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PROJECT TITLE
I take this opportunity to express my heart felt gratitude to Mr. Naveen Mathur
Regional Sales Manager, Bread, Cake & Rusk, Britannia Industries Limited for
providing this opportunity to complete my summer training with Britannia Industries
Limited. His guidance made me in tune with corporate world. His team of efficient
colleagues especially Mr. Munish Pal Singh, Manager–Sales & Marketing, Daily
Bread extended full support and cooperation in my internship.
I am also thankful to my faculty guide Ms. Varsha Khattri who provided me the most
needed guidance, suggestions and support to make this project a wonderful reality.
Regards,
Nitin Mishra
2
DECLARATION
I further declare that the information presented in this project is true and original to
the best of my knowledge,
3
CERTIFICATE
I Varsha Khattri hereby certify that Nitin Mishra student of Third Semester of
Masters of Business Administration in the Academic year 2007-09 at Amity Business
School, Amity University, Uttar Pradesh has completed project on “scope of specialty
Bread in Delhi and NCR region” under my guidance for two months.
I further declare that information presented in this project is true and original to the
best of my knowledge.
4
ABSTRACT
By
Nitin mishra
The project is to study the “Scope of Specialty Bread” in Delhi & NCR region. The
Project work includes Primary & Secondary research to analyze the Retailers &
Consumers perception about the specialty bread.
Since it’s a premium product and average population of India lists below the poverty
line .So STP analysis is also done.
Mc Kinsey & Company report on Indian consumers .-2007 states that if India
continues on its current high growth path ,In coming two decades the Indian market
would come across a major transformation .Income level will almost triple and India
will climb from its current position as the 12th largest consumer market to Become
world’s 5th largest consumer market till 2025 . This shows that there is a huge
potential in India for every single product. .
In today’s world, most of the positioning of the product is done through electronic
media. As the product is belong to niche market, proper advertisement plays a crucial
role. Thus some innovative ways of advertisement are also suggested. This project
also focuses on few promotional strategies that can be used in B2B market as well as
B2C market in the form of retail stores.
Keeping the latest trends in mind, following recommendations are given to the
company:-
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• Since Britannia is come up with very limited variants. To tap the 7 lakh
estimated target market in Delhi they have to adopt aggressive approach. They
should increase no. of variants of Indian Flavours.
• Retailers should provide more margin so that they could provide more shelf
space to Product .This will surely increase the sales of product.
• In the retail business, Shopkeepers are most important as they are the ones
who inform the end consumers. Thus company should be very focused on this
aspect.
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Table of Content
Acknowledgement ………..2
Abstract ………...5
3. Introduction ………..12
7
6.3 Institutional Clients ………..21
9. Findings ………..41
8
List of Figures & Graphs
9
Figure no.16- Respondents Income Break Up
List of Abbreviations:
10
NEED OF THE PROJECT
BIL, since its inception had been mainly involved in the manufacture of biscuits,
which contributed around 85% of its revenues (1997). The biggest problem then, for
the 80-year-old BIL was that its name was strongly associated by customers with
biscuits (or more broadly bakery products). With the de-reservation of biscuits from
the small sector and commoditization of the Rs 3500 crore biscuit market, coupled
with cutthroat competition after the entry of multinationals and stagnating net profits,
BIL looked for a fresher approach to survive and prosper
BIL realized that it would have to scale up its marketing strategy in its main line of
business and in addition tap new food categories to grow. One reason why BIL
seemed to have woken late was that the company didn't have a proper parent until the
French food and beverages major, Danone, acquired RJR Nabisco's holding in the
company
BIL seemed to have realized that the time had come to change the rules of the game.
It crafted a makeover plan to diversify into new but related areas, and at the same time
consolidate and improve its core business, biscuits. By doing so BIL hoped to remain
the market leader in biscuits and become a major player in related businesses also
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OBJECTIVE OF THE PROJECT
Study the Scope of Specialty breads in Delhi and NCR Region. Since the product is
premium and average population of India lives below the poverty line so STP
analysis plays a crucial role in the project.
