A NEW WAY FORWARD!!!!

SALES STRATEGY OF DISH CENTRAL KITCHEN

Presented by:Anshul Agarwal-01

Ashish Bansal-03Aditi Bihani-05

Vikram Bothra-06Molshree Gattani-11

Rahul Goyal-12Vandana Jalan-14

Anuj Karwa-15Rahul Rathi-21

Gaurav Surana-30

2,000 to 20,000-How to achieve???

Let us see how Dish central can Achieve it……………

BON APPETITE!!!!!

Catering is not only about appealing to the taste buds of the individual but also to all the other five senses of a human being

With the right atmosphere, it is possible to appeal to all of these senses making the occasion unforgettable

Of course, beautifully prepared food can alone do this, but now-a- days, caterers want to reach out to the customers in all possible ways and bowl them over.• The venue • The menu • The décor

Whatever may be the occasion; a bachelor’s party or the annual meeting of a corporate; deeply satisfying the guests is the sole aim

Catering Industry- Overview The catering industry is a staggering $5 bn with

around 10,000 companies operating but no companies dominate

It is highly fragmented: top 50 companies account for less than 15% of industry revenue

Demand is driven by corporate profits & consumer income

The industry is labor-intensive: average annual revenue per worker for a typical company is just over $40,000

Major services include: On-premises catering: meals prepared, re-cooked & served at the customer’s location Off-premises catering: food prepared away from the premises where it’s served (in a

central kitchen)

Off-site catering represents 45% whereas On-site catering enjoys 40% of the market. The remaining services include alcohol sales & facility rentals

( Source: www.hoovers.com)

CATERING INDUSTRY…CONTD…

Worldwide big players in this segment are Centerplate, Compass Group USA, Wolfgang Puck catering, Sodexo USA, etc.

The profitability of individual companies depends on cost controls and effective marketing

Large companies have advantages in offering expanded services such as facilities management, room rental, and entertainment

But small companies can compete effectively by serving small groups and offering personalized service

INDIAN CATERING INDUSTRY

Catering industry in India is worth about Rs 50,000 crore and is growing at more than 20 per cent annually

Food catering industry in India is dominated by more of unorganized players

National, Regional & Local players are present in the level-playing field

Organized players form a very insignificant part- around 3%

INDIAN CATERING INDUSTRY..Contd…

Players like RKHS, Shivas Hoteliers & Caterers, Mars Hospitality Group have a stronghold in the unorganized sector

But due to the dynamic nature of the industry, big MNC players gobble up the local players & thereby create economies of scale- RKHS being acquired by Sodexo Inc.

DISH CENTRAL KITCHEN A Wadhwan Holdings Group company

specialized in food catering industry It has a world-class dedicated central kitchen in

Andheri(E),Mumbai A kitchen that spans over 16,000 sq.ft., and is

capable of churning out 20,000 meals per day A professional team comprising of top brass

chefs, and a team of nutritionists An R&D kitchen for conceptualizing new recipes

that tantalize the taste buds while adhering strictly to nutritional standards

A fully equipped testing lab with a dedicated microbiologist and hygiene specialist

They have been awarded HACCP certification & ISO 22000 quality certification

MODEL OF DISH CENTRAL KITCHEN

OFFERINGS

• Dish Central offers: Regular offerings-

Breakfast/Lunch/Dinner Executive meals for Senior Management Outdoor Catering Corporate gifting/Festive Orders Confectionaries Food Fests Customized banquets- special orders Shape Cakes & Cookies

Target Groups

• Corporate and organizations– Diamond market BKC– BPOs– KPOs– Govt. Offices– Corporate Headquarters (BKC, Nariman

Point etc)• Day Boarding Schools• Airlines• Hospitals• Restaurants & Coffee Shops

– Local Bakeries (CCD- strategic customer)

Customer Classification

SWOT ANALYSIS

SALES & MARKETING STRATEGIES

THE “AIDAS” PERSPECTIVE

Securing AttentionThe company can promote its offerings

through:• Corporate Parties/ events/ gathering• Outdoor catering : Wedding, Festivals, New

year parties, Ring ceremonies, Birthday Parties

• College / School Fests• Food Festivals & Trade Fairs• Clubs & Associations• Tie ups with Banquet Halls & food facility

providers

Securing Attention

Spread awareness- If you differentiate you need to make your customers aware

Outdoor catering Food Fests Direct Mailers Communicate about their

certifications and standards. Own Website of Central Kitchen and

online catering to customers

Corporate and Organizations Client Counselling- one to one selling Telecommunication Corporate Parties Trade Fairs and seminars Direct Mailers

