SIES College Of Management Studies (SIESCOMS) Nerul, Navi Mumbai 400 706

Marketing plan on Roll Dosa Roll A new fast food Product.

Prof. Sohan Mohanty

Group Members
o o o o Thakker Pranav 110 Tiwari Vikas112 Unnithan Pradeep 114 Vaze Amit 117

PGDBA (Section B) Batch 2006 2008

Marketing Management (Semester I)

Index

Sr. No. 1 2 3 4 5 5.a 5.b 5.c 5.d 5.e 6 7 7.a 7.b 7.c 7.d 8 9 10

Contents Executive Summary Business Opportunity Product Overview Business Scope Market Analysis Market Overview Types Of Competition Competitors Description Competition Analysis Entry Barriers / Constraints Market Segmentation Marketing Mix Product Price Promotion Place Financial Analysis Future Prospects/Challenges References

Page No. 3 4 5 5 5 5 7 8 10 10 11 12 12 13 13 14

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EXECUTIVE SUMMARY: In this fast pace moving world, people dont get enough time to eat their food, so fast food has proved to be a growing business. In current fast food industry, there is a need for a food item which satiates hunger as well as taste without taking much of the consumers time. Understanding this need, we are launching a fast food outlet to serve new food item called Dosa Roll. Name of our outlet will be Roll Dosa Roll which we finalized because we wanted our product to be described along with the brand name. The name describes our product as well

as the rhyme helps us to create better advertising campaigns and the uniqueness of the name helps us increase our brand recall. Roll Dosa Roll would be a fast food outlet, with the future aspiration to become a fast food chain. The promoters of the outlet will be A, B, C and D, four MBAs who plan to build their career in the field of food industry as entrepreneurs. Our vision is to be a world class international fast food chain which takes an Indian delicacy around the globe. At Roll Dosa Roll we believe in placing the customers at the top of the chain by revolving our business strategy towards satisfaction through taste, quality, convenience coupled with hygiene. Our short term goal is to start 10 outlets around Mumbai within 5 years and also earning substantial brand recognition in the fast food industry. We intend to open our first branch at Ghatkopar west near the station as it is a very densely populated area which would reduce our costs in many ways as we are coming closer to the customers. In future we intend to open more branches in Mumbai in at such similar dense areas, and eventually move out of Mumbai to hunt for more avenues. We will start our business with a modest number of employees without compromising our service standards. The organizational structure will be divided into food, front office and cleaners and maintainers. The estimated investment the business will require in the first 3 months is around INR 5 lakhs. The starting capital expected is around INR 7.5 lakhs where 5 lakhs is debt and 2.5 lakhs is equity. Equity will be contributed by the four partners in equal proportion and they will share the profits in future in equal proportion too. As the food industry is a very fast growing industry and the margins are very large, we intend to achieve break even point in the 8th month of operation The advertising is done using new and more effective mediums of communication media to achieve core Roll Dosa Roll marketing objectives. Roll Dosa Roll believes in the word of mouth mantra as their key to success i.e. making a long lasting relationship with customer. The advertising strategy of myrasoi.com is time tested philosophy fish where the fish are.

BUSINESS OPPORTUNITY:
In current fast food industry there is no such fast food which is healthy, tasty and feeling to appetite at the same time. We looked this as a marketing gap and thought of introducing a new product Dosa Roll, which will provide all these aspects in one. There are some other factors which also show an opportunity for this business,

 India is the second most populous country in the world after China; with 1.08 billion people increasing at an annual rate of 1.65%. - A positive influence on the demand for food; India also experienced a 4.62% annual increase in GDP per person between 2001 and 2006, a positive influence on the effective demand for food As a consequence of the high birth rates prevalent until the 1990s, a large proportion of the Indian population is relatively young - in the age group of 20- 59 years. This group is also high in consumption and therefore, this trend is expected to provide a further boost to the growth of consumption in India. Urban consumers in India have become more exposed to western lifestyles which are more inclined towards fast food. Increase in the population of working women and increasing prevalence of nuclear double income families, especially in urban areas, are other trends shaping lifestyles. The food processing sector has been impacted by new age trends as there has been an increase in the demand for processed, ready-to-cook and ready-to-eat food. It has been assessed by Euromonitor International, a market research company, that the amount of money Indians spend on meals outside the home has more than doubled in the past decade to about US$ 5 billion a year, and is expected to further double in the next 5 years. These trends imply significant growth potential for the sector in future and add to its investment attractiveness. Government is also showing positives actions to help this industry to grow by proposing a Mega Food Park.

