CHEPTER 1.

EXECUTIVE SUMMARY

More than a decade ago, when the farmers’ market concept took life, few
expected that people would welcome a return to a simple trading transaction between
food producer and consumer. Yet, a world of retail consolidation has seen new and
thriving demand for distinctive food that is locally produced and regionally sold. Some
129 farmers’ markets are now in operation in Ireland and a growing number of farm
shops and the increasing popularity of box schemes are further evidence of opportunities
for direct selling as a route to market.

Farmers’ markets afford local producers the unique opportunity of selling directly
to the consumer. A further bonus to such a transaction is the market research opportunity
which meeting the public affords. In return, consumers are looking for direct access to
farmers and producers. Consumer interest in reducing carbon footprints and food miles
also explains why farmers’ markets and farm shops are growing in popularity.

Farmers’ markets and other forms of direct selling are here for the long haul but,
as with any commercial enterprise; their individual success rests on how well they deliver
to consumers in their area. This guide has been designed to assist food producers and
farmers who are inspired by these opportunities but who are, as yet, unsure as to how to
get involved. The guide gives an overview of the sector, analyses individual segments
and provides practical advice for producers on how to develop an idea, test it in the
marketplace and go about building a customer base and a business.

In recent years, we have seen an explosion in the number of farmers’ markets and
other direct local-produce supply schemes in Ireland. These have been driven, to a large
degree, by a yearning for provenance and authenticity in the food chain. The idea of
being able to source food locally and directly from the producer is, for many, a refreshing
and satisfying way to shop, as well as a way of directly supporting the local economy and
supply base.

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 It is indisputable that consumers are concerned with issues such as pesticide
usage, animal husbandry, animal welfare, biodiversity, traceability, carbon footprints and
product origin. These heightened concerns have also lead to an enhanced awareness of,
and an increased interest in, alternative methods of sourcing food. As well as being the
source of a wide variety of foodstuffs, farmers’ markets are also valued for their social
dimension, giving people in a locality a chance to meet and interact with each other.
Many find their informal atmosphere more community orientated than the more
structured environment of high street retailing.

From the perspective of the small food producer, farmers’ markets offer a number
of advantages as a route to market. The supply chain is shorter and there is a more
informal approach to marketing. Transport requirements are generally far simpler than
the more conventional routes to market and, in many cases, there are no intermediaries
involved. This shorter supply chain also allows the producer to remain in direct control of
the product. As the producer has, for the most part, direct links to the customer, instant
feedback is available. This assists in developing market research and in allowing the food
producer to make informed decisions on future product development and range
enhancement.

Basic Details:

We are preparing the B-Plan regarding the

services called FARM FRESH. This is the unique
concept. We are providing the vegetables & fruits directly
to customers. This service which we are providing is on
the continuous basis. Today various malls, shops, others
are provide this service. Here, distribution channel like
wholesalers, retailers, and other party plays role.

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 FARM FRESH this concept focuses on the direct selling of fruits & vegetables to
customers. Today prices of these soaring very fast due to intermediaries and increase in
petrol and diesel prices.

There is the marketing channel starts from farm directly to the Home to customers
on delivery basis. It is also helpful to traders of agricultural products. This concept works
on the cost minimization for farmers as well as households.

We provide a variety of seasonal fruits and vegetables from our farm and create
several home deliveries and Our Regular Service is our most popular home delivery for
those who have some time to cook and Mostly Fruit Service is great for those of you who
are always on the run. The produce in each service changes weekly and varies seasonally,
but we work with neighboring organic farms to ensure a good variety of produce year
round.

The day that you receive delivery (within the range of 2km.) and the frequency of
your delivery can be weekly, every other week, every third week or every 4th week
delivery. Payment is done through cash only.

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Home Delivery Service

• Every delivery comes with 100% certified organic produce, farm news, and recipes.
• Receive a free delivery for each friend you refer.
• No commitment policy, you may cancel at any time.
• Receive deliveries weekly, every other week, or on an every 3rd or 4th week frequency.

