a group 3 presentation

MADIVAL

A

VEGETAB

LE

MARKET 

12°55'19"N 77°37'19"E

• It is a bustling center of activity from grocery markets to IT to shopping mall.

• Being at the center of the IT corridor it is well known across Bangalore.

• Largest Market for LEAFY VEGETABLES.• Around 700 to 750 Shops.• It is not a market licenced by the Bruhat

Bangalore Mahanagara Palike (BBMP)• The regular gathering of farmers, wholesalers

and hawkers for over 15 years.• VKC Association for Basic Functionalities.

MADIVAL MARKET

RMC YARD FARMERSFINAL

CONSUMER

BASIC FUNCTIONING OF THE MODEL

MIDDLEMAN COMMISSIONINTERMEDIARY

Does It Helps In LINKING

the RURAL Into The

HOW

MARKET

• No direct linking in case of vegetables being RMC yard in between.

• Only leafy vegetables directly procured from the farmers.

59%23%

10%

9%

Leafy Vegetables Chilly Potato Onion

YEAR GOODS PROCURED

Vegetable Procurement in tonnes

Marketing - Mix

FUNCTIONS

PRODUCTLeafy

Vegetables Onion Mirchi Potato

Groceries

PRICEIronically,

these informal

markets are where you

pay just half of what you would at a

supermarket.

PLACEElectronic

CityHathibellaAnekallur

Hosur Marathalli Belandur

PROMOTION

A Very LittleOpen area

where buses would stop.Residential

localities such as Jayanagar

& Koramangala

• As Mentioned Before Price Fluctuates Twice in a Week.• Based on Season they are Going to Loose the Price on Vegetables.• At the Time of Festivals there Would be More Demand and so does Supply

in the Market.Product PriceOnion / 50 Kg 700-900 RupeesChilly / 1 Kg 46 Rupees

PRICING DECISION

PROFIT MARGIN• 50-70 thousand per Month.• Profit of Rs. 1-2/Kg

Target Market• Main Focus on Local Retail Shops n’ Hotels.• Before 10:30 AM Wholesale & then after go for Retailing.• Petty Hotels & Local Food Vendors go for Low Quality Large

Quantity while for Residents it is Vice Versa.

In Madivala, whether it is the early morning walker or the IT professional going back from work they all pick up vegetables here.We have to encourage our farmers by buying from them, especially when we can be sure of the quality.K. Ramanathan

A resident of Jayanagar

CHALLENGES

No Direct Link With Farmers.

1Price Fluctuation Twice in a Week.

2Commission Agents(100/70)

3Increasing Rents (RS. 1000/ DAY )

4RMC YardCreditIrregularlarity

5Space battleRoad Widening (BBMP)

6Shift in Customer BaseVegetable Supermarkets

7

FEW WORDS FROM SELLERS

Keshav, A Wholesaler

Farmers, wholesalers as well as the odd retailer here have had to grapple with the realities of a fast growing city that offers buyers “easier”alternatives.He states that a rough decline of 30 per cent in sales has taken place over the last year. But these are conservative figures, he says.

Indra, A Vegetable Seller

This market is mostly devoid of middlemen, and so our prices are not hiked,” she says. “And yet, people are turning to supermarkets where you can buy only half the amount of vegetables for the prices here.”Her husband, a wholesaler who comes from Anekal with a fresh load of vegetables every day, adds that this year things have been uncertain.

SUITABLE STRATEGY• For Both Category of Costumers it is Recommended to the Sellers to

Maintain Both the stocks.• Instead of Depending upon Cold Storage Facility of the RMC

Yaswanthpur they should Collectively Build One.• Instead of giving Commission to Agents it is better for them to Build

Link with Farmers.• When Required Channel via Middleman is not that Bad to Try.• Cleanliness attracts Customers.

LIMITATIONS • This Study is not Product Specific. This Study was Conducted only to Understand

Functioning of the Market as a Whole.

• Most Sellers were Hesitant to give any Information, Few even Hesitate to Talk.

• Personal Biasness of Respondents might have Skewed the Understanding a little bit.

thank u