Agenda for Business Strategy Meeting of SpiceUp

Background:
We are already at the stage where we understand and validate the needs of potential
customers. Next, we discussed on the list of priority business model that we will pursue in the
next business development activity.

Agenda:
This business development meeting agenda are:
1. Discussing the overview of potential customers/clients and the next step to approach
them (20 minutes)
2. Discussing about which business model should be our priority and why (20 minutes)
3. Discussing about what and how are we going to formulate the business proposition to
the customer based on that business model (20 minutes)
4. Discussing the plan of establishing PT. SpiceUp company (20 minutes)
5. Discussing the target and time planning of the WP5 team (10 minutes)

Expected outcome:
1. Draft planning of next steps to be taken based on the overview of potential
customers/clients/partners
2. List of priority business model to be pursued by the WP5 team and the business
proposition to be communicated with the potential customers/clients/partners
3. Draft planning of the next step to be taken in the establishment of PT. SpiceUp
4. Draft of WP5 planning and targets

Content:
These are the content to be discussed in the next meeting:

Overview of Potential Customer/Clients/Partners of SpiceUp

Potential Business
Name Progress Next Step
Model

Agri Input Suppliers

First meeting already

Market trend for their
BASF conducted to understand To be discussed
product
their needs and interests

Partnership scheme First meeting already

Pupuk Kaltim with banks and off- conducted to understand To be discussed
taker their needs and interests

Training tool business First meeting already

PT. Petrokimia To be discussed
model conducted to understand
 Partnership scheme their needs and interests
with banks

Still trying to conduct the

YARA To be confirmed To be discussed
first meeting

Bundling with agri-

input, SpiceUp acts
Agri-Input distributor First meeting already as a distributor of
CISBAY conducted to understand
business model agri-input,
their needs and interests
partnering with input
suppliers

Financial Institution

First meeting already

Giving the list of
BRI conducted to understand To be discussed
bankable farmers
their needs and interests

Partner up for credit First meeting already

Financial
risk assessment conducted to understand To be discussed
Access (FACS)
business model their needs and interests

Still trying to conduct the

ICCO Terrafina To be confirmed To be discussed
first meeting

First meeting already

Giving the list of
CROWDE conducted to understand To be discussed
bankable farmers
their needs and interests

First meeting already

IGrow To be discussed conducted to understand To be discussed
their needs and interests

Giving the list of Still trying to conduct the

Jasindo To be discussed
insurable farmers first meeting

Giving the list of Still trying to conduct the

BNI To be discussed
bankable farmers first meeting

Pepper Off-taker

Traceability Business
Model
PT. CAN Data business model: To be confirmed To be confirmed
intelligence on local
market trend and
 estimation of market
demand

Training tool business

model

Traceability Business
Model

Data business model:

intelligence on local
Verstegen market trend and To be confirmed To be confirmed
estimation of market
demand

Training tool business

model

NGOs and other organizations

Survey and/or training

ICCO To be confirmed To be confirmed
tool business model

Partner up for credit First meeting already

HARA risk assessment conducted to understand To be discussed
business model their needs and interests

Providing Traceability First meeting already

PKN-ICDX conducted to understand To be discussed
Service
their needs and interests

Training tool business Still trying to conduct the

OLAM To be discussed
model first meeting

Partner up for training

Still trying to conduct the
GIZ/Nestle farmers who grow both To be discussed
first meeting
cocoa and pepper

Harris Still trying to conduct the

To be confirmed To be discussed
Freeman first meeting

Overview of potential business model options of SpiceUp

Business Model Target Customer Value proposition Potential Execution

 GAP training (offline and
To be discussed
online?)

Freemium Business Increased productivity

Pepper farmers Cutting from the
Model and being adaptive to
harvest result
climate change

Market info (?) To be discussed

Based on current
Providing SpiceUp could finding needs lots of
Loyalty business Pepper buyer be used as a tool to effort to make it work.
model and/or collector retain the loyalty of their Personally, does not
farmers worth the investment
needed

Possible to be built
Local market trend and
Pepper Off-Taker estimation of market
demand
Start with the need of
Verstegen & PT. CAN

Piloting partner with

Local market trend and
fertilizer in the demo
Data Business Agri Input Supplier estimation of market
plot and in the B2B
Model demand
service

Need investment for

field agent and credit
assessor personnel

Financial Same business model

Credit risk assessment
Institutions as FACS

Potential buyer are

local banks, BNI, and
Mandiri

SpiceUp is used as a Need investment for a

Survey, training,
Company/NGOs tool to conduct online survey feature in the
and/or
survey to spice farmers app
communication tool ICCO as customer?
business model
Need investment for
personnel on the
ground

Digital GAP training is

helpful but people in
SpiceUp is used as a the ground is still
tool to conduct training needed
to spice farmers
Piloting with ICCO and
PT. CAN?