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Demonstration of services:
In the initial stage of start up we will make contract with the farmer for vegetables and
fruits. We will develop cold storage on the rental premises at specified location in
Ahmedabad. Our objective is to minimize the cost of purchase of customers and
simultaneously want to provide quality vegetables and fruits. We believe that existing
distribution channel is causing higher prices vegetable and fruits. So we have design a
unique distribution system which will mitigate unnecessary intermediary from the
existing system.

Farmers

Vendor 1 Vendor 2 Vendor 3

Customer 1 Customer 2 Customer 3

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Our Distribution Model:

Farmer 2 Farmer 3
Farmer 1

Farm Fresh

Customer 2
Customer 1 Customer 3

Target Market:
On the initial stage we want to introduce our model in the local market of Gujarat
where we have selected Ahmedabad as our target location.

Competitors:
Existing organize players in the business reliance fresh, food bazaar, More.
Reliance fresh as market share of 36%. Food bazaar has market share of 25%. More has
market share of 9%. Remaining pie occupied by unorganized players.

Marketing Strategy:

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 Our primary objective will to switch customers of the existing players towards use
of our vegetables and fruits. We would market our enterprise on quality and cost basis.
We would like to provide quality vegetables and fruits at cheaper rate than the current
player are providing. We would attract those customers who are cost conscious.

Long term goals:

To become a loyal and trustful enter price to all the parties we are engaged with
reasonable profit in the long term.

Expected Milestones:
 Targeting average 300 footprints per day in our stores.
 Generating 10500 rs. Revenue per day and per months Rs.3, 15, 000 in one shop.
And our Net profit Margin are 1, 45, 000 Rs.

• In business, if our business will grow in growth stage than our plan will set up to
new branches in all area of Ahmedabad.
• We will give delivery within the range of 2 km to 5 km and more facilities to
customers.

No. of Customers: 300 per day

Employees in our one Branch: 4 sales Persons, 1 Cashier, 1 watch men.
Location: Ahmedabad.

CHAPTER 2. COMPANY DESCRIPTION

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1.) Company’s Proposed Name:- FARM FRESH

2.) Company’s Proposed Address :- 401 wing/A ,sapath-4 complex ,

Near wild angel theatre,

S.G.Highway,
Ahmedabad.
3.) Our Enterprise will operate from more than one location in Ahmedabad. Our
corporate office will be situated at sapath-4 complex S.G.Highway where as our
store will be located at the following Areas.

 C.G.road

 Satellite

 Prahlad nagar

 Ashram road

 Maninagar

 Navrangpura

4.) The company will make contracts with farmers to provide vegetables and fruits
directly so it will have to follow contract act. In addition to this company will
have to comply with all the legal procedures decided by local authorities.

5.) We want to enter in the Business of retailing of vegetables and fruits directly from
farm to the home model. Our business model is based on retailing of all the
agricultural products so in future we can also include retailing of farm grown
flowers in our business opportunities.

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 6.) Our company will have good opportunities as there are very few players operating
in the retailing of vegetables and flowers directly from farm. The existing players
do not operate entirely in this space.

7.) Challenges:-

 Company will face tough competition from the existing players in the initial
period.

 Company is operating on the basis of contract done between farmers and

company if farmers will fail to comply with their obligation of providing
vegetables and Fruits Company will face difficulties.

 As company is a low cost provider of vegetables and fruits maintaining and

reducing cost will also a challenge for the company.

FINANCIAL FRAMEWORK

ESTIMATION OF
REVENUE

ESTIMATION OF
COSTS

ESTIMATION OF
PROFIT
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 1. Estimation of Revenues:

Estimation of revenue is very essential. As we are going to start a new business

we will rely on certain assumptions. We expect average 300 footprints at our
stores and based on the footprints of 300 we expect that they will purchase
minimum 1 kg vegetables or fruit at an average price of Rs. 35 and our daily
revenue will be Rs. 10500.

