Download - Marketing Plan Group 3
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KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT
Marketing Plan of Kalyan Foods Pvt. Ltd.
Aarogya Aahaar
Group 3
Chanda Kiran Adhikari 14301
Minakshi Agrawal 14304
Pragya Joshi 14318
Raskin Maharjan 14321
Jyotsna Shrestha 14329
Submitted To:
Assistant Professor Rojan Baniya
Date: 7th September 2014
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Kalyan Foods Pvt. Ltd. Page 1
1.0 Executive Summary
Kalyan Foods is a company established with the sole idea of providing clean, hygienic and
healthy food to the growing children to meet their nutritional needs.
Thus, the company is providing a product called Aarogya Aahaar focusing on the niche market
which would be one of the renowned schools of the valley, DAV Sushil Kedia Vishwa Bharati
School.
DAV School has a strict policy of vegetable lunch for their students. So, our company has
planned to provide Pure veg tiffin service for school children with taste, health and hygiene.
The company has a view to position itself in the DAV school as a companywhich provides home
like tiffin service for the school kids. Focusing on this trend we have developed the marketing
plan for the company.
The product offered is Aarogya Aahaar, a pure veg tiffin service for school children with taste,
health and hygiene. The market segmentation is on the basis of grades which is divided into 2
segments: grade1-5 and grade 6-10. By using the percieved value pricing method, the package
for grade 1-5 is priced at Rs. 1700 and package of grade 6-10 is at Rs. 1900. Both above the line
promotion like print ads, and below the line promotions like word of mouth, direct and
interactive marketing, Happy day campaigns will be used to communicate the value to the
customers. Constant feedback from the customers will be taken to assist in control and
improvement mechanisms for our products accordingly.
The financials and the marketing budget prepared will assist in having a clear view of the
implementation of the marketing plans.
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Kalyan Foods Pvt. Ltd. Page 2
2.0 SITUATIONAL ANALYSIS
2.1 Market Summary
There are around 100 educational institutions in the Kathmandu Valley which includes schools,
higher secondary colleges and universities with various programs. Among these institutions, the
school is a field of opportunities for a company like Kalyan Foods Pvt. Ltd
Target market
Kalyan Foods target schools are those affluent schools whose monthly fee starts from Rs
10,000. Since the company is new in the market, at the initial phase, it will be targeting one of
the top schools of the valley DAV Sushil Kedia Vishwa Bharati Higher Secondary School. We
will focus on nutritious, hygienic, tasty vegetarian homemade food being available to the school
going children.
2.2 Market Demographics
Geographic
Since we are targeting DAV, we will be focusing on Lalitpur district, particularly in Jawlakhel
area. There are other affluent schools in this area like St. Marys School, which can be our
potential customer.
Demographics
Our target falls under the affluent group; school with monthly fees above Rs. 10000.
Approximately, the customers would be 1500 students belonging to the family of higher middle
class. The school has classes running from grade nursery to Bachelor level.
Behavioral factors
The parents today are worried about the degrading immune system of their growing children. But
they cant directly control foods their children consume outside the home; even in schools.
Moreover, the Indian parents want their children to consume pure vegetarian foods and they are
worried that the foods consumed by their children are not up to their standard.
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Kalyan Foods Pvt. Ltd. Page 3
Families today are turning into nuclear ones, consisting of both working parents which leads to
limited or no time to prepare a homemade lunch boxes for the children.
2.3 Market Needs
The following are the major needs of the major customer segments:
Students of Grade 1-5: fun looking yet healthy meal, small quantity
Students of Grade 6-10: varieties of tasty food.
Parents: Healthy, pure vegetarian home like tiffin for their children, reasonable price
School: Good quality food service provider who uses fewer resources, availability of space in
school compound in compare with canteen which requires extra space.
2.4 Market Trends
On a usual school day, a school going student spends around 8 hours outside their home starting
from 8am in the morning. It is very difficult for the parents to cook something healthy as lunch.
