Tarlton Beetroot Business Plan — Go-to-Market Strategy
Building buyer relationships from a standing start, and the commercial sequencing behind the volume ramp.
Section 12 of 37
Go-to-Market Strategy
Jump to section
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company, Structure and Stage of Development
- 4. Customer Problem, Value Proposition and Monetisation
- 5. Products, Portfolio and Unit Economics
- 6. Industry Analysis
- 7. Market Analysis and Sizing
- 8. Customer and Channel Analysis
- 9. Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model: Agronomy and Production
- 13. Operating Model: Post-Harvest, Packhouse and Logistics
- 14. Water, Energy and Land: The Three Binding Constraints
- 15. Management and Organisation
- 16. Strategic Plan
- 17. SWOT Analysis
- 18. Risk Analysis and Register
- 19. ESG and Development Impact
- 20. Implementation Roadmap
- 21. Financial Assumptions
- 22. Projected Income Statement
- 23. Projected Balance Sheet
- 24. Projected Cash Flow
- 25. Capital Expenditure and Working Capital
- 26. Funding Requirement and Structure
- 27. Break-even Analysis
- 28. Debt Serviceability
- 29. Investment Returns and Valuation
- 30. Sensitivity and Scenario Analysis
- 31. Phase 3: Processing Optionality
- 32. Key Performance Indicators and Management Dashboard
- 33. Conclusion and Investment Recommendation
- A. Appendix A: Monthly Projections, Year 1
- B. Appendix B: Detailed Assumptions Register
- C. Appendix C: Glossary
Three years of relationship and credential building must be completed before the volume that depends on them exists.
Sequencing
Table 18 Go-to-market sequence by phase
|
Period |
Commercial objective |
Activity |
Success measure |
|---|---|---|---|
|
Year 1 |
Establish a route to market and generate cash |
Appoint a market agent at the Johannesburg market; build three to five informal wholesale relationships; achieve LocalG.A.P. |
Consistent weekly consignments graded at Class 1; 72 per cent of volume placed on the market |
|
Year 2 |
Prove consistency and begin credentialing |
Expand to 3 hectares; commence GLOBALG.A.P.; make first contact with retail category buyers; run one paid trial |
8 per cent of volume placed into a retail trial; certification audit scheduled |
|
Year 3 |
Convert credentials into an agreement |
Complete GLOBALG.A.P.; commission the packhouse; convert one trial into a seasonal supply agreement |
28 per cent of volume in retail; one agreement signed |
|
Year 4 |
Scale the agreement and add a second |
Deliver at volume against the first agreement; secure a second counterparty |
42 per cent of volume in retail; two agreements running |
|
Year 5 |
Consolidate and reduce market dependence |
Optimise mix; hold municipal exposure at or below 22 per cent |
46 per cent retail; blended realisation R8.76/kg |
Pricing strategy
Pricing differs by channel and is not a single decision. Municipal market pricing is not set by the Company at all; it is discovered daily and the Company is a price-taker. Retail pricing is negotiated seasonally, typically as a fixed price for a defined window with a volume commitment on both sides. Informal pricing is set at the farm gate and moves with the market but with a dampened amplitude, modelled at 45 per cent of the market’s seasonal swing. Processing pricing is contracted annually at a low fixed rate because the alternative use of that volume is disposal.
The Company will not attempt to price below competitors. At a cost position of R4.26 per kilogram against large integrated growers who are structurally lower, a price war is unwinnable. Pricing is positioned at or slightly below the certified-supplier band and defended on service consistency.
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