Marketing Plan Group 3

KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT

Marketing Plan of Kalyan Foods Pvt. Ltd.

Aarogya Aahaar

Group 3

Chanda Kiran Adhikari 14301

Minakshi Agrawal 14304

Pragya Joshi 14318

Raskin Maharjan 14321

Jyotsna Shrestha 14329

Submitted To:

Assistant Professor Rojan Baniya

Date: 7th September 2014

Kalyan Foods Pvt. Ltd. Page 1

1.0 Executive Summary

Kalyan Foods is a company established with the sole idea of providing clean, hygienic and

healthy food to the growing children to meet their nutritional needs.

Thus, the company is providing a product called Aarogya Aahaar focusing on the niche market

which would be one of the renowned schools of the valley, DAV Sushil Kedia Vishwa Bharati

School.

DAV School has a strict policy of vegetable lunch for their students. So, our company has

planned to provide Pure veg tiffin service for school children with taste, health and hygiene.

The company has a view to position itself in the DAV school as a companywhich provides home

like tiffin service for the school kids. Focusing on this trend we have developed the marketing

plan for the company.

The product offered is Aarogya Aahaar, a pure veg tiffin service for school children with taste,

health and hygiene. The market segmentation is on the basis of grades which is divided into 2

segments: grade1-5 and grade 6-10. By using the percieved value pricing method, the package

for grade 1-5 is priced at Rs. 1700 and package of grade 6-10 is at Rs. 1900. Both above the line

promotion like print ads, and below the line promotions like word of mouth, direct and

interactive marketing, Happy day campaigns will be used to communicate the value to the

customers. Constant feedback from the customers will be taken to assist in control and

improvement mechanisms for our products accordingly.

The financials and the marketing budget prepared will assist in having a clear view of the

implementation of the marketing plans.


2.0 SITUATIONAL ANALYSIS

2.1 Market Summary

There are around 100 educational institutions in the Kathmandu Valley which includes schools,

higher secondary colleges and universities with various programs. Among these institutions, the

school is a field of opportunities for a company like Kalyan Foods Pvt. Ltd

Target market

Kalyan Foods target schools are those affluent schools whose monthly fee starts from Rs

10,000. Since the company is new in the market, at the initial phase, it will be targeting one of

the top schools of the valley DAV Sushil Kedia Vishwa Bharati Higher Secondary School. We

will focus on nutritious, hygienic, tasty vegetarian homemade food being available to the school

going children.

2.2 Market Demographics

Geographic

Since we are targeting DAV, we will be focusing on Lalitpur district, particularly in Jawlakhel

area. There are other affluent schools in this area like St. Marys School, which can be our

potential customer.

Demographics

Our target falls under the affluent group; school with monthly fees above Rs. 10000.

Approximately, the customers would be 1500 students belonging to the family of higher middle

class. The school has classes running from grade nursery to Bachelor level.

Behavioral factors

The parents today are worried about the degrading immune system of their growing children. But

they cant directly control foods their children consume outside the home; even in schools.

Moreover, the Indian parents want their children to consume pure vegetarian foods and they are

worried that the foods consumed by their children are not up to their standard.


Families today are turning into nuclear ones, consisting of both working parents which leads to

limited or no time to prepare a homemade lunch boxes for the children.

2.3 Market Needs

The following are the major needs of the major customer segments:

Students of Grade 1-5: fun looking yet healthy meal, small quantity

Students of Grade 6-10: varieties of tasty food.

Parents: Healthy, pure vegetarian home like tiffin for their children, reasonable price

School: Good quality food service provider who uses fewer resources, availability of space in

school compound in compare with canteen which requires extra space.

2.4 Market Trends

On a usual school day, a school going student spends around 8 hours outside their home starting

from 8am in the morning. It is very difficult for the parents to cook something healthy as lunch.