Need investment for a

communication feature
in the app
SpiceUp is used as a
communication tool for Need investment for
companies/NGOs that personnel on the
want to outreach the ground
spice farmers
Piloting with ICCO and
PT. CAN?

Piloting with PT. CAN?

Helping companies to
sell traceable pepper to Need investment for
Pepper off-taker
other exporter/importer field agent in the field
(US or Japan market) to manage the data
collection
Traceability
Business Model Piloting with PKN-
ICDX?
Provide traceability
Other commodity service to other Need investment for
off-taker commodity and other field agent in the field
company
to manage the data
collection

Bundling with agri-

Individual farmers /
Agri-Input input, SpiceUp acts as
farmer Selling bundled SpiceUp
Distributor Business a distributor of agri-
cooperatives / and agri-input product
Model input, partnering with
farmer contracts
input suppliers
 Setting up a pilot with
fertilizer company in
the demo plot, in the
fertilizer advice feature,
and in the B2B service

B2B Customer Acquisition for SpiceUp

I. Purpose: Acquiring and interacting with B2B clients can be done in a structured manner that
can easily be coordinated among different consortium members. This paper describes the
strategy for reaching out to potential B2B clients.

II. Process: B2B Customer Acquisition for SpiceUp

STAGE STEP DESCRIPTION

Educate clients about SpiceUp, its features and other information products
that is relevant for their businesses. Answer questions. Goal is to convert
Awareness prospects with limited knowledge about SpiceUp to somebody who wants
to know more. Use SU leaflets, newsletters, pitchbooks, videos, website,
Leads and others.

Potential clients who became aware of SpiceUp now show interest. They
request more information via email, phone or other ways. Be ready to
Interest
provide more in-depth and detail how your product can help solve a specific
problem.

Potential clients now realise that SpiceUp might be useful. We now have
to convince the client in getting/paying for SpiceUp services. Develop a
Consideration customized marketing package and value proposition for the client.
Information has to be more specific, like benefits for the company, which
services and information products are relevant; get support from WP2/WP3.
Ex. meet client/present PPT;
Prospects
Prospects are now only a step away from making a purchase. At this point
you can reassure them that your product is the best there is by providing
reviews, testimonials, product demos, data sheets for comparison, case
Evaluation
studies that show how you’ve helped others to achieve their goals. Submit
an MoU or contract of the proposed collaboration. Get support from
WP2/WP3

Customer Purchase Client signs the contract/MoU, pays for SpiceUp services

III. Key Documents

1. Client Mapping: identification of target prospects/leads. Who are the potential customers
for SpiceUp. Who and where are they. Find ways how to contact the clients. Do research,
survey, call, email to find right customers for SpiceUp. Use existing networks of consortium
partners.
https://docs.google.com/document/d/1q0boZd2o4A4-nA26oTie-
x_e4IN9_3wHsBaLkU4_X6g/edit?usp=sharing

2. SpiceUp Customer Relationship Management

Describes the companies we are targeting, the contact persons, and an overview of the status
of customer acquisition.
https://drive.google.com/open?id=1Bh2X8YABh4cqzUcz3g_-R3-k6dvk-Dnb5-K27Glg_JE

Client Mapping and Agenda

This client mapping is based on desk research about the supply chain of pepper. So far, I have
identified all stakeholders in the supply chain in Bangka and the next step is to interview the B2B
about their needs using the form that I have created. The output of the interview will be used to
determine the value proposition for B2B clients. We can classify the potential B2B clients into 4
categories which are:

1. Pepper off taker / buyer

Topic to discuss with them:
● Validating their needs for a loyalty service through SpiceUp
● Validating their needs for a sustainability tracking service
● Validating their needs for a farmer insight service
● Validating their needs for an in-app advertising service

Company Products Priority Plan Progress

Village Pepper Contacting Pak
Collector (local small Processed and Field research and Saepul from PT.
High
volume) (30% of all packaged pepper Interview CAN in the field as
collectors) our leads to connect
 Skype Interview
PT. CAN and other
Processed and Field research and with Pak Hatami
companies? (local big High
packaged pepper interview from PT. CAN next
volume) (70%)
week

Contacting Pak
Pepper seedling Field research and Saepul from PT.
Pepper seedling Medium
supplier interview CAN in the field as
our leads to connect

