Entrepreneurship Orientation

Business Plan

Submitted By:
Section C - Group 6
Agarwal Rahul Rajkumar 2019PGP028
Ananya R 2019PGP052
Devshree Narware 2016IPM035
Rishabh Prasad 2015IPM086
Shukla Anurag 2019PGP487
Vanamala Risheek Sai 2019PGP456
Trinoyoni Das 2019PGP444

Under the guidance of

Prof. D.L. Sunder

In Partial Fulfilment of the Requirements for qualifying a
Pass in Entrepreneurship Orientation

At

Indian Institute of Management Indore, Rau-Pithampur Road,

Indore, Madhya Pradesh, India.
2019
Table of Contents
The Idea ........................................................................................................................... 3
Vision Statement...................................................................................................................... 3
Mission .................................................................................................................................... 3
Organizing & Staffing ....................................................................................................... 4
Hiring Plan ............................................................................................................................... 5
Food and Tech .................................................................................................................. 6
Logistics and Operations ................................................................................................... 7
Sales ................................................................................................................................ 8
Marketing Strategy .......................................................................................................... 9
Customer Relations ........................................................................................................ 10
Communication ...................................................................................................................... 10
CSR ........................................................................................................................................ 11
Finance .......................................................................................................................... 12
The Idea

Our idea is to provide an integrated platform wherein customers can subscribe to

personalized workout regimes and custom meal plans. We’ll also deliver the meals to our
customers at affordable rates.
A user registers online to subscribe to healthy meals and the exercise regime for the day.
Food is delivered at the user’s convenience. The exercise regime is messaged to the user
every morning, customized by our trainers. Every user is provided a fitbit band
We are also planning on having Food trucks to extend the availability of healthy meals to
college students. The trucks will serve the two-fold purpose of promoting the brand and also
generate revenues
Vision Statement
Our Vision is to see a healthy and more conscious India, for health is our most cherished
wealth.
Mission
- To make healthy living uncomplicated.
- To become Profitable by Year 3 of operations
Organizing & Staffing

Year 0:
- Every one of the 7 founding members puts in equal amount of investment with
14.285% share in the company
- No hiring in zeroth year of operation
- Founding members form the board with equal powers

CEO
CTO CMO CFO COO CBO

Org Chart after Year 0

Year 1:
- Hire new employees in year 1
- Hire 3 Tech, 1 marketing, 1 sales and 1 customer relations guy/girl
- We’ll pay a salary of 20k, 15k, 15k and 10k respectively
Year 2:
- Angel investor steps in with investment equivalent to 15% valuation of the company
- Given board position with administrative rights only and one vote
- Founding members off-load 2.14% of their share in the company
 Org Chart after Year 2

Hiring Plan
Food and Tech

A healthy body is made 20% in the gym and rest 80% outside. Food plays a major role in that.
Also, it is very difficult for an amateur to find out a balanced diet which can aid to his cause.
Our Application helps them to find one.

Here, we take the required inputs from the users with the help of our application.

We will ask them to fill out the required details such as

 Name
 Gender
 Weight
 Height
 Location
 Body type
 Age
 Weight loss (or) weight gain
 Eating habits
 Veg/non-veg
 Past injuries etc.,

Based on the inputs that we get we will customize the food routine for individuals.

These are some of the basis for the output given based on inputs

 Knowledge from health experts

 Reviews and experiences of similar users
 Results requested
 Workout routine
 Budget per month
 Resources available in that locality

Each user will be given a customized meal plan. All nutritional needs will be taken care of.
They will be served with the most optimal and most effective diet plans.

Based on the user location, the chefs can find the right mix of ingredients and also based on
the input given by the customer.
Logistics and Operations

The business model of KhaanGyaan is heavily dependent on its operational success and thus
Logistics and Operations is an important facet of this business plan. Following the model of
business leaders like Swiggy and Zomato in food delivery, our delivery partners are
outsourced. The reason for this is that we require high manpower during the delivery times
of breakfast, lunch and dinner. Furthermore, the demand is not stable and is dependent on
the number of orders per day.
We are targeting a customer base of 1000 (by year 4) and the design of deliveries is
expected to be:

 600: basic delivery model of 1 delivery a day every morning

 130: one delivery every two days
 200: one meal a day
 70: premium model, three deliveries a day delivered hot
The features of the delivery system designed are as follows:

 Delivery monitored through GPS. Ensures reliability, efficiency and safety.

