PRESIDENCY COLLEGE

5-year business plan

Gupta Group

456 7th Street farmstead@guptagroup.in

Ph- 9148484522
Jalhalli East, Bangalore

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TEAM MEMBERS

- ROHAN NARAYAN 21A01131

- PRIYANSHU 21A01121
- PUSHKAR MISHRA 21A01122
- SAGAR VERMA 21A01137
- RAJAVEL 21A01124

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Table of contents

I. Executive summary............................................................................................. 3
Highlights. ............................................................................................................................................................. 3
Objectives. ............................................................................................................................................................ 4
Mission statement. ............................................................................................................................................... 4
Key to success. ..................................................................................................................................................... 4
II. Description of business. ...................................................................................... 4
Company ownership/legal entity. .............................................................. Error! Bookmark not defined.
Location. ............................................................................................................................................................... 4
Interior. .......................................................................................................... Error! Bookmark not defined.
Hours of operation. ............................................................................................................................................. 5
Products and services. ......................................................................................................................................... 5
Suppliers. ............................................................................................................................................................... 6
Service. .................................................................................................................................................................. 6
Manufacturing. ..................................................................................................................................................... 7
Management. ........................................................................................................................................................ 8
Financial management. ....................................................................................................................................... 9
Start-up/acquisition summary. ................................................................... Error! Bookmark not defined.
III. Marketing. ..........................................................................................................11
Market analysis. .................................................................................................................................................. 11
Market segmentation. ........................................................................................................................................ 13
Competition. ....................................................................................................................................................... 14
Pricing.................................................................................................................................................................. 16
Advertising and promotion. ............................................................................................................................. 16
Strategy and implementation. .......................................................................................................................... 18

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Executive summary.

Farmstead Foods is a new startup company that will sell high-quality, raw organic food products directly
to consumers in India. Our mission is to provide consumers with access to the freshest, most nutrient-dense
organic foods possible, while supporting sustainable farming practices and strengthening local food
systems in India.

The founders of Farmstead Foods have extensive experience in organic agriculture, food processing, and
direct-to-consumer sales both in India and globally. We plan to source our produce, dairy, and other
products from a network of small, organic family farms within a 300-kilometer radius of our production
facility located in Bangalore. All of our products will be completely unprocessed and sold in their natural
state, preserving the maximum nutritional value.

We will sell our products through an online store with direct delivery to customers' homes, as well as at
local farmers markets and through partnerships with natural food retailers in major Indian cities. Our target
customers are health-conscious urban consumers in India who are willing to pay a premium for the
highest quality organic foods.

Farmstead Foods is seeking ₹5 crore in start-up funding to cover the costs of facility establishment,
equipment, inventory, marketing, and working capital during our first year of operations. With this
investment, we project that the company will reach profitability by the end of year two and generate
over ₹30 crore in revenue by the end of year five.

Highlights.

The Values are in crores, and they are projections made after analyzing similar businesses with real time
market conditions.

25

20

15

10

0
2024 2025 2026 2027

Sales Net Profit Expenses

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Objectives.

Bringing the Purest Organic Goodness from Farm to Table

Mission statement.

Revolutionizing Nutrition, Empowering Local Communities

Key to success.

Seamless farm-to-fork supply chain, exceptional customer experience, and powerful brand identity as a
trusted organic foods authority. Operational efficiency, disciplined expense management, and a strong
founding team with industry expertise. Leveraging these pillars will enable Farmstead Foods to dominate
India's booming organic food market and deliver sustainable, profitable growth

Description of business.

Farmstead Foods has cultivated a rock-solid network of local organic farms, forging direct partnerships
that guarantee the freshest, highest-quality produce and dairy. Prioritizing the customer experience,
they've built a seamless, user-friendly e-commerce platform that caters to the evolving needs of health-
conscious consumers. The Farmstead brand has positioned itself as a trusted authority in the organic, raw
foods movement, driving awareness and establishing thought leadership. Operational efficiency and
prudent expense management keep costs low, while the seasoned founding team and advisory board
provide the expertise to execute the plan flawlessly. Leveraging these core strengths, Farmstead Foods is
primed to dominate India's booming organic food market and deliver exceptional, sustainable growth.

Location.

Here's a summary of Farmstead Foods' choice of location in Jalahalli East, Bangalore, in 8 lines:

Farmstead Foods has set up its production and distribution facility in Jalahalli East, Bangalore, a strategic
decision driven by several key factors.

Proximity to organic farming hubs in nearby districts like Tumkur, Kolar, and Chikkaballapur allows for
efficient sourcing of the freshest produce and dairy from our network of local suppliers.

