B2B

MARKETING
GROUP-2
 FISHBAY.IN –
FISHING ON THE NET
Introduction
 Mohammed Haneef launched an online fish store called Fishbay.in in Mangalore, India in year 2013.

 Initially they targeted individual buyers who wanted to buy fish online for home delivery.

 But with time Haneef started getting interests from restaurants and hotels to buy fish through their
website. One more reason of getting interests was competitive pricing in market.

 Haneef started getting bulk orders from the restaurants at negotiated price.

 Haneef realized he was lacking to serve both the Individual buyers and restaurants.

 Individual buyers used to care more about variety and freshness whereas restaurant used to focus on
price and large order quantity.
Consumption

 Individual consumers: - They had 20-30 loyal customers who were ordering small
quantities like 2-3 kg on an average once a week. They were less price sensitive, also
they were willing to pay premium prices for quantity and variety. Margin was 20-35%
depends upon the type of fish.

 Restaurants: - They used to order large quantities around 30 kg per order. They were
more price sensitive and margins were around 15-30%.
Overview of Karnataka’s Fish Industry

 State Profile: Karnataka, a south Indian state with a western coast along the Arabian
Sea.
 Per-capita Availability: 6.8 kg of fish per year.
 Household: 26 cities with a population exceeding 0.1 million, totalling 16 million
households.
 Fish Consumption: 56% households consume fish twice a week.
 Key Varieties: Mackerel, Oil Sardines, Ribbon Fish, Pink Perch, Prawns, Squid and
Cuttlefish. Mackerel and oil sardines account for 70% of marine fish production.
 Fish Harvest in 2012/13: Dakshin Kannada stood at 135,884 tonnes, which included
37,780 tones of sardine and 8,933 tones of mackerel
Fish Industry in Mangalore –The
Major Coastal District of Karnataka
 Mangalore: Capital of Dakshin Kannada, a primary fishing and marketing hub
contributing 98.5% of the Dakshin Kannada’s fish catch.
 Mangalore Demographics: Approx. 75,000 households with an average of four
members each.
 Consumption Habits: 65% of households consume fish once a week, averaging 2-3 kg
per household.
 Preference: Preference for fresh saltwater fish from daily catch by purse seine boats.
 Fishing Practices: Contrasting methods - purse seine boats bring daily catch, while
deep-sea trawlers preserve catch in freezers before return.
Fish Retailing in Mangalore

There are two types of Fish Market in India:

1. Local Congregation: Selling Fish to end users
 Roadside fish market or Fisherfolk seller
 Unorganized and unhygienic at the point of purchase
 Overcrowded.
2. Fish retail outlets: Operates by Government bodies or individuals
 Operates at customers friendly locations
 Organized and more hygienic
 Such groups like Reliance, Aditya Birla, RPG
■ State funded-fisheries development corporation operate fish retailing in Tamil Nadu, Kerala and
Karnataka.

 Purchase: directly from fishers or from fishers’ cooperative societies.

 Price: lower than roadside market with hygienic condition.
 Equipment: display freezer (showcasing), space for cutting and cleaning, storage space,
electronic balance.
 Live freshwater fish such as murrel also sell.

■ Karnataka Fisheries Development Corporation (2012)

 Number of outlets: 12
 Quantity: 200-300 Kg/day
 In 2013, 10 more outlets added
 Investment: INR12 millions in renovate its outlets in Bangalore
 Fishbay.in

• FishBay.in is an online store that allows individuals to order fish online and receive it the same day.

• The online store is based out of owner Mohammed Haneef’s brick-and-mortar outlet, Karavali Fresh Fish,
in Mangalore, Karnataka, located in Southern India.

• FishBay.in was launched when Haneef was inspired by the success of an entrepreneur in Mumbai, who
ran a similar venture.

• Haneef believed that having an online option would attract a certain section of the market, consumers who
would rather avoid the poor hygiene conditions that accompany most traditional Indian fish markets.
Cont.…
• FishBay.in sells four categories of fish, ocean fresh, shell, freshwater, and frozen fish.

• Each fish is listed with availability and price. When an order is placed it is confirmed with the
customer, then, given to another employee who hygienically cleans, cuts, and packages the fish.

• Additional dressing of the fish comes at an additional cost. This process takes an average 30
minutes.

• Given its location in Mangalore, FishBay.in operates primarily in the area, delivering up to a 20 km
radius of the store.
About Customers
 Fishbay.in had around 20-30 loyal customers, mostly professional workers who bought fish once a week,
typically on Sundays. They preferred sea fish over river fish.

 Initially, daily sales were around INR 10,000 on weekdays and INR 15,000 on weekends. By June 2014,
daily sales had reached INR 18,000.

 On average, 5 loyal customers and 25 infrequent customers bought from Fishbay.in daily.

 Net profit margins varied depending on fish prices. Fishbay.in offered discounts of 10-15% to frequent
buyers based on order quantity.

