Professional Documents
Culture Documents
Tiffins R Us
Dr. Aaron Brody
GM 560 August 17, 2009
Pulkit Bhatnagar
D03218464 b.pulkit@gmail.com 404.403.2980
This presentation is prepared towards partial fulfilment of the course: GM560 Entrepreneurship & Small Business Management being instructed by Dr. Aaron Brody for the July 2009 session at the Gwinnett campus of Keller Graduate School, DeVry University. The logo for Keller is reproduced here as a student and not an endorsement by the School. The views expressed in this report are solely of the author and without any intention of infringement or harm. Images have been sourced through Google and sources can be included if b.pulkit@gmail.com pointed out. Copyright 2009 Pulkit Bhatnagar as Business author for this report. Pulkit Bhatnagar Entrepreneurship & Small Mgmt
Agenda
An Indian Business in an American Setting.
The Tiffin Concept
Pulkit Bhatnagar
b.pulkit@gmail.com
An Indian Business in
an American Setting
Pulkit Bhatnagar
b.pulkit@gmail.com
5000 employees deliver over 200,000 tiffins every day using green/local transportation.
Error rate: 1 in a 16 mil. mil. (6 (6 Sigma Sigma certified) certified) Service at < $ 10 per month. Featured by CNN, BBC, Forbes, Economist, NY Times, and many business schools.
Mumbai Dabbawala video
Pulkit Bhatnagar
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A Simplified Snapshot
Input Mechanism:
Website Orders; Payments; Feedback
Delivery Mechanism:
Vans / Cars Food; Promotional Material
Food Delivery to pay for ALL Expenses. Additional Revenue Streams add to bottomline directly. (Alternative Advertising/Promotion Media with direct access to consumer)
Home Delivery
Business Idea
Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt
Advertising
Advertising
Customer-end
Pulkit Bhatnagar
Pulkit Bhatnagar
b.pulkit@gmail.com
Identification of Gap
South Asians:
Around 200,000 Indians, Pakistanis, Bangladeshis, Nepalese, and Sri Lankans in Atlanta. Students and Working professionals on 1 3 projects. Hotspots: Alpharetta, Decatur and Lilburn / Gwinnett, Dekalb, Fulton
Food / Meals:
Spend $ 7 - $ 15 per meal; eat-outs 8-10 times a week. Remaining meals are cooked at home or skipped. Dont mind paying a small premium (~ $ 9-10 overall) if food is delivered.
Restaurants:
Family-owned units; Generally operate with decent profits. Not interested in starting own deliveries but interested in partnering.
Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt
Business Model:
Select a target region with high density of South Asians; partner with local Indian restaurants/chefs & offer home delivery services; allow users to create their profiles on a Web 2.0 interface and place their orders (longer duration get better discounts); have 3-4 vans for delivery per region.
(like USA, UK, Canada, Australia), which have a large population of South Asian
students and professionals. To be the next localized Amazon.com specifically for food delivery services.
Pulkit Bhatnagar
b.pulkit@gmail.com
Target Market
Details:
~ 1500 South Asians.
20 sq. miles Area. Four Indian restaurants. Zero with Home Delivery. Nearest to Emory: 3 mi
Pulkit Bhatnagar
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Marketing Mix
Product:
Delivery Mechanism from Doorstep of Customer. Interactive Web 2.0 website. Kitchen of Supplier to
Price:
Cost + Flat Margin component model; Pre-paid system Amount billed per order + 40% of billed amount 40% based on estimates to cover delivery costs and required margins Discounts to be offered for Higher-priced orders or longer-duration orders Avg Est: Cost: $ 7 per meal. Price: $ 9 per meal.
Advertising Pricing still to be worked out but expected to grow from $400 in Month 1 to $ 1500 by Month 6.
Promotion:
No expensive campaigns. Flyers distribution; College Bulletin Boards placement. Marketing Collateral like T-Shirts and Bumper stickers. M-1 soft launch with 8-10 known contacts: Free Meals in return for Buzz Marketing. M0 launch scheme: Long Term Committers discount. Referrals scheme discounts for people introducing their friends.
