Healthy India Organic Food Store

Entrepreneurship Management

Presented By:-
Anushka,
Akhsh,
Tushar,
Zia
(B.F.T- 6)
Introduction

• Stand –alone organic food retail store.

• Located at Mall Road,Kanpur
• Products – flours,pulses,spices etc
• Follows Consignment Model
• Caters to elite and upper middle class.
Products
PRODUCT PORTFOLIO

Pulses Wheat
Other flours Rice

Ready to Eat Spices

Pickles and juices Sugar and other condiments

Tea Cooking oil

PRODUCT BENEFITS

• Healthier
• GMO free diet
• Tastier
• Good for environment
MARKET RESEARCH
 INDIAN MARKET
• Growth of India's organic foods market
• Growing at over 20%(www.articles.economictimes.indiatimes.com)

• Current Value of Domestic Organic food Retail Market: Rs

1000 cr. http://www.jaivikindia.com)
• Market potential of Domestic Organic food Retail Market:
Rs 5,640 cr.(http://www.jaivikindia.com)
KANPUR MARKET

• One among the 20 booming cities. http://articles.economictimes.indiatimes.comconsumption-expenditure-cities-

account-family

• Non-existence of competitors.
• A large segment of high disposable income families.
• Growing number of health conscious consumers.
CONSUMER RESEARCH

• Educated and health conscious individuals.

• Families with high disposable income
• Young professionals and middle aged people.
• Expecting mothers and kids
• People allergic to traditionally grown food.
COMPETITIVE ANALYSIS

• Currently no stand- alone organic food store in the city.

• Very few organic product categories offered by the nearby
hypermarkets and supermarkets.
BARRIERS TO ENTRY

• High promotional costs

• Consumer acceptance/awareness
• Brand recognition
• Trainings
MARKET
CLIENTELE

• Age- middle aged people and young professionals.

• Location- expensive localities in and around mall road.
• Income- elite (HIG)and upper middle class are the main focus.
• Main focus are families residing in nearby apartment and
independent houses
 LOCATION
• Store Location:- (Mall Road,Kanpur)
• Central to the city with good connectivity to all parts of the city.
• Nearby to expensive localities majorly occupied by higher
income groups.
• Nearby to super-market and malls.
• Competitive Advantage.
PROMOTION

• Promotional Stages-
• Pre-Inauguration
• Inauguration
• Post
• Promotional Tools –
• Flyers and print media
• Ads in Health and local magazines like Kanpur Reporter.
• Kiosk
BUSINESS
BUSINESS MODEL

• CONSIGNMENT MODEL-
• Shelf space.
• Purchase price for inventory at time of sourcing
• Security deposit.
• Payments
• Risk
• Partnership
• Limited Partnership.
 BUSINESS MODEL
• Contracts
• Security Deposit
• Pro Nature organic (3 equal E.M.I)
• Other 3 sourcing partners (one-time).
• Legal permissions
• Local Permit for selling organic food.
• Registration under Partnership Act.
• Retail store registration.
• Mark-up- 8% of selling price.
OPERATIONAL PLAN

• Operating Hours
• 9:30 a.m to 9:30 p.m
• Break (1:30 p.m to 2:30 p.m)
• Operating Team
• Store manager
• Sales staff (2)
• Cashier
OPERATIONAL PLAN

• Sourcing
• Sourcing partners
• Pro nature
• Organic india
• Phalada
• Morarka
• Logistics
• Medium of transportation as decided by the marketer.
• Cost of transportation is borne by the marketer.
 OPERATIONAL PLAN
• Inventory
• Replenishments done on 15th and 30th of every month.
• 25 days inventory (10 days is safety stock. )
• Order quantity = (forecasted demand for 15 days +10 days safety
stock)
• Order quantity depend upon
• sales of previous month.
• MOQ of products as defined by marketer.
Customer retention programs

• Regular feedbacks
• Trained Sales force
• Consumer complains will be seriously dealt with.
• Attractive visual merchandise to increase the foot-falls.
• Greetings will be sent to regular customers.
FINANCIAL
ANALYSIS
 FINANCIAL ANALYSIS
• Assumptions:-
• Disposable Income (INR)
• Elite- 70,000
• Upper Middle Class- 30,000
• Middle class- 12,000
• Population proportion (total- 28,67,731)
• Elite- 1%
• upper middle- 12%
• middle class -40%
FINANCIAL ANALYSIS
• Hit ratios
• Elite- 10%
• upper middle -5%
• middle class -0.5%
• Total expenditures on organic food products= 20% of total
expenditure done if family is consuming all organic products.
• Family : 2 adults and 2 children.
• Effective radius of store operations
• 8 km. from store.
 COST BREAKDOWN

ELEMENT OF COST AMOUNT (Rs.)

START-UP COST 5,62,000

OPERATIONAL COST 65,852
LEGAL + AGREEMENT COST 2,10,000

Detailed Calculations
 COST BREAKDOWN
MONTH AMOUNT (Rs.)

BEFORE JULY 5,62,000

JULY 50,852

AUGUST 80,852

SEPTEMBER 85,852

OCTOBER 69,852

NOVEMBER 65,852

DECEMBER 65,852
SALES FORECAST

TOTAL PROJECTED FAMILIES 6450

EFFECTIVE RADIUS OF OPERATION 8 KM
TARGETED FAMILIES 2258

PROJECTED MONTHLY PURCHASE Rs. 598

FROM HEALTHY INDIA PER FAMILY
SALES FORECAST
PROFIT FORECAST
Operational cost vs. profits
Breakeven Analysis (Operational)
GROWTH PLAN
Investment Break Even
(15 Months)