2. Introduction
Company name: Arora Cold Storage
Office: New Delhi
ACS started in 2012 and expects to expand
its business in the whole of India in the next
5 years.
Retail or grocery stores in towns are the
major clients for its business.
Aims to expand by way of going to Tier II
and Tier III cities as well as villages which
are electrified and have at least 50 square
feet of land.
3. Cold Storage
Quality and integrity in food safety
Refrigerated storage and preservation
facilities to perishable food items
Preserving and maintaining the edible
quality characteristics until they are
consumed
Recognised for its commitment to high
food safety and health standards.
Stores have to be strategic and they
should have easy access.
4. Situation Analysis
ACS wants to expand in the whole of
India by developing a nationwide channel
for frozen and refrigerated food products
Strategically establish display racks in
stores
Position itself in all towns and electrified
villages
Make display racks available for either
sale or lease.
5. Market summary
Market for frozen goods racks is expected
to increase as:
Increase number of retail outlets increase racks
demand
Increase in disposable income of people increase
demand of such kind of food items
There is a wide range of products available which
increases the competition and companies tries to display
their products in racks
Market shifted from counter-service to self-service
Stores pioneered the concept of multiple retailing,
capitalizing on bulk buying and economies of scale.
7. Strengths:
Previous experience
Strong plan of expansion
Low expenditure required for advertising,
selling can be done via sales calls and
positive industry connections
Develop the brand using ‘Word of Mouth’
techniques as it is best and cheapest way
of communicating
8. Weakness:
Tough to expand, hampered by way of
cultures, languages and ethnicities
Leasing is difficult to monitor all over
India and it would also require a lot of
managerial efforts
Lack of awareness in states other than
Delhi can also create a problem in
negotiation of deals
9. Opportunities:
Diversify the product line
Open full-fledged stores of their own
Diversifying into storage of medicines
Start selling packaged food
10. Threats:
Duplication of technology by store owners
and developing their own cheaper
alternatives
There are a few competitors who offer
quality product at lower prices
11. Competitive Comparison
Compartmentalization of racks that we
offer provide opportunity to store different
commodities at their respective temperatures.
This increases the level of reliability .
Sell benefits in terms of confidence and
providing quality cold storage racks at
justifiable prices to our customers.
Aim at maximising the personal interaction
with customers to gain trust and loyalty
12. Product Offering
Cold storage racks with customization
that will either be leased or sold
Intermediary for certain line of frozen
foods
13. Objectives
First year - To build upon the contacts of Delhi to reach
other states of north India. The immediate target is
Haryana(Gurgaon) and Uttar Pradesh(Noida)
Second year- Cover rest of north India. Consistent
performance with existing buyers becomes key to
expansion
Third year- Cover the rest of India. This can be done via
sales calls both real and virtual.
Fourth year- Follow up of each and every lead. Reasons
to be studied for both successful and unsuccessful ones.
Fifth year- Put the learning of the last year into action.
Consolidate relations with the buyers. Also look to become
first choice in India.
14. Target customers
Looking to target all stores both in urban
and rural set up with an area of 50 meter
square. We can also set our eyes on a tie
up with a chain of stores.
15. Positioning
Aim to position as market leaders in the
cold storage business as far as Delhi is
concerned. We need to be backed by
sound credentials and a diverse set of
finance options to lease or sell our
products and make the value proposition
attractive
16. Strategies
Product- Offered with the feature of
customization. Dedicated team will look after
the installation
Pricing- Offered with various finance options
for both sale and lease. Tie-ups with selective
banks
Promotion and marketing communication-
Majorly via sales calls and positive word of
mouth
Distribution- An online portal for ordering,
outsource the transportation and warehousing
17. Marketing Research
We will have constant feedback from the
store owners. This will be done by
sending a company personnel every
month. We will also try to have
knowledge about competitor’s products so
that we keep an eye on any product
innovation if happens.
18. Financials
Total first year sales revenue - Rs. 2 crores
Average realized price of Rs. 20000 per unit
Variable cost per unit of Rs. 16000 for 1000 unit sales.
Fixed Cost - Rs.2000 per unit.
Earnings from maintenance includes Rs.7,50,000 and the technicians costs
around Rs. 5,00,000.
Total profits includes 20lacs+2,50,000= 22,50,000 for 1 year.
The ratio of Profit for sales =11.25% which is quite good for expansion of an
enterprise.
We give trade discounts to our regular customers @5% on every new
purchase.
19. Implementation
A 24x7 call centre which will help store
owners to put grievances forward. This will be
outsourced
Weekly monitoring of the reports from the call
centre
Intensive lab testing of the cold storages
before workers leave the manufacturing plant’s
door