Developing a Strategic Cost Management Model
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http://www.littleindia.com/news/123/ARTICLE/1445/2005-03-05.html GUPTA CHAAT CENTRE BY NEHA GOYAL (78) RASHMI KADAM (83) PUSHKRAJ PANDIT (109) JYOTI RATHOD (118) PGDM 2007-09 TRIMESTER VI (FINANCE SPECIALISATION) TABLE OF CONTENTS 1 SR.N SUB NO TOPIC PAGE O NO 1 Executive Summary 1 2 Current Offering 1 3 4 SWOT Analysis 4 Survey Results 6 5 New Ideas for Implementation 10 6 Marketing Plan 12 7 Steps To Execution of the Plan 13 8 Financial Projections & Analysis 14 EXECUTIVE SUMMARY Mumbai food comprises a wide range of exotic traditional cuisines and spicy fast food. The local residents of Mumbai love to savour spicy chaat from the road side food stalls of the city. Bhelpuri, Pav Bhaji, Pani Puri and Vada Pav are 2 some of the delicacies of Mumbai. There must be something about chaats or street food of India that multinationals with their variety of chips and burgers have not been able to replace. Despite the sudden mushrooming of American fast food joints across Indian metros, churning out their monotonous fare of burgers and French fries and insipid coffees, the grassroots level street food and dhabas will always be there. Mumbai’s chaat stalls are found in every corner of Bombay. Its an indispensable part of street food culture in Mumbai. Chaats are really light on the budget and can be eaten easily at anytime of the day and which is quite filling. The business that we have chosen to work on is Gupta Chaat Centre which offers a variety of chaat items like Sev Puri, Bhel, Sandwich (Cheese, Grill), Dahi Puri, Pani Puri and Cold Drinks Corn Dishes. We think that Gupta Chaat Centre has a good potential to be an effective business. A number of parameters like networking, marketing, etc which are required for an effective business are missing in the way Gupta Chaat Centre is presently running their business either due to capital constraints or underutilisation of the resources. CURRENT OFFERING SWOT ANALYSIS 3 Strengths Space – They have space for seating area which they have not utilised properly. Staff/Skills – The people working at Gupta Chaat Centre were mobile chaatwala prior to becoming an employee at this centre. So they are already experienced, skilled and efficient. There are 3-4 people at the front and their roles are very clearly defined according to their skills and competencies. For example, there is one person responsible for collecting cash and taking orders. Quick service and customer satisfaction is at the core of all their activities Support activities - required for running this business are already in place. By support activities we mean: Transportation of raw materials, pre-preparation work (chopping, peeling, etc) is all done with efficiency since the staff is already experienced. Sourcing of raw materials - It is done in required quantities from optimal sources and prices. Weaknesses Location - Due to its location, not many people are aware of Gupta Chaat Centre. Marketing – They have not worked on marketing. The only marketing this business has is word of mouth marketing. Offerings – Currently their offerings are limited. Working hours – Their working hours are from 2 pm to 10 pm. They are not making use of the space available before 2 pm. They are paying rent on a monthly basis for the whole day. Opportunities Marketing –Marketing is one way in which they can make people aware of their chaat centre. They can start by distributing pamphlets outside the colleges in Matunga area since their budget is very low and the target audience will be college goers. Forward integration – They can start catering business. They can send people with mobile chaat at kids birthday parties, small functions, etc. And at these functions or parties they can distribute pamphlets here as well.Also they can set up stalls at weddings. 4 Expansion – With the opportunities that we can explore by applying design thinking to the existing business model expanding it to include a larger customer base with diversified products. Varieties/diversification – Introduce other items like nimbu pani, jaljeera, vada pav, ice cream, etc Working hours (Presently 2 – 10) – They should start some other business in the same space which is idle before 2 pm. Mobile chaat – At a particular time of the day maybe when the colleges or office gets over or during breaks they can send one of their staff members with mobile chaat Threat Increase in the number of competitors Since their centre is on rent, there is a possibility of the owner to impose certain restrictions Due to Low profits margins there is a lower reserve to compensate for a seasonal or accidental loss. Currently in this area there are 3 major colleges which form a major customer base for the chaatwalas. In these respective colleges there are canteens which have similar offerings. However, they fail to attract college crowd due to lack of expertise at making chaats. This is a major reason chaat centres outside institutes attract people. If the college canteens offer a similar offering as the chaat centre outside then there can be a considerable reduction in the customer base of these chaat centres which can seriously jeopardise their business viability. 