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A
BUSINESS PLAN
ON
ONLINE SALE OF VEGETABLES AND
FRUITS
Subject: Entrepreneurial Strategies
Professor: Mr. Bibhas Basumatary
Submitted by: Sindoor Naik
Batch: MBA 3
Date of Submission: 29th March 2014
UNIVERSAL BUSINESS SCHOOL
Karjat, Mumbai

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Marketing Plan
Product Launch: Set up an Online E-Store for Fresh Fruits and Vegetables in Tier 1 and Tier 2
cities.
Brand:
Executive Summary
As per a survey done by Nielsen, E-commerce is growing at 11% a year, but sales for
consumer packaged goods online — food, groceries, everyday items — are more like high
double digits, almost 20%. In India especially in Tier 1 and Tier 2 cities we find that most
working people have no time to travel to far off vegetable markets to buy fresh vegetables and
fruits. Although many supermarkets do provide fresh vegetables and fruits, people go there to
do one time shopping for all necessary products and it’s only at that time they buy vegetables.
As vegetables and fruits are perishable there are times when people find that the vegetables
which were brought last week are rotten now and again they will have to run to a nearby super
market only to buy vegetables for cooking food urgently.
E-Sabzi is the best solution to this problem. With E-Sabzi, one gets: Farm fresh
vegetables and fruits, segregated, washed and freshly packed in food grade packing material for
free home delivery, economical rates, pre-booking via the website as well as phone and
environment friendly Supply Chain (E-bikes). E-Sabzi is different from other conventional
vendors as we provide fresh vegetables & fruit and do not keep any stock for next day,
vegetables and fruits are washed and processed to remove maximum effect of pesticides and
packed in food grade plastic only. Fresh vegetables and fruits will be directly bought from the
farmers thus saving the costs of the middlemen. To keep the cost competitive and make it
environment friendly, we will provide all deliveries on E-bikes. This also saves directly and
indirectly the carbon emission in environment. We will also collect the plastic bags used for
packing and send it for recycling.
The Website will have a user friendly GUI so that even people who are not familiar with
ordering online can do it with ease. Also and android and iOS app will be launched. The
customer will have to register with E- Sabzi to order online or order on call. Payment of money
can be done by Card, Net Banking – secure payment and also there will be an option for cash on
delivery (COD).

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Business Concept
One stop online store to buy fresh vegetables and fruits at reasonable rates with ease.
Situational Analysis
Market Size and Future Projections: India's diverse climate ensures availability of all varieties
of fresh fruits & vegetables. It ranks second in fruits and vegetables production in the world,
after China. As per National Horticulture Database 2012 published by National Horticulture
Board, during 2011-12 India produced 76.424 million metric tonnes of fruits and 156.33 million
metric tonne of vegetables. The area under cultivation of fruits stood at 6.704 million hectares
while vegetables were cultivated at 8.99 million hectares.
There has been concern in the recent years regarding the efficiency of marketing of fruits and
vegetables in India. It is believed that poor efficiency in the marketing channels and poor
marketing infrastructure is leading not only to high and fluctuating consumer prices, but also to
only a small proportion of the consumer rupee reaching the farmers.
According to a report published by Research and Markets, the e-commerce industry in India is
expected to grow at a CAGR of 40%, from US $ 5.9 billion in 2010 to US $ 34.2 billion in 2015.
Many e-commerce start-ups are tapping into this window of opportunity. They are procuring
vegetables directly from the farmers and delivering them right to your doorsteps.
Vegetables are one of the most mismanaged resources in India. About 30 percent of fruit and
vegetable production goes to waste in India, according to a recent report. In fact, India’s
wastage of vegetables and fruits is said to be more than their consumption in some countries.
Combine this with the urban professional’s lack of time to pick up fresh vegetable & fruit
supplies for the household and one can see a clear need waiting to be served through
technology-based intervention in most of the Tier1 and Tier2 cities across India.