Bangalore's thriving talent pool and world-class infrastructure, including an international airport and
extensive road networks, provide Farmstead Foods with access to skilled professionals and enable efficient
nationwide distribution.

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The facility's location in the heart of Bangalore's affluent residential neighbourhoods puts us in close
proximity to our target market of health-conscious, urban consumers.

Karnataka's progressive policies and incentives for organic food enterprises create a favourable operating
environment for Farmstead Foods to thrive.

By establishing our base in Jalahalli East, Farmstead Foods has secured a strategic foothold that seamlessly
connects our local supply chain to the rapidly growing demand for premium, nutrient-dense foods.

This location serves as the optimal launchpad for our ambitious expansion plans across India, allowing us
to efficiently service customers while leveraging the region's inherent advantages.

Jalahalli East's multifaceted benefits make it the ideal choice for Farmstead Foods' operational
headquarters as we revolutionize the organic food landscape in the country.

FARMSTEAD FOODS. 5

Hours of operation.

Farmstead Foods' production facility operates 24 hours a day, 7 days a week, ensuring the continuous
processing and distribution of our fresh, organic products. Our e-commerce platform is accessible to
customers around the clock, allowing them to place orders at their convenience. To provide prompt
delivery, our logistics and customer support teams are available during extended business hours, from 7
AM to 10 PM, 7 days a week.

Products and services.

Here's a detailed overview of Farmstead Foods' products and services:

Products: Farmstead Foods offers a comprehensive range of high-quality, raw and organic food
products, catering to the diverse dietary needs and preferences of our customers. Our product portfolio
includes:

Produce: A rotating selection of organic fruits and vegetables sourced from our network of local farms,
including leafy greens, berries, tropical fruits, root vegetables, and more. All produce is sold in its raw,
unprocessed state to preserve maximum nutritional value.

Dairy: Organic raw milk, cheese, yogurt, and other dairy products from small, local dairy farms. Our dairy
items are free from hormones, antibiotics, and other additives.

Meat and Seafood: Pasture-raised, organic chicken, mutton, and a variety of sustainably sourced
seafood. All meat is processed using the exclusive Jhatka method, which is considered more humane
and results in a cleaner, fresher taste.

Pantry Items: Organic nuts, seeds, honey, and other minimally processed food staples.

Services: In addition to our comprehensive product range, Farmstead Foods also offers the following
services:

Online Ordering and Delivery: Customers can conveniently browse and purchase our products through
our user-friendly e-commerce platform, with direct home delivery across major cities in India.

Exclusive Butcher Shop: At select retail locations, we operate specialized Jhatka-style butcher shops,
providing customers with a premium in-person shopping experience for our high-quality organic meats.

Subscription Boxes: Customers can opt for customized subscription boxes, ensuring a steady supply of
their favourite Farmstead Foods products delivered to their doorstep on a regular basis.

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Catering and Bulk Orders: Farmstead Foods caters to the needs of restaurants, event organizers, and
corporate clients by offering bulk orders and specialized catering services for our raw, organic products.

By offering this diverse portfolio of fresh, nutrient-dense products and complementary services, Farmstead
Foods is positioning itself as the premier destination for health-conscious consumers seeking the finest
organic, raw foods in India.

Suppliers.

Robust Supply Chain Ecosystem

At the heart of Farmstead Foods' operations is a meticulously curated network of over 500 small, certified
organic farms and producers located within a 300-kilometer radius of our state-of-the-art facility in
Bangalore. By forging direct relationships with these local suppliers, we ensure unparalleled freshness,
quality, and traceability for every item in our product portfolio.

Our supplier base is predominantly composed of family-run operations in the rural regions of Karnataka,
including districts such as Tumkur, Kolar, and Chikkaballapur. These small-scale producers utilize
sustainable, regenerative farming practices that prioritize soil health, biodiversity, and animal welfare.

Through our collaborative partnerships, Farmstead Foods provides comprehensive support to help these
local suppliers optimize their operations and achieve organic certification. This includes access to
agricultural inputs, technical guidance, and financial assistance to enhance productivity and quality
standards. In return, we benefit from their deep expertise in cultivating the most nutrient-dense fruits,
vegetables, dairy, and specialty meats tailored to our exacting specifications.

To complement our organic farm network, Farmstead Foods also sources high-quality seafood from
responsible fishermen who employ ethical, sustainable catch methods. Our poultry items are procured
from farms that utilize the more humane Jhatka slaughtering technique, ensuring a cleaner, fresher taste.

By maintaining these direct, transparent relationships with our suppliers, Farmstead Foods can guarantee
the provenance and traceability of every product we offer. This unprecedented level of visibility and
control over our supply chain is a key differentiator that builds unwavering trust with our health-conscious
customers.

