Generation Of Youth Leadership In India Marketing Essay

3238 words (13 pages) Essay

1st Jan 1970 Marketing Reference this

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Youth is defined by the Oxford dictionary as “the period between childhood and adult age (in singular), the qualities of vigour, freshness, or immaturity as associated with being young (mass noun).According to Stephen P. Robbin , author Organizational Behaviour Leadership is defined as ” the ability to influence a group towards the achievement of a vision or set of goals.”When above mentioned two words are combined then it definitely means that ” young people empowered to act and inspire others to act in order to make a positive change.”.

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In Indian context, youth have always been setting examples for generations to come. The different time has generated leader of its time .Bhagat Singh sacrificed his life at the age of 23 , Sachin Tendulkar started playing international test cricket at the age of 16 .But these are just a handful of names. To make our country a superpower nation as per vision by Dr. Abdul Kalam by 2020 much more is requisite. There are many challenges which are lying ahead of our country. The lack of basic infrastructure in rural areas, state of education system, lack of good leaders on national front, lack of trust and faith in system, scams and frauds. Everyday newspapers are filled with new revelation of scams and tainted names. The current leadership in political sphere is not at all the best example of leadership by wasting the precious national resources in CWG, 2G, Adarsh Society scams. During the beginning of second term of UPA government, a lot of young ministers and MPs were sworn in. But who hears or knows anybody apart from Mr. Rahul Gandhi. Whom to trust and where to put faith is a matter of concern for today`s youth. Business, politics, sports, education, research all fields are infested with the termite of corruption. The facebook.com and Mc Donald`s burger has changed the Indian lifestyle. Youth have become more prone to obesity, heart related diseases and lifestyle disorder. There is no time amidst all the rat race to visualize the big picture and to think about nation. Youth leadership is celebrated across all sectors. It is a paradox. Current lot wants new ideas and innovation but doesn’t want the change to take place now. The resistance to change has to be overcome. Else there are many daunting challenges.

But with the changing economic order of the world, India is getting back to regaining its lost glory. The majority of our population lies between the age group 16 to 30 years of age. This generation is fuelling the economic and social growth of the country. Companies like Infosys and TCS have ventured into foreign shores with the intellectual might of young Indians. The silicon valley in USA has 30% of the firms owned or run by Indians or people of Indian origin. All this, has brought new confidence to the nation. There is confidence, determination and ambition in the eyes of current lot of youngsters. Thanks to technology distance, feasibility, impractical have just become words. Our era has the cliché that -geography has become history. Inclusion of young executives in the shadow board of Mahindra & Mahindra is a positive sign for the Indian corporate world. There earlier division on the basis of caste and religion is not applicable today. Youth is growth oriented and is not deterred by petty issues. Young Indians like D Udaya Kumar , an ex-IITian ,has given the now famous Rupee symbol or Krushnna Patil at the age of 19 year had conquered the Mount Everest or Abhinav Bindra bringing gold medal for the country. These torch bearers are taking India to new dawn .Our country also needs an Indian Mark Zuckerberg , the youngest billionaire in the world, to set new parameters of success for the young generation. Mr Narayan Murthy and his team also founded Infosys as a start-up almost 25 years ago. Similarly, Mr Sunil Bharti Mittal entered in the telecom segment in the year 1995. These are the names which have become milestones of today. National development can only be fuelled by economic development and that too by an Indian venture. MNC’s entering into the Indian market invest in India but take away the major share of the revenue earned here. Thus it does not substantially creates overall independent economic growth for the country.

So the key to success for today`s youth in India is lying in entrepreneurship. According to Wikipedia “It is the act of being an entrepreneur, which can be defined as “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”.The spirit of innovation, enterprise and overcoming challenges is not new for India because we have been doing it for ages. From a ‘developing nation’ just two decades back, India, today, has emerged as one of the decisive nations shaping the contours of the world economy. Low cost air -fare has given rise to a new kind of socialism to the large sections of middle class where air travel has become a norm. There is a lot to celebrate for young Indians but there is a lot of quiet contemplation also that has to be done as India deserves better than this and India has the capacity and capability to do better than this.