 Higher density clusters serviced by larger trucks.
 Lower density areas delivered through tie-ups with local transportation and
outsourcing.
 Food Trucks target colleges with fewer eateries in close proximity. Menu tailored
accordingly.
The outsourcing model will be extended to include:

 Supply of ingredients
 Preparation of meals
 Meal distribution
This can possess coordination challenges for which we have outlined the following model to
monitor quality and efficiency with our partners:

 Ensure a streamlined experience

 Ensure that partners are committed to our vision
 Monthly individual meetings with partners
 Annual all-partner meeting
Sales

The objective of the company will be to attract new customers and establish a loyal
customer base who order regularly, on a daily basis and help the company sustain. We will
re-evaluate and alter the programs based on the feedback we receive from our valuable
customers and even establish a reward system to keep the customers roped in to
KhaanGyaan. The fundamentals of the start-up shall be built on quality and convenience for
the consumer that provide relief from all stress related to health and lifestyle. We intend to
gain the first mover’s advantage with the first in class mobile application that provides
integrated food and exercise solutions.
The initial pricing from us can be Premium Pricing since we have no competitors and we are
first in class to provide the novel service. We will employ loyalty and discounts based
programs to retain existing consumer base and attract new clients, respectively. After
attaining maximum potential, when the growth rate will attain a halt, we can begin to focus
on the specific target group of people who have availed our services and liked it. The focus
shall be on finding out the profitable regions of sale and optimal pricing strategies through
market research tools to cater to the maximum people while making maximum profits.
The year wise target will be as follows:
In year1, we shall start with 50 customers and 5 vendors selling at Rs 250 per meal. Out of
this 50% share will belong to the vendor while delivery will be paid Rs 20. It will be executed
in 1 city, Indore for the initial part. For year 2, we shall expand to 500 customers and 50
vendors with same price. The vendors will still cater to 10 customers on average and we
shall expand to new cities of the same state.
In year 3 we plan to establish long term contract with the vendors and focus on the
Students’ Market. We will need to grow to a market size of 1000 customers along with 100
vendors. We shall increase the price to Rs 300 per meal, giving Rs 140 to vendors, which will
be a 12% rise than what they were getting before and Rs 35 for delivery. Year 4 shall begin
with launch of food truck while catering to newer cities. We plan on getting new customers
every day, as and when our service is discovered by more people on the app infrastructure.
Since KhaanGyaan is also about health and fitness, we will also provide complement sales
of services like trainers and Fitbit band. We plan to partner with the company
manufacturing Fitbit Bands and sell them at discounted rates with little customisation. As
per trainers the cost structure will be:

 Year 1 - 5 trainers: 15k per month

 Year 2 - 50 trainers: 20k per month
 Year 3 - 100 trainers: 23k per month
 Year 4 – 100 trainers: 23k per month
Marketing Strategy

Target segment:

 Demographic: Ages 15-35, male and female both

 Lifestyle: Working professionals staying away from home, school and college going
students
 Geography: Urban

Characteristics of target group:

 Conscious and aware of personal health

 Looking for hassle-free and quick alternatives to regular cooking
 Not extremely sensitive to pricing

Channels of advertising:
1. Social Media Campaign: As the target group is primarily the urban millennial
population, social media presence is the primary medium of advertising. A few
techniques to be adopted on the digital platform are- pay per click, content
marketing, search engine optimization and influencer marketing through widely
known celebrity faces.
2. Offline advertising: This form of advertising is to increase brand visibility among our
target group through billboard promotions, sponsorship events, and so on. Because
a part of our potential target is school going children, offline advertising is a good
way to make their parents (our customers) aware of the product that is being
offered.

Collaborations:

1. Beauty salons, gyms: We have proposed a tie up with the Fitbit brand for
monitoring the health credentials of our users. In order to build more credibility
in the eyes of the consumers, recommendations from places like these can lead
them to adopt KhyaanGyaan as a part of their lifestyle.
2. Departmental store chains, hypermarkets: Most of the urban working consumers
tend to do their grocery shopping from these supermarkets. Hence, promoting
the idea in such places is a good idea.
3. Schools: Nowadays, institutions have taken upon themselves to ensure better
health standards among student. Collaboration with the schools increases the
reception of our idea.
Customer Relations