As we continue to expand our operations nationwide, Farmstead Foods remains steadfastly committed
to strengthening our partnerships with rural producers in Karnataka. This not only secures a consistent
supply of the freshest, most nutrient-dense raw materials, but also empowers local communities and
contributes to the development of a more equitable, sustainable food system in India.

Service.

Unparalleled Customer Experience

At Farmstead Foods, we are committed to providing our customers with an unmatched shopping
experience that goes beyond just delivering high-quality organic products. Our comprehensive suite of
services is designed to cater to the evolving needs and preferences of health-conscious consumers,
setting us apart as the premier destination for raw, nutritious foods in India.

Convenient Online Ordering and Delivery Farmstead Foods' user-friendly e-commerce platform allows
customers to browse and purchase our entire product range with the click of a button. Leveraging our
sophisticated cold chain logistics, we ensure the seamless, temperature-controlled delivery of fresh, farm-
to-fork goodness directly to doorsteps across India's major metropolitan areas.

Exclusive Farmstead Meat Shops For customers who prefer an immersive, in-person shopping experience,
Farmstead Foods operates a network of premium Jhatka-style butcher shops. These specialized retail

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outlets offer a curated selection of our organic meats, seafood, and complementary products, along
with expert guidance from our trained meat specialists.

Customized Subscription Boxes Catering to the needs of our health-conscious consumers, Farmstead
Foods offers personalized subscription box services. Customers can choose from a variety of curated
plans tailored to their dietary preferences, ensuring a steady supply of their favourite raw, organic
products delivered on a recurring basis.

Corporate Catering and Bulk Orders Our dedicated B2B team caters to the specialized requirements of
restaurants, event organizers, and corporate clients. We work closely with these customers to develop
customized menus and sourcing solutions featuring our premium organic ingredients, ensuring a seamless
farm-to-table experience.

Unparalleled Traceability and Transparency Underpinning all of our services is Farmstead Foods'
unwavering commitment to transparency and traceability. By maintaining direct relationships with our
network of over 500 small, certified organic producers, we can guarantee the provenance and quality of
every item that reaches our customers' plates.

This comprehensive suite of services, combined with our laser-sharp focus on organic integrity, freshness,
and sustainability, positions Farmstead Foods as the go-to destination for health-conscious consumers
seeking the freshest, most nutrient-dense raw foods in India.

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Manufacturing.

Innovative Food Processing Techniques:

• Farmstead Foods has developed proprietary food processing techniques that help retain the
freshness, nutrition, and flavour of their products.

• They use advanced chilling, flash-freezing, and modified atmosphere packaging methods to
lock in the natural goodness of the ingredients.

• The company has also pioneered specialized cutting and portioning techniques to offer unique
product options as per customer preferences.

Hygienic Processing Facilities:

• Farmstead's state-of-the-art processing facilities are designed with the highest standards of
hygiene and sanitation.

• The facilities feature advanced air filtration systems, UV-C light sanitization, and strict protocols
for employee hygiene.

• Regular third-party audits and certifications ensure the facilities meet global food safety
standards.

Blockchain-enabled Traceability:

• Farmstead has implemented blockchain technology to bring complete transparency and

traceability to its supply chain.

• Each product can be traced back to the farm or producer of origin, providing customers with
information on the source and journey of their groceries.

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• This helps build trust and confidence in the quality and freshness of Farmstead's products.

Sustainable Sourcing Practices:

• Farmstead works closely with farmers, producers, and suppliers to promote sustainable and
ethical production practices.

• The company provides training and support to help its partners adopt eco-friendly methods and
ensure ethical treatment of animals/resources.

• This not only helps maintain high quality standards but also contributes to the long-term
sustainability of the food industry.

Cold Chain Innovation:

• Farmstead has invested heavily in developing a state-of-the-art cold chain logistics network
across the country.

• The company uses specialized refrigerated trucks, advanced temperature monitoring systems,
and real-time tracking to ensure seamless cold chain management.

• This helps Farmstead maintain the freshness and quality of its perishable grocery products during
transportation and delivery.

These unique manufacturing and supply chain methods have been instrumental in Farmstead Foods'
success in the online grocery delivery market, setting it apart from competitors and building trust with
customers.

Management.

Here's an overview of the management and unique aspects of the business plan of Farmstead Foods, a
leading online grocery delivery company:

Management Team:

• Farmstead Foods was co-founded by experienced entrepreneurs with deep expertise in the
food and e-commerce industries.

• The co-founders have assembled a highly skilled management team with diverse backgrounds,
including veterans from companies like Reliance Retail, BigBasket, Amazon, and Hindustan
Unilever.

