UID: IIMP/CURIOUS/2017/051
CURIOUS 2017 CASE STUDY COMPETITION
SWOT Analysis of Ganesh Bhel
 India’s first Bhelpuri business organization to
have ISO 9001:2008 certification.
 An organization with deep Puneri heritage (established
player in the Paani Puri Industry since 1978).
 Specific emphasis on Hygiene, Taste, Customer experience, usage
of IT ERP
 Wide assortment of traditional Bhel products, Dabeli, Paani Puri
and other snack items like sandwiches etc.
 Strong tie up with Corporate Clients like Cognizant
technologies and Marriott.
 Strong network of retail outlets across Pune and
availability of packaged Bhel products.
SWOT
 Portfolio of Corporate Clients needs to
grow to achieve Volume sales. Key accounts
need to grow to ensure consistent growth.
 Retail outlets of Ganesh Bhel are not up to the mark of other
QSR competitors like Kalyan Bhel, Haldiram’s, Goli
Vadapav etc.
 Ratings of Ganesh Bhel particularly the Nigdi, Karve Nagar
outlets are 2.7 & 3.3 / 5 respectively on Zomato. This does
not reflect well on the Ganesh Bhel brand and customer
experience.
SWOT
 Product assortment of Take home packs (SKU’s) is
particularly bad and is unable to meet demand.
 Huge opportunity to grow packaged Bhel business
outside Pune through online/offline channels.
SWOT
 To evolve into a true QSR outlet on a pan India scale
on the lines of Goli Vadapav, Haldiram’s, Bikanerwala.
Pan-India Expansion through adoption of Franchise model.
 Significantly expand online food delivery business through
integrated tie-ups with Swingy, Foodpanda, Zomato, Faasos,
Runnr etc.
 Opportunity to build a pan-India brand through concerted
Branding efforts
 Opportunity to further make a dent in the Savoury snack market
which is expected to grow at 12% CAGR from 2016-2021.
SWOT
 Intense competition from other established players
like Kalyan Bhel, Haldiram's, Bikanerwala etc.
 Corporate Accounts with in-House product and private
labels threaten to disrupt the market.
 Market is very fragmented. Emergence of other players like Maiyas
Food products, Prakash food products, Lakshmi food product and
other local players make the savoury snack market intensely
competitive.
 Competitive Pricing is going to be a challenge due to
price volatility in the raw material purchase.
Going forward we have suggested the ways and plan regarding how we can capitalize
on the opportunities and reduce the weakness and threat. We suggest to focus on the
service part of Ganesh Bhel as an emerging QSR, while maintaining the high
standards of product quality.
When it comes to QSR we come across a lot of GAPs. While we visited the outlets of
Ganesh Bhel at Pimple Saudagar, Aundh and Nigdi we got to know about the
following services gaps:
GAP Model Analysis of Ganesh Bhel
Gap between consumer
expectation and
management perception
Gap 1
*Customer want to spend
time with friends and family
besides eating, more focus on
service is needed
*They want Good Ambience
(Quirky Ambience) with WiFi and soft music which lacks
at our outlets
*They want to go to the
restaurant that is famous and
promote itself actively
Gap between management
perception and service
quality specification
Gap 2
*No clear guidelines on
Service parameters (KPIs) to
be followed
*Poor Perception about our
restaurant needs to be
improved on social media (e.g.
2.1 rating on Zomato, Nigdi
Outlet)
11Customer engagement is not
up to the mark. QSR like
Burger King and MacDonald's
have set a standard in customer
engagement
Gap between service
quality specification
and service delivery
Gap between service
delivery and external
communicate on
Gap 4
Gap 3
*Ganesh Bhel has projected
itself as the Iconic Brand of
Pune which provides quality
products.
*Staff is not well trained, as a
result it severely hampers the
experience of customers
*Lack of product quality,
customers have mentioned that
they have tasted better Bhel,
Pani Puri at other restaurants
*ISO certification again raises
the expectation of customers in
terms of product quality, but
their expectations are not met
*Customers link ambience with
the money they are charged, so
they find Ganesh Bhel as costly
*Promises the service of a
QSR but lacks in infrastructure
in Service quality
Gap between expected
service and experienced
service
Gap 5
*Customer expects benefits of
a QSR (on the line of Kalyan
Bhel or Haldiram’s) form
Ganesh Bhel, but they don’t
find it.
*Customer wants highly
customized product the likes
of what they get at Kalyan
Bhel.
*Customers wants the staff to
be professional and friendly,
which they don’t get at times.