The changing demographics where the females are no more limited to kitchens (working

women) have also made it difficult for homemade tiffin. So the common alternative is junk food

or the school canteen. Junk foods are unhealthy and have poor nutrition. Obesity and

malnutrition are its harmful effects on children. One of the most complained facility of a school

is its canteen. Not enough variety of vegetarian foods and lacking a homely taste has made

students avoid canteen food. This is where we come to play with our unique concept of

providing a tiffin service to these homely food deprived students.

2.5 Market Growth

There are around 6 affluent schools in particularly in Jawalakhel area with at least 1000 students

each. This area is a good market where our business can explore. The number of Indian

population is increasing in Nepal. There are other schools like Modern Indian School that

differentiates as a perfect educational institution for the Indian children. These schools can be

our future customers.


2.6 SWOT Analysis

Strength Weakness

Kalyan Foods works with Nutrition

Professionals and specialists.

Motivated employees

Varieties of food

First mover advantage

Less capital

Far from DAV school which is our

primary target market.

No flexible choices. (routine meal)

Opportunity Threat

Parents are being more conscious about

nutrition fulfillment of their children.

So they prefer foods services rather

than junk food.

Working parents prefer these kinds of

services.

Less current competition in tiffin

service providers for school.

Future Competition

In the schools having canteen,

penetration may be comparatively

difficult.

Food transportation might take time

because of traffic jams.

2.7 Current Competition

Currently, there are few other businesses who supply packaged food but they focus on the

business area. In that sense, Kalyan has minimal competition. However this doesnt mean we

dont have to face competition. Our major competitors are canteens in schools. There are

competitions for obtaining canteen contracts in major schools. Kalyan foods have to tackle with

canteen to get the contract in school by offering better value proposition to the customers. One of

the reasons for targeting DAV is that we can avoid competition with the canteen.

There are many businesses who supply packaged food as per order to different types of segment

but they havent focused particularly on providing tiffin for school students. We can categorize


this as potential competitor as they can easily switch their market to schools. Therefore our

current competitors are

Tiffin Time - service for office goers

Womens Tiffin especially focused for working women

Catering Services

School Canteens

2.8 Current Product and Offering:

Our product is Aarogya Aahar which would be served in the meal in such a manner that there

would be no repetition within a week, thereby avoiding monotony and developing taste for

varieties of food.

Menu for the 100%Pure Vegetarian meal Aarogya Aahar

DAYS PACKAGE 1 PACKAGE 2

SUNDAY Veg Biryani & Manchurian Jeera Rice & Matar Paneer

MONDAY Momo & Veg Pakoda Veg Roll & Chowmein

TUESDAY Kheer & Puri Sabji Veg Pulao & Dal Makhani

WEDNESDAY Sandwich, French Fries &

Juice

Burger, French Fries & Juice

THURSDAY Stuffed Paratha, Dahi &

Pickle

Rice, Dal Fry, Aloo Matar

Sabji & Pickle

FRIDAY Spring Roll & Juice Pav Bhaji & Juice

Note: The above menu would be 100% vegetarian, freshly and hygienically cooked. It will also

be served with salads or fruits, as per suitability.


The Highlights of our product are:

Pure veg, healthy and hygienic food

Health being the primary focus, Aarogya Aahar is completely free from

Monosodium Glutamate.

We have a strict policy of cooking and serving on the same day.

The freshly cooked food is packed in a hygienic food grade disposable box which

not only preserves its nutrition but also keep it warm.

We consult dietician to provide best nutrition.


3.0 MARKETING STRATEGY

The key to the marketing strategy is the focus on providing homely food with reasonable price

and developing health plus nutrition level of students of DAV school.

3.1 Mission:

Kalyan Food aims to provide a complete package of health, taste and nutrition in a veggy box,

moving hand in hand with modern parents to help their children grow into healthy and happy

individuals.

3.2 Marketing Objectives:

To meet the sales given in the financial forecast table

To establish itself as well-known tiffin service provider for school kids in Kathmandu

valley.

To position Kalyan Foods as high quality tiffin service provider. Health and taste in a

box.

