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Table of Contents
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Executive Summary
Calorie express is going to be a food store that will aim at targeting the health
conscious people and people suffering from other food related health concerns as there
is a growing tendency all around the globe towards increased dietary diseases like
diabetes, obesity and hypertension. This store will aim at building a portfolio of all types
of healthy foods, ranging from fresh eatables to canned and packed foods, dairy and
poultry product. With Calorie express one can have every thing related to food under
one roof!
This store will be opened under a partnership deed by four members, namely
Janrdhan, Srinivas Sudhakar, seshu of them sharing equal investments and profits of the
business.
The project will target people of all age groups as health is everyone’s right.
However, marketing strategies will be targeted differently for different age groups,
according to other behavioral patterns. The media utilized will be all types of print and
awareness.
which every member will equally contribute. In case of inadequate funds, additional
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This store has ample opportunities of growth as no one at present is supplying all
types of healthy and plainly nutritious foods under one roof. Although there is always a
we however, aim to create our competitive edge our superior customer service
and quality. This will help us maintain a loyal, satisfied customer base. In short, this will
Operational Plan
customers who are health conscious as well as those who have been suffering from
health related issues due to unhealthy diet. These people can come and buy all they
Mission Statement:
targeting people specifically facing health concerns by providing them food that is safe,
healthy and wholesome, all under one roof. We aim at building a healthier future.”
Vision:
“To build a healthier tomorrow and lead the food industry with our healthy food
chains.”
Company Objectives:
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• To capture 25% of the local market share of health food sector by 2013.
• To lead the food industry by projecting a healthy image of the outlet for every
individual.
Form of Ownership:
There are four members who plan to start up this venture. Therefore, Calorie
Market Analysis:
We aim at targeting customers segmented on the basis of their health, age, and
lifestyle.
• Demographic segmentation:
conscious.
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• Psychographic segmentation:
We will target customers on the basis of their lifestyle. People who wish
• Geographic segmentation:
distribution. Initially we will setup our business in Hyderabad and then we will
Competitors Analysis
At present, Calorie express does not face direct rivalry from any of its
competitors. There is no other outlet present that serves to provide all dietary products
at one place.
However, we do face indirect competition from local markets that provide such
products but not on a solitary basis and not under one roof. Moreover, other bodies
Strategy
We will be pursuing certain strategies that will enable us to attain our long-term
mostly via print media to develop our customer market. We will be value pricing our
products, that is, we will be offering just the right combination of quality and good
services at a fair price. We will be maintaining good relationship with all channel
members.
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Board of
Directors
2 Sales Persons
Organizational hierarchy:
The hierarchy will consist of the board of Directors who will the four partners of the
store. These four members will respectively control the four major domains of
Calorie express is a departmental store and hence involved in the services sector. Calorie
project a healthy image of its departmental store by providing products that are low in
It is a retail store that provides all kinds of products from fresh to canned
dietary and nutritional foods. The store includes all kinds of products – dairy products,
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cereals, grains and pastas, meat, fish and poultry (with decreased fat content), baked
foods, snacks and organic sweets and juices, oils(low cholesterol), salad dressings,
fresh eatables, and other miscellaneous items. You name it, we have it.
Operational Plan
The operational plan of Calorie express will cover all the major daily operations
of the store plus all that will be required to make Calorie express working.
Supply Cycle:
Calorie express is a departmental store so it will mostly contain items that are
secondary and not produced by Calorie express. Hence, its supply of products is be
maintained by outside suppliers. The store currently operates with two suppliers, one as
the major supplier and the other as a back-up in case of shortage or immediate
increased demands. For fresh eatables, the store will have another separate supply
Its supply cycle will start from obtaining products from the suppliers, storing it in
the inventory house, and the finally after careful listing, transferring these products on
the store’s shelves. Moreover, the store also aims to obtain health products that are
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2: storing the 3: listing all the
products in the invent
inventory maintaining
house stock record
1: obtaining 4: transferring
materials from the products to
suppliers the Shelves of
the store for the
customer
ory for
Figure 1: Cycle of supply chain.