The changing demographics where the females are no more limited to kitchens (working
women) have also made it difficult for homemade tiffin. So the common alternative is junk food
or the school canteen. Junk foods are unhealthy and have poor nutrition. Obesity and
malnutrition are its harmful effects on children. One of the most complained facility of a school
is its canteen. Not enough variety of vegetarian foods and lacking a homely taste has made
students avoid canteen food. This is where we come to play with our unique concept of
providing a tiffin service to these homely food deprived students.
2.5 Market Growth
There are around 6 affluent schools in particularly in Jawalakhel area with at least 1000 students
each. This area is a good market where our business can explore. The number of Indian
population is increasing in Nepal. There are other schools like Modern Indian School that
differentiates as a perfect educational institution for the Indian children. These schools can be
our future customers.
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Kalyan Foods Pvt. Ltd. Page 4
2.6 SWOT Analysis
Strength Weakness
Kalyan Foods works with Nutrition
Professionals and specialists.
Motivated employees
Varieties of food
First mover advantage
Less capital
Far from DAV school which is our
primary target market.
No flexible choices. (routine meal)
Opportunity Threat
Parents are being more conscious about
nutrition fulfillment of their children.
So they prefer foods services rather
than junk food.
Working parents prefer these kinds of
services.
Less current competition in tiffin
service providers for school.
Future Competition
In the schools having canteen,
penetration may be comparatively
difficult.
Food transportation might take time
because of traffic jams.
2.7 Current Competition
Currently, there are few other businesses who supply packaged food but they focus on the
business area. In that sense, Kalyan has minimal competition. However this doesnt mean we
dont have to face competition. Our major competitors are canteens in schools. There are
competitions for obtaining canteen contracts in major schools. Kalyan foods have to tackle with
canteen to get the contract in school by offering better value proposition to the customers. One of
the reasons for targeting DAV is that we can avoid competition with the canteen.
There are many businesses who supply packaged food as per order to different types of segment
but they havent focused particularly on providing tiffin for school students. We can categorize
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Kalyan Foods Pvt. Ltd. Page 5
this as potential competitor as they can easily switch their market to schools. Therefore our
current competitors are
Tiffin Time - service for office goers
Womens Tiffin especially focused for working women
Catering Services
School Canteens
2.8 Current Product and Offering:
Our product is Aarogya Aahar which would be served in the meal in such a manner that there
would be no repetition within a week, thereby avoiding monotony and developing taste for
varieties of food.
Menu for the 100%Pure Vegetarian meal Aarogya Aahar
DAYS PACKAGE 1 PACKAGE 2
SUNDAY Veg Biryani & Manchurian Jeera Rice & Matar Paneer
MONDAY Momo & Veg Pakoda Veg Roll & Chowmein
TUESDAY Kheer & Puri Sabji Veg Pulao & Dal Makhani
WEDNESDAY Sandwich, French Fries &
Juice
Burger, French Fries & Juice
THURSDAY Stuffed Paratha, Dahi &
Pickle
Rice, Dal Fry, Aloo Matar
Sabji & Pickle
FRIDAY Spring Roll & Juice Pav Bhaji & Juice
Note: The above menu would be 100% vegetarian, freshly and hygienically cooked. It will also
be served with salads or fruits, as per suitability.
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Kalyan Foods Pvt. Ltd. Page 6
The Highlights of our product are:
Pure veg, healthy and hygienic food
Health being the primary focus, Aarogya Aahar is completely free from
Monosodium Glutamate.
We have a strict policy of cooking and serving on the same day.
The freshly cooked food is packed in a hygienic food grade disposable box which
not only preserves its nutrition but also keep it warm.
We consult dietician to provide best nutrition.
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Kalyan Foods Pvt. Ltd. Page 7
3.0 MARKETING STRATEGY
The key to the marketing strategy is the focus on providing homely food with reasonable price
and developing health plus nutrition level of students of DAV school.
3.1 Mission:
Kalyan Food aims to provide a complete package of health, taste and nutrition in a veggy box,
moving hand in hand with modern parents to help their children grow into healthy and happy
individuals.
3.2 Marketing Objectives:
To meet the sales given in the financial forecast table
To establish itself as well-known tiffin service provider for school kids in Kathmandu
valley.
