Chapter 1: Introduction A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT toAlbert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies. However, Humphrey himself does not claim the creation of SWOT, and the origins remain obscure. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit.
Strengths: characteristics of the business or project that give it an advantage over others.
Weaknesses: characteristics that place the business or project at a disadvantage relative to others
Opportunities: elements that the project could exploit to its advantage
Threats: elements in the environment that could cause trouble for the business or project.
SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective. SWOT analysis groups key pieces of information into two main categories: 1. internal factors – the strengths and weaknesses internal to the organization 2. external factors – the opportunities and threats presented by the environment external to the organization Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and sociocultural changes, as well as changes in the marketplace or in competitive position. The results are often presented in the form of a matrix.
SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade its users to compile lists rather than to think about actual important factors in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual SWOTs will be revealed by the value of the strategies they generate. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important. One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantage by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted, a company should try to minimize or avoid them. "This analysis leads to business awareness and is the cornerstone of any successful strategic plan," said Bonnie Taylor, vice president of strategic marketing at CCS Innovations. "It is impossible to accurately map out a small business's future without first evaluating it from all angles, which includes an exhaustive look at all internal and external resources and threats. A SWOT accomplishes this in four straight-forward steps that even rookie business owners can understand and embrace." Niki Pfieffer, founder of Niki Pfieffer Designs, noted that many small business owners don't know how to properly use a SWOT analysis to guide their business. Matching and Converting One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantage by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted, a company should try to minimize or avoid them.
Objectives of the SWOT Analysis In Jumbo Kings case the advertising objectives are mainly twofold - building the category need for snacks as an alternative for proper food and building brand equity for Jumbo King. The Indian fast food category needs to be popularized among the target audience as a convenient way of having a hygienic snack when in a hurry. In what is largely an unbranded market as of now, Jumbo King has a unique opportunity to create a brand identity for itself similar to that of McDonalds in the US. Creating such an identity would entail associating the brand with local flavor, fast service, convenience and travel. As an example of a brand identity creation strategy, one can consider suitable modifications to the companys logo to make it look more stylish and convey the impression of speed, while retaining a number of elements manifest in the old logo. Another exercise can involve developing brand taglines to be delivered in regional languages (Marathi is the obvious choice in the present case). Catching the attention of commuters, most of who are in a hurry, is not an easy task and therefore identifying bottlenecks (which require commuters to wait e.g. elevators) where the message can be effectively delivered is crucial. Even in modes of delivery both traditional and nontraditional modes of advertising should be employed. Traditional Advertising For a brand that is small, largely regional and warrants a small budget, the most effective means of reaching out to the public is through the print medium. Small billboards, placed in strategic locations where commuters wait (like on buses, trains, ticket counters, petrol pumps etc), can be most effective in pushing the consumer towards an impulse purchase. Slogans like "When your tank is full, why let your stomach go empty?" and "The law says you can’t drink and drive, but who ever said anything about eating?" can effectively be used by Jumbo King at petrol pumps and traffic signals. Again catchy statements like "Isn’t it time for your stomach to get a top-up too?" can be used in front of mobile shops and general stores. Bigger billboards and posters at railways stations and on trains and buses reinforce brand identity. They can appeal at an emotional level to the consumer regarding the spirit of the city they live in and tie that in to the brand. A possible campaign of this type for Jumbo King will emphasize the intimate relation of the food chain with Mumbai city and its people and will aim at binding the spirit of living in Mumbai with the brand that signifies speed, affordability and pride in eating a local snack. Non-Traditional Modes of Advertising Indian snacks are not exactly renowned for health and hygiene. Since Jumbo King belongs to this category of food items, PR campaigns could be an effective tool in dispelling any such concerns that a consumer may have. Newspapers, magazine articles and press releases talking about the quality of food at Jumbo