Location:
Hyderabad) – the hub of all commercial centers in the city. The location is feasible for
everyone and easy to access as well. Moreover, Calorie express will attempt to create its
own parking allotment for its valued customers. The total area of the store is presently
2000 square foot. In case of increased demand the store will increase its chain in other
areas of the city and then the province. Moreover, this area is strategic in terms of less
power shortage being a commercial center. The hours of operation are initially from
Legal Environment:
The legal environment includes the store owners’ legal partnership deed, the
outlet’s trademark registration, compliances with the ILO, and insurance coverage for
the building, furniture and other equipment as well as possession of the legal
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documents of the area on which the outlet is built, proper filing with the tax department
and registration for other utilities like electricity, land line etc.
Personnel:
Calorie express will fulfill its employee requirements through advertisements for
vacancy. Proper hiring and selection procedures will be followed. These employees
shelf attendants – 2 males and one female, 1 security in-charge, 1 accountant, 2 sales
persons as well as unskilled personnel like 2 sweepers, 2 cleaners. All these employees
will go through professional training, individually for every member of the staff –
hygiene and efficiency; cooperation and courtesy training counter attendants, efficiency
and tidiness for the cleaners etc. Moreover, to ensure quality service, proper job
description is provided to each operating position and verbal addressing is also provided
Employee strengths:
The strength of the employees at Calorie express lies in their extensive training
towards delivering quality. Moreover, there are no static rules and regulations to be
followed and every employee is responsible for his or her action. As Calorie express
believes in freedom of expression and equal rights, therefore, every employee has a
partial say in the working and improvement of the outlet. This trust vested in employees
gives them a sense of belonging and pride and enables them to perform even better.
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Inventory:
Calorie express’s major inventory stock is collected at different time periods. For
vegetables, meats and fishes, daily stock is collected. For fruits stock is collected on
alternate days. For other storage items bi-monthly stock is collected and stored in the
storage/inventory house. The prices of these items are subject to market trends.
Moreover, the store follows value-pricing strategy for the ease of the customer.
The inventory in-charge is responsible for the assembling and monitoring the
Supplier:
Calorie express purchases its meat and beef from Zenith and fruits and
vegetables from the local market. For other packed foods, Calorie express is linked with
one or two major suppliers for on-time delivery of every kind of canned, packed or
processed food. Like everywhere in the world, these suppliers initially provided the
supplies on credit which would later be paid from the profit on sales. However, a back
on time. Further, supply rates are fixed and mentioned in the appendices. We will also
deal with international suppliers for products that are not available here.
computers, counter cash managers, security cameras, large display plasma television for
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Facility layout:
All our employees are thoroughly trained to deliver the highest level of excellent
service. Our attendants are always present to answer the valued customers’ queries, our
counter staff is highly trained to be fast, efficient and still carry a smiling face; which is
the insignia of our customer service – smile because the customer wants you to.
Quality deliverance
Calorie express strives to maintain the quality its products. With one satisfied
healthy customer comes another new customer. But with every single dissatisfied
customer, four prospective customers are lost. With its vision being the provision of a
healthier tomorrow, Calorie express makes sure it registers itself with the food and
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quality control department periodically. Moreover, all food items are monitored after
alternate days for expiry dates, new brands, and change in package’s shape or color due
to pressure or humidity. Fresh items are checked regularly for freshness, quality and
cleanliness.
Marketing Plan
Market Research
We have carried out a detailed market research. We have visited the local renowned
departmental stores in order to get an idea of the range of the health products that they
are offering and the strategy they are following in this category of food products. We
observed that the variety was very limited. We also contacted a few fitness and
slimming centers like VLCC etc.. to see what kind of response these businesses are
getting because this would give us a potential insight into our the prospective customer
segment’s size. We found that the response was tremendous and has only grown in the
past few years. As one of the most famous fitness center in Hyderabad mentioned that
the customer base grew from a 1000 in 1986 to 5.9 million in 2008.
Questionnaires:
towards healthier eating habits and receive a very positive response. This is a very
promising trend for our venture as well because we have a common and growing
customer base.
later ).
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Competitor Analysis
In India, and for that matter, in the whole world, no business has been started off which
specifically targets the health-conscious segment of the market and strives to fulfill their
needs. There are countless businesses that provide simple food products that are for
most of the time high in fat and sugar contents. So we do not have any direct
competitors.
Our indirect competitors are numerous and include all businesses that offer any variety
• Decent Store
• Bon vivant
• Pharmacies
• All other stores or outlets, small or big, those offer health products.
