Executive Summary

FOODDROP is a unique proposition that will look into the meal needs of people who like to have
home-cooked food and also are highly conscious of their nutritional value of the meal that they are
having and the calorie count of the same. We aim to provide through Foodrop, the raw material
required to cook the daily meal of your choice, thereby ensuring that the food you eat is home-
cooked and also reducing the time required to cook.

It will initially be launched on a subscription basis, on either a weekly or monthly basis. We aim
at making food available at your fingertips an experience as easy as watching your favorite shows
on Netflix.

Our primary target audience will be people who love cooking and students who love homemade
food but don't have the resources and don't know how to cook. Our meal kits that contain
vegetables, spices, optional confectionaries as raw materials and a recipe.

Food drop will be positioned as the perfect solution to avoid ordering your favorite food from
restaurants and helping boost your culinary skills. Since our primary target audiences are the youth
and millennials, we will be primarily making use of social channels like Instagram, Facebook, and
Twitter to reach out to our Target Group and create an impact.

Since we do not have a competitor in the market,and since we aim to maintain our positioning as
a semi premium product, we will keep our pricing linenant and focus on semi urban and urban
areas.

Our Services

In this fast-moving world, having healthy food, while taking care of the nutritional intake is
something we fail to take care of. In the course of keeping our work as a priority, we often end up
compromising our health. Hence, it is important to see that the necessary nutrients reach the body.

FOODROP is one such initiative that will provide raw material kits for your daily cooking at your
doorstep, thereby ensuring that the food you eat is home-cooked and also reducing the time
required to cook. Consumers need not worry about the hygiene conditions of the restaurant you
are ordering from and whether the food delivered has been properly cooked or not.

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Since we are a pioneer in this space, we do not have any direct competitors in the market. Our
close competitors could be food delivery services like Swiggy & Zomato.

In our research, we found that out of 54.5% of the people who like ordering food from outside,
45.5% of the people have food more than twice a week and 11.7% have food for more than four
times a week. Based on this, we can say that there are a lot of people who don’t like or are willing
to have food from outside. We plan to cater to that segment of the people who look for different
options for their meals other than ordering from outside due to factors like the quality of the food,
the desired taste amongst others.

Since having food delivered always comes with a price, and since it is not always economical to
go out for your meal, Fooddrop will solve all these problems. In the end, you get healthy and tasty
freshly prepared food while keeping your nutrition intake in check, fresh out of your kitchen.

Keeping in mind that almost 71.8% of the population likes to cook and almost 41.6% of the people
don’t love to go for grocery shopping, the USP of our product is that we offer meals that are not
only fresh from the farms but also keep your nutritional needs in check.

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The main impact will be created only from the demographic factor, as our primary target will be
the working class or college students staying away from their homes. We aim to attract the
audience with attractive packaging and the ease of cooking a home-cooked meal within no time.
We plan to make our product available in the semi-urban and urban cities where the per-capita
income is high so people will be ready to pay for a new quality service provided to them.

Consumer Buying Behaviour

In our Problem recognition stage, we will make our customers aware of the unconscious problems
that they have been facing when it comes to food and create a gap in the minds of the consumers.
Fooddrop will be launched as a solution to the above-mentioned problem.

In the Information search stage, we will create awareness about our services and products and
other relevant details through the use of social and direct channels, thereby creating a sense of
curiosity among people.

Post-purchase feedback will be taken periodically and the services will be customized as per the
need.

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Objectives

Primary Objective: To promote and aid in creating a healthier lifestyle among people. Backed by
survey more than 50% of the people are interested to take a look at the nutritional value of the food
that they are having.

Secondary Objectives:

● To reach our primary objectives, we will initially start as a subscription-based service,

aimed to take care of the nutritional needs of our consumers.
● We would have to create awareness among the Target Audience on the need to eat healthy.
This will be done through various channels, including the creation of a hashtag,
“#gharkakhana”, that will utilize user-generated content to spread the word amongst the
people.
● We will aim at generating 1 lakh regular subscription within 7 months, which will thereby
help and create the first step in establishing ourselves as a leader in the nutrition sector.
● Our KPI’s (Key Performance indicators) would involve the generation of orders worth Rs
12 lakhs in a span of 4 months. We plan to initially start our services in Delhi as there are
a lot of universities, thereby making it easier to tap into the youth population.
● As further expansion plans, we would like to expand into other 4 metros within one year.

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Segmentation

Our primary segment would be the youth or the millennials, or anyone in the age group of 19-32,
especially people who are working and students who are staying away from home, as usual, they
look for home-cooked food.

Talking about segmentation our service is planned to primarily serve the youth or the millennials
demographic. We plan to start our operations from Delhi, because of the huge student and the
office going crowd that we can tap into. As we plan to position our product as a semi-premium
product which will lie somewhere between a going out restaurant and ordering food online, our
products will be price sensitive. We won't be able to price our product high as then go out
restaurants will be able to gain a competitive advantage over us and if we price is low, it will create
the image of a low-quality product in the eyes of the consumer. Therefore, a semi-premium image
will be optimal for us.

We would be more focused on concentrated targeting as our first two major focus will be:

1. The people of the taken age group

2. Location at which we will be operating.

Marketing Mix

This section will talk about the most integral part of the whole marketing plan as here we will be
looking into all the constraints that can come up while setting up the business.

We will be looking into the 4 P’s of marketing, that is:

· Product

· Price

· Place

· Promotion

Product

We plan to establish our service as a specialty product as it is a new and unique concept that people
would love to try. As a specialty product is something in which people are willing to spend some
time as well as they give a spend a lot of time towards as an engagement with the product. As a

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specialty product, we plan that our customers develop a different attachment with our company.
Vis-à-vis our product will be highly heterogeneous in nature.

