Organic Business Model

Team Pacemaker
Amit Kumar Pandit Anubhav Tiwary

Agenda
Introduction to Business Model Hierarchical Analysis of Model Point of Sales Identification Marketing Strategy Conclusion

Proposed Business Model

Our proposed business model is based on combination of vertical integration and horizontal coordination
Krishi Prayog Pariwara (KPP)

Organic Farmer Cooperative (District Level)

Store , Pool & Sell Non Perishable Product

District level Coordination

Organic Farmer Cooperative (District Level)

Store , Pool & Sell

POS1

POS2

POS3

Non Perishable Product

POS1

POS2

POS3

Perishable Product

Perishable Product

Perishable Product

Perishable Product

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Proposed Business Model

Our proposed business model is based on combination of vertical integration and horizontal coordination
Krishi Prayog Pariwara (KPP)

Organic Farmer Cooperative (District Level)

Store , Pool & Sell Non Perishable Product

District level Coordination

Organic Farmer Cooperative (District Level)

Store , Pool & Sell

POS1

POS2

POS3

Non Perishable Product

POS1

POS2

POS3

Perishable Product

Perishable Product

Perishable Product

Perishable Product

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Taluk Level Cooperative (TLC)

Formation of cooperative at taluk level is to bring together farmers and incentivize organic farming .This cooperative will act as pooling point of organic product and will also finance farmers whenever required. Responsibilities & Functionalities TLC
Pool

Farmer Farmer

Farmers to become member of cooperative by paying initial membership amount depending upon financial situation. 70% of this money should be passed on to higher level which can be used for marketing activities, packaging , transport etc. Pool the produce from different farmers at common point. Depending upon perishability of product like vegetables, dairy milk etc., products will be sold directly at Point of Sales ( POS) identified by cooperative. Depending upon the type of product & demand within a given region, same POS can be served by different Taluk Level Cooperative.

Addressing the challenges & analyzing the impact of Taluk level Cooperative Act as pooling point Separation of product on the basis of quality & perishability can be done to ensure standardization at higher level. This will help to reduce the selling cost incurred by farmers while selling individually. Mitigate Risk Mitigate risk by providing financial stability to farmers in case of loss. Incentivize farmers to pursue organic farming To cover the future expenses and individual financial issues of farmers, 5-10% of profit generated can be retained at taluk cooperative level to make this model financially sustainable. Revenue from direct POS can be utilized for daily needs Direct transport to POS Regulate the demand and supply gap by serving same POS through different cooperative for perishable products. Offer complete basket of product to consumer by combining produce from different villages.

Proposed Business Model

Our proposed business model is based on combination of vertical integration and horizontal coordination
Krishi Prayog Pariwara (KPP)

Organic Farmer Cooperative (District Level)

Store , Pool & Sell Non Perishable Product

District level Coordination

Organic Farmer Cooperative (District Level)

Store , Pool & Sell

POS1

POS2

POS3

Non Perishable Product

POS1

POS2

POS3

Perishable Product

Perishable Product

Perishable Product

Perishable Product

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Organic Farmer Cooperative ( District Level)

Point of Sales

Commercial Customer Restaurants, Yoga House

Residential Society Sobha Opal, Purva Riviera

Organic Concept Store 400-500 Sq. Ft, 100-150 SKUs

MobileVan Store Organic 2U Store

Restaurants like Lumiere Organic Restaurant, In the Pink Organic can be targeted under this route . Many Yoga Clubs in Bangalore provide caf and restaurant facility to its customer using organic product. Need to communicate importance of organic products and how they can benefit from it.

Big residential societies having 50-100 families can be targeted Daily delivery of perishable product like vegetables and dairy product can be done for such customer In Future, negotiate with committee members of the society to setup store inside the complex. Online order facility for residents in case they want to order in bulk

These stores can be setup depending upon demand and population density within a given region. Start with 5-6 stores in cities like Bangalore and expand depending on demand. Stores should have smalls SKUs product to attract first time buyers.

Use Mobile Store to sell directly to customer. Keep mix of perishable & non-perishable products like Spices etc. On each day of a week, van will visit at different locations identified. Ideal locations to target : Residential areas, Market areas Schedule of visit can be communicated through website /poster at locations/posters on van

Organic Farmer Cooperative ( District Level)

Organic Farmer Cooperative(District Level)
Branding & Packaging Store , Pool & Sell Branding & Packaging Packaged & Branded Products Packaged & Branded Products POS2

Non-perishable product like spices, Rice, Dal, etc.

POS1

POS3

Perishable Products like vegetables etc.

