Case Study Notes | EduRev

: Case Study Notes | EduRev

 Page 1


 
  
Case Study 
Competition 
Round 1 
 Competi fy_Edu rev
[Type the abstract of the document here. The abstract is typically a short summary of the 
contents of the document. Type the abstract of the document here. The abstract is 
typically a short summary of the contents of the document.] 
 
Page 2


 
  
Case Study 
Competition 
Round 1 
 Competi fy_Edu rev
[Type the abstract of the document here. The abstract is typically a short summary of the 
contents of the document. Type the abstract of the document here. The abstract is 
typically a short summary of the contents of the document.] 
 
Raghav, a young entrepreneur has taken a bold step venturing into the restaurant business with a 
product that many people have not used as yet i.e. fresh Indian food. With initial success of the 
business model, he took a bold step and invested in 2 new stores, but it failed miserably. This 
happened primarily due to the following factors 
? Emergence of Fast Food Scene 
It has been mentioned that the fast food scene emerged recently, pulling away a major 
target group (the students) as the fast food products are usually cheaper, take less time to 
process and are also tasty. 
? Accusations 
Various accusations and criticism has been pointed at Ghar ka Khana. These include 
comment by a food critic about uninspired dishes being cooked. Also, the quality of food 
has been slammed at repeated instances 
? Human Resource Problems 
A motivated workforce is supposed to be an organization’s key to success. However, 
since the workers have not been paid, their dissatisfaction is clearly visible with people 
complaining about discourteous behavior of the waiters. 
Following is a SWOT analysis of the business. This would help us analyse the basic problems 
being faced by Ghar ka Khana and help us solve it 
SWOT ANALYSIS 
STRENGTHS 
? A good quality product that is required 
in the market. 
? A good connect with office goers and a 
well-defined target audience 
WEAKNESSES 
? Poor positioning and marketing  
? Imperfect customer relationship 
management 
? Simple and allegedly “uninspired” 
food. 
OPPORTUNITIES 
? Catering to new target audiences  
? Exploring other distribution options 
like buffets, tiffin system, etc 
THREATS 
? Dissatisfied workforce might cause 
management and communication 
problems 
? Growing popularity of fast food 
? Messes and Canteens 
 
  
Based on this analysis, it is possible to conclude that Raghav has targeted a wrong Target Group 
and has positioned his product in a wrong manner 
Following corrections with respect to targeting and positioning need to be made 
? Targetting 
Page 3


 
  
Case Study 
Competition 
Round 1 
 Competi fy_Edu rev
[Type the abstract of the document here. The abstract is typically a short summary of the 
contents of the document. Type the abstract of the document here. The abstract is 
typically a short summary of the contents of the document.] 
 
Raghav, a young entrepreneur has taken a bold step venturing into the restaurant business with a 
product that many people have not used as yet i.e. fresh Indian food. With initial success of the 
business model, he took a bold step and invested in 2 new stores, but it failed miserably. This 
happened primarily due to the following factors 
? Emergence of Fast Food Scene 
It has been mentioned that the fast food scene emerged recently, pulling away a major 
target group (the students) as the fast food products are usually cheaper, take less time to 
process and are also tasty. 
? Accusations 
Various accusations and criticism has been pointed at Ghar ka Khana. These include 
comment by a food critic about uninspired dishes being cooked. Also, the quality of food 
has been slammed at repeated instances 
? Human Resource Problems 
A motivated workforce is supposed to be an organization’s key to success. However, 
since the workers have not been paid, their dissatisfaction is clearly visible with people 
complaining about discourteous behavior of the waiters. 
Following is a SWOT analysis of the business. This would help us analyse the basic problems 
being faced by Ghar ka Khana and help us solve it 
SWOT ANALYSIS 
STRENGTHS 
? A good quality product that is required 
in the market. 
? A good connect with office goers and a 
well-defined target audience 
WEAKNESSES 
? Poor positioning and marketing  
? Imperfect customer relationship 
management 
? Simple and allegedly “uninspired” 
food. 
OPPORTUNITIES 
? Catering to new target audiences  
? Exploring other distribution options 
like buffets, tiffin system, etc 
THREATS 
? Dissatisfied workforce might cause 
management and communication 
problems 
? Growing popularity of fast food 
? Messes and Canteens 
 
