2012

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Presented by M. Faiyaz Naveed, BBAParumita Saha, CSEMst. Yasmin Ara, CSE

DIU-Mavericks

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OutlineYasmin Idea &

ConceptMoney

Transaction

Uniqueness &

Innovation

Parumita

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Goals & Objective

s

FaiyazEconomic

impactCost

Analysis

Sustainability

CSRSWOTPorter Five

Forces

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Conventional way for marketing an agro product

MARKETING CHANNEL

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Development Introduction Growth Maturity Decline

British Era

Pakistan Era

Bangladesh Era

Farmer RuralIntermediary

UrbanIntermediary

Retailer Consumer

The price is caused by the middlemen

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If there is no middlemen…..

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* Virtual Haat (Village Market) with easy Banking (VHeB) is a service providing engine which will eliminate the prolonged intermediary barrier from a producer of agricultural products to the ultimate customer of the product

Business Idea

* Both parties must have a registered bank account to get this service

VISION

VHeB’s vision 1. To make a safe agro food

consumption platform to create a healthy nation within reasonable price

2. To provide producers just price

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VHEB STRUCTURE

Database

Virtual Agents

Sub Agents

Field Agent

111Field

Agent 2

Field Agent

10……….

I n f o r m a t i o n C h a n n el

VHeB Web Portal

Offline Customer

Online Customer

COLLECTION & DISTRIBUTION CHANNEL

Product is loaded & quality is checked by field agent

Quality checked by DAM

officials at district

levelSub agent

office

Consumer

Consumer

Ware house in Dhaka. Quality is assured

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MONEY TRANSACTION

-Customer orders for a specific good is identified by his unique bank account information

-Virtual Agent is the bank representative who cut 50% of the total cost of the product from the customer’s bank account

-At the beginning 50% payment is deposited to farmers/producers registered bank account

-When goods are handed over to customer, the rest 50% cost is debited from consumers account and farmers account is again deposited by 50%

Continued….

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-An SMS containing buyer’s secret code, account number, buyer/seller mobile number and an option whether the amount will be debited from the buyer’s registered bank account

--After each successful transaction, a confirmation message is given both to the farmers and to the customers

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Bank is making transaction

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UNIQUENESS & INNOVATION

• No virtual marketing system dedicated to agro products was evolved previously

• Farmer gets access in the market without 3PL

• Farmer gets hassle free from bearing holding and transportation cost

• Bank acts as a liaison between the buyer and seller

• Money transaction happens through the bank

• Space shifting through virtual marketing system

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ECONOMIC IMPACT

Current Market Situation• Agricultural marketing circle is long and archaic• Third party logistics (3PL) make a fortune out of

the inability of the farmers• Consumer of these products to purchase the

goods at unusual high prices.• Inconvenient channel and the ill price makes

farmers feed their cattle these agro products even in scarcity

• Middleman factor is largely responsible for gross mismatch

• The fees collected on markets often go toward other purposes than market development and service provision for farmers and traders, serving merely to increase transaction costs for participation

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Initiatives taken by the governments

• DAM has been automating data entry at the district level where market information of agricultural products is collected from local markets.

• Introduced of "Agricultural Support Service System" in accordance with the provisions of New Agricultural Extension Policy (NAEP).

• Structural changes were also made in food supply and management system.

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Impact of VHeB

• Provide physical and technological infrastructure thru the transportation facilities and carrying of output facilities with the interface facility

• Through VHeB agent and DAM’s database of actual and potential customer a strong structure of local market could be evolved

• the govt. has been encouraging to simplify the process persuading for the break of the chain through different legal provisions

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SUSTAINABILITY

SWOT ANALYSIS

No traditional intermediaries or 3PLs Farmers get just price Consumers pay reasonable price Quality control is ensured through triple

inspection before reaching at the hands of the consumers

The marginal farmers will be profiled and will have bank accounts for transaction

DAM will be acting as a regulatory body A profitable business as well as

maintaining CSR

Strengths

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Farmers might get less interested due to communication for a transaction

Transactions are done in ‘cloud’ Costs of really varied agents Not being able to procure 100% price

may create a negative effect on them Depending on only northern and

southern part of the country for good procurement

Excessive transportation cost by the bank

Startup capital is only obtainable from the bank resources

Weaknesses

SWOT Analysis

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The increased expected profit which could be obtained by the farmers would serve as a motivational factor for the farmers to communicate for the transaction.

Cloud transaction is accurate and almost free from corruption.

Employment opportunities are ensured for a large number of people.

The farmers are assured to get the just price having the guarantee of the bank that means they don’t have the risk of default.

Products could be obtained with the least price from the producers from the northern and southern regions of the country.

Farmers would not have to worry about convenes difficulties and consumers may get the services at their doorstep.

Flow of capital would not be hampered.

Ways of overcoming Weaknesses

SWOT Analysis

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Other metropolitan areas could be targeted next

Gradual increase in the client base Having first mover advantage Price level stability causing interest

rate stability for financial markets The product line could be extended to

other agro products like- forestry, horticulture etc.

Tax incentives could be get due to the nature of the initiative

Part time sub agency may create better communication channel and employment

Opportunities

SWOT Analysis

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Lack of legal enforcement may cause difficulties

Government’s support may be insufficient

Some case for rot or wastage can occur

Any co-operative system can make a entry. E.g.- Milk Vita

Political musclemen may cause forceful payment of toll

Integrated networking among farmers may cause price hike

Government involvement may cause corruption in future

Threats

SWOT Analysis

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Lack of legal enforcement may cause difficulties

Government’s support may be insufficient

Some case for rot or wastage can occur

Any co-operative system can make a entry. E.g.- Milk Vita

Political musclemen may cause forceful payment of toll

Integrated networking among farmers may cause price hike

Government involvement may cause corruption in future

Ways of overcoming Threats

SWOT Analysis

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Forces Threats Rank

Threat of Substitutes LowThreat of New Entrants ModerateIntensity of Competitive

Rivalry Low

Bargaining Power of Customers

Low

Bargaining Power of Suppliers

Low

Porter Five Forces

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Cost Analysis

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