BUSINESS REPORT

ON

Submitted To: Team Members:

Prof. Deepak Pandit Anjali Malhotra

Ashish Khanna

Chandrabhan Singh Rathore

Raghav Sethi

Insheerah Parveen

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 TABLE OF CONTENT

TOPIC PAGES

Executive Summary 3
Business Description 4
Marketing Potential and Marketing 5
Strategy
Operations 10
Management Team 10
Financial Plan & Projections 11
Risks & Opportunities 12

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 EXECUTIVE SUMMARY

The demand for foods, snacks and drinks is not going to plummet any time soon, which
is why we have put plans in place to continue to explore all available market around the
cities where our street food is going to be located and ensure that we create a wide
range of distribution channels via franchising. With that, we know that we will be able
to maximize profits in our business.

CHATPATA is an online discovery guide for street food vendors. The registered users
are required to post reviews and rate (on a scale of 1 - 5 stars) the restaurants on the
basis of their choice, visit and experience. The app helps in defining the street food
vendors on the basis of their seating, hygiene factor, location and quality or whether
non-vegetarian food and are served or not. Chatpata also provides information about
trimming and experience of customer.

CHATPATA is Connecting medium between the street food vendors and the final
consumers. To make available street vendor`s food with the desired customers through
an APP and proper delivery system .customer can give rating to street food vendor.
The objective of CHATPATA is to ensure easy availability of street vendor`s food with
the general public and customer can aware about which one is better.

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 BUSINESS DESCRIPTION

Industry & Business Environment

The home and office food delivery services industry much growing business in the
India. Players in the homes and offices food delivery services industry are involved in
delivery foods to any destination within their coverage area as ordered by their clients.
Basically, the process of ordering food from a local restaurant or food cooperative is
through their telephones, website or customized mobile app.

When it comes to street food, India is one proud nation where every state – every city
has its own specialty. There wide varieties of scrumptious, quick and cheap street food
are known for giving hunger pangs.

Vendors tend to operate independently from carts, and can move their stalls around as
they wish. Unless you’re a city local, it can be hard to find good – and clean – street
food. And as street cuisine varies from city to city, it can be hard for hungry travellers
to find the perfect novelty to whet their appetite.

Some top street food in India are-

 Lakhanpur de Bhalle’, a spicy treat to kill the heat

 Chhole Bhature, tummy-licious Punjabi cuisine
 Aloo Tikki, crunchy roadside re-treat
 Tunde Kabab, a boastful treat of the rich Awadh culture
 Litti Chokha, a dish that talks about simplicity
 Momos, the king of street food
 Puchka, scrumptious little bombs
 Chaat, Pani Patasha colorful fusion of taste
 Chow Mein, There is nothing better than Indian ‘Chauuu-Min
 Poha – Jalebi, because sweet and sour are just what is needed

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 Product/Service Description

In a single platform customer got details about street food vendors. Customer can also
check rating to each street food vendor on the basis of few parameters and they can also
check reviews of other customer. Through this app customer can know about all good
street food vendor near to him. Customer can know about location of street food vendor
and their opening and closing time.
The Street app empowers users to rate these vendors on the basis of hygiene. 
Customer can filter his search as well and look for whichever street food he enjoy
eating the most and of course also filter if you’d like to eat vegetarian or non-vegetarian
street foods. The app will send him information customized to suit his needs. We came
up with this idea for students who studying in college. As a student on a tight budget,
there were many apps that helped us find pricey restaurants, but nothing to show where
we can get good budget-friendly food.
The main push was to provide the street food vendors with a digital platform which
would help them reach a larger audience, and to provide a convenient option to lovers
of street food to explore more options at just a click.

We will start home delivery service to a customer who buys more than 300 Rs. If any
customer who will order more than 300 Rs through our app get an option of free home
delivery service. Customer who orders below than 300 Rs also gets an option of home
delivery service on chargeable. We will focus on the increasing our customer. We will
give some discount coupon, free home delivery services to the customer. We will not
focus on only our profit we will try to increase the income of vendors who will be the
main resource for our business.

Value Proposition of the Offering

 This App basically recognizes those vendors whose food items are hygienic, tasty
but are still not able to cover the entire market.
 This will give them a competitive edge over the other players in the market.
Basically this App will try its best to connect with the nearest vendor`s while
comparing the location of consumers who needs food.
 The hygienic levels will be tested by the company`s standards and policies.
 We bring the taste of such street food under the ambit of online food delivery
system. This is basically done so as to ensure easy accessibility of the street food
for the general public.

