long john silver (india)

Initial Marketing Plan

Long John Silver’s in India

Initial Marketing Plan – Long John Silver’s in India

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UNIVERSITY OF WOLLONGONG in DUBAI

College of Business

Project report

Title: Initial Marketing Plan

Long John Silver’s in India

in partial fulfilment of requirement of the subject:

TBS982 – Marketing in a Global Economy

for the Master in International Business Program

Summer One 2010

By

Ms. Joyner Gwendolyn Rodrigues

Student ID: 3769537

And

Mr. Ankit Yashpal Tandon

Student Id 3717537

Submitted to: Mr. Sushil Kumar

Date: 28th

June 2010


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EXECUTIVE SUMMARY

Located in the southern part of Asia and bordered by sea on three sides, India is a

land of rich cultural heritage. Having A population of more than 1.15billion which speak

more than different races and religion and peoples speaking more 1600 Languages, different

dressing styles and food diets India is truly a land of diversity. India is a has a collective

culture and which is visible in the Indian family and the Indian style of business. Even though

some parts of the country is developed, most regions still are underdeveloped. The literacy

rate of India is 65.38% and thus the main form of media is television, radio and newspaper. In

communication is done more with voice and picture than with words. Words would be use in

the developed area of the country. Hinglish is the mix of English and Hindi has become a

subculture in India. India is an emerging market in today’s world with a GDP growth of 6.5%

in 2009 and industrial growth rate of 7.6%.

In 1969, Long John Silver’s was incorporated by Kentucky, U.S.A. The theme behind

the restaurant was stimulated by Stevenson's classic story Treasure Island. The name itself is

adapted from a pirate known as Long John Silver in the story. The company is a quick-

service seafood restaurant. In May, 2002, Long John Silver's was acquired by Yum! Brands.

The target market in India is Mumbai, and we aim to target the families, working

class and college students. McDonalds and KFC are the main competitors for Long John

Silver’s in Mumbai. With the growing market size, consumer buying habits and taste in

Mumbai along with the government support, Mumbai is the place to be in India for Fast Food

Industry.

In the Marketing Plan of our report we have written in detail about Long John Silver’s

Product Strategy, Promotion Mix, Distribution Network and Pricing Strategy. The estimation

and breakup of the budget for the Marketing Strategy along with the various resource needed

to establish Long John Silver’s in Mumbai is stated.


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CONTENTS

I. CULTURAL ANALYSIS 6

1. History 6

2. Geographical Setting 6

A. LOCATION 6

B. CLIMATE 6

C. TOPOGRAPHY 7

3. Social Institution 7

A. INDIAN FAMILY 7

B. INDIAN EDUCATION 7

C. POLITICAL SYSTEM 7

D. LEGAL SYSTEM 8

E. SOCIAL ORGANIZATIONS 8

F. BUSINESS CUSTOMS AND PRACTICES 8

4. Religion 9

5. Living Conditions: 9

A. DIET AND NUTRITION 9

B. HOUSING AND CLOTHING 9

6. Language: 10

II. ECONOMIC ANALYSIS 11

1. Introduction 11

2. Population 11

3. Economic Statistics And Activity (CIA - World Fact Book, 2009) 11

4. Agriculture and Industry 12

5. Export – Import 12

6. Transport System 12

7. Communication 12

8. Media 13

III. MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS 14

1. Introduction 14

2. The Product 14

A. EVALUATION 14

B. PROBLEMS 15


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3. The Market 15

A. DESCRIPTION OF THE MARKET 15

B. COMPETITORS 16

C. MARKET SIZE 18

D. GOVERNMENT PARTICIPATION 18

IV. PRELIMINARY MARKETING PLAN 19

1. The Marketing Plan 19

A. MARKETING OBJECTIVE 19

B. PRODUCT 19

C. PROMOTION MIX 19

D. DISTRIBUTION 20

E. CHANNELS OF DISTRIBUTION (MICRO ANALYSIS) 21

F. PRICE DETERMINATION 21

G. METHODS OF PAYMENT 21

2. Budget 22

3. Resource Requirement 22

V. REFERENCES 23


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I. CULTURAL ANALYSIS

1. History

India is a land of rich cultural heritage dating back more than 4000 years.

