Presented By: Group No.

6 Pankaj Gupta (067) Gaurav Sharma (138) Baijul Raval (153) Saptarshi Datta (165) Divanshu Gupta (170)

Considered in terms of:

      Mullin s Frame work Understanding Micro and Macro factors Porter s five force model Target Market Analysis Competition Strengths and Opportunities

MULLIN S FRAMEWORK

Target segment Benefits and Attractiveness:

Four crucial micro-level factors about target markets:


There is a target market segment where we might enter in which we offer clear benefits or resolve their pain at a price they are willing to pay. These benefits different from or superior to what is currently offered by other solutions.

 India would have around 57 million diabetic patients by the year 2025, according to a World Health Organization (WHO) study At present, in India 25-30 million are known diabetics and there may be another 20 million who do not know that they have diabetes. Diabetes is more prevalent in Urban areas as opposed to Rural areas, While 10 to 12 per cent of the urban population were inflicted by the disease, in rural area the percentage was three to four per cent India has the highest number of diabetes patient in the world

Sweets are very integral to the Indian s diet. For every occasion, be it festival or marriage or anniversary or any celebration, various kinds of sweets will find their place in satisfying the craving for something sweet. The use of sweets is so prevalent that we can find numerous shops in one particular market area. It is estimated that during festival seasons like Diwali, Durga Puja, etc. the daily sale from a single sweets shop can be anywhere ranging from 40,000/- to 65,000/The overall market for sweets exists and there is tremendous scope for growth if any business entity.

 High premium is charged for this category of sweets. Another example is BAKER S BASKET (in Mumbai) which uses natural purees made from fresh fruits that substitute sugar. Chains like Monginis and Copper Chocs are planning to launch a whole new range of sugar-free pastries - At MITHAAS (in Mumbai), the anjeer burfi costing Rs 400/per kg is fast flying off the shelves

 Already existing vendors who have been selling sugar free sweets and have developed expertise in the making of such sweets . Few online vendors. Players like HALDIRAM s and GOPALJEE can use their brand value and strong distribution network. Local small shop vendors who can readily customize their offerings.

Will your revenue be adequate in relation to capital investment you need and the margins you get? Will your contribution margin be adequate to cover FC?

 

 

Strategy: Reduce the premium charged from 10/- per piece to say 8.50/- or 9/- , still you would be able to earn the margin of about 7.00/- to 7.50/Achieving Break even within 2 years. The B plan satisfying the major factors and questions regarding the investments and pricing in fixed and variable cost.

Advantages and Strengths

First mover advantage Attractive market Need in the consumers. Loyal Target base Product Innovation and offering augmentation. Highly growing industry and the market. Have to find new opportunities.

Disadvantages and Threats

Ruled by Unorganized sector (95%) High Cost of promotion as there is a possibility of second mover advantage. High cost of brand building. Threat from big brands like Haldirams .

Effective B plan and it will succeed considering all major business factors, if been executed taking care of all the opportunities and threats.

 The management team has done a great amount of research which includes: Lifestyle changes of the consumers Statistics pertaining to the number of diabetics in India and their growth rate Statistics of Urban vs Rural diabetics Research on overall sweet industry Competitor analysis, costing, source and usage of funds Government policies and infrastructure requirements Product development, production process and pilot testing Market size and sales forecasting Financial statements Human resource requirement

 Is there a need for the product throughout the year Parameters for selecting Chandigarh and Kolkata??? Approximate allocation of funds under various heads new shops, renting factory, investments in machinery and technology. Quality being an important parameter training plans Concrete plans for promotions The taste and acceptability still remains a question mark Source of raw material but absence of

 Chandigarh ?? Secondary research shows that there are cities where the 18-35 yrs segment is much more than Chandigarh. Diabetic patients in Chandigarh is one of the lowest in the country. Serving corporate in Chandigarh ? Delhi better due to corporate offices in NCR - Gurgaon, Noida etc.

 In 2005, 15% of the population diabetic which is roughly 1.5 million, 4 times the total population of Chandigarh. Central location in NCR Only take away Equal importance to Push strategy