Marketing Management II

Marketing Plan

For

Arora Cold Storage

Presented by:

Ashish Jain

Shivani Aggarwal

Karishma Khatri

Ankur Vats

Introduction

Company name: Arora Cold Storage

Office: New Delhi

ACS started in 2012 and expects to expand its business in the whole of India in the next 5 years.

Retail or grocery stores in towns are the major clients for its business.

Aims to expand by way of going to Tier II and Tier III cities as well as villages which are electrified and have at least 50 square feet of land.

Cold Storage

Quality and integrity in food safety

Refrigerated storage and preservation

facilities to perishable food items

Preserving and maintaining the edible

quality characteristics until they are

consumed

Recognised for its commitment to high

food safety and health standards.

Stores have to be strategic and they

should have easy access.

Situation Analysis

ACS wants to expand in the whole of

India by developing a nationwide channel

for frozen and refrigerated food products

Strategically establish display racks in

stores

Position itself in all towns and electrified

villages

Make display racks available for either

sale or lease.

Market summary

Market for frozen goods racks is expected to increase as:

Increase number of retail outlets increase racks demand

Increase in disposable income of people increase demand of such kind of food items

There is a wide range of products available which increases the competition and companies tries to display their products in racks

Market shifted from counter-service to self-service

Stores pioneered the concept of multiple retailing, capitalizing on bulk buying and economies of scale.

SWOT ANALYSIS

Strengths:

Previous experience

Strong plan of expansion

Low expenditure required for advertising,

selling can be done via sales calls and

positive industry connections

Develop the brand using ‘Word of Mouth’

techniques as it is best and cheapest way

of communicating

Weakness:

Tough to expand, hampered by way of

cultures, languages and ethnicities

Leasing is difficult to monitor all over

India and it would also require a lot of

managerial efforts

Lack of awareness in states other than

Delhi can also create a problem in

negotiation of deals

Opportunities:

Diversify the product line

Open full-fledged stores of their own

Diversifying into storage of medicines

Start selling packaged food

Threats:

Duplication of technology by store owners

and developing their own cheaper

alternatives

There are a few competitors who offer

quality product at lower prices

Competitive Comparison

Compartmentalization of racks that we

offer provide opportunity to store different

commodities at their respective temperatures.

This increases the level of reliability .

Sell benefits in terms of confidence and

providing quality cold storage racks at

justifiable prices to our customers.

Aim at maximising the personal interaction

with customers to gain trust and loyalty

Product Offering

Cold storage racks with customization

that will either be leased or sold

Intermediary for certain line of frozen

foods

Objectives

First year - To build upon the contacts of Delhi to reach other states of north India. The immediate target is Haryana(Gurgaon) and Uttar Pradesh(Noida)

Second year- Cover rest of north India. Consistent performance with existing buyers becomes key to expansion

Third year- Cover the rest of India. This can be done via sales calls both real and virtual.

Fourth year- Follow up of each and every lead. Reasons to be studied for both successful and unsuccessful ones.

Fifth year- Put the learning of the last year into action. Consolidate relations with the buyers. Also look to become

first choice in India.

Target customers

Looking to target all stores both in urban

and rural set up with an area of 50 meter

square. We can also set our eyes on a tie

up with a chain of stores.

Positioning

Aim to position as market leaders in the

cold storage business as far as Delhi is

concerned. We need to be backed by

sound credentials and a diverse set of

finance options to lease or sell our

products and make the value proposition

attractive

Strategies

Product- Offered with the feature of customization. Dedicated team will look after the installation

Pricing- Offered with various finance options for both sale and lease. Tie-ups with selective banks

Promotion and marketing communication-Majorly via sales calls and positive word of mouth

Distribution- An online portal for ordering, outsource the transportation and warehousing

Marketing Research

We will have constant feedback from the

store owners. This will be done by

sending a company personnel every

month. We will also try to have

knowledge about competitor’s products so

that we keep an eye on any product

innovation if happens.

Financials

Total first year sales revenue - Rs. 2 crores

Average realized price of Rs. 20000 per unit

Variable cost per unit of Rs. 16000 for 1000 unit sales.

Fixed Cost - Rs.2000 per unit.

Earnings from maintenance includes Rs.7,50,000 and the technicians costs around Rs. 5,00,000.

Total profits includes 20lacs+2,50,000= 22,50,000 for 1 year.

The ratio of Profit for sales =11.25% which is quite good for expansion of an enterprise.

We give trade discounts to our regular customers @5% on every new purchase.

Implementation

A 24x7 call centre which will help store

owners to put grievances forward. This will be

outsourced

Weekly monitoring of the reports from the call

centre

Intensive lab testing of the cold storages

before workers leave the manufacturing plant’s

door