Project Report Management Information Systems .

Acknowledgement

We take immense pleasure in extending our sincere gratitude to all those people without whose kind support the completion of this project would not have been possible.

We are highly indebted to our Professor Mr. Dhruv Nath, for his guidance and constant supervision, as well as for providing necessary input regarding the project at all points of time.

We would also like to express our gratitude towards our family for their kind co-operation and encouragement, which helped us in completion of this project.

Our thanks and appreciations go to our beloved classmates in developing the project and all other people who have willingly helped us out with their full abilities.

Yours Sincerely

Shivam SethiPriya JadwaniKishore PisapatiSubramanian G.Prathihasth RekabuSautraya BhattacharjeeTable of contents

1. Executive Summary.32. Industry Background & Business Opportunity43. Project Description54. Go to Market Strategy, including Target customers.85. Competition Analysis.116. Financials...137. Exit Options, if any..8. Risks and Key Success Factors..9. References..

Executive Summary

Online-Mithai.com

The idea of this portal, Online-Mithai.com is to allow one to choose from various delicacies available across the country and get those mithai delivered to your doorstep. All the orders atOnline-Mithai.com will be sourced from famous Mithai stores in respective cities that we are targeting to provide unrivaled and supreme quality and are hand delivered to ensure timely delivery. We are providing service to be delivered at your doorstep exclusively and we are not the manufacturers but just facilitators who will be coordinating in providing mithais in a timely fashion.The idea of this report is to discuss the background of this industry at present and identify the several opportunities that are already present and also simultaneously create a market for our own selves. We begin by describing the offering that our project provides and then identifying the go-to market strategies and target customers for the same. We also talk briefly about the sales and distribution model that we plan to work with, the various promotional strategies that we plan to adopt and the use of IT-service in this space. A brief view of the potential competitors already existing in the market is also considered for our progress of the project. Also, we discuss the projected costs and financial estimates for the next five years when our project would be put into action. Various exit options and risks to the business (if they exist at all) are also discussed briefly towards the end of the project.Basically through this report we plan to present a proposal that aims to work in the e-commerce space and provide the people with the benefit of enjoying mithais and famous delicacies from all over the country by ordering them right at your doorstep.At present we would be restricting our operations to Delhi NCR only. This is essential to test our market and get a response of our customers to our offering. In the future, we would like to extend this service to more cities and bring in more sourcing locations. We would also like to extend our product offering from sweets to other food products, and also take our operations to a global scale.

Industry background & business opportunity

Indian sweets and snacks retail market is around Rs. 45,000 crores. It is considered to be a highly unorganized market which seems to be dominated by regional and local companies. There is strong trend in the industry that grows towards traditional sweet shops. And, the major reason why there is a lack of a national or centralized company missing in this segment is the taste and the product profiles that varies drastically, from one region to another.Also, it is a widely known fact that India is a land of festivals, and with every turn of festival the sale of mithais sees a boost in India. The industry has seen a lot of transformation in the recent years and the demand for sweets has increased not only in India but also globally. The market seems to have a lot of potential. For newcomers, if they plan to offer a supreme range of sweets with the highest class of quality and if one has a huge investment to make then there is much space in the industry for that player.

The online space provides for low start up costs when considering a business of this kind. It is a unique opportunity to tap because of the high proclivity of Indians towards desserts. A project of this kind faces a major challenge when it comes to quality checks because of the perishable nature of the product that were offering. But, planning for the right logistics and ensuring a transparent and highly responsive system, this challenge could be coped up with easily.The market for traditional Indian milk-based sweets alone is estimated to be $500 million. A major push is needed in this direction to turn out large volumes of high quality traditional sweets for commercial sales both domestically and abroad. Entrepreneurs from Europe, North America and Australia are already looking into the prospects of manufacturing Indian sweets. Hopefully, in the coming years, we will witness the taste of Indian sweets spreading across all nations.