Youth Leadership Model

Identification of Challenges & Problems in the working plan.

Youth Expertise (Domain Knowledge)

Problem identification pertaining to locality

Selection of best alternative based on pre-decided criteria

Drafting of working plan

Strengths & Weaknesses of the participants

Selection of mentor to seek guidance & expertise based on domain.

Execution of working plan in pilot run

Re-engineering of plan as per required changes.

Re-Implementation at the pilot run .

If not as per desired results

Scaling up of the plan by expansion & addition of new members to the team.

Make model self sustainable

Hierarchy

Succession Planning

Financial Viability

Vision & Mission

Economic growth of the country

Employment generation

Social development

Youth empowerment

The model above is applicable, irrespective of any field and depends upon the expertise of the youth. Problems are ubiquitous in our society. But most essential is to identify it and think of a solution. With the advancement of technology, knowledge and technical expertise has become very handy. The model suggests to take small workable problems pertaining to the society and local vicinity. For every problem there lies various alternatives. The most effective solution in terms of cost, social value, environment etc to be selected. The criteria for the selection of alternatives is based on pre decided criteria as per the participant`s competency. This would lead to drafting of a working plan. An expert in the desired field with years of experience must be consulted at every subsequent stages. Then the execution of the plan must be done at small level. This is called pilot run. The problems and challenges faced in previous stage would lead re-engineering of the plan with required changes. The working plan would again be implemented at the smaller scale. If desired results come then plan must be scaled up. Else further changes must be incorporated to make the plan effective. To execute the plan, more people with similar orientation must be taken on board. Then the model created must be made self sustainable by creating hierarchy, analysing vision and mission, checking financial viability and required succession planning of key positions. Hence the model would lead to the overall economical and social growth of the society. Employment would be generated and hence the objective of generation of youth leadership would be achieved. We applied above discussed model to a new business venture described below.

To lead in new decade in global platform, the Indian lifestyle must be adhered by Indians. Our country has a vast lineage of traditional food and snacks. The various ingredients used are best suited for our taste buds. Moreover Indian snacks like chaat and paanipuri are relatively healthy then the western fastfood. Moreover there is a hugh gap between the quality of chaats available and desired. So we thought of organizing the chaat waalas in Delhi/NCR.

The Chaat market in India is predominately unorganized. Pan India in all the cities, there are the numerous roadside Chaat vendors and handful of Chaat shops. There are questions of hygiene, quality, and health in the minds of the consumers but Chaat still sells on the roadside. In Delhi/NCR alone the market size for Chaat is expected to be around Rs 185 cr. The Paanipuri & more… caters to this market.

The Paanipuri & more… will be first chain of branded Chaat outlets on wheels (push carts) whose emphasis will be on hygienic, delicious and ethnic Chaat on street. The outlets on wheels will save on the high real estate and rental cost, help to have large number of selling points thus easy accessibility by larger population even in low investment, offer high visibility and easy in time home delivery of the Chaat products through it’s strategically located push carts scattered across the high density commercial and residential areas.

The Paanipuri & more… does not introduce any new product/service or creating demand for something completely new. It has just identified a Void in the expectations of customers and the product/service rendered, which it intend to fill. The strength of The Paanipuri & more… lies in its Domain based expertise, its execution ability and its management and mentors.

Business concept

The Paanipuri & more… is a new ethnic chain of branded Chaat outlets on wheels, located in the commercial and residential area in Delhi/NCR. Initially, we plan to start with 50 push carts which would be strategically located all over the Delhi/NCR in busy areas, high streets and residential areas like Connaught Place, GK, Defense colony, DLF Phase3 etc at places having high visibility.

The branded push cart having a modern look would be manned by 2 persons in ethnic attire like turban, serving delicious Chaat hygienically wearing plastic gloves. The Chaat Wala will also house a captive BPO to take home delivery orders which will be executed by the nearest push cart in the area. To offer the unique taste and have quality control at all the Chaat outlet the Chaat Products will be made at a central location, from where it will be delivered to the push carts through delivery vans in 2-3 batch sizes a day(according to demand) to keep the perishable goods fresh.

