Unfold the opportunity to make a success story

Presentation Flow

Introduction

Perceived Opportunity

The Big Idea

Why Rolls

Jobs to be done

The Brand

The Brand Vision

The Brand Mission

Products – What it offers

GTM Strategy

Concept Testing – Evaluation

City Brand Universe

Sales Plan

Break Even Volume Analysis

Outlet Design

Expansion Model (with in town)

Franchisee ROI

Cost of Investment (Just Rolls Outlet)

Introduction

Eating out now no more an occasion driven

rather becoming a habit of young/adults.

NRAI reveals, 50% of Country population eat out at least once in

every three months which is eight times in Metros i.e., almost thrice

in every month.

* NRAI: National Restaurants Association of India

Fast food market in India is expected to be worth of US$ 27.57

billion by 2020. Organised sector constitutes about 10% and is

expected to grow at a CAGR of 27% by 2020.

Vegetarian fast food market constitutes of around 45% of the whole

fast food market and is expected to grow at a CAGR of 18% by

2020.

While all these reveal the brighter side

of fast food market, there’re few facts

which make it more challenging.

Introduction contd…

Liking for fast food has always been there in

our nature but unhygienic preparation keep

these away from frequent consumption.

Majority of vendors sell these at roadside

kiosks/shops who neither care for hygiene nor

use standard materials to prepare these food

items. These traditional fast foods are still in an

unorganised sector as players don’t have

glorified outlets like chain QSRs.

* QSR : Quick Service Restaurants

Perceived Opportunity

Consumers do look for hygienically prepared local snacks and

openly accept innovative platters but at the same time sceptical in

trying out unknown taste when it is expensive.

Fast life in smart cities forms habit of eat out most often which

makes consumers explore more eateries that serve food as quick as

they want.

Ambience, look & feel, sitting arrangement and presentation matters

most when it’s a matter of family outing hence family look for a

place to serve them food in peace.

Young Indian Consumers has the passion to visit fast food outlets for

fun and for a change of taste but at the same time home made food is

their first choice. Reason is simple, they have the highest value for

taste and quality followed by ambience and hygiene.

Perceived Opportunity – way out

Consumers nature of exploring hygienically prepared

local fast food and passion to visit glorified fast food

outlets can be clubbed to market an idea which wasn’t

thought ever before.

The Big Idea

Sell branded rolls to fast

food lovers in India.

Make India believe that one of

such local street fast food can

be served so hygienically that it

can’t leave any oil substance in

consumers hand.

Give Indian young adults fun &

enjoyment clubbed with completely

oil free snacks in more than 40+

varieties.

Why Rolls – what exclusive about this product

Rolls have been accepted by all consumer classes for decades and this

happens to be the best evening snacks with light vegetables cutting inside

wrapped in fried paraatha with egg coating available at a reasonable price.

Rolls still exist in an unorganised market as these local vendors lack skills and

don’t have glorified outlets like big MNC chains. To keep costing as low as

possible or gain maximum profit mostly rolls vendors use materials which

usually not taken as healthy items. This practice somehow inculcates

unfavourable attitude amongst the consumer classes.

Why Rolls – market construct

Rolls vendors usually sell at kiosks in any congregation point/high throughput

area or at an established shop popularly known as ROLL CORNER in town

irrespective of their shops’ name.

Rolls vendors lack requisite skill and they never explore new tastes in same

product line. Hence rolls have got very limited space in consumers 'mind so far

as different taste or varieties are concerned.

Jobs to be done

Favourable attitude toward rolls is very crucial for brand’s growth, hence consumer

education to develop positive attitude for this food item needs to be done.

Price conscious and quality conscious both type of consumers together constitute

this market hence to keep varieties from low to high price point and to ensure

superior quality is essential for market and mind positioning.

A strong RTB (reason to believe) is necessary to be positioned in the market which

spreads a good word of mouth and helps in market penetration.

The Brand

A New Generation Rolls Outlet

A brand is not just a name but a set of values, benefits and promises.

* Launched 26th September, 2014.

* Logo TM/registration ® awaited.

The Brand – values, benefits and promises

What it serves - Values

Delicious rolls and puffs, varieties of veg &

non veg rolls, fresh stuff, superior quality

and prepared hygienically.

What consumer gets - benefits

Oil free: product will not leave any oil

substance in your palm.

Hygienic preparation: you can bank upon.

Hospitality: that’s incomparable.

Presentation: that’s not seen ever before

anywhere else.

Variety: more than others, different platters

for veg & non-veg foodies.