• The leadership team has successfully scaled Farmstead's operations and driven innovation
across the business.

Unique Business Model:

• Farmstead follows a vertically integrated business model, controlling the entire value chain from
sourcing to processing to delivery.

• This allows the company to maintain strict quality control, ensure freshness, and optimize costs
and efficiency.

• Farmstead has pioneered the concept of "grocery as a service" in India, offering a wide range
of fresh, high-quality, and value-added food and household products.

• The company's focus on providing a premium customer experience through quality,

convenience, and transparency sets it apart from traditional grocery retailers.

Technology-driven Operations:

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• Farmstead has heavily invested in building robust technology platforms and systems to drive
operational efficiency and customer experience.

• The company uses advanced demand forecasting, inventory management, and logistics
optimization tools to minimize wastage and ensure timely delivery.

• Farmstead has also developed proprietary mobile apps and web platforms that offer a
seamless and personalized ordering experience for customers.

• The use of technologies like blockchain and IoT enables end-to-end traceability and quality
assurance in the supply chain.

Data-driven Decision Making:

• Farmstead relies on extensive data analytics and customer insights to drive its business decisions.

• The company closely tracks and analyses customer behaviour, preferences, and feedback to
continuously improve its product offerings and service delivery.

• Farmstead uses advanced data modelling and predictive analytics to optimize inventory,
pricing, and marketing strategies.

• This data-driven approach allows the company to be highly responsive to evolving market
trends and customer needs.

Focus on Sustainability:

• Farmstead is committed to promoting sustainable and ethical practices across its supply chain.

• The company works closely with farmers, producers, and suppliers to adopt eco-friendly
production methods and ensure ethical treatment of resources.

• Farmstead has also implemented measures to minimize waste, reduce carbon footprint, and
promote circular economy principles in its operations.

• This focus on sustainability aligns with the growing consumer demand for ethically sourced and
environmentally conscious food products.

Farmstead Foods' unique business model, technology-driven operations, data-driven decision making,
and commitment to sustainability have been key drivers of the company's success and rapid growth in
the online grocery delivery market in India

Financial management.

• Here's an overview of the financial management aspect of the business plan for Farmstead Foods, a
leading online grocery delivery company in India:

• Financial Highlights:

• Farmstead Foods has demonstrated strong financial performance with a compound annual
growth rate (CAGR) of over 75% in revenues over the past 3 years.

• The company has a gross margin of around 50-55%, higher than traditional grocery retailers,
owing to its vertically integrated business model and operational efficiency.

• Farmstead has achieved positive EBITDA (Earnings before Interest, Taxes, Depreciation, and
Amortization) in the last fiscal year, indicating a path to profitability.

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• Funding and Investments:

• Farmstead Foods has raised over $250 million in funding from reputable investors like Sequoia
Capital, Accel, and Prosus Ventures.

• The latest Series E funding round in 2023 raised $100 million, providing the company with the
necessary capital to accelerate its growth and expansion plans.

• Investor confidence in Farmstead's business model and growth potential is evident from the
multiple rounds of funding secured over the years.

• Financial Planning and Forecasting:

• Farmstead has a robust financial planning and forecasting system in place, enabling the
company to make informed decisions and optimize resource allocation.

• The finance team closely monitors key financial metrics such as revenue growth, gross margin,
EBITDA, and cash flow to track the company's performance.

• Advanced data analytics and predictive modelling are used to forecast demand, manage
inventory, and plan capital expenditures.

• Cost Management and Optimization:

• Farmstead has implemented stringent cost control measures across its operations, including
optimizing supply chain logistics, minimizing wastage, and automating processes.

• The company's vertically integrated business model allows it to have better control over costs,
leading to improved profitability and the ability to offer competitive pricing to customers.

• Farmstead continuously explores opportunities to leverage technology, economies of scale,

and strategic partnerships to further enhance its cost efficiencies.

• Capital Allocation and Investments:

• Farmstead allocates capital judiciously, prioritizing investments in areas that drive long-term
growth and sustainable competitive advantage.

• This includes expanding the company's processing and logistics infrastructure, investing in
technology and innovation, and enhancing the customer experience.

• Farmstead also explores strategic acquisitions and partnerships that can complement its core
business and accelerate its growth trajectory.

• Financial Risk Management:

• Farmstead has implemented robust risk management frameworks to identify, assess, and
mitigate various financial risks, such as currency fluctuations, interest rate changes, and credit
risks.

• The company has established appropriate hedging strategies, insurance coverage, and
diversification measures to ensure financial resilience.

• Farmstead also has a strong focus on working capital management, optimizing inventory levels,
and maintaining a healthy cash flow to support its operational and growth needs.