1kg*35Rs*300= 10500Rs

10500*30= 315000Rs

So monthly cash flow at one store we are expecting is Rs 315000.

Estimation of expense:

In our business model we will demolish two such costs which were there in the
existing model and affecting price in the adverse way.

 Agent cost (6%)

 Cost of vendors (mark up of 50%)

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 (Source: sardar patel market Ahmedabad)

Estimation of Costs incurred in our business will be as follows.

Name Rs
Office rent 20000 Rs. p.m
Cold s Storage rent(1500 square foot) 70000 Rs. p.m
Establishment cost of cold storage( per shop) 125000 Rs.
Initial marketing expenses 25000 Rs.
Working capital requirement 10000 Rs. per store

These expenses have been considered as capital expenditure.

Other Expenses:
Administration cost:-
We would like to deploy one cashier 4 assistant subordinates and a watchman at each
store so administration cost on average basis would be
1 cashier* 7000= 7000rs
4 assistant subordinates* 5000 =20000rs
In addition to this electricity bill of monthly around 50000rs (cold storage+electricity).
Other expenses of Rs. 15000.
Name Rs
Staff salary 30000/p.m
Electricity bill(4.90 per unit) 50000/p.m
Other expenses 15000/p.m

Break even calculation:

To reach at break even we will require covering all the initial capital expenditure. For the
convenience we have assumed one year rental of both the office and shop as a capital
expenditure. Though we do not require much working capital as the business will carried
out on the cash basis. We have kept advance provision of working capital of Rs 10000
per store.
To reach at breakeven point we require calculating monthly net cash inflow of each store.
Monthly revenue of a store = Rs 315000
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(Less)
Administration cost = Rs 95000
_____________
Rs 220000
So, Expected Cash Flow from our all the 6 store will be 6*220000=1320000 Rs.
So, Break Even = Initial capital cost/net cash inflow
= 6080000/1320000
= 4.60 months so approx 5 months.

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CHATER.3 TARGET MARKETS

1. Individual consumers. This group of people buys vegetables & fruits because
they have a more sophisticated pallette. Every person has need of this it’s basic
needs. It is a good idea to sell your crops directly to customers. This is called
direct or retail marketing. Although you can make more money and get paid faster
this way, you will need more time to sell. It is a good way to sell your crops if you
are a good planner, have time, and enjoy meeting and talking to people.

The profile for FARM FRESH of customer services for selling vegetables & fruits
consists of the following geographic, demographic, and behavior factors. We have two
target segment customers, individual consumers and restaurants.

Individuals:

Geographic:

• The immediate target is the city of Ahmedabad with the population of approx. 50
lacks
• Semi- urban area.
• There are 6 locations of our business. [Satellite, C.G.Road, Navrangpura,
Prahalladnagar, Aashramroad , Maningar ]
• The office of the operation management is at S.GHighway in Shapath Complex

Demographic:

• Singles and families.

• Age of 20-70 years employees.
• Have attended college or graduate school.
• Have a household income of more than 10000/-.
• Tend to patronize higher-quality restaurants.

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Behavior Factors

• Are willing to pay a premium for higher quality, & services.

• There is value attributed to the more attractive presentation regarding the services.

2. Restaurants.

We would like to thank our partner companies that believe in the value of high
quality, fresh organic produce. These restaurants support a clean environment and buy the
safest food for their customers. The restaurants are a year round customer which is
helpful to balance the seasonal demand of the consumers. Another advantage of having
restaurants as a customer is that even though they get a better price, MG has a long-term
contract with them which helps in terms of stability.

Restaurants (and their customers):

Geographic:

• Ahmedabad is the targeted population.

• For all type of restaurants.

Demographic:

• Male and female.

• Single and families.
• Household people.
• Tend to eat out any day.
• Tend to patronize higher-
quality restaurants.

Behavior factors

• Is health conscious.
• Enjoy a high-quality meal without the mess of making it themselves.