The Paanipuri & more… would position its brand as hygienic, ethnic and easily accessible.

Customer Analysis

The middle and high income group who wishes to have Chaat but does not want to compromise on hygiene and quality are the target customers. They will be served the branded, hygienic and delicious Chaat at very convenient location in the neighborhood at push carts and home delivery at the doorstep. They are located in the commercial places and residential areas which consist of the office goers, housewives, the elderly people and children. Also the ethnic hygienic and delicious Chaat served at a convenient location near your home will stimulate its consumption throughout the year.

The ambient advertisement would be done by giving leaflets with newspapers, discounted coupons would be distributed & group discount would be offered during lunch time near offices. Also the prices of The Paanipuri & more… will be competitive enough to sustain & capture large market share. It would be lesser than the branded players like Haldiram by 25-30% and just 10-15 % more than unbranded local Chaat thela/push carts.

The Paanipuri & more… wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. High visibility and competitive products and service are critical to capture this segment of the market.

Market Analysis

If reports are to be believed in Delhi/NCR alone the market size for Chaat is expected to be around Rs 185 cr and will steadily grow at the rate of 25-30% per year. The Paanipuri & more… as of now caters to this market. The Paanipuri & more… competitor consists of the roadside unbranded thelas/carts and a few branded Chaat outlets.

Competition in the local area from unbranded Chaat is somewhat sparse as they do not

provide the level of product quality and customer service as The Paanipuri & more… does. Local customers of middle- and upper-income are looking for a high quality product which is delicious and served in a hygienic way. They desire a unique, ethnic hygienic experience.Other branded competitors like Haldiram’s, bikano and BTW, sell these items primarily through company-operated retail stores which are far from residential areas and very few

in number (only 4 to 5). Also their products are priced higher than The Paanipuri & more… which further limits the competition.

The Paanipuri & more… would cater to the needs of middle and upper income group who do not wish to travel to the other branded outlets but still wants to have delicious branded hygienic Chat and related products in their neighborhood. Thus even with the limited investment (large number of outlets and no real estate cost) The Paanipuri & more… would acquire a substantial market share.

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The Paanipuri & more… would gain first mover advantage and would become an established player because of large number of outlets and large market share which would create a barrier to entry. Also the exit barrier is low because of minimum or low physical assets and very less investment.

Operating costs involved

Operating cost will include cost of preparing food, delivery cost, staff salary, license and other fees, and other operating expenses. The projected figures for next few years are as under.

Financial summary and operating statistics

Year 1

Year 2

Year 3

Year 4

Year 5

Employees

120

176

266

425

563

Financial Statistics

Revenue

32076000

48114000

72171000

115473600

115473600

Expenses

25353900

38030850

57046275

91274040

177879240

Net Income

6722100

10083150

15124725

24199560

92655090

Depriciation, int and tax

2204164

3306246

4959369

7934990.4

26084660

Net Profit

4517936

6776904

10165356

16264570

22215812

Because of the high investment needs in year 1 and year 2, the Company achieves low profitability until year 2. Our initial investment is 27, 83,000 which includes cost of setting infrastructure and initial promotion cost and thus by estimating revenues and discounting it @ 10 % we calculate our payback in 1 year 8 month (20 months). While Return on investment for first year is 162.5%.

Financial plan

Investment required and source of finance

Project will required an initial cost of Rs. 28,83,000 which includes cost of setting stalls, security deposits, furniture and sitting cost, cost of equipments and cost of initial advertisement. The funds will be arranged from the following sources:

By Own Rs 5, 00,000

From other sources @ 10% Rs5, 00,000

From Bank @ 14% Rs.18, 83,000

Team Description

The Paanipuri & more… management start up consists of impressive young team who are professionally trained executives in the field of Marketing, Finance and Operations. It consists of Divyanshu Mishra who is currently pursuing MBA from Amity Business School, Noida and B.F. Tech from National Institute of Fashion Technology, Kolkata. He will provide guidance in the area of operations and marketing. He has worked for 22 months in an apparel export unit. He has worked at different capacities from pre – production planning till the final export of the goods.