To position Kalyan Foods as high quality tiffin service provider. Health and taste in a
box.
3.3 Financial Objectives:
To generate minimum 20 lakh rupees as surplus for supporting capacity building and
market expansion.
To pay back all debts within 2 years.
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Kalyan Foods Pvt. Ltd. Page 8
3.4 Market Segmentation
Kalyan Foods can categorize its market as follows
After segmenting the market into different school groups, Kalyan Foods (P) Ltd will now be
focusing on private schools with
- students from affluent class family
- having fees more than Rs 10000 per month
- located at city area
- presumably having no canteens
Currently, Kalyan Foods (P) Ltd. is specifically targeting DAV school which is located at
Jawalakhel. Its also one of the affluent schools in the valley and it has no school canteen
facility.
There are students from kinder garden to Bachelors level in DAV school. We can see the
segmentation of students in following three categories.
Kinder garden U.K.G: Students in this segment are of age 3- 6 years. As these children are
very small in age and require very small amount of food their parents prefer to provide them
with tiffin made in their own home rather from tiffin service provider. So, they are not our
target customers.
Standard 1- 10: Students falling under this category are our target customers because these
children cannot enjoy the canteen facility. These groups prefer junk foods over home-made
Schools
Private
Students from affulent class
family
students from normal family
Public
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Kalyan Foods Pvt. Ltd. Page 9
foods. On top of that, their parents do not have enough time to prepare home-made tiffin,
which increases their consumption of junk food, adversely affecting their health.
Standard 11- Bachelor level: Students in this category are free to decide their food choice and
prefer going out with their friends to have lunch. They dont like to eat tiffin lunch. So, they
are not our target customer.
3.5 Target Market
Before adopting any positioning strategy, first of all we need to understand the customers and
their needs by analyzing consumer markets.
Analysis of End customer: Our end customers are students. So we can analyze students in
following way-
Cultural Factors: DAV school has policy of only vegetarian food. So, students must eat
vegetarian tiffin only.
Personal Factors: Students of age 6 years to 16 years are very young and love to have
different varieties offood. They dont like to have same lunch for consecutive two days.
Our end customers are student; however, they dont have purchasing power. Parents are the
actual decider and buyer. Buying behavior of parents can be influenced through our marketing
plan as follows:
Problem Recognition: Since there is no other tiffin service provider previously in market,
parents are not aware of this type of service. They have latent demand for our product. So,
we can make them aware through promotional strategies.
Information search: Normally parents tend to prefer word of mouth communication channel.
So we have to position our brand strongly in the market so that it creates positive word of
mouth. Since we are targeting modern high middle class family, parents may surf the internet
to search about tiffin service provider.We need to develop clear and attractive website
emotionally associating our product with health of their children.
Evaluation of alternatives: School canteen is strong alternative for our product. Currently
DAV does not have canteen. But in future we want to expand our business to other schools
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Kalyan Foods Pvt. Ltd. Page 10
which may have canteen. So we have to try to deliver more value to our customers in
compare to alternatives. We have to take regular feedback and try to develop our service to
match the expectation of Parents.
Purchase decision: We have made easy purchase process. There is monthly payment system.
Parents will pay the monthly charge for our service to school administration. Parents may
have different perceived risks like functional risk, physical risk, financial risk or
psychological risk. We are making our product healthy, cost worthy, and hygienic to clear
such risks from their mind.
Post purchase behavior: We have to make sure to take regular feedback from parents as well
as students to take suggestion about improvement. The tiffin will be easy to dispose as
disposal boxes will be used
3.6 Positioning
Kalyan Foods (P) Ltd. plans to come up with functional positional concept which solves problem
and provides benefits to customers. It will position itself as high value tiffin service provider for
school kids. It would like to be known for its:
Fresh, hygienic and nutritious tiffin service provider
Timely delivery
Effective waste and contingency management.
3.7 Differentiation
Kalyan Foods services are in itself a point of differentiation because of its unique concept. No
other competitors have offered such services for school kids. Further we can classify this point of
difference into product differentiation, service differentiation and employee differentiation.
