“THE MARKET POTENTIAL OF FRESH CUT FRUITS AND VEGETABLES IN THE HORECA SEGMENT”Submitted By: Gunjan Gupta Organizational Structure Jubilant Bhartia Group Jubilant Life Sciences Jubilant Industries Ltd. Jubilant Retail Jubilant Food Works Dunkin Doughnuts Jubilant Enpro Jubilant Energy Jubilant Motorworks Dominos Pizza Jubilant Fresh Company Profile • A 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. Department Structure JFPL Purchase Department Marketing and Sales Operations Quality and Assurance Human Resource Finance Objectives • To learn about the business and to assess the market potential of Fresh Cut Fruits & Vegetables • To 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 HOTELS • Branded Hotel Chains, Star Hotels, etc. • Taj, Oberoi, ITC, Radisson, Hilton, Country Inn & Suites, Sarovar Hotels, etc RESTAURANT • Branded Restaurant Chains, Fine Dining, Multicuisine/ Specialty • Mainland China,,, Moti Mahal, Barbeque Nation, etc. CATERERS • Corporate caterers, Institutional caterers, Party caterers, etc • Sodexo, Tulip, IRCTC, Sai Poorna, etc. QSRs • Branded QSR Chains, Regional QSR's • Dominos, KFC, Subway, Soya Express, Wah Ji Wah, Nizam's, Papa John, etc… st 1 Year Targeted Segment Restaurants QSR’s Fine Dining Corporate caterers Institutional caterers Party caterers, etc. Caterers The Operational Process Refrigerated Truck Farm Washed in chlorine before cutting Cut by Hand and Machine Special Machines and packaging Refrigerated Truck Consumer Fresh Fruits and Vegetables hand picked from farms Processing Plant Transporting via refrigerated vehicles KAM - Process Flow Account Identification Understand Customer specific needs Analyze Customer Needs Vs. JFPL Capabilities Build Business Case No Conflict resolution Internal/External Feedback System Activate Account Manage Account Business Case Approval Build Account Tracking/ Report/ Variance Analysis Yes Data Required from KA • • • • • • • • • • • • Customer CTG (Core Target Group) Customer F&V (Fruit & Vegetable) basket Quantity of each F&V purchased in a month (preferably last month) Source of procurement Customer readiness Article wise monthly consumption Present TOT (Terms of Trade) with vendor Current vendor details Current Buying Rates Number of clients served per day Number of meals served per day Credit Period ; etc Observations • Quality – B Grade Quality Vegetables used • Terms of Trade – Generally, Clients enter in short term contract with Vendors – High Credit Period ( 45- 60 days) given by Suppliers – In case of Bad Quality, Vegetables either dumped or replaced in next lot Observations( Cont.) • Services – Door to Door Delivery – Multiple Deliveries – Unloading of Vegetables is done by Supplier’s Labour • Miscellaneous – Non- availability of cold storage facility Potential Business Model Insights • Cut Vegetables more suitable for QSR Segment • Initially, start business by supplying Whole Vegetables and gradually convert them into Cut Segment • Health care organizations are interested in fruits, specially cut fruits • Clients interested in half yearly or yearly contracts with JFPL Potential Business Model Insights (cont.) • Scepticism is there for Cut Vegetables Reasons: Increased in the production cost Reduction in shelf life Unavailability of storage area for cut veggies ( cold storage), which will lead to multiple deliveries and ultimately lead to logistics cost Appearance / Discoloration / Texture Decay / Contamination Aroma and flavour Best 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 Entry Initially, 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 veggies Offer “Early Bird” discounts If procuring veggies from farmers, then we can start some “Farmer Benefit Schemes” Educating clients on handling/ using cut veggies • • • • • • Recommendations & Suggestions (Cont.) Scale up • Online order facility • FAM Tour of the plant to our prospective clients • Enter into long term contracts with the clients • Benefit schemes can be given to the clients who are entering into yearly contract with JFPL • Volume based incentive schemes Final Key Accounts S.No. 1 2 3 4 5 6 Client Fastrax Palki Caterers Par Maker PAN India Kwality Caterers G Vision Apollo Hospital, Jasola Professional Caterers Contact Person Dr. Ponsingh R. Mr. Anil Shukla Rahul Handa Rahul Massey Dipankar Das Deepak Arora Profile Sr. Food Technologist Owner Owner Chief Chef Purchase Manager Owner Converted In Pipeline Striked Off 7 Mr. Ankur Singh Purchase Officer 8 Mr. Vipul Paul Owner Thank You