Indian history and culture have evolved with the integration of various peoples who

have migrated and brought along their influences into the Indian melting pot. One of

the earliest cultures of the Indus Valley Civilization developed along the banks of the

Indus River, due to the availability of fertile soil that nourished farming communities.

Great emperors such as Asoka who was responsible for the spread of Buddhism and

Akbar who brought Mughal influences to architecture have ruled the nation in periods

of history. Dynasties such as the Cholas, Lodhis and Tughlaqs have flourished in

India. Due to its favourable sea routes that facilitated trade and commerce, European

powers such as Portugal, France, the Netherlands and the U.K established trading

posts and colonies in India in the 16th century. Their influences can be found in

architecture, urban planning and the Indian legal system. India achieved independence

in 1947. (Indian History.com, 2008 and India Child, 2004)

2. Geographical Setting

A. Location – India is located in the southern part of Asia and is bordered by the

Arabian Sea in the west, the Bay of Bengal in the east and the Indian Ocean in

the South. It is bordered by Bangladesh in the east, Pakistan and Afghanistan

in the north -west and Sri-Lanka in the south. It covers an area of 3287263

sqkm which is more than one third size of the USA and the length of its

coastline is 7000km. (Megrisoft - India Book, 2003)

B. Climate - India experiences summers from April to June, followed by

monsoons from June to September and winter from October to February .The

climate in varies from tropical monsoons in the south to temperate in the

north. Typically the north eastern region and the western Ghats of India

annually receives rainfall of 2000mm.The eastern part of India till the northern

plain receives rainfall of 1000mm.Some parts like Rajasthan Ladakh receive

hardly any rainfall. (Megrisoft - India Book, 2003)


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C. Topography – The physical features of Indian subcontinent is characterized

by vast diversity and is divided into 3 physical units:

a. The Himalayas

b. The Indus Ganga-Bramha-putra plain

c. The Peninsular Plateau (Plan Travel, 2009)

3. Social Institution

A. Indian Family – Indian family is close knit and people prefer to stay in a Joint

family under one roof. People like to work, eat in a group and support each

other. Even though with westernization, urbanization and secularization the

Indian values and culture keep people close to each other in a joint family.

People are generally very loyal towards their family. The role of Women in

Indian society has changed to a great extent and today women and men are

given equal rights and Indian women has stepped out to work and have

achieved great success. (U.S. Library of Congress, 1995)

B. Indian Education – The education system in India consists of Primary

education, senior secondary education, secondary education and higher

education. Primary education which is the base for the youth is till 4th grade

and is followed by secondary education. A lot of International Schools are

coming in India to set up a strong base and the levels of education over the

years have improved tremendously. Senior secondary education is for 2 years

and then Higher education or the bachelor’s degree is for 3 years and the post

graduate programs are for 2 to 3 years. (India Education, 2009) According to

2001 census, literacy rate in India is 65.38% with male literacy rate of 75.96%

and the female literacy rate of 54.28%. (I Love India. com, 2004)

C. Political System – India political structure is based on a Sovereign, Socialist,

Secular Democratic Republic. The Indian Union consists of 26 states and 6

centrally administered union territories and the form of the government is

Parliamentary. The legislature consists of the Parliament which has 2 houses;

the Lok sabha and the Rajya sabha . The Executive consists of the President,


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Vice President and the Council of ministers led by the Prime Minister.

(Oracale Education Foundation, 2009)

Political Parties in India Congress, Bharatiya Janata Party (BJP), Janata Dal,

Communist Party of India (Marxist) and the Communist Party of India are the

main and prominent national Parties of the Country. There are several other

state parties. (Oracale Education Foundation, 2009)

The government of India is fairly stable and is currently under the power of

the Congress party with support from other parties.

