EXECUTIVE SUMMARY

Gusto is preparing to launch a new product “Gusto Instant khichdi mix”, a ready to cook
khichdi mix which can be cooked in three minutes, in Anand market. Gusto Instant khichdi
mix is healthy, gluten free and traditional. Gusto Instant khichdi mix offers taste and health in
three minutes at a very competitive value added price of Rs 40, which can effectively compete
in the market, were competition is in the form of substitutes. The segmentation variables used
are geography, income and then age and occupation. Gusto is targeting specific segment,
young dual income families and working bachelors, taking advantage of growing demand for
healthy ready to cook product.

‘Gusto’ means “Taste” in Spanish language, and in English ‘Gusto’ means “Enjoyment and
enthusiasm in doing something” communicating brands value proposition. . Gusto has a brand
personality of healthy and nourished professional. Gusto Instant khichdi mix is distributed
through two direct sales channel and an indirect sales channel.

Gusto is planning to sell 336000 packets of instant khichdi mix in the first year. The primary
financial objectives is to achieve first-year sales revenues of Rs 12096000, and to keep first
year losses Rs 356900, and break even early at 13 months and one week. The breakeven is
attained at 369766 packets at a revenue of Rs 13311576.
1. SITUATION ANALYSIS
1.a Market need Identification
The demand for Ready-to-Cook (RTC) products is on the ever increase, especially in
the last few years. Thanks to the changing lifestyle of the consumers and the increase in their
ability to buy products of their own choice without much financial constraint, especially in the
urban market. The urban area has become the hot spot for pitching these RTC products owing
to these factors which have made life busier for the people. Also, due to increased employment
opportunities, there is a huge chunk of population migrating from tier 1 and tier 2 cities to
metropolitans. This propels the RTC market further as the working population who are
bachelors prefer to cook a product which could save time rather than at restaurants. All these
put together contribute significantly in spreading awareness about RTC products. The growth
of retail chain outlets and emerging super malls and mega malls in cities also contribute to the
growth of the segment significantly. The growth of Haldirams, MTR and other companies into
big giants is owning to the advantage provided by this market need.

The Indian RTC food market is projected to grow at a CAGR of 21.99% during 2014-
19, in value terms.1 In India, northern and western region are the key revenue contributors in
the RTC food market, with major demand emanating from cities like Mumbai, Ahmedabad,
etc. However, high price of RTC food products is a major factor posing threat as Indian
consumers are innately price conscious and their preferences generally change with even
slightest change in price. This presents RTC companies with an opportunity to come up with a
variety of high-quality RTC food products in affordable price range.

A fast-paced urban lifestyle, rising disposable income and increase in the number of
working women with an experimentative palate has powered the RTC market in India. The
Indian woman today is looking at effectively utilising her time and looking for intermediate
solutions to help her cook faster while reinforcing her role of the nurturer of her family. Today,
the homemaker is taking on multiple responsibilities in and out of home. The role of the RTC
category is to help her in ensuring that she does not miss out on the joys of cooking and serving
her family delightful food. Our products are therefore designed to supplement her culinary
expertise while taking the drudgery out of cooking.2 The fact that India is becoming the capital
for heart and diabetic patients and the dynamic changes in the lifestyle of the people and food

1
“India Ready to Cook Food Market Forecast and Opportunities, 2019” by Techsci Research report
2
Jain, Shilpi Consumers ATiitude towards Ready to Cook food. Food Science Research journal.
habits of the people require the market to respond to the needs with healthier options for the
consumers and considering the changing tastes and preferences of the consumers.

A survey3 states that 62% consumers believe that food will be more diverse in India by the
year 2025. Also it states that consumers believe that food will be more innovative and tastier,
more convenient and ready-to-eat to mirror lifestyle changes in India by 2025 and 46% of
consumers in India expect food to be healthier by 2025. This shows that consumers are on the
constant outlook for diverse products that would suit their need. Hence, the market needs a
healthy product that could the needs with an easy cooking method.

2b. Product Characteristics

Khichdi is a traditional Indian product consumed by people across the country. The
emotional aspects attached to the product, like the traditional customs of Hindu religion where
people avoid eating grains during fasting and instead prefer to eat khichdi, make the product
inevitable part of the diet of Indians. Through Gusto, we aim to make the delicious and most
sought-after food of the households available in a form that is easy to cook and catering to the
diverse tastes of the consumers. The product is made to help the working professionals and
bachelors who, due to time constraints, are not able to spend enough time to cook and consume
the product which their conscience and taste buds feel for a nutritious and tasty meal. Gusto
will provide ample opportunities for the consumers to fulfil their needs and stay healthy without
compromising their busy scheduled life.

