Ans 1.When we enter the age where there is lack of time and healthy food for everyone.

Gourmet To Go (GTG) is the solution to a demanding and time-bound schedule, by offering

family-friendly, nutritiously rich food. Ms. Jones has a new concept for selling grocery and
aims to provide young professionals with high quality nutritional food. GTG provides its
customers all products and services. Meal preparation and shopping for foodstuffs are
offered.
Characteristics : They employ a nutritionist , to ensure the health and that each order is
prepared. They also mentioned all the meal information regarding the food packaging . GTG
supplies meals which can be easily cooked in 20 minutes. GTG products consist of a meal kit
consisting of balanced diets and high quality ingredients. GTG products consult a nutritionist.

Ans 2. As Gourmet to Go is a new concept in grocery market . It is targeting the

consumers that have limited leisure time , high disposal income & willingness to pay for
services . The company’s customers , rival firms , new entrants , substitutes & suppliers
make up the firm’s competitive environment forces . Their selling feature is the premium
quality goods . They have young urban professionals as their customers . Their rival firms
include;-
1. Grocery Store
2. Restaurants
3. Pickup Services for food .
The difference between the rival firms and Gourmet to Go is that first of all there were
only 2 delivery service available out of 660 stores in city . Secondly the delivery was
quite high priced . There were fixed charges for delivery i.e 4$ for minimum inventory
also . No assistance in meal planning was given by others .
 Customers
Young Urban
Proffesional
s

New Entrants Rival Firms

Premium Grocery
Quality food , Gourmet Store,Restau
Monthly menu rants,
, New grocery to Go Service for
marketing pickup &
concept deliver.

Substitutes
Grocery
Stores, Fast
food, pizza
place
.

Ans3: Market Strategy:-

1. The Distribution Process : The Product will be delivered directly to the consumers .
2.Sales Strategy :Advertising will spread across all media and stores . Advertising will be
largest in the first four weeks of business .
Publicity: It’s important for the start-up and newspaper will serve as free publicity .

Ans.4

Start up expenses $54500

Capital equipment list $95,000
Income Statement shows a net loss in year one and in the first three quarters of year two .
Net Cash flow is negative until quarter three of year two when it becomes positive .

From the table, we can see that the total early expenditures are increasing every year by an
amount of $37053 ($198252-$161199) for 1st to 2nd year and by $69870 ($268122-$198252)
for 2nd to 3rd year.
 Carrying Carrying
Carrying Amount
Amount Y2 Amount Y3
Capital Early Y1 after yearly
after yearly after yearly
Equipment Expenditures dep. of Rs
dep. of Rs dep. of Rs
15252(1271*12)
27640(6910*4) 31772(749*4)
Computers:
Apple,
Macintosh
Office System
3 Mac systems $2,000
Laser printer
$1,500
HP2300 series
Networking $1,500
Software $2,000
Total $7,000
Delivery vans,
$65,000
Chevrolet Astro
Food lockers
$20,000
and freezers
Phone system
$1,000
(AT&T)
Furniture and
$3,000
fixtures
$96,000 $79,748 $52,108 $20,336

From the above table we can see that the Carrying amount of Capital Equipment is decreasing
continuously because of depreciation by an amount of $15252 ($95000-$79748) in the first
year, by $27460 ($79748-$52108) in the 2nd year, by $31772 ($52108-$20336) in 3rd year.
 Early
Start up expenses Y1 Y2 Y3
Expenditures
Ad campaign
Ad agency* $2,500
Brochures" $6,500
Radio spots* $7,000
Newspaper ads§ $6,000
Total Advertisement &
$22,000 $13,195 $36,060 $56,550
Promotion
Salaries(including consultants) $25,500 $103,200 $116,388 $164,496
Pre-start-up rent and deposits (insurance, licenses,
$4,000 $29,204 $30,204 $31,476
general offices)
Pre-start-up utilities and
$2,000 $15,600 $15,600 $15,600
miscellaneous supplies
Total Start up Expenses $53,500 $161,199 $198,252 $268,122