QUARTER FINAL | BUSINESS CASE - BCS 07

Submission BCS 07

NMO Season 3

Create a Fund raising proposal to support expansion for Farm To Table

Submission Date & Time : 2021-02-28 09:25:57

Submitted By : Sanjay Dutta - From Team Wright

Assignment TakenFinance Manager Submission-BCS 07
Case UnderstandingFresh Grower is a Pune based company .The company provide fresh and unadulterated farm produce to the Indian population. farmers are rigid in their traditional methods like harvesting produce at a bit early stage and ripening them either through chemical process or natural process during transit and storage. Also, they were not agreeing on demand-based partial harvesting needed at early stage as they prefer to harvest whole farmland at one go to save cost and effort. Other challenge he found that it is extremely hard to convince farmers to use organic practices instead of using pesticides, urea & germicides.Marketing was again a challenge as consumers found it very convenient to purchase either from Local Vendors Or from App Based daily need ordering services Both Local vendors & App based services claimed that they are supplying fresh produces as well.He wants to expand his business to at least 3 metro cities, in next 2 Years. Fresh Growers has efficient working team of HR,IT, Marketing, Finance,Warehouse people, Operation people, delivery executives and consumer grievance team.Fresh Grower supports online payment method.
BCS Solution SummaryFresh Grower is working in Pune City along with Firm Products, and it is working on home delivery system which purely an e-commerce business and Fresh Grower want to expand the business in other 3 metro Cities. The case has many aspects regarding finance, marketing, customer grievance and quality of the products. Also marketing strategies has to be made in order to penetrate in the newer market. Existing plans are not sufficient to expand the business, The SWOT analysis and problem occour in expansion of business. SWOT analysis will help to understand the factors affecting business and make plans and effective decision making. A problem in business Document will describe a what problem occure in expanding the business and solution of the problem.
Solution

Fresh Grower is working in Pune City along with Firm Products, and it is working on

home delivery system which purely an e-commerce business and Fresh Grower want

to expand the business in other 3 metro Cities.

The case has many aspects regarding

finance, marketing, customer grievance and quality of the products. Also marketing

strategies has to be made in order to penetrate in the newer market. Existing plans

are not sufficient to expand the business, The SWOT analysis and problem occour in

expansion of business. SWOT analysis will help to understand the factors affecting

business and make plans and effective decision making. A problem in business

Document will describe a what problem occure in expanding the business and

solution of the problem.

 

  1. SWOT ANALYSIS:

Strengths:

Weaknesses:

Experience staff & strong delivery system

Limited Capitals

Well Organized Brand

High Turnover

Cheaper Prices

Lack of Trust in

Fresh Food

Weak Inventory & Quality Management

Modified Menu

Financial Stability

Multiple Features in-App

 

Opportunities:

Threats:

Food Truck & Wagons

Cheaper Prices of Competitors

Expansion Across the country

Economics Downturn

COVID 19

Competition

Marketing Opportunities

Frequent Technologies Development

Necessity Products

 

 

SWOT- STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS.

 

SWOT analysis is a strategic planning technique used to help a person or an organization identify

its strengths, weaknesses,opportunities and threats

 

Marketing plan

Fresh growers:

For Digital Marketing and social media marketing:

They should focus on,

 

1. SMO- social media optimization

2. SEO - search engine optimization

3. SMM - social media marketing

 

For SEO,

There is a huge opportunity to bring organic traffic. They should work on their

website keywords by doing keywords research region, city area wise. They

should choose keywords according to target audience, their searches and

expectations. Keywords with high volume and high competition should get

targeted.

Start making content with those keywords. Daily blogs, articles, stories should

get posted

 

SMO :

For social media marketing they should work on quora question answer, off page SEO, on page SEO, article submissions, pdf submissions on different sites.

E.g tumbler, Diggo, Reddit, Slashdot etc etc. So here is chance to do social media marketing and SEO as well. They should have their Instagram, LinkedIn, Facebook, Twitter account and they can do daily posting there about there products, offerings. So more awareness will get create.

SEM:

For search engine marketing they can run Google paid ads.

1. Search campaign

2. Display campaign

3. Brand awareness campaign

 

Financial Planning:

Creating a Fund Raising Planning, Budgeting & Operational Cost Maintaining:

 

Some Figure for better understanding:

Growth Chart

Period

No. Of Active Subscriber

Remark

2019-2020 Quarter 1

50

 

2019-2020 Quarter 2

120

 

2019-2020 Quarter 3

160

 

2019-2020 Quarter 4

200

 

2020-2021 Quarter 1

400

Lockdown Inpact

2020-2021 Quarter 2

500

Lockdown Inpact

2020-2021 Quarter 3

450

 

2020-2021 Quarter 4

400

Ongoing

 

 

Startup Expenditure

Sl No.

