DAILY DIET BOXES

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Consultant

Mr. Anuj Gupta

Founder

Daily Diet Boxes

Bhopal

26th September 2020

Subject: Report submission on the future action plan for Daily Diet Boxes

Sir,

Within this Report, the detailed information and analysis on the viability of the different
alternatives available for the company along with the recommendations for the future course
of the action is offered.
Based on the analysis and keeping the availability of future expansion, profitability, operating
costs, vision in mind, it is advisable that Daily Diet Boxes focuses on collaborating with
various health and fitness institute.
Thank you for trusting the services. I appreciate your business and look forward to working
with you in future.

Best Regards

CONTENTS

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Letter of Transmittal………………………………………………………............ Page 2

Executive Summary……………………………………………………………… Page 4

Situational Analysis………………………………………………………………. Page 5

Problem statement………………………………………………………………... Page 5

The Alternatives……………………………………………………………………Page 5

Criteria for Evaluation……………………………………………………………. Page 6

Evaluation of Alternatives………………………………………………………… Page 6

Recommendations………………………………………………………………… Page 7

Action Plan……………………………………………………………………… Page 7

Contingency Plan…………………………………………………………………. Page 7

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 Executive Summary

Daily Diet Box is a nutrition-based start-up which was founded in October 2016 with the
intention to cater to the nutritional requirement of the people. Despite from the competition
from the local restaurants providing tastier options and house-helps, the scope for market
expansion for DDB was large because of the first mover advantage in the Bhopal’s nutrition
industry. As a result of the low profitability and other logistical constraints, DDB currently
has two alternatives of either expansion or selling.

It is recommended to go for the collaboration with the health and fitness institutes. This
option will help the company attaining its vision of filling the gap between the desire and
availability of nutritious options along with the increased profits in the near future.

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Situational Analysis

Being health-conscious yourself, DDB was found by you to provide the consumers with the
nutritional and well-balanced diet. Despite of the positive sentiment around healthier
lifestyle, the lack of availability of affordable nutrition options presents a big opportunity
Infront of DDB.

The company focusing on changing the mindset of people towards healthier food, in addition
of consumer resistance is facing multiple logistical constraints like limited client serving
capability and low profitability.

The Problem Statement

Though DDB has been able to establish itself in the market, the low-profit margins and
logistical constraints pose doubt on the future of the company.

Current State:  The huge potential market of the urban population of Bhopal with high
disposable income presents a significant opportunity for the company. But due to the limit of
being able to serve only about 120 people, the large chunk of the market remains untapped.

Desired State: Though you want to expand your business, the immediate issue is the low
profit of margins which needs to be resolved to being able to run the business in future.

The Alternatives

1. Shutting down the business:

2. Collaboration with health and fitness institutes:

3. Catering the local hospitals:

4. Expansion across multiple cities:

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 Criteria of Evaluation

The alternatives mentioned above can be evaluated based on the following criteria:
 Availability of future expansion
 Operating Costs
 Profitability
 Vision/ Alignment with goals

Evaluation of Criteria 
Availability of future Logistics Operating Costs Alignment with
expansion goals

Shutting down the Finding the buyer would No additional costs Does not align
business leaves no scope be a tough task. involved. with the goal of
Shut Down for future expansion filling the void of
non-availability
of healthy food

Despite of competition A minimal cost of Catering to the

through restaurants and Rs. 40,000 involved health-conscious
Collaboration house-help, positive Limited kitchen space to revamp the consumer base
with health sentiments and increased poses a challenge which kitchen. The labour will help in
and fitness focus on physique & can be overcome force involved is attaining goal of
institutes health provides immense efficiently by renting a less, resulting in less profitability and
opportunities large commercial space. expenses on salaries providing well-
balanced diet.

Catering to the different Huge cost involved The objective of

needs of every other to ensure the quality providing the
patient will be and hygiene of the healthy food at
cumbersome and less customized meals. affordable prices
Catering As the market is niche profitable. Also, along is difficult to
local after a point of time the with dieticians, medical- Initial investment of fulfil due to the
hospitals opportunities will get experts will be required Rs. 80k is required large costs
exhausted to be onboarded to which is a pretty big involved
ensure the safety and amount for the
health of patients. company.

Establishment of Though your

each kitchen will vision of catering
Ample growth space and Standardisation of the require min. Rs. 50k. to the health-
opportunity to tap new process and setting up of conscious
Expansion market multiple kitchens pose a Increase in expenses segment will be
across huge challenge. due to increase in fulfilled to a
multiple labour force will larger scale but
cities further decrease the immediate goal of
profit margin. profitability

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 remains unsolved.

Recommendations
As per the analysis of different alternatives, it is recommended to go for the collaboration
with the health and fitness institutes like gyms, dieticians etc. There are ample opportunities
and space available to expand and grow with minimal cost involved. This will help the
company to resolve the immediate issue of low profit-margin and will also help in attainment
of his long-term vision of bridging the gap between the demand and supply of affordable
healthy food.

Action Plan

 Conduct the thorough background check before collaborating with various health
institutes and dieticians.
 A large & affordable commercial place needs to be looked out for and rented.
 Collaborate with a delivery service company to ensure timely delivery of the food to
the increased consumer base which is not possible with the current available labour
force.
 As the major segment targeted are sportsperson and youngsters with increased focus
on physique, advertising via making a sportsperson with positive body image the
brand ambassador or the face of their various social media campaigns can help them
expand their reach.

Contingency Plan

 If the plan to collaborate with the gyms and dieticians doesn’t work out, then the
company may look into the catering business to the hospitals for short-run. As the
company already caters to the in-house doctors, they could leverage the network to
collaborate with the hospitals.