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The Farm Platform Feasibility Study

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The Farm ‫املزرعة‬

FROM FARM TO DOORSTEP


The Farm
Supply Chain and Tech
Feasibility Analysis Presentation
Submitted To
Dr. Tarek Diab
Prepared By

1- Mahmoud Kamal
2- Mahmoud Samy
3- Ahmed Esmat
4- Ahmed Gamal
5- Abdel-Rahman Hesham
6- Sara Gamal
7- Laila Ashraf
01 Idea Sketch Pad

02 Industry and Market Feasibility

Table of 03 Service Feasibility

04 Financial Feasibility
Content 05 Business Model Canvas

06 Organization

07 Marketing Plan
Idea Assessment
How does the user use your
Idea Sketch Pad Name of this idea: The Farm, Connecting
consumers with Local Farmers
Who is the user or beneficiary? offering?
Who are the people Costumers will profile setup,
Involved in starting this venture? 1.Local farmers
2.Restaurants browse listed products, and
Founders/Entrepreneurs 3.Factories / Companies manage their orders.
Business Development Manager People Customer 4.NGOs Consumers will search, select,
Software Developer order and make payments. All
Marketing Manager users can track and feedback.
Operations Manager
Agricultural Expert P C Business Owners Potential number of buyers:
Procurement Managers 175 , with around 1500 orders
Agricultural industry and Supply Chain experience Who is the economic buyer or How many buyers are there?
local agricultural systems with In-depth VP decision maker?
Exp knowledge of farming CC
Business & Marketing Exp practices, crop cycles, O Value Why is the offering important to Why is the offering important to
App development Exp. and agricultural the user? the buyer?
Proposition
logistics, supply chain Exp. techniques.
• Local Farmers: expand their Healthy and Fresh Products
What relevant What specific customer base. Convenience and Time-saving
experience do they knowledge do they • Consumers: Access to Fresh Transparency and Trust
bring to the table? bring to the table? cost efficient local products,
can make informed choices
based on their preferences,
Core Offering dietary needs.
Do you have any core, differentiating Competency
What type of offering Name and describe it. Sketch help people visualize it
competences is envisioned?
The Farm, is a mobile application
1. Well developed, user-friendly, serves as a digital platform
Service
robust, and secure mobile bridging the gap between local
application. farmers and consumers, enabling
2. Supply Chain Management. direct transactions, and promoting
3. Collaboration and Partnerships. sustainable and healthy food
choices.
Industry Attractiveness
Technological Demographic:
• Egypt has a large and growing technology sector, with a • Egypt has a large and growing population, particularly in
particular focus on mobile technology and app urban areas, which could provide a significant customer
development. This means there is likely to be a strong pool base for the app's B2B sales.
of talent available for developing and supporting the app. • The country also has a large young population, particularly
• The widespread availability of mobile phones and internet in the tech-savvy urban centers , which may be more likely
access in Egypt means that there is a large potential user to use mobile apps for business purposes.
base for the app.

Sociocultural:
• Egypt has a long history of agriculture, and farming is an
Economic: important part of the country's culture and economy. As
• Egypt has a growing economy, with a focus on diversifying its such, there is likely to be a positive view of an app that
industries. Supporting local agriculture is one way to promote supports local farmers and promotes the use of locally-
economic growth and development in the country. sourced produce.
• The app could help to create more efficient agricultural supply • Egyptians are known for their hospitality and generosity,
chains, reducing waste and improving the overall economic which could translate into a willingness to support local
efficiency of the sector. farmers by purchasing their products through the app.

Legal:
Political:
• The Egyptian government has shown support for technology and • Egypt has a relatively stable legal system, which provides a
innovation, particularly in the wake of the COVID-19 pandemic. This secure environment for business operations.
could create opportunities for partnerships and support for the app. • The government has shown support for initiatives that
• The government has also shown support for initiatives that promote promote local agriculture and improve the efficiency of supply
local agriculture and improve the efficiency of supply chains, which chains, which could help to create a favourable regulatory
could create a positive political environment for the app environment for the app.
Five Forces Analysis
1. Threat of new entrants
The threat of new entrants to the market is low due to capital
investment and an established network of farmers and B2B
buyers. However, if the market shows growth potential,
established players may enter the market, potentially
Threat of new increasing competition.
entrants

low
2. Bargaining power of suppliers:

Threat of
01 02 power of
Is relatively high The app must offer competitive prices or
05. other benefits to maintain a positive relationship with its
substitutes suppliers suppliers, such as timely payment or logistical support, to
Competitive
ensure that farmers have other options to sell their products.
relatively low rivalry
moderate to
relatively
high high
03 04 3. Bargaining power of buyers:
power of buyers The bargaining power of B2B purchasers is moderate, so the
app must provide high-quality products and competitive
moderate pricing to attract and retain customers. It may also need to
offer additional services to differentiate itself from other B2B
suppliers.
Five Forces Analysis

4. Threat of substitutes:
Threat of new
entrants The threat of substitutes, in this case, alternatives to the
app's product offerings, is relatively low. The app's niche of
low providing goods from farmers to B2B buyers is unique, and
there are few substitutes for this service. However, if the
app's products become too expensive or of low quality,

Threat of
01 02 power of
buyers may look for other sources of supply.

substitutes 05. suppliers


Competitive
relatively low rivalry
moderate to
relatively
high high
5. Competitive rivalry:
03 04 The competitive rivalry in this sector is moderate to high, as
power of buyers there are likely several players in the market offering similar
services. The app must offer a unique value proposition, such
as competitive pricing or additional services, to differentiate
moderate itself from its competitors. The app may also need to invest in
marketing and customer service to attract and retain
customers.
Financial Analysis

Financial Analysis
Are Beneficiaries willing to acquire our service?

Yes, It is worth noting that both the buyer and seller have expressed willingness to
engage in the transaction.

Can we provide the service to customers at a profit?

Yes, as mentioned and discussed in a Financial Analysis section.

Service
Feasibility
Designed for: Designed by: Date: Version:

Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

1. One-Stop Platform: a 1. Account Management: Providing


1. App/Platform Development. dedicated account management 1. Wholesalers: Businesses that
centralized platform where
1. Local Vendors & Farmers: and customer support to assist require a wide range of
wholesalers they can find
Collaborating with vendors 2. Farmer Onboarding. wholesalers. products and supplies from
and source a variety of
& farmers to offer a different vendors and farmers.
products and supplies.
comprehensive product
3. Order Management. 2. Locally Sourced and Fresh 2. Farmer Relationships:
selection and reliable 2. HoReCa: Businesses that
Produce at competitive Establishing relationships
supply chain. require fresh, healthy produce
prices: Offering with farmers to ensure product
4. Quality Control. that is sourced locally.
consumers the opportunity availability and reliable supply for
2. Payment Processors: to access high-quality, wholesalers.
Partnering with payment locally sourced produce 3. Local Farmers: Farmers who
processors to facilitate Key Resources Channels want to connect with
with highly competitive
secure and convenient prices. consumers in their area and
transactions. 1. Resources required for sell their produce directly.
3. Streamlined Procurement: • Mobile App/Online Platform: The
Platform/Mobile App Dev.
Simplifying procurement primary channel through which
3. Transportation/Delivery & Maintenance. 4. Food Factories & Processors.
for wholesalers by offering farmers can post their available
Companies: to handle the 2. Establishing a Comprehensive a convenient way to produce, and consumers can
transportation and Farmer Database. discover, compare place an 5. Agricultural/Food Export
browse, purchase, and engage
distribution of ordered 3. Account Management & order. with the content. Companies
produce. Customer Support Team. 4. Higher Revenues &
4. Marketing Team. Consistent Demand for
Farmers.
Cost Structure Revenue Streams

1. Platform Development and Maintenance Costs: Expenses associated with


developing, updating, and maintaining the Online platform & app. 1. Margin Based Fee.

2. Warehousing: Collection, Classification, Storage & Packaging of the produce. 2. Advertising: Offering advertising opportunities for relevant businesses (e.g. Local
restaurants, Processed foods companies, Agricultural products...etc).
3. Marketing & Promotion: Costs related to marketing and promoting the app
to both farmers and consumers.
Marketing
Plan
1. Situational Analysis (SWOT, TOWS, PESTEL, Competitive Analysis & Market Analysis)

