Lassi Shop

Team-9
Strategic Management
Introduction
• The name itself tells the specialization of this Brand i.e., Lassi(Yogurt Based Drink).
• Lassi Shop was conceptualized in 1986 and the first retail outlet was opened in Bengaluru
in 2014, the founder of Lassi Shop is Sumit Singla.
• Currently there are 500+ Lassi Shops across India and UAE.
• Along with delicious Flavors of Lassi, they even serve Faloodas, mocktails, juices,
smoothies, milkshakes, and sandwiches.
• Lassi Shop is known for using Natural Colouring Agents extracted from Carrots,
beetroots, etc.
• Lassi Shop seeks to re-create the traditional Indian culture of “Celebrating Life’s special
moments with friends, colleagues & family through a nice cup of Lassi”
Introduction-
Franchisee Model
Introduction- Lassi Shop at NIT-T
• The Lassi Shop Opened in NIT Trichy opposite to CSG building in March 2020.
• Lassi Shops’ main customers are the students as well as teaching and non-teaching staff
of NIT-T.
• The main competitors of Lassi Shop on the NIT-T campus are Café Coffee Day as well as
other Sugarcane and Fruit Juice Centres.
• The differentiation strategy used by the Lassi Shop is by providing affordable  Milkshakes
and Lassi at an affordable price(As Compared to CCD), making use of the best natural
ingredients, and maintaining hygiene(Compared to Local Juice Centres). 
• The Lassi shop is also located at a strategic position right at the heart of the NIT-T
Campus hence it is accessible to all.
• The Shop operates between 9 a.m. to 2 a.m. for all the days of the week.
Owner - V Veeramani
Age - 39
Education - Diploma in Civil
Engineering.
• Raw Materials at Lassi Shop
 IFE & EFE Rating Factor

Rating Factor
1 The response is poor
2 The response is average
3 The response is above
average
4 The response is superior
 Internal Factor Evaluation Matrix
Strengths Weight Rating Weighted Score
1 Variety of menu choices, fresh and healthy products(80+ ) 0.12 4 0.48
2 Product customization 0.09 3 0.27
3 Hygiene and Quality Products 0.10 4 0.40
4 Prime Location(Centre of NIT-T) 0.10 4 0.40
5 Brand Image (36 years) 0.10 4 0.40
6 Digitalized payment option(UPI) 0.07 3 0.21

Weaknesses Weight Rating Weighted Score

1 Pricey Menu(30 special shakes are expensive) 0.15 1 0.15
2 No Fan, Lights or Wi-Fi  0.08 1 0.08
3 No hot beverages & No new products(0 hot Products) 0.05 1 0.05
4 High investment to the floor space ratio (15% profit) 0.05 2 0.10
5 Centralized Decision Making 0.05 2 0.10
6 Slowness in completing order(15 minutes to get 1 order) 0.04 1 0.04
Total IFE Score 1.00 2.68
 External Factor Evaluation Matrix
Key External Factors​ Weight​ Rating​ Weighted Score​
Opportunities​
1 People demand products that are healthy and hygienic.  0.05 3 0.15
2 High demand for different kinds of cold Beverages.​ 0.06 4
0.24 
3 Events in NITT 0.04 4 0.16
4 Location of Shop attracts Customer 0.07 4 0.28
5 No Direct Competitors 0.06 4 0.24
6 Seasonal Increase in sales 0.05 3 0.15
7 Increases in customer base as a new course offering 0.05 3 0.15
8 Promotes Eco-friendliness by using Recyclable Materials 0.04 4 0.16
9 Building Customer Relationships with discounts and offers 0.03 4 0.12
10 Affordable Price  0.07 3 0.21
Threats​
1 Tender period extension depends on Customer feedback (current is 2 years and extension till 5 years) 0.05 1 0.05
2 Changing tastes and preferences of customers​ 0.05 2 0.1
3 Constant Average Customers Base 0.07 1 0.07
4 Fewer sales During vacation period(50% decline than peak season) 0.03 1 0.03
5 Seasonal decline in sales(20% fluctuation seasonally, Summer is best for business) 0.03 1 0.03
6 New Entrance in the Market 0.05 2 0.1
7
Dependence on suppliers for raw materials​ 0.04 2 0.08
8 Low price of Indirect competitors​ 0.04 2 0.08
9 Rise in Price of Raw materials 0.07 2 0.14
10 Fixed Product Line 0.05 1 0.05
Total 1 2.59
 External Opportunities(O)
1. People demand products that are healthy and hygienic. External Threats (T)
2. High demand for different kinds of cold Beverages.  1. Tender period extension depends on Customer feedback 
3. Events in NITT 2. Changing tastes and preferences of customers 
8. Promotes Eco-friendliness by using Recyclable Materials 5. Seasonal decline in sales
9. Building Customer Relationships with discounts and offers 8. Low price of Indirect competitors 

Matching Stage 
SO ST
 Internal Strengths (S)  Providing customized Healthy food & beverages. (S2,O1)
1.Variety of menu choices, fresh and healthy  Providing of different menu choices at discount offers to build  Maintain hygiene and quality products leads to good customer
product Customer base.(S1,O9) feedback. (S3,T1)
2.Product customization  Promoting Sustainability concepts to customer. (S5,O8)  Offering more discounts on seasonal products. (S1,T5)
3.Hygiene and Quality Products  Promotion of Lassi shop in NITT Fests/Events. (S5,O3)  Product Customization to offer variety of taste to know the
4.Prime Location  Add new quality cold beverages. (S3,O2) likings and preferences of customers. (S2,T2)
5.Brand Image (36 years)
6.Digitalized payment option
 External Opportunities(O)
1. People demand products that are healthy and hygienic.
2. High demand for different kinds of cold Beverages
External Threats (T)
3. Events in NITT 1.  Low price of competitors
4. Location of Shop attracts Customer  2. Availability of other stores nearby
5. No Direct Competitors  3. Changing tastes & performances of the
6. Seasonal Increase in sales company
7. increases in customer base as a new course offering 4. Dependence of suppliers for raw materials
Promotes
8.       Eco friendly ness by using Recyclable Materials