2. Farm Equipment Supplier

Topic to discuss with them:
● Validating their needs for a loyalty service of SpiceUp
● Validating their needs for a farmer insight service
● Validating their needs for an in-app advertising service

Company Products Priority Plan Progress

Contacting Pak
Farm equipment Farm Field research and Saepul from PT.
Low
suppliers equipment interview CAN in the field as
our leads to connect
Contacting Pak
Soil testing Field research and Saepul from PT.
Soil tester company Low
services interview CAN in the field as
our leads to connect

3. Farm Input Supplier

Topic to discuss with them:
● Validating their needs for a loyalty service through SpiceUp
● Validating their needs for a sustainability tracking service
● Validating their needs for a farmer insight service
 ● Validating their needs for a soil map and weather data insight service
● Validating their needs for an in-app advertising service

Company Products Priority Plan Progress

Organic fertilizer,
PT. NASA (some organic pesticide, B2B needs Trying to establish
Medium
distributor in bangka) plant hormones and interview initial contact
soil supplement
Urea and Humat,
NPK fertilizer,
Trying to establish
Decomposer, B2B needs
PT. PUSRI High contact through
Biopesticide, interview
Pupuk Kaltim
Micronutrient
fertilizer
Trying to set-up
Chemical and B2B needs meeting
PT. Pupuk Kujang High
organic fertilizer interview appointment for
January 2019
B2B needs Trying to establish
PT. Maxi Grow Babel Biofertilizer Medium
interview initial contact
Water for irrigation B2B needs Trying to establish
Water supplier, if any Low
service interview initial contact
Trying to establish
B2B needs initial contact
Meroke Tetap Jaya Fertilizer High
interview through
SMARTseeds

4. Financial Institutions
Topic to discuss with them:
● Validating their needs for a farmer insight service
● Validating their needs for a weather data insight service
 ● Validating their needs for an in-app advertising service

Company Products Priority Plan Progress

Trying to establish
B2B needs initial contact
BNI Loan High
interview through Pupuk
Kaltim
B2B needs Trying to establish
BRI KUR loan Medium
interview contact
Trying to follow
B2B needs up the last meeting
Mandiri Syariah KUR loan High
interview with B2B needs
interview
B2B needs Trying to establish
BPRD Bangka KUR loan Medium
interview initial contact
Trying to set-up a
B2B needs skype call to
Crowde P2P lending High
interview interview their
business needs

5. NGOs and Gov’t

Topic to discuss with them:
● Validating their needs for a sustainability tracking service
● Validating their needs for a farmer insight service

Company Products Priority Plan Progress

International Trying to
Community of Pepper B2B needs
Pepper Low establish initial
Stakeholders interview
Community contact
 Community of Trying to
Asosiasi Petani B2B needs
Indonesian Pepper Low establish initial
Lada Indonesia interview
Farmer contact

Trying to
White Pepper B2B needs
UNIPRO Low establish initial
Marketing, Amsterdam interview
contact

Trying to
Black Pepper B2B needs
CITC Low establish initial
Marketing, New York interview
contact

Value Proposition for Farmers

From our point of view, SpiceUp has two different services for two different clients which are
service for farmers and service for business. This report focuses on developing value proposition
for the farmers as they are the main user of the app. The B2B services will not be available if the
app is not being used regularly by farmers, therefore, I think that the first focus should be on
building a really good app that can solve the problem of farmers, so that they are voluntarily use
it. Regarding the business model, potential business model of SpiceUp can be summarized into the
graph below:
The value proposition is formulated by considering the farmer needs as we identified during the
preliminary research and the baseline research. To systematically formulate the proposition, I used
the concept of value proposition canvas. The process includes defining what are the customer jobs,
pains, gains and what we can offer to address that. The sample of value proposition canvas scheme
is shown below.
After defining what are the value propositions, the next question that we are trying to answer in
this report is which feature should be made as priority. To easily compare between each feature, I
proposed several variables/factors that I think important such as cost, technical feasibility (easiness
to build), impact, performance, risk
1. GAP Feature

Value Proposition: Provide customized and complete GAP info with vernacular language for
farmers and training to enhance the GAP skills (offline training? online training? video? picture?
podcast? downloadable material to go?)

