CIA

On
Chulha Business Plan
Entrepreneurship

Submitted by:- Anshul Khanna

Reg no. 1422101
Sub:- Entrepreneurship
MBA Ex Semester 2

Answers to the above given questions:-

Answer No.1: Do you think this is a viable business?

Yes, I do think that this is a viable business but before I go into the depth of this analysis,
I would like to analyse some basics of business viability and the reasons for why this
tiffin service of Chulha is a viable business.
The details/components of a business viability checks are given below:

A clear definition of the product or service being developed.

Which problem will be solved by this Chulha (tiffin service business plan), and why
this approach is better than existing alternatives?
A clear idea of who needs it.
An idea of how and how much customers will pay for it.
The Uniqueness
Customers Taste and Preference
Competition
Marketing
Continuing Cash flow

If I look into all the above components Chulha services has almost equaling 80% of all
those. There is a clear cut definition of their services saying that they want to give a
quality food, to satisfy the demand of all types of their customers, a clear cut feedback
mechanism, maintaining a website as a marketing tool etc. They have definitely having
uniqueness in them and have a clear cut costing and a thorough market segmentation
study etc. which are the main reasons why their business is a viable one.
The Reasons for Chulhas Emergence which led to the success:- (By taking into
consideration the Entrepreneurship Process)
Identification of Problem:- (Swotting the opportunity)
As per the case study, Adesh and Nishant were the IT employees and emerged as
entrepreneurs later. They were from different parts of India (i.e.) one is from Delhi and
the other is from Kolkata basically north part of India who came to work in South India
(Bangalore) as IT professionals. While employed they were struggling and rather
missing to get the home cooked food in Bangalore city.
Converted to Customer Need:- (Identifying the Resources)
Adesh and Nishant after finding the problem of their food thought of starting a small
tiffin services home cooked food business. Hence they left their IT jobs and started the
business by converting their individual problems into a main customer need based
problem. This is where the Brand mantra of introducing Chulha emerged.

Chulha Emerged:- (Acquiring the resources and Managing the Venture)

Chulha started in a small way. Their main mission is to ensure food being served to
customers not just in terms of taste but variety and maintain quality standards, and
gaining recognition in this business. It is practically serving hygienic and delicious food.
Started with carrying food in tiffin boxes and delivered to the customers in time having
a Quality is not maintained by other tiffin providers. In Chulha, one of the partners
will be directly responsible for quality control to ensure that quality is maintained.
Usually the food is cooked by the owner who is a Kannada and has no idea about the
taste buds of non-Kannadas who are the main clientele. Chulha plans to have north
Indian cooks who can satisfy the demands with non-locals.
Currently no tiffin provider has a feedback mechanism in place. Also people have to eat
what has been prepared without having any choice. Chulha has developed a website
which among other things will deal with these requirements. A forum on the site will
help them judge the tastes of their customers and they can adapt the tiffins accordingly.
The website (www.chulha.co.in) is going to be the main marketing tool. They will be
employing a professional company to optimize it for Google search so that it is easily
accessible. They will depend on positive word of mouth to spread the word. Some addons will be provided from the word go. Apart from a veg and non-veg menu, they also
plan to have a rice-only and a chapatti-only option for various food habits. Later they
were planning on regional meals like Gujrati Thali and Bengali Thali. It was also planned
to introduce a good sweet dish like shahi tukra or caramel custard.
Strong Tiffin service viable Business Model :Let us not forget that the Concept of Chulha Tiffin service idea has got a very strong and
viable business model also. Let me just like to mention some of the core points of it.
They are:1.
2.
3.
4.
5.

Key Partners
Key Activities
Value Propositions
Customer relationship
Customer Segments
students
6. Cost Structure

- Adesh, Nishant
- making good quality home cooked food
- Healthy homemade food with cost effective
- One to one direct approach
- Individuals, office goers, paying guests and
- affordable minimal cost

From the above all in depth analysis I definitely feel that the Chulha tiffin services
business is a viable business which can really with stand and sustain for a quite long
time.