D. Legal system – The Constitution, legislation, customary law and the case law

form the main source of Indian legal structure. The Supreme Court of India is

the highest body in the Indian Judicial system. Every state has a High Court

under which there is Subordinate court. India follows s the common law

system along with the code law for some of its acts. In India patents and

trademarks atc are not followed strictly. (Mongabay.com, 2010)

E. Social Organizations – The social class in India can be divided into 5 classes

namely Brahman, Kshatriya, Vaishya, Shudra and Dalit. Each of the Indian

caste have sub caste or jatis that are correlated to the class. There are above

2000 ethnic groups in India. The Indian race is classified as: Turko- Iranian,

Indo- Aryan, Scytho Dravidian type, Aryo Dravidian type, Mongolo Dravidian

type, Mongolo type n Dravidian type. (Mongabay.com, 2010) The major sun

culture seen in India is the Hinglish Subculture - Hinglish is the mix of

English and Hindi most commonly used by college and school children in

their daily lives. (Abhi, 2004) Its gaining popularity.

F. Business Customs and Practices – Business behaviour in India is similar to

that of the western world. A Business meeting begins with a light handshake

followed and an exchange of cards. One should address the people with the

title that signifies their status and it is advisable to start the meeting with a

small talk before discussing business. When it comes to punctuality, Indians

are not very punctual. (World Wide Tax.com, 2009)


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4. Religion

India is a multi religious race. There are several religions in India like:

• Hinduism: around 82% of the population

• Islam: around 12% of the population

• Christianity: around 2.5% of the population

• Sikhism: around 2% of the population

• Buddhism: around 0.7% of the population

• Jainism: around 0.5% of the population

• Zoroastrianism: around 0.01% of the population

• Judaism: about 0.0005% of the population (Daniel, 2005)

5. Living Conditions:

A. Diet and Nutrition – Indian are mostly Vegans thus The per capita vegetable

consumption in India is 86 g a day while the per capita meat consumption in

India is 5.35 pg/ annum and the per capita meat availability is 14.65 grams/

day. Food in India is known for its different types of spices and is prepared in

a unique way. There are many categories within the Indian cuisine North

Indian food, West Indian food, South Indian food and the Fast Indian food.

(Indian Food Forever Webesite, 2008) About 35% of the population in India

face the problem of food scarcity as they consume less than 80% of the

minimum energy requirements. According to a census around 50% of the

world’s hungry live in India. (Shukla, 2008)

B. Housing and Clothing – In the rural areas in India people live in small

villages and build their houses close to each other so that they can help each

other. Whereas in the urban areas, which are more developed we see people

living in buildings and villas. (Michigan State University Extensiion, 2000)


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As far as the clothing is concern, the traditional Indian dress for women is Sari

for women and Dhoti and Kurta for men. Senior executives in India wear

suites at work and women wear Salwar kameez or suites for work. (Maps of

India, 2009)

6. Language:

India has 1652 languages spoken within the country. (CLP, 2009 ) The

popular languages spoken within the country are Hindi, Sanskrit, English, Bengali,

Gujarati, Kannada, Kashmiri, Malayalam, Marathi, Tamil, Oriya, Telugu, Punjabi and

Urdu. (Oracale Education Foundation, 2009) Even though Hindi is the local language,

the language Hindi also differs from state to state Mumbai Hindi would differ from

Delhi Hindi.


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II. ECONOMIC ANALYSIS

1. Introduction

The Indian economy is primarily agricultural with 75% of the work force

depending on agriculture for its livelihood. The services sector is also an important

contributor to growth and employment in the country. Indian industries include

textiles, chemicals, food processing, steel, transportation equipment, cement, mining,

petroleum, machinery and software. India is an open market economy whose growth

has accelerated due to the liberalization in the 1990s which resulted in the inflow of

foreign investment and boosted foreign trade. (India Online, 2010)

2. Population

India is the second largest populated country in the world after China. As per

the July 2010 census the population has increased over 1.15billion out of which

531,277,078 are Males and 495,738169 are females. Migration rates: -0.05

migrant(s)/1000 population (India Online, 2010)