Challenges faced by Ganesh Bhel
Strategy for Ganesh Bhel
4 Strategic Pillars
Customer
Experience
Taste & Quality
Product
Assortment
Strong Branding
Industry
Attractiveness
GE-Mckinsey Matrix to Decide Priority of Investments
Packaged
Bhelpuri /
Savoury
Snacks
Online
Delivery
model
Franchise
Model
Corporate
Business
Tie-ups
QSR
Outlet
Delivery
Model
Priority for investment /
attractiveness:
High
Medium
Low
Competitive Strength of Business
Unit
Key Service and Product Fundamentals for Ganesh Bhel
P
A
R
A
M
E
T
E
R
S
Quality Training
Process Standardization
Service Fundamentals
Use of technology
Store Ambience
Store Layout Standard
TQM, Kaizen
Product Fundamentals
Customer Experience
Customer Orientation
Product Assortment
Growth Avenues for Ganesh Bhel
Online Delivery Model
Expansion
Sell Products on
Ecommerce Platforms
Increase Product
Assortment
Increase QSR Outlets
Growth Avenues
Marketing Campaigns
Corporate Partnerships
Packaged Bhel Products
Expanding Catering
Services
Strategy to increase sales through online ecommerce
Convenience Buyers
Working Population
Target Customers
Pan-India Customers
NRI Customers
Five step process
1
2
Packaged Bhel products to be
made widely available at
outlets like Big Bazaar, DMart, Megamore Outlets etc.
Ensure availability at Mom
and Pop outlets to widen the
reach and tap the market
3
Packaged Bhel products to be
sold on ecommerce platforms
like Amazon / Amazon Now,
Snapdeal Grocery under the
snack category.
4
Listing of products on sites like
flavourofmycity, sweetsinbox
etc. which specifically sell
popular delicacies from all over
India to customers within India
as well as abroad.
Tie up with hyperlocal
services like Grofers,
Bigbasket etc. to target
working population who have
specific affinity for packaged
ready to eat products.
5
Ganesh Bhel can also open the
sale of products globally
through Amazon Global, EBay
Global, iShip etc. to cater to the
NRI community who crave for
these products.
Growth Avenues | Detail
1 Week Training
Program Contents
Strategy to increase sales through Increased QSR outlets
2
1
3
Existing QSR outlets of
Ganesh Bhel to be renovated
in order to offer modern QSR
facilities. Store Ambience is a
key aspect to provide
superior customer experience
Existing QSR staff to be
trained in customer service &
delivery through corporate
training exercises. Any new
staff recruited should
mandatorily undergo 1-week
training program specifically
devised for Ganesh Bhel. All
employees to undergo
rigorous quality training.
Specific emphasis on
maintaining hygiene
throughout the store outlet.
Store to be equipped with
Self – dispose dustbins,
auto wash basins etc.
Special emphasis given to
food packaging and
freshness
Store Ambience
Staff Training
Store Cleanliness
4
5
All QSR outlets to become digital payment
enabled. Tie ups with payment wallets like
PayTM, Mobikwik, Freecharge, Ola Money
to provide ease of access for payments.
Payments should also be UPI enable to
further enhance ease of Access.
Rapid expansion of QSR outlets from
current 6 to 12 in the FY 2018 (in Pune).
Allow expansion through franchise model
for rapid scale up of QSR outlets. Pan-India
expansion facilitated through franchise
model.
In store Payments
Store Expansion
Customer Acquisition/Retention through increased QSR Outlets
flowchart
Competition
Customers
Target
Customers
Existing
customers
New Customers
Lure customers of
competition like Kalyan
Bhel, Haldiram's,
Bikanerwala etc. through
superior customer
experience & taste.
Increase reach through
Retain existing customers
by providing superior
service standards on a
consistent basis. Address
customer grievances and
suggestions with utmost
importance & priority.
Acquire new customers
through in store
campaigns. Aggressive
acquisition of new
customers through online
channel.
Sales growth through online food delivery portals
Food
Delivery
Portals
 Extensive sale of entire product
assortment through online food
portals like Foodpanda, Swiggy,
Runnr & Zomato. Online
promotions on these sites to lure
new customers.
 Expanding product assortment
via exclusive only menu for
online customers.
 Specific promotions for repeat
customers
like
exclusive
discounts, gift vouchers etc.
Phone
Ordering
 Provide phone-ordering
services to customers within 5mile radius directly through
store outlet.
 Delivery of packaged Bhel
products directly through the
store outlet to customers within
5-mile radius.
Expansion of Product menu to cater to varied needs of the customer
Core Products
Side Products
Traditional Bhel
products
Additional Menu
Paani Puri
Milkshakes
Bhel Puri
Ragda Puri
Dahi Puri
Smoothies
Natural Fruit drinks
Dabeli
Packaged Ice
Creams
Sandwiches
Cold Drinks
 Side products are extremely
essential to today’s QSR
restaurant.
 These are high margin & fast
selling products.
 Extremely essential to provide
one stop shop for all their
consumption.