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Selling Everything to One Place

If you have a big farm or live far away from customers, you might want to sell
your crops to one place, such as a store, restaurant, and food co-op. This is
called wholesale marketing. Selling your crops this way is faster than other ways of
selling. It is also a good choice if you are not comfortable meeting and talking to a lot of
people. Wholesale marketing will probably not make you as much money as selling
directly to the customer and you may not get paid right away. But it is a simple, easy way
of selling.

Selling Directly

If you do not have a big farm or if you are a new farmer, it is a good idea to sell
your crops directly to customers. This is called direct or retail marketing. Although you
can make more money and get paid faster this way, you will need more time to sell. It is a
good way to sell your crops if you are a good planner, have time, and enjoy meeting and
talking to people.

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Distribution channel

FARM – TO HOME

Market Needs

FARM-TO-HOME provides individuals and restaurants with high-quality

Services of selling fruits & vegetables direct to Home.

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 Market
needs &
customer
factors

Accessibil Customer Competiti

Selection Features Packaging
ity services ve pricing

• Selection: A wide choice of different fruits & vegetables during the seasons.
• Features: we providing high quality of services on fresh vegetables & fruits, we
sell all the foods on the cash payment system only. We provide home delivery
services, too.
• Accessibility: MG has a booth at the Farmer's Market held twice per week in
Downtown Eugene, and also delivers once to twice a week to Eugene restaurants.
• Customer service: Customer will get good beneficiary services.

Competitive pricing: All products will be priced competitive to true substitutes. Here,
customer can purchase minimum 1kg at Rs. 35/-.

• Packaging: good packaging creates the better brand image of business. We

provide to customer the selling products with good protected packaging.

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Market Trends:

The market for mixed greens has exploded within the last five years. Explanations for
this trend are:

• Market supply: The increase of supply will be reinforced the demand. Within the
last few years many other business & malls those were producing general
vegetables & fruits also have moved to this because of the increased margins and
market demand.
• Health consciousness: Ahmadabad’s have become more health conscious and
fresh & healthy fruit & vegetables will create better future of life.
• Purchase matter: retail customer makes the purchase decisions as per the usage
or needs. Restaurants people will buy in allot for their usage and individual can
buy daily or when the need arises.

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CHAPTER.4 COMPETITIONS

Competitors:
Reliance Fresh:

Reliance Fresh falls under Reliance Industries. It is the first retail venture of the
Group. The company offers fresh fruits and vegetables, staples, groceries, fresh juice
bars, FMCG products and dairy products and non-vegetarian items. Reliance Industries
has invested nearly Rs. 3,000 crores to expand the Reliance Fresh stores. Reliance Fresh
directly buys stock from the farmers to cut down on the wastage. The stores work on The
Ranger Format which means selling of fresh vegetables to the road sellers. Reliance
Retail has signed a pact with Apple for the establishment of a chain of Apple Specialty
Stores branded as iStore, starting with Bangalore.

Strengths of Reliance Fresh:

1. More attractive and well managed
2. Wide coverage- With 645 stores around the country.

Weaknesses of reliance fresh

1. Prices of vegetables and fruits are very high.
2. As diversified products are there the company is not able to focus on its core
competencies.
3. Sometimes it may be possible that goods services are not provided.
4. Wages to the working people in reliance are less so they don’t stay longer.

Market share: Market share of reliance fresh is 36%

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.

Tag Line of FOOD BAZAAR: “Ab Ghar Chalaana Kitna Aasaan”

` Future Value Retail Limited is a wholly owned subsidiary

of Pantaloon Retail (India) Limited. This entity has been created keeping in mind
the growth and the current size of the company’s value retail business, led by its
format divisions, Big Bazaar and Food Bazaar.

The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among
other formats, in over 70 cities across the country, covering an operational retail space
of over 6 million square feet. As a focussed entity driving the growth of the group's
value retail business, Future Value Retail Limited will continue to deliver more value
to its customers, supply partners, stakeholders and communities across the country and
shape the growth of modern retail in India.