2. Marketing Objectives

3. Marketing Strategies

4. STP (Segmentation, Targeting & Positioning)

5. Marketing Mix (4Ps)


SWOT Analysis
 Strengths:
Strengths 1. Unique platform offering a wide range of products (Conv. & Organic) at a
1. Unique platform offering a wide range competitive price.
of produce (Conv & Organic) Weaknesses 2. Convenient and streamlined procurement process for wholesalers.
2. Convenient and streamlined
1. Limited brand awareness in 3. Strong vendor network ensuring reliable supply.
procurement process for wholesalers.
3. Strong vendor network ensuring the Egyptian market. 4. Quality control team for product categorization; which will assure
reliable supply. 2. Need to establish trust and consistently highest quality produce and brand.
4. Quality control team for credibility with wholesalers
product categorization. and vendors.
3. Potential challenges in  Weaknesses:
S 4.
onboarding and managing a
large number of vendors.
Reliance on technology
1.
2.
3.
Limited brand awareness in the Egyptian market.
Need to establish trust and credibility with wholesalers and vendors.
Potential challenges in onboarding and managing a large number of vendors.
W infrastructure for smooth
platform operations. 4. Reliance on technology infrastructure for smooth platform operations.

Opportunities
O  Opportunities:

T
1. Growing demand for efficient Threats 1. Growing demand for efficient B2B procurement platforms in Egypt.
B2B procurement platforms in 2. Increasing interest in locally sourced and fresh produce.
1. Intense competition from
Egypt. 3. Collaborations with industry associations or government initiatives supporting
existing B2B platforms or
2. Increasing interest in locally local agriculture and business growth.
traditional wholesale markets.
sourced and fresh produce. 4. Integration of value-added services such as analytics, supply chain management,
2. Economic factors or market
3. Collaborations with industry
associations or government
volatility affecting wholesalers' or financing options.
purchasing power.
initiatives supporting local
3. Regulatory and legal complexities
agriculture and business growth.
related to online transactions and  Threats:
4. Integration of value-added
services such as analytics, supply
logistics. 1. Intense competition from existing B2B platforms or traditional wholesale markets.
4. Potential resistance or reluctance 2. Economic factors or market volatility affecting wholesalers' purchasing power.
chain management, or financing
from wholesalers to adopt new 3. Regulatory and legal complexities related to online transactions and logistics.
options.
digital platforms.
4. Potential resistance or reluctance from wholesalers to adopt new digital
platforms.
100% PREMIUM FOOD
Strengths
Weaknesses
W
TOWS
1. Limited brand awareness in
1. Unique platform at comp. Price. the Egyptian market.
2. Convenient and streamlined 2. Need to establish trust and
procurement process. credibility with wholesalers

Analysis
3. Strong vendor network ensuring and vendors.
reliable supply. 3. Potential challenges in
4. Quality control team for product onboarding and managing a
categorization. large number of vendors.

S
4. Reliance on technology
infrastructure for smooth
platform operations.

SO WO
1.
Opportunities
O
Growing demand for efficient B2B
1. (S1&2-O1) promotional
campaign about the
convenience & ease of 1. (W1&2-O1&2) Digital media
procurement platforms in Egypt. awareness Camp. about the brand
use of platform.
2. Increasing interest in locally sourced and its value proposition
2. (s3&4-O2) promotional
and fresh produce.
campaign about the
3. Collaborations with industry
quality and consistency
associations or government initiatives.
of produce provided by
the platform

T 1.
Threats
Intense competition from
1.
ST
(S1&2-T1) dedicating part of budget
to compete with prices and show
WT
existing B2B platforms or differentiation by promotional
traditional wholesale markets. offers.
2. Economic factors or market 2. (S3-T3) Optimization of operation to
volatility affecting wholesalers' ensure ease of use for wholesalers
purchasing power. with incentives & offers.
3. Potential resistance or reluctance 3. (s4-T2) Offering wide range of high
from wholesalers to adopt new quality produce to adapt to
digital platforms. wholesalers' purchasing power.

100% PREMIUM FOOD


• Political Factors:
1. The recent Egyptian Government efforts in facilitating and supporting the
agricultural & SME's sectors.
2. The Continuous expansion in land reclamation projects by the Egyptian
government & their Supportive initiatives will greatly impact local
agriculture and entrepreneurship and thus, the market.

• Economic Factors:
1. Economic stability and growth influencing wholesalers' purchasing
power.
2. Inflation rates and exchange rates affecting pricing and profitability.
3. The deficit in food crops imports due to shortage in foreign currency
lead to increased demand on local crops and consequently, the need for

PESTEL
local fresh produce at reasonable prices.

