B – Plan Competition “Innovation for India” 2014

NAME OF THE VENTURE: “BITE ON” Chocolate

PARTICIPANTS

NAMES: (First

Name)

Last Name CONTACT NUMBER E-MAIL ID

A)Monika Sinha 9920771403 Monika.s@itm.edu

B)Sangita Dhua 9869363635

C)Pooja Kini 9920747037

D)Shivani Nain 9892563568

NAME OF THE INSTITUTE: ITM,Kharghar

FULL ADDRESS OF THE

INSTITUTE:

ITM Business School,

Sector 4, Kharghar, Navi Mumbai

Specialization:

Major: Human Resource Management

B-Plan Document FOR BITE ON-Chocolate

Executive Summary: Chocolate is an $83 billion a year business, making industry value larger than the GDP of more than 130 nations on earth. An average Britain, Swiss/German will each eat 11kg of chocolate a year.

In India, chocolate hasn’t been sweet of choice. Indians eat only 165gms of chocolate a year.

Consumers change their tastes and preferences according to the changing trends. The recent trend dictates a westernized and health conscious foodstuffs – so we are aiming to cater to them through or innovative chocolate.

Chocolate is often referred as the “guilty pleasure”, Bite On‘s main aim is to remove the guilt

and fill it with pleasure for our consumers. Our idea is to make a low fat low calorie sugar free dark chocolate bar that makes us different

from other brands as we are only targeting the sugar free fat free dark chocolate segment.

MEN MONEY MACHINERY MATERIALS MARKETS MINUTES

* Functional structure

* Departments like: R&D, Production,

Manufacturing, Promotion, Selling, Quality check,

Packing, Accountants, IT, Ops,

Customer support, Factory setup, cold storage, H.R

*In order to estimate

a company, people in company have to be loyal and with the

company's mission statement- hence we

do not encourage people in contract.

Government funds

since Machinery+

Land= >1cr

2013 High Quality snack

chocolate machine

production Winnowing

Machine- shells removal

(20,000) KQCH-200 Prof choc

Production Mach- (3L)

Diet Sugar, Diet cocoa

butter, cocoa solids, milk

solids, Honey, Roasted bean

B to C

B to Govt

500units – 70,000 units

per day

The Business/Product

Our business would be Business to Consumers and our company is a Pvt. Ltd. company

in the case of chocolate it is necessary to follow the laws of The Ministry of Food

Processing Industries (MOFPI) and also follow the standards of the FSS Act 2006 and the

Food Safety and Standard Regulation 2011 to ensure healthy, safe and nutritional

chocolate is provided to our consumers.

Our Company is a SSI; we will obtain our initial funding from the government. Later

after generating enough revenue so that we can become a middle scale industry we can

approach commercial banks for investments and loans to expand our business.

Chocolate is recession proof- “lipstick effect”. When in economic crisis, consumers

willing to buy less costly luxury goods - cosmetics, chocolate, even are cutting other

luxuries. Our product is a low fat low calorie sugar free dark chocolate bar.

MISSION STATEMENT OF BITEON

We aim to be innovative leaders in chocolate, creating satisfaction by providing the healthiest in diet, for

people of all ages. As a result, changing the face of a normal brown block to one calorie - less melting in

the mouth.

Bite on company is coming up with this innovative technology of having your partners face

moulded on chocolates on Valentine’s Day. We have even thought of doing attractive packaging according to the various festivals, like in rakshabandhan we have thought of giving rakhi along

with the pack of chocolates and giving a rose with a heart shaped box of chocolates on Valentine’s Day.

Industry Analysis: Firms must monitor six major forces in the broad environment: Demographic environment, Economic environment, Natural environment, Technological environment, Political environment and Socio-cultural environment. For BITE ON, we have described them separately. Their

interactions will lead to new opportunities and threats.

DEMOGRAPHIC ENVIRONMENT – Demographic developments often move at a fairly predictable pace. The main one that we had monitored was the population. Chocolate covers an Rs 3,200 crore category. It has a whole market share of this money. The population includes the

size and growth rate of population in cities, regions, and nations; age distribution and ethnic mix; educational level; household patterns; and regional characteristics and movements. We

concluded that People of all age consume chocolate. Researchers said that People of middle class and upper middle class tend to consume more chocolates in India. According to MGI’s 5 economic classes, our company focuses on all of them. Per capita consumption of chocolate is

140 gms/year. The increasing population has been a positive factor for our company.

ECONOMIC ENVIRONMENT - Economic conditions of India, which is FAST GROWING -decides the successful and failure of our companies profitability. It totally depends on the

economy of a country to make it a failure or a success. Depending on the economy, Consumer purchasing power and spending patterns would change. As it depends on current income, prices,

savings, debt, and credit availability. The increase in advertising and promotions cost will yield higher margin because of increased customers’ interest in buying chocolate. Customer will not buy until it is preceded with high promotion efforts.