However, there are some outlets that do, provide the same services in some way or
the other. But the portfolio at these stores is very limited and they are not just a
specific group of people and we would be serving them in a way in which no venture has
previously attempted to serve them. Comparing our portfolio to the limited varieties
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These stores, who may serve as direct competitors, too are not providing a portfolio as
wide and deep as ours. This too, at present will give us an edge over these outlets.
Moreover there marketing and promotional activities are very insufficient. In fact they
have very low consumer awareness. Hence, it will be comparatively easier for us to
Competitive Advantage
We would be offering a huge variety and a deep assortment of health products under
one roof. We would be a “category killer” We will cash in on the fact that we are
providing a broad range of healthy food products that are highly beneficial to those
Brand name: The brand name of our retail outlet is Calorie express.
Logo:
We are urging people to change their eating habits and lifestyles in order to lead a
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SWOT Analysis:
Strengths:
1. Trend setters in the health market: Calorie express is the first store to provide all
types nutritious, safe and healthy products. No business has as yet attempted to
2. A wide product range: We will provide all kind of foods from fresh eatables to
processed food.
3. Health benefits: All products at Calorie express will be nutritious, with minimum
4. All healthy products of all companies under one roof: There are several
businesses that are offering certain healthy food products but none of them is
Weaknesses:
1. Low consumer attention: since the business has not yet started its marketing
are starting this venture. Therefore, we don’t have any market exposure.
3. Low consumer loyalty: the customer loyalty is low because the business has not
started yet.
being young students belonging to the middle class, do not own large financial
resources.
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Opportunities:
People have started recognizing the various health risks to which they are
susceptible and resultantly they have become more conscious about the state of
their health. This is a major factor contributing towards the increase in the size
national as well as the global level because there is a huge need for business like
ours everywhere.
Threats:
1. New entrants: There is always a threat of new players entering the scenario and
2. Political Situation: The political situation in our country is highly unstable. Any
adverse turn in the country’s politics can negatively affect our business.
offering are already present in the local market. These can be a threat to our
business. But we have an edge above them and that is we offer all products
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• Pricing:
Pricing plays a crucial part in the marketing mix. We will be pricing our portfolio
keeping in mind the price sensitivity of our consumers, the costs that we are incurring as
well as our market conditions. Our pricing strategy will be a combination of various
getting discounts on some of our products. This would allow us to also give the
customers discount on some items. However, some other products that are of
exceptionally high quality can be sold at premium prices. Thus few local brands would
be on the competitive prices but some others would be charged with cost plus theory.
Such a pricing method would cover our costs as well as help in positioning us in the way
we wanted.
The various strategies that we will adopt will vary with the product category:
Mark-up on cost is achieved by adding a pre-determined profit margin to the cost of the
merchandise. The initial mark-up should be large enough to cover anticipated expenses
and reductions and still produce a satisfactory profit. As we have a diverse selection of
products, we will be using different mark-ups on the product lines with different
characteristics.
special service considerations can justify higher prices. For example, we as retailer may
stock merchandise of well-known brand names that are not available at any other
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Psychological pricing is a strategy where price is based on popular price points and
what the consumer perceives to be fair. The most common method is odd pricing using
figures that end in 5, 7 and 9. It is believed that consumers tend to round down a price
Examining what others are charging for similar products or services will guide us
in figuring out what a "fair" price for such benefits would be. This would be useful for us
The pricing strategy that we have outlined in our marketing segment answers the
following questions:
What is the cost of our product or service? We make sure to include all our fixed and
variable costs when we are calculating this; the cost of labor and materials are obvious,
but you may also need to include freight costs, administrative costs, and/or selling costs.
The overall pricing strategy that we will follow for our retail products would be the
blend of above mentions pricing strategies. But to sum up the jest of pricing
formulation, we have planned to charge a premium price for the products that we offer
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Financial Plan:
The financial plan at present contains projected balance sheet and cash flow
statements for the first year of operation as well the projected investments to be made.
PROJECTED FINANCIAL
STATEMENT
Capital Investment
Land and Building -
Machinery and Equipment 300,000
Furniture 100,000
Office Vehicles -
Office Equipment 100,000
Pre-operating costs 100,000
Training Costs 100,000
Total Capital Costs 700,000
Working Capital
Initial Marketing Budget 500000
Upfront Insurance 25,000
Upfront building rent 250,000
Cash 300,000
Total Working Capital 875,000
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