King and its stringent adherence to hygienic standards can go a long way in changing customer perceptions about the category and the brand. PR campaigns talking about the entrepreneurial stories of the young founders of initiatives like Jumbo King can give a lot of publicity to the concerned brand and this comes at no cost. Other innovative means of reaching the consumers like printing out city maps or train/bus timetables (with information on Jumbo Kings outlets) for commuters and distributing them can be employed. Being a low involvement product with a target customer group that is mostly on the go, the challenges of reaching this segment are many. Designing a really great advertisement and putting it on TV or a big billboard on the road in all probability will not translate into sales. Creative advertisements must be complemented with equally creative ways of placing these advertisements so that they are noticed. Jumbo King is about speed and convenience and hence locations and objects which are associated with these attributes (like bus-train time tables, guides, road signs etc) should be used to integrate ideas with their execution as a part of the Jumbo King identity. Media Planning - Showing the World Both the traditional as well as non-traditional strategies for advertising offer great opportunities for creative marketers to show off their skills in convincing people to buy their products. Preparing a catchy and innovative advertising campaign is no easy task and a well prepared creative plan can work wonders for the company and its products. But that is just one side of the story. A marketer may have done an excellent job in identifying the target audience and preparing an excellent commercial for them, but what use is all that if it doesn’t reach them? That is where an effective media strategy comes into the picture. One needs not just be creative and different in terms of preparing ads, but should also be adept at executing those well prepared ads to perfection. Media planning is all about determining the media habits of consumers in the target group and formulating how this knowledge can be exploited to reach the target group effectively. For a budget conscious brand like Jumbo King, it becomes even more important to have a judicious mix of media since targeting all media channels (TV, print, radio etc) can be prohibitively expensive. Different media channels can have different impact on the customers at different costs Print Media This can be a very effective medium for the franchise since it has the maximum reach among the target audience. Since Jumbo King is a budget-constrained and predominantly regional brand, local language newspapers and magazines can be cost effective sources of advertising. Television Media Television is a very popular source of entertainment amongst students and professionals and this popularity can be tapped by Jumbo King for reaching these people who form a substantial portion of its target audience. Again regional channels will hold the key for Jumbo King since they are cheaper and not averse to advertising insignificant products like vada pav. Radio Media Jumbo King can also make use of FM radio channels to send across their message, cheaply and effectively. FM radio is a very popular entertainment source for commuters and professionals and hence the message can spread across far and wide at minimal cost. Internet Media Since Jumbo King aims to target students and professionals,
internet can be a very important medium for advertising in the future. Strategies such as blogs, banners, websites etc can provide good publicity to Jumbo King with minimum cost incurred and also create an interactive environment for customers to provide their views about the company and the product. Another important part of the media stratagem is to evaluate expenditure by competitive brands. This provides an idea of the relative performance of brands corresponding to the spending done. In the present case, Jumbo Kings competitors like McDonalds, which have large budgets, can afford to go for Continuous/Pulsing strategies (advertising regularly or with very short breaks) on TV. But for smaller players like Jumbo King, it is necessary to carefully choose the advertising media and formulate a proper timing strategy, also taking factors like future growth and expansion into consideration.
Significance of the study Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.
Chapter 2: Conceptual Framework of SWOT Ananlysis The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) is defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey.
Strategy Building. SWOT analysis can be used effectively to build organization or personal strategy. Steps necessary to execute strategy-oriented analysis involve: identification of internal and external factors (using popular 2x2 matrix), selection and evaluation of the most important factors and identification of relations existing between internal and external features. For instance: strong relations between strengths and opportunities can suggest good condition of the company and allow using aggressive strategy. On the other hand strong interaction between weaknesses and threats could be analyzed as potential warning and advise for using defensive strategy.
