Marketing Plan - Group 10
Marketing Plan - Group 10
Marketing Plan
BEST DELIVERIES
Submitted By :- Group 10
Abhay Ramesh – (cpg07bm001)
Balaji.J – (cpg07bm019)
Cyriac Thomas – (cpg07bm025)
Deepa Bharati – (cpg07bm027)
Rama J Saroke – (cpg07bm081)
Ranjani.G – (cpg07bm083)
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4.0 Financial Analysis 12
4.1. Initial investments 12
4.2. Expense forecast 15
4.3. Income forecast 17
4.4. Breakeven analysis 19
4.5. After three years 19
5.0 Control 22
5.1. Implementation milestones 22
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1.Executive summary:
Best deliveries agency is first of its kind in providing delivery boys to retail
stores and restaurants owners. The mission of the agency is to help the retail store
keeper and restaurant owners in delivering satisfaction to their customers. Best
Deliveries Company is an agency which provides delivery boys to retail shops,
restaurants and other required business. There is large demand for delivery boys in
the retail and restaurant market. Generally the need of number of such delivery boys
on weekdays and weekends differ. Also, for giving this home delivery services either
they have to send their people during rush hours or unnecessarily keep additional
people for delivery purpose during weekdays when there is not much demand. So,
there is great market for this service in India as number of shops and restaurants
providing this home delivery services are increasing.
Best Deliveries Company provides delivery boys along with vehicles to the
shops as per their monthly requirements. The potential market for are this agency are
mainly retailers and restaurant owners as shown by the market research .The target
market is the segment of business present in market which provides home delivery
services to their customers.
2. Situational Analysis :
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2.1 Market summary:
The market research was conducted among the different restaurant and retail
outlet owners across the city. This has helped us in identifying the target customers
and the preferred charge for the service. The survey has also helped us in analyzing
the need for our service in the market.
30%
Restaurants w illing to avail our
service
Our future customers
70%
RETAIL OUTLETS
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The geographical characteristics of Coimbatore city is not of a hilly nature so we don’t
have to opt for heavy powered vehicles like jeeps and SUVs. Other than this, the traffic in
Coimbatore city is not so dense during day time. Since most of our retail delivery will be in
noon time, we don’t have to take traffic for consideration. But for restaurant deliveries and
some retail deliveries which will be at morning or evening time we are taking traffic in to
account.
2.2.1 Strengths
• Organized as well as unorganized retail industry in India’s booming.
• Trend of giving more importance to comfort rather than money.
• Boom in economy and inceased purchase power of people which our
customers(retail store keepers and restaurant owners) want to avail
• Since we are taking delivery items and deliver them on time, there is no need
of warehouse or inventory maintenance. Therefore there is no cost for getting
stockroom and maintenance charges.
• Since we are first in market, we have no direct competition. So chance of
positioning our service is more.
2.2.2 Weakness
• Around 40% of our present market is having their own delivery system; we
have to give our service at a cost lower than their own delivery system.
• Time taken for delivery should be as low as possible. For this we have to have
more delivery persons and vehicles which will incur more cost.
2.2.3 Opportunities
At present we are only concentrating on retail outlets only. But there are also
opportunities for extending our service to caterings, showrooms and agencies like
cooking gas, couriers, etc.
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2.2.4 Threats
• Since transportation is the vital part of our business, the unstable petroleum
charges will make us difficult to set the charges for our customers, which is a
major threat.
• There may be chances for increasing competition in future.
• Liability claims because of damages caused by delivery persons will also be a
threat.
2.3 Competition
From the market research we found that at present there is no direct competitors
who are providing this service in Coimbatore city. But the indirect competition is
from the retail outlets and restaurants that are having their own delivery system. But
in due course of time there are possibilities of having direct competition.
2.4 Services
Primarily our service is to provide delivery persons for retail outlets and
restaurants. We will send the persons with delivery vehicles to their respective shops
where they load the items to be delivered in the vehicle and deliver it to the respective
places. We charge the shops monthly according to the number of services provided,
number/weight of items delivered, and distance of delivery.
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2.6 Critical issues
If the customer needs an urgent delivery, then we have to send persons
specifically for that, which will take more cost. But we can’t charge the customers
separately for that.
