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

Assignment Taken

Finance Manager Submission-BCS 07

Case Understanding

Fresh 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 Summary

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.

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”

Conclusion

In 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.

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