VELLORE INSTITUTE OF TECHNOLOGY,

VELLORE

COURSE: LEAN STARTUP MANAGEMENT

(MGT1022)
SLOT- TE1

J- COMPONENT

PROJECT FINAL REPORT

“FITMESS”

SUBMITTED TO: SUBMITTED BY:

DR. MURUGAVEL R ANURAJ SRIVASTAVA (17BCE2006) TH/REPORT
VEDANT PRASAD NAYAK (17BCB0138) MVP/VP
SUDHEERKUMAR VIYAA (17MIS0230) KP/KA
SHARMA RAJ RAVISHANKAR (17BIT0010) MS/CD
AYUSHI RAWAT (17BEC0034) COST/REVENUE
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 ACKNOWLEDGEMENT

We would like to express our deep sense of gratitude to Professor

Murugavel R., for giving us An opportunity to work on a project that
helped us understand better and apply the concepts that we have
been learning. It further helped us explore novel concepts beyond the
traditional curriculum. We would like to thank her for the continuous
and constant support for helping us with the project throughout the
semester.
Also, we would like to thank our respected Dean for the opportunity
to carry out this interesting and educational project.
We would also like to thank Vellore Institution of Technology for giving
us an opportunity to carry out this project.
We hope that this project lives up to the professors’ expectations.

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 TABLE OF CONTENTS

Title Page No.

Abstract 4
Business Canvas Model 5
Customer Segment 6
MVP 7
Marketing Plan 8
Customer Relationship 9
Channels 10
Operational Overview 11
Financial Model 14
Future 17

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 Abstract
It is a well- known fact that our nation India is a land of diversities; the language, culture,
traditions everything changes every 30-50 km. A large part of this is the cuisine, the food
and eating habits of people belonging to any particular area. Another well- known fact is
that we Indians love food! There are people who eat to live but we live to eat.
However, no matter what type of food you like and how much love it, no one wants to stay
unfit. In our times when there are many diseases because of the increasing unhealthy eating
habits of people, there has been an increasing trend amongst people towards dieticians,
nutritionists and gymnasiums. People are spending huge sums of money to stay fit. While
some are going to reduce their weight, some want to increase it and want to beef-up their
body to look muscular.
Surrounded by all this health-unhealthy chaos, come the college students. We are the
section of society which is in most need of healthy food choices. The mess food might be
cooked under sincere supervision and is freshly cooked but
a.) Students don’t like its taste,
b.) It’s not necessarily healthy and
c.) It doesn’t meet every individual’s requirement.
Because of these reasons, students are shifting towards tiffin services and online food
delivery services which partner with various restaurants. But this, on the contrary, might
have a more negative impact on their health as you don’t know how the working conditions
are there? How the food is being prepared? Are there any necessary hygiene measures
followed?

Problem Statement

How about we find a solution that merges the problem with its alternative to find the best
possible solution. What if the food is prepared in the mess under same supervision but is
also monitored by nutritionists and dieticians over the quantity being served? This is the
main idea behind our Lean Start-Up model: ‘FIT-MESS’. We will change how messes are
perceived by students; because now, messes will give you the food which is suitable to your
fitness needs and since it is healthy and meeting your requirements, it will be made tasty as
well.

In the following sections, various components of the business model are described:

 Market Structure
 MVP
 Financial Model

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Business Canvas Model

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 Customer Segments

 Students
 Gym Enthusiasts
 Faculty
 VIT Staff
 Health conscious
 Benefits Sought: Weight loss , Weight gain , Balanced Diet

Reasons for targeting these customers:

After conducting research with the students it is found that this segment is potentially very profitable. Many
students in VIT are gym enthusiasts and almost every student is concerned with their health. Also the faculties
and other working staff prefer a well balanced diet to maintain fitness.