Project Description

Our Offering/Business Idea

One no longer has to go to Kolkata to taste the popular Rasgulla sweet from Mouchak or go to Agra to sample the mouth watering Petha.India being a diverse country is known for its multi faceted culture and diverse lands each known for its own delicacies. And, Indians are especially known for having a sweet tooth. Whether it is the Petha from Agra, the Gulab Jamun from Amritsar or the hot Halwas of Delhi, Indian sweets are extremely popular not just within the country but all over the world. The vast Indian Diaspora present all over the world often get these sweets delivered by their relatives or close friends visiting them. And, this is not just restricted to the people living outside India.There are many people who live outside their home state, but still long for the delicacies of their home states. And, this is where we come into the picture. Our website looks to bridge this gap by bringing delicacies from all over the country right at our customers doorstep. We understand that people living in Delhi or Mumbai would love to be able to savor some authentic Petha from Agra or the famous Biscuits from the Karachi Bakery of Hyderabad. This is all possible with our new online based startup Online-Mithai, which ensures the best and authentic Indian sweets dont get limited to a particular city or place.We pick up sweet items from the destined source and delivers to the end users till its doorstep. Being foodies ourselves, we wanted others to enjoy as much as we do when it comes to food. The basic thought behind this start-up was that there should not be any hindrances if one wants to eat any sort of sweet. Online-Mithai.com tries to overcome all such hindrances and delivers all sorts of delicious and traditional sweets that are available across the countryWe associate ourselves with selected sweet shops that are known all over the country and bring their products to our customers. Our customers can select the city from where they would like to have product, and then they would be directed to the shops present in those cities. From there they can place their order online, and decide upon the time frame within which they would like to have it delivered. Select sweets which are made from Milk and Khoya, are delivered much faster owing to their shorter shelf life. The customers can make the payments online using the commonly available payment options.For us what is most important is that our customers have the same experience that they would have enjoyed eating these sweets at their original locations. Hence, the quality and the authentic taste of these products are extremely critical and is one thing that we strive to ensure at all times.We have also collaborated with Zomato, where our customers would be able to check the authenticity of our clients and their favorite shops, and also be able to check the ratings and reviews of other customers. At present our operations are restricted to Delhi NCR. And our sourcing locations are mentioned later below. This is essential to test our market and get a response of our customers to our offering. In the future, we would like to extend this service to more cities and bring in more sourcing locations. We would also like to extend our product offering from sweets to other food products, and also take our operations to a global scale.

Our Sources

Kolkata Girish Chandra Dey and Nakur Chandra Nandy Mouchak Hindustan Sweets K.C. Das Nalin Chandra Das and Sons Dwariks Gupta Brothers Balaram Mullick and Radharaman Mullick

Hyderabad Karachi Bakery Almond House G Pulla Reddy Sweets & Namkeen Sri Krishna Sweets

Chennai Sri Krishna Sweets Shree Mithai Grand Sweets Loiee Mithai

Jaipur Laxmi Misthaan Bhandaar Rawat Misthaan Bandaar

Agra Panchhi Petha Store Gopal Das Pethe Wale

Amritsar Kanha Sweets Gurudas Ram Jalebiwala

Mysore Gurumart Sweets Shree Mahalakshmi Sweets

Trivandrum Bimbis Sweets Nandini Sweets

Ahmedabad Kandoi Sweets Gwalia Sweets

Indore Apna sweets Madhuram Sweets Marothiya Pedewala

Pune Kayani Bakery Karachi Sweet Mart

Go to Market Strategy

Target Market We have divided our target market into two categories:A) Primary Target Market comprising of those people who have access to the internet, fall under the middle/upper middle/upper class segments and are migrants from various other parts of the countryB) Secondary Target Market comprising of those people who have access to the internet, fall under the middle/upper middle/upper class segments and have stayed in Delhi for the last 20 years.

The size of the Market The total population of Delhi NCR is 21.7 million estimated, out of which 12.5 million have access to internet. Our broad target market consists of those people in Delhi NCR who has got access to internet and fall under the middle class/ upper middle class/ upper class segments. An estimated 50% of the above 12.5 million of the population falls under that category which defines our target market size as around 6.25 million internet users across Delhi NCR with average earnings of above 5,00,000 Rupees per annum.Out of this target group, our main focus would be on the migrants from various parts of the country which comprises of roughly 1/3rd of the above population, considering people who have migrated since the last 20 years to Delhi from various parts of India. However, our secondary target group will be the rest of the people in this segment who belong to Delhi, but would want to try out sweets and snacks from several parts of the country.

Positioning- The website will be designed in such a way that it appeals to mainly people who are migrants in Delhi. Our vision will be to make famous sweets from all across the country available across cosmopolitans. Our mission will be to cater to all migrants across Delhi NCR with sweets from their hometowns or various other destinations across the country. Hence, our positioning will contain the following points of differentiation:-a) Opportunity to order sweets from 11 different cities across Indiab) Getting to choose your favorite sweet outlets across these citiesc) Hassle free Delivery in less than 3 daysd) Option of getting both milk based and non-milk based products deliveredPricing- We will be charging a premium on the prices to the customers. Our prices will be based on perceived value prices which will be __ % above the price of the sweet if borrowed from that shop in that city. Based on the above premium percentage, we have also calculated our financials and break-even analysis which will be elucidated later.

