V Fresh Agro Ltd Organized Retailing

PREPARED BY:

MANENDRA SHUKLA

Kaushalendra -“I am into this business to earn money, generate employment and ensure quality prices to farmers and quality product to buyers.”

INDUSTRY OVERVIEW The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. 12,00,000 crore ($270 billion)

Retail market for food and grocery with a worth of Rs. 7, 43,900 crore

Around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world.

According to Indian Brand Equity Foundation, retail trade accounts for 12 per cent of the country's GDP and is expected to approach 22 per cent by 2010.

BRIEF DESCRIPTION OF THE PROJECT

Retail outlet

Static Retail outlet Mobile Retail outlet

V-Fresh Agro Ltd. ventures into the business of Agro-retailing, both static as well as mobile, in the city and outskirts of Guwahati City.

This is the first venture of its own kind. While retail giants having only static retail outlets, our business emphasizes upon mobile retail outlets.

We targeted the high income group residing in the semi urban areas – for the mobile retail stores and for the static retail outlet we targeted people of every income group.

EXECUTIVE SUMMARY

PROJECT AREA

BHANGAGARH

WHY WE HAVE CHOOSEN GUWAHATI Guwahati- Gate way of North-Eastern India.

Guwahati is among the first 100 fastest growing city of the world and its 5th fastest growing among Indian cities.

Guwahat is a million plus city having average literacy rate of 78 percent.

Guwahati has 50th position in India, but a recent survey (2006) by magazine - Outlook (Money) has ranked Guwahati at 17th position for quality of life.

Increase in employment and disposable income both in urban and semi-urban areas.

OBJECTIVE

To earn money, generate employment and ensure quality prices to farmers and quality product to buyers and to improve the quality of life of the people of Guwahati.

MISSION

To provide best quality fresh fruits & vegetables to its target customers and to reduce the impact of middle man in marketing of agricultural products.

VISIONTo be a market leader in static and mobile retail sector in Guwahati region and to spread our business to whole India

Various agro based fruit and vegetables which includes –

Potato , Onion Chilly , Tomato Cabbage ,Cauliflower Ginger , Turmeric Carrot , Bitter guard Capsicum , Cucumber Ladies Finger , Banana Pineapple, Grapes, etc.

PRODUCTS

Item Price Item PricePotato Rs. 14/Kg Bottle gourd Rs.10/ Piece

Tomato Rs. 20/Kg Bitter gourd Rs.25/Kg

Chilli Rs. 25/Kg Ginger Rs500/day

Onion Rs.20/Kg Turmeric Rs.500/day

Cabbage Rs.25/Kg Carrot Rs.20/Kg

Banana Rs.20/12 no. Ladies finger Rs.20/Kg

Cucumber Rs.10/Kg Pineapple Rs.10/piece

Capsicum Rs.35/Kg Grapes Rs.40/Kg

PRICE LIST

MARKETING

MARKET ANALYSIS A comprehensive pre launch survey was carried out covering both – urban and semi-urban areas in and around Guwahati considering the point like- population, consumption habit, Competitors and growth potential of the city . These are our findings-

Guwahati has a population of more than 1 million

Regarding the consumption habit – 70 % of the people in the semi urban areas used to take food thrice in a day.

Consider the competitors point of view- there are no competitors in this area as because this is the first of its kind in this area.

Guwahati is the 5th fastest growing city in India.

SWOT ANALYSIS

STRENGTHS:

•First venture of its own kind – No apparent competition•Dedicated workforce•Competitive price•Best Quality Fresh Fruits & Vegetables

WEAKNESSES:

•Lack of prior experience in this field•Difficulty in convincing people to buy from mobile refrigerated van.

OPPORTUNITIES:

•Huge growth prospect in this segment•Only player to come up with mobile retail refrigerated vans•No apparent competition from organized retail giants particularly in mobile retail segment•Yet unexplored market and latent demand of its target customers

THREATS:

•Threat of retail giants imitating the idea and entering the market•Occasional political disturbances in Assam region

TARGET GROUPFor the static retail outlet , we have targeted people of every income group with in the city.