Day Boarding Schools

9 to 7 Schools which provide day meals to the students

Tie-ups with such institutions to cater to the students

Spread awareness in school fests and events

Hospitals

The administration staff and the patients

A general customized menu for patients to provide them hygienic and nutritious food

Tie-ups with various hospitals for catering

Special attention to calorie level & nutrition-level of the food

Creating Interest/ Kindling Desire• Offering a visit to Central Kitchen• Customized offerings• Spot offerings at events / fairs• Promotional parties by DHPL• Regular Follow ups• Extensive work on sales lead• Regular communication about new

developments and products & offerings

Inducing Action

Negotiation Deal finalization Closing of sales lead References Start Serving !!!

Building Satisfaction

Continuous feedbacks Improvisation :Designing special

recipes as per customer demands if possible

Theories of Selling

Right set of circumstances“Everything was right for that sale” – Can target schools and colleges because induced buying.

It drives the customers to buy. The salesperson can drive the customers to

buy. e.g.The company official should make the

students aware of “healthy living” and nutritious food and thus telling them about central kitchen and its offerings. Also communicating about their hygiene standards by organizing kitchen tours

Buying Formula The need is there but the buyer is not

sure that he should buy or not…he is contemplating..so the salesman should be good enough to turn the prospective buyer into an actual buyer.

Cash-can be done at the point of sale..as in case of colleges ,day boarding schools, hospitals where the buyer is not sure of the purchase of the product.

Credit- in case of corporates who are looking for caterers but are confused about whom to pick among the many options or the white-gloves service

Buying Formula: understanding need/problems for existing: Their needs should be

understood and met with.(can be done through constant feedback)

For potential customers: give them the best offerings based on the information provided by them.

Should have wide variety in the offerings provided by the kitchen.

Buying Formula: Product/Services

one stop solution for the buyers(right from meals to snacks to beverages)

Should be in constant touch with the client and any complaints regarding the offering should be adhered to.

Buying Formula: Purchase and Satisfaction

Drives: Innate drives: Provide variety in the offerings to satisfy

the innate drives Learned Drives: With the help of state-of- art R&D, new

and better offerings should be made available to the clients to maintain their interest and satisfy the learned drives.

Cues: Product Cues: The meals should look attractive to eat

and also they can harp on the “Hygienic Attribute” of the meals

Information Cues: Increasing Visibility: through attractive advertisements ,direct mailers and website.

Response: At the slightest hint of a negative response from the customer the offerings should be changed in a way that the customer finds it difficult to refuse.

Behavioral Equation

Prospecting

Prospect definitions: Customers with bulk order requirements

Searching out potential accounts: By doing a survey of the market, narrowing down on the prospective customers

Qualifying prospects and determining probable requirements: By interacting with the customers and finding their needs. Helps in further zeroing down on prospective customers

Relating company products to each prospect’s requirement: Customizing the meals as per the prospective customers.

Sales Resistance Obstacles to sales :

Financial Obstacle: if the client budget does not permit him to take the deal you can offer him some discounts based on the order size.

Fixed Mindsets: Prospective customers are too reluctant to change the caterer.

Sales objections Unattractive “Menu”: not providing enough

variety in the menu Not Value for Money food: the customers does

not feel that the offerings is worth the money paid.

Recommendation: the salesperson should be tactical to handle any such situation.

Closing Sales

Low pressure sales: Intrinsic Customers High pressure sales: Extrinsic and

strategic value customers. The salesperson leads the customer to close the sale.

B-MODEL OF DISH CENTRAL

Target Groups Captured For Analysis Corporate Hospital Schools Colleges Production Houses Parties

Corporate Banquet Hall

Price Offering (Rs. Per meal)

Targetting Approx 500 members in a company as a wholeWherein corporate house being 50% - 55% of CK’s target

Targeting 5 Hospitals with an average customer base of 500Low Calorie Food will be served to the patients

Targeting approx 7 Colleges with 250 daily Consumers setting up a sort of canteen where in confectionary items can also be looked upon.Day Boarding School will also be an approach where food is provided by the institute itself.