The purpose of a SWOT analysis The SWOT analysis enables companies to identify the positive and negative influencing factors inside and outside of a company or organization. Besides businesses, other organizations, in areas such as community health and development and education have found much use in its guiding principles. The key role of SWOT is to help develop a full awareness of all factors that may affect strategic planning and decision making, a goal that can be applied to most any aspect of industry. SWOT is meant to act primarily as an assessment technique, though its lengthy record of success among many businesses makes it an invaluable tool in project management. "A good SWOT analysis serves as a dashboard to your product or services and when done correctly can help you to navigate and implement a sound strategy for your business regardless of company size or sector," said Vipe Desai, founder and CEO of HDX Hydration Mix. "We
continue to revisit ours every year to keep it updated due to constant shifts in market trends. It's a crisp and simple way to communicate the most important aspects of our brand."
When to use SWOT SWOT is meant to be used during the proposal stage of strategic planning. It acts as a precursor to any sort of company action, which makes it appropriate for the following moments:
Exploring avenues for new initiatives
Making decisions about execution strategies for a new policy
Identifying possible areas for change in a program
Refining and redirecting efforts mid-plan
The SWOT analysis is an excellent tool in organizing information and presenting solutions, identifying roadblocks and emphasizing opportunities. "Performing a SWOT analysis is a great way to improve business operations and decision making," said Andrew Schrage, founder and CEO of Money Crashers. "It allowed me to identify the key areas where my organization was performing at a high level, as well as areas that needed work. Some small business owners make the mistake of thinking about these sorts of things informally, but by taking the time to put together a formalized SWOT analysis, you can come up with ways to better capitalize on your company's strengths and improve or eliminate weaknesses."
While the business owner should certainly be involved in creating a SWOT analysis, it could be much more helpful to include other team members in the process. "Our management team does a SWOT analysis quarterly," said Shawn Walsh, president and CEO of Paradigm Computer Consulting. "The collective knowledge removes blind spots that, if left undiscovered, could be detrimental to our business of our relationship with our clients." Brandon Dudley, director of marketing and operations at The BusBank, also said that collaborative SWOT analyses give employees a greater sense of understanding and involvement in the company.
The elements of a SWOT analysis A SWOT analysis focuses entirely on the four elements included in the acronym, allowing companies to identify the forces influencing a strategy, action, or initiative. Knowing these positive and negative impacting elements can help companies more effectively communicate what elements of a plan need to be recognized. When drafting a SWOT analysis, individuals typically create a table split up into four columns so as to list each impacting element side-by-side for comparison. Strengths and weaknesses won’t typically match listed opportunities and threats, though some correlation should exist since they’re tied together in some way. Royce Leather Gifts marketing director Billy Bauer noted that pairing external threats with internal weaknesses can highlight the most serious issues faced by a company. "Once you've identified your risks, you can then decide whether it is most appropriate to eliminate the internal weakness by assigning company resources to fix the problems, or reduce the external threat by abandoning the threatened area of business and meeting it after strengthening your business," Bauer said.
Internal factors The first two letters in the acronym, Strengths and Weaknesses, refer to internal factors, which means the resources and experience readily available to you. Examples of areas typically considered include:
Financial resources, such as funding, sources of income and investment opportunities.
Physical resources, such as your company’s location, facilities and equipment.
Human resources, such as employees, volunteers and target audiences.
Current processes, such as employee programs, department hierarchies and software systems.
When it comes to listing strengths and weaknesses, individuals shouldn’t try to sugarcoat or glaze over inherent weaknesses or strengths. Identifying factors both good and bad is important in creating a thorough SWOT analysis. "Using the SWOT analysis has, more than once, saved me from myself, keeping me from taking on projects that would likely have been too much for my small company," said Tom Atkins, founder of Quarry House. Mitchell Weiss, business professor at the University of Hartford, recommended fully analyzing your strengths and weaknesses first. "Companies can't hope to take advantage of or control the external factors until the internals have been objectively assessed," he said.
Every company, organization and individual is influenced and affected by external forces. Whether connected directly or indirectly to an opportunity or threat, each of these factors is important to take note of and document. External factors typically reference things you or your company does not control, such as:
Market trends, such as new products and technology or shifts in audience needs.
