3. Executive summary
Arora Cold Storage is a Delhi-based cold storage
operator.
In the next five years, it wants to have an ACS cold-
storage display racks in stores all over India.
India is an agricultural-based economy. The country’s
inefficient cold chain network results in spoilage of almost
40 percent of its total agricultural production.
Catering to the demand for fresh and processed fruits and
vegetables which is increasing as urban populations rise
and consumption habits change.
Target segments include supermarkets, wholesalers,
warehouse companies in urban as well as electrified
4. Situational Analysis
India ranks first in the world in production
of fruits and second in vegetables,
Total value of India’s cold chain industry:
USD 3 billion
Growing at an annual rate of 20-25 per cent.
Total value for the industry is expected to
reach at USD 8 billion by the end of 2015
Large market scope for ACS to establish its
facilities in supermarkets across the nation.
Electrification in villages of Indian states is on
an extensive basis.
5. SWOT analysis
Strengths
Firm plan of expansion in all over India with a stipulated time
frame.
No heavy expenditure required for advertising. As major selling
can be done via sales calls, positive industry connections,
online B2B and B2C portals
Presence of huge market potential
Weakness
Lack of experience in working with regions other than Delhi
New in the National market
Opportunities
The Indian cold chain industry is expected to grow at a
compound annual growth rate (CAGR) of 25.8 per cent over
the next 4-5
Concentric diversification into having full-fledged stores of their
own
6. Threats
Power shortages
Fragmented nature of industry and the
lack of integrated players.
Poor infrastructure at the farm level is
also posing to be a problem.
Duplication of technology by store
owners and developing their own
cheaper alternatives
Lack of backward & forward linkages to
supplement cold chain
7. Competition
Huge Market potential, in broader
terms, not much competetion
Qualified and experienced team of
quality auditors who conduct
numerous quality checks to maintain
the quality & freshness of products
Product Differentiation: Different
temperatures from +10 to 0 degree
Celsius
8. Product Offering
Cold storage racks will have
◦ Different Chambers
◦ Lock & Key Facility
◦ 24/7 Security
◦ Goods Sorting/Grading
Stock maintenance by client or by Arora Cold
Storage as required
Insurance against natural calamities
Refrigerated vans in villages
Systematic warehousing
100% Quality assurance
Technical assistance
9. Marketing Strategy
Objectives
First year - Reaching out to the three
states selected as targets.
Second year - Expand our operations
and facilities to other states which have
hypermarkets.
Third year – Maintenance and
stabilisation
Fourth year - Diversify the product line,
expanding to drugs and floriculture
business
Fifth year - Also look to expand further in
other states and eventually the entire
12. 3 states for first year: Assam, Tamil
Nadu and West Bengal
Fruits and vegetables like pineapples,
apples, plums, oranges, potatoes,
brinjals, cauliflowers etc. are grown in
these states
Consumption of meat, chicken, fish
etc. is also substantial
Possibility of storing some milk
products may also be explored.
13. Strategies
Product- Quality product to our esteem client will be its
preference & major focus area
Pricing- Price will be initially less to enter the Market &
later as per demand & quality the changes in price be
decided.
Promotion and marketing communication
◦ B2B marketplace : Webpage, “Indiamart.com“
◦ Direct Marketing: Hiring a Sales & Marketing professional
to individually generate the leads & Sending them the
detailed proposal.
Distribution- Online portal for ordering so that we can
provide cold storages as and when the orders arrive.
Outsourcing warehousing as and when required
14. Marketing Research
Regular surveys and tele-feedback
from both B2B and B2C platforms.
On weekly basis, our technicians will
visit the stores for any kind of required
support.
Keeping track of online queries
15. Financials
Financial analysis of the investment of a Arora
cold storage unit of 5000 MT capacity
Project has a margin money component of
25% with the rate of interest on term loan and
working capital as 15% and 18% respectively.
Rental charges have been considered at Rs.
700 per MT and the profit margin on self
storage is Rs. 3000 per MT.
Financial indicators of the investment are as
under:
1. Net Present Value @ 15% DF = Rs. 67.09
lakh
2. Internal Rate of Return (IRR) = 25.75 %
3. Average Debt Service coverage Ratio =
16. Controls
Implementation
Online query solving
Tight controlling measures for close
monitoring of quality issues
4 active landline numbers for on the go
assistance
Weekly monitoring of the reports from
the personnel handling the online
queries and calls
Quality testing and ensuring proper
working of the product before supplying
17. Marketing Organization
Name Designation Role
Somya Jindal Chief Marketing Officer Responsible for maketing
activities of the
organisation
Aditi Kapoor Finance and Employee
manager
Provides financial
assistance to the
organisation and engages
in HRM
Roopam Garg Regional Sales manager Looks after the sales in
regions other than Delhi
18. Conclusion
According to us, the marketing plan as
suggested is the best way to reach our
goals and we hope to soar to new
heights in next five years.
-Thank You!