Target Customers:
Students:
In VIT currently there are around 28000 to 30000 students studying . Most of these students are
staying in hostel . Many of the students are generally gym enthusiasts before joining the university.
They are into body building and are health conscious . After joining VIT they register for Indoor Gym
provided as a hostel facility . These students influence other students to join the gym and work on on
their physique and maintain a good physical personality . Also many other students workout on their
own in stadiums . A research has found out that for maintaining physical health 20% role is performed
by workouts . 80% of the results are determined by the diet . If the diet is not well balanced then the
workouts would not produce the desired results . The students require a sufficient amount of proteins
to repair and build the damaged muscles . There are also students who want to lose or gain weight . In
current mess system the diet is not planned according to the workout needs or body goals of the
students . Thus students are the greatest target segment for growth .

Weight conscious people:

Focus some of our menu design and marketing efforts on people who are trying to maintain or lose
weight. If we can offer delicious meals for a reasonable calorie count, we will be able to give hungry
dieters a way to indulge their desires for scrumptious restaurant cuisine and continued weight loss at
the same time.

Faculty and Other Staff:

There are many faculties and other staff accommodated in hostels . They know the importance of a
well balanced diet and are therefore a target segment for the growth of the start up .

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 MVP

‘FITMESS’ is a chain of in hostel mess targeting and set up especially for fitness freaks,
health conscious students, people trying to lose some pounds, etc. Regularly hitting the
weights to reach your physique goals only helps you with a part of the process. What most
people aren’t aware of is that diet is the most important part of this transition. The ratio of
diet to workout is 70:30. Without a proper diet a person can never get the desired results.
The primary goal of our mess chain is to provide every health-conscious student with the
option they are looking for. The food that is served in a regular mess is not viable for
someone looking for results because the main aim they generally have is to provide
students with the cheapest quality of food at a reasonable rate not taking into account the
health factor. Their food is primarily carbohydrate rich which is one of the major differences
when compared to our chain.
FITMESS will primarily focus on the protein intake of its customer also taking into account
the diversification of them. Some maybe vegetarian, some non-vegetarian, some wanting to
bulk-up and some wanting to bulk-down. The mess will provide a menu catering to the
needs of the customer. It takes into account the calorie counts and maintains the calorie
deficit required if a person wants to lose weight.

Features:

 Provide every health-conscious student with the option they are looking for.

 All the food items served will be sugar-free.

 Providing a menu catering to the needs of the customer after consulting a

nutritionist.

 Assuring hygiene.

 Ensuring that its affordable

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 Marketing Plan

The health meal food market comprises a vast range of consumers. To enter the market we will be
targeting one of the more specific types, the health conscious students market. To enter the health
meals food mess FITMESS will be concentrating on the healthy and nutrition packed breakfast ,
lunch , snacks and dinner . Also the company will implement a very aggressive advertising campaign
in order attract students to the mess..

Targeting:
We will divide the market into segments and focus on students , health conscious people and people
with diet restrictions.

Student Market :
Product
Customized healthy meals
Core product characteristics:
The customer buys the following benefits:

 Food

 Healthiness and a healthy lifestyle.

 Sense of self-worth

 Image

Location:
FITMESS is a mess targeting VIT students so it will be established within the university itself in the
hostel premises .

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 Customer Relationships

Customer-relationship management is an approach to manage a company's interaction with

current and potential customers. It uses data analysis about customers' history with a
company to improve business relationships with customers, specifically focusing on
customer retention and ultimately driving sales growth.
We improve the customer relationship in the following ways:

Monthly Feedback:
We will provide a portal for the students to provide a feedback at the end of every month
to get their views on the food. We will then improve our service based on the feedback we
get.
Optimize the menu:
One of the main problems with regular mess is that the students often get bored with the
same food dishes every month. To tackle this problem the menu will be optimized every
month keeping the students needs in consideration.
Providing Best Quality Food:
We will do our best to provide food of best quality possible in terms of taste and nutritional
value. This will help us to retain the customers at the end of every month.

