The Friendsfarm group is working under the trust of the trustee for Friendsfarm group unit trust. Friendsfarm is known as the “fresh food specialists”, the store offers customers a comprehensive fresh produce solution to suit any business. With trained fresh food specialists hand selecting each item direct from the grower daily, customers can be guaranteed that only the best quality produce is sourced so that it arrives crisp and fresh to the door of business customers. With a wide selection of fresh fruit and vegetables, exotic tropical fruit and vegetables, Asian vegetables, processed fruit and vegetables, herbs and micro herbs, edible flowers, fresh salads and eggs, Friendsfarm group is the answer to your fresh menu requirements.
The first store is located at Munno para shopping center – Munno Para Fresh Fruiters shop 62, 600 Main North Rd, Smithfield SA 5114. The location is open 7 days a week.
Gurbir Singh Thind (one of the directors) has recently set up a new company, Ronik Business Group Pty Ltd (ACN 633 440 767). Ronik Business Group Pty Ltd has signed a lease agreement on 20th of May 2019 to open up a new Fruit and Vegetable store at 21b Greer street, Hyde Park SA. Therefore, Gurbit Singh will no longer be available to control operations at Friendsfarm on full time basis. As a result of regularly increasing demand, and unavailability of Gurbir Singh it has become essential to have a full-time Retail Manager to have better control over store operations. Mr. Amrit Pal Singh is a potential employee for this position and he is already officiating this position at Friendsfarm group since 22nd August 2016. With his relevant qualifications, industry experience and excellent supervisory and customer services skills, management has decided to appoint him as a Retail manager.
PRODUCTS AND SERVICES
Friendsfarm group offers all seasonal fruit and vegetables as well as herbs and a range of prepared packs. From the standard fresh produce to the more exotic varieties, we have everything you need to stock your fruit and vegetables in the kitchen in the one location.
Friendsfarm is known as the “fresh food specialists”, the store offers customers a comprehensive fresh produce solution to suit any business. With trained fresh food specialists hand selecting each item direct from the grower daily, customers can be guaranteed that only the best quality produce is sourced so that it arrives crisp and fresh to the door of business customers. With a wide selection of fresh fruit and vegetables, exotic tropical fruit and vegetables, Asian vegetables, processed fruit and vegetables, herbs and micro herbs, edible flowers, fresh salads and eggs, Friendsfarm group is the answer to your fresh menu requirements.
The company is providing fresh and dry organic produce sourced directly from local producers (where possible) and wholesalers from local or regional suppliers. Friendsfarm is currently buying from more than 20 suppliers who are currently delivering all year round to similar businesses in the Adelaide northern areas.
- Friendsfarm offers wholesale service for restaurants and caterers.
- The price list is updated every day.
- Friendsfarm endeavor to offer the best possible bulk prices.
- Friendsfarm also offer a business discount card.
- Friendsfarm also provide wholesale products required at weekends.
INDUSTRY ANALYSIS SUMMARY
IBISWorld’s Fruit and Vegetable Retailing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period from 2014 to 2019
The Fruit and Vegetable Wholesaling industry has benefited from rising health consciousness over the past five years. Increases in household disposable income have also contributed to greater sales of higher value fruit and vegetables, such as organic produce. Demand from cafes, restaurants and takeaway outlets has risen as consumer preferences have shifted towards more convenient and dining-out experiences. However, the major supermarkets are increasingly dominating all levels of the supply chain, challenging the industry’s long-term role. Industry revenue is expected to grow at an annualized 1.9% over the five years through 2018-19, to $12.0 billion.
Despite rising national fruit and vegetable consumption, industry retailers have faced difficult trading conditions over the past five years. Fierce price competition from the major supermarkets, Woolworths and Coles, has constrained industry revenue growth over the period. However, rising demand for higher value products, such as organic fruit and vegetables, has provided some support for industry operators. Industry revenue is expected to rise at an annualized 0.4% over the five years through 2018-19, to reach $3.97 billion. This includes a projected revenue increase of 0.2% in the current year.
The Friendsfarm group is focusing three significant customer groups:
- Many of the families living nearby the stores suburbs keen to get the fresh produce fruit and vegetables. More focus and integrated efforts these families are a strong customer base for the company.
- A significant number of small shops and deli stores prefer to shop food from our stores. Our location will make our store a convenient place to shop on the way home from classes.