The product will be one-of-its-kind in serving the taste preferences of the consumers of
Gujarat. The ingredients of Gusto make it special to cook and eat as it employs spicy and most
loved Indian cuisine ingredients. The constituents of the product are given below along with
their key characteristics

INGREDIENT CHARACTERISTICS

Turmeric Natural food colorant; variety of medicinal properties

Ginger Good carminative: adds flavour to the food

Asafoedita Asthma relief; adds flavour to the food

Onion flakes and onion powder Good source of vitamin C; enhances taste

3
Puratos Survey, 2017
 Carrot (dehydrated) Good source of Vitamin A

Beans (dehydrated) Rich in protein

Chili flakes (dehydrated) Enhances taste; increase the spiciness of food

Curry leaves (dehydrated) Adds aroma

Table 1 Ingredients used in the product and their key characteristics

The most important characteristics of Gusto is the health benefits that it would reap to
the consumer. Bajra (pearl millet), the major ingredient of Gusto is a rich source of protein and
fibre. The nutritive composition of the product4 is given in annexure

Gusto, thus, with high fibre content is suitable for consumption by diabetic patients and
celiac disease affected consumers who sought healthy and tasty products as part of their diet.
At the same time, Gusto helps restore the traditional value of millet by adding value to it.

2c.Market Summary
Gujarat is the best Indian State to do business in, says the World Bank’s ‘ease of doing
business’ ranking of the Country’s states. The State, which has topped the list with 71.14 per
cent score. The market size of food processing industry is ever growing and is currently worth
Rs 1500 crore, out of which RTC’s market size is 600-700 crore (barring noodles) and is
expected to grow around 20- 25 per cent over the next five years.5

3. ANALYSING ENVIRONMENT
In order to analyse the environment, PESTLE analysis was employed and the inferences
are as follows:

Political

The government has introduced Initiative for Nutritional Security through Intensive
Millets Promotion (INSIMP) which includes Bajra. Through this scheme government aims at
increased production of Millets and promoting processing and value addition techniques to
increase the consumption of millet based food products. The government has started promoting
the Khichdi as ‘Brand India Food’ stating that khichdi symbolises India’s great culture of unity

4
Nutritive value of Indian foods by C Gopalan et al.
5
in diversity, the government is planning to ensure the availability of khichdi in restaurants and
kitchens around the world.

Economical

The Anand economy is diverse, with farming sector to industries. The city has large
chunk of NRI population and businessmen. Majority of the people belong to higher upper
middle class and middle class, with potential to spend money for taste and quality. Also, the
fact that the consumers consume bajra for about twice in a month adds to the acceptance of a
millet based product. Currently, there are no value added bajra product which is available in
the market that can be cooked with ease. Hence, Gusto would receive the starter advantage by
catering to the needs of the consumer.

Social

The khichdi is part of diet for majority of the population of Anand. Bajra is also a local crop
grown and people have long since associated with the product in their routine diet and the
changing dynamics of lifestyle has not affected the consumption pattern as far as bajra is
concerned. The pattern of usage is weekly or monthly, with increasing usage frequency in
winter. The RTC market in Gujarat is a very vibrant one and the existing factors like lifestyle
changes, etc support the further expansion of the market. The number of RTC products present
in the retail outlets has been increasing tremendously in the recent past and the increase in the
number of retail outlets itself influences the purchase options available.

Technological

As part of INSIMP the government is also providing technological incentives aimed at

promoting entrepreneurs to produce millet based value added products. The product require
freeze thaw dehydration developed by DRDO, which makes the product highly acceptable. The
technology has dehydration to reconstitution time of two to five minutes. The product mad so
has a shelf life of 12 to eighteen months.

