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Healthy India Organic Food Store

Presented By:- Anushka, Akhsh, Tushar, Zia (B.F.T- 6)

Entrepreneurship Management

Introduction

Stand alone organic food retail store. Located at Mall Road,Kanpur Products flours,pulses,spices etc Follows Consignment Model Caters to elite and upper middle class.

Products

PRODUCT PORTFOLIO

Pulses

Wheat

Other flours

Rice

Ready to Eat

Spices

Pickles and juices

Sugar and other condiments

Tea

Cooking oil

PRODUCT BENEFITS

Healthier GMO free diet Tastier Good for environment

MARKET RESEARCH

INDIAN MARKET

Growth of India's organic foods market

Current Value of Domestic Organic food Retail Market: Rs

Market potential of Domestic Organic food Retail Market:

KANPUR MARKET

Non-existence of competitors. A large segment of high disposable income families. Growing number of health conscious consumers.

CONSUMER RESEARCH

Educated and health conscious individuals. Families with high disposable income Young professionals and middle aged people. Expecting mothers and kids People allergic to traditionally grown food.

COMPETITIVE ANALYSIS

Currently no stand- alone organic food store in the city. Very few organic product categories offered by the nearby hypermarkets and supermarkets.

BARRIERS TO ENTRY

High promotional costs Consumer acceptance/awareness Brand recognition Trainings

MARKET

CLIENTELE

Age- middle aged people and young professionals. Location- expensive localities in and around mall road. Income- elite (HIG)and upper middle class are the main focus. Main focus are families residing in nearby apartment and independent houses

LOCATION

Store Location:- (Mall Road,Kanpur) Central to the city with good connectivity to all parts of the city. Nearby to expensive localities majorly occupied by higher income groups. Nearby to super-market and malls. Competitive Advantage.

PROMOTION

Promotional Stages-

Pre-Inauguration Inauguration

Post

Promotional Tools

Flyers and print media Ads in Health and local magazines like Kanpur Reporter. Kiosk

BUSINESS

BUSINESS MODEL

CONSIGNMENT MODEL-

Shelf space. Purchase price for inventory at time of sourcing Security deposit. Payments Risk

Partnership

Limited Partnership.

BUSINESS MODEL

Contracts

Security Deposit

Pro Nature organic (3 equal E.M.I) Other 3 sourcing partners (one-time).

Legal permissions

Local Permit for selling organic food. Registration under Partnership Act. Retail store registration.

Mark-up-

8% of selling price.

OPERATIONAL PLAN

Operating Hours

9:30 a.m to 9:30 p.m Break (1:30 p.m to 2:30 p.m)

Operating Team

Store manager Sales staff (2) Cashier

OPERATIONAL PLAN

Sourcing

Sourcing partners

Pro nature

Organic india

Phalada

Morarka

Logistics

Medium of transportation as decided by the marketer.

Cost of transportation is borne by the marketer.

OPERATIONAL PLAN

Inventory

Replenishments done on 15th and 30 th of every month. 25 days inventory (10 days is safety stock. )

Order quantity = (forecasted demand for 15 days +10 days safety stock)

Order quantity depend upon

sales of previous month.

MOQ of products as defined by marketer.

Customer retention programs

Regular feedbacks Trained Sales force Consumer complains will be seriously dealt with. Attractive visual merchandise to increase the foot-falls. Greetings will be sent to regular customers.

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

Assumptions:-

Disposable Income (INR)

Elite- 70,000 Upper Middle Class- 30,000 Middle class- 12,000

Population proportion (total- 28,67,731)

Elite- 1%

• • upper middle- 12%

middle class -40%

FINANCIAL ANALYSIS

Hit ratios

Elite- 10%

upper middle -5%

middle class -0.5%

Total expenditures on organic food products= 20% of total expenditure done if family is consuming all organic products.

Family : 2 adults and 2 children. Effective radius of store operations

8 km. from store.

COST BREAKDOWN

ELEMENT OF COST AMOUNT (Rs.) START-UP COST OPERATIONAL COST 5,62,000 65,852 LEGAL + AGREEMENT COST 2,10,000
ELEMENT OF COST
AMOUNT (Rs.)
START-UP COST
OPERATIONAL COST
5,62,000
65,852
LEGAL + AGREEMENT COST
2,10,000

COST BREAKDOWN

MONTH AMOUNT (Rs.) BEFORE JULY 5,62,000 JULY 50,852 AUGUST 80,852 SEPTEMBER 85,852 OCTOBER 69,852 NOVEMBER 65,852
MONTH
AMOUNT (Rs.)
BEFORE JULY
5,62,000
JULY
50,852
AUGUST
80,852
SEPTEMBER
85,852
OCTOBER
69,852
NOVEMBER
65,852
DECEMBER
65,852

SALES FORECAST

TOTAL PROJECTED FAMILIES 6450 EFFECTIVE RADIUS OF OPERATION 8 KM TARGETED FAMILIES 2258 PROJECTED MONTHLY PURCHASE
TOTAL PROJECTED FAMILIES
6450
EFFECTIVE RADIUS OF OPERATION
8 KM
TARGETED FAMILIES
2258
PROJECTED MONTHLY PURCHASE
Rs. 598
FROM HEALTHY INDIA PER FAMILY

SALES FORECAST

SALES FORECAST

PROFIT FORECAST

PROFIT FORECAST

Operational cost vs. profits

Operational cost vs. profits
Operational cost vs. profits

Breakeven Analysis (Operational)

Breakeven Analysis (Operational)
Breakeven Analysis (Operational)

GROWTH PLAN

GROWTH PLAN

Investment Break Even

(15 Months)

Investment Break Even (15 Months)