Business Plan of a Fruits& Vegetables KIOSK

Submitted By:
Arvind Kumar Jha(1206)
Gaurav Gupta(1211)
Pankaj Agarwal(1216)
Srijita Dutta(1220)


Fruits and vegetables remain an important source of nutrients in many parts of the world. as it will cater the necessity of a big chunk of young and needy working population for procuring Quality Fruits and . This area becomes even more important in the sector of agribusiness. the power of the buyer has overtaken that of the customer. Other important nutrients supplied by fruits and vegetables include riboflavin. In India Organized retail is on boom. it becomes an issue to think upon as commoditization of markets continues. and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Since Hyderabad has become one of India’s most prominent IT emerging cities as well as the country’s centre of scientific and technological development. many people from different parts of the country have migrated there to take advantage of the sprouting opportunities. customer value provided is unsatisfactory. and vegetables play a significant role in human nutrition. because most of the agricultural products are perishable and have a very short shelf life. Fruits. Gradually. and phosphorus etc.INTRODUCTION In today’s highly competitive global market place. in emerging economies as well as mature markets. Though India spends over 12 per cent of its GDP on logistic and supply chain management. As. the pressure on organizations to find new ways to create and deliver value grows even stronger. and dietary fiber etc. especially as sources of vitamins. zinc. logistics and supply chain management have become the crucial areas of management. Their contribution is immensely important in making our life healthy. so a revolution in marketing of F&V through organized retail is also a need for today. minerals. Prices have always been a critically competitive in many markets and the signs are that. Supply Chain Management (SCM) is the oversight of materials. In this context. information. nuts. So a kiosk of Fruits and Vegetables in residential places of Hyderabad of “Fresh & Fresh Company” is an efficient business venture. potassium. and offer advantages over dietary supplements because of low cost and wide availability. calcium.

. Mission . our business plan is made on the basis of Greenz store operation which is located across Hyderabad with its 100 stores and deals in selling fresh fruits and vegetables and further planning to expand its business by integrating milk and frozen products. Here for opening up fruits and vegetable kiosks. Vision and Mission Vision .Continue to serve our farmers & our consumers. Promotion: leaflets to repeat purchasers. Hyderabad Price: Competitive price. Fresh & Fresh is only concerned with the A-grade produce procurement from vendors.Provide quality Fruits & Vegetables to consumers at affordable prices while ensuring fair returns to the producers. Fresh & Fresh wants to be market leader in the organized F&V retail business in Hyderabad. Marketing Mix-4Ps Products: Fruits& Vegetables Place: Banjara Hills. thus minimizing company’s risk. Aforementioned kiosk occupies an eye-catching space in an area which is accessible to most customers. advertisement in nearby shopping malls Unique Selling Propositions  “Fresh & Fresh’’ is neighborhood store stocking freshly harvested F& V. It will be achieved by establishing a direct linkage between farmers and customers. Our business plan is centred towards opening an F & V store whose model has been replicated from a successful model store in respective field.Vegetables.

30 pm.  You can buy your daily requirement of freshly harvested produce and no excess quantity purchase is required. which enables us to procure and stock only the quantity required and hence no old stock is left on the shelves of the stores for the next day.  Computerized billing & electronic weighment.  Home Delivery – Customers can also avail door to door delivery system from our store.  We enable you to buy your daily needs of freshly harvested produce without having to stock in the fridge and thus being healthy. Our shelves are appearing fresh as our USP signifies.  Shop at your convenience from 7 am – 9.  We have designed tools which forecast the demand of individual Fresh& Fresh stores. .  We offer a wide variety of F&V which is unmatched.

Daily Demanded Vegetables (All season available) 4. Layout Details 1.STORE LAYOUT Fresh & Fresh kiosks will be built in 15 X 15 ft dimensions. Entrance gate 2. Daily Demanded Vegetables (All season available) . Cash Counter 3. Daily Demanded Vegetables (All season available) 5. Vegetables and fruits compartments will be kept in 4 division/box and each part has similar kind of vegetables or fruits. The store layout is shown in 13 compartments.