Year Population growth rate Percentage Change Year of Information

2008 1.58 2008

2009 1.55 -1.90% 2009

2010 1.41 -9.03% 2009

3. Economic Statistics And Activity (CIA - World Fact Book, 2009)

GDP (purchasing power parity)= $3.56 trillion (2009 )

GDP (growth rate)=6.5% (2009)

Unemployment rate= 10.7% (2009)

Population below poverty line= 25% (2007)

Inflation Rate = 10.7% (2009)

GDP composition by Sector as per 2009:

• Agriculture- 17.5%


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• Industry: 20%

• Services: 62.6%

4. Agriculture and Industry

The major agricultural products in India are rice, potatoes, onion, oilseed,

wheat, tea, cotton, jute, sugarcane, lentils, onions, ; dairy products, sheep, goats,

poultry; fish. Major industries in India are textiles, chemicals, steel, food processing,

cement, petroleum, pharmaceuticals, software, transportation and mining industry.

Industrial production Growth rate: 7.6% (2009) (CIA - World Fact Book, 2009)

5. Export – Import

India export includes petroleum products, machinery, iron and steel, spices,

apparel, precious stones and chemicals. Exports in India in 2009 accounted to $165

billion and the major export partners of India are: UAE-12.3%, USA- 11.7%, China-

5.4% and Singapore- 4.5%.Major Import commodities: India mainly imports crude

oil, machinery, fertilizer, chemicals, iron and steel.Imports in India accounted for

$253.9 billion and the major Import partners of India are: China- 10.8%,Saudi Arabia-

6.9%, USA- 6.7%, UAE-6.7% and Iran-4.2%. (CIA - World Fact Book, 2009)

6. Transport System

The transport system in India is used by millions of people and is extensive

and large. India has a well developed Airways, Railways and Roadways. The local

transport in India is well developed and comprises of Bus, Taxi, Autorickshaws,

Cycle rickshaw. Metro; which is present in Kolkata and New Delhi and under

construction in Mumbai. (India Travel Agent, 2010)

7. Communication

Communication system in India is well developed and there are various forms

of communication used across the country. The most popular form of communication

is the mobile phone which is used extensively throughout the country. The Public

phone booth (PCO) is also very commonly used which enables people to make local,


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STD and even ISD calls. One can also use postal services, Cyber-cafes as a means of

communication in India. (India Travel Agent, 2010)

8. Media

Media plays a vital role. Different forms of Media available in India are,

Television, Radio, Print and Internet. With a literacy rate of 52% there are 398 daily

newspapers being circulated in the country. There are 562 television stations and 312

radio stations across the country. 4,600,000 people have personal computers with

above 5,000,000 people have access to the Internet. (Advameg Inc, 2010)


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III. MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS

1. Introduction

In 1969, Long John Silver’s was incorporated by Kentucky, U.S.A. The theme

behind the restaurant was stimulated by Stevenson's classic story Treasure Island. The

name itself is adapted from a pirate known as Long John Silver in the story. The

company is a quick-service seafood restaurant. In May, 2002, Long John Silver's was

acquired by Yum! Brands, Inc and became a part of the brand family along with Taco

Bell, Pizza Hut, KFC and A&W Restaurants. The meals that the restratuant serves are

batter-dipped fish, chicken and shrimp, along with fries, coleslaw and hushpuppies.

Recently the company has also introduced a new Freshside Grille menu, which has a

delicious premium seafood selection that is more toward the health conscious

consumer. (Long John Silver's, 2008)

2. The Product

A. Evaluation – Long John Silver’s is a fast food sea food restaurant. Based on

the five product characteristics that influence how attitudes are created

towards new products, let see where Long John Silver’s Stands

a. Relative Advantage – Only fast food restaurant that provides a variety of

sea food items along with chicken and vegetarian food.

b. Compatibility – The food severed at Long John Silver’s is compatible

with diet and lifestyle of population in the metropolitan cities in India.

c. Complexity – Long John Silver has a low level of complexity.

d. Trialability – The Company is service oriented, and thus trail is not

possible. The first experience the consumer faces with the restaurant

would rate the consumer’s adaptation to Long John Silver’s.

e. Observability – Long John Silver’s is complete observe product. Here

consumers can come into the restaurant observe the ambience. Taste the

food on the menu and also experience the service.


