Go To Gourmet Case Analysis

Submitted to: Submitted by:

Milind Pant(PGMA1950)
Dr Deepak Pandit
Q1 - What is the nature of the product and its characteristics?
Ans – Go gourmet product is the mixture of grocery and menu planning. It will solve the
problem of customer who don’t have much time for there meals and are health
conscious. Go gourmet are delivering all the ingredients as per the plan and this meal
does not required not more than 20 mins. Go Gourmet product contain nutrition value,
preparation recipe. Some characteristics of go gourmet product are :
1- Product are easy to prepare, preparation time is less then 20 mins and recipe is
mentioned in pack so it helps a lot at the time of preparation.
2- Product is value for money, At effective price consumer is getting premium quality
product at doorstep.
3- Go gourmet product is nutritious and healthy.
4- Quality of the food product is premium and hygienic.
Q2. What is the nature of the competitive environment?
Ans – Go gourmet does not have much competition in market as this is a new idea in market.
All the grocery and food delivery shops are the competitor of go gourmet. In tusla country
region out of 660 grocery stores there are only two who offer delivery services. While go
gourmet is giving ingredients plus meal planning while others are just delivering groceries
without any information regarding nutrition and all. This make go gourmet unique in market.
Other food joints those who are delivering the food are very costly and unhealthy while go
gourmet deliver healthy, hygienic and cost effective product. There is very less competition go
gourmet have and there competitors are lacking behind in many aspects. Competition can be
there is some other company is selling same product but there is no company who are selling
products which go gourmet have.
Q2 - What problems might be anticipated with the product? How could these problems be
minimized?
Ans – Problems that might we anticipated with the products are :
1- Perishability of ingredients: Some ingredients are perishable in nature and if sale does
not happen then those ingredients will decay and it will be a loss for organization.
2- Promotion: Go gourmet is a startup and it need to be promoted widely in different
media so that consumer can know about it and can order from them. Right kind of
promotion is also a problem which might go gourmet will face.
3- Delivery: Company can face delivery issue. In this type of business model delivery places
a vital role. Delivery on time should be the priority of the company.
4- Inventory : Go Gourmet lacks when it comes to inventory because for the inventory
company needs to tie up with dealers for the ingredients and for vegetables with the
vegetable sellers should be more considerate for the inventory because it is very
important.
 5- Taste and preferences : Every consumer have different taste and preferences and if they
don’t have much verity then consumer will not buy ingredients from them.
Problem can be minimized by hiring experience people in there organization those who
have great knowledge of ingredients and have experience in inventor and promotions. In
order to deal with taste and preference company should take feedback from targeted
market and work accordingly. Delivery issue should solve on priority as it place a crucial role
in there business, so for delivery more no of delivery persons should be hired.

Q6 - Analyze financial projections for start‑up expenses and capital equipment?

Ans - (Amount in Dollars)

Project Cost - 2580000

Financed by - 1830000(own capital), 75000(loan)

Total Capital cost - 54500

Total Startup Expenses – 95000

Analysis
As we see in the cost sheet exhibit 1 and 2 there are many cost that are irrelevant to the project
like investment in 4 vehicle delivery van etc. and some are relevant to some extent only like
newspaper advertisement, templet distribution.
From the given cost sheet we can eliminate some cost to the some extent for example-
1. We can eliminate the cost of pre startup salary of Jan Jones. Thus can save around
10000.
2. We can reduce the brochure distribution by around 10000 and can only target the
corporate people outside the corporate offices, health institutions etc. with the remaining
10000 brochure that’s how we will eliminate this cost by half (3500)
3. We can reduce the television and newspaper ads by 50% or we can simply give no
advertisement on TV and newspaper as it is mass media platform that’s why it will cost more to
the company per customer acquire. Thus reduce cost from 7000 to 12000
4. We can go for other brands of laptop, printers etc. or we can even take it on rent or can
purchase it second hand as it will cost less top the company. Thus reduce cost by around 5000
5. We can also acquire delivery van on lease or can purchase it second hand. Thus save
70% of cost for acquiring new delivery van. Cost benefit = 46000

Total Cost Saving till now = 65000 to 75000 (Addition of 1 -5 stated above)

As we can see above that we have eliminated 65000 to 75000 cost in this project with this cost
saving now we need not to take loan even as the total funding required is equals to own capital,
that’s is how we can also save the cost of borrowing and has a lower financial risk.
With this much of cost saving a firm will get a benefit in his profit, may with this cost a firm will
be able to generate profit or can reduce losses in Q3 and can also reduce its loss in Q2 and Q1.