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Industrial Competitive Analysis by using PORTER’S FIVE
FORCES

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Threat of new entrants (High): As ecommerce is a growing industry and has a very high
potential in the Vegetable and Fruit sector there is a high probability of Retail Giants like Big
Bazaar, Reliance Fresh, More, Vishal Mart etc. to enter into this online shopping sector. They
have their vendors, logistics and storage already co-ordinated for their retail store operations.
So all they will be doing is to design a website and display all the vegetables and fruits for sale
which can be transported to the consumer’s doorstep.
Competition within the Industry (Moderate): Websites already operating in this segment like
Fresh n Daily (Mumbai), Veggibazaar.com (Chennai), Vegwala (Bangalore) and many more. But
most of them operate in a particular state and are very few compared to the competition in
other ecommerce business which covers the whole of India. So the competition is moderate at
the local level.
Threat of substitutes (Low): An alternate way to buy vegetables and fruits are the vegetable
markets and hawkers. But as online websites for fresh vegetables and fruits mainly targets
office goers, businessmen and people who hardly get time from their work to go out and buy
vegetables on a day to day basis, vegetable markets and hawkers do not pose much threat to
this new category of customers who buy most products online.
Bargaining power of buyers (Low): In almost all online shopping websites the prices are fixed.
There may be some discount after buying products worth some amount or discounts during
special occasions. As vegetables and fruits will be sold fresh and on time the customer will be
more than happy to pay the price specified already on the website in case of Cash on delivery.
Also in case of payment made online there is no question of paying less than the price for the
vegetable or fruit mentioned on the website. The only problem here will be the consumer
comparing prices on different websites which sell vegetables and buying from the one which
quotes the least price.
Bargaining power of suppliers (High): The farmers being the main suppliers of vegetables have
many options. They can sell their produce to middlemen, merchants, retailers and online
websites which sell fruits and vegetables to consumers. Here main factors are the price offered
to the farmer, advance payments for future orders and good relationship. The farmers are not
bound by any agreement to sell their produce to one specific merchant or retailer. So a well-
planned vendor management scheme needs to be designed to tackle this problem.

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SWOT analysis
Strengths
Home delivery.
Ease of Shopping.
Reasonable price.
Guranteed Quality.
Weakness
Vendor Management.
Logistics.
Time Constraint.
Perishable goods.
Opportunities
Large market size.
Demand in Tier 2 cities.
eCommerce trend
catching up in Tier 2
cties.
Threats
Retail giants.
Local merchants.
Home farming.

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Segmentation Targeting and Positioning
Segmentation:
Home Makers: A homemaker is a person whose main job is to take care of his or her own
family home and children. Traditionally, the job of homemaker is done by women and the job
of provider is done by men, but both men and women can be providers and homemakers. One
of the important part of their daily or weekly schedule is to go to the market and buy essentials
commodities to prepare food at home. A higher percentage of them are not tech savvy and do
not use the internet. So there is less probability of buying vegetables and fruits online. Here the
income level does not affect the buying behaviour as going out for shopping is a part of their
day to day life, whether poor or middleclass.
Homemakers WorkingProfessionals Businessmen
BuyingHabits Lessfrequent MoreFrequent Frequent
Age 25-50 22-45 30-55
IncomeLevel Mid/High Mid/High High
Onlinebuying Low High Medium
SegmentSize 15% 50% 35%
Attractiveness Low High High

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Working Professionals: They are people who run to office in the morning and get home late
most of the time. Time is important factor in their lives. Most are young, energetic and career
oriented. In Tier 2 and Tier 1 cities they live independently. Unmarried working professionals do
not find any time to go to markets select, bargain and buy vegetables. For them time is money
and hence most of them either have servants who do the buying or many of them now buy
vegetables and fruits online. Even in case of married couples where both husband and wife
reach home late after work find no time and energy to go to market to pick essential
commodities to cook food. So this segment is a high potential market segment for “E-Sabzi”.
Businessmen: In cities businessmen are always caught up with some work and never find time
to go to the vegetable market. Most of the shopping is done by servants who mostly visit retail
outlets and marts to shop for vegetables and fruits. Here most of the housewives are also well
educated and tech savvy. Online shopping for essential commodities is becoming a new trend
among them. So they shop for essential commodities online and spend the evenings shopping
in malls. Hence even this segment is gaining importance mainly when it comes to Tier 1 and Tier
2 cities.
Targeting:
From the segmentation table, “E-Sabzi” will be targeting working professionals and
businessmen segment. As both these segments have time constraints, want fresh and good
quality vegetables at reasonable prices and are familiar with internet technology they will find
buying them online very easy and suitable to cater to their needs. Thus “E-Sabzi” can exploit
these needs to the maximum extent in Tier 1 and Tier 2 cities.

