Pack-its case study analysis,major issue identification,inferences,SWOT of pack-its and recommendations

1. CASE ANALYSIS OF
PACK-iTS CASE STUDY
SUBMITTED BY-
ANJALI MEHTA
PGDM2-1504
1

2. 2
CASE SYNOPSIS
This case is all about analyzing the
marketing, operating and financial
aspects of the business venture to
determine the financing requirements
before making a decision as to whether to proceed with
the new venture or not.
BACKGROUND
• 6 University management students want to start a business in
partnership, named Pack-iTS.
• It is a healthy lunch preparation and delivery service, serving
elementary schools within Thames Valley District School Board,
London, Ontario.
• They can invest $25,000 and would limit their involvement to 10
hours a week per member.
KEY ISSUE
The key issue involved in this case is regarding the decision that the 6 partners have to take whether to proceed with the entrepreneurial venture or
not by the end of the month and to know if additional financing would be required other than $25,000 to run the business with limited involvement of
10 hours per week by each member.
MARKETINGMIX
COMPETITION ANALYSIS
Major competitors-
1. Lunchables (Kraft)
2. Lunchmates (Schneiders)
3. Smart Lunch (Schneiders)
Healthy lunch
service for
school going
kids
Variety of
Elementa
ry
schools
London,
Ontario
$ 5 per
lunch
Flexibility
of choice
of lunches
Website
Fundraising
fair
Backpack
mail
PRICE RANGE
$2.59-$3.99 per
package
TARGET GROUP
Health conscious working families (both the parents are working)
whom children study in elementary school

3. 3
STRENGTHS
Flexibility for parents & children
Convenient meal solution for busy
families
Variety of choices
Easy delivery
Healthy food choices
WEAKNESSES
Time restraints-partners were full
time university students
Budget Restraints
Limited knowledge about the
business
OPPORTUNITIES
Health conscious families
Increasing family incomes(by 13.6%
between 2001 to 2005)
None of elementary schools in area
operated cafeterias
THREATS
Picky eaters
Bi-monthly hot lunch programmes
Strong competition from
established brands
Low price of packaged lunches-
$2.59-$3.99
SWOT
RECOMMENDATIONS
• They can continue the venture as it is profitable planned but
should hire an administrative assistant to overcome the time
restraint.
• Target parent councils and local parenting magazines to
advertise.
BREAK EVEN ANALYSIS
Variable cost
Manufacturing cost-$2.9
Unit S.P-$5.0
FIXED COST-$87,500
FINANCING
Initial investment-$25,000
Compensation-$6000
EXPENSES COST
Salary 36,000
Rent 18000
Marketing 3,500
Operating 30,000
BREAK EVEN(UNITS)
=87,500/(5-2.9)
=41,666 units(approx.)
TOTAL MARKET
No of elementary School-154
Avg. Students-400
Total No of students-61,600
Lunches
per week
%student Total
0 50% -
1 30% 18,480
2 10% 12,320
3 6% 1,10,880
4 2% 49,280
5 2%
Total
61,600
2,52,560
ESTIMATED SALES