business case study blends cooperative

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Case 3 Blends Cooperative Ltd Case: Blends Cooperative Ltd Introduction A social entrepreneur is, in essence, someone who develops an innovative answer to a social problem (for instance, a business model for helping to tackle poverty). A decade ago the term was scarcely heard; today everyone from London to Lagos wants to be one. One such initiative is Blends Cooperative, to work with farmers to produce high quality fresh juice from fruits and vegetables and deliver it at the door step every morning. Although a simple idea, it started with a vision of creating large scale employment and also making juice, like milk, an integral part of every house hold’s early morning diet. Vision There is a great need for food processing in a country like India. According to Emerson study in 2013, around 13,300 crores worth of fruits and vegetables are wasted annually in India. The founders also envision an Amul like business model for Blends, both for juice delivery, and otherwise. Like Amul has become a cooperative success, creating bottom of the pyramid employment along with successfully becoming financially sustainable, there is a definite scope in food processing, for farmers to create a great business idea out of it. Business Model Door Service delivery models have had tremendous success in the recent years. Started as a private entity, Blends was set up by MBA graduates a couple of years back to make the busy lives of professionals, women, sportsmen, senior citizens and many others healthy and easy. The company maintains quality, produces cold pressed juice (as opposed to traditional method) and has a good market share in the residential market in Hyderabad. Presently, the supply of fruits and vegetables is only through the usual market places but the strategic move towards a cooperative was slowly happening. Most of the supply will be direct-farmer based within the next few months. Similar is the involvement of farmers in the business.

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Business Case Study Blends Juices Business ModelDoor Service delivery models have had tremendous success in the recent years. Started as a private entity, Blends was set up by MBA graduates a couple of years back to make the busy lives of professionals, women, sportsmen, senior citizens and many others healthy and easy. The company maintains quality, produces cold pressed juice (as opposed to traditional method) and has a good market share in the residential market in Hyderabad. Presently, the supply of fruits and vegetables is only through the usual market places but the strategic move towards a cooperative was slowly happening. Most of the supply will be direct-farmer based within the next few months. Similar is the involvement of farmers in the business.Cold Pressed JuiceWhen you prepare juice at home, you simply extract the juice, pour it in a glass and enjoy it. But what happens is that the blades of your juicer add heat and expose the juice to the air. This results in oxidation and loss of vitamins, enzymes and other important nutrients.Cold pressed juice, on the other hand, is extracted by pressing fruits and vegetables without any heat. These juices are put into large chambers and a huge amount of pressure is applied to them. This prevents the loss of nutrients, keeping the juice healthy. With proper refrigeration, this will last for 48 hours.Target Segments & Scalability:Although residential market looks like a good segment to capture, the founding team always had their eyes on the corporate clients. But they faced some problems convincing the ‘institutional’ clients to their product. Questions also lingered on scalability, especially considering the cooperative model and the market competition in similar segments.The Problem Statement1. Very few social enterprises have scaled up to reach the level of Amul. Identify few bottlenecks in supply chain ‘Blends’ will face if the company wants to scale up and what it can possibly do to avoid it.2. Is getting into corporate clients a good idea? What customer segments it needs to target to meet both its social goals as well as financial goals. And how do we reach them?3. How to replicate a cooperative model creating social impact in such a food processing set up?Ensure that you address the following while developing recommendations for the problem statement. The proposition and the wow factor Description of the customer segment  Value proposition to all stake holders  Business model and competitive advantage  Regulatory restrictions to be overcome if any Pricing Proposal along with assumptions made Projection of growth  Challenge the status-quo

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Case 3 Blends Cooperative LtdCase: Blends Cooperative LtdIntroductionA social entrepreneur is, in essence, someone who develops an innovative answer to a social problem (for instance, a business model for helping to tackle poverty). A decade ago the term was scarcely heard; today everyone from London to Lagos wants to be one. One such initiative is lends !ooperative, to work with farmers to produce high "uality fresh #uice from fruits and vegetables and deliver it at the door step every morning. Although a simple idea, it started with a vision of creating large scale employment and also making #uice, like milk, an integral part of every house hold$s early morning diet. Vision%hereisagreat needfor foodprocessinginacountrylike&ndia. Accordingto'mersonstudy in ()*+,around *+,+))croresworthof fruitsand vegetablesarewasted annually in &ndia.%he founders also envision an Amul like business model for lends, both for #uicedelivery, andotherwise. LikeAmul hasbecomeacooperativesuccess, creatingbottomof thepyramidemploymentalongwithsuccessfullybecoming,nanciallysustainable, thereisade,nitescopeinfoodprocessing, forfarmerstocreateagreat business idea out of it.Business Model-oor .ervice delivery models have had tremendous success in the recent years. .tarted as a private entity, lends was set up by /A graduates a couple of years back to make the busy lives of professionals, women, sportsmen, senior citi0ens and many others healthy and easy. %he company maintains "uality, produces cold pressed #uice (as opposed to traditional method) and has a good market share in the residential market in 1yderabad. 2resently, the supply of fruits and vegetables is only through the usual market places but the strategic move towards a cooperative was slowly happening. /ost of the supply will be direct3farmer based within the ne4t few months. .imilar is the involvement of farmers in the business.Cold Pressed Juice5hen you prepare #uice at home, you simply e4tract the #uice, pour it in a glass and en#oy it. ut what happens is that the blades of your #uicer add heat and e4pose the#uice to the air. %his results in o4idation and loss of vitamins, en0ymes and other important nutrients.!old pressed #uice, on the other hand, is e4tracted by pressing fruits and vegetableswithout any heat. %hese #uices are put into large chambers and a huge amount of Case 3 Blends Cooperative Ltdpressure is applied to them. %his prevents the loss of nutrients, keeping the #uice healthy. 5ith proper refrigeration, this will last for 67 hours.Target Segments & Scalability:Althoughresidential market lookslikeagoodsegment tocapture, thefoundingteam always had their eyes on the corporate clients. ut they faced some problemsconvincing the 8institutional$ clients to their product. 9uestions also lingered on scalability, especially considering the cooperative modeland the market competition in similar segments.The roblem Statement*. :ery few social enterprises have scaled up to reach the level of Amul. &dentifyfew bottlenecks in supply chain8lends$willfaceifthecompany wantstoscale up and what it can possibly do to avoid it.(. &sgettingintocorporateclientsagoodidea;5hat customersegmentsitneeds to target to meet both its social goals as well as ,nancial goals. Andhow do we reach them;+. 1ow to replicate a cooperative model creating social impact in such a foodprocessing set up;'nsure that you address the following while developing recommendations for theproblem statement. %he proposition and the wow factor -escription of the customer segment :alue proposition to all stake holders usiness model and competitive advantage