B plan -organic food store
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B plan -organic food store
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B plan -organic food store
- 1. Healthy India Organic Food Store Entrepreneurship Management Presented By:- Anushka, Akhsh, Tushar, Zia (B.F.T- 6)
- 2. Introduction • Stand –alone organic food retail store. • Located at Mall Road,Kanpur • Products – flours,pulses,spices etc • Follows Consignment Model • Caters to elite and upper middle class.
- 3. Products
- 4. PRODUCT PORTFOLIO Pulses Wheat Other flours Rice Ready to Eat Spices Pickles and juices Sugar and other condiments Tea Cooking oil
- 5. PRODUCT BENEFITS • Healthier • GMO free diet • Tastier • Good for environment
- 7. INDIAN MARKET • Growth of India's organic foods market • Growing at over 20%(www.articles.economictimes.indiatimes.com) • Current Value of Domestic Organic food Retail Market: Rs 1000 cr. http://www.jaivikindia.com) • Market potential of Domestic Organic food Retail Market: Rs 5,640 cr.(http://www.jaivikindia.com)
- 8. KANPUR MARKET • One among the 20 booming cities. http://articles.economictimes.indiatimes.comconsumption-expenditure-cities- account-family • Non-existence of competitors. • A large segment of high disposable income families. • Growing number of health conscious consumers.
- 9. CONSUMER RESEARCH • Educated and health conscious individuals. • Families with high disposable income • Young professionals and middle aged people. • Expecting mothers and kids • People allergic to traditionally grown food.
- 10. COMPETITIVE ANALYSIS • Currently no stand- alone organic food store in the city. • Very few organic product categories offered by the nearby hypermarkets and supermarkets.
- 11. BARRIERS TO ENTRY • High promotional costs • Consumer acceptance/awareness • Brand recognition • Trainings
- 12. MARKET
- 13. CLIENTELE • Age- middle aged people and young professionals. • Location- expensive localities in and around mall road. • Income- elite (HIG)and upper middle class are the main focus. • Main focus are families residing in nearby apartment and independent houses
- 14. LOCATION • Store Location:- (Mall Road,Kanpur) • Central to the city with good connectivity to all parts of the city. • Nearby to expensive localities majorly occupied by higher income groups. • Nearby to super-market and malls. • Competitive Advantage.
- 15. PROMOTION • Promotional Stages- • Pre-Inauguration • Inauguration • Post • Promotional Tools – • Flyers and print media • Ads in Health and local magazines like Kanpur Reporter. • Kiosk
- 16. BUSINESS
- 17. BUSINESS MODEL • CONSIGNMENT MODEL- • Shelf space. • Purchase price for inventory at time of sourcing • Security deposit. • Payments • Risk • Partnership • Limited Partnership.
- 18. BUSINESS MODEL • Contracts • Security Deposit • Pro Nature organic (3 equal E.M.I) • Other 3 sourcing partners (one-time). • Legal permissions • Local Permit for selling organic food. • Registration under Partnership Act. • Retail store registration. • Mark-up- 8% of selling price.
- 19. OPERATIONAL PLAN • Operating Hours • 9:30 a.m to 9:30 p.m • Break (1:30 p.m to 2:30 p.m) • Operating Team • Store manager • Sales staff (2) • Cashier
- 20. OPERATIONAL PLAN • Sourcing • Sourcing partners • Pro nature • Organic india • Phalada • Morarka • Logistics • Medium of transportation as decided by the marketer. • Cost of transportation is borne by the marketer.
- 21. OPERATIONAL PLAN • Inventory • Replenishments done on 15th and 30th of every month. • 25 days inventory (10 days is safety stock. ) • Order quantity = (forecasted demand for 15 days +10 days safety stock) • Order quantity depend upon • sales of previous month. • MOQ of products as defined by marketer.
- 22. Customer retention programs • Regular feedbacks • Trained Sales force • Consumer complains will be seriously dealt with. • Attractive visual merchandise to increase the foot-falls. • Greetings will be sent to regular customers.
- 24. FINANCIAL ANALYSIS • Assumptions:- • Disposable Income (INR) • Elite- 70,000 • Upper Middle Class- 30,000 • Middle class- 12,000 • Population proportion (total- 28,67,731) • Elite- 1% • upper middle- 12% • middle class -40%
- 25. FINANCIAL ANALYSIS • Hit ratios • Elite- 10% • upper middle -5% • middle class -0.5% • Total expenditures on organic food products= 20% of total expenditure done if family is consuming all organic products. • Family : 2 adults and 2 children. • Effective radius of store operations • 8 km. from store.
- 26. COST BREAKDOWN ELEMENT OF COST AMOUNT (Rs.) START-UP COST 5,62,000 OPERATIONAL COST 65,852 LEGAL + AGREEMENT COST 2,10,000 Detailed Calculations
- 27. COST BREAKDOWN MONTH AMOUNT (Rs.) BEFORE JULY 5,62,000 JULY 50,852 AUGUST 80,852 SEPTEMBER 85,852 OCTOBER 69,852 NOVEMBER 65,852 DECEMBER 65,852
- 28. SALES FORECAST TOTAL PROJECTED FAMILIES 6450 EFFECTIVE RADIUS OF OPERATION 8 KM TARGETED FAMILIES 2258 PROJECTED MONTHLY PURCHASE FROM HEALTHY INDIA PER FAMILY Rs. 598
- 29. SALES FORECAST
- 30. PROFIT FORECAST
- 31. Operational cost vs. profits
- 33. GROWTH PLAN
- 34. Investment Break Even (15 Months)
Editor's Notes
- Kanpur, Lucknow, Surat are identified as the boom cities among 20 Indian cities that account for 10% of India’s population, but generates 31% of disposable income
- The Retailer provides shelf space to the Marketer. Retailer does not pay the purchase price for inventory. Retailer has to deposit security deposit with the marketer. Payments For each product sold ;Retailer deducts mark-up amount from the selling price of item and remaining amount of money is paid to the marketer which includes the following:- The cost of item Profit of marketer. Logistics cost. Risk cost The risk of items getting spoiled due to pests is borne by Marketer.