Sales and Distribution Model:-Our supply chain model is described below with the help of the following diagram:-

Use of IT systems in the business Model:Our business Model will have 3 types of IT system which will be used in four different places:-1) A system to log in all the items purchased from a respective shop. The person in charge of the order receiving will report to the head of the logistics team A head about the details of the order. This will be logged in by the team A head at the airport/railway station of the various cities.2) The above system will be used by logistic team C during delivery.3) An online system will be used by Logistics team C head where all deliveries are notified and logged in the system.4) An integrated system which will comprise of details of both the above systems as well as an online ordering system through which Sales people in our office can place orders to the various shops across the eleven cities.5) Data analytics tools will be used to forecast the demand and analyse the locations where demand is increasing. This will help us to upscale the business.

Pilot Plan We will be starting with a pilot plan where we will make only a part of the business operational in Gurgaon (starting in Delhi NCR). We will be supplying from only three or four cities across India and will upscale the business after two months, after seeing the viability of our operations and seeing what changes need to be incorporated in our operations and product offerings.

Promotional Strategies : We will be investing on promotions across social media over the first two months after launching the Pilot plan. After we become fully operational, we will invest around 5% of our turnover in advertisements and promotions. Primarily, promotions will include 1) Re-Boosting our social media reach and marketing extensively through online platforms like Facebook, Instagram, Twitter, Zomato,etc2) Small scale guerrilla marketing involving unique concepts and ideas. ( one such can be invoking the love for sweets in the Bengali fraternity through a minimal poster displayed in Chittaranjan Park in Delhi )3) Youtube promotions through small Ads aimed at invoking the love for different cities and the love for cuisines of these cities4) Tie-ups with various famous sweet shops and co-branding along with them. This will be done in the cities of the sweet shops, free of cost and aimed at those people who live in those cities but plan to move to Delhi for education/employment.

Competition analysis:

As of now, there are no direct competitors available in the online sweets market. Some of the famous sweet shops have their own websites, such as Karachi Bakery in Hyderabad.(URL: http://www.shopping.karachibakery.com/ )However, the delivery coverage is limited to Hyderabad. Another example of indirect competition is the individual websites of brands like Bikanervala, Haldirams, Nathus Sweets etc.Although these websites offer delivery pan India, they are still locally accessible in many cities, with the same range of sweets. They do not cover the local specialties of different locations.The closest thing that comes to a direct competitor is mithaivala.inScreenshot:

The concept of Mithaivala is that they leverage brands such as Haldirams, Bikanervala, and provide an integrated platform that offers sweets and namkeen across all these brands.The gap here is that even this website provides a standard collection of sweets. These can be purchased by a consumer in most Tier 1 and Tier 2 cities. None of these websites provide access to delicacies thatre unique to particular locations in India, eg. Agra Petha, Mysore Pak etc.This is where our company has the competitive advantage. We want to make these regional specialties available pan India. For now, the piloting will be done for Delhi, from where people can order sweets unique to cities like Mysore, Indore and Chennai.

FlyMyFoodThis was a startup based out of Kolkata, which was operating from late 2013 till August 2014.They operated on a similar model, the difference being that they piloted in both Delhi as well as Kolkata as delivery locations. Also, it was based not on sweets, but meals such as biryani, and some special curries.Their value proposition promised hot food delivered during dinner time, on three days of the week. The market for sweets would be different, because with meals, it is instant gratification. Sweets and Namkeen are something one can order in bulk and enjoy for a few days or even weeks.

The company stopped operations in September 2014.

Risks: Trust: Consumers may question the credibility of the sweets theyre ordering, as to whether theyre originally from the respective sweetshop Competitors: In the internet space, theres always potential for competitors to pop up in the same industry. Operational Costs: The major component of the costs incurred will be the distribution costs, which themselves would be hugely dependent on fuel price. Any significant spike in the fuel prices can be very expensive for the company. Scaling up: Even though the business might be fairly successful with the pilot in just one city, it remains to be seen whether its implementable on a larger scale.

Exit Options:1. Acquisition. This option is one of the most common exit strategies. How it works is you find another business that would like to purchase your business and sell the assets to that company. Acquisitions may be facilitated by business brokers who actively recruit buyers and package deals.2. Private Investment Buyout. This means that individual shareholders in the company approach private investors to purchase available shares of stock in the company.

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