Partnership and Other Services
Corporate
Partnerships
Partner with executive
restaurant chains
Partnership with Corporate
clients (IT)
Tie ups with educational
institutions spread across Pune
Catering / Party
service Business
Catering services for small
gatherings
Catering for various
ceremonies
Catering at various festive
events
Catering for Birthday Parties
Ganesh Bhel needs to establish a vision where Corporate Accounts
/ Catering business contribute to at least 30-35% of the overall
revenues by FY 2019.
Key Organizational Change Required for catering to B2B business
CEO
Key Account
Managers
Business Development
Managers
These changes has to be done to cater to B2B business.
 In the next 2-3 years’ corporate partnerships and Catering/Party
service business is going to contribute significantly to the overall
revenues of Ganesh Bhel hence it is essential that the
organizational structure is conducive to rapid growth.
 At the lowest level Business Development Managers would be
required to scout potential business clients and engage in a
discussion with them. Key account managers would be handling
key corporate clients and would be directly working under the
CEO.
Expansion Plan for Ganesh Bhel
Pan India Expansion Plan
25
Pan India Franchise
Outlets by FY 2019
Franchise Model
Pan India expansion of Ganesh Bhel:
Jaipur
Ahmedabad
Delhi
Indore
Surat
Mumbai
Nasik
Bhopa
l
Pune
Bangalore
Legend
Phase – I Franchise
Expansion
Phase – II Franchise
Expansion
Key Primary States
Key Secondary States
Owned QSR Outlet
Expanding on Franchise Model | Franchise Expansion Phase
Primary Research | Competitor Benchmarking
imary Research
Total customer surveyed: 90,
Average of their responses is mentioned in the rows
Marketing of Ganesh Bhel:
We want to project Ganesh Bhel as #AuthenticPune, we want to relate Ganesh Bhel
with the rich history of Pune in particular and Maharashtra as a whole. We want to
make Ganesh Bhel a brand that is a must visit for every Punekar and for all those who
come to visit Pune.
Our Integrated Marketing Campaign will revolve around #AuthenticPune tag line
Marketing Campaigns
1): Online
2): Offline
#Campaign 1
Snack Partner of Puneri Paltan or Pune F.C – league
Description: Become Official Snack Partner for sporting teams connected with Pune,
Intensive campaigning through both Offline and Online Mediums, Associating
Ganesh Bhel as Pune's iconic
Mediums of Promotion: Stadiums, Venues, Promotion booths, Store Outlets,
FB/Twitter/Instagram Channels, Fan Meets,
#Campaign 2
Advertising Campaigns with thepunekar.com, foodprowl.com, TripAdvisor, Zomato
Punekar.com
TripAdvisor
Zomato | Giving featured ads and banner ads
Description: Advertising on Portals advising must visit places for Pune and specific
blogs about Pune eateries
Mediums: Online Blogs, Food Recommendations Portals, must visit places list.
#Campaign 3
Recommendations by some of the influencers like Amita Gadre Kelkar etc.
Description: Usage of Influencers for Food Recommendations, must visit places list.
#Campaign4
Promoting the packaged Bhel products from Ganesh Bhel
Description: Setting up Facebook / Instagram
foodie groups where curated posts about
different usage of Ganesh Bhel is posted.
People can also share their favourite usage of
packaged Bhel recipes,
#Campaign5
Viral Instore campaigns (#ThePaaniPuri Challenge)
Description: Viral campaign on the lines of the burger challenge by Burger Barn
F.C Road. People have to finish X no. of Paani Poories in X minutes/seconds. If they
are able to beat the current
Medium: Exclusively at Ganesh Bhel Store Outlets
#Campaign6
Short TV ads on Regional Channels like Sakal Times
#Campaign7
Online Opinion poll
Description: As a part of social
campaign, we will host an online quiz
asking people of Pune their opinion
on the same, it will be more of an
opinion poll by which will plan to
create visibility, customer engagement
and plan to project Ganesh Bhel as a
responsible brand that cares for Pune
#Authentic Pune
#Campaign8
Branding and associating Ganesh Bhel with big Pune Festivals
#Campaign9
Snapchat: A 2 min ephemeral video regarding different snack recipe, it
will help customer engagement and pulling in millennials customers.
#Campaign10
Mural and Graffiti: Collaborating with PMC to put Graffiti and Murals
near heritage site of Pune, so that people could relate Ganesh Bhel with a
rich heritage of Pune
#Campaign11
Check-in Discount: If customer check in on their FB page that they are
eating at Ganesh Bhel they will get 10% discount
Financials
P&L Projections of Ganesh Bhel QSR Outlet for FY 18-20.