Particular

Amount

1

Company Formation

25,000

2

Computers

1,00,000

3

Furniture

1,50,000

4

Heat Shrink Wrap Machine

35,000

5

Printer

15,000

6

Down payment for 2 Delivery Vans

2,00,000

7

Office Deposit

3,00,000

TOTAL

8,25,000

 

Monthly Expenditure

Sl No.

Particular

Amount

1

Website & Digital Marketing

20,000

2

Promotional Material

10,000

3

Labour & Farm Contractors

60,000

4

Delivery Boys(4@15,000)

60,000

5

Packing & Cleaning Staff(4@8,000)

32,000

6

Office Admin Staff(2@25,000K)

50,000

7

Office Rent

30,000

8

Electricity & Internet

4,000

9

Packing Material

10,000

10

Tractor Rental Charges+Diesel

35,000

11

Delivery Van EMI(20,000 each vehicle)

40,000

TOTAL

3,51,000

 

Planning for Next 2 FY with recurring expenditure & Budget

Sl No

Particualar

Amount

1

Office Deposit  (3 Cities with 1 Office)

 6,00,000

2

Legal Expense(Rent Agreement Cost)

 30,000

3

Furniture Cost(150k each)

 4,50,000

4

Computers(100k for each Office)

 3,00,000

5

Heat Shrink Wrap Machine(35k for each Office)

 1,05,000

6

Printer(15k each office)

 45,000

7

Down payment for 2 Delivery Vans(each Office)

 6,00,000

TOTAL

 21,30,000

 

Monthly Expenditure for upcoming Project

Sl No.

Particular

Amount

1

Website & Digital Marketing

60,000

2

Promotional Material

30,000

3

Labour & Farm Contractors

1,80,000

4

Delivery Boys(4@15,000 for 3 Office)

1,80,000

5

Packing & Cleaning Staff(4@8,000 for 3 Office)

96,000

6

Office Admin Staff(2@25,000K)

1,50,000

7

Office Rent

90,000

8

Electricity & Internet

12,000

9

Packing Material

30,000

10

Tractor Rental Charges+Diesel

1,05,000

11

Delivery Van EMI(20,000 each vehicle)

1,20,000

12

Miss-Expenses

2,00,000

TOTAL

12,53,000

Proposal for Fund raising:

Finance Department will Present the projects to the Bank/Lenders

  1. Firm need Capital of Rs: 6,000,000 from Bank/Lenders
  2. Firm need at least liquid capital Rs: 500,000 for emergency
  3. Firm need capital with max 11.5% pa
  4. Firm need minimum 3 lenders
  5. Firm need minimum 3 or more type of investment tools

Budget for Next 2 Years with Fund Requirements

SL No.

Particular

Amount

1

Total Fund Requirement for New Project

 60,00,000

2

Recurring Expense for 2 Fiscal Year

 12,53,000

3

Fixed Expense for 2 Fiscal Year

 21,30,000

4

Cost of Fund

 6,90,000

5

Current Office Expense

 3,51,000

6

Investment

 10,00,000

7

TOTAL EXPENSE

 54,24,000

8

Liquid Fund

 5,76,000

Revenue & Profits

SL No.

Particular

Amount

1

Current Subscription(household)

 400

2

Per Household daily average buying

 200

3

Average farm Produce purchase cost to company per household(paid to farmer)

 170

4

Revenue(per household)

 30

5

Total Revenue per Month

 3,60,000

6

Monthly expenditure

 3,51,000

7

Profit from Firm per month

 9,000

8

Profit from Firm per annum

 1,08,000

 

2.POSITIONING

2.1 BUSINESS OPPORTUNITY:

Because of Benefits of organic vegetables More Nutrients. The European Union funded study found that organic fruit and vegetables have up to 50% more antioxidants, which scientists believe can cut the risk of cancer and heart disease. They have also more vitamins and minerals such as iron and zinc.

According to other recent studies, organic foods are better for fighting cancer. Like food, Medicine, Electronics and many other industries now involves in Home delivery of products and vegetables and fruit are not in range because it involves very crucial timings and quality supply each and every day. And FTT is providing this service to consumers in the main pune city and also want to expand its business in other 3 cities namely Mumbai ,Bangluru and Hydrabad by looking for major opportunity in the newer markets in this cities of India. This business will provide more convenience and assured delivery to the consumers.FTT is an app-based ordering system that provides for daily need products - vegetables and fruit. this startup has a huge future ahead.

