Ugly Harvest

Company: Ugh.co
Executive Summary

01 02
Situation Complication
● Food waste Reduce food waste while
● Food security promoting local agriculture
● Carbon Emission and providing affordable
access to healthy food
03 04
Question Answer
How can Ugly Harvest By purchasing “ugly” but
reduce food waste, support fresh and nutritious
local agriculture, and produce directly from
provide affordable access smallholders local farmers
to healthy food?
Our
Product
The product we are offering
are imperfect/ugly fruits
and vegetables that are
typically rejected by grocery
stores and other retailers due
to cosmetic imperfection.
The produce is usually not
very aesthetically pleasing
but still perfectly safe for
consumption.
Reducing Food Waste
United Nations reports that approximately one-third of all food produced globally is lost
or wasted annually, resulting in significant environmental, economic, and social
implications.
Selling produce that would otherwise go to waste can help reduce food waste, a
significant environmental and social issue.
Increasing access to healthy food
By offering produce at a lower cost, our business can help make healthy food more accessible
to consumers who may not be able to afford it otherwise.
This can help promote public health and reduce health inequalities.
Promoting sustainable consumption
By encouraging consumers to purchase and consume produce that may not look perfect but is
still nutritious and delicious, our business can help promote more sustainable and mindful
consumption habits.
Sustainable Agriculture & Supply Chain
Small-scale and sustainable agriculture is increasingly recognized as an development.
By working directly with smallholders local farmers, our business can help support
sustainable agriculture practices and promote a more resilient food system.
Directly sourcing from smallholders local farmers can eliminate unnecessary supply
chain links that contribute to food waste.
Value Proposition
What we provide to customer?
​
Our company sources fresh, nutritious, and affordable produce directly from smallholders
local farmers. We specialize in selling vegetables and fruits that do not meet traditional
commercial standards, but are still delicious and nutritious. By purchasing these produce
from us, we can help reduce food waste, support smallholders local agriculture, and
promote sustainable consumption.
Our products are available through various channels such as farmers' markets, grocery
stores, restaurants, and online marketplaces, making it easy and convenient for you to
access healthy food. Additionally, we are committed to providing excellent customer
service and building a strong relationship with our customers, farmers, and partners. With
our company, you can enjoy fresh, delicious, and sustainable produce while making a
positive impact on your community and the environment.
What we trying to solve?
➔ Food Waste reduction: According to the United Nations,
around one-third of all food produced in the world is lost or
wasted every year, which has significant environmental,
economic, and social consequences.​
➔ Supporting smallholders local farmers: Our business idea
can help support smallholders local farmers who may
otherwise struggle to sell their produce. This can help to
promote a more sustainable and resilient local food system.

​How do we offer something different that satisfies the demands of our customer segments?
In terms of convenience, our products are available through various channels such as farmers' markets, grocery stores, restaurants, and online marketplaces. This makes it
easy and convenient for customers to access healthy food options wherever they may be.​

Additionally, we are committed to providing excellent customer service and building a strong relationship with our customers, farmers, and partners. This commitment
ensures that our customers receive personalized attention and care, which is not always offered by larger corporations.
SWOT Analysis
Strength
● Reduce carbon emission by reducing the
supply chain link
● Reduce food waste
● Unique value proposition
● Lower price
● Diversify revenue stream
● Larger target market
● Decreases bias towards aesthetically
imperfect produce
● Government Initiatives and partnership :
collaborate with community organizations to
promote its mission and increase its impact.​​
● Expansion into new markets: The business
could expand into new markets by building
relationships with additional smallholders local
farmers, expanding product offerings, and
partnering with local businesses.​
● Shifting trends are growing in sustainability​
Opportunity
Weakness
● Difficulty in maintaining quality and
standard​
● Do not have as much variety of products
as we only source from local farmer ​
● Higher investment in packaging
● Fluctuating prices and availability of
produce due to weather and other external
factors.​
● Competitors that sell more visually
appealing produce
● Trends may shift to consumers planting
their own produce​
7
Threat
Short-Term Goals
Brand Partnership Market Penetration

