Cover page

Presenter

Full names : 1.)Janardhan rao chintada

2.)Vamsi Krishna .P
Email Address : elite_electron@yahoo.co.in
Vamsi_1n1@yahoo.co.in
contact number: 9164286944
9535098047
Name of the college: Christ University, Bangalore

Assurance
Type the following statement. Submission will be
considered as acceptance of this responsibility: “If my
proposed abstract is accepted, I agree to deliver the
presentation, or arrange for it to be delivered, at ASB
for Pragati 2010.”
 Table of Contents

Executive Summary ……………………………………………………………………3

Operational Plan ………………………………………………………………………. 4

SWOT Analysis …………………………………………………………………………5

Operational Plan ……………………………………………………………………….9

Marketing Plan ……………………………………………………………………….14

Financial plan ………………………………………………………………………..18

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Executive Summary

Calorie express is going to be a food store that will aim at targeting the health

conscious people and people suffering from other food related health concerns as there

is a growing tendency all around the globe towards increased dietary diseases like

diabetes, obesity and hypertension. This store will aim at building a portfolio of all types

of healthy foods, ranging from fresh eatables to canned and packed foods, dairy and

poultry product. With Calorie express one can have every thing related to food under

one roof!

This store will be opened under a partnership deed by four members, namely

Janrdhan, Srinivas Sudhakar, seshu of them sharing equal investments and profits of the

business.

The project will target people of all age groups as health is everyone’s right.

However, marketing strategies will be targeted differently for different age groups,

according to other behavioral patterns. The media utilized will be all types of print and

Outdoor media. Marketing campaigns will be intensive in order to increase consumer

awareness.

The setup will initially require an initial investment of almost Rs.20lakhs, of

which every member will equally contribute. In case of inadequate funds, additional

loans would be obtained from the SME Bank.

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 This store has ample opportunities of growth as no one at present is supplying all

types of healthy and plainly nutritious foods under one roof. Although there is always a

threat of new entrants,

we however, aim to create our competitive edge our superior customer service

and quality. This will help us maintain a loyal, satisfied customer base. In short, this will

be a store they have never experience before!!!

Operational Plan

General Company Description

Calorie Express is a health store that will be opened to specifically target

customers who are health conscious as well as those who have been suffering from

health related issues due to unhealthy diet. These people can come and buy all they

want, under one roof.

Name: Calorie Express

Slogan: A journey to a healthier life.

Mission Statement:

“Calorie Express is aimed at educating people towards a healthier lifestyle;

targeting people specifically facing health concerns by providing them food that is safe,

healthy and wholesome, all under one roof. We aim at building a healthier future.”

Vision:

“To build a healthier tomorrow and lead the food industry with our healthy food

chains.”

Company Objectives:

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 • To capture 25% of the local market share of health food sector by 2013.

• To increase profits by 13% by the end of the second fiscal year.

• To increase consumer awareness by 40% till the second fiscal year.

• To expand the chain throughout the province by 2015.

• To lead the food industry by projecting a healthy image of the outlet for every

individual.

Form of Ownership:

There are four members who plan to start up this venture. Therefore, Calorie

express will be a legal partnership entity.

Market Analysis:

We aim at targeting customers segmented on the basis of their health, age, and

lifestyle.

• Demographic segmentation:

1. Age: We will target people who belong to the age group:

18 – 25 years: people who usually suffer from problems of

overweight and obesity.

26 – 45: the occupational class that is usually more health-

conscious.

41 + years: people who suffer from diabetes and other health

concerns in the later stage usually belong to this group.

2. Income level: We will be targeting people belonging to the middle class,

upper middle class, and the elite.

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 • Psychographic segmentation:

We will target customers on the basis of their lifestyle. People who wish

to have a healthy balanced lifestyle can be potential customers of our business.

• Geographic segmentation:

We will be segmenting our market on the basis of geographic

distribution. Initially we will setup our business in Hyderabad and then we will

expand to target the urban population of the major cities of India.

Competitors Analysis

At present, Calorie express does not face direct rivalry from any of its

competitors. There is no other outlet present that serves to provide all dietary products

at one place.

However, we do face indirect competition from local markets that provide such

products but not on a solitary basis and not under one roof. Moreover, other bodies

that serve as indirect competitors are pharmacies, departmental stores etc.

Strategy

We will be pursuing certain strategies that will enable us to attain our long-term

and short-term objectives. We will carry out a comprehensive marketing campaign

mostly via print media to develop our customer market. We will be value pricing our

products, that is, we will be offering just the right combination of quality and good

services at a fair price. We will be maintaining good relationship with all channel

members.