Environment

The require freeze thaw dehydration is eco-friendly technology. This eliminates emission to
the environment in form of smoke and leaves least carbon footprints recycle packaging is to be
inculcated in the future. This makes our venture an environmental friendly one.
4. ANALYSING COMPETITION
Gusto is a pioneer product, there is no product matching its specification that either
sellers have heard of or buyers have heard of6, other than that there are some online sellers who
sell multi millet khichdi mix at rate of Rs 300 for 450gm which is not an affordable cost for
Anand market. Though there are no direct competitors to the product, the potential competitors
come from substitutes. The existing competitors are given in annexure

7
Out of this only Kellogg’s has a product based on a millet- Ragi. The market survey
of the retailers gave us the insight that Kellogg’s is the customer-favourite along with other
more famous and visible brands like MTR, Chings and the like. Local brands like Ramdev,
Bapalal seems to have tough time competing with these big players. The Gusto is packed in
larger package (150gm). Larger package size increase the amount of product that consumers
use at one time.

The target is to bypass attack the larger players like Kellogg’s, Nestle and MTR and
frontal attack the local and regional firms like Bapalal. The Market niche strategies is the
best fit since, the product is one of its kind, that comes with different flavours, it is better to
know the target customers so well that we can meet their need better than other firms by
offering high value product.

5. CONSUMER BEHAVIOUR
The consumers in Gujarat (Anand, Ahmedabad and Vadodara and regions surrounding
it) are driven by better standards of living. The increase in the per capita income8 has increased
their purchasing ability and has given greater discretion to the consumer. The consumer
behaviour is influenced by varied factors which has affected the market to a greater extent. The
dynamic nature of the market is evident from the number of products found in the retail outlets
in the city. A study9 states that lifestyle changes influence the consumer behaviour along with
the increase in working couple number. Hence, it can be inferred that consumers would prefer
to buy a product that is easy to cook and saves time and also that could suit their changing
tastes.

6
Market survey
7
Market survey
8
Department of Planning
9
International Journal of Multidisciplinary Research Vol.2 Issue 6, June 2012, ISSN 2231 5780
 Consumer Behaviour
90
80
70
60
50
40
30
20
10
0
Lifestyle Changes Couples Working Non-availability of Easy to cook Taste factors
Spices

Series 1

Figure 1 Chart showing the determinants of consumer behaviour10

Also, Bajra is a commodity that is very popular among the people of Gujarat owing to
the high production of the crop in the state. People consume bajra at least twice in a month11.
Hence, this favours the millet market in the state. The consumers would respond positively to
a value added millet product as it is a part of their diet.

6. MARKET SEGMENTS
Market segmentation is carried out using different variables such as Geography, Income
and occupation and Age.

i) Geography

The sales of the product will be limited to the boundaries of three districts Anand,
Vadodara and Ahmedabad. Initially sales will be at Anand and other urban centers of Anand
district. From the second year sales are widened to the cities Ahmedabad and Baroda.

ii) Income

Income is one of the important factors in defining the niche. High and middle income
groups are the targeted segment. Mainly the working population ranging from IT professionals
to different white collar professionals can be targeted as these people tend to be busier. Anand

10
International Journal of Multidisciplinary Research Vol.2 Issue 6, June 2012, ISSN 2231 5780
11
“India Ready to Cook Food Market Forecast and Opportunities, 2019” by Techsci Research report
has a high population of students coming for higher education and working youth. These people
are also the main potential consumers of RTC products.

iii) Age & occupation

Young couples of the age group 20 to 40 tend to experiment with newer products out
in the markets. Bachelors, mainly students are also prime targets of all RTC products. Health
conscious customers in different age groups can also be targeted with proper awareness
creation regarding health benefits. Also, occupation forms a major criteria in selection of food
and consumption. People who tend to work longer and busier are more likely to buy RTC
products. Hence, segmentation is based on occupation as well.

7. DEMAND FORECASTING
A survey was conducted and analysis of the results were used to forecast the demand.
The survey covered crucial information regarding what people say, what people do and what
people have done. We were able to understand the buyers’ intention, consumption patterns,
expectations from every product they purchase and preference of one similar product over
other.

Discussions with retail shop keepers provided crucial data regarding the change and
preference of food items with the variation in the climate. Moreover the data obtained from the
survey showed that millet is an essential part of every household’s diet, (in one or other form
of table dish) irrespective of the income levels. The consumption of millets in food packets was
mostly prevalent amongst the upper middle income households and loose quantities were very
mostly bought by the lower income level people.