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Positioning:
E-Sabzi is positioned as the provider of fresh vegetables and fruits at the most reasonable prize
and in the shortest time compared to other online vegetable and fruit sellers.
Problems solved by this concept
 Time wastage in travelling long distances to buy vegetables and fruits – “E Sabzi” does
delivery at doorstep and in lowest possible time duration. So time saved.
 Concern about quality and cleanliness of the vegetables and fruits brought from
hawkers and local roadside markets – “E Sabzi” provides vegetables and fruits which are
quality checked and even pre-washed before packing.
 Search for any specific vegetable or fruit in the markets – “E Sabzi” solves this problem
as any vegetable or fruit is a click away from the customer.
 Chance of getting cheated by any vendor or hawker – At “E Sabzi” all items are
reasonably priced online so no chance of getting cheated.

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Marketing Objective
 Capture the Tier 1 city market share up to 25% and Tier 2 city market share by 30%.
 Provide ROI of 40% by year 3.
 Make E-Sabzi a household brand.
 Expand to other major cities which have a potential to transform into Tier 2 cities in the
future.
Mission
“Provide customers with best quality vegetables and fruits at reasonable prices in quick time”
Marketing Mix Strategy
Product: After proper research on the vendors and farmers in a region (Tier 1 and Tier 2 city
surrounding villages) we shall meet them and discuss about deals regarding continuous supply
of fresh and good quality vegetables. Also we shall provide farmers with better prices
compared to middlemen. For villages within 100km from the city we shall pick the vegetables
on a daily basis directly from the farms so that the farmers will not have to worry about
transporting their produce to the city. To cater to the needs of the customer in case of high
demand for a specific vegetable or fruit we shall also tie-up with local vendors and buy
vegetables and fruits at bulk.
Once we receive the vegetables and fruit, all of them will go through a quality check process
and discard the ones which do not meet the quality specifications. Also we shall rank the
farmers and vendors depending on the quality of vegetables and fruits they supply. If some
farmer or vendors are ranked low on quality for a long period they shall be warned and if still
there is no improvement in quality we shall discontinue to buy from them.
The website will be a user friendly GUI. We will also have Android and iOS apps for E- Sabzi. The
user can select a variety of fruits and vegetables which will be divided widely as seasonal and
year-around. Under each main category there will be sub category depending on variety of
fruit or vegetable. If the customer is unable to find a specific fruit or vegetable he can call our

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support team and place an order online. This order will take at the max +1 day than the regular
delivery time if the vegetable or fruit was marked in stock on the website.

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Packaging will be done using recycled paper bags and only in some specific cases where
moisture has to be maintained, bio degradable plastic shall be used. Also depending on the
quantity ordered packaging will be done in such a manner that the contents within are not
harmed during transport.
The product concept:

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Core Benefit: Online selling of fresh vegetables and fruits
Actual Product: Home delivery of fruits and vegetables.
Expected Product: Customers want good quality vegetables and fruits which are reasonably
priced being transported to their doorsteps in quick time.
Augmented Product: Find fruits or vegetables which are not listed or out of stock on the
website and provide delivery as soon as possible. Also provide discounts for purchase above
Rs2500 and provide loyalty points which can be redeemed in future purchases for more
discounts.
Potential Product: Calls, mails and messages on mobile whenever:
There is a sale going on.
New variety of fruits and vegetables launched.
Seasonal vegetables arrive.
Category of Vegetables and Fruits available on “E- Sabzi”

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Price: The price of vegetables and fruits sold online are slightly higher priced than the ones
sold by hawkers and in vegetable markets. But as we are targeting upper middle class and well
to do customers who would not mind spending a bit more to have fresh, good quality
vegetables being transported to their residence we will not compromise on price when
compared to local markets. E – Sabzi will sell vegetables and fruits at a reasonable price when
compared to other competitors in the online selling segment. The ability to sell at a lower price
than competitors will be achieved due to better management of supply chain and employing
lean using six-sigma techniques to reduce wastage. Also importance will be given to
maintaining good relationship with local farmers who will be given tips on farming by experts at
E-Sabzi.

