ABHISHEK KUMAR DEEPAK KUMAR MOTILAL GAURAV SHARMA MOHITA SHARMA

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NEW PRODUCT DEVELOPMENT

Objectives to be covered

Price

Business Model

Food world

Location

Brand

Brand

Spencer & Company was founded in Madras in 1865. Before independence they had good customer relationship in terms of liking of the product by British people but after Independence their sale went down and then 1970 RPGs took over the spencer & Company.

RPG came up with the new name of Brand called Foodworld was designed with the alphabet W to appear as two tick-marks in red colour. They were offering the top brands in the market across categories, supported by Foodworld store brand.
We came up with the conclusion that the brand image was good in the market so marketing plan has to discuss.

Price

Pricing was competitive in nature (that was to be in the line with the corner grocer). SKUs or staples category products were planned to cheapest in the cities to attracted the more regular customer. Top 15 Branded SKUs @ 3% below MRP. Mega Price offer on at least two SKU every month. 52 weeks continuous promotion. Aim to build an image of shop as VALUE for money store. For fresh vegetables, The top 5 items would be cheaper in comparison to market price and for the other vegetables the price were on par with market price. Fruits sold on the premium quality price.

Location

Layout will be establish in residential high streets with minimum 6000 house hold in 2/3 Km radius preferably in shopping area of the locality. Only ground property floor btw 3000 to 3500 sq fit selected. Preferred outlets were closer to home.

Business Model

They have focused on four category of retail outlets.

Small=

64% Medium=25% Large=8% Very Large=3%

Merchandising strategy and supply chain.

Carrying everything that a typical target household would shop on daily, weekly or monthly basis. Four type of categories items:
Destination

(Cereals, Pulses, Edible oil, Veg.) Convenience (Noodles, Cigarettes, canned non veg.) Occasional (Paper goods, Battery) Routine (Jam, Hair oil, Liquor, Skin care)

Target Segment and Promotion policy

Middle and Upper middle class families were decided as the target market for the shop. The shop were to be positioned as residential full service supermarkets with limited fresh fruit and vegetables. Marketing strategy

Target segment

Middle and upper class Mass market phenomenon Store ambience Top brands offered

Positioning strategy

Direct mailers and shopping guide were main communicator for promotion. Posters, Bulk merchandising, Floor display used to attract customers.

Key Competitiors

-Pantaloons -Nilgiri's franchise pvt ltd. -aditya birla group -Subiksha Trading Services Pvt ltd -Reliance Industries

Advantage of FoodWorld over its competitors

Brand Image. Family Business for almost century. Low price. Aware of Indian Market need. Giant Store format. Location of store. Value added services.

Conclusion and Suggestion

Company need to focus on Main group those give Highest margin -Perishables i.e 20.18 -Processed food i.e 18.20 -Non-food item i.e 17.94

Business Model Analysis

Total

number of store Chennai 6 store Bangalore 8 store Hyderabad- 5 store

Category Operating Exp A type store 2 1448 B type store 9 3098 C type store 8 2632

PBT (Rs. 000) 2270 1448 1096

A types stores are only profit earning stores for FW.