Parameter
P&L (Per QSR Store Projection)
FY 2017
FY 2018
FY 2019
FY 2020
Daily Sale (in Units)
125
138
151
166
Unit Price
50
55
55
60
Total Daily Sales (in Rs /-)
Total Monthly Sales (in Rs /-)
6250
187500
7562.5
226875
8318.75
249562.5
9982.5
299475
Total Salary Expenses
65000
69550
74766.25 80747.55
Average Rent Expenses
25000
26750
28890
31490.1
Other Overheads
8000
9100.21
9372.46
10481.63
Average Wastage
Raw Material Cost
Total Cost
9375
22500
129875
10587.5 10814.38
11979
28368.45 32515.92 40657.9
144356.2 156359 175356.2
Net Profit (per month / per
store)
57625
82518.84
93203.5
124118.8
Net Profit / Year / per store
691500
990226
1118442
1489426
Investment / QSR Store
1400000
2-2.3
years
Operational Expenses
Payback Period (with Interest)
Assumptions used for P&L Projections
Parameter
Daily Sale growth (%)
Projection Assumptions (per QSR Store)
FY 2017 FY 2018 FY 2019 FY 2020
N.A
10.00%
10.00% 10.00%
Remarks
Daily Sale growth is assumed to
be 10% from FY 2018-2020
Unit Price
50
55
55
60
2 year cycle for price rise of 5/per Bhel Puri Unit is considered
Offline Sales / Total Sales (%)
Online Sales / Total Sales (%)
Average Salary Expenses growth (%)
90%
10%
N.A
85.00%
15.00%
7.00%
75.00%
25.00%
7.50%
70.00%
30.00%
8.00%
Bifurcation of Online to Offline
Sales for Ganesh Bhel Products
Growth in Rent Expense (%)
N.A
7.00%
8.00%
9.00%
Other Overheads / Sales (%)
4.27%
4.01%
3.76%
3.50%
Average Wastage / Sales (%)
5.00%
4.67%
4.33%
4.00%
4.20%
4.20%
4.20%
12.50%
13.03%
13.58%
Raw Material Cost increase (%)
Raw Material Cost / Sales (%)
12.00%
Average Investment / Store (as
suggested by Author)
10-15
Lakhs
Our Suggested Investment / Store
14-18
Lakhs
Average Salary hike from FY
2018-2020 (capped by GDP
Growth)
Average hike in rent expenses
from FY 2018-2020 (capped by
GDP growth)
Average Overhead expenses
are expected to be reduced
from 4.27% of Sales in FY 18 to
3.5% of Sales as result of
adoption of TQM, Kaizen
principles
Average wastage (%) is also
expected to be reduced from
5% of Sales in FY 18 to 4% of
Sales in FY 2020.
Raw Material Cost is capped at
the CPI Inflation rate for Long
term
Comparison of Key Performance Ratios of Ganesh Bhel and Kalyan
Bhel
Current Parameters (per QSR Store) (FY 2017)
Parameters
Ganesh Bhel
Kalyan Bhel
Salary Expenses / Total Sales
34.67%
38.33%
Overhead Expenses / Total Sales
4.27%
4.44%
Rent Expenses / Total Sales
13.33%
13.89%
Average Wastage / Total Sales
5.00%
5.00%
Raw Material Expenses / Total Sales
12.00%
12.00%
Total Expenses / Total Sales
69.27%
73.67%
Net Profit Margin (PAT Margin)
30.73%
26.33%
Marketing Budget Outlay FY 2018
Marketing Campaign Budget
Offline Campaigns
Advertising @Pune Railway Station
Advertising @ Heritage Places in Pune
Merchandising Partnership with Sports Teams
Advertising Campaign in Malls / Stores
Miscellaneous Costs
Total Cost for Offline Campaigns
Online Campaigns
Facebook / Twitter / Instagram / YouTube
Prizes / Gift Vouchers / Promotions
Total Cost for Online Campaigns
Total Marketing & Advertising Costs
4 lakhs
2 lakhs
8 lakhs
3 lakhs
4 lakh
21 lakhs
1 lakh
2 lakhs
3 lakhs
24 lakhs
Comparison of Ganesh Bhel vs Kalyan Bhel Per Store Profits
Current Parameters (per QSR Store) (FY 2017)
Parameters
Ganesh Bhel
Kalyan Bhel
Daily Sale (in Units)
125
120
Unit Price
50
50
Total Daily Sales (in Rs /-)
6250
6000
Total Monthly Sales (in Rs /-)
187500
180000
Operational Expense
Average No. of Employees
No. of Outlet Head
Average Employee Salary
Store Manager Salary
Average Rent (350-400 sqft.)
Other Overheads
Average wastage
Total Operational Cost
8
1
7000
9000
25000
8000
9375
107375
8
1
7500
9000
25000
8000
9000
111000
Raw Material Cost
Total Cost
22500
129875
21600
132600
57625
47400
Net Profit