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B. Problems – Based on the above evaluation, the major problem Long John

Silver’s would face would be that the restaurant cannot give a trial for the

service and food it renders. The restaurant may also have a resistance from

consumers who are Vegans as it portraits it’s self as a sea food restaurant.

3. The Market

In India we plan to launch, Long John Silver’s in the metropolitan city

Mumbai.

A. Description of the Market

a. Geographically – Mumbai is situated on the western cost of India. The

city is surrounded by water on three sides. Mumbai has an area of 440

sq km. The city faces the Arabian Sea. The city is divided into two

parts – Mumbai Suburbs Area (North) and Mumbai City Area (South).

(Maps Of The World, 2008)

b. Transport and Communication – All forms of transport are available in

the city of Mumbai. Mumbai has both an international as well as a

domestic airport. Situated on the cost of India, Mumbai also has an

access to water ways. Rickshaws, cars, two wheeler and buses are the

road vehicles one will see within the city. The Mumbai railway system

is regarded as the lifeline of the city. All modes of communication are

also available in Mumbai. One can choose from an array of electronic

communication systems like the telephone or e – mail to postal

services.

c. Consumers Buying Habits – The Indian consumer is shifting from

consuming typical Indian foods in restaurant to consumption of foreign

food outside their home. Moreover due to the fast moving life on

Mumbai, consumer prefers which are fast and light food. Affluent and

middle class Indian along with the Indian youth and children has a

demand for snack food. When it comes to fast food service in India,

mostly one will see families, working people and college students in a

restaurant. Consumers prefer a fast food restaurant where they and


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relax and dine. Due to the increase of mall in the city, consumers

prefer a place where they can dine after they have shopped within the

mall. Thanks to the media Indian consumer habits are also becoming

more westernised day by day. (USDA, 2008)

d. Distribution – The fast food service is typical distributes it product

restaurant outlets in Mumbai and across the world. In Mumbai most of

them are franchises.

e. Advertising and Promotion – In Mumbai, a Fast Food Restaurant used

all kind of media to reach its target consumer. The most commonly use

ones are the television, radio and local newspapers. Promotions

generally used would be ‘Buy One Get One Free’, ‘Value Meals At

Discounted Prices’ and ‘Coupons In Local Newspapers’. Word of

mouth is also used as a promotion strategy.

f. Pricing Strategy – The average customary mark-up of the for the

Indian fast food industry is normally 45% of cost + 12% VAT.

(USDA, 2008). Types of discounts available are student discounts,

happy hours, and value meals.

B. Competitors

The two major competitors for Long John Silver’s in Mumbai are Mc

Donald’s and KFC

a. Mc Donald’s

Mc Donald’s price for it various product ranges from Rs 15 – Rs 60,

depending on the product brought. Their value meal ranges from Rs 85

– Rs 150 depending on the meal. All products are subjected to a 12%

value added tax Their main product is given on the table below. Mc

Donald’s advertise mainly on through television on kids and family

channels. The company also advertises through newspapers and the

radio. The value meals that the company offer are their promotion


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scheme along with the Happy Price Menu – offers certain products at

affordable price of 25 Rs. In terms of distribution the company only

sells through it franchisee outlet. (Mc Donald's India, 2010)

Brand Name Mc Veggie Mc Chicken Mc Fillet - O

- Fish

Mc Curry Pan

Feature A 100%

vegetation

patty Burger

A Chicken

patty Burger

A fish cutlet

Burger

Backed dish with

curry and herbs.

Chicken is added to

the non vegan one.

Package Wrapped in

paper

Wrapped in

paper

Wrapped in

paper

In a paper box

Beside the above core brand, Mc Donald’s Offer various add on like

French Fries , Potato Wedges, Hot and Cold Beverages and Deserts.