Cabbage. Coconut. Cauliflower. Okra. Carrot. Garlic. Seasonal Vegetables 9. Onion. Oranges etc. Pomegranate. Ginger. Seasonal Fruits 12. Mango. Grapes. Daily Demanded Vegetables (All season available) 8. Date.6. Coriander. Seasonal Vegetables 11. Spinach etc . Colocasia. Lemon. Daily Demanded Fruits (All season available) 13. Guava. Tomato. Brinjal. Vegetables: Potato. Papaya. Bottle gourd. Drumstick. Capsicum. Seasonal Vegetables 10. Apple. Lettuce. Chilly. Melons. Daily Demanded Fruits (All season available) Fruits: Banana. Daily Demanded Vegetables (All season available) 7.

if one farmer is not able to supply the desired quantity with desired quality.60000.000-Rs. Consumer in this segment is ready to pay for services and quality. SUPPLY CHAIN MANAGEMENT MODEL FOR GREENZ STORES Proposed SCM model for Fresh & Fresh stores Supply Chain: The first and most preferred procurement option is to buy directly from the farmers and in case.Hyderabad. The second preferred option is to directly procure from the Mandi.DEMOGRAPHY OF SHOP AREA: Our store area is at Banjara Hills . then from farmers’ Associations.5 T) Direct Market purchase – Kottapet . So our target is local working people who are unable to give much time for F&V shopping. From DSS for retail management by NAARM website income data of this area is available which is around Rs. Here mainly high income or high middle income working people are living. SCM model for Greenz stores For 77 operational Stores Fruits –100% (1.45.

5T) Direct Market Purchase(Mandi) Bowenpalli Transportation & LogisticsDistance from Collection Centre to CDF (Begumpet) = 25 km Distance from Kothapet to CDF = 18 km Distance from Bowenpalli to CDF = 6 km CDF to Banjara Hills Store = 7 km Cost incurred in procurement & LogisticsProcurement Cost + Logistics (Mandi to CDF) = ₹ 200/day Transportation cost CDF to Store = ₹ 130/day Procurement & Logistic cost from Mandi to CDF should not be more than 10% of per day sales value. SERVICES  Order taken over phone and home delivery on minimum purchase of Rs.  Quality assurance .5 T 25% (2 T) Collection Centre Shamirpet Vegetables (8. Similar model can be followed for opening up Fresh & Fresh fruits & Vegetables booths.for the maximum distance of 4km. Vegetables – 8.150/.5 T) 75% (6.

Banjara Hills Store Size Per day sales(INR)/day Per month sales(INR) Infrastructure(INR) Fixed cost/month Rent Electricity Infrastructure depreciation Labor cost(Husband+Wife+1 Delivery boy) Miscellaneous Total monthly cost Margin in F&V business Minimum sales required/month Minimum sales required/day Profit/day Profit/month BCR(month) 15 X 15ft Value INR Value INR 5500 165000 100000 10000 700 750 25000 1000 37450 30% 124833.111 1650 49500 1.321762 Business efficacy for Greenz fruits & Vegetables stores(Overall-Hyderabad) Total no of stores 100 Functional stores 77 Value in INR Purchase value/day 160000 Sales value/day 250000 Dump/wastage(10% ) 16000 Margin(30%) 48000 Backend cost including logistics(15%) 24000 Expected sales value/day 248000 .HUMAN RESOURCES  3 Persons: o 1 Person for Delivery o 2 Person for Store Operations Business efficacy for Fresh & Fresh fruits & Vegetables Store.3 4161.

67 320405. of Functional kiosks Total sales Cost incurred/kiosk/day Total costs Minimum sales required CONCLUSIONS AND SUGGESTIONS: 22 4500 77 346500 1248.6 .333 96121.Per day procurement cost of F& V/kg Average sales/kiosk/day No.