Offer complete basket, manage demand & supply gap

Perishable Product

TLC Addressing the challenges & analyzing the impact of District Level Cooperative

TLC

Act as Store, Pool & Sell Point

Branding Activities

Financial Stability

This will acts as store, pool & sell point for non-perishable products. Depending upon market condition and price, product can be sold throughout the year. Can be used to manage the uncertainty & demand-supply gap through cooperation with other District level cooperative. Can be used to offer complete basket of product to consumer by bringing produce

Branding activity like packaging can be done for all the products at one place at district level. Manufacturing of packaging material should be done by 3rd parties to ensure uniformity in design & build brand.

District level cooperative will act as fund management point. 10-15% of profit from sale will be kept at this level to manage marketing & promotion activities, packaging and transportation. This will ensure financial sustainability in long term.

Proposed Business Model

Our proposed business model is based on combination of vertical integration and horizontal coordination
Krishi Prayog Pariwara (KPP)

Organic Farmer Cooperative (District Level)

Store , Pool & Sell Non Perishable Product

District level Coordination

Organic Farmer Cooperative (District Level)

Store , Pool & Sell

POS1

POS2

POS3

Non Perishable Product

POS1

POS2

POS3

Perishable Product

Perishable Product

Perishable Product

Perishable Product

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

KPP will be responsible for managing the marketing & promotional activities, market information collection and transfer and coordination among various Organic Farmer Cooperative (OFC) whenever required.
Packaging Manufacturer Packaging Material Contract

Krishi Prayog Pariwara (KPP) Level

Krishi Prayog Pariwara (KPP)
Data Collection

Organic Market

Information Transfer

Data Collection District level Coordination

Data Collection

Information Transfer

Organic Farmer Cooperative (District Level)

Organic Farmer Cooperative (District Level)

Addressing the challenges & analyzing the impact of KPP Marketing Decision on brand name Design of logo Promoting a tagline Buy organic buy fresh Designing of marketing activities Cooperate with district level to ensure uniformity of brand Effective implementation of marketing strategy across districts Database Create a database with information relating to each district for following points Crop grown Quantity produced Sales data Surplus data Coordination Coordinate and direct districts for cooperation Help estimate region wise demand Managing deficit and surplus across all the district Packaging Design of packaging material Printing and sourcing of material Establishing and maintaining uniformity of packaging standard

Proposed Business Model

Krishi Prayog Pariwara (KPP)

Organic Farmer Cooperative (District Level)

Store , Pool & Sell
Non Perishable Product

District level Coordination

Organic Farmer Cooperative (District Level)

Store , Pool & Sell

POS1

POS2

POS3

Non Perishable Product

POS1

POS2

POS3

Perishable Product

Perishable Product

Perishable Product

Perishable Product

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Taluk Level Cooperative

Pool

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Marketing Strategy Buy Organic Buy fresh

Challenges: 1. To inform the customer about value proposition of organic food 2. To make the customer believe about genuineness of organic product being sold under the brand name through KPP Objective: Create brand name, Spread awareness and Build trust among customers Target Customer: Building relationship with people who are not only concerned about bottom-line but value health and environment

Communication Strategy :
1. 2. 3. 4. 5. Tastes better Healthy Environment friendly Sustained local economy Emotional connect with farmers

Marketing Strategy :

Brand building Create brand name and logo so that customer may identify genuine organic food product and differentiate from fake products

Farm visit Organize farm visit for customers to establish genuineness of product and build relationship; help them understand value chain It will improve word of mouth publicity and promote trust factor

Packaging Novel and attractive packaging with environment friendly material used for the purpose of extending core massage of health and environment friendliness All product should bear brand name and logo along

Marketing Strategy Contd.

Use of local media Use local TV channels, newspapers and FM radio for advertisement to customer know about brands Arranging interviews of farmers and organizing social events in nearby locality to facilitate interaction

Documentary video Create documentary video about organization, organic farming and farmers to promote local sentiments of belongingness Promote video through online (websites) and through local TV channels Show this movie to housing areas by organizing seminars or distributing CDs.

Promotion It is important to encourage people to try the product for the first time; distribute free samples or create smaller SKUs to lower the risk of first time purchase Build relationship with commercial customers and leverage this to promote brand through testimonials Promotion in Organic concept store : Show stories of farmers through pictures inside the stores.

Internet & Website Creating separate portal to provide information about brand, product offerings and existing customers Using website to educate customer about organic farming and provide information about local farmers To help potential customers to connect with us and initiate business relationship

THANK YOU