Economic trends, such as local, national and international financial trends.
Funding, such as donations, legislature and other foundations.
Demographics, such as a target audience’s age, race, gender and culture.
Supreme Graphics, a commercial print manufacturer, was struggling to compete with the digital industry in retaining its larger advertising and marketing clients. "We used a SWOT analysis to identify a new market opportunity in small manufacturers that needed ink-on-paper projects," said Michael Frishberg, Supreme Graphics' vice president of sales and marketing. "This provided organic, non-disruptive growth." On the other hand, Lynn Sheehan, co-founder and CEO of CPA review for FREE, noted that a SWOT analysis helped her company fully analyze its pricing structure, which would have been a threat to its success.
SWOT Analysis Template Here is a SWOT Analysis template with some examples filled in: Strengths
Project is very complex
Likely to be costly
May have environmental impact
Staff resources are already stretched
Market experience Strong leadership
Project may improve local economy
Will improve safety
Project will boost company's public image
Opposition to change
The SWOT analysis is a simple, albeit comprehensive strategy in identifying not only the weaknesses and threats of a plan, but also the strengths and opportunities available through it. While an excellent brainstorming tool, the four-cornered analysis prompts entities to examine and execute strategies in a more balanced way. However, it is not the only factor in developing a business strategy. "A SWOT analysis is helpful in broadly addresses questions to develop a business plan, but it doesn't go far enough," said Worthworm and SkyMall co-founder Alan Lobock. "The exercise alone won't identify your key value drivers of your business. Planning without first knowing your goals and the metrics by which you will measure your progress toward achieving those goals is inefficient and misguided."
Similarly, Sempurna Restoration Clinic founder Cleighton DePetro noted that a SWOT analysis is just one tool in the strategy toolbox. "When SWOT is used in conjunction with other analysis models, these frameworks for strategic thinking are well worth your time and should guide your decision making," DePetro said.
SWOT Landscape Analysis
The SWOT-landscape systematically deploys the relationships between overall objective and underlying SWOT-factors and provides an interactive, query-able 3D landscape. The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the dynamic performance of comparable objects according to findings by Brendan Kitts, Leif Edvinsson and Tord Beding (2000). Changes in relative performance are continually identified. Projects (or other units of measurements) that could be potential risk or opportunity objects are highlighted. SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use (for ex. capital value fluctuations).
In many competitor analyses, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. Accordingly, management often conducts market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include:
Qualitative marketing research, such as focus groups
Quantitative marketing research, such as statistical surveys
Experimental techniques such as test markets
Observational techniques such as ethnographic (on-site) observation
Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.
Below is an example SWOT analysis of a market position of a small management consultancy with specialism in HRM.
position with a well
operating at a minor
operating level rather
defined market niche
Identified market for
than partner level
Expertise at partner
Unable to deal with
level in HRM
consultancy in areas
other than HRM
to invade the
of size or lack of
As part of the development of strategies and plans to enable the organization to achieve its objectives, that organization will use a systematic/rigorous process known as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors.
Set objectives – defining what the organization is going to do
Environmental scanning .
Analysis of existing strategies, this should determine relevance from the results of an internal/external appraisal. This may include gap analysis which will look at environmental factors
Strategic Issues defined – key factors in the development of a corporate plan which needs to be addressed by the organization
Develop new/revised strategies – revised analysis of strategic issues may mean the objectives need to change
Establish critical success factors – the achievement of objectives and strategy implementation
Preparation of operational, resource, projects plans for strategy implementation
Monitoring results – mapping against plans, taking corrective action which may mean amending objectives/strategies.
The SWOT analysis in Social Work practice framework is beneficial because it helps organizations decide whether or not an objective is obtainable and therefore enables organizations to set achievable goals, objectives, and steps to further the social change or community development effort. It enables organizers to take visions and produce practical and efficient outcomes in order to effect long-lasting change, and it helps organizations gather meaningful information in order to maximize their potential. Completing a SWOT analysis is a useful process regarding the consideration of key organizational priorities, such as gender and cultural diversity, and fundraising objectives.