With this new concept, to be a standalone brand in our segment in the market. As our service will
be generic in nature the brand will also carry its image. We want our service to be positioned as
one of the top food providing brands of the country with an image of high nutritional value
provider.

In our BRAND AUGMENTATION strategy, we look forward to position our brand as a value
provider. The identity or the main BRAND EQUITY of our product will be the nutritional value
that we will be offering and the differentiated service from any other food service provider of the
country. The uniqueness will be the home-cooked food and the taste with the nutritional value of
a meal to our customers. As already mentioned the POSITIONING will be done as a semi-premium
product amongst the crowd as all will not be looking for nutritional value in their food and all
don’t want to have the online delivered food.

Other brand elements of the company like the name and the logo are just focused to give a simple
identity to a new brand.

Service Augmentation: -

Along with our product, we plan to provide an ease of navigation on our website, ease of choosing
the desired menu from a wide range, free of cost trials that will be offered for the first order which
is made by any customer looking for our service as an option. The delivery option will be made as
per the time frame provided to us by our customers according to their convenience. As a post-
purchase service any further customization to the order henceforth will be taken into account.

PLC (Product Life Cycle) of our product:

According to the product category that we are choosing that is online food delivery service, we e
see that this will be in the growth phase of the PLC as being a new product introduced in the market
with a completely new service, it will be gaining a lot of popularity easily in the market and we
look forward to a growth driven by innovation.

Price

The success of the business depends upon how well it is priced in the market, as the price of any
product plays a very important role in deciding the success of the business. The price determines

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if the consumer will be willing to pay the amount or not, and whether the consumer feels that the
price is worth the value of the services he/she is getting in return.

pricing objective we plan to go for a MARKET PENETRATION pricing policy. As in this the
price of our services will be priced relative to the other potential competitors present in the market
which is online food delivery. This pricing policy will help in gaining market shares in order to
meet our target of deadlines.

As we plan to go for a market penetration pricing we can't do the quite opposite by price skimming
or charging a premium price. As we have already mentioned that we plan our product to be a semi-
premium product the penetration pricing won't do much harm to the image of the product. We can
also look upto to the perceived value pricing as we already know from the survey how much people
are ready to pay for meals of the day.

To fix the base price of our product the easiest and the most convenient way is to consider the
fixed and variable cost which we will be incurring in the business and adding a margin to it. This
strategy suits us best because with absence of direct competition we don’t have the challenge of
our prices being compared with any other service.

Moving further into the business with time we also plan to incorporate other pricing tools such as:

· Loyalty card: As with time we will be having regular customers, identifying them and
getting them extra benefits will help us retain them for a longer period.

· Special customer pricing: We can have different pricing categories such as:

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 i) People with bulk order.

ii) People who are willing to pay more for any extra service they want.

iii) People who regularly order from us.

· Psychological discounting: This can be applied when we launch any new item on our menu
and keep the price as 199, 299 flat for a platter.

Place

As here we will be the assembler of the service, we plan to have a very simple distribution channel,
i.e Producer → Consumer. This direct channel will not only help in reducing the price and
keeping it to the minimum but will also help in maintaining a perfect balance for quality control.

A distribution channel is very important because a properly designed distribution channel helps to
know the customer needs as per the target market.

As we follow the step we need to look into some aspects such as:

· Market classification: We have chosen Delhi as our first operational area and then we plan
to move into the 4 major metros. We chose Delhi as it has the highest number of universities
thus making it a student crowded place. It is easy to pull the attention of this crowd as well it's
the same with other metros where the crowd consists of a very large working population who
will love the idea.

· The Objective of our distribution channel would be AWARENESS and working on the
FORM UTILITY of a product. We would be offering food in a new form and therefore
knowing the form utility awareness is very much needed.

· We will be following an EXCLUSIVE DISTRIBUTION channel as we will be operating

wholly on our own in the beginning as we will be operating in a defined geographical area.

As we will be dealing with fresh and perishable good some important things we need to consider
such as:-

• Short delivery times

• Assessment of accurate demand

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 • Dedicated transport and storage services

Promotion

The last P in the list but for this stands to be the most important P for you for major two reasons:
1) We are a startup based wholly over the internet.

2) For awareness of a completely new idea.

So for our communication, we will take the following into account.

The benefits that we will be offering: We will be offering the required raw materials to you so that
you can cook your favorite food without the hassles of standing at a supermarket in long queues
to buy groceries and vegetables.

Advertising appeals:

1. Innovation appeal: Since we are the first of its kind in the market to introduce such a
service, we can easily use innovation appeal to attract our audience. Fooddrop aims to create
solutions to problems that were always considered mundane and unimportant.

2. Nutritional appeal: Using the nutritional appeal would mainly be used to tell people that
fooddrop brings to the table that is fresh and nutritious. Consumers need not worry about the
conditions in which the food is prepared and if the raw materials that were used were fresh or
not, like in case of ordering food online.

Implementation Details

Initially, we plan to invest a total sum of 15 lakh, as we believe this will be enough to take care of
all the requirements of setting up the company.

The major expenses we think we will be incurring would be:

1. Raw materials
2. Salary to delivery executives
3. Packaging
4. Advertisement and Promotion

This is the basic timeline we plan to look forward to for a period of 1 year.

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The risk which we are expecting in the near future is less order generation and a lot of things will
be assembled by us. If we see a reduction in orders we can easily stop buying more raw materials.
The mitigation of risk for us is very simple. The number of order generations in the very first
month of operation will give us enough data to know whether we are moving towards success or
not.

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