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MARKETING POTENTIAL AND MARKETING STRATEGY

Market sizing
With the world coming to our feet and everything being within the reach of our mobile
phones, every sector is becoming technology driven and is availing the most hyped
platform i.e. online to stay in the competition. And so of course, even the food sector
hasn’t been left behind. 
On-demand food delivery apps are now raiding the market and are making their way
towards the top. Food outlets that have tie-ups with the online delivery apps (e.g. Food
Panda, Zomato, Swiggy and much more) get more than 20% of their business from
them as compared to 2014.
The process of using these apps is very basic, customers can order food on the app and
it will be delivered to their doorstep within an estimated time. These apps make life
easier for the people who have immense jam-packed schedules and cannot find the
time to go out and eat.
If we go by the numbers, the two major players in the online market, Zomato and
Swiggy have both seen a major increase in their revenues in the last two years. This
year, Zomato hit 3 million orders in a period of one month. When they started in 2015
and had one million orders in a period of over a year.
Similarly, the biggest competitor of Zomato, Swiggy has also seen a commendable
rise. In 2016, they had almost 42,000 orders per day and by 2017, it increased to
almost 78,000 orders per day.

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 Customer and Competitor analysis
Customer

Chatpata as a brand can cater to a huge target audience. It can include the varied group
of ages, people with various demographics and even varied characteristics. Though
Chatpata has a great population to target, its ideal target audience will be people
between the ages of 18-55 year.
These people could be students, entrepreneurs or professionals working who are
also financially stable and live in posh localities.
Chapata main target cutomer are students who have tight budget, because there were
many apps that helped us find pricey restaurants, but nothing to show where we can get
good budget-friendly food.
E-commerce savvy people also come under our umbrella of target segments. Tech / E-
commerce savvy have a desire to understand technology to some point. Tech savvy
people have a tendency to embrace problem solving. Whether it’s figuring out how to
do something, improve how something is done, or fix something that’s broken. They
possess a curiosity about what makes certain components of technology tick. They
might only be interested in a few very specific components, or they might have a
burning desire to learn as much as possible.
Chatapata is also that one thing which will attract such people because of our attractive
features and its distinct working.

Competition mapping & Market Size

Major Player in the market and their key strategies for making it different from others
are explained as follow:-
 Ek Plate

Ek Plate, a Mumbai based food start up founded by Harsh Shah comes in. It aims to be
the ‘Zomato’ of street food’ by getting the multitude of street food vendors in the city,
and indeed, the country on its platform giving them recognition and creating awareness.
Using Ek Plate, food lovers can search for street food in their area and choose the
vendors they’ll go to based on ratings.

 Zomato

Zomato initially named as Foodiebay was started in 2008 by Mr. Deepinder Goyal. It
is a restaurant searching platform providing in-depth details with autonomous reviews
and ratings. Zomato’s advertising is very specific, when people search for specific
keywords; ads of restaurants are shown for that specific keyword. This makes it highly

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targeted. This is also hyper local.
Very late to the game, Zomato started their online delivery service. Different from
other players like Swiggy, Zomato does not have their own delivery system, they let
users place the order through the website or the app and the restaurant fulfill that order
through by their own.

 Swiggy

Swiggy is food ordering and delivering company, founded by techpreneurs Nandan

Reddy, Sriharsha Majety, and Rahul Jaimini in August 2014. It provides a single
window for ordering from a wide range of restaurants and have their own exclusive
fleet of delivery personnel pick up orders from restaurants and deliver it to customers.
Influencer marketing is another one great strategy that Swiggy can look up to.
Influencers & Influencer marketing is the newest trend these days. Brands have started
approaching influencers to market their product because of their power to create an
impact in the minds of people.

Swiggy has two major revenue streams. The major part of Swiggy’s revenue from
commission it collects from restaurants for lead generation and for serving as a delivery
partner. Swiggy also charges a nominal delivery fee from customers on orders below a
threshold value which is 200 rupees for most cities.

