Case Study

Case Study: Evaluating Ninjacart as a Distribution Partner for Cherry Fruit Brands in India
a) Estimating Annual Cherry Fruit Consumption in India:
To estimate annual cherry fruit consumption in India, we can start by considering the overall fruit
consumption trends in the country. While cherries are not a staple fruit, their demand has been
growing due to changing consumer preferences, rising disposable income, and increased awareness
of health benefits associated with cherries.
- Population: India has a population of approximately 1.4 billion. Assuming an urban population of
35% (approximately 490 million), the cherry consumption is likely to be higher in urban areas due to
accessibility and affluence.
- Market Penetration: Assuming cherries penetrate 5% of the urban population (24.5 million
consumers) and each consumer purchases an average of 2 kg per year, this results in approximately
49,000 tons of cherries annually.
- Growth Factors: The growth in cherry consumption can be attributed to:
- Increasing health consciousness and preference for exotic fruits.
- Growth in organized retail and e-commerce channels facilitating availability.
- Growing middle-class disposable income.
Based on these factors, it is reasonable to estimate an **annual growth rate** of 8-10% in cherry
consumption over the next 5 years. This rate is driven by the expansion of organized retail,
urbanization, and growing consumer preference for premium fruits.
b) Key Factors Supermarkets in Chennai Evaluate Before Buying Cherries:
To understand supermarket purchasing behaviour, several key factors are considered:
1. Quality and Freshness: Supermarkets prioritize the quality of cherries, including factors like
freshness, colour, size, and firmness. They seek cherries with a longer shelf life.
2. Price Competitiveness: Pricing is crucial, as supermarkets cater to a broad range of consumers.

They need competitive pricing from suppliers like Ninjacart to offer reasonable rates to customers.
3. Supplier Reliability: Supermarkets look for reliable distribution channels that can ensure a
consistent supply, especially during peak demand seasons. Any disruptions can lead to customer
dissatisfaction.
4. Packaging and Branding: Attractive, hygienic packaging and proper branding can influence
purchasing decisions. Supermarkets prefer suppliers that offer packaged products that align with
their quality standards.
5. Logistics and Storage Solutions: Given the perishable nature of cherries, supermarkets require
efficient cold-chain logistics to minimize spoilage. Ninjacart’s ability to provide this will be critical.
6. Customer Preferences and Demand: Supermarkets assess customer demand for cherries, which
may fluctuate seasonally. The ability to predict demand and offer flexible supply options is important.
c) Estimating Number of Supermarkets Buying Cherries in Chennai:
Chennai is a metropolitan city with a strong network of supermarkets, including major players like
Reliance Fresh, Big Bazaar, and local chains. Based on the size of the market:
- Assuming there are approximately 500 supermarkets in Chennai, and based on the growing
demand for premium fruits, it is estimated that 30-40% of these supermarkets would stock cherries.
- Therefore, about 150-200 supermarkets in Chennai may be potential buyers of cherries, depending
on demand, seasonality, and competitive pricing.
d) Estimating Monthly Sales Potential of Selling Cherries in Chennai via Supermarkets (in INR Cr):
To estimate the monthly sales potential:
- Average Selling Price: Cherries in the premium market typically sell for around INR 800-1,000 per kg
in supermarkets.
-Supermarket Consumption: On average, a supermarket might sell 300 kg of cherries per month.
Monthly sales per supermarket = 300 kg * INR 900 = INR 2,70,000

For 150 supermarkets:
Total monthly sales = 150 * 2,70,000 = INR 4,05,00,000 = INR 4.05 Cr per month
Thus, the monthly sales potential for cherries in Chennai via supermarkets could be estimated at INR
4 to 5 Cr.
e) Additional Solutions Ninjacart Can Provide to Boost Cherry Sales in Supermarkets:
Based on Ninjacart’s existing offerings and infrastructure, the following additional solutions could be
proposed:
1. Cold-Chain Logistics Support: Given cherries' perishable nature, Ninjacart can enhance its cold-
chain infrastructure to ensure optimal freshness from farm to supermarket shelves.
2. Real-time Demand Forecasting: Leveraging data analytics, Ninjacart can provide supermarkets with
demand forecasting insights to minimize wastage and manage inventory better, helping them
optimize their cherry stock.
3. Flexible Pricing Models: Introducing dynamic pricing models based on demand and seasonality can
help supermarkets optimize sales during peak and off-peak periods.
4. Branding and Packaging Support: Ninjacart can offer value-added services like customized
branding and eco-friendly packaging for cherries, enhancing their appeal in premium retail
environments.
5. Consumer Awareness Campaigns: Ninjacart could collaborate with supermarkets to launch

awareness campaigns about the health benefits of cherries, driving consumer demand through
targeted promotions and sampling activities.
6. E-Commerce Integration**: Expanding Ninjacart’s presence in online grocery platforms and

integrating with supermarket e-commerce channels can increase the reach and convenience for
cherry buyers.

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Case Study: Evaluating Ninjacart as a Distribution Partner for Cherry Fruit Brands in India

a) Estimating Annual Cherry Fruit Consumption in India:

- Growth Factors: The growth in cherry consumption can be attributed to:

- Increasing health consciousness and preference for exotic fruits.

- Growth in organized retail and e-commerce channels facilitating availability.

- Growing middle-class disposable income.

b) Key Factors Supermarkets in Chennai Evaluate Before Buying Cherries:

To understand supermarket purchasing behaviour, several key factors are considered:

2. Price Competitiveness: Pricing is crucial, as supermarkets cater to a broad range of consumers.

c) Estimating Number of Supermarkets Buying Cherries in Chennai:

To estimate the monthly sales potential:

Monthly sales per supermarket = 300 kg * INR 900 = INR 2,70,000

e) Additional Solutions Ninjacart Can Provide to Boost Cherry Sales in Supermarkets:

5. Consumer Awareness Campaigns: Ninjacart could collaborate with supermarkets to launch

6. E-Commerce Integration**: Expanding Ninjacart’s presence in online grocery platforms and

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