(Mc Donald's India, 2010)

b. KFC

The price range of KFC products is between Rs 56 – Rs 190 depending

on the product purchase. All products are subject to a 12% values

added tax which is exclusive of the price. Their promotion and

advertisement strategy is similar to Mc Donald’s. KFC advertises on

the television, local and national newspapers as well as on the radio.

KFC has special discounts for college students and also for call centre

employees. Like most of the fast food restaurants, the also distribute

their products through franchise retail store under the name KFC.

Beside the products in the table below, KFC offers a variety of add

on’s like Fries, Salad, Desserts, Corn, Rice, Milkshake (KFC Krusher)

along with other beverages and Veg Fingers. (KFC Restaurant , 2008)


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C. Market Size - The market size has had a 42% growth in the previous five years.

The fast food industry sales estimates for 2010 is seven lakh crores rupees

compared to its five lakh crores rupees annually estimation in 2008 by Indian Food

Report 2008. Estimated sales for Long John Silver’s in 2011 would be five crores

(estimating that the individual in Mumbai eat out 6 times a month with majority

spending 150 – 200 Rs per outing). (Nahar, 2010)

D. Government Participation – The government agency, which can help establish

Long John Silver’s in Mumbai is the Food, Civil Supplies and Consumer

Protection Department of the Mantralaya in Mumbai. The other is the Maharashtra

Food and Drug Administration who is actively participates to promote hygienic

and safe food products. Documents are also need to be submitted with local health

department and also with the fire brigade. Regulations which need to be followed

all stated in the Indian Food Safety And Standards Act Of 2006. (Gartenstein,

2008)

Brand

Name

Chicken Delight Zinger Vegie Feast Chana Snacker

Feature It’s a range of fried

chicken. Available in

three types- Hot and

Chirspy, Original and

Boneless.

A crunchy

chicken breast

with lettuce and

mayo in a

sesame bun.

A vegetarian

patty with salad

and mayo in a

bun.

A chana patty

topped with

long island

sauce and slad

in a bun.

Package Paper Bucket or Box

(depending on the

quantity)

In a paper box In a paper box In a paper box


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IV. PRELIMINARY MARKETING PLAN

1. The Marketing Plan

A. Marketing Objective – The market has been segment for the purpose of target

market. We mainly are targeting the seafood lovers in Mumbai. Along with

that we have three main target markets - The family, working people and

College Students. Our expected sales for year 2011 would be Rs 3 Lakh

Crores. After eliminating the total cost of production, we would be left with a

profit estimate of Rs 1 Lakh Crores. At the start our market penetration would

be low, but we plan to increase it by 2012.

B. Product – Our core component of the product is the food we serve along with

our hospitality. In terms of the core product we have modified the Menu to

attract a more Indian crowd, the menu will include some vegetation burgers

and other vegetation add – ons. We plan to introduce a little spicier brand

along with the original as Indian love spicy food. In terms of hospitality, we

will have to appoint staff would know the local language plus English. The

packaging component of our product would be the brand Long John Silver’s

itself. This component will also be modified in terms of price of the products,

it would be much cheaper in terms of dollars in India, and the food would be

wrapped in paper and served in paper plates. The supported services

component of the product would be the employees, the ambience of the

restaurant, along with local food suppliers and local logistic company

Radhkrishna Foodland Pvt.

C. Promotion Mix – For Long John Silver’s In India we has chosen the following

Promotion Mix

a. Advertising – The objective of our advertising is to reach out to all to

the maximum number of household and individuals in India. Our

media mix will consist of television and local newspapers and

internet blogs. We plan to have an account with Madison

Communications India, in order to plan and promote our advertising

campaign. The main message we would want to incorporate that –

Yo Ho Ho! Come to Long John Silver’s – The Family Seafood


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Restaurant. we want to incorporate the pirate feel into the message,

so that we are still true to our identity. The cost of advertising in

India for a fast food brand is approximately Three Lakh Rupees

annually.

b. Sales Promotions – The main objective of John Long Silver’s Sales

Promotion is to stimulate consumers to enter our restaurant and to

purchase of our products. We plan on using premiums as a

promotional strategy. Plan on giving Pirate goodies with our Kids

Treasure Meal. These goodie will change on a monthly basis. At the

initial stages, we plan on having Buy-One-Get-One-Free on the next

purchase. Having vouchers and coupon printed in the local

newspaper during initial stages and festive season. Setting of food

stalls at local college festivals like Malhar of St Xavier’s College,

Andreamms of St Andrew’s College, Umang of N. M. College etc.