Product differentiation- vegetarian hygienic food with ample amount of nutrition level
required for school kids.
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Kalyan Foods Pvt. Ltd. Page 11
Service differentiation- tiffin boxwill be delivered on time with accuracy and speed. We
will also compensate for absent students. For this, every morning school will email a list
of absent students to Kalyan. The list will be compared with the consumer students and
the tiffin of the absentee will not be sent. This will add value to our service and also will
help to reduce over production. Happy Day campaign will provide delight to the
customers as a surprise food item will be placed in their package once in a month
Employee differentiation- professional chefs, Nutrition specialist
Corporate Social Responsibility- if any extra food not supplied to the students remains, it
will be taken to an orphanage home.
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Kalyan Foods Pvt. Ltd. Page 12
4.0 MARKETING PROGRAM
4.1 Product:
We are providing hygienic, nutritious lunch to kids. Our product is value based , quality focused
with reasonable pricing. Our product is Aarogya Aahar which would be served in such a
manner that there would be no repetition within a week, thereby avoiding monotony and
developing taste for varieties of food. (For further detail, refer to the table 2.8)
4.2 Pricing:
Since our main focus is to deliver high value to the customers, we will be focusing on perceived
value pricing. During our research, parents were willing to pay a high price if they could control
what their children consume. But we also have to consider the incurring production and
promotion cost as well as the markup/ profit. After considering all the factors and keeping in
mind the concept of perceived value pricing, we will be setting two price systems:
Students of Grade 1 to 5:- Rs 1700 per student per month.
Students of Grade 6-10 :- Rs 1900 per student per month.
This third degree price discrimination is done on the basis of consumption quantity of students.
Children from grade 1 to 5 require less food quantity in tiffin box in compare to senior students.
4.3 Promotion
The communication objective of Kalyan Foods is based on categorical need because of its new
services. The objective is to communicate this new service to create value for consumers and
meet the needs of parents and targeted students.
The message will have informational appeals to deliver nutritious and healthy food value of
Aarogya Aahar.
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Kalyan Foods Pvt. Ltd. Page 13
The company can promote their product through personal and non-personal communication
channels. Kalyan Foods Pvt. Ltd uses Percentage-of-sales promotion strategy with long term
perspective. Around 8 % of total sales is used for promotion and advertising purpose.
Personal Communication Channel (Below the line):
Word of mouth: Proposal presentations in selected affluent schools, especially in
DAV.
Short presentations in Teacher parents meeting
Events and Experiences: Having stall in School events especially in DAV
Food supply in teachers-parents meeting.
Direct Marketing: Distributing pamphlets to students, parents and teachers during
school events.
Interactive Marketing: Official account on Facebook for receiving feedback and providing
information.
Official website www.kalyanfoods.com.np
Focus group interaction
Happy day: Providing out-of-the routine food items like pastry or sweets to
students without prior notice. This will add value to our service
and provide delight to our customers.
Non-personal Communication Channel (Above the line):
To communicate to the mass, the company will give advertisement on magazines preferred by
mothers which are NAARI, VOW and school annual magazines. At initial phase, the
advertisement will be of a page in the magazines. Later considering the budget, the ad will be
given in full page.
4.4 Place:
Raw material suppliers: we will be purchasing all the vegetables from The Organic Village Pvt.
Ltd, which produces varieties of organic vegetables, milk products. Basic requirements to
prepare the foods like salt, powder, buns etc will be purchased through a local wholesaler at a
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Kalyan Foods Pvt. Ltd. Page 14
reasonable price. We chose Organic Village because it has its retail store in Baluwatar which is
near our company in Bhat Bhateni. We will be purchasing on a bulk quantity so our cost will be
reduced. Moreover, since both of our suppliers are situated nearby, it would also reduce our
ordering cost. This reduction in cost will help cover the extra charge of the organic products.
We will be transporting the prepared food in omni cargo vehicle and will be following the
shortest route to DAV. The lunch break of DAV is at 11:30 am, so the food will reach the school
by 11:15. Each package will have name of the student on it and the packages will be bundled
according to the classes. Each of these bundles will be delivered to the respected class where the
class monitor will distribute the package to each student.