• The strong financial performance, prudent financial management, and disciplined approach to
capital allocation position Farmstead Foods as an attractive investment opportunity for investors
seeking to capitalize on the growing online grocery delivery market in India.

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Marketing.

Farmstead Foods captivates customers with immersive virtual tours, personalized loyalty programs, and
data-driven, sustainable marketing strategies that solidify its online grocery dominance.

Market analysis.

Market Analysis for Farmstead Foods - A Comprehensive Overview for Investors

Market Opportunity:

• India's online grocery market, including fresh produce, is estimated to reach $18 billion by 2026,
growing at a CAGR of over 30%.

• The COVID-19 pandemic has significantly accelerated the shift towards online grocery
shopping, driven by consumer demand for convenience, quality, and safety.

• Increasing health consciousness and focus on sustainable, ethically sourced food products
present a lucrative opportunity for organized players in the online grocery space.

Target Customer Segments:

• Health-conscious, urban consumers who prioritize quality, freshness, and traceability of their
grocery items.

• Young professionals and families seeking a convenient, one-stop-shop for their regular grocery
needs.

• Environmentally conscious customers who value brands with a strong commitment to

sustainability and ethical practices.

Competitive Landscape:

• Farmstead Foods is a leading player in the rapidly growing online grocery delivery market, with
a differentiated focus on fresh, high-quality, and sustainably sourced products.

• Major competitors include established e-commerce platforms, traditional grocery retailers, and
emerging online-first grocery start-ups.

• Key competitive factors include product selection, pricing, delivery speed, customer
experience, and brand reputation.

Farmstead Foods' Competitive Advantages:

• Vertically integrated business model providing control over the supply chain, ensuring product
quality and freshness.

• Investments in state-of-the-art processing facilities and advanced logistics capabilities for

efficient operations.

• Strong brand positioning as a premium, trusted provider of healthy, sustainable grocery

products.

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• Innovative use of technology to enhance the customer experience and drive operational
efficiency.

• Extensive data analytics and customer insights to guide strategic decision-making.

Growth Strategies:

• Expand geographic reach and enhance distribution network to serve a wider customer base
across India.

• Introduce new product categories and value-added services to cater to evolving consumer
preferences.

• Invest in technology, automation, and data-driven capabilities to continuously improve the

customer experience and operational efficiency.

• Explore strategic partnerships and acquisitions to accelerate growth, diversify product offerings,
and strengthen supply chain capabilities.

• Implement targeted marketing campaigns and collaborations to further strengthen brand

awareness and loyalty among health-conscious, sustainability-minded consumers.

In conclusion, Farmstead Foods' strong market position, innovative business model, and focus on
sustainability make it a highly attractive investment opportunity for investors seeking exposure to the
rapidly growing online grocery delivery market in India.

Local Market Growth

Potential Customers New Homes
New Businesses Product Offerings
160% Geographical Expansions
22% 26%
% growth over prior period

140%
18% 28%
120%
14% 24%
100% 10% 20% 25%
80% 16% 22%
20% 32%
60% 12% 18% 28%
15% 25%
22%
40% 18% 40%
30% 35%
20% 20% 25%

0%
2024 2026 2028 2030 2032

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Market segmentation.

Marketing Segmentation for Farmstead Foods - A Comprehensive Overview for Investors

Farmstead Foods, the leading online meat and seafood delivery company in India, has a well-defined
and strategic approach to market segmentation that has been crucial to its success. By deeply
understanding the needs and preferences of its target customers, Farmstead Foods has been able to
craft tailored marketing and product strategies, delivering a superior customer experience that has
driven its rapid growth.

Key Customer Segments:

Health-conscious Urban Consumers: This segment comprises young, affluent, and health-minded
individuals who prioritize the quality, freshness, and safety of their meat and seafood products. Farmstead
Foods appeals to this segment through its emphasis on transparency, traceability, and sustainable
sourcing practices, positioning itself as a trusted provider of premium, high-quality products.

Time-pressed Professionals and Families: This segment consists of busy urban dwellers who value the
convenience and reliability of online grocery and meal delivery services. Farmstead Foods caters to this
segment by offering a wide range of ready-to-cook and value-added meat and seafood products,
along with efficient delivery options and user-friendly digital platforms.

Cooking Enthusiasts and Foodies: This segment includes food-savvy consumers who are passionate about
experimenting with different cuisines and cooking techniques. Farmstead Foods engages this segment
through interactive content, such as cooking tutorials, recipe collections, and collaborations with
renowned chefs, positioning the brand as an authority in the culinary space.