Limitations Critiques include the misuse of the SWOT analysis as a technique that can be quickly designed without critical thought leading to a misrepresentation of Strengths, Weaknesses, Opportunities and Threats within an organization's internal and external surroundings. Another limitation includes the development of a SWOT analysis simply to defend previously decided goals and objectives. This misuse leads to limitations on brainstorming possibilities and "real" identification of barriers. This misuse also places the organization’s interest above the well being of the community. Further, a SWOT analysis should be developed as a collaborative with a variety of contributions made by participants including community members. The design of a SWOT analysis by one or two community workers is limiting to the realities of the forces specifically external factors, and devalues the possible contributions of community members.
When to use SWOT The use of a SWOT analysis by a community organization are as follows: to organize information, provide insight into barriers that may be present while engaging in social change processes, and identify strengths available that can be activated to counteract these barriers. A SWOT analysis can be used to:
Explore new solutions to problems.
Identify barriers that will limit goals/objectives.
Decide on direction that will be most effective.
Reveal possibilities and limitations for change.
To revise plans to best navigate systems, communities, and organizations.
As a brainstorming and recording device as a means of communication.
To enhance “credibility of interpretation” to be utilized in presentation to leaders or key supporters.
Chapter 3: Introduction to Jumbo King Jumbo King is a chain of fast food restaurants based primarily in Mumbai, specialising in the Maharashtrian regional dish vada pav. Established in 2001 by husband and wife Dheeraj and Reeta Gupta, the company was inspired by the fast food business model of McDonald's and Burger King. Jumbo King Foods Pvt. Ltd is a franchisee-based company that operates across many areas of India. From its beginnings in Malad, a suburb of Mumbai, it has spread across the whole Mumbai Metropolitan Region (MMR), as well as Bangalore, Aurangabad and Gujarat.
Chapter 4: History Of Jumbo King
Company History Jumbo King began its journey to brand the Vada Pav on 23rd August 2001 with an initial investment of Rs. 200,000. Inspired by western models and applying it to Indian food, Jumbo King believes that the common man has the constitution alright to get hygienic food
at an affordable price! Jumbo King has been founded by MBA couple from Symbiosis Dheeraj Gupta and Reeta Gupta. Jumbo King has a team of people spanning the functional areas of operations, business development, franchisee relations and marketing. Operations looks into store running, logistics and training. The head office at Jumbo King is called the Support Centre and the operation team supports the franchisee network and their staff torun the store as per the guidelines laid down by the franchising system of Jumbo King. The business development team looks at increasing the number of outlets byen suring a new outlet to be opened as fast as possible, for which they do a strong survey and ensure that the outlet is in the best possible area. Franchisee relation shave to be maintained by solving their queries and lending a helping hand wherever possible. Marketing looks after the media, promotions, branding etc. Jumbo King celebrates 23rd August as the Vada Pav Day since on that day of 2001it came into existence. The Journey…23rd August 2001 – First Outlet was opened. Currently, we have only 38 outlets in Mumbai and Thane area (20 self-owned and18 franchises). If we compare this numbers with 20,000 Vada Pav sellers then we have only about 2% market share. Vada Pav in Mumbai is a big business. What’s on Offer? On offer are vadapavs (a potato-based patty in a bun), Pepsi and lassi. This is fast food Mumbai style. Basically, Jumbo King has four Vada Pav recipes, namely Butter, Cheese, Grill and Brown Bread. Further we add flavours and offer about 16varieties of Vada Pav. For instance, butter range offers Butter Jumbo King, Butter Grill Jumbo King, Butter Cholle Jumbo King. Assignment By Rajat Sharma. An earlier franchisee of Burger King, the Guptas, on their visit to London, realised that fast food could also work in India. Vada pav was the their first idea, as the food had to be portable. In 2001 the Guptas opened their first restaurant at Malad, with an initial investment of 200000 (US$3,200), which they borrowed from his family. The outlet was initially named Chaat Factory (Snack Factory), and vada pav was sold at 5, despite street