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 Channels

Promotion:
The new product will need to be ‘pushed’ into the market with aggressive advertising on a number of
media. The target consumer’s awareness of the product will be enhanced by strong images and
concepts relating the product to health, fitness and a sense of status.
The media used will be:
1 . E-Mail :- VIT University has its own official mail services and each student has their own e-mail
id . Whenever there is a new establishment in the university a mail regarding the same is sent to all the
students . This can greatly boost the promotion for the product.
2 . Social Media :- Social media can prove to be a useful source of market information and a way to
know about the customers opinions. There are many social media pages on platforms such as
Facebook and Instagram which are administered by the VIT students . We will contact the admins of
these pages for the promotion of the product on their page as these pages are followed by thousands of
VITians .
3 . Leaflets :- The leaflets regarding the product and the benefits will be made and handed over to
students via different sources .
4 . Sponsored advertisements through Club Events :- Many clubs conduct events on a weekly basis.
There are events taking place almost every day. We will advertise about the mess through these
events.
5 . Posters :-Posters will be used to give a glance about the product to the students.

Delivery:
Since our MVP is to provide food in a hostel mess, the delivery channel for the product will
be hostel mess of VIT.

After Sales:
The channel used for maintaining the feedback from users to build stronger Customer
Relation Management, we’ll be taking a feedback from the students at the end of every
month.
Moreover, there will be a suggestion book kept in the mess daily so that students can
recommend and suggest any changes in the food/menu.

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 Operational Overview

KEY PARTNERS

 Caterers

 Nutritionist

 Unemployed people – for cooking, serving

KEY RESOURCES

 Financing

 physical: kitchen,

 food inventory,

 equipment for preparation,

 Unemployed People

KEY ACTIVITIES

 Provide every health-conscious student with the

option they are looking for.

 Providing a menu catering to the needs of the customer after consulting a

nutritionist.

 Assuring hygiene.

 Ensuring that its affordable

PART---1 (BEFORE LAUNCH)

▪ Concept and business planning: carrying out marketing research to preparing a marketing
plan and all up to financial projections with detailed predictions of how financial results will
be achieved.
▪ Development: In the development stage, planning and discussing stops completely, and
hard work begins. A functional organization is formed in the company, where development
engineers take care of product manufacture, marketing and sales implement various focus
groups, prepare marketing materials and similar.

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▪ Testing: Passing into the testing stage includes collaboration with a small group of users
whose task is to test the product or service to see if it works perfectly. Marketing materials
are completed, suitable external co-workers are hired, such as a PR agency, new people
responsible for sales are employed, and everything is finally prepared for the first real
product sales on the market.
▪ Market launch: In the last stage, the product/service is launched on the market, with big
costs of marketing and advertising as well as opening events, the purpose of which is to
create enough demand.

PART—2(AFTER LAUNCH)

 Giving some time to the product/service to actually work out in the market and
collecting data on the product.
 Determining the response to the product/service from the data we collected.
 Improving our services and launching a new version of our product.
 Repeating the above mentioned three steps till we are at a sufficient level of
functionality and services.

LOCATION:

Location is one of the most important things to consider when starting up a new venture
or small business. For businesses that require high student engagement location is
crucial to attract students, managing operations with caterers and even staying ahead of
the competition. Businesses that fail to recognize the importance of the cluster effect
and placing their business in a centralized hub are limiting more than half of their
addressable market.

The in-hostel mess should be introduced in such a place which is near to the hostel gym
so that is easily accessible for the fitness conscious students as they can have the meal
any time before or after the gym.

SUSTAINABLE COMPETITIVE ADVANTAGE:

‘FITMESS’ is a chain of in hostel mess targeting and set up especially for fitness freaks,
health conscious students, people trying to lose some pounds, etc. Regularly hitting the
weights to reach your physique goals only helps you with a part of the process. What most
people aren’t aware of is that diet is the most important part of this transition. The ratio of
diet to workout is 70:30. Without a proper diet a person can never get the desired results.

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FITMESS will primarily focus on the protein intake of its customer also taking into account
the diversification of them. Some maybe vegetarian, some non-vegetarian, some wanting
to bulk-up and some wanting to bulk-down. The mess will provide a menu catering to the
needs of the customer. It takes into account the calorie counts and maintains the calorie
deficit required if a person wants to lose weight.

As we can see the revenue generated in food market has been increasing at a very fast rate,
so this makes it very profitable if we can understand the needs of the customers,
understand the competition and devise our service so as to get the maximum out of the
market.

