Below are the details of our business model.
We have successfully created a strong supply chain of farmers in the backend and now are looking to create the front end.
We operate in a tier 2 city like Cochin and below are the challenges and advantages that we have.
1. Consumers are used buying vegetables and groceries offline. The internet penetration is there but there is no big player who delivers online.
2. Consumers have developed a long relationship with the offline stores.
1. We are able to offer the freshest produces within 2-3 hours of plucking from the plant to the consumer table.
2. There is a strong grassroot movement in the entire state for organic vegetables where media, government and consumer sentiment are at a high.
We are trying to decide of whether we should work on a model of b2c or b2b model.
In B2C we have a customer acquisition cost and an entry barrier. However there is a greater margin of profit.
In B2B we are planning to sell the organic food products to the offline stores where they don't have a supply chain for this.
Getting to work on a b2c model would take a long time including the logistics cost. In contrast a b2b model offers more stable revenues and lesser logistical headaches.
B2B is much easier and more profitable.
The pitch to help a business grow at an affordable price is much easier than having to spend on gaining customers trust/loyalty.
If B2B, who is the other B?
There are two choices of what business you could be in:
1. Do you want to be in the retail business and eliminate the local stores (from whom consumers buy) and the distributors (from whom the restaurants and grocery stores buy)? If so, then you want a B2C model.
2. Do you want to be in the distribution business and market directly to the distributors above? If so, you want a B2B model.
It seems to me that you haven't decided what business you want to be in. Decide that first, then decide on a model for customer acquisition.
I have a bit of experience in your business. A old friend started a business where he'd go directly to the docks and buy the freshest fish right off the boats. That's how he got his product. But, he wanted to be in the B2C business so he acquired a lot of high end consumers who wanted to buy the freshest fish possible and were willing to pay 30%+ more than they'd pay in the local grocery or fish store. His CAC was very high. After two years he had to close this business as his delivery costs were too high.
So, instead he decided to sell to the distributors. His value proposition was freshness. Now his business is flourishing. The problem is that a consumer can not get his fish now, as the distributors had too much demand from restaurants and had nothing left over for the average store. He sells out of product every day and the distributors plead with him for more product.
The moral of the story is that, in the USA at least, distributors control the food business. They have the relationships with the stores and restaurants. You will have a tough go at it if you want to go B2C.
It's more of a headache, but I see B2C as your best route here.
You answered the question yourself. It's B2B that you should target to get started, build traction, and plan for transition. Once you reach transition stage you could consider adopting an alternate business model, B2C, over and above your prevalent B2B model.
I understand margins will be low in B2B model, but then there would be savings in term of less customer acquisition cost, low entry barrier, and minimum logistical infrastructure.
I believe you must be well aware of Pune region being famous for exotic and organic vegetables. I have had experience with various companies there who are doing it both for B2B and B2C. Drop me a message if you feel hopping on a quick call could be of any benefit.
tell me who your customers are and i will tell you what model best suites
B2B marketing and lead generation focuses on building personal relationships that drive long-term business. So, relationship building in B2B marketing, especially during the buying cycle, is crucial. It gives you the opportunity to prove what kind of business practices, ethics, and morals you keep close to your heart. This ability to connect with your targeted audience allows you to separate your business or your client’s business from competitors, as well as build your brand. The top priority of B2B businesses is generating leads. Because of the importance of repeat and referral business, developing these personal relationships can make or break a business. However, 72% of B2B buyers say negative reviews give depth and insight into a product. By responding to the negative and positive reviews, you can tweak your approach to business accordingly.
The goal of B2C marketing is to push consumers to products on your client’s or your company’s website and drive sales. The marketing strategy focuses on selling the product, and most of the time here is on delivering high-quality products at the quickest rate possible. Unlike reviews in B2B business, reviews are buried by an influx of high quality, positive reviews. If your business or client is B2C, and the products you sell are of high quality, this should not be difficult. A popular tactic that has shown to be useful for B2C review collection is through store credit or personalized discount codes through email marketing or remarketing. Branding is a part of B2B marketing, but, more often than in the B2C world, it comes through relationship building. Regarding B2B search marketing, being able to portray where you position yourself in the market and have your personality shine can help drive brand recognition and lead generation.
Branding is essential in marketing because it allows the marketer to precisely deliver a message, create loyalty with the customer, confirm credibility, emotionally connect with the customer, and motivate the buyer to buy. It also is the number one priority of B2C marketing. The decision-making process is another place where you can appeal to the emotional and rational decisions of businesses. In the decision-making process for B2B, it is more open communication between businesses to determine whether it is a good fit for both parties. During the decision-making process, B2B customers must evaluate the company or their individual worker’s needs. At some point, both decisions are important enough to sway their decision. As B2B marketers, understanding your audience can help you understand the decision-making process that may apply to them. The B2C decision-making process is where you can start utilizing their expertise in the conversion funnel to maximize ROI. As a marketer, it is essential that you continue to appeal to the consumer and ways to get them what they are looking for by simplifying the decision-making process. Unless the consumer has made a firm decision to purchase your product, often they look at your competitors to see if they can get similar products quicker and for a better deal.
The higher you rank, the closer you are to bringing customers back to your site. For example, if the customer wants to learn more about electric bikes, they may search for the long-tail variation of the keyword “electric bikes” such as “what is an electric bike. Once the customer learns about the electric bike, they may want to learn about electric bike brands that are trustworthy and high-quality. As a B2C search marketer, make sure that all of these portions of the conversion funnel are covered and targeted by blogs, core pages, and product pages so you have a higher chance of capturing potential customers in the space. Remember, as solid as your conversion funnel is, if your checkout process is confusing, it can turn your customers away and leave room for others to steal them.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath