Team The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

IIM L

Pramesh Chand PGP II pgp28276@iiml.ac.in Ketki Mathure PGDM I Ketki.mathure2002@yahoo.co.in Priyanka Singh PGP II pgp28071@iiml.ac.in

Welingkar Mumbai

Vada Pau Waala

IIM L

Case
Saurabh Agarwal PGP II pgp28314@iiml.ac.in

IIM L

Problems Identified and Assumptions

Menu
1 2
Item Cutlet Bhajiya 100 grams Kachori Usal Pau Misal Pau Rice plate Half Rice Puri Bhaji Lassi Chass Rs 8 15 10 20 25 35 30 20 20 7 Profit calculated Profits 30000 30000 Sales of Vada pau Misc Sales from other items on menu 120000 8500

Limited Earnings and sales Marginal sales of other items in the menu

Lack of Resource and Space Utilisation

Input Costs Salary ( x 7) original Total 60000 38500 98500

Mukesh Vada Pau Shree Ganesh Vada Pau

Who are We
Mukesh Vada Pau Shree Ganesh Vada Pau

What do we do

We make delicious Vada Pau savored by our customers

Why Does It Matter

We are the Second Kitchen of our locality Trusted and Loved by our Customers

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Idea: To Increase The Sales By Focussing On Vada Pau : Loved by the Locality
Implement Inclusion Program Available in Rs.50 And Rs.100
Rs 50 : 5 Vada Pau + 1 free on consumption of 5 Vada pau

Membership / Coupon System

To be Designed like a First Class Local Train Pass

Rs 100: 10 Vada Pau + 1 Lunch Item of 25 Free

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Market Strategy: Localitys own Vada Pau

Exclusivity Principle

The Pass will remain in the Wallet of our consumers This will remind him that he can eat at our Shop rather than another shop in the locality
Our Customers are Valued

Scarcity Principle

Example : Prepaid Cards used in Metro and ATVM cards in Mumbai And the prepaid cards used at play parks such as TimeZone at Malls

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Execution Plan
Implement Inclusion Program

Rs 100: 10 Vada Pau + 1 Lunch Item of 25 Free

Special Service to the First Class Pass holders

After Each Vada Pau is bought the cashier will stamp on the pass

Membership / Coupon System

Rs 50 : 5 Vada Pau + 1 free on consumption of 5 Vada pau

Sponsor Local Pandals during Ganeshotsav

Free Cup of Hot Tea with Vada Pau during monsoon season

To be Designed like a First Class Local Train Pass

Available in Rs.50 And Rs.100

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Sell Vada Pau at pandals

Pramesh | Ketki | Priyanka | Saurabh

Creates a Feeling of Trust and Belonging for the Vada Pau

Sales during Monsoon

Problem Statement: Reduced sales during Monsoon as compared to Summers and Winters

Major Reasons for Reduction in Sales: Subdued customer footfall as travelling and commuting is a problem due to water clogging Lack of proper seating and dining facilities hinders customers to wait and eat With rains come health related problems

Solution: Provide incentive to pull customer

The M ConneXion Pramesh | Ketki | Priyanka | Saurabh

Implementation Approach
Problem
Subdued Customer Footfall

Solution
Incentive: Serve free masala cutting chai a tried n tested way to usher Indian rain

Feasibility

Advantages

Cost of making masala chai is Helps attracting nominal customer in the rainy Margin can be covered from season the enhanced demand Demand enhancement Financials attached Use the helpers to deliver Optimal utilization of idle orders (above some minimum resources otherwise amount) present in monsoon season Targets the Auto & taxi Driver segment

Travelling and Start delivery service within an Commuting Issues area of 1 KM Eat on the go Service for Auto and Taxi Drivers

Health Related Issues

Ensure Quality Dont lower price as it might question quality

Food shelf life lowers in monsoon due to faster bacteria growth Thus decrease the lot size of making food items and increase frequency
Pramesh | Ketki | Priyanka | Saurabh

Brand building in terms of quality in the neighbouring locality

The M ConneXion

Addressing Lack of Seating Facility Issue

Provide customer enough space to sit, eat and enjoy the rain! HOW? Two Fold Advantage Optimum space utilization Availability of new seating facility By reducing extra kitchen space and utilizing it as seating and dining area

Kitchen

Seating Area

Kitchen

Transition in Shop Layout

New Increased Seating Area

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Financial Statements in INR

Revenue
Gross Sales Less: Sales Dicounts and Allowances Net Sales 3212000 535440 2676560

880 Per Day

Expected increase in Demand 120% Year on Year 16.67% Discount

880 per day

Cost of Goods Sold

Beginning Inventory Add: Input Costs 0 1606000

60000 for 1200 vada pau

Rs 5 Per Vada Pau

Indirect Expenses Inventory Available Less: Ending Inventory Cost of Goods Sold Gross Profit (Loss) 1606000 1070560 1606000

Expenses
Advertising Wages Total Expenses Net Operating Income 10000 264000 274000 796560

During Ganeshotsav and Navratri

Monthly Income

66380

Target Income

60000

Sales expected to grow to 1200 in three years

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Opportunity Loss:

Break Even : Within a Year

Net Earnings for First Year : 7,96,500

Negligible Opportunity cost:

with Loss of Revenue from other items = 8500*12*.5 = 51000 + Advertisement expense =20000 @ 8% interest

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Entry Barrier and Exit Barriers

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh

Thank You
Team: The M ConneXion
Pramesh | Ketki | Priyanka | Saurabh

The M ConneXion

Pramesh | Ketki | Priyanka | Saurabh