Restaurants / food cater:
Due to fresh and quality products with the competitive cost we attract a large number of catering and restaurants owners.
The Friendsfarm group has two point of difference in the market:
There is a consideration that the competitive market price will attract new customers and also retain the loyal customers. This is also in the interest of the business and the benefit to the customers and the community. Friendsfarm group believes that cost-comparison will enable it to attract trade away from existing retailers and draw in people who are currently avoiding organic produce because they are price sensitive. Community implies togetherness and common values.
Friendsfarm group will create a positive environment for its customers and staff by promoting vitality, wellbeing and ethical practices through both its products and its actions. The main will be to do the following
[Symbol] Cyclic – creating no waste
[Symbol] Renewable – using clean energy
[Symbol] Efficient – using less
[Symbol] Safe – ensuring products and practices are harmless
[Symbol] Social – caring for people
[Symbol] Smart- adapting to change
One of the main objectives of the two outlets is to ensure customer satisfaction and build a repeat-customer base. The marketing plan focus on generating stores traffic; it means growing the client base and having high sale.
Northern Suburbs and play ford council surrounding communities are a growing middle-class area with nearly 25,000 residents. There are also small shop and deli stores who are the regular clients
Marketing Mix (the 4 Ps)
- Product:Our product is a high-quality, fresh fruit andvegetables that are extremely adaptable to both special events, and to the special dietary needs of our customers.
In addition, our company will donate a percentage of its net profits to The Conservation Fund to help support our world-wide environmental goals.
- Price:The price ofour product is competitive and satisfying the expectation of the customers.
- Place:Friendsfarm will market its products’ adaptability and its utility, in different online and offline approaches which include:
- Online Placement- electronic press releases, website, e-mail marketing campaign,
Web video ad, message boards, online catalogs, etc.
- Offline Placemen– press release, brochures, menus, direct mail, television spot,
Radio ads, business cards.
- Promotion:Our current promotional plans include but are not limited to:
- Advertising in local papers and glossy local magazines.
- Occasionally doing community donations and product gifts to active community figures.
- Guerilla posting to blogs incorporating company message with signature file.
- Create online and offline press releases to introduce the business to potential customers.
- Radio commercials.
- Sales Strategy
For the short term at least, the selling process will depend on personal selling/networking and advertising to enticement and inform potential customers about the services we offer and the benefits of utilizing our services. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the service category.
5.1 Sales Forecast
The following chart and table show our planned Sales Forecast for the next three years.
|FRIENDSFARM GROUP UNIT TRUST|
|For the period ending 30 June 2022|
|FY 2022||FY 2021||FY 2020|
The financial plan shall be essential if we are to meet our objectives. The intention is to finance growth through cash flow and equity.
Hence in the financial plan we intend to have the following:
- A fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace.
- Cash flow as first priority, growth second, profits third.
- Respect for realistic forecasts, and conservative cash flow and financial management.
Projected Profit and Loss Statement
Our projected financial performance for the next three financial years is in the table below.
|Projected Profit and Loss Statement|
|FRIENDSFARM GROUP UNIT TRUST|
|For a period of 3 years ending 30 June 2022|
|FY 2022||FY 2021||FY 2020|
|Bank Fees – Merchant Fees||$4,788.07||$4,560.07||$4,342.92|
|Consulting & Accounting||$327.10||$311.52||$296.69|
|Hire – Forklift||$5,715.36||$5,443.20||$5,184.00|
|IT – Software Subscription||$954.52||$909.06||$865.78|
|Motor Vehicle Expenses||$19,664.32||$18,727.92||$17,836.12|
|Printing & Stationery||$4,955.57||$4,719.59||$4,494.85|
|Purchases – Fresh Produce||$573,540.99||$546,229.51||$520,218.58|
|Purchases – Premixed Drinks||$1,974.54||$1,880.51||$1,790.97|
|Repairs and Maintenance||$2,765.10||$2,633.43||$2,508.03|
|Wages and Salaries||$111,000.00||$105,000.00||$96,000.00|
|Total Operating Expenses||$905,436.01||$868,080.90||$829,707.93|
We intend to benefit from highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond timeously to the local market. Below are the summarized strengths, weaknesses, opportunities and threats.
- Domestic market experience.
- Skilled workforce.
- Wide product rage.
- Competitive pricing.