5 SURVEY RESULTS 1. How often do you have chaat (frequency)? Weekly 29 Once in 2 weeks 8 Once in 3 weeks 7 Once a month 6 50 2. Where do you go for chaats? Particular chaat 16 Any chaat centre 34 50 3. Rank the below according to your preference: - ( 1 being highest and 5 being lowest) . No two parameters can have the same. Price 43 Taste / 26 Hygiene 11 Quantity 7 6 Location 13 100 4. How much time do you generally spend at a chaat centre? Less than 10 min 3 10 mins - 20 min 26 More than 20 min 21 50 5. Do you avoid chaats because of the calorie content? Yes 20 No 30 50 6. Would you be encouraged to have low calorie chaat? 7 Yes 38 No 12 50 7. Would you be tempted to spend more time at a chaat centre if there was sitting area? Yes 31 No 19 50 8.Are you willing to pay more for a customised chaat? Yes 33 No 17 50 9. If yes how much? More that 3 Rs 19 More that 5 Rs 10 More that 10 Rs 4 33 8 10. Are you willing to try new items at a chaat centre? Yes 27 No 23 50 11. Which of the following do you eat most no of times? Bhel puri 7 Sev puri 15 Pani puri 13 No of These 15 50 Findings From the Survey 1. Generally a Chaat is not preferred by any criteria but the choice is adhoc most of the time 2. Generally price is the major factor influencing the customers 3. Most of the people spend 10 mins- 20 mins having chaat leaving a good window to sell more 4. There is low awareness of the calories related to chaat but this can be turned in an opportunity by making them conscious about calories 5. People come to socialize more than just have chaat when they come in aleast 2 or more 9 6. People like to customize their chaat as per their taste and preferences. 7. New items have a good potential if they fair well in the initial phases of introduction as a good number of customers have shown interest in trying something new NEW IDEAS FOR IMPLEMENTATION 1) DIET CHAAT Obesity has reached epidemic proportions in India in the 21st century, affecting 5% of the country's population. India is following a trend of other developing countries that are steadily becoming more obese. Unhealthy, processed food has become much more accessible following India's continued integration in global food markets. Indians are genetically susceptible to weight accumulation especially around the waist. With increase in the awareness of health and other health related businesses, there is an increasing trend of people in the urban areas that are becoming more aware of the diet and calorie conscious while having food. Still there is a low level of consciousness among people for diet related restriction while having chaat ( we found from survey). This can be a real threat if people change their fast food habit w.r.t chaat and vada pav being calorie conscious To start with, this offering will be beneficial form two point of view (calorie values analyses what we include). Increase in awareness of the calorie intake when we have chaat will increase the customer’s comfort feel about having regular chaat Secondly it will attract people by clearing the perception of it being not healthy (as a part of fast food) Baked puri replacing fried puri used in pani puri , roasted boondi instead of fried boondi, using mineral water instead of tap water, no potato as they have high calorie content 2) CUSTOMISATION In today’s world most of the companies are opting for customisation to attract customers. Companies are willing to go an extra mile to satisfy the customers since there is huge competition in every field. We at Gupta chaat centre are proposing to use this concept to not only retain customers but also attract new customers as they will be getting a lot of variety to choose from. In this concept we would be having a different counter wherein the customers would be allowed to choose from the vast varieties. These varieties would be different from the 10 usual ingredients that are popular amongst all the chaat centres. For eg:- when a person selects to have a plate of paani puri he can decide to have all 6 puris in 6 different ways.