150 people per production house targetting 5 production house as a whole

Catering Type D and having 4 parties each per SundayTie-Up with Banquets Credit Site

FINANCIAL MODEL

SALES FORECASTING

Forecasting: specific product & target

Why forecast sales? Compare proposed changes to current

results Help set budgets Provide basis for monitoring results Aid in production planning

Considerations in forecasting

Customer behavior (past & future) Competitors’ behavior (past &

future) Environmental trends Product strategies

Customer behavior (future) More and more extrinsic customer are

converted into intrinsic customer As Brand Awareness increases the Brand

loyalty will also increase Availing to choose the full Menu online make

the process faster with better forecast Giving Access with client wise classification

on website helps customer to be more informed about the products they are looking

Providing menu templates for different occasions speed up the process

On line chat interface for better service (also helps in getting feed back )

Creating a image as health conscious and environmental conscious caterer

Competitors’ behavior (future) The main competitors are unorganized

caterers like Radhakrishna , Shiv Sagar caterers

They can also go for HACCP certification and ISO 22000 certification

Tendency of price war to generate high competition

Also there will be more stiff competition in terms of client acquisition

Finding a new USP will be a key aspect for the future market.

Environmental trends

Changing FDA norms should be considered New measures of consumption of fuels Adhering to the norms of department of

environment government of India Perusing to get clean environment

certification from local and international authorities

Preparing food according to seasonal changes

Finding new roots for transportation with better efficiencies

Product strategies

Developing food with high nutritious value (in the R&D center) and making that a USP

Creating a cross selling strategy by bundling of product offering (Combos)

Creating schemes like product of the day

Methods of forecasting

Judgment based Sales extrapolation Customer based Model based

Judgment-based forecasting: qualitative

Jury of expert opinion (most common) Naïve extrapolation / opinion (2nd most

common) Sales force composite (3rd most common)

Sales extrapolation: quantitative

Assumes future will follow on past Moving average (most common quantitative

method) Average of three period sales over time Average of change in three period sales over time

Exponential smoothing Alternative method to smooth data

Regression analysis Forecast sales = a intercept + b slope

(time)

Customer-based forecasting methods

Does not assume future will follow on past

Market testing Market surveys Can be fed into forecasting model

Model-based forecasting methods

Regression with other factors Sales = a intercept + b (advertising) + c

(price) Develop model on half of past data Test model on other half of data `

Forecasting products with new features Show basic product

Ask what they would pay This price may be arbitrary

Add feature: e.g., An added dish Ask what they would pay Follow-up prices are coherent

Add another feature: e.g., An added drink Ask what they would pay

Add another feature: e.g., An added dessert Ask what they would pay

Add another feature: e.g., Another customized product Ask what they would pay

SALES & OPERATIONS JDs

Organizational Chart of DCK

Sales Team

The most important team for a venture like Central Kitchen where our primary aim is to increase sales

They are the boundary spanners i.e. representatives of the company to the clients

Responsible for all selling activities and getting new orders for the company

Integral to increasing the sales

Operations Team Continuous improvement on the basis of the feedback

brought in by the sales personnel and the review of the sales manager

Seek Continuous Improvement by- Maintaining and improving kitchen standards and food

quality Deploying advanced quality control techniques to ensure

the quality of food is always good Work in tandem with the sales and logistics department to

implement the continuous improvement policy The well equipped in-house R&D team should come out

with innovative and delicious recipes to keep the taste buds satisfied

Smooth flow of kitchen functions Appointment of well trained kitchen staff and good shefs

Logistics Team

Inbound Logistics- Should ensure timely availability of raw materials, in proper quantity at the right place so that the kitchen is enabled to fulfill all orders and while doing so ensure that there is minimal waste Co-ordinate with the sales forecasting team and

order the right quantities at the right time Ensure proper storage and warehousing Minimize waste and pilferage by keeping a track of

all incoming inventory, segregating them, weighing them, and sending them to the location where they can be used with minimal lead times

Source good quality materials without comprising on the quality at the best prices

Out-bound Logistics

Out-bound Logistics- Concerned with the delivery of the cooked food at the premises of the client at the right time and in the right shape, quality and minimal time so that the consumers are satisfied

Achieve its objective by Proper co-ordination with the sales personnel who

get the order who would direct them to the client’s premises

Ensure timely delivery of the food and thereby ensure customer satisfaction

Co-ordinate with the operations department to facilitate timely packaging and forwarding of the meals

Sales Job Description

A job description clearly defines what the job is about and what can be expected from the job, and so it benefits both the employer and employee to be clear as to what the job will entail.