 Food Panda

It is one of the most leading food delivery in India. It was found in the year 2012 and
its headquarters is in Germany and Berlin. Soon after that it was started in India. It has
a tied up with many restaurants such as Haldiram, Dominos, Ammis Biriyani etc.
And, it has been started in around 24 cities across India and is still growing. One can
order the items through app (Android and IOS) or through the website. Payment can
be done either by Cash on Delivery or Online through cards and wallets.
Foodpanda processes and sends orders directly to partner restaurants, which then
deliver to their customers. The service is available via its websites and mobile
applications. Customers order food by entering their postcodes on the site and
browsing for food from a list of restaurants.
 Faasos
Faasos, is an Indian "food on demand" company that was incorporated in 2011. Faasos
operates in the 16 of the largest cities in India and takes customer orders via its mobile
app and also the website. It is the only vertically integrated food business in India and
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operates all three stages of a "food on demand" business: ordering, distribution and
order fulfillment. Faasos receives 10,000 orders a day across India and has recorded a
growth rate of 20-25 per cent month-on-month.

Pricing, promotion and distribution strategies

In initial period our App is completely free for the street food vendors as well as
customer. We do not charge them a single penny for using the app.

As they get featured on our app, many people visit their outlets.”

Focus on the customer segment like

 Demographic (age, gender and income)
 Psychohaphics (Attitude, lifestyle, perception, motive).
 Profession (Student, Employee)
Street food vendor promote our app to their customer. It’s also beneficial for
vendor because their customer give them good rating and review which attract
other customer to visit.
Promote app by advertisement on social media, newspaper. This is best way to
promote by social media because our main customer are students who more
influence by digital advertisement.
Giving some discount coupon or cash back to customer who placed order from
app.

OPERATIONS

Following are the steps in completing a business transaction:-

 We must have a team to market research about all street food vendor and collect and
analysis the whole possible information.

 Required a software and app developer team to build a App.

 Delivering the details of the order to the concerned personnel who will contact the
desired street food vendor as per their reputation in the market.
 We will start a market of street food where all quality vendor under our own market
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 place. This opportunity will be given to that vendor who got the best rating in our
app.
 Taking the product from the street food vendor and delivering it to the concerned
customer if the order is above a specified order value.

MANAGEMENT TEAM

Organization Structure

CEO

VP
VP VP VP VP
Sales
Engineering Finance operation HR
&Marketing

FINANCIAL PLANS & PROJECTIONS

For Chatapata, the cash flow statement, profit and loss account, and balance sheet have
been built using forecasted information which is as accurate and realistic as possible.
On a predictive estimation, download for our app would increase gradually over the 2
years showing the positive trend for us. And thus, we anticipate generating a sufficient
customer base that will allow us to maintain healthy cash balances starting from the
first year of operations.
Firstly as a startup, we will take a Loan Of 4, 00,000 Rs from Bank of Baroda who for us is one
of the reliable bank, who besides it, also providing us the amount at a cheap rate.

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 Cost Incurred Amount Involved (approx.)

Development of Application Around 2000 +

Logistic Cost ₹ 51,000

Networking and payment of Vendors 45 % of the Entire Order Made

Aggregator Model Around 20,000

Interest Payment 15% of the profit

Table 1: - Structure of Cost to be Incurred

Talking in respect of performance, business might meet some difficulties in the

beginning months but after that the business grows as expected and produces a small
profit at the end of the year. It is not necessary for the business to gain high profit in the
first year. Nevertheless, we are expecting to make a small profit the first year. Our
second- and third-year net profits are expected to grow quite a bit. If the business does
better than usual, then the loan term will be further shortened. The motive here is to pay
off the loan as soon as possible to reduce cost of interest paid on the loan.

Break Even Point

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When the business will start earning profit that will be the breakeven point. The
estimated break-even point must come approximately, after one year.

Break-even period analysis (on a precise ground) - Nearly in 2.5 years we reached to
break-even point.

KEY RISKS & OPPORTUNITIES

Key Risk

The key risk involved in this business is that the hygienic level of food is not
maintained by the street food vendors which will be a big blow to the business.
However change in the tastes and preference of the customers will also be a key risk to
the business.
Key Opportunities

The opportunity involved in this business is to make 18000 street food vendors in
Ghaziabad to be a part of our network. Later on as we get positive response from our
customers we will extend our coverage to Delhi, Noida and other cities as well.

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