8/9/2019 Aarogya

1/16

rogya Foods

Health mein, no compromise!

8/9/2019 Aarogya

2/16

Market Analysis An upcoming segment in retail

Indicative of the rising health-consciousness

Pegged at Rs. 5.6 billion in 2008 Global market for organically produced foods is

$26 billion, estimated to increase to $102 billionby 2020

Global growth rate of 20-30% annually

8/9/2019 Aarogya

3/16

Continued Indian standards of production at par withCODEX and IFOAM

Certification is mandatory for exports

Takes 3 years for a farm in conversion to becertified as organic and costs are hefty

Absence of organized marketing and retailing

Currently most of the organic produce sold toNGOs, co-operatives or unorganized players

8/9/2019 Aarogya

4/16

Deterrents of the industry High prices (20-30% higher than inorganic

commodities)

Inadequate retail presence,

Absence of certified brands for domestic consumer

Incomplete range

8/9/2019 Aarogya

5/16

Growth Drivers Higher awareness

Concern for environment

More visibility therefore demand

Change in perception ( elitist to good for

health)

8/9/2019 Aarogya

6/16

Future Outlook Lowering of prices due to increase in demand

Economies of scale can be achieved

Increase in output (completion of conversion

process)

Boost in the form of subsidies

Higher retail platform

India to become major supplier due to

availability of cheap labour

8/9/2019 Aarogya

7/16

Customer Insights

8/9/2019 Aarogya

8/16

Target SEC A, B

Housewives, working women, professionals

Responsible for grocery and food related

purchases

Sample size : 35

Location: Mumbai

8/9/2019 Aarogya

9/16

Demand and Awareness

Aware (71.4%)

Unaware(28.57%)

0 5 10 15 20

Frequent_purchase (14.2%)

Sometimes_purchase (51.4%)

Never_purchased (34.28%)

Series1

High awareness of

organic food

Not translated to

purchase because of

unawareness of sellers

Respondents showed

interest in converting to

organic food for most

frequently used items

8/9/2019 Aarogya

10/16

Currently what are the buying options?

Problems

Organic food with local vendors has no quality proof

No guarantee of availability

Inconvenient to go to modern retail stores only for

organic food (as other grocery purchases done locally) One retailer does not provide everything

1. Local vegetable

vendors

2. Modern Retail Stores3. Local retailers in few

areas

8/9/2019 Aarogya

11/16

Readiness to pay a premium

Yes (80%)

No (20%)

Do not mind to spend

, since they do not want to

compromise on health

Skeptical about selling at

higher prices in the name of

organic

Would not convert all food

items to organic

8/9/2019 Aarogya

12/16

Is a online model acceptable? 34% of the respondents were frequent internet users

28.5% said they do not know how to operate the internet

68.5% ordered their monthly stock of food grains from the local vendorover a phone

80% they usually do not require to touch and feel the food grains orderedfrom regular kiranawalas

Concerns about a online/telephone model for fresh fruits and vegetables Quality consistency

Return policy

8/9/2019 Aarogya

13/16

Pilot Run About Aarogya Foods

Certified, complete range, organic food @ your

doorstep Online and Telephone services

Exchange and return policy

COD, (Prepaid Cards, Coupons,Online payment)

8/9/2019 Aarogya

14/16

Execution

Warehouse

Not Needed for a Pilot Run

Supplier

Eco Farms, Andheri

Conscious Foods, Lower Parel

Location

Housing society at Mahalaxmi

8/9/2019 Aarogya

15/16

Execution

Eventually 3 warehouses to be setup atMahim, Wadala(E), Borivali (E)

Transport

3 wheeler Tempos, 2 Wheelers with Carry Case

Free Deliver for order above Rs 500/- otherwise

added delivery charges

8/9/2019 Aarogya

16/16

Marketing Presentation and Educative material

Product catalogues, Pamphlets

Aarogya Kiosk setup as a touch point for 3

days

Sampling (e.g. Fruits, Spices, Teas)

Customer survey to create a database

Proactive follow-up