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 Board of
Directors

Finance and Marketing HR/Administr Purchase

Accounts Department ation Department
Department Department

Finance Marketing HR Manager Administratio Purchase Inventory

Manager Manager n Manager Control
Manager Manager

Accountant Marketing 5 Outlets Security

Development Attendants In charge
Team

2 Cashiers Customer 4 Janitors 2 Guards

Relationship
Manager

2 Sales Persons

Organizational hierarchy:

The hierarchy will consist of the board of Directors who will the four partners of the

store. These four members will respectively control the four major domains of

marketing, accounts, HR and administration, and Operations. However, an inspector will

be hired for the quality control department.

Products and Services

Calorie express is a departmental store and hence involved in the services sector. Calorie

express is aimed at providing healthy, nutritious diet to the masses. It foresees to

project a healthy image of its departmental store by providing products that are low in

unsaturated fats, carbs and sugars.

It is a retail store that provides all kinds of products from fresh to canned

dietary and nutritional foods. The store includes all kinds of products – dairy products,

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cereals, grains and pastas, meat, fish and poultry (with decreased fat content), baked

foods, snacks and organic sweets and juices, oils(low cholesterol), salad dressings,

fresh eatables, and other miscellaneous items. You name it, we have it.

However, it is aimed at expanding its variety with increasing progress.

Operational Plan

The operational plan of Calorie express will cover all the major daily operations

of the store plus all that will be required to make Calorie express working.

Supply Cycle:

Calorie express is a departmental store so it will mostly contain items that are

secondary and not produced by Calorie express. Hence, its supply of products is be

maintained by outside suppliers. The store currently operates with two suppliers, one as

the major supplier and the other as a back-up in case of shortage or immediate

increased demands. For fresh eatables, the store will have another separate supply

channel, probably its own.

Its supply cycle will start from obtaining products from the suppliers, storing it in

the inventory house, and the finally after careful listing, transferring these products on

the store’s shelves. Moreover, the store also aims to obtain health products that are

currently not available in the country. Therefore, it looks forwards to establishing an

external import supplier base too.

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 2: storing the 3: listing all the
products in the invent
inventory maintaining
house stock record

1: obtaining 4: transferring
materials from the products to
suppliers the Shelves of
the store for the
customer

ory for
Figure 1: Cycle of supply chain.
Location:

Calorie express’s first branch of store is aimed to be located at Banjara hills(i.e in

Hyderabad) – the hub of all commercial centers in the city. The location is feasible for

everyone and easy to access as well. Moreover, Calorie express will attempt to create its

own parking allotment for its valued customers. The total area of the store is presently

2000 square foot. In case of increased demand the store will increase its chain in other

areas of the city and then the province. Moreover, this area is strategic in terms of less

power shortage being a commercial center. The hours of operation are initially from

7:45 a.m. to 7:00pm.

Legal Environment:

The legal environment includes the store owners’ legal partnership deed, the

outlet’s trademark registration, compliances with the ILO, and insurance coverage for

the building, furniture and other equipment as well as possession of the legal

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documents of the area on which the outlet is built, proper filing with the tax department

and registration for other utilities like electricity, land line etc.

Personnel:

Calorie express will fulfill its employee requirements through advertisements for

vacancy. Proper hiring and selection procedures will be followed. These employees

initially includes skilled personnel such as 2 cashier, 1 inventory manager, 2 guards, 3

shelf attendants – 2 males and one female, 1 security in-charge, 1 accountant, 2 sales

persons as well as unskilled personnel like 2 sweepers, 2 cleaners. All these employees

will go through professional training, individually for every member of the staff –

hygiene and efficiency; cooperation and courtesy training counter attendants, efficiency

and tidiness for the cleaners etc. Moreover, to ensure quality service, proper job

description is provided to each operating position and verbal addressing is also provided

to the rest; periodic monitoring for every employee is also conducted.

Employee strengths:

The strength of the employees at Calorie express lies in their extensive training

towards delivering quality. Moreover, there are no static rules and regulations to be

followed and every employee is responsible for his or her action. As Calorie express

believes in freedom of expression and equal rights, therefore, every employee has a

partial say in the working and improvement of the outlet. This trust vested in employees

gives them a sense of belonging and pride and enables them to perform even better.

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Inventory:

Calorie express’s major inventory stock is collected at different time periods. For

vegetables, meats and fishes, daily stock is collected. For fruits stock is collected on

alternate days. For other storage items bi-monthly stock is collected and stored in the

storage/inventory house. The prices of these items are subject to market trends.

Moreover, the store follows value-pricing strategy for the ease of the customer.