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Place: The place will be the online website accessible on laptops, desktops, tabs and smart
phones. All the vegetables and fruits ordered online will be transported directly on E-Bikes
owned by E-Sabzi. In some places third party logistics will be used for transporting the ordered
items if they provide a cheaper means of transport than E-Bikes. In case of places which are
very near to the E-Sabzi storage facility even E-bicycles will be used to transport the ordered
items.
Promotion: Promoting E-Sabzi will include
Ads on TV and Radio channels.
Hoardings in areas where there are many traffic signals.
Emails and sms to customers who have visited the website at least once (may or may
not have bought anything).
Distributing Pamphlets pinned to the daily newspaper.
Calls to potential customers and giving then information about the website.
Hierarchy

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As E- Sabzi will be a startup company and mainly website maintenance and supply chain co-
ordination to be given high importance, we will employ around 100 people in the beginning
who will be given specific job responsibilities depending on their area of expertise.
Managing Director: Will be the supreme head who takes the final decision. He has full control
over the proceedings. He takes decisions on present scenarios and future expansion projects.
General Manager: Overlooks the working of Website Manager, SC Manager, Vendor Manager
and Logistics Manager.
CFO (Chief Financial officer): Mainly responsible for overlooking the finances of the company.
Website Manager: Manages website development and maintenance.
Supply Chain Manager: Co-ordinates between suppliers, inventory, packaging and logistics
department and takes decisions to facilitate smooth operations throughout the supply chain.
Vendor Manager: Manages all the vendors and farmers who supply vegetables and fruits.
Logistics Manager: Manages the cost effective, safe and in time transport of items into and out
of the facility.
Business Model Canvas
(Created from bmfiddle.com)

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Customer Segments: The main customer segment which will be targeted is the office goers in
Tier 2 and Tier 3 cities who find no time to go to markets and buy commodities essential for
daily use. Also the businessmen who spend most of the time travelling or are always busy with
work are also potential customers.
Value Proposition: The advantage of online shopping for vegetables and fruits is that the
customer can save time and cost of fuel in travelling to the market place, as the items ordered
are delivered at their door step. Also the customer will not have to worry about the quality as E-
Sabzi guarantees optimum quality. Customer will enjoy the experience of shopping online
sitting at home.
Channels: Channels include all the channels those are used to reach customer for purpose of selling.
In this business, the main touch point would be the website itself along with the social media pages
and the distribution channel i.e. the logistics partner.
Customer Relationships: This is the most essential requirement for the business to sustain and
expand. Providing Membership points make customers come back and buy more on this website as
they can redeem their loyalty points and avail discounts.
Revenue Streams: Revenue is mainly from sale of fruits and vegetables online. Cash can be paid on
delivery and also options to pay online include debit/credit card payments, net banking. Also the
user has an option to deposit money in a secure account with E-Sabzi. Whenever the customer
makes a purchase he can make quick payment using this account.
Key Resources: Key resources are the ones who are responsible for the smooth running of all the
operations pertaining to this business. These include the warehouse security and maintenance,
marketing manager, distribution & vendor manager and the logistics partner.
Key Activities: Key activities will include the sale of fresh and high quality vegetables to the
customers, customized packaging solutions for customers and regular maintenance of the website
which is vital in the smooth running of the business. Also home delivery of the order in the shortest
time possible is a key activity of the business.
Key Partners: Farmers are the main and most reliable suppliers of fruits and vegetables. In case
of inability to meet the demand or in case any fruit or vegetable not available in the warehouse;
it can be quickly replenished by contacting local vendors and wholesale markets.
Cost Structure: Costs include all the costs incurred in hosting the website, salaries of the
employees. It also includes inventory management costs like- rent for warehouse and payment to

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the third party logistics. A large percentage of the cost is also in buying the vegetables and fruits
from farmers, vendors and markets which may also include advance payments in some cases.
Financial Analysis
Projected Profit
and Loss account YEAR 1 YEAR 2 YEAR 3
Sales 3000000 3450000 4485000
Sales Growth( % ) 15% 30%
Revenue from other sources 100000 150000 250000
Website maintenance -15000 -15000 -15000
Salaries of employees -1100000 -1200000 -1300000
Wages to workers -200000 -250000 -300000
Warehouse Rent -100000 -150000 -175000
Miscellaneous expenses -25000 -25000 -25000
Advertising cost -100000 -120000 -140000
Gross Profit 1560000 1840000 2780000
Less: Depreciation -25000 -30000 -40000
PBT 1535000 1810000 2740000
Tax( 30% ) 460500 543000 822000
PAT 1074500 1267000 1918000

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in-india/1/197141.html
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 http://lifemeetsdigital.blogspot.in/2012/02/basic-needs-of-human-being-as-we-
know.html
 http://www.bae.ncsu.edu/programs/extension/publicat/postharv/ag-414-8/
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