Ads – Rs.400000
– BTL Activities – Rs.200000
• Other Expenses
– Stationery – Rs.50000
– Uniforms – Rs.5000
– Packaging – Rs.20ps/Unit
Break Even
• Margin
– B2B - 7%
– B2C – 22%
• Breakeven
– 240 Tonnes (optimistic)
– 360 Tonnes (pessimisitic)
Sources of Financing
• Partners Funding
• Loans from Banks if and when necessary
Product Assortments
• Minimum Order Quantity - 2 Kg
• Individual Ordering
• Pre-packed Kits – Offers further discounts
Payment Options
• Credit Card Payment – Online/Phone
• Cash on delivery of goods
• Branded gift vouchers of Home Fresh
• Prepaid Options
Marketing Channel Options
Option I
Option II
Customers
• B2B
– Hospitals
– Schools/Colleges
– Hotels/Restaurants
• B2C
– Individual Customer
– Flats/Residential Organisation
Strategies
Strategy Home Fresh
Services Home Deliver
Pricing Phone,
Market SMS
Price or Internet
+ Small Order
Premium
Distribution Direct Selling
Promotion Print & Visual Media
Strengths BTL Activities – Road shows,
Inventory
Weakness Pamphlet
Quality
Lack Distribution
of trust
Initial
Door Attractive Offers
Delivery
Perishable
Branded
Healthy Packaging
Packaging Problems
STP
• Market Segments
– <25
– 25-35
– 35-45
– 45-55
– >55
• Target Segments
– 25-35 & 35-45 : Office going & very busy
households
• Positioning
– Healthy, Quality & Convenience
PLC
INTRODUCTION GROWTH MATURITY DECLINE
Product Limited variants More item Large number Eliminate
Strategy Seasonal variants of items. unprofitable
changes items
Limited Expanded Extensive. Phase out
Distribution distribution.
area wide Margins drop. unprofitable
Strategy distribution Long- nodes
term relations
Awareness. Aggressive ads. Advertise. Phase out
Promotion Stimulate Stimulate Promote promotion
Strategy [Link] demand heavily
Higher/recoup Fall as result of Prices fall Prices
development competition & (usually). stabilize at
Pricing efficient produc-
costs low level.
Strategy tion.
Marketing Practices
• Emphasize quality—fresh produce, clean
salespeople
• Use distinctive signs, packaging, and clothing
to help build customer recognition
• Keep our ears open for new ideas about what
customers want to buy.
• Protect product freshness; sell as quickly as
possible
• Set prices in round figures to speed up sales
and reduce problems with making change.
• Clearly label items and prices.
• Smile; be friendly; give a special greeting to
repeat customers.