  
Based on this analysis, it is possible to conclude that Raghav has targeted a wrong Target Group 
and has positioned his product in a wrong manner 
Following corrections with respect to targeting and positioning need to be made 
? Targetting 
With failure of the new outlets of the business, it is evident that students may not be the 
optimum target market for this product. As mentioned, the product is extremely popular 
among the office goers, who should be the primary target market of Ghar ka Khana. 
However, other target audiences should still be focused on and not exited completely. 
 
? Positioning 
The product needs to be carefully positioned as a premium product for the office goers. 
Since their disposable incomes are high and they usually focus on quality products over 
price, the product quality needs to be positioned as premium and worthy of corporate 
goer, while at the same time, maintaining the earthy and homely taste that initially made 
the product popular. 
 
The Action Plan 
It is pretty evident that the current Marketing Mix is extremely faulty, which has led to a terrible 
fail of the product at various stages. Following is the marketing mix I recommend as a strategy 
consultant that also involves modifications in the B Plan? 
Product 
As mentioned in the above segment about positioning, the product needs to be modified to be 
suited to the new focus group, i.e. the office goers. A variant of this product can also be used to 
appeal to outstation students as a target group 
? Packaged versions of the food need to be made available. This would include designing 
of an attractive package, which highlights the benefits of the Fresh Food, explaining the 
nutrient content of the dishes, thereby using it as a marketing tool. 
? A new vertical of office tiffin system can be introduced, where inspired by the 
Dabbawalas system of Mumbai, fresh “Ghar ka khana” can be provided to busy office 
goers or outstation on a subscription basis (ensuring a regular cash flow). This would 
provide the advantage of superseding mess and canteens as possible competitors and 
would ensure that the customer waits for the product at his desk without thinking about 
going outside the office/hostel for a meal, thereby sealing the deal. 
? Collaborations with Canteens and messes at both colleges and schools can also be 
looked upon as a possible alternative, where the popular “buffet system” can be used to 
attract crowd. 
Price 
As mentioned above, the pricing of the product has to be in tandem with its positioning, i.e. the 
prices of the food products have to be placed in a mildly premium manner in order to apply the 
strategy of skimming in an appropriate manner and also increase revenue generation in the 
initial phase of the revamp of the business model. 
Page 4


 
  
Case Study 
Competition 
Round 1 
 Competi fy_Edu rev
[Type the abstract of the document here. The abstract is typically a short summary of the 
contents of the document. Type the abstract of the document here. The abstract is 
typically a short summary of the contents of the document.] 
 
Raghav, a young entrepreneur has taken a bold step venturing into the restaurant business with a 
product that many people have not used as yet i.e. fresh Indian food. With initial success of the 
business model, he took a bold step and invested in 2 new stores, but it failed miserably. This 
happened primarily due to the following factors 
? Emergence of Fast Food Scene 
It has been mentioned that the fast food scene emerged recently, pulling away a major 
target group (the students) as the fast food products are usually cheaper, take less time to 
process and are also tasty. 
? Accusations 
Various accusations and criticism has been pointed at Ghar ka Khana. These include 
comment by a food critic about uninspired dishes being cooked. Also, the quality of food 
has been slammed at repeated instances 
? Human Resource Problems 
A motivated workforce is supposed to be an organization’s key to success. However, 
since the workers have not been paid, their dissatisfaction is clearly visible with people 
complaining about discourteous behavior of the waiters. 
Following is a SWOT analysis of the business. This would help us analyse the basic problems 
being faced by Ghar ka Khana and help us solve it 
SWOT ANALYSIS 
STRENGTHS 
? A good quality product that is required 
in the market. 
? A good connect with office goers and a 
well-defined target audience 
WEAKNESSES 
? Poor positioning and marketing  
? Imperfect customer relationship 
management 
? Simple and allegedly “uninspired” 
food. 
OPPORTUNITIES 
? Catering to new target audiences  
? Exploring other distribution options 
like buffets, tiffin system, etc 
THREATS 
? Dissatisfied workforce might cause 
management and communication 
problems 
? Growing popularity of fast food 
? Messes and Canteens 
 