3.3 Financial Objectives:

To generate minimum 20 lakh rupees as surplus for supporting capacity building and

market expansion.

To pay back all debts within 2 years.


3.4 Market Segmentation

Kalyan Foods can categorize its market as follows

After segmenting the market into different school groups, Kalyan Foods (P) Ltd will now be

focusing on private schools with

- students from affluent class family

- having fees more than Rs 10000 per month

- located at city area

- presumably having no canteens

Currently, Kalyan Foods (P) Ltd. is specifically targeting DAV school which is located at

Jawalakhel. Its also one of the affluent schools in the valley and it has no school canteen

facility.

There are students from kinder garden to Bachelors level in DAV school. We can see the

segmentation of students in following three categories.

Kinder garden U.K.G: Students in this segment are of age 3- 6 years. As these children are

very small in age and require very small amount of food their parents prefer to provide them

with tiffin made in their own home rather from tiffin service provider. So, they are not our

target customers.

Standard 1- 10: Students falling under this category are our target customers because these

children cannot enjoy the canteen facility. These groups prefer junk foods over home-made

Schools

Private

Students from affulent class

family

students from normal family

Public


foods. On top of that, their parents do not have enough time to prepare home-made tiffin,

which increases their consumption of junk food, adversely affecting their health.

Standard 11- Bachelor level: Students in this category are free to decide their food choice and

prefer going out with their friends to have lunch. They dont like to eat tiffin lunch. So, they

are not our target customer.

3.5 Target Market

Before adopting any positioning strategy, first of all we need to understand the customers and

their needs by analyzing consumer markets.

Analysis of End customer: Our end customers are students. So we can analyze students in

following way-

Cultural Factors: DAV school has policy of only vegetarian food. So, students must eat

vegetarian tiffin only.

Personal Factors: Students of age 6 years to 16 years are very young and love to have

different varieties offood. They dont like to have same lunch for consecutive two days.

Our end customers are student; however, they dont have purchasing power. Parents are the

actual decider and buyer. Buying behavior of parents can be influenced through our marketing

plan as follows:

Problem Recognition: Since there is no other tiffin service provider previously in market,

parents are not aware of this type of service. They have latent demand for our product. So,

we can make them aware through promotional strategies.

Information search: Normally parents tend to prefer word of mouth communication channel.

So we have to position our brand strongly in the market so that it creates positive word of

mouth. Since we are targeting modern high middle class family, parents may surf the internet

to search about tiffin service provider.We need to develop clear and attractive website

emotionally associating our product with health of their children.

Evaluation of alternatives: School canteen is strong alternative for our product. Currently

DAV does not have canteen. But in future we want to expand our business to other schools


which may have canteen. So we have to try to deliver more value to our customers in

compare to alternatives. We have to take regular feedback and try to develop our service to

match the expectation of Parents.

Purchase decision: We have made easy purchase process. There is monthly payment system.

Parents will pay the monthly charge for our service to school administration. Parents may

have different perceived risks like functional risk, physical risk, financial risk or

psychological risk. We are making our product healthy, cost worthy, and hygienic to clear

such risks from their mind.

Post purchase behavior: We have to make sure to take regular feedback from parents as well

as students to take suggestion about improvement. The tiffin will be easy to dispose as

disposal boxes will be used

3.6 Positioning

Kalyan Foods (P) Ltd. plans to come up with functional positional concept which solves problem

and provides benefits to customers. It will position itself as high value tiffin service provider for

school kids. It would like to be known for its:

Fresh, hygienic and nutritious tiffin service provider

Timely delivery

Effective waste and contingency management.

3.7 Differentiation

Kalyan Foods services are in itself a point of differentiation because of its unique concept. No

other competitors have offered such services for school kids. Further we can classify this point of

difference into product differentiation, service differentiation and employee differentiation.

Product differentiation- vegetarian hygienic food with ample amount of nutrition level

required for school kids.


