ENTREUPRENEURSHIP ASSIGNMENT

ON
GOURMET TO GO CASE ANALYSIS

Submitted to: Dr Deepak Pandit

Submitted by: Ruchika

PGMA1954
1. What is the nature of the product and its characteristics?

Gourmet to go provides nutritious groceries and meals pre-planned according to the

requirements of the customers who basically are urban young professionals. The product
is specially made for the people who are leading a very fast life and do not have time to
buy groceries and then make the meal. Prepared meals were already available in the
market but healthy and nutritious food was not available which consumers mostly
demand for in today’s era. So, bridging the gap between these aspects, the product was
made which provided clean and premium quality groceries and meals. They provide
breakfast, lunch, dinner, tiffin services, BBQ services and many more apart from this. The
products of Gourmet to Go differ a lot from the other companies because they have
formed their own market with these unique features which is not provided by the close
competitors.

2. Because of the newness of the product, the promotion and advertising will be
essential at start-up. Analyse the market strategy in terms of sufficiency for a
new product.

Promotion and advertising play a vital role in reaching the product to the consumers also
for retaining the product in the market. Promotion includes many aspects which are to be
selected by keeping every detail in mind along with keeping the effects in role. When
going for advertising and promotion planning and budgeting the same, there are certain
factors that are to be concerned about. These factors include the nature of the product and
the customer segment the company is opting for. In this case, Gourmet to go the
customers are young professionals who are living in two income households so the
advertising should emphasise more on technology as young people are more aware of
that. Digital media helps a lot in doing social media marketing which not only increases
the reach but also filters the customers who are reaching the products. As in the case it is
specified that heavy advertising schedule is being used in the initial stages. In the initial
stage huge amount is spent on the newspaper ads and teasers which states the revolution
in grocery shopping. Giving large discounts and distributing free samples is what a
company can do in the initial stages which helps a lot in increasing the demand for the
product. The main aim is to make the people familiar with the product and gaining loyal
customers.
3. What problems might be anticipated with the product? How could these
problems be minimized?

Problems that might be anticipated with the products-

 Promotion- promotion plays an important role specially when the company is a

startup so that the people could know more about it and hence the product can
be sustained in the market.
 Delivery- Company can face delivery issue. In this type of business model delivery
places, a vital role. Delivery on time should be the priority of the company.
 Perishability of ingredients: Some ingredients are perishable in nature and if sale
does not happen then those ingredients will decay and it will be a loss for
organization.
 Inventory- Go Gourmet lacks when it comes to inventory because for the
inventory company needs to tie up with dealers for the ingredients and for
vegetables with the vegetable sellers should be more considerate for the
inventory because it is very important.
 Taste and preference- Taste and preference is one of the factors affecting the
demand for the product. If taste and preference of the customer changes and
there is no product for that, then problems can be faced.
If the company hires experienced people who are talented enough then the problem can
be decreased. Also, them who has good know how of ingredients and have experience in
inventory and promotions.

Feedback to be taken from the people to see what taste and preference customers have
and then deal with it accordingly.

Delivery issue should solve on priority as it plays a crucial role in their business, so for
delivery more no of delivery persons should be hired.

Q6. Analyse financial projections for start-up expenses and capital equipment?

Answer:

Start-up cost $258000 which is divided into $183000 self-financed and $75000 loan.

Their objective is 400 households by end of 3d year.

TAM $65000 income group, SAM= 16600 household, SOM= 24 to 50 years age group.
 Total start-up cost- $54500

Capital equipment list=95000

Total= 149500

Less: Gross profit= 65000

Net loss=(84500)

2nd year

Q1; Q2: Q3 loss 11430+13947 +2267=27644

Q4 profit 9373

ANALYSIS:

 Reduce the start-up cost.

 Reduce the computer cost. instead of purchasing computer and printers of
apple and Macintosh, they can use some low branded, low cost products
to $5000.
 Reduce the amount invested in delivery van by:
 Using less costly vehicle instead of Chevrolet. This is reducing the cost from
$66000 to 30000
 Instead of purchasing the vehicle, she can take it on rent or hire purchase it
from someone on lower cost.
 She can also save a lot of cost by spending less on advertising agency,
brochure, radio and newspaper ads by $12500.
  Jan Jones can eliminate her pre-start-up salaries because this is an
unnecessary expenditure for initial level, $11000. It is being assumed that
the salaries of clerk are $5000.

Therefore, in this way, Jan Jones can save $64500 and hence this can help her to cancel
out her loss in Q3 and some part of her loss in Q2 as well.