Develop a unique brand identity that reflects Develop targeted marketing strategies
Establish and maintain 10 stable
our mission (e.g. reducing food waste ) and and campaigns to reach and engage
partnerships with smallholders local
effectively conveys our values and personality to these audiences
farmers to ensure consistent and reliable
the public.
acquisition of our products.
Monitor and evaluate our marketing
efforts to determine their effectiveness
Establish partnerships with potential
Increase brand awareness and visibility in and make necessary adjustments to
business entities such as supermarkets,
Malaysia market by implement targeted achieve our objectives.
catering services or restaurants
marketing campaigns and initiatives.
Long-Term Goals
Customer Relationship Business Operation Partnership

Continuously evaluate and improve

Successfully implement and scale our
Develop a loyal and engaged customer base partnerships to ensure mutual benefit
brand by utilizing data-driven insights
through our commitment to brand mission and and success
and evaluation to continually improve
values
and optimize the effectiveness and
Explore opportunities to expand
impact
Establish the brand as a trusted brand in the partnerships and reach new audiences
industry, by providing valuable and informative
Establish a sustainable business model,
content to our customers through various Become a trusted and preferred
ensuring long-term viability and
channels, such as social media, webinars, and partner for sustainable and socially
continued positive impact beyond the
events. responsible initiatives.
initial phase
Our Strategies

PARTNERSHIP WITH LOCAL FARMERS

SALES & MARKETING Building strong relationships with smallholders local
Develop an effective sales and marketing strategy:
farmers:
Have personalised sales proposals for each of the potential
To ensure that we have stable and reliable relationships with
partners that we are approaching to ensure that we can create a
the farmers so that we can ensure that we are able to get
long-term fruitful partnership where both parties are able to
supplies from these farmers for the business and also to explore
benefit from this partnership. ​
the opportunity of coming out with new products. ​

SOCIAL IMPACT
Prioritize sustainability and social impact:
To achieve your long-term goal of developing a social or environmental impact program, it is
essential to prioritize sustainability and social impact from the beginning. This can include
using sustainable packaging and labeling, supporting smallholders local farmers who practice
sustainable agriculture, and donating a portion of your profits to a local organization or cause
that aligns with your values. By prioritizing sustainability and social impact, you can build a
strong brand reputation and attract customers who share your values
Marketing Analysis
Target Market
Our product's main targets are
HORECA (hotels, restaurants, and
catering), students, and like-
minded consumers who wish to
have a solution and fight against
food wastage.
We provide fresh produces, at a
lower price due to their physical
attractiveness.
Market Trends
Our product is meeting the trend
and issue of food wastage.
Food wastage has been
increasingly high, and with our
product, we aim to reduce food
wastage by selling less attractive
produce that is still up to par with
the freshness of conventional
produces.
Competition
Our main competitors are other
produce suppliers in
supermarkets, they provide an
attractive component to their
produce, and consumers might be
more inclined to pay more for
their more attractive produce than
what we offer. To battle this, we
push forward engaging content
with our consumers and fight the
stigma of less attractive looking
produces.
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Key Marketing Activities
Activities that can deliver our value proposition What can we do on social media

Example of social media content:

Creating engaging and informative content based on market research - Create Hashtag #Reduce your foodprint
(research on the freshness of less commercially accepted produce and - Practical tips to reduce food waste
posting research on social media/other advertising platform) and - Created a Food Waste Toolkit that can be shared with family
develop an effective pricing system for our consumers, we would also
and friends to help everyone become more conscious
market ourselves as a brand that helps towards the issue of food
consumers.
wastage. - Posting statistics about the environmental impact of food
waste

Activities that set us apart

❖ By creating engaging content surrounding food wastage through our social media channel. We can target a sizeable portion of the market
to be more knowledgeable and contribute to our business whilst also reducing the issue of food wastage.​

❖ Providing fresh, fun, and interesting packaging with fun facts for our product (can be about the team, our values, our goals, our methods,
or just how we acquire our produce)​

❖ Engaging with our customers through pop-up booths, collaboration events, and our online channels (such as our website or our social
media platform) to create engagement and promote customer relationship.​
Key Marketing Activities
Main distribution is supermarkets with the use of booths, we want
Supermarkets to promote the utility of less attractive foods, to promote lower
cost, and lessen food wastage​
Distribution Channels
1
Distribution through online orders may it be bulk or
Online order individual orders to HORECA (hotels, restaurants, and
catering)