PRODUCT OVERVIEW: The hot and delicious Dosa Roll essentially a fast food wrapped in the aluminum foil is easy to handle and carry. Variety in stuffing is induced to pamper peoples taste buds. Nutrition value is maintained at each level of preparation thereby satisfying hunger in a healthy way. We call it the desi food with a western touch. BUSINESS SCOPE: We define our business scope based on following factors: 6

 Geometrical reach. Eating habits and life styles of people. Spending ability of people. Competition. Analyzing all these factors, we find that Metros and other big cities are most suitable to start. We have selected Mumbai city as our starting point due to its cosmopolitan culture and high density population. MARKET ANALYSIS: Market Overview: The food service sector in India consists of approximately 22,000 registered restaurants with sales of over $15,000 per month. In addition, there are more than 100,000 roadside restaurants (dhabas) in small stalls in cities and on highways, and 1,700 registered restaurants in hotels. The institutional sector consists of hospitals, prisons, defense establishments, schools, company canteens, railways, and airlines. India's fast-food industry is growing by 40 percent a year and it generated about a billion dollar in 2005. The fast food industry, after a slow start, has registered prolific growth in recent years. Most U.S. fast food chains McDonalds, KFC, Dominos Pizza, Pizza Hut along with local chains such as Nirulas and Pizza Inn are doing a good business in major urban areas and are now spreading into smaller cities. The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8 per cent, during the tenth five-year plan period. Value addition of food products is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. Fruit and vegetable processing, which is currently around 2 per cent of total production will increase to 10 per cent by 2010 and to 25 per cent by 2025. The popularity of food and agro products is not surprising when the sector is now offering a growth of more than 150 per cent in sales. With such promise in the sector, a number of foreign companies have joined the fray. While US brands such as McDonalds, Pizza Hut and Kentucky Fried Chicken have become household names, more are on their way. Packaged or convenience food segment comprises bakery products, ready-to-eat snacks, chips, namkeens (salted snacks and savouries) and other processed foods/ snack foods. The market size of confectioneries is estimated at US$ 484.3 million growing at the rate of 5.7 per cent per annum. Biscuits have a market of US$ 373.4 7

million, growing at 7.5 per cent per annum. Other products like bread, chocolates are also growing at a significant rate. In 2003, Indian consumers purchased INR 643 million worth of ready meals. The largest market, by value, was West India where INR 223 million worth was sold. The second largest market was North India with sales of INR 191 million. West India had the highest level of per capita consumption of 8 gms per person worth INR 1.03, followed by both North and South India at 4 gms per person worth INR 0.60 and 0.68 respectively. The East & Northeast region is the smallest market for ready meals but is growing rapidly. In the future, South India is expected to become the largest regional market for ready meals. This growth is based on the regions increasingly sophisticated retail environment. It is forecast that by 2009, Indians will purchase INR 2.91 billion worth of ready meals with South Indians buying 4.86 thousand tonnes worth INR 909.99 million. The second largest market, by value, is expected to be West India with sales of 6.43 thousand tonnes worth INR 827.57 million. See Table 16.36 By 2009, West India is expected to have the highest level of per capita consumption at 27 gms Worth INR 3.46, followed by South India at 19 gms per person worth INR 3.56. East & Northeast Total (Million INR). Sales 446.28 North 727.05 South 909.99 West 827.57

Sales per Person (INR/Person). Total Volume

1.36 3.13

2.07 4.29 8

3.56 4.86

3.46 6.43

(Thousand Tonnes). Volume per 10 Person (Gms per Person). 12 19 27

TYPES OF COMPETITION:
Three types of competition have been classified. Direct Competition (category competition or brand competition) It is the narrowest form of competition, where products that perform the same function compete against each other. In our case, Dosa Roll will compete against other fast food brands like Dosa plaza Jumbo king. Indirect/Substitute Competition It is a type of competition where products that are close substitutes for one another, compete. For dosa Roll, biscuits (Brittania), namkins (Haldirams) etc will create a substitute competition. Budget competition. It is broadest form of competition where anything that the consumer might want to spend their available money on. For example, a person who has Rs.200 may choose to spend it on many different items, which can all be seen as competing with each other for the persons available money. COMPETITORS DESCRIPTION: 1. Direct competitors: Location-wise, At Present 1. Local fast food stalls. 2. Mcdonald. 3. Dominos pizza 4. Chain of uddipis In Future: 9

1. 2. 3. 4.

Dosa plaza. Pizza hut. Subway. Jumbo king.