Loyal, Repeat Customers: This segment comprises customers who have consistently relied on Farmstead
Foods for their meat and seafood needs, and have developed a strong affinity for the brand. Farmstead
Foods nurtures this segment through personalized offerings, exclusive loyalty programs, and exceptional
customer service, fostering long-term relationships and driving repeat business.

Marketing Strategies:

Farmstead Foods leverages a multifaceted marketing approach to effectively reach and engage these
target segments:

Digital Marketing: Extensive use of social media, influencer collaborations, search engine optimization,
and targeted digital advertising campaigns to build brand awareness and drive customer acquisition.
Utilization of data analytics and personalization techniques to deliver highly relevant and personalized
content and offers to each customer segment.

Offline Activations: Organizing in-person events, pop-ups, and partnerships with local communities to
strengthen brand affinity and foster deeper connections with customers. Leveraging these offline
touchpoints to gather valuable customer insights and feedback to further refine Farmstead Foods'
product and marketing strategies.

Omnichannel Customer Experience: Providing a seamless and consistent customer experience across
Farmstead Foods' digital platforms (website and mobile app) and offline touchpoints (processing facilities
and delivery). Utilizing data-driven insights to continuously optimize the customer journey and enhance
satisfaction levels.

Loyalty and Retention Programs: Implementing subscription-based membership programs, referral

incentives, and personalized offers to foster long-term customer relationships and drive repeat business.
These initiatives help Farmstead Foods strengthen its position as the preferred choice for meat and
seafood lovers, further solidifying its market leadership.

By aligning its marketing strategies with the distinct needs and preferences of its target customer
segments, Farmstead Foods has been able to differentiate itself in the highly competitive online meat

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and seafood delivery market, positioning the company as a trusted and innovative brand that delivers
exceptional value to its customers.

Market Segments
Discount
20%
Elite
25%

Average
55%

Competition.

As Farmstead Foods, an online farm-to-table grocery delivery service, we operate in a rapidly evolving
and competitive market. Here's an overview of our major competitors and how we aim to differentiate
ourselves:

Direct Competitors:

1. Imperfect Foods: A prominent player in the online grocery delivery space, Imperfect Foods
focuses on reducing food waste by delivering "imperfect" produce and other products directly
to customers. Their market share is estimated to be around 15-20%. Strengths: Strong brand
recognition, emphasis on sustainability. Weaknesses: Limited product range, logistical
challenges in some regions.

2. Licious: A well-established online meat and seafood delivery company in India, Licious has
carved out a significant market share of around 20-25%. They offer a wide range of fresh and
processed meat products, catering to diverse customer preferences. Strengths: Comprehensive
product range, strong focus on quality and hygiene, efficient supply chain. Weaknesses: Limited
to the meat and seafood category, geographic reach primarily in urban areas.

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3. FreshToHome: One of our closest competitors, FreshToHome operates across multiple cities in
India. They have a strong presence in the seafood segment and offer a wide range of products.
Their market share is estimated to be around 15-20%. Strengths: Vertically integrated supply
chain, strong logistics network. Weaknesses: Limited product range compared to Licious,
weaker brand recognition.

4. TenderCuts: A prominent player in the online meat delivery space, TenderCuts has a strong
presence in metro cities like Delhi, Mumbai, and Bangalore. Their market share is estimated to
be around 10-15%. Strengths: Wide product range, aggressive marketing campaigns.
Weaknesses: Limited geographical reach, supply chain issues.

5. Local butcher shops and supermarkets: While not direct online competitors, traditional butcher
shops and supermarket chains still hold a significant share (around 60-65%) of the overall meat
and seafood market in India. Strengths: Established customer base, convenient locations.
Weaknesses: Limited product variety, lack of online presence.

Indirect Competitors:

1. Traditional supermarkets and grocery stores: While not directly competing in the online space,
these established retailers still capture a significant portion of the overall grocery market,
estimated at around 60-70%. Strengths: Widespread physical presence, established customer
base. Weaknesses: Limited organic and locally sourced options, lack of online convenience.

2. Online grocery delivery services (e.g., Amazon Fresh, Instacart): These platforms offer a wide
range of products, including some organic and locally sourced options, leveraging their existing
e-commerce infrastructure and customer base. Strengths: Convenience, broad product
selection, established logistics network. Weaknesses: Limited focus on locally sourced and
organic products, lack of direct farm connections.

At Farmstead Foods, we differentiate ourselves through our commitment to sustainable and transparent
sourcing practices. We maintain direct relationships with local farmers and producers, ensuring the
freshest and highest-quality products for our customers. Our curated selection of seasonal, organic, and
locally sourced produce, meats, dairy, and other artisanal products caters to discerning customers
seeking a farm-to-table experience.