What college students do is pay for their mess food which is a basic compulsion for them,
and for maintaining a particular protein-rich diet they have it from somewhere else which
increases their expenses and hence, by introducing in hostel diet mess we can basically cut
off those extra expenses.

Generally, this is the trend that college students prefer gyms around restaurants which
provide them diet-based foods so by introducing an in-hostel diet based mess,mess, the
college can lure the students into taking up in hostel gyms thereby,promoting the college
facilities.

INNOVATION FACTOR:

• An option of customization will be made available to all the students. Students can
choose a particular food item from the allotted menu which is possible for the college to
provide.

• There will be separate stations for vegetarian and non-vegetarians.

• Hygienic assurance will be provided by the college authorities

• Also,various payment methods like Debit/Credit Card,Cash,UPI or mobile wallets will be

available, and a separate monthly/annual credit system will also be offered to the
students and if they are unable to return the credits then the credits will be adjusted in
the college fees.

• A mechanism will be made for the feedback of food given in the mess so that certain
improvements can be made in the food.

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 FINANCIAL PLAN

Six Months Projection:

JAN FEB MAR APR JULY AUG

Cash Inflows

Investment 5,00,000 4,80,000

FEE 14,00,000 12,00,000 13,00,000 14,00,000 12,00,000 10,00,000

Total Inflows 19,00,000 16,80,000 13,00,000 14,00,000 12,00,000 13,00,000

Cash outflows

Labour & Cook 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000

Equipments 1,30,000

Groceries & 1,50,000 1,50,000 1,50,000 1,50,000 1,50,000 1,50,000

Raw Food

RENT 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Nutritionist 30,000 30,000 30,000 30,000 30,000 30,000

Total outflow 6,10,000 4,80,000 4,80,000 4,80,000 4,80,000 4,80,000

NET 12,90,000 12,00,000 8,20,000 9,20,000 7,20,000 8,20,000

CASHFLOW

Balance at the 0 12,90,000 24,90,000 33,10,000 42,30,000 49,50,000

start of month

Balance at the 12,90,000 24,90,000 33,10,000 42,30,000 49,50,000 57.70,000

end of month

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COST:

There are different categories of mess in a college so this gym affiliated category will be
priced keeping in mind the minimization of cost and value for money for quality food. Also,
various payment methods like Debit/Credit Card, Cash, UPI or mobile wallets will be
available, and a separate monthly/annual credit system will also be offered to the students
and if they are unable to return the credits then the credits will be adjusted in the college
fees.

 EXPENDITURE:

The Physical amenities can be divided into two parts - Fixed Spending and Variable
Spending.

Fixed Spending – It involves the costs of those amenities which are required at a regular
basis and its amount is dependent on the demand of the customer

Variable Spending – It involves those amenities which are not required now and then
and is dependent on the demand of the customer .

FIXED SPENDING:
Particulars Amount

ONE TIME PAYMENT:

Utensils 90,000

Furniture expense and furnishing 40,000

Rent 80,000 per month

NUTRITIONIST/DIETICIAN 20,000 per month

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VARIABLE SPENDING:
MONTHLY PAYMENTS:

Grocery 1,50,000 per month

Electricity and other Charges 20,000 per month

Workers and Cook 2,00,00 per month (est)

Funding:
Following are the ways by which our model can get funded:
1. Loan from Bank worth 9,800,000 Rs.
2. Family, Friends: - This will be the most probable source of our funding as
there is considerably less cream for the investors to invest in initial
stage. It would take our close ones to trust at this stage.
3. Hack-a-thons: - Yes this can sound silly but developing our product in a
limited amount of time and wining the price money not only gives you
the funding up to an extent but also provides us with good network
which further can be used as a contact to request them for some
business.

Future
4. We came to an understanding that such models often fail because they implement
all the stages of the ultimate goal simultaneously. But, we should remember that the
idea behind lean start up is to start a business with minimum risks.
5. Therefore, we will first start out by just with the mess for bulking down the weight.
And then depending on the success, we will bring out another unit for beefing up the
body.
6. Continuous feedback from students will help us in making it a successful business
venture.

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