Kartik Bansal, pursuing MBA from Amity Business School, Noida and B. Tech (Textile Technology) from The Technological Institute of Textile & Sciences, Bhiwani, Haryana. He will provide guidance in the area of operations and finance. He has an experience of 12 months with an export oriented unit looking after Operations and Marketing functions.

Kanika Sahni pursuing MBA will have the responsibility of HR and administration related issues. Akash Shrivastava pursuing MBA (Finance) having an experience of Project appraisal and handling accounts comes from a family which is into Chaat Business from generations will look for finances & procurement.

The Paanipuri & more… management team is fortunate enough to get mentoring and guidance in all the areas by Prof. B K Srivastava who was the CEO of Kelvinator and Global Vice President- Operations Whirlpool.

Challenges

Raw material required for preparation are perishable so high degree of care must be taken to maintain the quality of food.

The inventory can’t be kept very high in the beginning because of uncertain customer demand.

Orientation & training of the hired labour as per set / desired company’s objectives.

Marketing to establish as a brand to get a loyal customer base.

Matching actual revenues with the planned (as per the financial plan) at times of seasonal / fluctuating demand.

Competing with the local famous chaat shops and carving a niche with our own brand.

Future prospective

In coming years, more consolidation is expected from the above discussed sector by successful implementation of the business plan, a national food chain can be established offering quality snacks. Further improvements can be worked upon like offering newspapers to the clientele such that the time spent by the customer around the cart is more which will automatically lead to more revenue generation. Secondly, we can offer customised food items in the menu to cater to the regional preference of the area. Thirdly, we can introduce products appealing to the kids which will act as a sales & promotion tool.

The Indian market has huge potential and if proper marketing research is done with careful implementation at each step then the unorganised and untapped potential can be benefitted upon. By aligning the roadside snacks business direct revenue can be attributed to the government of India in the form of taxes. Because like an invisible economy is running parallel to the organised market having much more magnitude. In this way we are contributing to the nation building and fulfilling the role and duties of the responsible Indian citizen.

Youth is defined by the Oxford dictionary as “the period between childhood and adult age (in singular), the qualities of vigour, freshness, or immaturity as associated with being young (mass noun).According to Stephen P. Robbin , author Organizational Behaviour Leadership is defined as ” the ability to influence a group towards the achievement of a vision or set of goals.”When above mentioned two words are combined then it definitely means that ” young people empowered to act and inspire others to act in order to make a positive change.”.

In Indian context, youth have always been setting examples for generations to come. The different time has generated leader of its time .Bhagat Singh sacrificed his life at the age of 23 , Sachin Tendulkar started playing international test cricket at the age of 16 .But these are just a handful of names. To make our country a superpower nation as per vision by Dr. Abdul Kalam by 2020 much more is requisite. There are many challenges which are lying ahead of our country. The lack of basic infrastructure in rural areas, state of education system, lack of good leaders on national front, lack of trust and faith in system, scams and frauds. Everyday newspapers are filled with new revelation of scams and tainted names. The current leadership in political sphere is not at all the best example of leadership by wasting the precious national resources in CWG, 2G, Adarsh Society scams. During the beginning of second term of UPA government, a lot of young ministers and MPs were sworn in. But who hears or knows anybody apart from Mr. Rahul Gandhi. Whom to trust and where to put faith is a matter of concern for today`s youth. Business, politics, sports, education, research all fields are infested with the termite of corruption. The facebook.com and Mc Donald`s burger has changed the Indian lifestyle. Youth have become more prone to obesity, heart related diseases and lifestyle disorder. There is no time amidst all the rat race to visualize the big picture and to think about nation. Youth leadership is celebrated across all sectors. It is a paradox. Current lot wants new ideas and innovation but doesn’t want the change to take place now. The resistance to change has to be overcome. Else there are many daunting challenges.