According to the 2011 census the total population of Anand District is 20,92,745 (fn) .
The people living in rural areas are less likely to consume the product from outside. The total
urban population in Anand district is 634987. People below poverty line are eliminated from
the demand forecast. This makes the potential market population as 518657.The mean
household size for Gujarat state is 5. Hence, the number of households under potential market
is 103731. Hoping that we will be able to capture 15 per cent of this, 15559 households will
buy the product. We assume that a household will buy a packet of Gusto Khichdi Mix, once in
two weeks. This makes the expected monthly sales to be 31118. Taking a pessimistic approach
to ensure the sales, we are producing 28000 packets of the product per month.
8. MARKETING STRATEGY
8.a Targeting and Positioning

Targeting

Based on the above segmentation the primary target consumers are the families of
salaried couples both are young population, mainly bachelors, aged between 18 and 30. These
people are usually busier and tend to resort to RTC products more frequently. Health conscious
Middle aged people are the secondary targets as they consider health as the prime priority while
choosing food.

Positioning

Gusto Khichdi mix is a new product which satisfies the unmet demand for a
healthy and traditional food – Bajra Khichdi –as an RTC product. While most of the RTC
product does not ensure superior health benefits, Gusto Bajra Khichdi mix has the potential to
occupy a unique position in the minds of its customers. RTC products with health benefits are
much more costly in comparison with GUSTO.

The product aims to be positioned as the ‘First option amongst various RTC products
that the customers search for, in a busy day’. USP of the product is its superior Health benefits,
thanks to the key ingredients – Bajra and Moong dal (Green Gram). Points of difference
includes millet as an ingredient, increasing promotion for millet products traditional food item.
Points of parity includes lesser time to cook, superior and attractive packaging and its unique
order.

8b. Branding
Name

The “Gusto Instant khichdi mix” is launched under parent brand “GUSTO”. ‘Gusto’
means “Taste” in Spanish language, and in English ‘Gusto’ means “Enjoyment and enthusiasm
in doing something” symbolising our goal to provide tasty and healthy ready to cook food for
our consumers.

Tagline

Our tagline is “Taste the health”, which is memorable, meaningful and in harmony
with the Gusto’s goal.
Logo

Figure 2 Logo of Gusto and explanation

The red heart shape, which is the symbol of love, indicates the nature of our offering
which is oriented towards tradition as well as healthy lifestyle. At the centre of heart is khichdi
surrounded by inner core of symbols connoting ingredients, target consumers, and taste factor.
The outer core of symbols suggest the potential healthy food items that may follow from Gusto.

The green consumer depicts healthy “and nourished consumer. The root of the green
consumer is Gusto-written in the form of roots. The logo is a metaphor to a tree, with Gusto as
its root, and its offerings as leaves nourishing the consumer. Gusto has a brand identity of
healthy and nourished consumer among the busy bees.

8c. Marketing Mix

Pricing

Price is a key decision variable in a consumer’s decision making. Gusto Instant Khichdi
mix is priced to communicate its value positioning. When consumers make buying decision for
Gusto Instant Khichdi mix they often consider reference prices they remember, thus
competitors pricing policy is taken into account to choose pricing strategy. We have chosen
our target population carefully with multi-variate segmentation, we don’t have any close
competitors and any sort of competition comes from close substitutes.

Gusto instant Khichdi mix is value priced at Rs 40 for 150gm, which is priced
reasonably with higher quality offering, but at the same time taking into account of price quality
inferences. The price is ended in zero to make it easier for the consumers to process and retrieve
from the memory. The pricing objective is to attain maximum market share, the goal is to attain
high sales volume which will lead to lower unit cost and higher long-run profit. Other than that
Anand market is highly price sensitive and a low price will stimulate market growth. The total
unit cost of the product for the first year is Rs.25.66.

Brand Selling price

Dhanashree Gruha Udyog Instant Upma Mix, 200 g 60

Gits Instant Khaman Dhokla Snack Mix, 180g 54

Gits Instant Rice Idli Breakfast Mix, 500 g 100

MTR Masala Upma Mix, 60 g 20

Packing

The packing of our product is done such that it protects, preserves, transports, informs
and sells itself. We give prime importance to two main aspects with respect to packing. While
the primary function of our food packaging is to protect the product and that of food packet
design is to attract the costumers.