Strengths:

1. Having presence in across India, more stores in various locations.

2. Variety of products and in large no of units.

Weaknesses:

1. Prices of vegetables and fruits are high.

2. Sometimes it becomes possible that stale vegetables & fruits are there in
packaging where selling is done.

Market share: Market share of food bazaar is 25%.

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More. For of you

With a vision is to be among the leading retail players in India, Aditya Birla
Retail launched its first supermarket, more. For you in May, 2007. Since its launch, the
more. For you has an aggressive roll out, reaching a total count of over 640 stores across
India.

More for you is your neighborhood supermarket which takes care of your
everyday household needs and more. Spread across a wide range of products of food and
non food items, ranging from basic necessities such as, fruits and vegetables, staples,
personal care, home care, household care products, general merchandise, and dairy
products, Also in store are essentials such as, innerwear, kid’s essentials, and a pharmacy,
bakery and a mobile store. With a range of over 4,000 products, we are able to fulfill your
daily shopping needs all under one roof, at a convenient location close to you.

The more for you promises a world class shopping experience, with a modern
store layout, easy to shop with friendly staff at hand to provide assistance, electronic
billing facilities and a colorful ambience. At more. for you we offer branded food
products sourced from the leading brands from all over India,

Market share: Market share More is 9%.

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 OTHER COMPETITORS:

1. Similar local farmers: These are very similar operations to MG, sometimes
larger or smaller. There appears to be room in the market for multiple farmers as
most of the farmers sell out their products each day at the farmers market.
2. Large distributors: An example of this would be Food Service of America
(FSA) which buys a wide variety of products and quality of produce from farmers
and distributes them to restaurants. The produce is not usually local and is a few
days older from the field compared with the local farmers. The price is
comparable and the quality can be comparable, but not necessarily. The
disadvantage of a food distributor is the lack of flexibility relative to a local
grower when serving local customers.

Customer chooses our product & services though there are competitors

Products/ services Plan Marketing Why customer choosing our product/

Objectives services
Products Fruits & Healthy, quality of • Good quality & healthy
vegetables products & good vegetables & fruits
services • Services are also provided like
home delivery
• Cash payment system is also
there.

• Affordable cost is there in this.

Customers Individuals, Attract all type of • All customers can use this
restaurants & customers facility. Customers’ choice &
all others needs are satisfied here.

Channel Farmers to Selling can be • Consumers are able to purchase

direct selling to increased. fruits & vegetables from us &
22
 customers who direct to home services are also
needed service provided.

• Restaurants will have their

produce delivered.

competition Malls, other Improve cost, • High quality of services, healthy

large quality, image fruits & vegetables are provided.
distributors & packaging & • Protected packaging is there so
local farmers satisfaction that customer can be satisfied.

• Customer can get according to

the need regarding the seasonal
products.
Increasing sales
force, making the
Advertisement magazines,
competition • A mixture of advertisements and
newspapers networking will be used to
among others
increase visibility
Cost 1kg @ 35rs. Less cost & • Minimization of cost will create
minimization of customer satisfaction so
cost customer will buy more from
here better than other
competitors
CHAPTER.5 MARKETING PLAN

Farm Fresh has made an effective marketing plan to achieve its goals.
Marketing Objectives:

1. Maintain positive, steady growth each month.

2. Experience an increase in new customers who are turned into long-term
customers.

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 3. Generate brand equity at the Farmer's Market as well as within the commercial
restaurant industry market.

FARM FRESH’S TAGLINE:

“FRESH & HEALTHY, QUALITY OF SERVICES…”

Marketing Vehicle:
# We will conduct marketing by putting advertisement in pamphlets and distribute in
nearby area of the store and also distribute pamphlets in news papers. We will also use
radio for promoting our services as many people today tune in to radio so we will
advertise our company’s products/services to the mass community.

# We will distribute pamphlets weekly and also distribute them in news paper weekly.
We will give advertisement on radio daily.