** Distributing produce that is almost done of their shelf-life that are not sold to food shelters to further reduce the
wastage of our produces at no cost (Corporate Social Responsibility)

By ensuring that our produce are still fresh, we can keep customer
relationships high, and looking for our products as they cost less
Ensure fresh product
and provide the same freshness and nourishment rather than going
for conventional more well-known brands. ​
Customer
2
Relationships
Engaging with our customers through our social media platform
with the use of awareness posts, engaging stories of our customers,
Social media platform
and many more.​

** Keeping our company functions (how we distribute, obtain, our steps) transparent to increase customer trust.
Key Marketing Activities
Reason to not streamline our product.

We would like to focus more on attracting consumers who are focused

on the issue of food wastage

We want our products to also educate the public on our actions against food wastage, by providing fun (but
1 shocking) facts surrounding the issue of food wastage on our packaging, streamlining would remove our chances
and possibilities of achieving that.

2 Because we are an environmentally conscious brand, it is important that we ensure our packaging and delivery also
meets the criteria of being green-conscious.

3 Having different variety of packaging also allows us to better attract browsing customers.
Cost Structure
Cost Key Activity Revenue Stream Fixed or Variable

Product
Sourcing fresh produce from local farmer All Variable
Acquisition

On-ground & Online advertising and

Marketing All Variable
publicity

Design and production of packaging

Packaging All Variable
materials.

Transportation, delivery and shipping

Logistic All Variable
cost

Rent and utilities for storage/office space.

Administration Indirect Fixed
Rent for storefront

Payroll Salary for stuff Indirect Fixed

 Revenue Stream

Physical E-commerce
Marketplace
● Online Store and
● Supermarket delivery service
● Grocery store
● Convenient store
● Pop-up Booth
Subscription Plan
B2B Bulk Sales

● Bulk orders from HORECA ● Weekly subscription plan

(hotels, restaurant and catering)​ for customer to receive
Pricing Strategy
Discounted Pricing
Offer the ugly crops at a discounted
price compared to their visually
appealing counterparts.
Discounted pricing is a common
strategy used by retailers like
Walmart and Whole Foods to sell
ugly foods.
Able to attract price-sensitive
customers who are looking for a
Outcome
bargain.
Psychological Value-based
Pricing
Highlighting the unique value of
our Ugly Harvest products offer,
such as their role in reducing food
waste and supporting sustainability.
Label the product as “Ugly”
instead of unwanted and highlight
the nutrition value is as high as the
other aesthetically appealing
products.
Able to attract cost-conscious
customers and promote the
reduction of food waste at the same
time.
Bundle Pricing
Offer B2B bulk sales to HORECA
businesses can help to secure a
reliable revenue stream.
Subscription model with bundle
pricing, offering customers a
weekly delivery of a variety of
"ugly" produce items at a
discounted price compared to
purchasing them individually.
Able to build customer loyalty,
clear out inventory of slower-
moving products and encourage
repeat business
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Profit Product /kg Cost Price (RM) Selling Price (RM) Profit (RM) Profit Margin (%)

Margin Tomato 5.00 8.00 3.00 37.5

Potato 2.80 5.80 3.00 51.7

Cucumber 1.55 4.55 3.00 65.9

Eggplant 7.00 10.00 3.00 30.0

Watermelon 2.50 5.50 3.00 54.5

Product Total Cost (RM) Total Revenue (RM) Total Profit (RM) Profit Margin (%)

Tomato 750 1200 450 37.5

Potato 420 870 450 51.7 Assume that 150

kilograms of each
product were sold
Cucumber 232.50 682.50 450 65.9 per month

Eggplant 1050 1500 450 30.0

Watermelon 375 825 450 54.5

Total 2827.50 5077.50 2250 44.3 %

Profit Margin
Revenue 5077.50

Cost of Goods Sold (COGS) (2827.50)

Gross profit 2250

Overhead cost (2200)

Rent (Storage Unit) 700

Logistics (Transportation, Packaging) 1200

Utilities 300

Operating profit 50

Gross profit margin 44.31%

Operating profit margin 0.98%