For the mobile retail outlet we have targeted high income group in the semi –urban areas.

SEGMENTATION We have segmented the market based on economic potential and income of the people.

MARKETING PLAN

MARKETING MIX

PLACE PRICE

PRODUCT PROMOTION

PLACE The static outlet is located near the highway, thus creating easy access, and convenience for the customers in the city.

It will attract the attention of the people as it is located in one of the densely populated areas in Guwahati.

To reach the people in the semi-urban areas we will use our mobile refrigerated vans.

PRODUCT We will sell products that are of high demand and have more shelf life

Quality will be maintained as we will be buying our products mostly from the contract farmers

We will try to provide fresh vegetables and fruits by using our refrigerated vans

PRICING STRATEGIES We will provide discount on bulk purchase both for static and movable retail outlets

Seasonal discounts will be provided

We will provide credit facilities to our loyal customers

We will try to provide the product at competitive prices compared to the Sabji Mandi’s by minimizing the impact of middle man in the marketing of the products

PROMOTIONAL ACTIVITIES

FOR THE STATIC RETAIL OUTLET:

Pre launch and post launch advertisement- in the local news papers, local TV Channels, and the Local Radio channels

Advertisement in hoarding at the prime location ( mentioning the product categories along with their comparative prices)

Distribution of pamphlets in the densely populated areas, in and around the Sabji Mandies etc

Tie up advertisement with the local restaurants

PROMOTIONAL ACTIVITIES

FOR THE MOBILE RETAIL OUTLETS:

Free distribution of sample products in the strategic locations in the semi urban areas to create awareness, and positive word of mouth

Post launch advertisement in the local news paper, TV channels and local radio channels.

Advertisement on the body of the refrigerated trucks ( mentioning about the product categories and comparative prices)

Advertisement in hoarding in the prime locations

Developing public relations.

WAREHOUSE

VILLAGES STATIC RETAIL OUTLET

DYNAMIC RETAIL OUTLET

CUSTOMERS

STRATEGIC

POINTS

STRATEGIC

POINTS

STRATEGIC

POINTS

CUSTOMERS

CUSTOMERS

CUSTOMERS

SUPPLY CHAINDIAGRAM

WAREHOUSE

30 km

radius

30 km radius

WAREHOUSE NETWORK

W

Movement of the Refrigerated truck across the city

INVENTORY MANAGEMENT

Fully Refrigerated Warehouse occupying 4000 sqft Area.Cost Effective Inventory Management.Controls the transport vehicles by using Global Positioning System(GPS).For Inventory Management we use Radio Frequency Data Communication(RFDC).

STATIC RETAIL OUTLET

Retail Outlet next to Warehouse occupying 1000 sq.ft. Area.

Fresh Vegetables in competitive price are available on a daily basis.

DYNAMIC RETAIL OUTLET

3 Refrigerated transport vehicles - 1 used for carrying goods from villages to Warehouse,2 used as Mobile Retail Outlet.Connected with GPS Satellite & GSM Operator.

OPERATING TECHNOLOGY

V Fresh is an ‘Equal Opportunity Employer’ which believes that Human Resources are the key to the success and growth of the organization.

The key focus of the HR philosophy at V Fresh is - to align Human Resources with the business of the organization.

V Fresh’s HR philosophy is rooted in encouraging employee empowerment, growth and development of individuals by realizing their potential, encouraging innovative ideas and fair distribution of rewards.

HR Policy

Work-force Diversity

V Fresh wishes to promote ethnic & religious diversity among its employees by recruiting new appointees from varying cultures while safeguarding the interest of Sons of the Soil, too.

Initially, we will be having employee strength of around 40, part-time and contract labourers included.

Potential employees will be attracted through advertisement in local and national dailies circulated in that region.

All candidates shortlisted for the interview will have to undergo a rigorous evaluation process to prove their suitability for jobs.