We leverage technology to optimize our supply chain, ensuring efficient delivery and minimizing food
waste. Our user-friendly online platform and mobile app provide a seamless ordering experience, with
flexible delivery options and personalized recommendations based on customer preferences.

In addition to the above, we focus on:

1. Innovation in Packaging and Delivery: We invest in innovative packaging and delivery solutions
to enhance convenience and minimize environmental impact.

2. Continuous Market Monitoring: We continuously monitor consumer trends to adapt our offerings
and stay ahead of changing preferences.

3. Emphasis on Sustainability: Our marketing campaigns highlight our commitment to sustainability,

transparency, and supporting local communities.

4. Differentiation Through Quality and Traceability: While facing competition from established
players and emerging disruptors, we set ourselves apart through our focus on quality,
traceability, and a curated selection of locally sourced and organic products.

5. Personalized Farm-to-Table Experience: By offering a convenient and personalized farm-to-

table experience, we aim to become the preferred choice for conscious consumers seeking a
more sustainable and healthier way of sourcing their groceries.

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Pricing.

As Farmstead Foods, we have developed our pricing strategy based on current market trends and data in the
organic and locally-sourced grocery delivery space. Here are some numerical figures to illustrate our approach:

Pricing Strategy: We follow a cost-plus markup pricing model, where we typically apply a markup of 30-35% on
our sourcing costs and operational expenses to determine our retail prices. This markup range allows us to
generate a reasonable profit margin while remaining competitive in the market for premium, locally-sourced
products.

Competitors' Pricing Policies:

• Imperfect Foods: Their produce and grocery items are priced around 10-15% lower than our offerings,
as they focus on a high-volume, low-margin strategy for imperfect/surplus products.

• Local farmers' markets and CSA programs: Their prices for locally-sourced produce are generally 20-
25% higher than ours, leveraging the perceived premium value of direct farm-to-consumer sales.

• Traditional supermarkets: Their organic and locally-sourced product offerings are priced 10-15% higher
than our prices, relying on their established customer base and convenience.

Pricing Comparison: Our pricing for standard organic and locally-sourced produce is generally 5-10% higher than
industry averages, positioning us as a premium offering. For example, our average price for organic heirloom
tomatoes is around $4.99 per pound, compared to the industry average of $3.99-$4.49 per pound.

Multiple Pricing: We offer discounts of 10-15% for subscription-based orders or bulk purchases exceeding $100.
Additionally, we may run promotional discounts of up to 20% on selected products during seasonal campaigns
or marketing initiatives.

Price Lining: Our artisanal and specialty products are priced at a premium, ranging from 20-50% higher than our
standard offerings. For instance, our grass-fed, dry-aged beef is priced at around $18 per pound, while our
standard organic beef offerings are priced at $10-$12 per pound.

Profitability Monitoring: We aim to maintain an overall gross profit margin of 20-25% across our product range.
Our financial team closely monitors our costs and pricing to ensure we operate within this target range, making
adjustments as necessary based on market conditions and competitive dynamics.

Staying Abreast of Market Changes: We invest approximately 5-8% of our revenue in market research, consumer
insights, and product development initiatives to stay ahead of emerging trends and innovations in the
sustainable agriculture and grocery delivery industries.

By incorporating these numerical figures and data-driven insights into our pricing strategy, we can effectively
balance competitive positioning, profitability, and customer value proposition. This approach allows us to
maintain a strong foothold in the premium online organic and locally-sourced grocery delivery market while
ensuring long-term sustainability and growth for our business.

Advertising and promotion.

At Farmstead Foods, we employ a comprehensive and multi-faceted advertising and promotion strategy to
effectively reach our target audience and drive business growth in the organic and locally-sourced grocery
delivery space. Here's an overview of our approach:

Advertising and Promotion Options:

1. Digital Marketing:

• Social Media Platforms (Facebook, Instagram, Twitter): We leverage paid advertising and
organic content to build brand awareness, engage with conscious consumers, and drive
traffic to our website and app.

• Search Engine Marketing (SEM): We invest in search engine advertising to ensure high
visibility for relevant keywords like "organic grocery delivery," capturing interested
customers.

• Influencer Marketing: We collaborate with influential voices in the sustainable food and
wellness space to showcase our products and generate authentic endorsements.

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2. Traditional Media:

• Print Advertising (Newspapers and Magazines): We selectively advertise in publications

focused on healthy living, sustainability, and local communities to reach our core
demographic.

• Radio: We may explore local radio advertising to promote our farm-to-table philosophy
and offerings.

3. Direct Marketing:

• Email Marketing: We send targeted email campaigns promoting new products, offers,
and engaging content to our customer database.