The critical issue is that for restaurants there is chance having more deliveries
of this kind. So we have to tackle that situation.
2.7 Channels
The road is the major channel we are using for delivery of the services. For this we
have to have good delivery vehicles both three wheelers and two wheelers. Other than
this the communication channel we are using is telephone both landline and mobile.
For advertising purpose we can use local cable TV, paintings on our delivery
vehicles, etc. as channels.
2.8 Macro-environment
• Now the trend is that both persons in the family are working. So they don’t
have time to buy the monthly groceries and they are giving telephone orders
to retail outlets. So there is a increase in the number of door deliveries in retail
outlets.
• For parties and functions conducted, peoples are no more making the food by
their own. They are making orders to restaurants.
• If there is a fall in entire economy, it will affect our business because total
purchasing power of people will go down.
• Governmental policies regarding petroleum prices, regulations regarding
vehicles usage for commercial purpose, city traffic rules regarding movement
of vehicles inside the city will have an effect on our business.
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3. Marketing Strategy:
3.1Mission:
To provide quality service by providing delivery persons and ease out
delivery problems of businesses.
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step. The trend is people want to save their time as well as their energy and don’t
mind spending something extra for their comfort.so we are going to provide the
delivery service to that restaurants and retail outlets so that they can exploit this
opportunity of growing their business.
3.5 Positioning:
• As best deliveries agency is first to enter in the market, it will help in effective
positioning of the agency.
• Positioning the agency as the care taking agency that is helping others in
growing their business.
3.6 Strategies:
The main objective is to position Best deliveries as the entity that takes care of
the delivery problems first in Coimbatore within 2 years.
Our marketing strategies are
• Increasing customers every year.
• Creating a good image and customer loyalty
Our main strategy is going for face to face presentations and negotiations with
each and every restaurants and retail outlets along with other advertisement channels
to make people aware of such agencies.
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3.7Marketing mix:
3.7.1 Pricing:
Pricing is based on offering high value to our customers to most price
points in the market. Value is determined by the best service available, convenience
and quality.
Pricing is done according to the distance our delivery persons are
travelling. Also pricing decision is made on the basis of average price that the target
market is paying or willing to pay their delivery boys.
3.7.2 Distribution:
There is one office in Coimbatore which provides delivery persons for
retailers and hotels. They can place their orders through phone or in person.
1. Pamphlets
2. Railway reservation forms.
3. Personnel selling.
4. Cab and auto rickshaw paintings advertisement at their back.
3.7.5 Service:
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The first goal is to provide superior quality of service to our customers. We
provide service in a way that no other competitor can beat. It is one of our greatest
asset and point of differentiation.
“To determine the customer’s quality and cost preferences for the proposed
‘BEST DELIVERIES’ for outsourcing their door delivery jobs”.
4. FINANCIAL ANALYSIS:
i) Building:
We have planned to start our Best Deliveries in Peelamedu area in
Coimbatore city. Since it is our own building we don’t have any advance or monthly
expenses for the building.
ii) Furniture:
Based on the space available, we have planned to get two racks, two
tables and eight chairs for office staff and in waiting hall which totally amounts to Rs.
11,000.
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iii) Vehicle:
Initially we have planned to buy two TATA ACE mini vans and two
Bajaj CT100 bikes with a total estimation of Rs. 6,20,000.
v) Computers:
As we have planned to maintain the database of the customer’s
requirements, availability of the delivery boys, financial analysis like cash inflow,
cash outflow, credit and debit, initially we have planned to buy two basic model
computers with a printer facility with an investment of Rs. 50,000.
vi) Office arrangement:
In order to arrange the office according to our requirements including
splitting up of rooms, fans and lights and we estimate an initial investment of Rs.
13,650.
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PARTICULARS COST
Furniture 11000
Vehicle 620000
Electrification expenses 10000
Computers 50000
Office arrangement 13650
Telephone and mobile phones 5000
Office inventory 1000
Promotional expenses 19600
Total 730250
Vehicle
Electrification
expenses
Computers
Office arrangement
Promotional expenses
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4.2. EXPENSE FORECAST:
MONTHLY EXPENSES:
i) Promotional expenses:
The promotional expenses per month for Best deliveries has been
estimated to be Rs. 2500
iii) Salary:
We plan to appoint an office staff for maintaining the database and
doing office work. We plan to pay a salary of Rs. 3000.
iv) Delivery boy’s salary:
We plan to recruit four delivery boys. Their salary is split into fixed
and variable parts.