 

2.2 Problem Statement:

The problem of

Morning hassle for buying vegetables

 

Inventory management

 

Increasing compition

 

Delivery of product in less time

 

Marketing

 

 

Affects

Daily valuable time of working women in

 

morning

 

HR depaetment

 

Marketing Department

 

Leadership

 

 

The impact of which is

Overall schedule of the day and inefficient

 

work

 

Ineffectiveness and inefficiency in overall

 

business operations and management.

 

 

a successful solution would be

A flexible, assured and daily vegetables

 

service which can help to reduce the hassle

 

of working women and of other family

 

members for going out daily to purchase

 

vegetables and fruits. This can involve

 

adjusting your timing, products consumer

 

needs and convenient payment process. It

 

will be able to reduce the cost and time of

 

consumer for this daily routine.

 

By overcoming the problems of management

 

and marketing and smooth functioning in the

 

organization.

2.3 CUSTOMER REQUIREMENT

the customer seems to require

·

Timely deliveries

·

Quality of organic product

·

proper delivery systems

·

why they should use our services rather than other services.

2.4 CUSTOMER SATISFACTION

Customer satisfaction is the main thing in any kind of business. The happier the customers are,

the better it is for business. In the next 2 years, the organization aspires to not only retain the

customers but increase its customer base and its brand value.

3. STAKEHOLDER'S AND USER DESCRIPTIONNAME

DESCRIPTION

STAKEHOLDER TYPE

Human resource

Provide training and skill

development manual adequate

workforce

General management

Marketing department

Create marketing brochure

Promotion and branding of the

entity

General management

Finance department

Fund raising ,All finance related

issues like investments, cash

flows, returns from projects,

budgets.

General management, leadership

IT and business analyst

MIS MIS reporting ,App developing and

business statistics.

Facilitating Information and

statistical data to other

departments.

General management

Leader

Provide the path to

achieve goals timely

Coordination among

different departments

Planning and supervision.

Legal matters Growth opportunities

Provide a healthy and improvised

working environment

·

·

leadership

4. VISION STATEMENT

"THE MISSION OF FTT IS TO PROVIDE HIGH QUALITY OF ORGANIC VEGETABLES AND FRUITS IN

MINIMUM TIME AND MAXIMIZE CUSTOMER SATISFACTION THROUGH BEST DELIVERY

SERVICES IN INDIA. "

The FTT or Fresh Growers , aspires to be in three cities in next two years. It also looks forward to

·

Expand in range of products

·

Increase its scale of sales.

·

Gain the title of the best delivery app

·

Increase its workforce

·

Best quality product company

·

Maximize customer satisfaction and shareholder wealth.

5.PRODUCT OVERVIEW

5.1 PRODUCT PERSPECTIVE:The DND is an app-based platform where customers mention their daily requirment of vegetables

which type of vegetables they want , which is delivered to them within minimum 6 hours. The

organization aspires to make significant and reputed brands .

FTT describe how an application is simply run and to use for any type of customers.app is run on

some steps given below:

Step1: Andriod application FTT New signup or login.

Step2: Enter details like name,email,mobile number and location.

Step3: Choose vegitables and Fruits which they want and choose time.

Step4: Payment through any digital payment method

Step5: FTT place the order and notify the customers

5.2 ASUMPTION AND DEPENCIES

ASSUMPTIONS

DEPENDENCIES

The market base will increase or remain

constant

Requirements will increase or remain

constant.

E-commerce will increase.

Market trends and governmental policies

The scale of operation will increase

Further investment in storage and delivery

facilities. (stats given in the case study

shows growth prospect) .

5.3 NEED AND FEATURE

NEED

PRIORITY

FEATURES.

Customer satisfaction

High

·

Timely deliveries

·

Quality products

·

Rewards and gifts

Employee training

High

·

On the job training

·

Performance-based

incentives

Increase marketing

Medium

·

More advertisement

·

Engaging digital

and social media platforms

·

Direct selling and

demo services.

More Investments in R&D

and operations

High

·

Venture capital to

be promoted

·

Government

schemes

·

Loan from bank

Supply chain and operationshigh

·

Cold chain storage

·

Better delivery

equipment

·

Recycle waste

Establishing QMS

High

·

ISO 9001

implementation

·

Control checks.

