9. Consumer Lure
Strategy
Producer surplus
Appearance at location
with produce
Location selection
Consumer
purchase
Our time & location
selection service
Consumer need for
better produce at a
lower cost
Lure customers to download
app
Social media
advertisements
Customer retention through
efficiency
Promote interaction between
farmers, us & customers
Choose Marketing
approach
Educate on going
organic
Advertising: Personal selling
Postal advertising
Printed advertising
Word of mouth
App & website
Customer reception
App & website
matchmaking
Producer Lure
Strategy
Producer Sale
Strategy
Consumer Purchase
Strategy
Marketing strategy
should mean customers
Route to Market
10. Buy equipment
Start media promotion
If we can do a study the first couple months on each segment, we would have a better
understanding of whom would be better to target.
Solidify agreements
with the advisory
board
C r e a t e a n d m a n a g e a p a g e f o r
s u g g e s t i o n s a n d i n t e r a c t i o n
F i x a n y b u g s i n t h e o n l i n e s y s t e m sHave first version in
the app store
Create a website
Postal ads
Print Ads
Text notifications
Road Map & MilestonesoperationsR&D
Sales&
marketing
Sept – Dec 2014 Dec – March 2015 April – June 2015 July – Sept 2015
Partner with FARMA
Now
Fill social media platforms with relevant information and links
Have intern manage social media platforms and application suggestion page
continue media promotion
C r e a t e a n d m a n a g e a p a g e f o r
s u g g e s t i o n s a n d i n t e r a c t i o n
Fix any bugs in the online systems
P e r s o n a l s e l l i n g
12. In Conclusion…
£800m fruits and vegetables
go to waste every year
Farmers can maximise
revenue through our markets
Bringing fresher produce to
customers at a lower price
IN BRIEF (60 seconds maximum):
What type of business is this (b2b, b2c, technology development, social...)
What are you offering, for whom
Why is it compelling (“a solution to…”)
How you make money (or achieve social impact if applicable)
What you have achieved so far
We have farmer joe, he has a small farm and too much produce, he sells the majority of his produce in farmers markets and always seems to have leftover produce that doesn’t get sold which he will have to waste – he would usually allow this produce to decompose and plough it back into the field when they could be increasing their revenue – that’s where we come in!
Small scale farmers tend to utilise their waste in a way that does not profit their business.
They plough it back into their fields instead of using the waste to increase their revenue.
According to the BBC, 47% of the European union 128billion euro a year goes to subsidise farmers who don’t receive high enough prices for their produce.
£800mn of fruits and vegetables produced by farmers go to waste
They could make more profit out of their waste and need more outlets to sell
They can increase their revenues!
Solution
Bespoke Farmer’s Markets
An app that allows farmers to notify us of potential wastage
USquared will then organise a pop-up farmers’ market
Farmers can sell these produce to customers at a lower price
Team Members
Daren – Logistics and Finance
Anders – Marketing Strategy and Sales
Meha – Technology, Infrastructure
Minimum Wage for Interns who we plan to recruit from Agriculture universities.
For further experience we will receive advise from an well experienced advisory board preferably Agriculture experts
The App
Revenue
Our revenue will come from sales of stalls.
Farmers can rent stalls from us:
£20 – small
£40 – medium
£60 – large
The app can be downloaded at no charge
The Route to Market Value Chain
We are a supplimentarty distribution service. We are using accessible technology to make the current distribution service more efficient. We sit between the Farm and the customer there is no possibility for vertical integration. Consumers will be able to login to our app and find pop up markets near them in whatever industry chose to make one. FARMA is a group of 500 industry small companies. We will focus on email marketing, postal marketing, local newspaper marketing and television marketing (focus on country networks). We will have twitter, facebook, linkedin, pintrest, tumblr and instagram accounts. We will keep our customers updated as to events in their local area to do with us and the industry through our social media, news streams and application. We will have a free subscription to our application and have a single fee for the farmers (exhibitionists) to set up of 50 quid. Furthermore, we will be cold calling and visiting potential company owners in order to collect a secure customer base. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Where does your venture sit in the industry structure (value chain/network)
How will your product/service reach the end customer/user
Who do you plan to partner with, if applicable
What marketing and sales methods will you use, concretely, to build your customer base
Financials
Here are a total of 300,000 farmers in the uk, of which 3,000 fruit and vegetable farmers are located in south england. the estimated market value of waste contributed by these 300 farmers amounts to approximately £750mn per year. We aim to target 500 farmers and 5,000 public users in the first year. We are looking at an estimated start up cost of £30,000/-, which includes logistics, marketing, operations, legal, admin, salaries and market space rentals. We estimate market revenue of £20,800/- and ad revenues from the app of £2,000/-. This will enable us to breakeven in slightly more than a year.
We estimated revenue through rental of market stalls at an average of 1 farmers market per week in the first year. We plan to expand our network so that we can hold multiple farmers markets per week
Summary
No. of Users: 500 Farmers; 5,000 Users
Revenue Forecast: £20,800 (Markets); £2,000 (Ads)
Cost: £30,000
(Logistics, Marketing, Operations and Equipment, Legal and Admin Fees, Salaries and Space Rental)
Breakeven: 1 - 1.5 years
Breakdown of Cost
Cost of 2nd-hand van & misc van costs: £2,500/- (includes tpt charges, taxes etc.)
Marketing: £3,000/-
Market Stalls Equipment: £1,000/- (includes tables, tents etc.)
Administration & Legal Fees: £5,000.00
Salaries: £10,000/-
Variable Costs
Space Rental for Markets: £1,000/- (rounding up based on £60/mth)
FARMA: £211/- (annual fee charged by FARMA)
Temporary Event Notice: £60 x 52wks = £3,120/- (charged by council per event)
Total Cost Approx = £26,000/- (we rounded up cost to £30,000/- to give us allowance for hidden costs)
Conclusion
- £800m fruits and vegetables go to waste every year
- Farmers can maximize the revenue potential on their produce through our markets
- Bringing fresher produce to customers at a lower price
Lessons Learnt
- Starting up a business is difficult!
- Important to have a good problem definition
- There are ups and downs
And finally… (required)
Please name three important things your team has learned from this three-week journey.