Schemes & Periodical Offer

What it claims - Promises

Product is made of standard materials

and prepared in soybean oil which will

not add to any health related issues:

Heart Burn Weight gain Acidity

* Claims aren’t applicable for those who are suffering from any particular health related disorders.

The Brand Vision

To become the most preferred Quick Service

Restaurant brand in the Country.

The Brand Mission

To become the most preferred choice of its

target audiences/customers when they think

of rolls.

Products – What it offers

General

Rolls usually

served mostly

at all shops

Speciality

Rolls, not served

at any other

local rolls shops

Innovation

Unique to

Just Rolls

Products are served from low to high

price point to cater all pockets.

And available in three different categories,

General, Speciality and Innovation.

Products – What it offers contd…

Three different platters offer variety of

rolls.

Products are prepared

to offer the highest

value against price in

comparison to local

competition.

GTM Strategy

GTM Strategy

Phase 1 Launched first Concept

Testing Outlet in

Objective: to measure market

response in terms of level

of acceptance.

Area Identified: Andharapul,

near Varanasi Cant Station

Andharapul, located in between

Nadessar and Telia Baug

(which is predominantly known

as rolls street in the City),

is selected for visibility.

Phase 2 Establish the brand

in the City

Design, evaluate and reinforce

marketing mix.

Home delivery

Strengthen Innovations

Add new platters

Plan out Outlet 5 year sales

projection and break even volume.

Define city’s brand universe or

potential customers.

GTM Strategy

Phase 3 Expand the Brand

within the City

Plan out expansion to reach City’s

total brand universe.

Expansion with in the City through

franchisee model.

Phase 4

Define franchisee strength and

business model.

Target Metro towns and

pitch VC/financial

institutions for investment.

Company formation, get full structure

in place; registration, MOUs and

team etc.

Design All India Business Model

and pay-out for Investors.

Investor pitching.

Concept Testing - Evaluation

Varanasi

(2015)

State – Uttar Pradesh

Town Type – Tier 2

Population – 17,35,177

pop growth rate – 3%

Households(HH) – 2,44,982

HH Size – 7 average

Universe – 3,60,917

% of population – 21%

Brand universe is the

potential consumers for this

brand.

(1st Year)

T/O – 6.7 lacs (value)

9 K + (volume)

Run rate - 3 units per hour

All innovations constitute

5% of total sales volume.

Fin

anci

als

T/O was completely

attributed to

Outlet visibility

Uniqueness

Word of mouth publicity

* No advertising or any branding was carried on 1st year.

City Brand Universe

* Source – Census 2001

Brand Universe (HH) is a projection of potential households as per living standard

method.

Consumers who genuinely consume branded goods due to several reasons and also

recommend brands to others once delighted with the brand they have consumed, fall in

LSM 7 – 11.

Potential customers set stands around 21% of total city population.

Business potentiality (min/month) - assumed 1% step in a month for once,

outlet business will reach 2.85 lacs

Sales Plan

Company Outlet T/O 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

Volume- Unit Sales 27,624 35912 53867 80801 121201 181802

Value- Units Sold ₹ 21,81,691 ₹ 28,36,199 ₹ 42,54,298 ₹ 63,81,447 ₹ 95,72,171 ₹ 1,43,58,256

Material Costing ₹ 9,65,019 ₹ 12,54,525 ₹ 18,81,787 ₹ 28,22,680 ₹ 42,34,020 ₹ 63,51,031

Rent/Infra Costing ₹ 5,40,000 ₹ 5,67,000 ₹ 5,95,350 ₹ 6,25,118 ₹ 6,56,373 ₹ 6,89,192

Staffs Salary ₹ 4,80,000 ₹ 4,80,000 ₹ 4,80,000 ₹ 4,80,000 ₹ 4,80,000 ₹ 4,80,000

Total Expenses ₹ 19,85,019 ₹ 23,01,525 ₹ 29,57,137 ₹ 39,27,798 ₹ 53,70,394 ₹ 75,20,223

Gross Income ₹ 1,96,673 ₹ 5,34,674 ₹ 12,97,161 ₹ 24,53,650 ₹ 42,01,777 ₹ 68,38,034

A&P Costing ₹ 4,36,338 ₹ 2,83,620 ₹ 2,12,715 ₹ 3,19,072 ₹ 95,722 ₹ 71,791

Net income ₹ -2,39,666 ₹ 2,51,054 ₹ 10,84,446 ₹ 21,34,577 ₹ 41,06,056 ₹ 67,66,243

Sales figures projected basis on actual data compiled for the period from Oct 2014 – Sep 2015.