The front side of the cover contains the logo of our product along with the name of the
brand ‘GUSTO, Bajra instant kichadi mix’. This conveys the brand name, brand message, what
our product is, its main base ingredient and the company’s philosophy of going back to the
traditional healthy eating habits. A catchy description ‘3 minute wonder’ is written to indicate
the ease with which the product can be made. A symbol of hot served kichadi in a bowl with a
spoon is shown along with the health benefit tag of gluten free. The tagline ‘Taste the Health’
is written in large font to catch the attraction of the health conscious target group. Along the
top corner of the cover is displayed “100% all natural”. Moreover this overall design helps to
get the attention of our target segment, i.e. the working professionals who are held up in tight
daily schedule and upper/middle calls people who prefer high quality and premium product.

The back side of the cover provides the cooking guidelines in pictorial depiction as well
as written form. The other details include the ingredients involved in the mix power, food
category details in the RTC segment, net weight(150g), expiry details, date of manufacturing
details, precaution in regards to storing and handling, company address, ‘fssai’ licence number,
website address and contact details are all given. The nutritional information is also provided
at one corner of the packing in a tabular form. To increase the customer trust and for providing
quality service, a feedback mechanism is provided with an information sating that ‘If you find
any fault regarding the quality and quantity in this packet, please inform us, we will replace it’.
The overall colour shade of the packet is dark chocolate brown with a combination of red colour
along the boundaries and for text. A mat finish covering is given with aluminium coating from
inside. The shape of the packet is stand up pouch with dimension of 5*8*3inches.

Our packing is our brand ambassador and it all efforts are made so that it conveys the
value of our product to the target audience clearly and concisely in a fraction of a second, and
there by sells itself.

Promotion

The first objective in promotion is to get the brand name ‘GUSTO’ imprinted on the
minds of consumers. A mix of communication channels will be chosen for effectively
communicating our positioning and brand values, along with sales promotion, promotional
events and social media marketing.

Increasing awareness about the product through promotional methods like advertising,
exhibitions, seminars and providing lucrative margins to distributors (trade promotion) is
expected to strengthen the partnership across the value chain. Recognition of Khichdi mix in
ready to cook food market, increasing awareness through online marketing and strengthening
supply chain are our key focus. Utmost priority is given to Point of sales promotion by the
retailers as it improves awareness among the potential customers. Promotional activities such
as events and newspaper advertisements will start one month before the product launch.
Newspaper advertisements and pamphlets are aimed at reaching the entire target population.
 We used integrated marketing communication mix which ensures that all forms
of communications and messages are carefully linked together. All the promotion activities
will be primarily focused to promote awareness on our USP- health through fibre rich bajra.

We also plan to tie up with hotel chains in the city and serve Gusto Khichdi Mix.
Merchandising will be done by giving specially designed stands in bigger shops along with
attractive posters. Around 50 smaller outlets across different towns in Anand will be painted
and name plates will be sponsored by Gusto. This will attract attention of inmates of the
respective locations.

Trade Promotion

As a new entrant to the market, we work to push our product through the channel by
increasing retail or other intermediary demand. So in trade sales promotion, we
give promotional incentive directed at retailers, wholesalers, or other business buyers to
stimulate immediate sales. So trade promotion for Retailers include wholesalers, department
stores, speciality stores and convenience stores will help in market penetration.

Print Media

Rather than repeated advertisements, the focus will be given to big advertisements in
local editions of all major newspapers. Advertisements will be given twice in every month.
Pamphlets will be given along with different newspapers (both English and Gujarati)
circulating in the urban areas for the initial months. Also Pamphlets will be distributed in all
the events and seminars co-sponsored by Gusto.

Displays

i. Billboards/hoardings– Hoardings in all towns and National Highway sides, small billboards
near to the shop and other in a visible area inside the city itself.

ii. Standees in different locations of malls, shopping centres and super markets.

Digital advertising/ Internet marketing

We use all internet technologies to deliver promotional advertisements to consumers.

Digital advertising including promotional advertisements and messages delivered through
email, social media websites, online advertising on search engines and banner ads on mobile
or web sites.

Events

 Free samples tasting

Special temporary outlets will be made on a moving vehicle equipped with a stow and
utensils. Tasty Khichhdi will be prepared in front of the crowd and free samples of cooked
Khichhdi will be distributed in small paper plates along with a small brochure stating the
nutritious advantages of the product.