·

Random sampling

Expansion of services

provided.

Low

·

Increase in variety

of products within dairy itself

·

introducing evening

deliveriesInnovation in-app

High

·

better feedback

system

·

make it more

convenient to access

·

more visual content

·

customer individual

requirement calendar

Increase customer base

Medium

·

enhance marketing

and branding

·

increase

recommendations from

customers.

Branding

High

·

build a reputation in

the market- CSR,

environment-friendly

operations

Engaging more suppliers

Medium

·

engage more

reputable brands to use our

distribution platform

Maintain current ratio

High

·

Manage financial

requirements

·

avoid extensive

marketing

·

Focus on R&D

Engaging customers

Medium

·

Point system to be

introduced

·

Gifts and rewards

on earning specific points

·

Extra supplies on

the festive season.

5.4 cost and pricing

For selling fresh vegetables, superstores normally follows a competitive pricing

strategy and keep changing the vegetables price according to the market price.Cost of

service will be charged according to the products, but with more products charge will go down.

6 Other Requirements

6.1 Applicable Standards

The guidelines are part of directives issued by the regulator to re-operationalise licensing and

registration of ecommerce food companies.

Norms those are to be followed like

l

Licensing

l

ISO certification

l

Test plans

l

Food should have remaining shelf life of 30% or 45 days before expiry at time of delivery

l

Mandatory info mentioned in FSS act must be provided to consumer

l

Only fresh food to be delivered

6.2 Labeling and packagingTo prevent from adulteration proper packaged food has to be supplied to consumer. So proper

packaging of products with proper labeling to give certainty to the consumers about safeguarding

of a product.

Flow of product from farm to customers

 

 

 

 

The four basic tasks: unpacking and inspecting incoming goods; placing goods in

shelf, recording their location; and shipping are done by the employees. All the

quality checking and inspection is commonly done in the warehouse. From warehouse

the products are distributed to its outlets through their own vehicles. Most of the

superstores use cold storage system in the warehouse as well as outlets to carry and

preserve the fresh vegetables in their outlets. According to existing distribution

network the customers typically pick fresh vegetables from outlets. Nowadays,

customers can buy online/ via home delivery system.

Leadership management principles-

A leader should cover all the principles -

·

Time management

·

Quality management

·

Strategic management

·

Leadership management

·

Operations management

Suggestions for the strategies of Organizational Growth for the next 2 year

·

Generating Customer awareness through promotional tactics

·

Increase Marketing

·

Rise in prices of existing products

·

Expansion in product line

·

Introduction of ERP system for internal management of organization

·

•Upgradation of app to entertain daily ratings, regular tracking of deliveries

 

Tagline

“FRESH GROWERS AT YOUR DOORS”

ConclusionIn order of perishable vegetable sector to flourish in pune, needs to facilitate the required logistics and appropriate policies to ensure the growth. It would be extremely difficult for super chain to be efficient. The proposed distribution model discussed here will give a competitive advantage to FTT to increase efficiency, reducing cost and delivering products in shorter time to consumer. In addition, as a whole to the right ecosystem for handling fresh vegetables, Fresh Growers needs to ensure cold storage system, uninterrupted electricity connectivity so that the value chain can work efficiently and supply in a very low cost. After the overall analysis we can recommend that the suppliers will still remain as a major distributor for supplying perishable and fresh vegetables. This will reduce overhead cost, time and dependency. In addition, it will increase the lifetime/freshness of the vegetables. The quality is key concern for any superstores. Quality checking can be done directly at farm or outlet level.
Attached File Details

Comments

me

Winston Pinto

Nice Efforts. The right direction towards fundraising Best of Luck.





Participant

Sanjay Dutta

Arohan Financial Services Limited, Assistant General Manager

Business Development, Heading State Operation, Team Leader, Dynamic Business Experience







Team Bose BCS 07 Submission

Points: 0

Anamika Arya

Head Human Resource Department


Points: 0

Mehrzaad Mogrelia

Head Finance Department


Total Team Points: 48400



Team Tesla BCS 07 Submission

Points: 0

Tejaswi Varshney

Leader

Points: 0

Avani Jatia

Head Marketing Department

Points: 0

Narendra Mekala

Head Human Resource Department


Total Team Points: 37900





Team Leonardo BCS 07 Submission

Points: 0

Aswath S

Head Human Resource Department


Points: 0

Saurabh Kumar Yadav

Head Finance Department


Total Team Points: 76585