vendors selling the same product for 2. The name was later changed to Jumbo King. Gupta faced opposition from his family, who thought he was wasting his MBA by selling vada pavs. Grandfather was the real pioneer Migrated to Mumbai from a village close to Haryana in the '40s Built a business of vending stalls Father and uncles took over and built the restaurant and hotel business Catering course from the Dadar Catering College and have a management degree from a Pune institute . Decided to set up his own business, selling packaged Indian sweets in 1998. Set up a company called Manali Foods. Vada pav is a popular vegetarian dish native to the Indian state of Maharashtra, although it has been losing its reputation in past few years. The places where the food is now cooked and sold are often polluted, and it is considered a "poor man's food". The people of Mumbai and Thane consume about 18–lakh (1.8–2 million) units of vada pav, with stiff competition
mainly from the unhygienic street vendors in the city. In contrast, Jumbo King cooks and sells the food in hygienic conditions. As of 2010, the chain had 30 outlets in Mumbai, selling an average of 40,000 vada pavs everyday, priced between 8 and 16 apiece. 23rd August 2001 – First Outlet was opened. Currently, we have only 38 outlets in Mumbai and Thane area (20 self-owned and18 franchises). If we compare this numbers with 20,000 Vada Pav sellers then we have only about 2% market share. Vada Pav in Mumbai is a big business. What’s on Offer? On offer are vada pavs (a potato-based patty in a bun), Pepsi and lassi. This is fast food Mumbai style. Basically, Jumbo King has four Vada Pav recipes, namely Butter, Cheese, Grill and Brown Bread. Further we add flavours and offer about 16varieties of Vada Pav. For instance, butter range offers Butter Jumbo King, Butter Grill Jumbo King, Butter Cholle Jumbo King. October 07, 2011 Vada Strategies: Market Penetration & Development: (Market Development)Distribution through Franchisees- Target to open near to 5000 outlets all over India in a span of 8-9 years. From one outlet in 1991, Jumbo King reached 45 by early this year. It is targeting 250 this year, and has already forayed to Gujarat (Ahmedabad & Baroda) from its home state of Maharashtra andhave chalked out drastic expansion plans in Gujarat and Mumbai. According to the companys plans, the funds will be used for setting up more owner-operated outlets (outlets are franchised now), and kiosks within malls, retail chains andair ports. A deal has been signed with Bharat Petroleum for kiosks at gasoline pumps. And Jumbo King plans to move inside railway stations; talks are on with Indian Railways for outlets on platforms. Currently, the franchisee relations team is negotiating for 10-12 locations in Mumbai. Two or three people can jointly open a franchise store. Product Innovation: Gupta has changed all the rules by introducing automation, packaging, a largersize, different cheese, round bread (otherwise the pav is square) and flat patties instead of round. New recipe would be Paneer Jumbo King. In the coming 2-3 months would be adding new range of Vada Pav in the menu.
The Idea Ironically, it wasn't the Mumbai-it's love of the vada pav that initially inspired Dheeraj Gupta. Though biting into one of the piping-hot treats, consisting of deep fried potato dumpling served in a lightly-buttered bun, may be elevating, Dheeraj's original inspiration for Jumbo King Vada Pav was much more prosaic. While visiting London, Dheeraj stayed with a friend who owned a Burger King franchise. "That's when I saw how their business worked," he says. Dheeraj was fascinated by the fast food franchise business. "Back in India, I happened to come across a book
about the person who set up McDonald's. It inspired me tremendously and I decided to follow the same model."But he wanted to give the business an Indian flavor. "Vada pav was the obvious food choice because Mumbai-ites love it," he says. Vada pavs are one of Mumbai's favorite roadside fast foods. Dheeraj took his idea further - he was willing to bet that, for snacks they knew were hygienic, people would pay him more than twice the price than they would pay for a vada pav from a traditional street stall. So in August 2001, Dheeraj set up an outlet called Chaat Factory close to Malad station, a suburb in Mumbai. "I wanted to sell hygienic chaats in the market. But I started with vada pavs only." His success selling this one snack focused his attention, and he renamed the company Jumbo King Vada Pav. Backstage food storage maintain kitchen facilities food preparation food purchase delivery pick food from kitchen. Front stage line of visibility deliver food on counter collection of money take away parcel.