Good customer relationship is important for any business. This is what enables companies
to get repeat customers. As we are in a food business which has very less room for making
mistakes, customers have plenty of options, and they will not wait for us to rectify our
mistakes. So food businesses need to have continuous feedback and improvement cycle.
We need to have a good customer service channel so that customers can easily contact us
and tell us about their grievances. Food businesses generally have very less turnaround
time, so our customer service needs to be very quick. If a customer raises an issue in the
morning, e.g. for not having his food delivered, we cannot wait till the evening to resolve
the issue. We need to address it fast; otherwise, the customer will be hungry and definitely
will not order with us again.
For delivering good and quick customer service, we will need to have a dedicated customer
service wing in our company. For that, we will need to hire lots of people and also need to
spend on high quality IT infrastructure. For e.g. In case of Swiggy if we face issue with the
delivery guy and call their customer service for help they do not write down our issue than
make a call to the delivery guy to solve the issue, rather they take the delivery person on
conference and resolve the issue in real-time taking all the inputs from customer. In that
case, there is no room for ambiguity or confusion. For having such kind of customer service,
we need to train our employees well, provide them all the information about the customer,
order, vendor and the delivery person immediately (as soon as the customer service person
picks up the call). Spending huge amount of money on customer service will increase our
cost and decrease our profit in short-run (as the fixed cost of training our employees and
setting up IT infrastructure will be high) and will push our breakeven point further. But in
the long run, we believe this will help us retain our customer by increasing customer loyalty.
This means that we will have a high degree of repeat purchases from our customer, and our
sales and revenue will increase. Since IT infrastructure and employee training are on time
cost, combining this with increased sales, our profit increase will definitely increase in the
long run.

Communication
For good customer service, just addressing the issues raised by the customer is not
sufficient. We need to take into consideration their preferences, their changing needs, and
what more they desire from us. When it comes to food their no limit on the number of
options people want to have, so we cannot just decide a menu and keep it forever. Also
considering that we are in a healthy food business where health comes before taste, so
people may easily get bored by the menu in comparison to traditional food outlets. We will
need to change our menu and introduce new products continuously. To do this, we will
need to communicate actively so that the customers can give their inputs. This will make
new additions more acceptable to them as different customers will have different needs.
For e.g., If a customer has set a goal to reduce weight, and there is another person who
needs to gain weight, cannot be served the same menu.
Food is something which is intimate to people and affects their mood and performance so
we will need to show to our customers that we care about them and their food. For this, we
will also need to have a channel of face to face communication over email and phone calls.
We will set up customer service offices where our nutritionist and chefs will be present.
They will listen to the customer first, help them in devising an appropriate health goal for
them and accordingly make a diet plan. According to this diet plan customer will get
appropriate food options in their menu.
As part, our customer service we will also need to show the customer how eating our food is
benefiting them. For this, we will show them the improvement that has achieved on the
parameters captured by the Fitbit band. We will prepare a monthly report on these
parameters and upload it on their account so that they can access it through the app. We
will also call them and tell them about their progress, and this will also serve as motivation
for them to continue eating healthy.

CSR
We also want to give back to our society by engaging in some CSR projects. We will
undertake CSR projects one our revenue reaches Rs. 10crores. We have already planned
two projects which we will undertake.

 KG Hunger Relief: Under this initiative, we want to serve those people who do not
get an adequate amount of food. We specifically want to target malnourished
children under this project. To fund this program, we will put aside some money
from our profits every year and will also conduct charity runs to get external funding.
 KG Awareness: With the help of this program, we want to spread awareness about
the impact which food has on our physical as well as psychological health. We plan
to conduct food awareness camps among various cities across India. Working-age
people will be our main targets as these are the people who don't take food
seriously and engage in unhealthy eating habits. For funding this, we use our internal
funds as this program will not only spread awareness about food habits but will also
promote our business.
Finance

Each of the company’s seven founders will start with an initial capital of 5 lakh. The year
zero will have no operations and the focus will be on an inhouse development of the app.
Operations will commence in year 1 with 50 customers and year 2 will be expansion to 500
customers with investor funding for 15% stake in the firm. The company is expected to
become profitable in year 3 with 1000 customers on an average and in year 4, the company
will launch the food truck model in college campuses.

Year 1
50 customers
Meal plan: Rs 250 per day
5 vendors + 5 trainers

Year 2
500 customers
Meal plan: Rs 250 per day
50 vendors + 50 trainers
Year 3
1000 customers
Meal plan: Rs 300 per day
100 vendors + 100 trainers

Year 4
1000 + 100 customers
Meal plan: Rs 300 per day
Food truck: Rs 100 per meal
100 vendors + 100 trainers