Service differentiation- tiffin boxwill be delivered on time with accuracy and speed. We

will also compensate for absent students. For this, every morning school will email a list

of absent students to Kalyan. The list will be compared with the consumer students and

the tiffin of the absentee will not be sent. This will add value to our service and also will

help to reduce over production. Happy Day campaign will provide delight to the

customers as a surprise food item will be placed in their package once in a month

Employee differentiation- professional chefs, Nutrition specialist

Corporate Social Responsibility- if any extra food not supplied to the students remains, it

will be taken to an orphanage home.


4.0 MARKETING PROGRAM

4.1 Product:

We are providing hygienic, nutritious lunch to kids. Our product is value based , quality focused

with reasonable pricing. Our product is Aarogya Aahar which would be served in such a

manner that there would be no repetition within a week, thereby avoiding monotony and

developing taste for varieties of food. (For further detail, refer to the table 2.8)

4.2 Pricing:

Since our main focus is to deliver high value to the customers, we will be focusing on perceived

value pricing. During our research, parents were willing to pay a high price if they could control

what their children consume. But we also have to consider the incurring production and

promotion cost as well as the markup/ profit. After considering all the factors and keeping in

mind the concept of perceived value pricing, we will be setting two price systems:

Students of Grade 1 to 5:- Rs 1700 per student per month.

Students of Grade 6-10 :- Rs 1900 per student per month.

This third degree price discrimination is done on the basis of consumption quantity of students.

Children from grade 1 to 5 require less food quantity in tiffin box in compare to senior students.

4.3 Promotion

The communication objective of Kalyan Foods is based on categorical need because of its new

services. The objective is to communicate this new service to create value for consumers and

meet the needs of parents and targeted students.

The message will have informational appeals to deliver nutritious and healthy food value of

Aarogya Aahar.


The company can promote their product through personal and non-personal communication

channels. Kalyan Foods Pvt. Ltd uses Percentage-of-sales promotion strategy with long term

perspective. Around 8 % of total sales is used for promotion and advertising purpose.

Personal Communication Channel (Below the line):

Word of mouth: Proposal presentations in selected affluent schools, especially in

DAV.

Short presentations in Teacher parents meeting

Events and Experiences: Having stall in School events especially in DAV

Food supply in teachers-parents meeting.

Direct Marketing: Distributing pamphlets to students, parents and teachers during

school events.

Interactive Marketing: Official account on Facebook for receiving feedback and providing

information.

Official website www.kalyanfoods.com.np

Focus group interaction

Happy day: Providing out-of-the routine food items like pastry or sweets to

students without prior notice. This will add value to our service

and provide delight to our customers.

Non-personal Communication Channel (Above the line):

To communicate to the mass, the company will give advertisement on magazines preferred by

mothers which are NAARI, VOW and school annual magazines. At initial phase, the

advertisement will be of a page in the magazines. Later considering the budget, the ad will be

given in full page.

4.4 Place:

Raw material suppliers: we will be purchasing all the vegetables from The Organic Village Pvt.

Ltd, which produces varieties of organic vegetables, milk products. Basic requirements to

prepare the foods like salt, powder, buns etc will be purchased through a local wholesaler at a


reasonable price. We chose Organic Village because it has its retail store in Baluwatar which is

near our company in Bhat Bhateni. We will be purchasing on a bulk quantity so our cost will be

reduced. Moreover, since both of our suppliers are situated nearby, it would also reduce our

ordering cost. This reduction in cost will help cover the extra charge of the organic products.

We will be transporting the prepared food in omni cargo vehicle and will be following the

shortest route to DAV. The lunch break of DAV is at 11:30 am, so the food will reach the school

by 11:15. Each package will have name of the student on it and the packages will be bundled

according to the classes. Each of these bundles will be delivered to the respected class where the

class monitor will distribute the package to each student.

