Case Study - 15fen

Case Study – 15Fen
Rao Ehtisam Ali

Shams Muhammad
Muhammad Ayaz
Muhammad Afzaal
Alladin Laraib
Three Tiers of Non-Customers
 What are the three non-customer tiers and what are their preferences?
1- Soon-to-be Non Customers are E-retailers, Gift companies, Womai, SF Best, Miao, Tootoo
Strategy : 15Fen adopted a strategy of door-to-door delivery and easy for customers to pick up
orders at nearby Offline market in the neighbourhood.
2- Refusing non-customers are Customers of Retailers, wet markets,

Strategy : 15Fen opened offline markets near wet markets and started supplying fresh produce
such as eggs, fruit and meat.
3- Unexplored non customers are Restaurants, food chains, corporate canteens.

Strategy : 15Fen started following an strategy of supplying fresh vegetables to corporate canteens
thus taping into unexplored industry.
Buyer Utility Matrix – 15 FEN
Purchase Deliver Use Supplement Maintenance Disposal
Logistic At first, growers supply Offline stores handle the last

good to big warehouse then mile logistic.
packed them for stores and
ready online orders.
Convenience Customers can order online One house time or Order through we chat Location of offline store at
using mobile phone. Pick up from nearest Offline nearest residential area.
stores for customers.
Financial Pre-paid Membership was Crowd Funding Strategy/Share

present for regular members. financing model
Procurement Contract base or forecast

based farming with vendors.
Location Offline stores near to high Offline store are near to wet
density residential area so that market
stores served the last mile
delivery.
Standard From sourcing to delivery SGS certified procurement in

15feb recommended logistic order to gain consumer
Quality was use by vendors in order to confidence and ensure quality.
ensure the quality of goods.
Purposed Strategy for Purpose Brand
 The O2O Experience store could become a purpose brand because with O2O stores he started offering his
customers to make a choice between an online delivery or to pick up from the nearest 15Fen
neighborhood store because Chinese people are obsessed with buying fresh food at markets where they
could see, smell and touch the freshness of the produce hence catering to both types of customer needs.
 People residing in high density residential buildings who were unable to shop fresh vegetables from wet
markets had an easy access to 15fen’s offline store nearby their homes to purchase fresh vegetables.
 Furthermore, the optimization of supply chain through cold chain warehousing & other strategies by He
made his product & services affordable to consumers.
 Finally, the convenience of sorted, packed & and safe food was also ensured by He through his FANCUN
warehouse
 Purpose brand means finding what jobs customer want to get done then develop products or services that
people can hire to perform those jobs. Henry He was continuously busy in trial and developing &
enhancing products that were not meeting the people needs. He’s initial business models were unable to
create value thus not attracting customers. The actual need or job to be done was to have a high quality &
fresh vegetables or grocery that is easily accessible along with cheap prices
Blue Ocean For Fresh Food Market
 Eliminate:
1. Eliminate ownership model to minimize upfront financial commitment and use collaborative farming model.
2. Eliminate the reliance on physical stores for retailing vegetables to end consumers.
3. Eliminate the single-category (green vegetables) product portfolio in favor of a more diverse offering.
4. Direct sourcing – Farm To Fork Concept - Unlike the traditional distribution model that went through
multiple layers of distributors before reaching the market.
 Reduce:
1. Reduce the complexity and cost associated with the gift card model for corporate customers
2. Reduce upfront financial commitment by rejecting the ownership model of farming.
3. O2O Model serve to choose between one-hour delivery or pick-up at the nearby neighborhood store
4. Offline stores are located near a wet market taking advantage of high traffic and low rental
Blue Ocean For Fresh Food Market
 Raise:
1. Raise the quality assurance standards by procuring testing and certification services from industry-recognized
institutions.
2. Raise customer experience by integrating experiential farming with the online stores
3. To build end consumer trust and confidence - procured a certification from an industry recognized institution SGS for the
vegetables.
4. Built an offline store network around high-density residential districts to fulfill the last mile of home delivery and reduce
cold chain operation
 Reduce:
1. Create an online-to-offline (O2O) model with neighborhood stores and mobile ordering for faster and more convenient
access to fresh produce.
2. Create a subscription model for regular deliveries of seasonal vegetables to direct consumers, providing a convenient and
reliable source of fresh produce.
3. Contract & future based farming allows to keep supply balance through geographically dispersed growers.
4. Prepaid store specific membership system whereby customer pay in advance & then are entitled to have share in profit.
5. Cold chain logistics in e-commerce helps to maintain smooth supply chain operations & ensuring timely product delivery.
Thank You

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Case Study – 15Fen

Rao Ehtisam Ali

2- Refusing non-customers are Customers of Retailers, wet markets,

3- Unexplored non customers are Restaurants, food chains, corporate canteens.

Logistic At first, growers supply Offline stores handle the last

Financial Pre-paid Membership was Crowd Funding Strategy/Share

Procurement Contract base or forecast

Standard From sourcing to delivery SGS certified procurement in

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