2. Indirect Competitors: 1. All Restaurants. 2. Chat centers. 3. Packed Snacks Brief introduction of competitors Brands Origin Indian mnc Navi mumbai Jumbo King Foods Mumbai Pvt. Ltd. ----- 2001 Product / Dosa, idli, uttapam, Present 9 states of India with 14 Mr. Prem rice, outlet all over India. Also spearing Ganapathy Beverages, icecreams into the international market. Vada pav Present all over Mumbai with 25 Dheeraj Gupta outlets. and Reeta Gupta. Reach founder

Dosa plaza ---- 1998

Local players

-----------

Mcdonalds -1940 (India --- 1996 ) Subway --- 1965 (India 2001 ) Pizzahut ---- 1958 (India -1996) Dominos ----1960

USA

USA

Most of the fast food 100,000 roadside restaurants ----products. (dhabas) in small stalls in cities and on highways, and 1,700 registered restaurants in hotels. Pizza, burger etc. Service in more than 30,000 local Ray Kroc restaurants serving nearly 50 million people in more than 119 countries each day. Sandwiches 26702 Restaurants in 85 FredDeLuca Countries 73 Restaurants in India. Pizza It has approx.10200 outlets in Dan & Frank more than 86 countries including Carney USA. As of 2006, it had 8,000 stores in Tom more than 55 countries. Monaghan

USA

USA

Pizza

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Competitors valuation: Factor Product Features Purchase price 10 Quality 8 Style / Image 5 Healthy Brand recognition Location 8 Hygiene 8 Convenient to eat Customer Service Total points 6 10 78 6 4 7 58 6 6 7 60 4 5 6 49 8 4 9 65 8 5 5 63 8 5 8 58 7 4 7 60 7 7 7 7 6 6 7 8 5 4 7 2 3 5 3 2 2 2 4 5 5 4 5 4 4 5 4 4 7 2 6 6 4 8 7 7 6 6 9 10 7 7 4 9 Maxi- Dosa mum plaza 10 9 Jumbo king 8 Local players 7 McDonalds 8 subway 8 Pizzhut 7 Dosa roll 8

Competitors analysis:The above two charts give us some basic information on our competitors and then helps us rate them on some factors which are important in fast food business. In the competitors valuation chart, we have given maximum points for every factor to check the final competitiveness according to the weightage of each factor. Like for example, product and service are given maximum 10 points to be rated from where as style/design are given 5 points to be rated from. Then according to our analysis of our competitors we rated each of their factors and totaled them. This gave us the final scores which would help us understand that how much competition we would face from whom. In this process, McDonalds was the highest with a score of 65. When we compare ourselves with McDonalds on every factor, the major factors that we would be lagging on are brand 11

recognition and customer service. Brand recognition is something we will also develop if we manage to stay long enough in business, and customer service is something our organization would be working on by providing better training to employees. This is by way no means suggesting that we are a very close competitor of McDonalds. In fact what it tells us is the kind of complete transaction experience that McDonalds create and what we intend to create dont have such a big gap. Now looking at the lowest scorer but in fact most dangerous competitor to us, local food stalls who have a score of 49 on the chart. If we look at the final scores it clearly says that we beat them easily and do provide a better proposition for the final consumer. But the main advantage with these local food stalls is price. Their price is such that no restaurant can beat them in price as the restaurants have fixed costs to worry about unlike the local food stalls. But if we compare our product with local food stalls, then the price difference is not too huge but the total experience provided is much better by us.

ENTRY BARRIERS/ CONSTRAINTS:

Patents of competitors products. High start up cost. Requirement of Substantial expertise. Restrictive licensing, regulation Trademarks. OR FDA Certification. Land acquisition at selected region.

Market Segmentation
We segment our market based on the following characteristics: Income Lifestyle While segmenting market according to income, we consider middle income and above as our regular customers. While segmenting market according to lifestyle, we consider the fast moving mumbaikars, who hardly have time to spend some time on a meal. This includes working class people, college and school people, and others who are on the run. 12

This gives us our segment as people with a busy schedule who are on the run and have less time to spend on their meal. Off course there is another segment of people who just want to have a normal meal and find our product as a probable option for their need. We would call this segment as our bonus market to begin with as we are not planning to spend too much in advertising in the start and to convert such people into regular customers it takes too much advertising expense. If we had to define our market in the form of clustered sampling and test our target market on the characteristics of low middle income and traditional modern lifestyle, then it would look like this :-

Here A represents the major chunk of our market which falls in the modern lifestyle and middle/high income group. This is mainly because these type of people are the biggest consumers of fast food and also because they have to money to do so. B represents middle\high income and traditional lifestyle segment. This would be a smaller market as even though these people have the money to spend on such foods, yet these foods may not be their first preference. C represents low income and modern lifestyle segment. Even this segment is small considering the fact that even though these people are willing to consume our product, but may not always have the money or may not find it economical to do so. Considering all of this, we have tried to price our product as low as possible for us, as we want to tap as much market as possible. Yet the above analysis still holds true for a very low income group and unwilling customers.

