FrescitoOpportunity Analysis Project

Venture Lab Stanford University Technological Entrepreneurship Fall 2012

Creativo team

Original Idea Fruitalia• We deliver convenience of shopping.

• On-line shopping easy and non tiring. Variety of certified organic products. Special products and prices.

• We are trying to solve the need of not going to the market to buy fresh products or to specific and sometimes different organic shops but chose them online and delivered at home or at the business. Grocery and fresh-organic products shopping becomes easy and especially WITHOUT MIDDLEMEN.

• We are also satisfying the emerging need of people's to feel connected with nature and the first

sector production, to involve with production and cultivations and support producers.

• The need has also political and socioeconomic roots- Boycott of big chain hyper markets and middlemen hyper profits

• Also need of economy and less gas consumed

• In a few words: "Make it easy to find organic and natural products at low prices, avoiding middlemen. For consumers seeking a healthier life"

Testing our value proposition• E-surveys conducted in Argentina, Greece,

Croatia and Italy showed:• Consumers spend less than 1 hr at the super

market or grocery for buying fruit & vegetables• Mostly buy electronics , tickets or books on e-

shops• Most  believe middlemen raise goods prices• Interested in recipes and nutrition advice• Healthness / fitness desire • Intention to buy from e-shop: 1 out of 2    

Stated problems

• “I agree with the idea of buying fruits and vegetables direct from the producers but not  online.”

• “Nice idea but not online. I would never buy fruits or vegetables online.”

•  “It would be a good start in Greece - I assume that the consumers will have benefits (lower price, direct delivery from production to consumption)”

• “Nice idea, but real situations like this are not trustworthy, because you do not have the opportunity to see, touch, taste”

We also tried to take more feedback on a targeted audience like web site with recipes fans but didn’t have more results-> maybe lack of interest???

InterviewWith Paulo Alexandre BentoCavaco from Portugal , general manager of Horticilha, Agro

Indústria, S.A.

Company profile : produce organic tomatoes in Portugal and sell them in Portugal, UK and Deuchland

Insights:

Bad points for us:

1. North Europe is more concerned about organic food than south Europe

2. There are particular spots in big supermarket for organic food

3. There are lots of store specialized in organic food and are growing

Good point for us:

4. The market is growing

5. New business model: In farmers areas people contact to others and prepare baskets with different

6. fruits and vegetables. For example: tomatoes from one, apples from other, and etc.. and they sell them door to door

7. Transportation problem: if the distance is long the product must be harvested earlier and lose of flavor and colours (properties)

Time for consideration

• We gathered the existing and potential problems

• We keep in mind 3 important factors:

1. Not be data informed BUT data-driven

2. Cheapest cost to the firm in time and money

3. Art of entrepreneurship is then knowing what to change

Transformed idea Frescito• Web site and mobile application based on

a platform that allows you to build your cooking and shopping profile

• Gives you recipes • Alerts you on your shopping basket needs

in fruit and vegetables• Suggests you local organic shops or super

markets with a bio-food department• Gives you the possibility to order on-line

from our channel of organic farmers

New value proposition• We kept the original idea of organic, it is good and

growing• We kept the convenience factor• Changed the convenience offered: save time from writing

down lists and losing time at the market• Keep their need to see, touch, feel fruit and vegetables• Satisfy interest in nutrition and recipes• Give information about all organic channels• Give our initial idea time to evolve through education and

trial

How it works• User goes into the mobile application and

creates a profile• He/she has his/her weekly agenda of

recipes intending to cook• On a specific day like Saturday he/she

takes an alert on the fruit & vegetables he/she needs to refill/ buy

• A suggested list of organic food channels appears

Revenues• The user pays 2$ to download the mob

app• The organic shops, super-markets and

producers-farmers pay a monthly fee to appear on our suggested lists

• Core revenue comes from other web advertisement for this targeted audience

Market size for recipes fans and organic food lovers is really big!

Estimating Market Size• Globally in 2006 sales reached 30.9 billions• In Europe in 2005 sales: 13-14 billions• Growth rates 20%- 30% in the sector• In 2009 in Greece in a crisis environment the money

spent on organic food decreased BUT the market share developed (more consumers)

• Up to 10% of Greek internet users are interested in recipes on a weekly basis (500.000)

• Super markets tend to cut budget on traditional advertisement and focus on hard-selling, opportunity to invest in lower budgets internet campaigns