Presented By:Group No.6

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

What do you think about the business?

•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

HIGH HIGH

HIGH HIGH

MULLIN’S FRAMEWORK

Micro Markets

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.

Target Market Analysis• 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

Overall Sweets Market

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 GROWTH

‘Sugar free’ sweets market• 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

HIGH GROWTH

Major competition for this business

• 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.

Market Attractiveness

Threat from

Competition

Customer

Bargaining Power

Threat of

Substitutes

Supplier

Bargaining

Power

Threat of

New

Entrants

HIGH

HIGH

HIGH

LOW

B- Model Factor Questions 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.

YES

Conclusion

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 the research sufficient?

• 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 – but absence of training plans

• Concrete plans for promotions

• The taste and acceptability – still remains a question mark

• Source of raw material

Any other information...

Changes??

• 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.

More……..

• 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

THANK YOU