Marketing Expenses: We will spend Rs. 30000 for marketing our Farm Fresh
products/services initially for first 6 months.

Sales people: We will appoint 4 sales people for marketing and selling our
products/services. They will conduct all marketing activities to promote and sale our
products.

They will responsible for building our brand in the market and making their best efforts
to build our customer base.
Sales people should enthusiastically and aggressively conduct their marketing
activities as Farm Fresh is a start up business and that’s why well planned strategy must
be formulated by these people.

The salary of these four sales people are Rs.5000 per month each. Incentives will be
given as per performance of employees.

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Training: For aggressive marketing and promotion the marketing staff must be well
trained and knowledgeable. To train sales people various training programmers should be
conducted. Sessions on various marketing techniques should be organized by manager.

To motivate them various incentives and reward will be given. Raise in pay of
sales people can also motivate them and boost them to achieve marketing goals set by
manager.

25
CHAPTER.6 production Operation plan:

Meg Gawler – Factors Ensuring Sustainability, Project Design in the context of

Project Cycle Management Sourcebook (February 2005)

The Operational Plan is the third part of your completed Strategic Plan. It defines
how you will operate in practice to implement your action and monitoring plans –
what your capacity needs are, how you will engage resources, how you will deal with
risks, and how you will ensure sustainability of the project’s achievements.

26
 Define & design

FARM FRESH operation plan first defines that how it can be possible. Here, we
need the skill subordinates, quality of services, current and potential sources of these
resources. Also, other capacity needs required to implement project the funding required
to implement project, current and potential sources of these funds, and your most critical
resource and funding gaps, various expenses & cost incurred of marketing activities,
services & others.

Implement & Analyze

Implement says about the process of FARM FRESH. Here, the proper location is
selected, cost structure & marketing tactics are defined. Advertisement for business &
customer’s satisfaction is generated via their needs through services. This gives us
competition regarding:
• Quality of services
• Supply channel distribution
• Cost
• Facility
• Customer’s satisfaction

Share
Share says about the tactics of marketing and makes good competition.
• Emphasize quality—fresh produce, clean salespeople, and an attractive display.
• Use distinctive signs, packaging, and clothing to help build customer recognition
of your product.
• Keep your ears open for new ideas about what customers want to buy.
• Protect product freshness; sell as quickly as possible after harvest.
• Set prices in round figures to speed up sales and reduce problems with making
change.

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 • Take enough products; try to have something left for customers who arrive late.
• Arrange product containers so all items are visible.
• Clearly label items and prices.
• Smile; be friendly; give a special greeting to repeat customers.

Operational Farm Fresh Reliance Food bazaar

factors
Location  C.G.road Wide coverage- With 120 Big Bazaar stores,
645 stores around the 170 Food Bazaar stores,
 Satellite
country. among other formats, in
 Prahlad
over 70 cities across the
nagar
country, covering an
 Ashram road operational retail space of
 Maninagar over 6 million square feet.

 Navrangpura

Facility Providing fresh & Reliance Fresh Future Value Retail

healthy vegetables directly buys stock Limited will continue to
& fruits from the farmers to deliver more value to its
Good quality of cut down on the customers, supply partners,
services wastage. The stores stakeholders and
work on The Ranger communities across the
Format which means country and shape the
selling of fresh growth of modern retail in
vegetables to the road India.
sellers
Quality Customer Customer satisfaction Customer satisfaction of
satisfaction of of services services
services
Supply farmers→ FARM farmers→ retailers & farmers→ retailers &

28
chain FRESH → wholesellers → wholesellers → customers
customers distributers →
customers
Reliance fresh, food bazaar, gives the competition to the FARM FRESH. This
competition is regarding:

• Quality of services
• Supply channel distribution
• Cost
• Facility
• Customer’s satisfaction

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CHAPTER.7 MANAGEMENT STRUCTURE

