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“Murdock Farms :
The challenging tale of a
Social Business
Product variety
1
Green
coffee
2 3
Roasted
coffee
Soluble
coffee
CORE ISSUES
1. 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 the
Problems?
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
Reasoning
Think like
Customer’
Just
Notice
Why
Murdock
don’t explore
the
HORIZON
of
Green
Coffee?
Our
Advise
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
4C
Analysis
 Established Roasters
 Current Unroasted bean
Suppliers
 Premium Quality
 Trained Workers
 Social Developments
 Supporting Friends
 Govt. Officials
Consumer Company
Competitors Collaborators
PREMIUM
UNROASTED 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 farmers
What about others???
We want
BIG IMPACT!!!!
o Still depends
on nature
o Grows lower
quality beans
o Exploited by
intermediaries
o 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. Collect
Regular quality
Coffee beans
2. Put those on
our reduced
Interemediary
channel
3. Roast
them
4. Sell them at
moderate
price
5. Capture
moderate
quality cofee
market
Safe because
No competing
leading premium
Coffee brands
Think
Deep & Ahed
Now we can ”sell
regular quality coffee @low
price to Hongkong based
Hotels”
Moreover:
o More farmers are engaged in our net
o A bigger social impact
o Quality improvement possible
through little training
4C
Analysis
 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 QUALITY
ROASTED/SOLUBLE
COFFEE
Our 360* business model’s
Supply chain looks like
Murdoc
Farms
Murdoc
Farms
Graduating
farmers
Co-
operatives
Untrained
farmers
Of Nepal
Consumers
Leading
Roasters
Premium
green beans
Regular
green beans
Premium
Unroasted beans
Regular
Roasted/Soluble
coffee
Business Mapping
Nepal
Europe
USA
Premium quality
unroasted coffee
market
Normal
quality roasted
coffee market
Hongkong
Africa
Competing
Countries
Brazil 31%
Columbia 9%
Vietnam 14%
Thanks!
Check
Social proposition addressed?
Competition Lessen?
Brand establishment viable?
Business missions accomplished?
Back up contents
Click 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
Our
Timeline
O T
External
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
Internal
SWOT
Analysis
Revenue
Generation 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

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HSBC intra FBS Round one

  • 1. “Murdock Farms : The challenging tale of a Social Business
  • 3. CORE ISSUES 1. Nepal’s advancement in coffee agro 2. Farmers prospects 3. Boosting sales up and brand establishment Problem: Sales didn’t match expectancy Missions:
  • 4. Where are the Problems? 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 Reasoning Think like Customer’ Just Notice
  • 6. Our Advise 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
  • 7. 4C Analysis  Established Roasters  Current Unroasted bean Suppliers  Premium Quality  Trained Workers  Social Developments  Supporting Friends  Govt. Officials Consumer Company Competitors Collaborators PREMIUM UNROASTED BEANS
  • 8. 27.84billion$Cofee market in 2011 100%Total success! 80%of coffee tradeOf the world is captured by unroasted coffee tradings
  • 9. Murdock attempted to train 130 farmers What about others??? We want BIG IMPACT!!!! o Still depends on nature o Grows lower quality beans o Exploited by intermediaries o Gets 5-6% of final price
  • 10. Our Idea Leads to Farmers get better price than before. Leads to Mid-range coffee brand & supply chain establishment. 1. Collect Regular quality Coffee beans 2. Put those on our reduced Interemediary channel 3. Roast them 4. Sell them at moderate price 5. Capture moderate quality cofee market Safe because No competing leading premium Coffee brands
  • 11. Think Deep & Ahed Now we can ”sell regular quality coffee @low price to Hongkong based Hotels” Moreover: o More farmers are engaged in our net o A bigger social impact o Quality improvement possible through little training
  • 12. 4C Analysis  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 QUALITY ROASTED/SOLUBLE COFFEE
  • 13. Our 360* business model’s Supply chain looks like Murdoc Farms Murdoc Farms Graduating farmers Co- operatives Untrained farmers Of Nepal Consumers Leading Roasters Premium green beans Regular green beans Premium Unroasted beans Regular Roasted/Soluble coffee
  • 14. Business Mapping Nepal Europe USA Premium quality unroasted coffee market Normal quality roasted coffee market Hongkong Africa Competing Countries Brazil 31% Columbia 9% Vietnam 14%
  • 15. Thanks! Check Social proposition addressed? Competition Lessen? Brand establishment viable? Business missions accomplished? Back up contents Click here: Back up contents.pdf
  • 17. 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 Our Timeline
  • 18. O T External 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 Internal SWOT Analysis
  • 19. Revenue Generation target 70% From Premium coffee 30% From regular coffee.
  • 20. Activities! ● Selection ● Training ● Contractual relation ● Monitoring ● Developing prospects Premium coffee farmers ● Buyer & Seller relation ● Little training ● Co-Operative establishment Regular coffee farmers