Customer Jobs

Having optimal yield of pepper that meets the standard quality of export market

Pains Pain Reliever

● No easily accessible, understandable,

and customized information about GAP
of Pepper and lack of GAP skills. This
includes info and skills about:
○ Basic instruction on how to grow
● Customized GAP info in a mobile app that
pepper i.e how to prepare land and
can be easily understood
apply fertilizer, seed quality info
● Specific to pest and diseases feature, there
○ Pest & Disease: diagnosis and
is an option to use land temperature as an
treatment; proper application of
indication of the risk for pest and diseases.
pesticides, use of biological,
Is this technically feasible?
physical and chemical means to
Source: https://www.bbc.com/news/science-
prevent and treat pest and disease
environment-46370601
infestations
○ Pepper productivity gradually
decreasing because of foot rot
diseases and viral and pest
infestations
 ○ High incidence of pests and
diseases. Phytophthora foot rot (~
30% yield loss) and yellowing are
the most dangerous diseases and
foot rot disease, yellow disease,
stem borers, pepper bugs, and
blossom bugs.
● Chemical management: proper way of
buying, storing, preparing, applying
and disposing pesticides and
insecticides to prevent harmful
chemical residues on pepper produce.
(Improper use of pesticides which led
to quality issues faced in export
market)
● Improper use of pesticides which led
to quality issues faced in export
market

Gains Gain Creator

● Easy and cheap access to GAP info and

training
● Sustainable production
(environmentally, economically, and ● Provide affordable or free access to
socially) customized GAP advice and GAP online
● Easy to get sustainable standard training
certification ● Reliable GAP advice
● Efficient and effective use of pesticide
and other kind of inputs (potentially
saving some costs)
Possible Business Model:
● Freemium business model for farmers
● Loyalty business model for pepper buyers, collectors, exporter, and financial institution
● Inclusive business model with pesticide, seed, and farm equipment supplier
2. Water Management Advice and Weather Forecast

Value Proposition: Provide customized irrigation advice and weather info in vernacular
language.

Customer Jobs

Increase productivity and maintain yield stability by anticipating the uncertainty of weather

Pains Pain Reliever

No easily accessible and understandable

information available about soil moisture
● Customized advice on water needs based on
and weather
the data of soil moisture and weather in the
● Pepper productivity gradually
app with vernacular language
decreasing because climatic
● Weekly forecast of rainfall in the area
changes
● Reliable data of soil moisture and water
● Hard to forecast rainfall to decide
when to fertilize

Gains Gain Creator

● Affordable or free access to reliable

and timely soil moisture and
weather data
● Anticipating severe drought that
might happen
● Increased productivity
● Free (affordable) info services delivered
through mobile app which provides info
about water needs, weather forecast, and
drought alert

Possible Business Model:

● Freemium business model for farmers
● Loyalty business model for pepper buyers, collectors, exporter, and financial institution
3. Fertilizer Advice

Value Proposition: Provide customized fertilizer advice in vernacular language which takes into
account the soil nutrient availability, plant characteristics and weather forecast

Customer Jobs

Grow the plant optimally to reach its genetic potential

Pains Pain Reliever

● Little access and costly soil lab test

● Nutrient Deficiency due to
underfertilzation Easily accessed and understood fertilizer
● High cost for fertilizer input advice that takes into account plant needs,
● No easily accessible and understandable soil condition, and weather forecast
info on what, how much, and how the
fertilizer should be applied.

Gains Gain Creator

● Free or affordable access to soil nutrient

Automated calculation of plant fertilizer
and weather forecast data
needs based on the soil map data and plant
● Effective and efficient use of fertilizer
characteristics and application advice based
which potentially reduce cost and increase
on the weather forecast presented in
margin
vernacular language
● Optimal growth and yield

Possible Business Model:

● Freemium business model for farmers
● Loyalty business model for pepper buyers, collectors, exporter, and financial institution
● Inclusive business model with the fertilizer company
4. Sustainability Tracing System

Value proposition: The system allows for the registration and tracing of pepper produced by
farmers in the project locations, including sustainability info at plot level

Customer Jobs

Deliver safe, good quality pepper that can be fully traced to the source so that it meets the
export standard

Pains Pain reliever

● Annoying when their produce cannot be

exported because it does not meet the
traceability standard
○ Information on traceability is
required by international food safety
managements systems like BRC and An integrated system that can easily and
FSSC 22000. quickly collect, store, and share traceability
● Manual system of data recording is data about a farm until the plot level
complicated and involved a lot of
paperworks for traceability
● Outside Verstegen there is limited
transparency between buyers and
suppliers of pepper

Gains Gain Creator

● Higher price for their product

The system tracks and provides information
● Sustainable production (environmentally,
about the production and collection of pepper
economically, and socially)
in a database which can easily be updated,
● Easier to get a sustainability standard as
accessed, and traced.
all the data is recorded in one database
Possible Business Model:
● Direct fee business model for pepper buyers, collectors, and exporter