  
Based on this analysis, it is possible to conclude that Raghav has targeted a wrong Target Group 
and has positioned his product in a wrong manner 
Following corrections with respect to targeting and positioning need to be made 
? Targetting 
With failure of the new outlets of the business, it is evident that students may not be the 
optimum target market for this product. As mentioned, the product is extremely popular 
among the office goers, who should be the primary target market of Ghar ka Khana. 
However, other target audiences should still be focused on and not exited completely. 
 
? Positioning 
The product needs to be carefully positioned as a premium product for the office goers. 
Since their disposable incomes are high and they usually focus on quality products over 
price, the product quality needs to be positioned as premium and worthy of corporate 
goer, while at the same time, maintaining the earthy and homely taste that initially made 
the product popular. 
 
The Action Plan 
It is pretty evident that the current Marketing Mix is extremely faulty, which has led to a terrible 
fail of the product at various stages. Following is the marketing mix I recommend as a strategy 
consultant that also involves modifications in the B Plan? 
Product 
As mentioned in the above segment about positioning, the product needs to be modified to be 
suited to the new focus group, i.e. the office goers. A variant of this product can also be used to 
appeal to outstation students as a target group 
? Packaged versions of the food need to be made available. This would include designing 
of an attractive package, which highlights the benefits of the Fresh Food, explaining the 
nutrient content of the dishes, thereby using it as a marketing tool. 
? A new vertical of office tiffin system can be introduced, where inspired by the 
Dabbawalas system of Mumbai, fresh “Ghar ka khana” can be provided to busy office 
goers or outstation on a subscription basis (ensuring a regular cash flow). This would 
provide the advantage of superseding mess and canteens as possible competitors and 
would ensure that the customer waits for the product at his desk without thinking about 
going outside the office/hostel for a meal, thereby sealing the deal. 
? Collaborations with Canteens and messes at both colleges and schools can also be 
looked upon as a possible alternative, where the popular “buffet system” can be used to 
attract crowd. 
Price 
As mentioned above, the pricing of the product has to be in tandem with its positioning, i.e. the 
prices of the food products have to be placed in a mildly premium manner in order to apply the 
strategy of skimming in an appropriate manner and also increase revenue generation in the 
initial phase of the revamp of the business model. 
However, it needs to be made sure that the pricing is not at so high a premium that the other 
target markets including the outstation students and school students. 
Place 
The current scenario of physical distribution and location are not very conducive for the current 
business model to be successful. Modifications need to be made in this phase to make the 
business profitable. 
? The business needs to be harvested (phased out) from the existing location in 
Janakpuri. A store must be opened at Cyber Hub in Gurgaon which is the hub for the 
primary target audience of Ghar ka Khana. A distribution centre needs to be incprporated 
in this outlet for the packed food vertical 
? At the same time, the stores purchased near the college needs to be divested from 
immediately as they are Non-Performing Assets for Raghav. One store needs to be 
purchased near the Hostel and PG areas, which would primarily serve as a distribution 
cum dine in place for Ghar ka Khana 
? Raghav should currently focus only on the restaurant and tiffin verticals. Though the 
canteen and mess vertical is viable, he should enter that domain once this phase of the 
revamp is successful 
Promotion 
Promotion needs to be extensively worked upon in order to make the new business model 
successful. Following needs to be done 
? As aforementioned, packaging can be used a marketing tool, and the nutritional value 
can be used in order to market the product among the studying and working people who 
usually do not find time to work towards increasing their health. 
? Guerilla Marketing can be used as an effective marketing tool among the students, and 
measures such as pamphlets, posters etc. can be brought to use for the same. 
? Extensive Social Media marketing needs to be focused upon as majority percentage of 
the target market is immensely active there. Use of portals like Zomato and Facebook can 
be made in order to spread awareness about Ghar ka Khana and popularize consumption 
of healthy food in general as well. 
? Ghar ka Khana can associate with various campaigns for healthy eating habits which 
would ensure good publicity and enhance the Corporate Image. 
? Introduction of a concept of “Meal of the Day” where one specific dish is marketed 
aggressively marketed on each day of the week and sold at discounted prices. 
Cost and Revenue 
All these measures are bound to push up the cost. While some amount of money can be recovered by 
divesting and harvesting of existing fixed investment, some amount can be raised through Private Equity 
Page 5


