Cost Analysis (Strategic Partnership)

Indian Railways

Serial n

Type

1 Indian Railways
2

Cost towards discount to

Colleges

Cost towards discount to

Office
Sub total (A)

Type

Units
passenger per
train per month

Students per
month
Customers
per month

Units

1
2
3

Mall Promotions
Social Media
Pamphlet Distribution

Month
number
number

Cost towards discount to

Colleges
Sub Total (B)

percentage

Total Cost (A+B)

Unit
Number of
Price
Passenger/SQty of Pizza
of
tudents
Pizza
51,840

15,033,600

75

150,000

525,000

75

150,000

225,000

75

Number of
Persons
required
300
120
750

1000

Note:
From Primary Research
1. Considering that there are 120 passenger trains on Delhi-Howrah route some 90 passen
number of freight trains run on Delhi-Mumbai corridor daily. Out of these 50-60% train run
cities i.e. 116 (55% of 210 trains).
2. XYZ pizza ltd will be partnering with Indian Railways for catering for these 16 trains targ
middle class customers while they are on board.
3. Considering 15 persons allotted to area where "Potential Customers" resides and 10 per
"Frequent and Repeated Customers".
4. Assuming that promotional marketing through startegic partnership will cost XYZ pizza
share.
From

rship)

Total Cost

Revenue Share of
XYZ
(75% is being
kept by XYZ
Pizza)

1,127,520,000

845,640,000

39,375,000

29,531,250

16,875,000

12,656,250
887,827,500

Per Day Cost

of One Person
500
1000
150

150,000
120,000
112,500

525

525,000
907,500

888,735,000

e some 90 passenger services and an equal

50-60% train run/cross Tier 2 and Tier 3

hese 16 trains targetting middle and upper

esides and 10 persons required for

ill cost XYZ pizza 25% of its total revenue

social media, mall, pamphlet, corpora

pamphlet, corporates, coll,