Place / Distribution:
20 sq. miles between GT, Midtown, Emory, North Druid Expansion in year 2 to Alpharetta. Distribution: Customer to order, pre-pay via Website. Distribution: Supplier free to source own RM. Distribution: Day-routes to be decided each morning. Delivery of order by venture. Driver will be venture employee and vehicle will be venture asset. Prepaid transactions hence no money transfer issues
Pulkit Bhatnagar
b.pulkit@gmail.com
SWOT
Opportunities:
Un-served South Asian population (incl. cooking-averse target segment). Inexpensive media (similar target mkt).
Strengths:
Low start-up costs; financial independence. Strong relationships with incumbent restaurant owners. Easy access to student population of G. Tech & Emory (Essential to establish a regular following/customer base). Openness to learn from others advice and experiences. Passion to have own venture and succeed in it. Ability to be practical to limit losses.
Opportunity to start small, make mistakes, learn and correct to have a better business model while scaling up.
Additional revenue generating opportunities (like the website, mobile delivery vans, in-tiffin promotional catalogs). Bootstrap financing and viral marketing opportunities.
Weaknesses:
Lack of experience (regulatory, marketing, logistics, design). Assumption that social relationships will translate into business relationships.
Threats:
Low entry barriers. Restaurants can begin own delivery service. People can start to cook for themselves. Pre-packaged and Existing Options Available Unforeseen legal & regulatory issues. Unforeseen financial expenses; since external funding not sought. Atlanta may not remain a preferred study/work location.
Pulkit Bhatnagar
b.pulkit@gmail.com
Pre-Launch Financials
all figures in USD, unless indicated Avbl Price Delivery Mechanism * Car * Scooter 14,695 2,000 16,000 2,500 12,000 1,800 9,000 Ford Focus 2008 1,200 JCL-MP250A
(http://www.banko famerica.co m/small_business/business_financing/index.cfm?template=sba_financing)
Maximum
Expected
Optimistic Remarks
Financed through Bank of America SBA Financing Options at 10% Website Domain Name Registration Website Construction 1,000 6,000 1,000 6,000 400 4,500
100 Free Resources available 1,000 For Security, partner with Paypal & Google Finance
Done through friends in India; local Student friends; Software experts Necessary Expenses Legal Fees * Insurance (GEICO) Marketing Expenses Collateral Development Travel and Meeting Laptop / Mobile 1,000 1,000 900 1,000 1,500 1,000 700 1,200 850 400 Flyers/Explanatory Docs for Vendors, Investors 700 Gas, MARTA ($50 p.m. card), Meals 650 Laptop: 550; Mobile: 100
(http://www.banko famerica.co m/small_business/business_financing/index.cfm?template=sba_financing)
5,000 500
5,000 500
5,000 400
3,000 Terms of Use for website, other legalities 300 Vehicles, Website, Life, Business, Liability
Financed through Bank of America SBA Financing Options at 10% TOTAL Initial Investment Required 32,095 34,500 26,850
16,350
$ 16,000 - $ 35,000
Depending on Finance Availability, initial investment can be channeled as per priority/requirement To recover $ 35,000 at $ 2 per meal margin and 350 days per work year, indicates 50 deliveries per day. That is not viable for one person to handle; hence at least one more employee is required. Therefore * - additional Car will be purchased on achieving required volumes.
Pulkit Bhatnagar
b.pulkit@gmail.com
Pulkit Bhatnagar
b.pulkit@gmail.com
2010: Atlanta, 1 region 2011: Atlanta, 2 regions 2012: Atlanta, 2 regions Seattle, 1 region OR San Fran, 1 region OR Houston, 1 region
Pulkit Bhatnagar
b.pulkit@gmail.com
2010
2011
2012
4,920 4,920
250 250
Pulkit Bhatnagar
b.pulkit@gmail.com
Thank You
Sources: Indian Trade/Business Associations in Atlanta Restaurant Owners Google Amazon Wikipedia Youtube www.Mydabbawala.org
Pulkit Bhatnagar
b.pulkit@gmail.com