 
  
Case Study 
Competition 
Round 1 
 Competi fy_Edu rev
[Type the abstract of the document here. The abstract is typically a short summary of the 
contents of the document. Type the abstract of the document here. The abstract is 
typically a short summary of the contents of the document.] 
 
Raghav, a young entrepreneur has taken a bold step venturing into the restaurant business with a 
product that many people have not used as yet i.e. fresh Indian food. With initial success of the 
business model, he took a bold step and invested in 2 new stores, but it failed miserably. This 
happened primarily due to the following factors 
? Emergence of Fast Food Scene 
It has been mentioned that the fast food scene emerged recently, pulling away a major 
target group (the students) as the fast food products are usually cheaper, take less time to 
process and are also tasty. 
? Accusations 
Various accusations and criticism has been pointed at Ghar ka Khana. These include 
comment by a food critic about uninspired dishes being cooked. Also, the quality of food 
has been slammed at repeated instances 
? Human Resource Problems 
A motivated workforce is supposed to be an organization’s key to success. However, 
since the workers have not been paid, their dissatisfaction is clearly visible with people 
complaining about discourteous behavior of the waiters. 
Following is a SWOT analysis of the business. This would help us analyse the basic problems 
being faced by Ghar ka Khana and help us solve it 
SWOT ANALYSIS 
STRENGTHS 
? A good quality product that is required 
in the market. 
? A good connect with office goers and a 
well-defined target audience 
WEAKNESSES 
? Poor positioning and marketing  
? Imperfect customer relationship 
management 
? Simple and allegedly “uninspired” 
food. 
OPPORTUNITIES 
? Catering to new target audiences  
? Exploring other distribution options 
like buffets, tiffin system, etc 
THREATS 
? Dissatisfied workforce might cause 
management and communication 
problems 
? Growing popularity of fast food 
? Messes and Canteens 
 
  
Based on this analysis, it is possible to conclude that Raghav has targeted a wrong Target Group 
and has positioned his product in a wrong manner 
Following corrections with respect to targeting and positioning need to be made 
? Targetting 
With failure of the new outlets of the business, it is evident that students may not be the 
optimum target market for this product. As mentioned, the product is extremely popular 
among the office goers, who should be the primary target market of Ghar ka Khana. 
However, other target audiences should still be focused on and not exited completely. 
 
? Positioning 
The product needs to be carefully positioned as a premium product for the office goers. 
Since their disposable incomes are high and they usually focus on quality products over 
price, the product quality needs to be positioned as premium and worthy of corporate 
goer, while at the same time, maintaining the earthy and homely taste that initially made 
the product popular. 
 