 Customers could post feedback on the site and were rewarded with gift coupons for constructive feedback.

 Fishbay.in was working on a web application to identify frequent buyers, show them items they
recently/frequently purchased, availability and prices to build relationships. They also planned to send email
alerts to regular buyers on Sundays about availability of preferred products
Order & Processing
 Fishbay.in, a fish-selling business, employed seven full-time and two part-time workers.
 Their marketing team developed a strategy targeting Mangalore customers, distributing
pamphlets, conducting surveys with restaurants to understand consumer preferences.
 Additionally, a procurement team sourced fish from Mangalore-based fishermen, trained by
Haneef.
 The business had an employee managing online orders, verifying their authenticity, and
preparing fish based on customer preferences.
 They offered tracking but only accepted cash on delivery.
 Two workers handled cleaning and packaging, capable of processing 36 kg of fish per day.
 The company operated six days a week, with local deliveries managed by one person.
 To preserve the perishable fish, they used ice blocks and refrigeration, with daily operating
costs around INR5,000 (excluding salaries).
 Challenges
 Competition: The Indian seafood market is highly competitive, with several large and established players.
Fishbay faced competition from both traditional retailers and online players.

 Logistics: Delivering fresh seafood is a logistical challenge, requiring careful temperature control and
timely delivery. Fishbay needed to develop a reliable and efficient logistics network.

 Technology: Fishbay needed to develop a robust and scalable technology platform to support its online
business. This included developing a user-friendly website and mobile app, as well as integrating with
its back-end systems.

 Marketing: Fishbay needed to create brand awareness and build trust with consumers. This was a
challenge in a market where online grocery shopping was still relatively new.

 Financing: Fishbay needed to secure funding to grow its business. This was a challenge in a market with
limited access to capital
THREATS & MITIGATION
STRATEGIES
 THREATS
 Competition
 Supply chain disruptions
 Changes in consumer preferences

 STRATEGIES
 Investments in technology
 Partnerships with suppliers
 Customer research
Expansion
 After Fishbay.in went offline Haneef started receiving calls from restaurant and hotels
mainly from nearby tourist spots in Karnataka such as Chikmagalur and Madikeri.
 Haneef initially responded to queries from restaurants in Chikmagalur and Madikeri
primarily because these locations were less 150 km from Mangalore and were easy to
travel to.
 Haneef also realized that huge business potential existed outside the Mangalore market
and foresaw an expansion of his online business in the immediate future.
 Mangalore was well connected by road, rail and air to India which had sizeable fish-
eating populations.
 Haneef wanted to cater to the medium category which required on average 30 kg of fish
per day
 He felt that he could easily target major cities in Karnataka such as Bangalore and
Mysore and serve smaller towns such as karkala and Udupi which were close to
Mangalore.
 Basa Fish Threat in Restaurant Business
 Basa fish, a catfish from Vietnam and Thailand, was gaining popularity in Indian
restaurants as an alternative to local varieties like pomfret.
 Basa had several advantages - easy breeding ability, less odor, white unblemished color
giving a good quality impression, and less bones making it economical to use.
 Restaurants were facing supply shortages of local fish varieties causing price rises. Basa
fillets were cheaper at INR 300/kg compared to INR 400-1000/kg for local fish.
 There was high demand for imported basa in metros like Mumbai and Delhi. Monthly
imports were over 5000 tonnes in 2010.
 Since 2013, Andhra Pradesh farmers started large scale basa farming in ponds,
producing 50 tonnes per hectare.
 Basa could become a threat to Fishbay's restaurant business if the restaurants preferred
cheaper imported basa over local fish varieties.
 Dilemma
 Fishbay.in originally aimed to serve individual fish buyers who wanted a convenient way to
buy fish online. However, restaurants also started showing interest to order from Fishbay.in.

 Haneef felt that he lacked resources to serve both segments - individuals and restaurants.
While individuals placed smaller orders and were less price sensitive, restaurants placed
larger orders but demanded lower negotiated prices. Serving individuals also required greater
distribution effort per order compared to restaurants.

Haneef was unsure whether to

 Stick to his original target segment of individual buyers placing smaller but higher margin
orders requiring more distribution effort.
 Shift focus to restaurants that placed larger orders but demanded lower prices with potential
for higher volumes and logistical efficiencies.
Solution
The company should invest money and change the target market from consumers to
restaurants because it will enable them to make profits through volume of scale
 It will enhance the profit of the company by selling on volume. As it will also reduce the
cost due large order (like Economy of scale).
 Large orders in one go also reduces the inventory turnover of the company which help in
taking more orders and booking profit.
 It will help company sustain the demand in future.
 It will offer a continuous stream of cash flow, making fishbay.in to forecast the next
sales and invest the money accordingly. It will help to project the future cashflow which
enable the company to bring fund from outer sources like investors. It will also solve the
problem of funding that company faces.
THANK YOU!