THE MARKET POTENTIAL OF FRESH CUT FRUITS AND VEGETABLES IN THE HORECA SEGMENT

THE MARKET POTENTIAL OF FRESH CUT FRUITS AND VEGETABLES IN THE HORECA SEGMENT

Submitted By:Gunjan Gupta1Organizational Structure

Company ProfileA new venture by Jubilant Enpro. Jubilant Fresh, as an organization is involved in providing Fresh-Cut & Whole Vegetables in the HoReCa Segment.The company strives to provide its customers with customized solution for quality vegetables.

Plant established in NoidaHACCP Certification: Hazard Analysis and Critical Control PointsVarious Slices and Dices

3Department Structure

4ObjectivesTo learn about the business and to assess the market potential of Fresh Cut Fruits & VegetablesTo develop the business and transform leads for JFPL To assess the needs of the Target Group in HORECA and its potential for association with JFPL To identify Key Accounts and develop strategies for alliances with JFPL

Potential Customer Group

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1st Year Targeted Segment

Fresh Fruitsand Vegetableshand picked from farmsConsumerFarmRefrigeratedTruckProcessingPlantRefrigeratedTruckTransporting via refrigerated vehiclesWashed in chlorine before cuttingCut by Hand and MachineSpecial Machines and packagingThe Operational Process

KAM - Process Flow

Account IdentificationUnderstand Customer specific needsAnalyze Customer Needs Vs. JFPL CapabilitiesBuild Business CaseBusiness Case ApprovalFeedback SystemActivate AccountBuild AccountManage AccountConflict resolution - Internal/ExternalTracking/ Report/ Variance AnalysisYesNo

Customer CTG (Core Target Group)Customer F&V (Fruit & Vegetable) basketQuantity of each F&V purchased in a month (preferably last month)Source of procurementCustomer readinessArticle wise monthly consumptionPresent TOT (Terms of Trade) with vendorCurrent vendor detailsCurrent Buying RatesNumber of clients served per dayNumber of meals served per day Credit Period ; etcData Required from KA

ObservationsQualityB Grade Quality Vegetables usedTerms of TradeGenerally, Clients enter in short term contract with VendorsHigh Credit Period ( 45- 60 days) given by Suppliers In case of Bad Quality, Vegetables either dumped or replaced in next lot

ServicesDoor to Door DeliveryMultiple Deliveries Unloading of Vegetables is done by Suppliers Labour MiscellaneousNon- availability of cold storage facility

Observations( Cont.)

Potential Business Model InsightsCut Vegetables more suitable for QSR SegmentInitially, start business by supplying Whole Vegetables and gradually convert them into Cut SegmentHealth care organizations are interested in fruits, specially cut fruitsClients interested in half yearly or yearly contracts with JFPL

Potential Business Model Insights (cont.)Scepticism is there for Cut VegetablesReasons:Increased in the production costReduction in shelf lifeUnavailability of storage area for cut veggies ( cold storage), which will lead to multiple deliveries and ultimately lead to logistics cost Appearance / Discoloration / TextureDecay / ContaminationAroma and flavourBest Before/Use by dates would be mentioned are not ?Compatibility, where mixed vegetable combinations are packaged E.g.. Salads ; where carrot , radish , onion , beetroot , all are required.

Recommendations & Suggestions

Best way to enter this market and then scale up this business

EntryInitially, in case of whole vegetables, JFPL rates should be less in comparison to the Supplier rates Quality Assurance should be given to clients Give Productivity Discounts to the clients having high basket value and lure them for cut veggiesOffer Early Bird discountsIf procuring veggies from farmers, then we can start some Farmer Benefit Schemes Educating clients on handling/ using cut veggies

Scale upOnline order facility FAM Tour of the plant to our prospective clientsEnter into long term contracts with the clientsBenefit schemes can be given to the clients who are entering into yearly contract with JFPLVolume based incentive schemes

Recommendations & Suggestions (Cont.)

ConvertedIn PipelineStriked OffFinal Key AccountsS.No.ClientContact PersonProfile1FastraxDr. Ponsingh R.Sr. Food Technologist2Palki CaterersMr. Anil ShuklaOwner3Par MakerRahul HandaOwner4PAN IndiaRahul MasseyChief Chef5Kwality CaterersDipankar DasPurchase Manager6G VisionDeepak AroraOwner7Apollo Hospital, JasolaMr. Ankur SinghPurchase Officer8Professional CaterersMr. Vipul PaulOwnerThank You

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