Depending upon the success of this venture, further addition in workforce may be considered. As a part of strategic planning, Human Resource Information System (HRIS) will be in place in order to have a reserve pool of candidates’ profile ready for future reference.

Multi-tasking: The Key Word

Our employees are required to possess multi-tasking skills particularly the employees working with the dynamic/ mobile retail outlets.

A flair for sales and knowledge of computers is a must for these people.

It will help us create a lean organization, attain better inventory management and cost reduction.

Training will be imparted to the employees on a regular basis as per the schedule finalized by the Human Resource Department.

Wage & Salary Administration

Designation No. of Employees

Salary (in Rs.) Total Expense (in Rs.)

Warehouse Keeper 2 2,500 5,000

Technician – 1 (Store Room)

1 7,000 7,000

Contract Labour 10 500 5,000

Accountant (Counter Billing)

2 4,000 8,000

Office Facilitator 2 1,500 3,000

Sales Executive 4 2,500 10,000

Floor Manager 1 10,000 10,000

Designation No. of Employees

Salary (in Rs.) Total Expense (in Rs.)

Assistant Floor Manager 1 12,000 12,000

Watchman (Outsourced Agency)

4 2,500 10,000

Driver 5 3,000 15,000

Technician -2 (Retail Sales)

3 3,000 9,000

Marketing (Head) 1 30,000 30,000

Finance (Head) 1 30,000 30,000

Operations (Head) 1 30,000 30,000

Human Resource (Head) 1 25,000 25,000

Wage & Salary Administration Cotnd.

Performance Appraisal

Seven criteria for assessment at V Fresh are:

Quality, Quantity, Timeliness, Cost Effectiveness, Need for Supervision, Interpersonal Impact and Training.

V Fresh will be using ‘360 degree’ Performance Appraisal Method for its employees.

Apart from compulsory statutory benefits, employees will be entitled to - paid vacations once a year, sick leave for 10 days a year, Severance Pay, Leave of Absence (on Training & Development grounds), etc.

Group Insurance Scheme

V Fresh will be having a tie-up with ‘ICICI – Lombard’ to extend group insurance facility to its employees.

Promotional Policy

At V Fresh, merit - not seniority, will be the determining factor for promoting an individual to any higher post.

We at V Fresh acknowledge the importance of having a free flow of communication across the length & breadth of the organization.

Media of Communication:

1. Employee Handbook;2. Financial Statements;3. Published Statements Covering Personnel Policies;4. Information Rack or Display Stands;5. Notice Boards.

Suggestion System: To enlist the Co-operation of subordinates in effecting improvements and in eliminating waste, and to provide an avenue for a working communication with the management.

Effective and timely ‘Grievance Redressal’ is an important step towards ensuring a healthy Employer – Employee relationship in any organization.

At V Fresh , Human Resource (Head) will be the Chief Grievance Redressal Officer in charge of resolving any dispute or grievance, which may arise in course of its operation.

We at V Fresh encourage team endeavour than stand alone assignments.

Touching Human Emotions

At V Fresh, employees deemed more than a mere ‘resource’.

Management at V Fresh will feel proud to lay a hand on the inner souls of its employees by imbibing a culture of overall personal development among them.

We’ve Dedicated One of Our Ear to Listen to Your Feedback

As a learning organization we feel that customers’ feedback, both internal & external, plays a very important role in strengthening the foundation of a company.

V Fresh will be offering a 24*7 toll-free automated helpline service to register any sort of complaint associated with our business e.g., regarding deficiency in service.

Suggestions and valuable feedbacks can also be mailed to our corporate office and Human Resource (Head) will be extremely happy to satisfy the queries raised by the customers.

As a responsible and value creating organization we will be happy to comply with all the requisite legal obligations for our operation.

Exit Interview

Though our personnel policy mandates retaining our precious human assets but in case of an unavoidable separation conducting an exit interview to look into the issues involved will be a norm as well as practice for our organization.

If You Have The Fire Within You……….

…………We Have Challenges to Offer