But with the changing economic order of the world, India is getting back to regaining its lost glory. The majority of our population lies between the age group 16 to 30 years of age. This generation is fuelling the economic and social growth of the country. Companies like Infosys and TCS have ventured into foreign shores with the intellectual might of young Indians. The silicon valley in USA has 30% of the firms owned or run by Indians or people of Indian origin. All this, has brought new confidence to the nation. There is confidence, determination and ambition in the eyes of current lot of youngsters. Thanks to technology distance, feasibility, impractical have just become words. Our era has the cliché that -geography has become history. Inclusion of young executives in the shadow board of Mahindra & Mahindra is a positive sign for the Indian corporate world. There earlier division on the basis of caste and religion is not applicable today. Youth is growth oriented and is not deterred by petty issues. Young Indians like D Udaya Kumar , an ex-IITian ,has given the now famous Rupee symbol or Krushnna Patil at the age of 19 year had conquered the Mount Everest or Abhinav Bindra bringing gold medal for the country. These torch bearers are taking India to new dawn .Our country also needs an Indian Mark Zuckerberg , the youngest billionaire in the world, to set new parameters of success for the young generation. Mr Narayan Murthy and his team also founded Infosys as a start-up almost 25 years ago. Similarly, Mr Sunil Bharti Mittal entered in the telecom segment in the year 1995. These are the names which have become milestones of today. National development can only be fuelled by economic development and that too by an Indian venture. MNC’s entering into the Indian market invest in India but take away the major share of the revenue earned here. Thus it does not substantially creates overall independent economic growth for the country.

So the key to success for today`s youth in India is lying in entrepreneurship. According to Wikipedia “It is the act of being an entrepreneur, which can be defined as “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”.The spirit of innovation, enterprise and overcoming challenges is not new for India because we have been doing it for ages. From a ‘developing nation’ just two decades back, India, today, has emerged as one of the decisive nations shaping the contours of the world economy. Low cost air -fare has given rise to a new kind of socialism to the large sections of middle class where air travel has become a norm. There is a lot to celebrate for young Indians but there is a lot of quiet contemplation also that has to be done as India deserves better than this and India has the capacity and capability to do better than this.

Youth Leadership Model

Identification of Challenges & Problems in the working plan.

Youth Expertise (Domain Knowledge)

Problem identification pertaining to locality

Selection of best alternative based on pre-decided criteria

Drafting of working plan

Strengths & Weaknesses of the participants

Selection of mentor to seek guidance & expertise based on domain.

Execution of working plan in pilot run

Re-engineering of plan as per required changes.

Re-Implementation at the pilot run .

If not as per desired results

Scaling up of the plan by expansion & addition of new members to the team.

Make model self sustainable

Hierarchy

Succession Planning

Financial Viability

Vision & Mission

Economic growth of the country

Employment generation

Social development

Youth empowerment

The model above is applicable, irrespective of any field and depends upon the expertise of the youth. Problems are ubiquitous in our society. But most essential is to identify it and think of a solution. With the advancement of technology, knowledge and technical expertise has become very handy. The model suggests to take small workable problems pertaining to the society and local vicinity. For every problem there lies various alternatives. The most effective solution in terms of cost, social value, environment etc to be selected. The criteria for the selection of alternatives is based on pre decided criteria as per the participant`s competency. This would lead to drafting of a working plan. An expert in the desired field with years of experience must be consulted at every subsequent stages. Then the execution of the plan must be done at small level. This is called pilot run. The problems and challenges faced in previous stage would lead re-engineering of the plan with required changes. The working plan would again be implemented at the smaller scale. If desired results come then plan must be scaled up. Else further changes must be incorporated to make the plan effective. To execute the plan, more people with similar orientation must be taken on board. Then the model created must be made self sustainable by creating hierarchy, analysing vision and mission, checking financial viability and required succession planning of key positions. Hence the model would lead to the overall economical and social growth of the society. Employment would be generated and hence the objective of generation of youth leadership would be achieved. We applied above discussed model to a new business venture described below.

To lead in new decade in global platform, the Indian lifestyle must be adhered by Indians. Our country has a vast lineage of traditional food and snacks. The various ingredients used are best suited for our taste buds. Moreover Indian snacks like chaat and paanipuri are relatively healthy then the western fastfood. Moreover there is a hugh gap between the quality of chaats available and desired. So we thought of organizing the chaat waalas in Delhi/NCR.