NATURAL ENVIRONMENT - Environmental regulations hit certain industries hard.

Corporate environmentalism recognizes the need to integrate environmental issues into our company’s strategic plans. CSR has to identify that CHOCOLATE manufacturing process & operations have least impacts on the society and on overall environment. In case of BITE ON,

we have to analyze the climate factor of INDIA as the biggest threat. The packaging would be of a recyclable cardboard and biodegradable foil. Thus, our company would prove to be eco-

friendly.

CULTURAL ENVIRONMENT - Cultural environment of the country has significant impact on

the demand of the product and services. This is important because it can be viewed as an opportunity as well as a threat to our industry.

We manufacture our product bite on according to the taste and demand pattern of our nation. We have incorporated new innovative tastes in our product keeping in view the different cultures we have in our nation.

POLITICAL ENVIRONMENT - Political factors influence organizations in many ways. Political factors can create advantages and opportunities for organizations. Conversely they can place obligations and duties on organizations. Political factors include the following types of

instrument:

- Legislation such as the minimum wage or anti discrimination laws. - Voluntary codes and practices - Market regulations

- Trade agreements, tariffs or restrictions - Tax levies and tax breaks

- Type of government regime E.g. .communist, democratic, dictatorship

Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to

governments introducing legislation to regulate the activities covered by the codes and practices.

Competitive Analysis: ANALYZING COMPETITOR - To start with a competitive analysis, we need to gather all the

information about each competitor’s real and perceived strengths and weaknesses. BITE ON researched on them and came with the following classification:-

Good Reputation + Poor Product Availability ---> GALAXY

Good Reputation + Excellent Product Availability ---> CADBURY, NESTLE

Poor Reputation + Poor Product Availability ----> PRIYA GOLD We would strive to be well reputed as well as an excellently available brand..!

Market Analysis: DIFFERENTIATED MARKETING -Differentiated marketing is an expensive affair. It

involves different variety of products. There has been a drastic change in the cultural and

traditional values. We can see that in the case of a Rakshabandhan Thali, wherein earlier we used

to see this mithai in the thali, but nowadays we find sweets have been replaced with chocolates.

We are launching our product in the market at 3 different price levels, one being at Rs. 2, Rs. 5

and Rs. 15. The Rs. 2 chocolate is basically targeted to the rural areas, whereas the Rs. 5 mini bar

and the Rs. 15 big bar are mostly targeted towards the urban areas.

CONCENTRATED MARKETING - Concentrated market refers to niche marketing. Niche

marketing generally refers to small share of a larger market. We propose to target the

government market first since government is funding our small scale company, so it is natural

that they will purchase our products. We even aspire to get into the PDS i.e. public distribution

system. Just like these boxes of food are distributed to the needy people even containing the

Parle- G biscuits pack, we also aspire to be in their position one day. Since our chocolate is a

sugar free and calorie less one, it basically caters to all the health conscious people who want to

maintain their curves and in case of sugar free, we cater to all the diabetic people who have a

sweet tooth.

MICROMARKETING: LOCAL AND INDIVIDUAL - In case of micro marketing, we have

two types, one being local marketing and the other being individual marketing. In case of local

marketing, we propose to undertake attractive packaging according to the festivals. For example,

on Valentine’s Day we are coming up with this heart shaped box along with heart shaped snack

bars. We are not going to compromise on the quality of the product; we are going to make use of

excellent quality gold foil for our chocolates so that there are no cases of infestation through

worms and all. Company is coming up with this innovative technology of having your partners

face molded on chocolates on Valentine’s Day. We will even introduce various contests in the

market once we have an established stand in the market. For e.g., Priyagold snakker contest was

in the market some time back wherein their strategy was buy a priyagold snack bar and enter the

contest to win a hamper.

SEC GRID ANALYSIS - Our company target market starts with people with the start 3 assets

(as seen in Dig, 1) and thus our target market start with D2 (Dig 2). We are hoping that the rest

of the consumers (E1 to E3) would be target of PDS of government. So if our company gets into

the PDS we will also be able to target E1 to E3.

(Diagram 1)

(Diagrams 2)

Marketing Plan: Marketing is the act of designing a company’s offering and image to occupy a distinctive place in

the minds of the target market. Our goal has been to locate the brand in the minds of consumers to maximize the potential benefits to our firm. We have come with a brand positioning strategy to

stand different among all our competitors. BRAND POSITIONING STRATEGY- Our Company BITE ON will carve a profitable share through its focused positioning strategy in the chocolate market which has already been

dominated by competitors like Cadbury, Nestle, Mars, etc. These brands and sub brands provide a wide variety of chocolates, ranging from festive gifts to milk and mouth-watering chocolates,

targeting primarily the young consumers. Bite on, on the other hand will be identified for positioning gap for a chocolate which would be a snack and low calorie bar. DEVELOPING A POSITIONING STATEMENT - Brand statements are designed with

internal purposes in mind. A brand slogan is an external translation that attempts to creatively engage consumers.