Management
structure of
Farm-Fresh

Pay range (Per month

Rs.)
Middle level
Team Cashier: - Rs. 7000/-
subordinates
Mr. Hemal Nagori – Subordinate: -
MBA Rs. 5000/-
1 cashier
Miss. Dipika Oza- Total 4 suordinate: -
4 subordinates for
MBA Rs. 20000/-
operation and other
Miss. Bhumi Patel- Watchman: -
management work
MBA Rs. 3000/-
1 watchman
Mr. Naishal Shah-MBA Total pay range per
month: - Rs. 30000/-

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CHAPTER.8 FINANCIAL PLAN
• Calculation of revenue

Rs. 35/kg *300 foot print*30 days*12 moth* 6stores

Rs. 22680000/-
Estimated P&L A/c (yearly)
Particulars Amount (2010-11) Amount Amount
(2011-12) (2012-13)
Revenue 22680000 24948000 27442800
(cost of rental store) (5040000) (5392800) (5770296)
(cost of administration) (7560000) (7560000) (7560000)
(cost of establishment of (750000) -
cold storage)
Net profit 9330000 11995200 14112504

• We have assumed that there is increase in revenue of 10% & rental price increases
by 7%. And administrative cost remained unchanged.

Estimated balance sheet (yearly)

Particulars Amount
Sources of Fund
Equity 6795000
Venture capitalist 6795000
Total 13590000
Application of Funds
Rental for store 5040000
Rental for office 240000
Administration cost 7560000
Establishment cost 750000
Total 13590000

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CHAPTER.9 FUTURE DEVELOPMENTS:

Future Goals, Development, Achievement:

 We want to focus on company growth by offering new

products and services, adding staff, or expanding into
other areas of the business.
 Main point is the keep in touch with customers
regarding their satisfaction for using our services.
 We want to increase our market share by aggressive
marketing techniques and keep touch in competition.
 We want to be a market leader and providing the future minimization cost so that
our present customers stay in touch with us and competition can be going on.
 Within the next three to five years we want to get achievement by,
• market leadership
• using best market strategy
• achieving competitive advantage
• getting more challenges & opportunities

Potential risks and action to be taken to reduce the risks

 Size of the Sale

Risk

The first factor that contributes to risk is the size of the sale. The larger the scale, the
more money involved, the greater the risk. Here the more cost in farm fresh for selling
the vegetables, expenses occurs...

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Whenever we are selling a product that has a high price on it, we must be aware that risk
enters into the buyer’s calculations immediately.

Minimization of risk

• Affordable cost
• Use of perfect strategy
• Lower level expenses & customer satisfaction

 Number of People Affected

Risk

The second factor contributing to the perception of risk is the number of people
who will be affected by the buying decision. Almost every complex buying decision
involves several people.

There are people who must use the product or service. There are people who must
pay for the product or service. There are people who are dependent of the results
expected from the product or service.

Minimization of risk

• Awareness regarding the services

• Giving of detail ideas regarding the services to the new entrant customers.
• Knowledge of seasonable vegetables & fruits
• Needs, choices, etc... Can be fulfilled.

Length of Life of the Product

Risk

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 The third factor contributing to the perception of risk is the length of life of the
product. A product or services like seasonable vegetables & fruits for several years,
generates the feeling of risk.

Minimization of risk

• Selling should be effective

• Not more than enough seasonable fruits & vegetables are there.

34
REFERENCE:

• www.google.co.in/vegetable/

• www.google.co.in/images/fruits

• http://punekar.in/site/2009/07/20/farmers-supply-vegetables-directly-to-the-
housing-societies/

• http://www.fresh-vegetables.eu/

• http://www.farmfreshtoyou.com/index.php

• www.reliencefresh.info/

• www.morestore.com/

• www.pantaloonretail.in/foodbazaar.asp

• http://enterpreneourindia.in/a-farm-to-home-business-2-77

• http://in_linkedin.com/pub16/233/32/a

• Meg Gawler – Factors Ensuring Sustainability, Project Design in the context of

Project Cycle Management Sourcebook (February 2005)

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