 Games
Customer participatory games will be conducted in and around good retail stores to
bring awareness about the quality and importance of the product.
 Seminars and other events

Seminars will be conducted along with some other crowd pulling gatherings such as
health benefit sessions in the presence of reputed persons, food fair, food festivals, etc. to attract
higher population.

Place

The strategy is intensive distribution were Gusto instant khichdi mix is placed at as
many outlets as possible. Gusto has two direct sales channel and an indirect sales channel. The
indirect sales channel has a carry and forward agency, distributer and a retailer as
intermediaries, hence making it a three level channel. In this channel we will be running a
vertical marketing system with the Gusto as channel captain; all the operations including
manufacturing, distribution and retailing will be completely under the directives of Gusto so
that all the channel member will act according to the best interest of all.

In the direct sales channel company will be supplying Instant khichdi mix directly to
restaurants, with restaurants serving as value added partners. This will be a zero level channel
with Gusto delivering Instant khichdi mix directly to restaurants. Other than that company will
be delivering Gusto instant khichdi mix directly to few retailers. Our focus is on supermarkets,
hypermarkets, discount stores, convenience stores and grocery stores in general.
 Carry and forward Distributer Retailer Consumer
Gusto

Retailers Consumer

Restaurants Consumer

Figure 3 Distribution channel

9. FINANCIALS BUDGETS AND FORECASTS

The first year price for a packet weighing 150gms is set as Rs.40. Building for
production unit is taken for five year lease and is to be renewed after that. Major share of the
total costs from second year will be variable costs as major fixed costs will be incurred as initial
cost. The expenditure on advertisements and promotions also will be highest in the first year.

The total revenue in year One (2018) is expected to be INR 12096000 (fn annexure).
The calculations and forecasting are made taking into consideration the following assumptions
and calculations:

1. Salary of operator (18000 per month), drivers and helpers (6500 per month) remain constant
throughout the initial years. Salary will be increased by ten percent after every two years.

2. Electricity, supplies maintenance and account for 15% of the sum of salary and raw material
costs

3. Transportation costs and other overhead costs contribute to 10% of cost of goods sold.

4. Ten percent margin (Rs. Four) is given to retailers in Anand district in the initial three years.

9a. Sales Forecast

Sales forecast is calculated on the assumption that the group will able to sell the quantity
that comes out of demand forecast. The product is distributed through more than 500 outlets in
different urban areas of Anand District. There will not be any intermediaries in Initial years as
sails in constrained to Anand district. Expected sales for the initial year is 7000 packets per
week. The sales are expected to increase steadily so that 10,000 packets will be sold per week
in fifth year.

9b. Expense Forecast

Initial investments includes Machinery, vehicle and building costs. Annual rent for
buildings are incurred each year. Marketing and distribution costs are higher in the initial
period.

There will be 6 salaried employees working in the company which includes one
operator, three helpers and two drivers. Total raw material cost per packet of 150gm can be
calculated as Rs.18.12(footnote). Gusto Khichhdi mix is having superior packaging which
costs approximately three rupees per packet, when produced in bulk.

9c. Break Even Analysis

As per the sales forecast, the product will reach breakeven in 13 months and 1 week.
The expected quantity that is required to reach breakeven is 369766 packets (fn). In monetary
terms, breakeven is reached when total sales revenue is Rs. 13311576. From the second year
onwards, the product is earning positive operating income.

9d. Evaluation & control

With the fast growing RTC industry with the established competitors, Trust building is
the major factor we are concerned with. All the promotions are done giving specific importance
to building trust, mainly because we are largely dependent on ‘the word of mouth publicity’.
Our major focus will be to provide the best consumer satisfaction and keep improving the
product throughout with respect to the consumer feedback. The feedback can be obtained by
the following ways:

1. Sales force feedback which can give valuable recommendations as they are in constant
touch with the consumers

2. Sales feedback through constant analysis of the sales over time.

3. Observing the habitual change of the people helping us to dynamically modify our
product to suit the consumer taste and needs.

4. Social media opinion polls

5. Response mechanism through website and face book page

6. Direct customer service through mobile and WhatsApp contact.

7. A feedback calendar with allows the consumers to give their review of their previous
experience of consuming the food.

Our company tries to move along with the consumer needs and strives to exceed their
expectations by investing more in Research and Design, packing, marketing and service. Over
a period of time the company strives to become expertise in doing each process by cutting shot
unnecessary expenses and incorporating better methods and technology to cater consumer
needs.

