Two Seasons Garlic Business Plan — Go-to-Market Strategy
Winning programme supply with retail and wholesale buyers, the sales cycle and the channel mix at maturity.
Go-to-Market Strategy
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- Overview & contents
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Products and Services
- 6. Industry Analysis
- 7. Market Analysis
- 8. Customer Analysis
- 9. Market and Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis and Strategic Implications
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Model and Revenue Build
- 20. Projected Income Statement
- 21. Projected Balance Sheet
- 22. Projected Cash Flow
- 23. Capital Expenditure and Working Capital
- 24. Funding Requirement and Structure
- 25. Break-Even Analysis
- 26. Investment Case and Returns
- 27. Debt Serviceability
- 28. Sensitivity and Scenario Analysis
- 29. Key Performance Indicators and Management Dashboard
- 30. Conclusion
- A. Appendix A: Assumption Register
- B. Appendix B: Conditions Precedent to the Seed Subscription
- C. Appendix C: Glossary
- 11.1 Channel strategy and migration
- 11.2 Sales funnel
- 11.3 Route to retail
- 11.4 Marketing, pricing, retention and expansion
Move up the channel ladder over five seasons: clear through market agents in FY2027, earn a retail programme by FY2029, and launch peeled food service once the line is commissioned.
11.1 Channel strategy and migration
|
Share of sold volume |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
FY2031 price |
|---|---|---|---|---|---|---|
|
Retail programmes |
30% |
36% |
40% |
42% |
42% |
R63/kg |
|
Wholesale and market agents |
58% |
42% |
30% |
22% |
18% |
R44/kg |
|
SADC export |
12% |
14% |
16% |
17% |
17% |
R53/kg less R7 freight |
|
Peeled food service |
0% |
8% |
14% |
19% |
23% |
R121/kg peeled (68% recovery) |
Table 21. Channel mix migration.
In FY2027 the company has little volume, no packing facility and no track record, so most of the crop clears through market agents at wholesale prices. As packing capacity and supply reliability build, volume shifts into retail programmes at a premium, and later into peeled food-service product. The wholesale channel never disappears and should not: it absorbs volume that fails retail specification, clears surplus in a heavy season without forcing a discount on the programme price, and provides a price reference. It is a valve, not a failure.
11.2 Sales funnel
|
Stage |
Retail |
Food service (peeled) |
SADC export |
|---|---|---|---|
|
Leads |
4 national groups; 8 regional chains |
6 distributors; 10 restaurant groups |
12 importers across 5 markets |
|
Prospects (engaged) |
3 groups; 4 chains |
4 distributors; 4 groups |
6 importers |
|
Trial / sampling |
2 groups trial FY2028 |
3 distributors sample FY2029 |
4 trial shipments FY2028 |
|
Conversion |
2 programme listings by FY2029 (50% of prospects) |
3 distributors + 2 groups contracted by FY2030 |
4 agency agreements |
|
Customers FY2031 |
2 groups + 3–4 chains |
3 distributors + 2 groups |
4 importers |
|
Repeat / programme renewal |
Annual; target 90% renewal |
Annual contracts; target 85% |
Seasonal; target 75% |
|
FY2031 revenue |
R22.1m |
R15.8m |
R7.5m |
Table 22. Sales funnel by channel: Leads → Prospects → Conversion → Customers → Repeat → Revenue.
11.3 Route to retail
A retail listing for a domestic grower requires four things in sequence: a supply window long enough to programme; a packhouse audited to the retailer’s food-safety standard; consistent calibre grading; and a price that survives comparison with landed imports. The company addresses the first through the two-block structure, the second and third through the FY2028 packhouse investment, and the fourth through the trade remedy and the freshness proposition. The sequencing matters for the funding structure: Series A is timed to month 14 precisely because that is when packhouse capital is required, and the packhouse is the precondition for the listing that carries the plan’s price assumption.
11.4 Marketing, pricing, retention and expansion
- Marketing. Trade-focused, not consumer-focused: retailer QA visits, trade-show presence, samples to distributors, and a provenance story (two regions, one supplier) that retailers can use on-pack. Budget R1.98m by FY2031 including programme management.
- Pricing. Season-long price frameworks with retailers anchored to landed import parity plus a 5–10% local premium; peeled priced at a 10% premium to imported peeled for shelf life; wholesale at market; export priced by destination.
- Retention and cross-selling. Supply reliability is the retention strategy. Retail accounts are cross-sold peeled product once the line is live; food-service distributors are offered whole bulbs for kitchen use.
- Geographic expansion. Beyond SADC is not modelled. European access is governed by tariff-rate quotas with substantial out-of-quota duties, and the northern-hemisphere calendar means South African fresh garlic would arrive against stored product rather than into a seasonal gap.
- Digital. A lot-level traceability system with QR-coded packs provides the data retailers require and supports the provenance claim; no consumer-facing digital spend is assumed.