Matching Stage 
WO WT
Internal Weaknesses (W)  Add medium priced products to attract customers in larger
1. Pricy menu. numbers & increase sales.(W1,O1)  Add the Low-cost products to minimize the cost challenge from
2. No fan or Wi-Fi  Test new products by launching in NITT events to know the the competing brands.(W1,T1)
3. No hot beverages & no new products response of the students.(W3,O3)  Because of the dependence of raw materials, slowness of order
4. High investment to the floor space ratio  Can be a hub for lassie shop ingredients and coaching.(W6,O2) is occurring, so we promote the FATAFAT ready products.(W6,T4)
5. Centralized decision making  Can promote lassie shop in social media by targeted audience as  Engage the customers with constant rewards.(W6)
6. Slowness in completing orders NITT students. (W8,O7)  Add hot Products like Pizza, burger, Hot Coffee, Hot drinks etc.,
7. Fewer sales in rainy or winter season to survive during winter season.(W3,T3)
8. Lack of Social media marketing
Matching
Stage – IE
Matrix
 Matching Stage – IE Matrix

• Lassi shop business falls under Quadrant V 

• The best strategy for Lassi shop is to hold and maintain its current business
• Focus on tactical strategies like Market penetration and Product Development
• To penetrate the existing market Lassi shop can introduce Loyalty membership cards, Reduce pricing,
Increase promotion, Open new distribution channels, Improve existing products and Create a rewards
program.
• To develop the Product, Lassi shop can survey the existing customers to identify and analyze their
target audience and market.
• Establish growth goals, allocate resources and develop a marketing plan prior to launch of the
product and after, analyze the results by tracking to meet their goals and satisfy their customers.
Quantitative Strategic Planning Matrix
(QSPM)
Range for Attractiveness Scores
Strategy One Strategy Two
_ = Not applicable
1 = Not attractive
Loyalty
2 = Somewhat attractive
Membership New Menu
Card Merchandise
3 = Reasonably attractive
4 = Highly attractive
 Loyalty
Membership New Menu
Merchandise
Card
    Strengths Weight AS TAS AS    TAS   

1 Variety of menu choices, fresh and healthy 0.12 3 0.36 4 0.48

products​
2 Product customization​ 0.09 4 0.36 3 0.27
3 Hygiene and Quality Products​ 0.10 3 0.30 2 0.20
4 Prime Location​ 0.10 _ _ _ _
5 Brand Image (36 years)​ 0.10 _ _ _ _
6 Digitalized payment option​ 0.07 _ _ _ _
 Loyalty Membership New Menu
Card Merchandise

   Weaknesses Weight AS TAS AS   TAS   

1 Pricy Menu 0.15 3 0.45 2 0.30
2 No Fan, Lights or Wi-Fi 0.08 1 0.08 1 0.08
3 No hot beverage & No new products 0.05 _ _ _ _
4 High investment to the floor space ratio 0.05 _ _ _ _
5 Centralized Decision Making 0.05 _ _ _ _
6 Slowness in completing orders 0.04 1 0.04 1 0.04
 Loyalty New Menu
Membership Card Merchandise

   Opportunities Weight AS TAS AS    TAS   

1 People demand products that are healthy and hygienic 0.05 4 0.20 3 0.15

2 High demand for different kinds of cold Beverages 0.06 _ _ _ _

3 Events in NITT 0.04 _ _ _ _

4 Location of Shop attracts Customer 0.07 _ _ _ _

5 No Direct Competitors 0.06 1 0.06 2 0.12

6 Seasonal Increase in sales 0.05 _ _ _ _

7 Increases in customer base as a new course offering 0.05 2 0.10 4 0.20

8 Promotes Eco-friendliness by using Recyclable Materials 0.04 _ _ _ _

9 Building Customer Relationships with discounts and offers 0.03 _ _ _ _

10 Affordable Price  0.07 2 0.14 4 0.28

 Loyalty Membership Card New Menu Merchandise

   Threats Weight AS TAS AS   TAS   

1 Tender period extension depends on Customer feedback 0.05 1 0.05 4 0.20

2 Changing tastes and preferences of customers​ 0.05 2 0.10 4 0.20

3 Constant Average Customers Base 0.07 _ _ _ _

4 Fewer sales During vacation period 0.03 _ _ _ _

5 Seasonal decline in sales 0.03 _ _ _ _

6 New Entrance in the Market 0.05 3 0.15 4 0.20

7 Dependence on suppliers for raw materials​ 0.04 _ _ _ _

8 Low price of Indirect competitors​ 0.04 _ _ _ _

9 Rise in Price of Raw materials 0.07 4 0.28 2 0.14

10 Fixed Product Line 0.05 _ _ _ _

TOTALS 2.67 2.86

 OBSERVATION
• Loyalty Membership Card has
2.67 TAS whereas New Menu
Merchandise has 2.86 TAS. So,
the better strategy is "New
Menu Merchandise".
 The Major challenge faced by the Lassi Shop is
that it is unable to get new products in NIT-
Conclusion Trichy as their licence is valid only for products
that they have mentioned in the contract. This
is making them lose the untapped market.
• THANK YOU