“E-Z on pockets, E-Z on calories”. This brand statement clears the three key criteria:

Communicate

Simplify

Inspire

POSITIONING OUR BRAND -It would be a challenge because of low budget and limited

resources. With the help of govt. Subsidies, funds and branding it would be easy for us to brand our chocolate in all the segments effectively. We would start off with a low cost market research

for studying about the competitors. Then we would emphasize on our branding strategy including all technological innovations which provide distinctiveness to our product. With help of government, we would position our brand during food crisis, in railway food supply, with

rural mid day meals, etc. Providing a wide option for expansion and penetration. IMAGE DIFFRENTIATION - We have already entered the market with the image that we are

focusing on the dark chocolate sugar free and fat free segment. But in addition later in the future when revenue starts pouring in we are going to assign Rocky and Mayur as the brand ambassador of our firm from “highway on the plate” as they are real chocolate foodies.

SERVICE DIFFRENTIATION - As of now chocolate being a firm does not provide any service but during occasions and festive seasons online services will be activated and people can

order chocolates online and on ordering on bulk discounts will also be given. On occasions like Valentine’s Day people can send the pictures of their loved ones and chocolates will be moulded in the form of their face. On rakshabandhan, free rakhi will be given to the people who order

chocolates from us. On diwali, roman candles will be given as free gifts to the customers who order chocolates. Later form the revenue we collect we will conduct workshops for older people

and show them how chocolate is made. CHANNEL DISTRIBUTION -Our chocolates will be directly sent to the retailers and whole sellers. We will also keep a retailer connection program as to why should they buy our product.

And to promote our firm we will be putting stalls and vans outside colleges and malls so as give the customers a free testing and gain customer loyalty. We will also be using PDS where as

during mid days meals chocolates will be distributed in the rural areas.

Management Plan: We employee highly skilled labour and professionals because chocolate making is a very tedious and a very fragile task and every ingredient should be mixed with the right proportion hence

trained and skilled labour is needed. COMPANY- Our Company has 100 employees. The company has different functions and in

each function a head is there to coordinate among them and report to CEO. The company functions are-

CEO

Production

Manufacturing

Selling

Packaging

Operations & cold Storage

IT

Customer service

Accounts

Finance

purchases

SUPPLIERS - Sources of procurement are from these suppliers-

Aryan international pvt.ltd

Nuxzen Lab Pvt. Ltd. (Hyderabad)

Company has tie ups with these two companies for raw materials. These companies are

importers and manufacturing of cocoa in India. Company is purchasing cocoa beans, cocoa

butter, sugar and other low calorie content ingredients.

RESELLER- We have retailer and whole seller as our reseller. Our company is selling the

product directly to retailer and whole seller. The company has organized a retailer connectivity

program to promote the product to local retailer.

Financial Plan : We have decided to start up ourselves as a SSI (Small Scale

Industry). Therefore, our investment in fixed assets in plant & machinery, whether held on

ownership term or on lease or hire purchase, does not exceed Rs. 1Crore.

Entrepreneurs in small scale sector are normally not required to obtain a licence either from the Central Government or the State Government for setting up units in any part of the country. Registration of a small scale unit is also not compulsory. But, its registration with the State

Directorate or Commissioner of Industries or DIC's makes the unit eligible for availing different types of Government assistance like financial assistance from the Department of Industries,

medium and long term loans from State Financial Corporations and other commercial banks, machinery on hire-purchase basis from the National Small Industries Corporation, etc.

Registration is also an essential requirement for getting benefits of special schemes for promotion of SSI viz. Credit guarantee Scheme, Capital subsidy, reduced custom duty on selected items, ISO-9000 Certification reimbursement & several other benefits provided by the

State Government.

The most important promotional policy of the Government for the SSI's is fiscal incentives in the form of tax concessions and exemptions of direct or indirect taxes liable on production or profits.

Initial 3 years we plan, to expand and grow and market ourselves. We plan to take all our machinery required for making chocolate on rent. We will invest maximum money in making

good high quality and delicious chocolate. We will also be also be buying cocoa beans from Andheri Manufacturing Unit called J.M. Industries, instead of importing them from Ghana so as to purchase in bulk and thereby achieving cost effectiveness. Later, we plan to become a

medium scale industry.

Critical Risks: We have heard so many cases wherein people have found worms and insects along with hair

inside the Cadbury. Therefore we are coming up with clean and safe warehouses, with proper lighting conditions, which will keep our product away from all kinds of infestation from worms

and insects. We also propose to give proper head gears and hand gloves to all our workers so that we maintain excellent hygienic conditions in our factory. We have even brought up this technology wherein we have introduced healthy snack bar which has dark chocolate in it, which

is actually very beneficial for a person’s health because it reduces stress levels, reduces cholesterol level and lessens the blockage in the arteries. We will be using the best kind of

packaging available which is strong and resistant to all kinds of infestation.