The Action Plan 
It is pretty evident that the current Marketing Mix is extremely faulty, which has led to a terrible 
fail of the product at various stages. Following is the marketing mix I recommend as a strategy 
consultant that also involves modifications in the B Plan? 
Product 
As mentioned in the above segment about positioning, the product needs to be modified to be 
suited to the new focus group, i.e. the office goers. A variant of this product can also be used to 
appeal to outstation students as a target group 
? Packaged versions of the food need to be made available. This would include designing 
of an attractive package, which highlights the benefits of the Fresh Food, explaining the 
nutrient content of the dishes, thereby using it as a marketing tool. 
? A new vertical of office tiffin system can be introduced, where inspired by the 
Dabbawalas system of Mumbai, fresh “Ghar ka khana” can be provided to busy office 
goers or outstation on a subscription basis (ensuring a regular cash flow). This would 
provide the advantage of superseding mess and canteens as possible competitors and 
would ensure that the customer waits for the product at his desk without thinking about 
going outside the office/hostel for a meal, thereby sealing the deal. 
? Collaborations with Canteens and messes at both colleges and schools can also be 
looked upon as a possible alternative, where the popular “buffet system” can be used to 
attract crowd. 
Price 
As mentioned above, the pricing of the product has to be in tandem with its positioning, i.e. the 
prices of the food products have to be placed in a mildly premium manner in order to apply the 
strategy of skimming in an appropriate manner and also increase revenue generation in the 
initial phase of the revamp of the business model. 
However, it needs to be made sure that the pricing is not at so high a premium that the other 
target markets including the outstation students and school students. 
Place 
The current scenario of physical distribution and location are not very conducive for the current 
business model to be successful. Modifications need to be made in this phase to make the 
business profitable. 
? The business needs to be harvested (phased out) from the existing location in 
Janakpuri. A store must be opened at Cyber Hub in Gurgaon which is the hub for the 
primary target audience of Ghar ka Khana. A distribution centre needs to be incprporated 
in this outlet for the packed food vertical 
? At the same time, the stores purchased near the college needs to be divested from 
immediately as they are Non-Performing Assets for Raghav. One store needs to be 
purchased near the Hostel and PG areas, which would primarily serve as a distribution 
cum dine in place for Ghar ka Khana 
? Raghav should currently focus only on the restaurant and tiffin verticals. Though the 
canteen and mess vertical is viable, he should enter that domain once this phase of the 
revamp is successful 
Promotion 
Promotion needs to be extensively worked upon in order to make the new business model 
successful. Following needs to be done 
? As aforementioned, packaging can be used a marketing tool, and the nutritional value 
can be used in order to market the product among the studying and working people who 
usually do not find time to work towards increasing their health. 
? Guerilla Marketing can be used as an effective marketing tool among the students, and 
measures such as pamphlets, posters etc. can be brought to use for the same. 
? Extensive Social Media marketing needs to be focused upon as majority percentage of 
the target market is immensely active there. Use of portals like Zomato and Facebook can 
be made in order to spread awareness about Ghar ka Khana and popularize consumption 
of healthy food in general as well. 
? Ghar ka Khana can associate with various campaigns for healthy eating habits which 
would ensure good publicity and enhance the Corporate Image. 
? Introduction of a concept of “Meal of the Day” where one specific dish is marketed 
aggressively marketed on each day of the week and sold at discounted prices. 
Cost and Revenue 
All these measures are bound to push up the cost. While some amount of money can be recovered by 
divesting and harvesting of existing fixed investment, some amount can be raised through Private Equity 
or Debt. Following are the financials that depict how the business is supposed to perform in the coming 
years. 
 
(The business is expected to make losses in the initial 2 years due to lack of cash inflows) 
All these measures mentioned above can be used by Raghav in order to make his venture 
“Ghar ka Khana” a success. However, with an entrepreneurial spirit, he should not stop 
here and continuously work towards making his business a force to be reckoned with 
Following are some of the expansion and diversification strategies that can be used by Raghav 
? Railway Catering business like “ComeSome” 
? A contract with the Government to be a contributor in mid-day meals. 
? A vertical that would establish Ghar ka Khana as a caterer in the Canteen Business. 
All figures in Rs Crores
Revenues 2015 2016 2017 2018
Gurgaon
Restaurant 1 1.5 2.25 3.375
Tiffin 0.75 1.125 1.69 2.531
Colleges
Restaurant 0.5 0.75 1.125 1.688
Tiffin 0.5 0.75 1.125 1.688
Total Revenues 2.75 4.125 6.188 9.281
Costs
Gurgaon
Fixed Cost 1 0.25 0.25 0.25
Variable Cost 2 2.5 2 2
Colleges
Fixed Cost 1 0.2 0.2 0.2
Variable Cost 1 1.5 1.5 1.5
Total Costs 5 4.45 3.95 3.95
Profit/Loss -2.25 -0.325 2.24 5.33
POST REVAMP FINACIALS (Estimates)
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