Presented by: Group 14

Somya Jindal

Aditi Kapoor

Roopam Garg

Marketing Management II

Marketing Plan:

ARORA COLD STORAGE

CONTENTS

Executive summary

Situational analysis

Marketing Strategy

Financials

Controls

Executive summary

Arora Cold Storage is a Delhi-based cold storage operator.

In the next five years, it wants to have an ACS cold-storage display racks in stores all over India.

India is an agricultural-based economy. The country’s inefficient cold chain network results in spoilage of almost 40 percent of its total agricultural production.

Catering to the demand for fresh and processed fruits and vegetables which is increasing as urban populations rise and consumption habits change.

Target segments include supermarkets, wholesalers, warehouse companies in urban as well as electrified villages.

Situational Analysis

India ranks first in the world in production of fruits and second in vegetables,

Total value of India’s cold chain industry: USD 3 billion

Growing at an annual rate of 20-25 per cent.

Total value for the industry is expected to reach at USD 8 billion by the end of 2015

Large market scope for ACS to establish its facilities in supermarkets across the nation.

Electrification in villages of Indian states is on an extensive basis.

SWOT analysis

Strengths

Firm plan of expansion in all over India with a stipulated time

frame.

No heavy expenditure required for advertising. As major selling

can be done via sales calls, positive industry connections,

online B2B and B2C portals

Presence of huge market potential

Weakness

Lack of experience in working with regions other than Delhi

New in the National market

Opportunities

The Indian cold chain industry is expected to grow at a

compound annual growth rate (CAGR) of 25.8 per cent over

the next 4-5

Concentric diversification into having full-fledged stores of their

own

Threats Power shortages Fragmented nature of industry and the

lack of integrated players. Poor infrastructure at the farm level is

also posing to be a problem. Duplication of technology by store

owners and developing their own cheaper alternatives

Lack of backward & forward linkages to supplement cold chain

Competition

Huge Market potential, in broader

terms, not much competetion

Qualified and experienced team of

quality auditors who conduct

numerous quality checks to maintain

the quality & freshness of products

Product Differentiation: Different

temperatures from +10 to 0 degree

Celsius

Product Offering

Cold storage racks will have◦ Different Chambers

◦ Lock & Key Facility

◦ 24/7 Security

◦ Goods Sorting/Grading

Stock maintenance by client or by Arora Cold Storage as required

Insurance against natural calamities

Refrigerated vans in villages

Systematic warehousing

100% Quality assurance

Technical assistance

Marketing Strategy

Objectives First year - Reaching out to the three

states selected as targets. Second year - Expand our operations

and facilities to other states which have hypermarkets.

Third year – Maintenance and stabilisation

Fourth year - Diversify the product line, expanding to drugs and floriculture business

Fifth year - Also look to expand further in other states and eventually the entire nation.

Target Markets

Electrified Villages

3 states for first year: Assam, Tamil

Nadu and West Bengal

Fruits and vegetables like pineapples,

apples, plums, oranges, potatoes,

brinjals, cauliflowers etc. are grown in

these states

Consumption of meat, chicken, fish

etc. is also substantial

Possibility of storing some milk

products may also be explored.

Strategies Product- Quality product to our esteem client will be its

preference & major focus area

Pricing- Price will be initially less to enter the Market & later as per demand & quality the changes in price be decided.

Promotion and marketing communication◦ B2B marketplace : Webpage, “Indiamart.com“

◦ Direct Marketing: Hiring a Sales & Marketing professional to individually generate the leads & Sending them the detailed proposal.

Distribution- Online portal for ordering so that we can provide cold storages as and when the orders arrive. Outsourcing warehousing as and when required

Marketing Research

Regular surveys and tele-feedback

from both B2B and B2C platforms.

On weekly basis, our technicians will

visit the stores for any kind of required

support.

Keeping track of online queries

Financials

Financial analysis of the investment of a Aroracold storage unit of 5000 MT capacity

Project has a margin money component of 25% with the rate of interest on term loan and working capital as 15% and 18% respectively.

Rental charges have been considered at Rs. 700 per MT and the profit margin on self storage is Rs. 3000 per MT.

Financial indicators of the investment are as under:

1. Net Present Value @ 15% DF = Rs. 67.09 lakh

2. Internal Rate of Return (IRR) = 25.75 %

3. Average Debt Service coverage Ratio = 1.58

Controls

Implementation Online query solving Tight controlling measures for close

monitoring of quality issues 4 active landline numbers for on the go

assistance Weekly monitoring of the reports from

the personnel handling the online queries and calls

Quality testing and ensuring proper working of the product before supplying

Marketing Organization

Name Designation Role

Somya Jindal Chief Marketing Officer Responsible for maketing

activities of the

organisation

Aditi Kapoor Finance and Employee

manager

Provides financial

assistance to the

organisation and engages

in HRM

Roopam Garg Regional Sales manager Looks after the sales in

regions other than Delhi

Conclusion

According to us, the marketing plan as

suggested is the best way to reach our

goals and we hope to soar to new

heights in next five years.

-Thank You!