1. What are the opportunities for Field Fresh to grow its frozen vegetables business?

Field Fresh started selling frozen vegetables in 2010. The opportunities to flourish in the
business are:
 At the time of unseasonal for green peas and sweet corn, there was a boost in sales
from April – November.
 Though heavy competition was prevailing, all-India presence of companies were
less and a very few companies were engaged in frozen vegetables
 National level business channel
 Maintaining relationship with potential distribution customers
 Paying attention to customer need and accordingly creating demand
 Product specification were set at higher levels
 Since MT channel has shown a positive margin, it can be treated as the main outlet
 Having variety of channels is one big advantage
2. Are the growth opportunities similar or different for the two different products-frozen
green peas (FGP) and frozen sweet corns (FSC).
It is different for both. FGP made a 2% gross margin, whereas FSC made -6% gross
margin on January 2012. Annually, about 500,000 metric tonnes of fresh peas would be
processed by de-shelling and freezing using individual quick freeze technology. The frozen
produce was required to be kept in cold storage at a monthly charge. The Agri-markets were
the major source of fresh green peas for the processors of FGP. whereas Fresh sweet corn
was grown largely in the states of Maharashtra and Gujarat in western India, Madhya Pradesh
in central India and Karnataka in south India. About 90,000 metric tonnes of fresh sweet corn
was used for processing into frozen format. The output of the FSC was 23,200 metric tonnes
per annum. Trimurti and Safal were the biggest brands of FSC. Unlike FGP, the share of sale
by the small brand owners was small for FSC; most of the FSC was sold by larger companies
3. Would the frozen vegetable business of Field Fresh become profitable?
By adhering to the strategies followed by Field Fresh they can make the business
profitable
 Launch both frozen green peas and frozen sweet corn.
 Build national level distribution with availability in metro and tier1 cities3
 Invest in building consumer brand on the platform of high and consistent quality
 Have strong control over the supply chain, especially on procurement and processing
of fresh produce
 Wherever possible, use the existing competencies in growing and sourcing the crop
Apart from these, the geographical expansion was proposed to be continued; more cities
were to be covered, with 72 cities targeted by the end of the financial year 2014-2015.
Additionally, the team was planning to increase penetration in MT, GTA and FSA
channels and cover a higher number of outlets in these channels.
4. What would be the profitability of the business in different channels for the two
different products namely FGP and FSC.
EXHIBIT 4: CHANNEL-WISE SPLIT FROZEN VEGETABLES MARKET IN INDIA
(2011)

Channel Value ( ₹
Mn.)
Modern Trade (MT) 750
General Trade A Category (GTA)
200
General Trade others (GTO)
950
Food Service A Category (FSA)
1,200
Food Service Others (FSO)
3,300
Total
6,400

As per this data MT channel has gained its peak. While the sales made to MT channel were
at positive gross margin, the gross margin was negative for the rest of the channels.
FieldFresh had been able to get higher prices from MT channel outlets due to the brand
building efforts at these outlets. These efforts engaged the consumers who purchased the
products for household consumption. A small section of the outlets in GTA and FSA were
convinced about the higher quality of FieldFresh products and they were willing to pay the
higher price. It was apparent that a large number of the outlets were going to take longer to
recognize the higher quality of FieldFresh products and, therefore, would be unwilling to pay
a premium over the prices for the competition. It would take the sales team more time to
convince these outlets about the higher quality before charging higher prices. 

5. Which channel and product mix would be profitable?

MT channel is the advisable channel . the sale of Del Monte products and Field Fresh
exports and the sale of frozen goods through MT channel would be profitable
6. What should be the relative importance between scale and profitability?
arning a profit is important to a small business because profitability impacts whether a
company can secure financing from a bank, attract investors to fund its operations and grow
its business. Companies cannot remain in business without turning a profit.Whereas, Scaling
your business the right way gives you the growth and extra income you want without the
extra work. So scaling helps your small business become a big business without the extra
costs, complexity, and frustrations that usually come with simple, organic growth. So a
proper balance of both would lead to the ultimate success of the business.
7. What options should be considered by Sanjay Nandrajog?
 Innovation in products and production process
 Supply chain management
 R & D changes
 Vice choice in picking up the products from farmers
 Reduction in procurement cost