Oct 2014 – Sep 2015 period witnessed a run rate of 3 units/hour without any advertising outlay,

strengthen the sales plan basis of doubling per hour units sales if proper advertising and

marketing efforts are carried on through out the year.

Detailed plan is available on the given link “5 years sales projection and bev analysis”.

• The sales plan subject to single outlet operating in a tier 2 town like Varanasi only.

Break Even Volume analysis

₹ -10,00,000

₹ -

₹ 10,00,000

₹ 20,00,000

₹ 30,00,000

₹ 40,00,000

₹ 50,00,000

₹ 60,00,000

₹ 70,00,000

₹ 80,00,000

1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

Outlet Net Income

Break even Year

Unit sale price 79

Unit material cost 35

Unit Rental cost 20

Unit staffing cost 17

Total Unit cost 72

Unit margin 7

BEV (Vol) 219817

• Unit margin stands out @ 10% of total unit cost.

• Hence keeping as low as possible (w/o

compromising on quality) the total unit cost will

help in improving the unit margin.

• Recipe consolidation to consume larger volume to

reduce vendor cost will decrease total unit cost.

• total unit cost is sum of unit material, unit rental and unit staffing cost.

• break even volume = cost of investment ÷ unit margin. Higher the denominator, sooner the break even volume.

Outlet Design

Expansion Model (with in town)

JUST ROLLS

Company Outlet

Varanasi

1st Franchisee

Network

Coordinator

2nd Franchisee

Network

Coordinator (if)

Appoin

tmen

t of

1st

Franchisee

2nd

Franchisee

3rd

Franchisee (if)

• Franchisee Network Coordinator will appoint Just Rolls franchisees in town against

mutually agreed terms & conditions.

• Franchisees will directly coordinate with Just Rolls for future transection and FNC will have

no interference there in.

Franchisee ROI

Franchisee Income 1st Year 2nd Year 3rd Year 4th Year 5th Year

Volume - Unit Sales 22791 27350 32820 39383 47260

Material Costing ₹ 7,96,187 ₹ 9,55,424 ₹ 11,46,509 ₹ 13,75,811 ₹ 16,50,973

Value of total unit sold ₹ 18,00,000 ₹ 21,60,000 ₹ 25,92,000 ₹ 31,10,400 ₹ 37,32,480

Commission on sales ₹ 1,80,000 ₹ 2,16,000 ₹ 2,59,200 ₹ 3,11,040 ₹ 3,73,248

Staffs salaries ₹ 2,40,000 ₹ 2,40,000 ₹ 2,40,000 ₹ 2,40,000 ₹ 2,40,000

Rent (if rented place) ₹ 2,40,000 ₹ 2,40,000 ₹ 2,40,000 ₹ 2,40,000 ₹ 2,40,000

Gross Income ₹ 3,43,813 ₹ 5,08,576 ₹ 7,06,291 ₹ 9,43,549 ₹ 12,28,259

Sales at franchisee outlet also depends upon the type of area and its easy accessibility for its

consumers. A high throughput area usually will result in given take off as shown in ROI. Unit

sales 1st year is calculated basis 5 units per hour only.

Material costing includes recipes @ per unit material cost that franchisee purchases from Just

Rolls outlet and cost of other materials that franchisee arranges on itself.

Commission on sales is worked out @ 10% to be paid (qtr./six month/year) to Just Rolls outlet.

Cost of Investment (Just Rolls Outlet)

Costing related to location Rs. 3,15,000/-

(Cost is assumed basis prevalent market rate for

Required sq. ft. area)

Costing related to set up format Rs. 7,25,000/-

Cost of kitchen equipment Rs. 2,00,000/-

Cost of interior design Rs. 2,00,000/-

Cost of branding elements Rs. 1,00,000/-

Cost of Durables purchase Rs. 2,00,000/-

Cost of Gas connection Rs. 25,000/-

Costing related to Advertising & Promotion Rs. 5,25,000/-

Launch Advertising Rs. 3,00,000/-

Paper inserts Rs. 25,000/-

BTL promotion Rs. 2,00,000/-

Total cost of investment Rs. 15,65,000/-

• Above costing is subject to tier 2 towns like Varanasi city only.

Everything is easy

when you crazy about it!

Nothing is easy

When you lazy about it.

Thank You

for business enquiry write to Somen Banerjee

E-mail: hi_somen@rediffmail.com

somen22111980@rediffmail.com