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MARKETING MIX: Product:

Types: Masala Dosa Roll Mysore Masala Dosa Roll Paneer Dosa Roll Chinese Dosa Roll Roll Dosa Roll Special Sweet Dosa Roll Cheese masala Dosa Roll Cheese Mysore Masala Dosa Roll Packaging of product: Dosa Roll will be wrapped in aluminium foil, which will keep dosa roll hot and fresh. be seen as hygienic food. be easy to hold without feeling the hotness. facilitate foil disposal easy for consumer, also foil will be environment friendly unlike plastic. Service as a product: In restaurant or hotel industry, customer is also a part of the product. In short, in our business, product comprises of the actual product plus customer service. Hence, with respect to customer service, we will provide, Quick service. Hygienic food service. Clean service tables. Clean Infrastructure. Easy payment system. Clean drinking water. Well ventilated and illuminated surrounding. Rs.08/Rs.12/Rs.15/Rs.10/Rs.20/Rs.15/Rs.12/Rs.14/-

PRICE
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As per the type of items in the menu, price will vary. Minimum price item would be of Rs.10/We will go for penetration pricing strategy, where we will offer two items at lower prices, Masala Dosa Roll : 10-2 = Rs.08/ Chinese Dosa Rosa : 12-2 = Rs.10/This price will increase after 2-3 month after proper establishment of the business.

PROMOTION:
We will go for following promotional channels, Balloon advertising: this is a new concept of advertisement where very huge inflated balloon will be floated in air, this is used as a medium to promote on-set of a new venture. Glowing brand name Roll Dosa Roll with neon lights to catch the attention of by passers. Big visible Menu card at take away counter to make by passers aware of the item prices. Keeping games at school and colleges where students will get discount coupons after winning. Banners at BEST BUS STOP. Use of orkut. By sending mails to all orkut members sharing our experience at Roll Dosa Roll. Using Print media like newspapers as a publicity medium.

PLACE:
We will establish our outlet near Ghatkopar station at west side. Being near to Subjee Mandi, quick procurement of raw materials will be feasible. Also inventory would be less. Within High density population, due to near by residential colonies, colleges, schools, offices, BEST bus stop etc. No branded fast food outlets near station. Metro Train Service to start soon, from ghatkopar to versova. 15

FINANCIAL ANALYSIS: Profit & loss account.xls FUTURE PROSPECTS AND CHALLENGES: Future prospects for our business will be in following terms, Expansion: medium term expansion plan is to setup new branches in Mumbai and Navi Mumbai. Long term expansion plan is to move outside Mumbai and look for new avenues like food parks and other cities. In Mumbai we plan to expand in places like other busy local railway stations, upcoming metro station, malls etc. Outside of Mumbai we would first look at other metros & big cities where dosa is a regular food. Introducing new items in Menu: for the purpose of providing more variety to our customers we intend to experiment with new recipes and plan to increase new types of dosa rolls in our menu. Better marketing avenues: once we have enough branches to justify the cost of costlier marketing avenues, we will move into marketing and promotion techniques like radio advertising, build our own website, home delivery facility, online booking, and many more. Brand building: once the revenues justify the cost of spending more on brand building, this exercise will be implemented by signing a well known brand ambassador for our business promotion. More word of mouth will be spread for our organization by spreading case studies related to our business model and functioning in management and other graduate colleges. Introduce new supportive products: products like lime and other juices will also be served at our shops to increase the revenue. Retaining employees: the food and beverage industry has a very high attrition rate. For this reason it becomes very necessary to retain employees as cost of recruitment and training of new employees can be a major setback. Standardization: once the business is spread among different branches, it will become very necessary to maintain the taste, quality and other features of dosa roll through out all branches. It basically means that when a person eats our dosa roll at one branch and then tries it out at another, there should be no apparent difference in the product and the experience of buying the product.

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REFERENCES
Websites www.ibef.org www.Consumerpsychology.com www.Worldwatch.com Websites of Mcdonalds, pizza hut, Subway, dosa plaza and jumbo king www.Mouthshut.com www.Wikipedia.com www.Usda.com www.epwrf.res.in www.rediff.com/money/2004/oct/30spec2.htm www.idsfortune.com/success_strategies_case_studies.html

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Books The successful business plan Rhonda Abrams. Marketing Management Philip Kotler.

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