• Social Factors:
Analysis 1.
2.
The great –yearly- population growth in Egypt.
Increasing consumer demand for fresh, locally sourced products.
3. Growing interest in supporting local farmers and businesses.
4. Shift towards healthier and sustainable food choices amongst a certain
segment in the Egyptian market.
• Technological Factors:
1. Improving IT Infrastructure in Egypt overtime; which will greatly help us
provide a suitable, stable & safe online services to our consumers.
2. Increased adoption of mobile devices and internet connectivity in the
Egyptian market.

• Environmental Factors:
1. Moderately stable weather conditions in Egypt (regarding business
operations).
2. Seasonal variations and weather conditions impacting product availability
and pricing.

PESTEL 3. Egyptian climate is suitable for most of fruits, vegetables & medicinal
herbs' production.

Analysis • Legal Factors:


1. Compliance with local laws and regulations regarding food storage &
safety, data protection, and online transactions.
PESTEL Analysis Summary
Economic Factors
1. Economic stability and growth
2. Inflation rates and exchange rates a

Political Factors Social Factors

E 1. The great population growth


1. The recent Egyptian Government efforts

P S
2. The Continuous expansion in land 2. Increasing consumer demand
reclamation projects 3. Shift towards healthier & sustainable
food.

Technological Factors
1. Improving IT Infrastructure in Egypt
overtime.
T E L Legislative Factors
1. Compliance with local laws and
regulations.
2. Increased adoption of mobile
devices and internet connectivity

Environmental Factors
1. Moderately stable weather conditions.
2. Seasonal Variations on produce availability.
1. Hijacking 8% market share in the 1st year

Marketing 2. Increasing monthly revenue per


customer to reach 350k EGP by the
Objectives beginning of Q4 of the 1st year
• Market Penetration Hijacking 8% market share in
the 1st year by:
1. Maximizing Customer value by increasing customer profitability through
having low cost to serve which by extension will increase order frequency
2. Building credibility through existing partners’ testimonials on website
3. Improving loyalty of our acquired customers by having tailored loyalty
programs based on additional back margins and more benefits

• Differentiation
1. Differentiation by Product through providing a wide range of products at
several quality levels including organic, premium etc.

Marketing 2. Differentiation by Price by providing quite the range of products and


quality at competitive prices

Strategies
STP
: Segmentation Positioning:
The first step in the STP model is to identify the target market segments. In this The final step in the STP model is to determine how to position the app in the minds
case, the market segments could be: of the target segments. In this case, the app could be positioned as:

1. Convenient: The app would be positioned as a convenient way for


1. Farmers: This segment would include farmers who grow crops and farmers to sell their produce and for buyers to purchase high-quality
are looking for a reliable and easy way to sell their produce. goods.

2. Wholesale Buyers: This segment would include businesses that 2. Reliable: The app would be positioned as a reliable source of
purchase goods in bulk to sell to retailers or consumers. high-quality produce that buyers can trust.

3. Retailers: This segment would include businesses that purchase goods 3. Affordable: The app would be positioned as a cost-effective
to sell directly to consumers. way for retailers to purchase high-quality produce that they can
sell to their customers at competitive prices.

: Targeting
Once the market segments have been identified, the next step is to select the target
segments. In this case, the target segments would be :

2. Wholesale Buyers: The app would target wholesale buyers by


1. Farmers: The app would target farmers by providing them with an
easy and convenient way to sell their produce directly to wholesale
providing them with a reliable source of high-quality produce at
buyers and retailers. competitive prices.

3. Retailers: The app would target retailers by providing them with a wide
variety of high-quality produce at competitive prices that they can sell to
their customers.
Marketing Mix

Price Product Place Promotion


• Subscription-based Pricing:
This strategy will involve charging consumers a recurring fee for access to the
farm application benefiting faster deliveries, and subscriptions only prices .

Bundling and Customization:


This strategy involves bundling and customization the consumer requirements.
Ex.: Volume discounts, additional services, packaging, multi destinations, or
consulting.
It allows customers to choose a package that aligns with their specific needs and
provides added value.

Pricing Value-based Pricing:


Strategies Value-based pricing involves setting the price based on the value and benefits
that THE FARM application delivers to customers. Ex: healthy/Organic crops,
dietary restrictions, recipe suggestions, and dietary guidelines or meal planning
based on the consumer's preferences.
Customer Needs Assessment:
Conducting thorough market research and understanding the specific
pain points and needs of your target customers is crucial for
developing a successful B2B product strategy. By addressing these
needs, you can provide tangible value and differentiate your product
from competitors.