The inventory in-charge is responsible for the assembling and monitoring the

flow of stock. Any shortage is pre-assessed and reported proactively.

Supplier:

Calorie express purchases its meat and beef from Zenith and fruits and

vegetables from the local market. For other packed foods, Calorie express is linked with

one or two major suppliers for on-time delivery of every kind of canned, packed or

processed food. Like everywhere in the world, these suppliers initially provided the

supplies on credit which would later be paid from the profit on sales. However, a back

up transportation facility is also available in case of absence of the contracted supplier

on time. Further, supply rates are fixed and mentioned in the appendices. We will also

deal with international suppliers for products that are not available here.

Equipment and materials

The equipments needed by Calorie express is air conditioners, exhausts,

refrigerator, microwave ovens, freezers, dish washers, lightening arrangements,

computers, counter cash managers, security cameras, large display plasma television for

product advertisements etc.

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Facility layout:

The layout of Calorie express is illustrated below:

Service (reliability, responsiveness, assurance)

All our employees are thoroughly trained to deliver the highest level of excellent

service. Our attendants are always present to answer the valued customers’ queries, our

counter staff is highly trained to be fast, efficient and still carry a smiling face; which is

the insignia of our customer service – smile because the customer wants you to.

Quality deliverance

Calorie express strives to maintain the quality its products. With one satisfied

healthy customer comes another new customer. But with every single dissatisfied

customer, four prospective customers are lost. With its vision being the provision of a

healthier tomorrow, Calorie express makes sure it registers itself with the food and

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quality control department periodically. Moreover, all food items are monitored after

alternate days for expiry dates, new brands, and change in package’s shape or color due

to pressure or humidity. Fresh items are checked regularly for freshness, quality and

cleanliness.

Marketing Plan

Market Research

We have carried out a detailed market research. We have visited the local renowned

departmental stores in order to get an idea of the range of the health products that they

are offering and the strategy they are following in this category of food products. We

observed that the variety was very limited. We also contacted a few fitness and

slimming centers like VLCC etc.. to see what kind of response these businesses are

getting because this would give us a potential insight into our the prospective customer

segment’s size. We found that the response was tremendous and has only grown in the

past few years. As one of the most famous fitness center in Hyderabad mentioned that

the customer base grew from a 1000 in 1986 to 5.9 million in 2008.

Questionnaires:

We also conducted a survey to find out the response towards acceptance

towards healthier eating habits and receive a very positive response. This is a very

promising trend for our venture as well because we have a common and growing

customer base.

Note: The complete questionnaire is given in the appendix(which will be forwarded

later ).

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Competitor Analysis

In India, and for that matter, in the whole world, no business has been started off which

specifically targets the health-conscious segment of the market and strives to fulfill their

needs. There are countless businesses that provide simple food products that are for

most of the time high in fat and sugar contents. So we do not have any direct

competitors.

Our indirect competitors are numerous and include all businesses that offer any variety

of healthy food products. We can consider

• Andhra Pradesh Dairy Development Co-operative Federation Limited

• Amruth Milk Products Ltd

• Decent Store

• Bon vivant

• Pharmacies

• All other stores or outlets, small or big, those offer health products.

However, there are some outlets that do, provide the same services in some way or

the other. But the portfolio at these stores is very limited and they are not just a

complete dietary food store.

We have yet to develop customer loyalty. Otherwise we believe that we are in no

way at a disadvantage when compared to our indirect competitors. We are targeting a

specific group of people and we would be serving them in a way in which no venture has

previously attempted to serve them. Comparing our portfolio to the limited varieties

available at discount shops, grocery stores and supermarkets would be an injustice.

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These stores, who may serve as direct competitors, too are not providing a portfolio as

wide and deep as ours. This too, at present will give us an edge over these outlets.

Moreover there marketing and promotional activities are very insufficient. In fact they

have very low consumer awareness. Hence, it will be comparatively easier for us to

promote Calorie express.

Competitive Advantage

We have a distinctive advantage over our competitors. Nobody in the market is

currently targeting the niche of health-conscious people in a way we would be doing.

We would be offering a huge variety and a deep assortment of health products under

one roof. We would be a “category killer” We will cash in on the fact that we are

providing a broad range of healthy food products that are highly beneficial to those

people who are having dietary issues or are simply health-conscious.

Brand name: The brand name of our retail outlet is Calorie express.

Logo:

Slogan: Our slogan will be:

A journey to a healthier life.

We are urging people to change their eating habits and lifestyles in order to lead a

healthy long life.

