HSBC intra FBS Round one

“Murdock Farms :The challenging tale of aSocial Business

Product variety1

Greencoffee

2 3

Roastedcoffee

Soluble coffee

CORE ISSUES1. Nepal’s advancement in coffee

agro

2. Farmers prospects

3. Boosting sales up and brand establishment

Problem:

Sales didn’t match expectancy

Missions:

Where are theProblems?

In roasted coffee market

• Big competiotors

• Consumers are not willing to pay premium price

Why you will buy roasted coffee from an ?

You Won’t as:

• Price is high

• Unknown supplier

• Established brands

• Murdocks “social” vision is not working

All this issues matters only then you operate in

Roasted coffee market

ReasoningThink like Customer’

JustNotice

WhyMurdockdon’t exploretheHORIZON of

GreenCoffee?

OurAdvise

Sell unroasted premium quality cofee to leading roasters.

“When you can’t beat them, make them allies”

Now, Mourdock

Can charge premium

price for premium

cofee

No cmpetition with

leading roasters

No major campaign

required ( reduction in

capital requirewment )

The mission is still

viable

4CAnalysis

Established Roasters

Current Unroasted bean Suppliers

Premium Quality

Trained Workers

Social Developments

Supporting Friends

Govt. Officials

Consumer Company

Competitors Collaborators

PREMIUMUNROASTED BEANS

27.84billion$Cofee market in 2011

100%Total success!

80% of coffee tradeOf the world is captured by unroasted coffee tradings

Murdock attempted to train 130 farmersWhat about others???We want

BIG IMPACT!!!!o Still depends

on natureo Grows lower

quality beanso Exploited by

intermediarieso Gets 5-6% of

final price

Our Idea

Leads to

Farmers get better

price than before.

Leads to

Mid-range coffee

brand & supply chain

establishment.

1. CollectRegular quality

Coffee beans

2. Put those on our reduced

Interemediary channel

3. Roastthem

4. Sell them at moderate

price

5. Capture moderate

quality cofeemarket

Safe because

No competing

leading premium

Coffee brands

ThinkDeep & Ahed

Now we can ”sell regular quality coffee @low price to Hongkong based Hotels”Moreover:o More farmers are engaged in our neto A bigger social impacto Quality improvement possible

through little training

4CAnalysis

Hong Kong market

Local market in Nepal

Developing Asia, Africa

Current Regular quality roasted coffee Suppliers

Reduced Intermediary

Experience

Social proposition

Local coffee co-operatives

Untrained farmers

Consumer Company

Competitors Collaborators

REGULAR QUALITYROASTED/SOLUBLE

COFFEE

Our 360* business model’s Supply chain looks like

MurdocFarms

MurdocFarms

Graduating farmers

Co-operatives

Untrained farmersOf Nepal

Consumers

LeadingRoasters

Premium green beans

Regulargreen beans

PremiumUnroasted beans

RegularRoasted/Soluble

coffee

Business Mapping

Nepal

Europe

USA

Premium quality unroasted coffee

marketNormal

quality roasted coffee market

Hongkong

Africa

CompetingCountries

Brazil 31%

Columbia 9%

Vietnam 14%

Thanks! Check

Social proposition addressed?

Competition Lessen?

Brand establishment viable?

Business missions accomplished?

Back up contentsClick here: Back up contents.pdf

BACK UP CONTENTS

2010

2009Here we are now

Set field for our re-modeled plan : Customer search,

Necessary restructuring etc.

Implement our plan

Explore the market of Europe, Asia,

Africa

2011

On

ward

OurTimeline

O T

Exte

rna

l

Positive Negative

Available trained farmers, social proposition

Strengths

Experimental supply chain,

Capacity limitation

Weaknesses

Rising market demand.Opportunities

Competitors, Failure of social campaign

Threats

S W

Inte

rna

l

SWOTAnalysis

RevenueGeneration target

70%From Premium coffee

30%From regular coffee.

Activities!

● Selection

● Training

● Contractual relation

● Monitoring

● Developing prospects

Premium coffee farmers

● Buyer & Seller relation

● Little training

● Co-Operative establishment

Regular coffee farmers