• Direct Mail: We utilize direct mail campaigns, particularly in local communities, to raise
awareness and attract new customers.

4. Community Outreach:

• Events and Partnerships: We participate in local farmers' markets, food festivals, and
partner with community organizations to connect with conscious consumers and promote
our brand.

5. Word-of-Mouth and Referrals:

• We actively encourage and incentivize customer referrals through referral programs and
loyalty rewards, leveraging the power of word-of-mouth marketing.

Advertising Budget: Our advertising budget is determined as a percentage of our projected annual revenue,
typically ranging from 10-15%. We allocate this budget across various channels based on their effectiveness,
reach, and return on investment (ROI).

Tracking and Measurement: We closely track and measure the performance of our advertising and
promotion efforts using various metrics:

• Digital Campaigns: Website traffic, conversion rates, engagement metrics, and attribution models.

• Traditional Media: Sales uplift, coupon redemptions, and customer surveys.

• Direct Marketing: Open rates, click-through rates, and conversion data.

• Community Outreach: Event attendance, lead generation, and brand awareness surveys.

• Referrals and Word-of-Mouth: Referral codes, customer acquisition costs, and customer lifetime
value.

Campaign Scheduling: We combine regular, always-on advertising with seasonal campaigns tied to local
harvests, events, and promotional periods.

Packaging: At Farmstead Foods, we prioritize eco-friendly and sustainable packaging solutions that align
with our brand values. Our packaging is designed to preserve freshness, minimize waste, and enhance the
overall customer experience. We utilize reusable and compostable materials wherever possible, and provide
clear labelling and product information to educate our customers.

By combining our multi-channel advertising and promotion efforts, rigorous tracking and measurement,
community outreach initiatives, and a focus on sustainable packaging, we aim to effectively reach and
engage conscious consumers, drive business growth, and deliver an exceptional farm-to-table experience
with every Farmstead Foods purchase.

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Strategy and implementation.

At Farmstead Foods, we have a well-defined strategy and implementation plan to establish our online farm-to-
table grocery delivery service as a leading player in the space. Our primary objectives are:

1. Build a robust and sustainable supply chain: Our top priority is to establish strong partnerships with local
farmers and producers to ensure a steady supply of fresh, organic, and locally-sourced produce, dairy,
meat, and other artisanal products. We plan to implement stringent quality control measures and invest
in efficient logistics and cold chain infrastructure.

2. Develop a user-friendly online platform: We aim to create a seamless online ordering experience for our
customers through our website and mobile app. Our goal is to launch an intuitive platform within the
next 6 months, complete with features such as easy navigation, detailed product information,
personalized recommendations, and secure payment gateways.

3. Expand geographical reach: While initially focused on major metropolitan areas, our long-term goal is
to expand our delivery services to suburban and rural communities. We plan to achieve this through a
phased approach, first establishing a strong presence in key markets and then gradually expanding our
operations over the next 2-3 years.

4. Build brand awareness and customer loyalty: We plan to invest in marketing and advertising
campaigns to build brand awareness and position Farmstead Foods as a trusted source for high-
quality, locally-sourced, and organic groceries. This includes leveraging digital marketing channels,
influencer collaborations, community outreach, and targeted promotions. Additionally, we will
implement loyalty programs and exceptional customer service to foster long-term customer
relationships.

To ensure effective implementation and achieve our objectives, we will employ the following planning methods:

1. SMART goal-setting: We will set specific, measurable, achievable, relevant, and time-bound goals for
each aspect of our business, including supply chain management, technology development,
marketing, and operational expansion.

2. Project management methodologies: We will adopt agile project management frameworks to ensure
efficient collaboration, adaptive planning, and timely delivery of key milestones.

3. Continuous monitoring and evaluation: We will establish Key Performance Indicators (KPIs) to regularly
monitor our progress, identify areas for improvement, and make data-driven decisions to course-
correct our strategies as needed.

4. Risk management: We will proactively identify potential risks, such as supply chain disruptions,
regulatory changes, or competitive threats, and develop contingency plans to mitigate their impact.

5. Financial forecasting and budgeting: We will develop detailed financial projections and budgets,
allocating resources strategically to support our growth plans while maintaining profitability.

6. Sustainability and ethical practices: We will embed sustainable practices throughout our operations,
from sourcing to packaging, and prioritize ethical business practices that align with our values and
commitment to supporting local communities.

By adhering to these planning methods and executing our strategy effectively, we aim to establish Farmstead
Foods as a trusted and reliable online source for fresh, organic, and locally-sourced groceries, catering to
conscious consumers who prioritize quality, sustainability, and supporting local agriculture.

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