Arora cold storage

Marketing Management II
Marketing Plan
For
Arora Cold Storage
Presented by:
Ashish Jain
Shivani Aggarwal
Karishma Khatri
Ankur Vats

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.

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.

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.

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.

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

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

Opportunities:
 Diversify the product line
 Open full-fledged stores of their own
 Diversifying into storage of medicines
 Start selling packaged food

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

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

Product Offering
 Cold storage racks with customization
that will either be leased or sold
 Intermediary for certain line of frozen
foods

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.

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.

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

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

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.

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.

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

Arora cold storage

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