The Chaat market in India is predominately unorganized. Pan India in all the cities, there are the numerous roadside Chaat vendors and handful of Chaat shops. There are questions of hygiene, quality, and health in the minds of the consumers but Chaat still sells on the roadside. In Delhi/NCR alone the market size for Chaat is expected to be around Rs 185 cr. The Paanipuri & more… caters to this market.

The Paanipuri & more… will be first chain of branded Chaat outlets on wheels (push carts) whose emphasis will be on hygienic, delicious and ethnic Chaat on street. The outlets on wheels will save on the high real estate and rental cost, help to have large number of selling points thus easy accessibility by larger population even in low investment, offer high visibility and easy in time home delivery of the Chaat products through it’s strategically located push carts scattered across the high density commercial and residential areas.

The Paanipuri & more… does not introduce any new product/service or creating demand for something completely new. It has just identified a Void in the expectations of customers and the product/service rendered, which it intend to fill. The strength of The Paanipuri & more… lies in its Domain based expertise, its execution ability and its management and mentors.

Business concept

The Paanipuri & more… is a new ethnic chain of branded Chaat outlets on wheels, located in the commercial and residential area in Delhi/NCR. Initially, we plan to start with 50 push carts which would be strategically located all over the Delhi/NCR in busy areas, high streets and residential areas like Connaught Place, GK, Defense colony, DLF Phase3 etc at places having high visibility.

The branded push cart having a modern look would be manned by 2 persons in ethnic attire like turban, serving delicious Chaat hygienically wearing plastic gloves. The Chaat Wala will also house a captive BPO to take home delivery orders which will be executed by the nearest push cart in the area. To offer the unique taste and have quality control at all the Chaat outlet the Chaat Products will be made at a central location, from where it will be delivered to the push carts through delivery vans in 2-3 batch sizes a day(according to demand) to keep the perishable goods fresh.

The Paanipuri & more… would position its brand as hygienic, ethnic and easily accessible.

Customer Analysis

The middle and high income group who wishes to have Chaat but does not want to compromise on hygiene and quality are the target customers. They will be served the branded, hygienic and delicious Chaat at very convenient location in the neighborhood at push carts and home delivery at the doorstep. They are located in the commercial places and residential areas which consist of the office goers, housewives, the elderly people and children. Also the ethnic hygienic and delicious Chaat served at a convenient location near your home will stimulate its consumption throughout the year.

The ambient advertisement would be done by giving leaflets with newspapers, discounted coupons would be distributed & group discount would be offered during lunch time near offices. Also the prices of The Paanipuri & more… will be competitive enough to sustain & capture large market share. It would be lesser than the branded players like Haldiram by 25-30% and just 10-15 % more than unbranded local Chaat thela/push carts.

The Paanipuri & more… wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. High visibility and competitive products and service are critical to capture this segment of the market.

Market Analysis

If reports are to be believed in Delhi/NCR alone the market size for Chaat is expected to be around Rs 185 cr and will steadily grow at the rate of 25-30% per year. The Paanipuri & more… as of now caters to this market. The Paanipuri & more… competitor consists of the roadside unbranded thelas/carts and a few branded Chaat outlets.

Competition in the local area from unbranded Chaat is somewhat sparse as they do not

provide the level of product quality and customer service as The Paanipuri & more… does. Local customers of middle- and upper-income are looking for a high quality product which is delicious and served in a hygienic way. They desire a unique, ethnic hygienic experience.Other branded competitors like Haldiram’s, bikano and BTW, sell these items primarily through company-operated retail stores which are far from residential areas and very few

in number (only 4 to 5). Also their products are priced higher than The Paanipuri & more… which further limits the competition.

The Paanipuri & more… would cater to the needs of middle and upper income group who do not wish to travel to the other branded outlets but still wants to have delicious branded hygienic Chat and related products in their neighborhood. Thus even with the limited investment (large number of outlets and no real estate cost) The Paanipuri & more… would acquire a substantial market share.