Unique Value Proposition:


Product The farm management software will provide advanced analytics and
predictive modeling capabilities. With AI, and machine learning
Strategies algorithms, it can provide farmers , company with accurate forecasts,
helping to make informed decisions about crop planning, resource
allocation, and inventory planning.
Geographic Focus:
THE FARM will initially Identify and target
specific geographic regions where farms, and B2B
customers are concentrated. This will allow more
focused and efficient distribution.

Distribution Channels:
Place
Strategies The Farm will start with direct distribution strategy
to insure the premium quality and fastest
deliveries.
For remote or bulky orders, partnerships with
qualified third parties companies will take place
Direct Sales and Personal Selling:
Build a dedicated sales team that actively reaches out to farmers
and agricultural businesses. Attend industry conferences and
meetings where you can present your farm application, highlight
its features and benefits, and engage in one-on-one discussions
with potential customers. Customize your sales approach based
on the specific requirements of each farm and demonstrate how
your app can optimize their processes, improve efficiency, and
increase yields.

Public Relations and Media Coverage:


Promotion
Strategies Participate with agricultural publications, and industry
influencers, to secure media coverage.
Issue press releases highlighting major updates, partnerships, or
successful case studies. Collaborate with industry experts to
contribute articles or interviews that discuss the future of farming
and the role of technology.
Case Studies and Testimonials:

Case studies and testimonials showcasing successful


implementations of your farm application. Highlight how THE
FARM app helped farmers , and customers to overcome
challenges, reduce costs. These case studies and testimonials will
be used in the marketing materials, website, and presentations to
demonstrate the value and effectiveness of THE FARM
application.

Promotion
Strategies
E-CommerceW
The best search engine strategy for a mobile app and website that sells fruits and vegetables from farms to business customers like restaurants and
factories would involve a combination of both on-page and off-page optimization techniques. Here are some strategies to consider:
2.Mobile Optimization:
Optimize our website and app for
1.Keyword Research:
mobile devices, as most customers
Research and identify the most 3.Local SEO:
will likely access our platform from
relevant and high-volume keywords Focus on local SEO strategies to target
their smartphones or tablets. Ensure
related to our farm’s concept, such customers in our geographic area. Create a
that our platform is responsive,
as "fresh produce delivery," "farm-to- Google My Business listing, optimize it with
loads quickly, and has a user-
table," "local fruits and vegetables," relevant keywords and images, and
friendly interface that is easy to
etc. Using these keywords in our encourage customers to leave reviews. Also,
navigate.
website and app content, including include our business address and contact
product descriptions, titles, tags, and information on our website and app.
meta descriptions.

4.Content Marketing: 6. Paid Advertising:


Create high-quality and Consider using paid advertising
informative content related to our 5. Link Building:
platforms, such as Google Ads,
farm, such as blog posts, Build backlinks to our website and
Facebook Ads, and LinkedIn Ads, to
infographics, and videos. Sharing app from reputable and relevant
target our ideal customers and drive
this content on social media and sources, such as local business
traffic to our website and app.
other relevant platforms to attract directories, industry blogs, and online
backlinks and drive traffic to our publications. This will help increase
website and app. our domain authority and improve our
search engine rankings.

By implementing these search engine optimization strategies, we can admit increasing our
visibility, attract more traffic, and ultimately generate more sales for our business.
Location

Choosing a Warehouse Location for


Delivery in Egypt:

-Accessibility to transportation routes


-Proximity to farms
- Security measures
- Infrastructure availability

Best layout for the warehouses


Location

Ideal Location for Warehouse:


-Outskirts of Cairo or Alexandria
- Well-developed transportation routes
- Surrounded by farmland
- Established security systems
- Reliable infrastructure
- Ample space for large, efficient warehouses
Criteria Weight Score Outskirts of cairo Outskirts of
Alexandria
Quality of labor 8% 4 0.32 0.32
Wage rates 8% 3 0.24 0.24
Union activity 8% 2 0.16 0.16
Property cost 8% 4 0.32 0.32
Utility cost 8% 3 0.24 0.24
Transportation cost 8% 5 0.6 0.6

Tax burden 8% 3 0.24 0.24


Educational/training 4% 4 0.16 0.16
assistance

Start-up incentives 4% 2 0.08 0.08

Raw material 20% 5 1 1


availability

Quality of life 4% 4 0.16 0.16


Others 8% 3 0.24 0.24
3.96 3.96
Thank You

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