9e. Implementation Milestones

The implementation of the plan and the product is carried out in three phases.

Pre-launch

The only primary focus of our brand will be to create an awareness amongst the
potential customers in the district of Anand. A full-fledged awareness campaign will be created
amongst our target group about the importance of consuming millets, health benefits and the
qualities that our product offers. This is done in the pre-launch phase through informative
advertising through large flex hoardings, newspaper advertisements and pamphlets. The pre-
launch is done almost a month before the actual launch of the product. The sole intention is to
familiarise our brand and unique selling proposition amongst our target group consumers.
Personalised mails to target population, hiring media consultants for featured articles on the
upcoming brand and its health and traditional benefits, ads promotions in the theatres are some
of the techniques adopted to signal the target group about a new option in their menu.

Launch

The launch will be accompanied with visual merchandising in all the big supermarkets
in the districts with a straight store layout to get a highest chance of sale. As our product is an
new entrant in this market, our focus will be to get the target consumers to try our recipe once.
Serving free recipe in the entrance of this big super markets can help the potential consumers
taste our product. Large scale promotions in the form newspaper advertising, introducing in
the restaurant’s menu, visual attraction in the selling store in form of painting and colour
lighting and releasing video ads in the social media will help in reaching put to the target
consumers.

Post launch
 The basic target of this phase is to retain the existing consumers along with increasing
the new costumers. Reminder and reinforcing advertising is done for purchase and repurchase
of the product. Advertising will be provided in the health related magazines and newspaper so
as to increase the market share. Further expansion of the market will be done once the
breakeven is reached, which is forecast to happen after 1 year and 1week.
10. Annexure

Annexure 1 – Logo of Gusto

Annexure 2- Product package design

Annexure 3 – Newspaper advertisement
Annexure 4 – Menu card
Annexure 5 – Social media advertisement
Annexure 6 – Competitors
BRAND VARIANTS

Kellog’s – Chocos Crunchy bits, Moons and Stars, Ragi Chocos,

Choco fills

Kellog's Special K

Saffola Oats, Masala oats

Mohun's Oats

MTR Masala Upma, Rava dosa, Dhokla, three minute

Poha mix, Muthiya mix

Gits Oats Idli,

Ramdev Dosa, Khaman mix

Maggi Noodle, Atta noodles

Chings Noodles

Sams Hakka noodles

Sun feast Yippee noodles

Ashirvad Rajma mix

McCain Veggie fingers, Aloo tikka

Knorr Noodles

Top ramen Noodles

Chef's basket Noodles

Bapalal Gota

Ramdev Handvo

Quaker Oats, Masala oats

Bagrry's Museli
Year 2018 2019 2020 2021 2022
Sales 336000 360000 384000 480000 480000
Price-margin 36 36 36 37 37
Total revenue 12096000 12960000 13824000 17280000 17280000
Raw material cost 6088320 6523200 6958080 8697600 8697600
Salary 702000 702000 772200 772200 849600
packing 1008000 1080000 1152000 1440000 1440000
Supply and electricty 1018548 1083780 1159542 1420470 1420470
Over head costs 679032 722520 773028 946980 946980
Total Variable cost 9495900 10111500 10814850 13277250 13354650
Contribution 2600100 2848500 3009150 4002750 3925350
Fixed costs 2250000 500000 500000 500000 500000
Promotion Cost 1715000 1475000 1375000 1125000 1095000
Total Fixed Cost 3965000 1975000 1875000 1625000 1595000
Annexure 1 – Raw material cost per kg of the product.
RAW MATERIAL REQUIREMENT COST (in Rs.) PROCUREMENT
(per 1 kg of final
product)
Bajra 250 g 3.18 Gujarat
Moong Dal 250 g 12.10 Gujarat
Pepper 10 g 7.00 Maharashtra
Turmeric 10 g 0.66 Maharashtra
Vegetables 200 g 7.5 Maharashtra
Onion 50 g 10.00 Gujarat
Ginger, Garlic and 10 g 4.12 Gujarat
chili
Cumin seeds 5g 0.80 Gujarat
TOTAL 45.36

ANNEXURE 2 – Newspaper ad

Annexure 3
Packet

Annexure 4

Menu card

Annexure 5

Fin stat

A6 promotional cost

A7 data from anand