The Paanipuri & more… would gain first mover advantage and would become an established player because of large number of outlets and large market share which would create a barrier to entry. Also the exit barrier is low because of minimum or low physical assets and very less investment.

Operating costs involved

Operating cost will include cost of preparing food, delivery cost, staff salary, license and other fees, and other operating expenses. The projected figures for next few years are as under.

Financial summary and operating statistics

Year 1

Year 2

Year 3

Year 4

Year 5

Employees

120

176

266

425

563

Financial Statistics

Revenue

32076000

48114000

72171000

115473600

115473600

Expenses

25353900

38030850

57046275

91274040

177879240

Net Income

6722100

10083150

15124725

24199560

92655090

Depriciation, int and tax

2204164

3306246

4959369

7934990.4

26084660

Net Profit

4517936

6776904

10165356

16264570

22215812

Because of the high investment needs in year 1 and year 2, the Company achieves low profitability until year 2. Our initial investment is 27, 83,000 which includes cost of setting infrastructure and initial promotion cost and thus by estimating revenues and discounting it @ 10 % we calculate our payback in 1 year 8 month (20 months). While Return on investment for first year is 162.5%.

Financial plan

Investment required and source of finance

Project will required an initial cost of Rs. 28,83,000 which includes cost of setting stalls, security deposits, furniture and sitting cost, cost of equipments and cost of initial advertisement. The funds will be arranged from the following sources:

By Own Rs 5, 00,000

From other sources @ 10% Rs5, 00,000

From Bank @ 14% Rs.18, 83,000

Team Description

The Paanipuri & more… management start up consists of impressive young team who are professionally trained executives in the field of Marketing, Finance and Operations. It consists of Divyanshu Mishra who is currently pursuing MBA from Amity Business School, Noida and B.F. Tech from National Institute of Fashion Technology, Kolkata. He will provide guidance in the area of operations and marketing. He has worked for 22 months in an apparel export unit. He has worked at different capacities from pre – production planning till the final export of the goods.

Kartik Bansal, pursuing MBA from Amity Business School, Noida and B. Tech (Textile Technology) from The Technological Institute of Textile & Sciences, Bhiwani, Haryana. He will provide guidance in the area of operations and finance. He has an experience of 12 months with an export oriented unit looking after Operations and Marketing functions.

Kanika Sahni pursuing MBA will have the responsibility of HR and administration related issues. Akash Shrivastava pursuing MBA (Finance) having an experience of Project appraisal and handling accounts comes from a family which is into Chaat Business from generations will look for finances & procurement.

The Paanipuri & more… management team is fortunate enough to get mentoring and guidance in all the areas by Prof. B K Srivastava who was the CEO of Kelvinator and Global Vice President- Operations Whirlpool.

Challenges

Raw material required for preparation are perishable so high degree of care must be taken to maintain the quality of food.

The inventory can’t be kept very high in the beginning because of uncertain customer demand.

Orientation & training of the hired labour as per set / desired company’s objectives.

Marketing to establish as a brand to get a loyal customer base.

Matching actual revenues with the planned (as per the financial plan) at times of seasonal / fluctuating demand.

Competing with the local famous chaat shops and carving a niche with our own brand.

Future prospective

In coming years, more consolidation is expected from the above discussed sector by successful implementation of the business plan, a national food chain can be established offering quality snacks. Further improvements can be worked upon like offering newspapers to the clientele such that the time spent by the customer around the cart is more which will automatically lead to more revenue generation. Secondly, we can offer customised food items in the menu to cater to the regional preference of the area. Thirdly, we can introduce products appealing to the kids which will act as a sales & promotion tool.

The Indian market has huge potential and if proper marketing research is done with careful implementation at each step then the unorganised and untapped potential can be benefitted upon. By aligning the roadside snacks business direct revenue can be attributed to the government of India in the form of taxes. Because like an invisible economy is running parallel to the organised market having much more magnitude. In this way we are contributing to the nation building and fulfilling the role and duties of the responsible Indian citizen.

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