Question No:2:- Are there any changes you would like to introduce in their
business model?
Chulha now in a developing stage should definitely adopt/introduce as and when is
needed. I would rather insist that they should have their own small R&D department
person to implement certain methodologies since the competition in the market is
rising like anything. (Example, Its my meal and Papas tiffin etc.)
Segmentation:- Chulha has to introduce certain segmentation in addition to their
existing ones. They have to introduce a morning breakfast segment. This will definitely
bring additional revenue. Especially cities like Bangalore, where the Industrial growth
is booming like anything year by year, the working population will also increase
proportionately which will ultimately influence the potential area for business like
chulha to tap and develop.
Additional meal features for customer satisfaction/attraction:- Chulha should
introduce digestive food post meal like paan, a small banana fruit or a pack of supari
varieties etc. This definitely impacts a high level customer satisfaction, an edge over the
competitors in the market and also enables the businesss long term sustainability.
Market Diversification:- Chulha should try to tap the other cosmopolitan cities like
Mumbai, Delhi, Calcutta and Chennai etc. A critical market survey for diversification has
to be conducted and accordingly modify the business model plans especially the
catering packaging systems. There are certain important modifications like executive
lunch, business dinner packages, corporate buffets etc. to be introduced. For this local
area agents has to be appointed. Extensive financial planning is required for this effort.
But ultimately lead to high level revenue earnings.
Major Tie ups:- Chulha can have tie ups with Hostels, Corporate Offices, Business
Management Schools, and Engineering and medical Colleges.
Regional Meals:- Since we are talking about chulhas diversification business model, it
is necessary that they include regional meals like north Indian, south Indian, etc. in their
menus.
Encourage Local home makers:- Chulha should give franchisee to local house wives to
do this business and promote Chulha in the areas where chulha itself could not deliver
food in time. This is a very important change they should consider in their business
model. By doing this the supply chain delivery problems can be solved in a very
systematic manner without any problem. Also chulhas management doesnt have to
worry about the local taste of the regions customers. Since, it is prepared by the local
house wives.

Associated Catering Services:- Chulha should provide catering services to several

parties, functions, and even to the Airlines and Railways. This is one of the major
changes that I would suggest to introduce in chulhas business model. These associated
catering services will definitely increase chulhas market value and revenue earnings to
a maximum extent. They can have multiple organizational groups for conducting
marriage catering, party catering, corporate get-togethers, government functions
catering services etc. by way of signing official contracts. They should enter into the
railways and airlines food catering services contracts also. Chulha should also have
association with hospitals for the catering contracts.
Cookery Competitions and award Ceremonies:- Chulha should have annual or half
yearly cookery contests in every regions and territories. This will really boost
customers involvement in chulhas business as well as chulha can get some great ideas
to introduce/change in their business models.
In many countries the catering service business entrepreneurs got their chief chefs
through these types of contests and competitions.
Specialized Nutritional Services:- This is a very special introductory idea for chulhas
business model.
Chulha should concentrate on this aspect of introducing specialized nutritional catering
services with the help of doctors and dieticians around. The services should be based on
the following:1. Age based Nutritional Concept:- Paediatric (child/infants), Geriatric (old
age) etc.
2. Food based on Medical Prescriptions:- Sugar, Blood Pressure, etc.
3. Food based on modern Health consciousness:- Low fat diet, Low calorie
calculated food, high energy food for youth and sports personalities etc.
Note: To introduce the above, chulha will have to have a strong financial planning since
it involves additional costs also. But taking into consideration chulhas customers base
they can have the premium price for their customers and in turn their customers also
will ready to take the additional cost with ease. This is purely my perception.

Conclusion:
From the answers I have given above for the two questions concerned with the viability
and changes of new introduction in the business model of chulha tiffin service business
it is clearly evident that the proper approach, attitude and controls can lead to great
success of a small business and an entrepreneur.