A portfolio of job descriptions for each job within the organisation helps to prevent task clashes.

•Recruiting and Training Sales staff•Supervising, Motivating and Monitoring team performance•Allocating areas to sales team•Setting budgets and targets•Reporting back to senior managers•Assist in making database of both existing and prospective clients•Co-ordinate with the departments to ensure a smooth workflow•Maintaining good relations and communication with clients giving them prompt service.•Engage in customer retention activities•Evaluation of performance of the sales team

Job Description of the Sales team Details covered in within a job

description would be:the job titlewho is accountable for the employeethe location of the joba brief description of what the job entailsa list of duties and responsibilitieshours of workworking conditions and pay.

Job Description On the sales front- (for institutional clients)

Make a database of prospect clients Take leads and make calls to clients and seek

their appointment for interview Meet the client to brief him about the product Arrange for a visit to the Kitchen premises for

the decision taker Negotiate and explain company policies on

price and credits Get the order Report to the sale manager Flexible working hours on the basis of number

of appointments per day

Job Description

On the sales front- (promotional activities) Observe corporate party happenings and

seek orders from them Get orders for special marriages and

outdoor catering/look for tie ups with special banquet halls

Arrange for putting up stalls at various fests

Job Description

On the service front- Continuous feedback from clients Handle credit requests and payments Take complaints and grievances if any

and convey them to the department concerned to improve upon them

Co-ordinate with the logistics department to ensure timely delivery of meals to the respective clients

RECRUITMENTS

Should recruit highly skilled and experienced sales managers.

The sales team could comprise high school drop outs with a fluent grasp of english, and can speak hindi and the local language used

The boundary spanners should have a pleasant personality since they would represent the company

Can tie up with some B-schools to hire management students on project basis.

Should try and lure competitors sales staff by providing better incentives

Training of Sales Personnel- “ACMEE” Approach Aim

The primary objective would be develop better communication and negotiation skills within the sales candidate in order to render him presentable and an active order getter

Identify training needs according to the job specification, individuals background and experience

Train sales team in sync with the marketing and sales policies of the company

Identify continuing training needs

Content Extensive knowledge about the kitchen

facilities and standards Detailed knowledge about the diet

features(product knowledge) The markets and target groups to be

catered Company information Skill development and communication

enhancement modules

Method Training method should be pragmatic and

practical. Hybrid of the traditional training model i.e.

lectures demonstrations etc with a focus on communication development through debates, role play, demonstrations etc.

Trainees can accompany sales team member while going for client counseling to gain field experience.

Use of media should be exploited to improve communication skills. Workshops for skill development should be organized

Execution In-house training wing tailored to train the

individuals as per the needs of the organization should be set-up.

Arrangements should be made for practical exposure of the candidate and a module of continuous improvement to be followed

The training personnel should themselves be well trained

The company can also outsource its training facilities to a third party training team

Evaluation Can be done on a performance basis the

key indicator being the number of orders which the trained individual can extract within a particular time frame,

or the number of client visits he/she can arrange to the kitchen premises.

Session reviews should be done on a reward basis

Sales Compensation Plan

Would be based on the company’s general compensation structure

Simple rankingClassification or gradingPoint systemFactor-comparison methodJob Evaluation and sales positions

A performance linked variable component which forms the major part of the compensation

Use of Bonuses would keep employees motivated

More focus on commission with a small amount of fixed remuneration

Motivating and Directing Sales Personnel Motivation

Regular reporting and performance appraisal Reward the best sales person of the month.

Reward would be apart from the commission Maintain harmony within the sales team so

that they work in sync without any conflicts. This would increase performance. This would be the task of the sales manager

Define clear localities for the sales people to avoid internal conflicts which could be detrimental to the sales

Controlling Sales Force

Establishing performance standards. Call frequency ratio Calls per day Order call ratio Number of client visits to kitchen Number of orders

Recording performances Field Sales reports Territorial sales

Evaluating performance against the standards by comparing the actual performance with the standard target

Taking action

THANK YOU!!!ANY QUESTIONS!!!