MARKETING MIX

Product Vegetarian, Hygienic and free from Monosodium Glutamate (Ajinomoto)

Price Superior, Perceived Value and reasonablepricing

Promotion Print ads, word of mouth, direct, interactive marketing and experience based

cost effective promotion strategy.

Place Cost effective distribution channels for raw materials and on-time delivery of

product to school.


5.0 FINANCIALS

The companys major investments are made on furnishing the kitchen accessories and

equipments to make it more efficient and effective. The total capital is Rs 5,000,000. The sources

of capital are 30% (Rs 1500000) debt and 70% (Rs 3500000) are from promoters i.e. owners

equity. The loan has 12% interest rate.

The forecasted income statement is given in the table. Each income statement is divided into

quarters.

2014 2015

4th qtr 1st qtr 2nd qtr 3rd qtr 4th qtr

Sales 5340000 5600000 5700000 5900000 6290000

Less: Cost of goods sold 2136000 2240000 2280000 2360000 2516000

Wages and salaries 534000 560000 570000 590000 629000

Operating Expenses 267000 280000 285000 295000 314500

Utility expenses 106800 112000 114000 118000 125800

Commission paid to

school(5% of total sales) 267000 280000 285000 295000 314500

Net Income before

interest and tax 2029200 2128000 2166000 2242000 2390200

6.0 Control

Kalyan Foods (P) ltd will be monitoring and controlling on following ways:

Strict monitoring on purchase of organic raw materials.

Nutrition specialist will make sure about quality of food.

Proper inspection before dispatching the goods.

Feedback from students, parents and teachers every month.

Delivery on time

Keeping track of all the expenses and always looking for possible cost reduction areas.


7.0 IMPLEMENTATION

DETAILED ACTIVITY WISE EXECUTION SCHEDULE FOR 2015

ABOVE THE LINE

DETAILED

ACTIVITIES

DEADLINE Time of

Execution

Key activity Responsibility

Print ad on NAARI Nov 20 - Dec

01,2014

Mar 20 - Apr 01

Jul 20 - Aug 01

Jan

May

Jun

Contract with Naari Advertising

head and staffs

Print ad on VOW Nov 20 - Dec

01,2014

Mar 20 - Apr 01

Jul 20 - Aug 01

Jan

May

Jun

Contract with VOW

Print ad on DAV

school magazines

Dec 01 - Jan 01 Mar Contact DAV school

for giving key ad in

magazine

BELOW THE LINE

Proposal

Presentation

Jan 05

July 05

Jan

Jul

Preparing proposal Promotion

head

Presentation in

Teacher-Parents

meetings

Apr 04

Aug 03

Dec 03

Apr

Aug

Dec

Preparation for

presentation

Promotion

head

Food Supply in

Teacher Parents

meetings

Apr 04

Aug 03

Dec 03

Apr

Aug

Dec

Distributing the

pamphlets,

registration and

suggestion forms

Promotion

head

Food Stall in School

events

Apr 04

Aug 03

Dec 03

Apr

Aug

Dec

display of our

varieties of product

offering

Product Head

Pamphlets in events

Jun

Aug

Dec

Jun

Aug

Dec

Distributing the

pamphlets during the

key events of the

school

Promotion

head

Social Media

Frequently

depending upon

situation

Updating the people

about our service.

Promotion

Head

Happy day Each month One day

every month

Provide special food

item

Product Head


8.0 MARKETING ORGANIZATION

Since Kalyan Food Co. has a centralized structure, the owner of the company will take the

responsibility of marketing manager. The responsibility of the head would be to finalize, approve

and suggest on the marketing plan prepared by the outsourced marketing consultancy.

The organization structure of the outsourcing company is as follows:

Marketing Manager

Product Head

Promotion Head

Research Head

Responsible for

determining features of

product according to the

need of target market.

Responsible for managing

above the line and below

the line promotions.

Responsible for marketing

research.

Marketing Plan Group 3

Documents

dav school

school children

school kids

marys school

affluent group school

affluent schools

market summary

executive summary kalyan