ABHISHEK KUMAR 12MBA0070

DEEPAK KUMAR MOTILAL 12MBA0012

GAURAV SHARMA 12MBA0039
MOHITA SHARMA 12MBA0007

NEW PRODUCT DEVELOPMENT

Objectives to be covered

Busines
Brand s Model

Locati Food
on world

Price
Brand
 Spencer & Company was founded in Madras in 1865. Before
independence they had good customer relationship in terms of liking of
the product by British people but after Independence their sale went down
and then 1970 RPGs took over the spencer & Company.

 RPG came up with the new name of Brand called “Foodworld” was
designed with the alphabet “W” to appear as two tick-marks in red colour.

 They were offering the top brands in the market across categories,
supported by Foodworld store brand.
 We came up with the conclusion that the brand image was good in the
market so marketing plan has to discuss.
Price
 Pricing was competitive in nature (that was to be in the line with the
corner grocer).
 SKUs or staples category products were planned to cheapest in the
cities to attracted the more regular customer.
 Top 15 Branded SKUs @ 3% below MRP.
 Mega Price offer on at least two SKU every month.
 52 weeks continuous promotion.
 Aim to build an image of shop as VALUE for money store.
 For fresh vegetables, The top 5 items would be cheaper in comparison
to market price and for the other vegetables the price were on par with
market price.
 Fruits sold on the premium quality price.
Location
 Layout will be establish in residential high streets
with minimum 6000 house hold in 2/3 Km radius
preferably in shopping area of the locality.
 Only ground property floor btw 3000 to 3500 sq fit
selected.
 Preferred outlets were closer to home.
Business Model
 They have focused on four category of retail
outlets.
 Small= 64%
 Medium=25%
 Large=8%
 Very Large=3%
Merchandising strategy and supply chain.

 Carrying everything that a typical target household

would shop on daily, weekly or monthly basis.
 Four type of categories items:
 Destination (Cereals, Pulses, Edible oil, Veg.)
 Convenience (Noodles, Cigarettes, canned non veg.)
 Occasional (Paper goods, Battery)
 Routine (Jam, Hair oil, Liquor, Skin care)
Target Segment and Promotion policy

 Middle and Upper middle class families were decided as the target
market for the shop. The shop were to be positioned as residential “full
service” supermarkets with limited fresh fruit and vegetables.
 Marketing strategy
 Target segment
 Middle and upper class
 Mass market phenomenon
 Positioning strategy
 Store ambience
 Top brands offered

 Direct mailers and shopping guide were main communicator for

promotion.
 Posters, Bulk merchandising, Floor display used to attract customers.
Key Competitiors

 -Pantaloons
 -Nilgiri's franchise pvt ltd.
 -aditya birla group
 -Subiksha Trading Services Pvt ltd
 -Reliance Industries
Advantage of FoodWorld over its competitors

 Brand Image.
 Family Business for almost century.
 Low price.
 Aware of Indian Market need.
 Giant Store format.
 Location of store.
 Value added services.
Conclusion and Suggestion
 Company need to focus on Main group those give
Highest margin
-Perishables i.e 20.18
-Processed food i.e 18.20
-Non-food item i.e 17.94
Business Model Analysis
 Total number of store
Chennai – 6 store
Bangalore – 8 store
Hyderabad- 5 store

Category Operating Exp PBT (Rs. 000)

A type store 2 1448 2270
B type store 9 3098 1448
C type store 8 2632 1096

A types stores are only profit earning stores for FW.