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Total salary = Fixed salary + variable salary.
= 2000*4 + (35*5 + 50*2)*1.50*4*4
Number of
weeks/month
Number of delivery boys
= 14600
v) Telephone charges:
We estimate the monthly telephone charges of Rs. 3000 and mobile
charges of Rs.200. So a total expenses of Rs. 3200.
Monthly expenses:
PARTICULARS COST
Promotional Expenses 2500
Electricity bill & water tax 800
Salary 3000
Delivery boy’s salary 14600
Telephone charges 3200
Over-head expense 3000
Total 27100
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MONTHLY EXPENSES
Promotional Expenses
Telephone charges
Over-head expense
Expenses
1000000
900000
800000
700000
600000 Fixed cost
Cost
Number of customers: 8
Fixed charges from each company – Rs. 4500
Variable charges-
We plan to collect Rs.2 per kilometre the delivery boys travel for that company.
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So from our survey: 35kms in weekdays, 50kms in week ends.
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Feb 89600 54200 24780
Mar 134400 81300 37170
Apr 179200 108400 49560
May 224000 135500 61950
Jun 268800 162600 74340
Jul 313600 189700 86730
Aug 358400 216800 99120
Sep 403200 243900 111510
Oct 448000 271000 123900
Nov 492800 298100 136290
Dec 537600 325200 148680
500000
400000
AMOUNT
Monthly Income
300000
Monthly Expense
200000 Monthly profit
100000
0
Nov
Jun
Jul
Jan
Aug
May
Oct
Mar
Apr
Dec
Feb
Sep
MONTHS
The breakeven point is found by dividing the initial investments by the net profit after
tax per month.
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In a span of three years, we expect the following changes
PARTICULARS COST
Two more Tata Ace mini vans 560000
Four Bajaj CT100 120000
One more computer 25000
Chairs 2000
A landline connection 3000
TOTAL 710000
MONTHLY EXPENSES:
Two more office staffs are appointed. So the expenses become Rs.9000
Six more delivery boys are appointed and the expenses are
Fixed – 10 * 2000 = 20000
Variable – (35 * 5 + 50 * 2)*10*1.50*4 = 16500
Total cost = 20000+ 16500 = 36500
Total monthly expenses = Rs. 55400
MONTHLY INCOME:
Number of customers: 15
Fixed charges from each company – Rs. 5000
Variable charges-
We plan to collect Rs.2 per kilometre the delivery boys travel for that company.
So from our survey: 35kms in weekdays, 50kms in week ends.
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= 5000 * 15 + 22000
= Rs. 97000
BREAKEVEN ANALYSIS:
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= 730250 + 710000 – 446040
= Rs. 994210.
The breakeven point is found by dividing the initial investments by the net profit after
tax per month.
5. CONTROLS:
Milestones
Start
Advertising End Date Budget Manager Department
Date
Advertisement campaign #1 6/2/2008 6/6/2008 Rs.20,000 .Deepa Marketing
1/9/
Advertisement campaign #2 1/11/2009 Rs.25,000 Deepa Marketing
2008
Others( provisions for other
Rs.5,000
ad expenses)
Total Advertising Budget 50,000
Start
End Date Manager Department
Date
Marketing plan completion 1/1/2003 2/1/2003 Deepa Marketing
Other
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1/2/2008 1/2/2009 Rs.79200 Balaji General
Start
Other End Date Budget Balaji Department
Date
Other 0
Total Other Budget 12000
Totals 5,00,000
Marketing Organization
Our marketing manager Deepa Bharati will be responsible for all our marketing
activities.
The best delivery agency has clearly defined its strategies on operating or
commencement as stated above. Very clear estimates of our most important activities
such as advertising, transportation for our promotion i.e. the fund allocation we have
intended for the same have been stated in clear terms.
By no measure will the ‘best delivery agency’ surpass these estimates as
they also include provisions for special expenses, in case of unforeseen demand
trends. We have arrived at these estimates, not without the use of these forecasting
techniques, namely-trend analysis & statistical data analysis, with the aid of our
experts Cyriac & Ranjani (internal management).