Potential Features to be Considered

With current features there is a high potential that the customer acquisition would be hard because
there is no feature that the farmer will potentially use in a daily basis voluntarily. Based on the
preliminary research and baseline data, there are some needs of farmers that can be solved by
adding some extra features in our app. An extra feature that could be interesting is market info
(trend of price) features to better inform farmers about price fluctuation. Based on Dhimas
observation in the facebook group of pepper farmers, almost every week there must be some
farmers asking update about the price of pepper. It means that there are no easily accessible source
of information about price of pepper in the world market as well as in the different areas in
Indonesia. Therefore, I think this feature could be a solution to fix that information gap. Price info
would help farmer in making decision such as deciding whether to plant/rejuvenate pepper or not
and deciding type of farming that they will do, less intensive or intensive pepper farming
considering the capital that they have.
Comparison of Each Value Proposition:
I included some factors which I think important as a consideration to decide which feature should
be prioritized. Each proposition is ranked on each factors. The highest rank (5) is given to the
feature with highest preference for each factor. For instance, rank 5 is given to the GAP advice
feature on technical feasibility factor because it potentially is the most easy feature to be build.
The proposition with the highest rank in average from the others (lowest accumulation point) is
going to be selected as the proposition to be prioritized.

Factors Technical Cost Actual Risk Impact Project ? Total

Value Feasibility Needs Needs
Proposition
Weight x3 x1 x3 x1 x2 x3 ?

GAP advice (N&S ? ? ? 13

Pest and disease advice ? ? ? 33

(N&S

Irrigation advice and ? ? ? 14

weather forecast (N&S,
Vandersat

Fertilizer advice (N&S, ? ? ? 39

Sustainability Tracking ? ? ? 30
System ((N&S, Akvo,
Value Propositions of SpiceUp
For the past few weeks, WP5 has done an interview and survey with the partners within the WP3
to determine which features of SpiceUp would be the strongest value proposition considering
several factors both technical and non-technical factors.

The result of the mini-research is presented in the table below:

Technical Actual Project

Factors Cost Impact
Feasibility Needs Needs
Value Total
Proposition Weight x3 x1 x3 x2 x2

GAP advice 2 5 4 4 2 35

Pest and disease advice

4/3 = 3.5 3 5 5 3 44.5
(based on risk index)

Irrigation advice and

3/4 = 3.5 2/3 = 2.5 2 1 4 29
weather forecast

Fertilizer advice
5 4 3 3 5 44

Sustainability Tracking
1 1 1 2 1 13
System

Description of Criteria:
1. Technical Feasibility: how difficult is it to develop the advice in terms of level of effort
and time needed (easiness and feasibility of the feature to be build)
2. Cost: the amount of resources (human, financial, equipment) needed to develop the product
3. Actual Needs: ratings from the farmers/users’ perspective (based on the preliminary
research and baseline study)
4. Impact: the potential benefit the service will provide to the farmers/user
5. Project Needs: how this service fulfills the expectations of the project/NSO

Based on the result above, it can be concluded that the two strongest value proposition that we
have are the Pest and Disease Advice and Fertilizer Advice. This mainly because both of them are
technically quite feasible and needed by the farmers. Furthermore, both are also align with the
project needs set by NSO.
The GAP advice ranked number third while the irrigation advice ranked number fourth. Although,
GAP advice is not something that involve geo-data technology, this feature is needed by farmers
and potentially give a high impact while at the same time quite cheap to be build. However, there
is still unclarity whether we will build dynamic or static feature and whether we will link it with
IPC app or not. More clarity about this is needed to formulate the right value proposition and
business model of this feature.

The traceability feature was ranked number 5th. The low ranks of the sustainable tracking system
from the technical point of view is not because it is hard to be build but more because there is some
unclarity about the how the product might look like. Based on my discussion with some partners
involved, I got an impression that every partners are still not in the same page regarding this
feature. Therefore, there is an urgency for every partners in WP3, who are involved in this feature,
to establish a new level of clarity about what we can and what we will offer in this feature. It would
also help us from WP5 to formulate the right value proposition and business model for this feature.

From technical point of view, assuming that the concept of traceability feature is clear, actually
this feature could rank higher because some infrastructure is already in place. The challenge is
basically to integrate each infrastructure which, at least based on some partners, should not be a
huge problems. The other challenge would be on the integration of the system within the app
infrastructure.