XYZ Industry FROZENIndustry XYZ FOOD Case FROZEN FOOD Case

By TEAM NAME: ARIHANT, Deepak Bartwal Shubham Agarwal Deepakbartwal.nitie@gmail.com shubhamagarwal09@gmail.com +91-7666236135 +91-9619578712 PGDIE-39 NITIE, Mumbai

Ft. company would reach 213.62 Crore in next 5 years Enhance range of products by introducing products like chicken and Green peas Food processing industry is covered under Priority Sector Bank • Development of 30 Mega food plants across the country in 10th plan of MoFPI • Exemption of processed food items of licensing under the Development & Regulation Act. 1951 Stress on Domestic Market Freezer Space in Indian Market 1500 1000 Freezer Space(Cu.Stress on Domestic Market Why Domestic Market? • • • • 70 Crore revenue comes from domestic market With a growth rate of 25%.) 500 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 .

Domestic Market Opportunity STRATEGIES • • • • To develop contract farming to improve yield and reduce cost Introduction of new products like chicken and green peas Opening a new plant in some SAZ in northern India Improving relations with retailers by giving them volume related incentives and free Freezer Opportunities for Growth High Mass Market basic foods (fruit & vegetables. poultry & Fisheries Niche market products (Snacks foods and packaged foods) Mass market value added products (dairy Products) Low Low High Policy attractiveness and Government Initiatives . meat.

Hybrid (Mixed Type) Distribution is one way to capitalized Indian Fragmented Market. one type of Distribution Network can not meet the requirements. The Right Distribution Model depends on the Sophistication of the Market Distributor Model Low Manufacturer Reach High Warehouse Model High Manufacturer Control Low Institutional Division • Fast Movement to Big Customer • Managing Good relation Domestic Retail Division • Need High Reach .Mixed Type of Distribution Network Considering Indian Demographics and different Customer Need.

Logistics Strategy Investment in Cold Chain Infrastructure is Capital Intensive: Slow Returns Use of 3 PL (Preferably RFID enabled) services for the transportation purposes • Less Cost • More focus on Core Competency • Less Security and Quality Concerns • Ease in Export New Plant location in Punjab • Low Cost Sourcing: Less Inbound logistics • Better Distribution Strategy: Less Outbound logistics New Distribution Network • Hybrid Model: Low Cost of Transportation • Better Service Level and High Reach .

Accurate Information Know the Customer Preferences Attractive Presence Generate Sales Report Provide Live Sales and Statistics Good Brand Value among Customer Low Labour Cost Save time and reduced Cost Customized Menu According to Customer Preferences Revenue Generation More convenient way to do business Secured transactions Payments and Information .000.Why Online Ordering System Internet usage in India: 7% of population (Approx. Enables targeted Marketing Campaigns.000) According to International telecommunication union All Time Open Greater reach 24*7*365 Effective online promotions Through electronic coupons and gifts Customer Database Valuable Customer Information Database. 81.

milling ) Transport (e. excessive peeling.g.g. spillage.g.g. overeating. Rodents etc)) Producer Pre-Processing (e. inefficient harvesting.Quality Issues in Food Value Chain Frozen Food Value Chain: Quality Issues Consumer may be facing quality issues related to: •Taste •Ingredients •Color & Texture •Juiciness Field Losses (Pest. drying. Diseases. spoilage. technical deficiencies) Processing & Packaging (e. rotting in stores) Wastage by Consumer (e. food wastage) Rich Countries – High losses at a later stage in the food chain Field Consumer . washing) Consumer Marketing (e.g.g. leakage) Developing Countries – Relatively high losses in the initial parts of the value chain Storage (e.

Quality Solution: Contract Farming and HACCP Quality Problem in India: – More at starting phase of Value Chain Solution – Focus on Quality during Procurement with farmers through CONTRACT FARMING HACCP: Hazard Analysis And Critical Control Points Approach “Best Way to maintain quality in Food Supply Chain “ Identify the Potential Hazards Determine the Points And Operational steps Establish Critical Limits Establish a System To Monitor Establish the Corrective Action Establish Procedures For Verification Establish Documentation .

XYZ can’t go for aggressive branding for all products •80:20 Rule for Branding: All product does not need equal branding •High Promotion : Winners and Sleepers •Less Promotion: Traffic Builders •No Promotion: Losers .Direct Product Costs Direct Product Profit Low DPP/unit High DPP/unit Sleepers • Selectively Display • Advertise • Add Shelf Facings • Reconsider Price Winners • Heavily Advertise and Promote • Aggressively Display • Maintain Shelf Stock Losers • Reduce Shelf Allocation • Shift to Outside Supplier • Possibly Discontinue Low Sales Traffic Builders • Reconsider Price • Downgrade Shelf Position • Less Promotion High Sales •Due to Poor Financial Health.Cost of Goods Sold Gross Margin + Adjustment Adjustment Gross Margin .Branding: ‘Direct Product Profit’ Approach Selective Branding through Direct Product Profitability Sales .

vegetables & dairy products • Easier to involve in contract farming with more knowledgeable farmers • Advantages of SAZ 1 2 3 4 5 • Cheap & easy sourcing of raw material • Ease of processing and packaging • Funding at low interest rate by government • Presence of participants in SAZ with knowledge about industry standards • Reduction on tax on export of processed food .New Plant at Punjab ! Plant At Punjab To exploit advantages of SAZ • To meet higher demand in North India with reduced logistic expanses • High yield of fruits.

ROAD MAP for 5 Years Back End Infrastructure Development: For introduction of new product New product Introduction in Domestic Market: Frozen Non-Veg and Green Peas Distribution Re-structuring: Introducing Distributor for Better Reach Online Ordering System: Giving better service to customer Plant Location to AEZ in Punjab and Contract Farming: tax benefit and easy Purchasing Dairy and Fruits & Vegetables frozen Food introduction Focus on Foreign Market: Certification for UK Continuous Branding and Advertising Year 1 Year 2 Year 3 Year 4 Year 5 .

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