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any ‘Premium pricing’ & will continue to be a reasonably priced delivery agency.
Owing to which our focus is ‘premium quality’ & not ‘premium pricing’.
Task allocation & designation have already been carried out, bearing in mind
all our objectives & plans. Advertising modes are distribution of hand bills, radio
shows & railway reservation forms etc...
The pre created data tables & analysis –both quantitative & qualitative are the ones
serving as our guiding milestones, as they are backed by our knowledgeable, keen
management.
Reserves of all our surpluses and profits will be maintained, which we will use
for expansion & improvement, not before a stipulated time period of one & a half
years of successful operations, before such developmental activities. Beyond this
period, we hope to expand our activities to Goa, Bangalore & Cochin.(key reasons for
these choices to name a few are selective human resource requirements & time bound
life-styles.)
6. Additional Considerations
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Apart from the assumptions made previously, there are also some considerations to be
taken care of. These include some internal as well as external factor which has
potential to affect the business.
Internal factors:
• If the delivery boys meet any accident then the compensation and the loss due
to damage of vehicle (depending upon the extent of damage) has to be
considered because this has potential to affect the rapport as well as the
financial activity of the agency.
• Misconduct and deviant work place behaviour by the delivery boys is also the
major area of considerations.
External factors:
• Fuel price hike is the major area of concern which is external to the agency.
• Change in government rules and regulations like change in policy regarding
issue of driving license.
• Chance of economic regression in future
• Entry of other market players
• Increase in price of the vehicles due to tax increase by government.
There are also some other considerations also to take care of if there is problem in
assumptions based on the market research. The major concern is the choice of our
customer to have shared responsibility delivery boys and not the dedicated ones. In
that case there is chance of decrease in our potential market. Also, if because of any
internal issues, our customers decide to give up the idea of providing delivery
services or limit the area in which they will provide the service will affect delivery
agencies business.
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7. Bibliography
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APPENDIX
Q1. How many customers avail your home delivery service per day?
o 5-10
o 10-20
o 20-50
o above 50
o Yes
o No
Q3. If ‘NO’ for Q2, please mention how many delivery boys have you employed?
_________________________________________________________________
Q4. Do you feel that you need same number of delivery boys during weekdays and
during weekends?
o Yes
o No
____________________________________________________________________
Q6. Do you give bonus during the festival season to your delivery boys?
o Yes
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o No
If yes, please mention the percentage ___________________________
Q7. Approximately how many kilometres the delivery boys travel per day?
________________________________________________________
o Yes
o No
If yes, please mention the amount ______________________________
Q9. If yes for Q8, Is the commission you are paying depends upon the kilometres
travelled per day?
o Yes
o No
If yes, Please mention the ranges____________________________________
_____________________________________________________________________
_____________________________________________________________________
Q10. What are the qualities do you think a delivery boy should posses?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Q12. Do you think you can concentrate more on your business if you outsource all
these home delivery services?
o Yes
o No
Q13. If there is an agency which will provide you the delivery boys will you use it?
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Yes, because __________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
QUESTIONNAIRE (Restaurants)
Q1. How many customers avail your home delivery service per day?
o Below 5
o 5-10
o 10-25
o Above 25
o Yes
o No
Q3. If ‘NO’ for Q2, please mention how many delivery boys have you employed?
_________________________________________________________________
Q4. Do you feel that you need same number of delivery boys during weekdays and
during weekends?
o Yes
o No
____________________________________________________________________
Q6. Do you give bonus during the festival season to your delivery boys?
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o Yes
o No
If yes, please mention the percentage ___________________________
Q7. Approximately how many kilometres the delivery boys travel per day?
________________________________________________________
o Yes
o No
If yes, please mention the amount ______________________________
Q9. If yes for Q8, Is the commission you are paying depends upon the kilometres
travelled per day?
o Yes
o No
If yes, Please mention the ranges____________________________________
_____________________________________________________________________
_____________________________________________________________________
Q10. What are the qualities do you think a delivery boy should posses?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Q12. Do you think you can concentrate more on your business if you outsource all
these home delivery services?
o Yes
o No
Q13. If there is an agency which will provide you the delivery boys will you use it?
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Yes, because __________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
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