This will help us to attract college student and also give our target

market a taste of the products served. The cost having such a diverse

sale promotion strategy would be approximately Two Lakh Rupees

annually.

c. Personal Selling – Since we are a part of the service industry, most of

Long John Silver’s personal selling strategy would be with its staff

directly speaking and interacting with the customers and it will on a

continues basis. We would rely more on personal sell than the other

promotional mixes. We will have to train and educate our staff on

how to meet and match consumers need along with how to interact

better. Since training and development of employees is important, in

order to get the best out of our employees we would have to have a

customer satisfaction training programme annually, which would

incure a cost of One Lakh Rupees annually.

D. Distribution – From Origin To Destination. In this section we have supply

chain and the logistic part which also plays an important role in setting up

Long John Silver’s in Mumbai. The initial equipment to start the restaurant

like the kitchen equipment would be got form Wang Professional in Delhi


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(Contractor for Yum International). (Wang Hospitality Equipment Pvt. Ltd,

2005) .The fastest and the cheapest way to get the equipments to Mumbai

from Delhi would be through Railways. The document required would only be

a commercial invoice. Other supplier would be Dhruv Seafood, Gujarat for

Tuna fish and prawn, and Dosdal Coperation a franchisee Yum International

for other food product. We plan to outsource our logistic and supply chian

activities to Radhakrishna Foodland Pvt. India as it would be advantaged to us,

as the company provides total support across the complete supply chain to

quick service restaurants (QSRs) (Radhakrishna Foodland Pvt. Ltd, 2009)

E. Channels of Distribution (Micro Analysis) – Long John Silver’s will only

distribute products and services only at its retail outlet. Our outlets are Fast

Food Restaurant Outlets. Initially we plan to open two in Mumbai. One at

Colaba – Causeway and another at Bandra – Pali Hill. Depending on the

response we plan to open more outlets across India. We plan of having a

Retail Mark-up of 50% of total cost of product. In all our outlets we shall only

operate on cash sales, purchases will be also on debit cards but not credit

cards. Each outlet will have a medium size operation initially. We will

increase the scale of operation in the future. Radhakrishna Foodland Pvt. India

shall take care of our warehousing and logistic needs.

F. Price Determination – while determining the price, we would need w consider

cost of raw material which is 45% of total production cost, wages to

employees which is 15% of total production cost and transport, insurance and

warehousing to Radhakrishna Foodland Pvt. India which would be 40% of

total cost. Our retail price would be 50% of total cost plus the 12% value

added tax of the government. Thus our profit margin is equally to 50%.

G. Methods of Payment – We shall only accept cash payment from our

customers. To our supplier we would open accounts with them and made

payments on a monthly basis.


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2. Budget

In order to promote Long John Silver in India, we would approximate need to

have the following budget. The entire budget is an estimate for the first set up year

of Long John Silver’s and that would be 2011.

3. Resource Requirement

Based on the above budget, our finance requirement is 1,40,00,00,000

Rupees for the year 2011.this is only our intial requirement. We would require

a personnel strength of 300 employees overall. Our production capacity will

be medium for the start up year and thus would be about 18,00,000 a year.

Particulars Amount

(00,00,000 Rupees)

Selling Expense 5

Adverting Expense 3

Promotion Expense 3

Distribution Expense 4

Product Cost 100

Other cost 25

Total 140


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V. REFERENCES

Abhi. (2004, November 23). India's Hinglish Subculture - Sepia Mutiny. Retrieved

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