MARKETING MIX
Product Vegetarian, Hygienic and free from Monosodium Glutamate (Ajinomoto)
Price Superior, Perceived Value and reasonablepricing
Promotion Print ads, word of mouth, direct, interactive marketing and experience based
cost effective promotion strategy.
Place Cost effective distribution channels for raw materials and on-time delivery of
product to school.
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Kalyan Foods Pvt. Ltd. Page 15
5.0 FINANCIALS
The companys major investments are made on furnishing the kitchen accessories and
equipments to make it more efficient and effective. The total capital is Rs 5,000,000. The sources
of capital are 30% (Rs 1500000) debt and 70% (Rs 3500000) are from promoters i.e. owners
equity. The loan has 12% interest rate.
The forecasted income statement is given in the table. Each income statement is divided into
quarters.
2014 2015
4th qtr 1st qtr 2nd qtr 3rd qtr 4th qtr
Sales 5340000 5600000 5700000 5900000 6290000
Less: Cost of goods sold 2136000 2240000 2280000 2360000 2516000
Wages and salaries 534000 560000 570000 590000 629000
Operating Expenses 267000 280000 285000 295000 314500
Utility expenses 106800 112000 114000 118000 125800
Commission paid to
school(5% of total sales) 267000 280000 285000 295000 314500
Net Income before
interest and tax 2029200 2128000 2166000 2242000 2390200
6.0 Control
Kalyan Foods (P) ltd will be monitoring and controlling on following ways:
Strict monitoring on purchase of organic raw materials.
Nutrition specialist will make sure about quality of food.
Proper inspection before dispatching the goods.
Feedback from students, parents and teachers every month.
Delivery on time
Keeping track of all the expenses and always looking for possible cost reduction areas.
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Kalyan Foods Pvt. Ltd. Page 16
7.0 IMPLEMENTATION
DETAILED ACTIVITY WISE EXECUTION SCHEDULE FOR 2015
ABOVE THE LINE
DETAILED
ACTIVITIES
DEADLINE Time of
Execution
Key activity Responsibility
Print ad on NAARI Nov 20 - Dec
01,2014
Mar 20 - Apr 01
Jul 20 - Aug 01
Jan
May
Jun
Contract with Naari Advertising
head and staffs
Print ad on VOW Nov 20 - Dec
01,2014
Mar 20 - Apr 01
Jul 20 - Aug 01
Jan
May
Jun
Contract with VOW
Print ad on DAV
school magazines
Dec 01 - Jan 01 Mar Contact DAV school
for giving key ad in
magazine
BELOW THE LINE
Proposal
Presentation
Jan 05
July 05
Jan
Jul
Preparing proposal Promotion
head
Presentation in
Teacher-Parents
meetings
Apr 04
Aug 03
Dec 03
Apr
Aug
Dec
Preparation for
presentation
Promotion
head
Food Supply in
Teacher Parents
meetings
Apr 04
Aug 03
Dec 03
Apr
Aug
Dec
Distributing the
pamphlets,
registration and
suggestion forms
Promotion
head
Food Stall in School
events
Apr 04
Aug 03
Dec 03
Apr
Aug
Dec
display of our
varieties of product
offering
Product Head
Pamphlets in events
Jun
Aug
Dec
Jun
Aug
Dec
Distributing the
pamphlets during the
key events of the
school
Promotion
head
Social Media
Frequently
depending upon
situation
Updating the people
about our service.
Promotion
Head
Happy day Each month One day
every month
Provide special food
item
Product Head
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Kalyan Foods Pvt. Ltd. Page 17
8.0 MARKETING ORGANIZATION
Since Kalyan Food Co. has a centralized structure, the owner of the company will take the
responsibility of marketing manager. The responsibility of the head would be to finalize, approve
and suggest on the marketing plan prepared by the outsourced marketing consultancy.
The organization structure of the outsourcing company is as follows:
Marketing Manager
Product Head
Promotion Head
Research Head
Responsible for
determining features of
product according to the
need of target market.
Responsible for managing
above the line and below
the line promotions.
Responsible for marketing
research.