The Opportunity It turns out that vada pavs are a young person's food. In fact, a feasibility study performed by Jumbo King showed that 75%of vada pav purchasers are 16 to 25 years old. Also, surprisingly, the majority of people purchasing the snack hail from the higher income brackets. At Jumbo King, Dheeraj and his team are therefore playing into some important trends: more young people today have money to spend; and at the same time, they are increasingly health- and hygieneconscious, wanting to know that they are receiving good quality food. Jumbo King, explains Dheeraj, "is riding on this generation."Thousands of street-side vendors still dominate the quick food market, and placed among these, Jumbo King is distinctly different. "Right from deciding to use paper to wrap the product in, having processes and systems in place, branding a common Mumbai-it's food, to running the business like the Western style fast-food giants, we have constantly innovated, dared and gone against the tide."In one area, Jumbo King maintains a more traditional outlook - like all retailers, they focus on location, location, location. Today, all Jumbo outlets are located near railway stations. By combining the elements above, Jumbo King seems to have come up with a successful "secret sauce". Today the company has 30 outlets in Mumbai, two in Surat, one in Ahmedabad, one in Baroda and one in Pune.
Vada pav was the obvious food choice because Mumbaikars love it. Borrowed Rs 200,000 from his family & set up an outlet, which the family owned, near Malad station, a Mumbai suburb, and called it Chaat Factory. One day when he was standing at the store, two ladies called the store a con, since he was only selling vada pav. Thereafter the name JUMBO KING came into existence.
The Money A loan of Rs. 2 lakhs kick-started the business. Growth has been helped by the fact that the business can generate quick cash flow: the first Jumbo King outlet at Malad made money from day one."All the money from the business was ploughed back into buying the second store," says Dheeraj, who used to take back home a salary of only Rs. 5,000 a month. Borrowed Rs 500,000 from his brother to start a business All the money from the business was ploughed back into buying the second store," so Dheeraj used to take back home a salary of only Rs. 5,000 a month. He had priced the vada pav at Rs 5 whereas it sold for as little as Rs 2 in the market. He took a bank loan to open the third store at Andheri (W).
Preparation Potatoes are mashed & made into patties Coated and mixed with green chilies, ginger and a tadka (tempering) of mustard seeds and turmeric Balls are then dipped in an herb-seasoned batter made with gram flour It is deep fried Finished vada is then wrapped in bread and served with chutney, red chili powder or green chilies.
Branding Strategies Gupta has changed all the rules by introducing automation, packaging, a larger size, different cheese, round bread and flat patties instead of round. He realized the power of hearing and sound. So he started a pseudo radio called Radio Today, which connects all our food joints.
He hired a hygiene consultant who advises McDonald’s and Pizza Hut to maintain hygiene and quality standards.
Word of Mouth A young journalist who probably visited his store in Dadar and liked the product. After a good experience he wrote an article in their daily paper. Thus originally word of mouth definitely worked for Jumbo King greatly. Typically in August their sales go up because people wish to come and experience the fun of celebrating a Vada pav day. He believe that at least one in every ten people knows about the Vada pav day 23 rd August. He decided to use paper to wrap the product in.
