Recently, when i approached a local agro brand Nandi for marketing and strategy internship for that I have prepared this model for their business, after doing a real market research from 2 local shops and their customers after that i drafted this report in relation to strategizing their packaged wheat business as that business holds the largest portion of revenue. The whole plan is summarized in the above chart.
Key Findings during my research:
- 96% is unorganized market in this area, and route is farm than mandies then small sellers (who clean and sell).
- The non-existence of trust between sellers and consumers is the most important reason for being so unorganized.
- The people of this area are not ready for taking over packaged flours due to this mistrust, so companies are just relying on marketing to just convert the people who are actually converted to packaged, which means the revenue the companies are getting is just the revenue that tend to happen by any chance, but companies are failing to actually converting the mass which is 90% of the revenue.
- if I can say the market is saturated (not really), but according to population to consumption its already in the equation that Nandi agro is sitting at the top of the tree in the city, but still trying to climb further without growing the tree further.
So, the solution I suggested to Nandi agro:
- My proposal to them was to tackle the issues with organized vendors who are selling loosed atta by just moving slightly moving downwards and enter the market of semi-organized, let me explain: what I meant is that as this market is not ready for the packaged brands in the immediate (so we just can't even capture the whole market in 10 years if we go by this), to capture the whole market we need to, divide our steps by introducing a gap filler that is branded Whole wheat (whole wheat not the processed atta)
- By this we can convert the mandi model to company model, and franchising the local chakies. With our brand, which we will be having more hygienic environment and our packaged, cleaned, tested wheats, which will be processed by the local trust of that chakki wala and an added trust of clean environment in the shop, Government verified packaging
The issues need to be fought with:
- Having a check at the local level by the machine or modifying the machine so that no tampering can be held by the operator for cheating the customer, by visible opening etc, not a very big issue as these people are holding 96% of the market we can definitely trust them for not cheating else they would have not survived.
- Soon after some time, consumers will treat both of the atta as one without any issue.
Another business thought on agriculture: Green Revolution 2.0
[I know some types of operational challanges are there, but in business everything is worthwhile]