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SWOT Analysis:

Strengths:

1. Trend setters in the health market: Calorie express is the first store to provide all

types nutritious, safe and healthy products. No business has as yet attempted to

tap this market in a way we will be doing.

2. A wide product range: We will provide all kind of foods from fresh eatables to

processed food.

3. Health benefits: All products at Calorie express will be nutritious, with minimum

fats, and carbs(Carbohydrates).

4. All healthy products of all companies under one roof: There are several

businesses that are offering certain healthy food products but none of them is

giving the whole portfolio of such products under one roof.

Weaknesses:

1. Low consumer attention: since the business has not yet started its marketing

campaign so we do not have any customer attention.

2. Lack of experience in the business market: We are undergraduate students who

are starting this venture. Therefore, we don’t have any market exposure.

3. Low consumer loyalty: the customer loyalty is low because the business has not

started yet.

4. Financial position: We are on the lower end of financial spectrum because we

being young students belonging to the middle class, do not own large financial

resources.

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Opportunities:

1. Growing tendency towards health-consciousness: With the passage of time,

awareness amongst the masses of the importance of health is increasing.

2. Increase in major diet-related health concerns (growing consumer market):

People have started recognizing the various health risks to which they are

susceptible and resultantly they have become more conscious about the state of

their health. This is a major factor contributing towards the increase in the size

of our customer market.

3. Diversification in the market: We have the opportunity of diversifying our

business, once we have established Calorie express on a solid basis.

4. Expansion – nationally as well as globally: We plan to expand our business at a

national as well as the global level because there is a huge need for business like

ours everywhere.

Threats:

1. New entrants: There is always a threat of new players entering the scenario and

taking away our customers.

2. Political Situation: The political situation in our country is highly unstable. Any

adverse turn in the country’s politics can negatively affect our business.

3. Presence of existing products at local markets: Certain products that we are

offering are already present in the local market. These can be a threat to our

business. But we have an edge above them and that is we offer all products

under one roof.

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• Pricing:

Pricing plays a crucial part in the marketing mix. We will be pricing our portfolio

keeping in mind the price sensitivity of our consumers, the costs that we are incurring as

well as our market conditions. Our pricing strategy will be a combination of various

approaches. Since we are importing in bulk from companies abroad, we would be

getting discounts on some of our products. This would allow us to also give the

customers discount on some items. However, some other products that are of

exceptionally high quality can be sold at premium prices. Thus few local brands would

be on the competitive prices but some others would be charged with cost plus theory.

Such a pricing method would cover our costs as well as help in positioning us in the way

we wanted.

Pricing Strategies of our Outlet:

The various strategies that we will adopt will vary with the product category:

Mark-up on cost is achieved by adding a pre-determined profit margin to the cost of the

merchandise. The initial mark-up should be large enough to cover anticipated expenses

and reductions and still produce a satisfactory profit. As we have a diverse selection of

products, we will be using different mark-ups on the product lines with different

characteristics.

Pricing above competition should only be considered when location, exclusivity or

special service considerations can justify higher prices. For example, we as retailer may

stock merchandise of well-known brand names that are not available at any other

location. This would allow us as retailers to price above competitors.

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Psychological pricing is a strategy where price is based on popular price points and

what the consumer perceives to be fair. The most common method is odd pricing using

figures that end in 5, 7 and 9. It is believed that consumers tend to round down a price

of Rs19.95 to Rs19, rather than Rs20.

Examining what others are charging for similar products or services will guide us

in figuring out what a "fair" price for such benefits would be. This would be useful for us

to conduct a Breakeven Analysis.

The pricing strategy that we have outlined in our marketing segment answers the

following questions:

What is the cost of our product or service? We make sure to include all our fixed and

variable costs when we are calculating this; the cost of labor and materials are obvious,

but you may also need to include freight costs, administrative costs, and/or selling costs.

The overall pricing strategy that we will follow for our retail products would be the

blend of above mentions pricing strategies. But to sum up the jest of pricing

formulation, we have planned to charge a premium price for the products that we offer

due to their nature and our environment.

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Financial Plan:

The financial plan at present contains projected balance sheet and cash flow

statements for the first year of operation as well the projected investments to be made.

The numerical data is presented below:

PROJECTED FINANCIAL
STATEMENT
Capital Investment
Land and Building -
Machinery and Equipment 300,000
Furniture 100,000
Office Vehicles -
Office Equipment 100,000
Pre-operating costs 100,000
Training Costs 100,000
Total Capital Costs 700,000

Working Capital
Initial Marketing Budget 500000
Upfront Insurance 25,000
Upfront building rent 250,000
Cash 300,000
Total Working Capital 875,000

Total Investment 1,575,000

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