Achievements In the last quarter of the year 2001, Jumbo King made a total of Rs 600,000 from just one outlet . The other outlets opened from 2003. Today the company has 30 outlets in Mumbai, two in Surat, one in Ahmedabad, one in Baroda and one in Pune catering to about 40,000 people every day. Jumbo King seems to have come up with a successful “ Secret Sauce”
Scope Jumbo King is looking at a turnover of Rs. 18 crores (almost $5 million) and with rapid growth to a projected turnover of Rs. 60 crores in 2008-09. Dheeraj and his team feel they would like to bring in investors, but only after they reach the 100 store . Gupta is looking at franchises across the metropolis. In three to five years time, he wants Mumbai to have 75 Jumbo King outlets. By next year, he wants to double his current turnover of over Rs 1 crore (Rs 10 million).
Reasons To Buy - Quickly enhance your understanding of "Jumboking Foods Pvt. Ltd."
- Gain insight into the marketplace and a better understanding of internal and external factors which could impact the industry. - Increase business/sales activities by understanding your competitors’ businesses better. - Recognize potential partnerships and suppliers.
Target Audience • Geographic variables: Metropolitan Cities. • Demographic Variables: Age: 18-30 Gender: Both Occupation: college Students, Working Class Executives Socio-Economic Status: Middle class onwards. • Psychographic Variables: Lifestyle: Fast food Attitude: Hygiene and heath conscious • Behavioral Variables: Occasion: Quick bite Benefit: Satisfaction of Hunger Income: Middle Class and above
Chapter 5: SWOT Analysis on Jumbo King
1. Strong brand recall. 2. Strong presence in Mumbai and few other cities. 3. Combos (pepsi + vadapav)- a very popular offering. 4. Variety in offerings - Around 9 types of VadaPav. 5. Easily available at an affordable price and high hygiene.
1. Present only in Mumbai, and doesn’t have a pan-India presence. 2. Strong competition from other local food joints.
1. Increase its network by opening outlets throughout the country. 2. Diversify into other Indian fast foods. 3. Open a chain of Jumbo King Restaurants.
1. High level of competition. 2. Inflation causing increase in the price of raw materials. 3. Health consciousness amongst people.
Competitors 1. Goli Vada Pav. 2. Local fast food joints. 3.Sweet shops serving snacks.
STP Analysis Segment Anyone who needs a fast snack, on the move. Target Group Lower and middle income group people in Mumbai (mainly students and working class).
Positioning As a hygienic and easily available fast food.
Chapter 6: Conclusion Conclusion Devising a marketing plan for any brand requires a combination of consumer insights, creative thinking and strategic execution. An integrated approach needs to be reiterated to effectively bring out the intended message to the target consumers. In Jumbo Kings case, it is of utmost importance to position the brand along parameters such as affordability, local taste and quick service since these features can differentiate it from the existing competition. The target audience should incorporate the new breed of potential customers like students, professionals etc which will play a key role in determining the success of brands in the future. Creative techniques assume a very important role for upcoming brands like Jumbo King since they are looking at getting new customers and expanding to new markets. Innovative ways of disseminating messages can work wonders in such situations. Again, media planning is an integral part of any creative strategy and for Jumbo King to reach to maximum number of prospects; the sources should be picked judiciously. In a nutshell, brands like Jumbo King have a lot of potential and given the right mix of strategy and advertising, such brands can achieve phenomenal success in the future. bout Jumbo king Foods Pvt. Ltd The Jumbo King brand was founded by Dheeraj Gupta, a Hotel Management Graduate with a Masters degree in Financial Management. Dheeraj not only put up his own single product stores but also convinced others to invest in the brand through the franchise model. The vision has grown to encompass many cities and states, and Dheeraj believes that vada pav hasas much universal appeal as the burger. Franchise Information Jumbo king operates as a fast food retail chain on franchise basis nationally. Investment in the correct technology, engaging partners like Johnson Diversfy and inducting experienced professionals in the team from the food and marketing sector, Jumbo King is making a sincere attempt to upgrade the unorganised fast food industry.