BUSINESS FEASIBILITY OF BUSINESS TO CONSUMER (B2C) MARKET: A CASE STUDY OF AGRI-CULTURED

• Main Author: Raihan Gilang Laksono, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67767
• Institution: Institut Teknologi Bandung

Agri-Cultured is a company that focuses on solving agricultural problems in Indonesia, starting from the organic waste problem by offering our solution which is an edible coating, an extra layer that coats fruits and vegetables and prolongs their shelf life to reduce the possibility of them getting wasted before being consumed or processed. After market research and market testing, currently Agri-Cultured has low confidence with its business to business target market and still does not have profit. Agri-Cultured plans to pivot the target market to the business to consumer market which is households in Bandung and Jakarta with the end user being married women in the age of 25-55 with middle to upper economic class, the purpose of this study is to determine the financial feasibility of the plan. The research uses a qualitative approach using interviews for the primary data, and related books, journals, articles, and literature reviews for the secondary data. To analyze the financial feasibility of the plan to pivot the target market using the capital budgeting consisted of internal rate of return, payback period, and net present value. The initial investment for the plan above will be financed by paid in capital by the founders for Rp418.335.000,00, the results shown that Agri-Cultured plan to pivot the target market is feasible with a positive NPV of Rp1.806.603.669,81, IRR of 88% which is more than the cost of capital of 10,61%, and payback period of 1,87 years.