This project helps company to understand the retailers & consumers perception
about the Product. For this a detailed survey was conducted.
INTRODUCTION
BAKERY INDUSTRY-
Bakery industry in India is the largest of the food industries with an annual turnover
of about Rs. 3000 crores. Bread and Biscuits form the major baked foods accounting
for over 80% of total bakery products produced in the country. . Bakery products once
considered as sick man’s diet have now become essential food items of the vast
majority of population. Though bakery industry in India has been in existence since
long, real fillip came only in the later part of 20th century. The contributing factors
were urbanization, resulting in increased demand for ready to eat products at
reasonable costs etc. With the quick food culture catching up, demand for bakery
products has increased tremendously. The bakery industry or for that matter all the
businesses catering to bakery are witnessing a sort of revolution tremendously. In an
age where malls, hypermarkets and supermarkets have become the customer's
preferred destination, the concept of chain bakeries has come into its own. The bakery
industry has become more organized in the recent past. It is following the path of
restaurants - as the industry has become more organized, chain restaurants have taken
over the market and standalone restaurants have found it tough to survive on its own.
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INDIAN BREAD HISTORY
• The Bread industry is low - tech and low margin industry. In 1977, the
Government of India had reserved bread industry for small scale industries
(SSI). The then existing two large units viz., Britannia Industries Limited and
Modern Food Industries Ltd. were however allowed to continue on the basis
of their respective existing installed capacity.
• 35 % of the total production comes from the small scale sector with about
1500-1800 units in operation. The organized sector accounts for 20 % of the
total production. The balance production comes from the unorganized
traditional bakery units operating under cottage/tiny sector numbering
approximately 65000 units in the country. BIL & MFIL are having a market
share of 10-12 % and 7-8 % respectively. Apart from big players like BIL &
MFIL regional players such as Spencer’s in South India, Vibbs in
Maharashtra, Harvest Gold and Perfect in Delhi, etc.
• Bread being consumed by wide cross - section of the society, the marketing of
bread is based on strong retail distribution networks, which service the
customers.
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Along with an increase in demand for the bakery products, the awareness about
health is also on the rise. Bakeries are making sure that they come out with healthier
products. "The awareness of the virtues of products like whole grain, health breads,
cholesterol-free products and such other health products is growing in our country.
An increasing demand and health awareness results the demand for products like
Specialty Breads.
“I conform to the view that there are three kinds of companies -those that watch
things happen; those that make things happen; and those that wonder what happened.
We certainly wish to make things happen.....My personal commandment is Do unto
others what you don't wish done unto you. It's not the big who swallow the small; it is
the fast that swallow the slow”
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generating sales exceeding Rs.1 billion and these six pillar brands include Good Day,
Tiger, 50:50,Treat, Milk Bikis, and Marie Gold. BIL is enjoying market leadership in
all sub-categories of biscuits, Except in Glucose category where Parley is the leading
player.
• Biscuits
• Cakes
• Rusk
• Bread
• Daily products
MARKETING STRATEGY
MARKET TREND:-
In modern days bread is now becoming one of the most essential food items in human
diet due to its ready-made availability and high nutritive value. It is the most
consumable wheat based bakery product. Wheat flour, yeast, sugar, salt, water and
shortening agent are required as raw materials to manufacture bread. The plant and
machinery and the technology required to manufacturing the bread, are completely
available in India. Since the consumption of bread is increasing rapidly day by day,
the demand also is increasing enormously.
Competitors:
Some of the other well-known Speciality players in the market are as follows-
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1. Cremica:
The CREMICA Group, a widely diversified food products company from India, is an
acknowledged frontrunner in both food retailing and food services industry.
Through its commitment to taste and quality, CREMICA has emerged as a preferred
consumer brand and a leading supplier to Indian and global food majors.
2. PERFECT BREAD-
Started business with a small plant “in Seeta Foods Pvt. Ltd.", located at a small
industrial town Hathin, Faridabad in the year 1993 with a very nominal turnover. In a
span of just few years, with adding on two most modern plants: L.R. Foods
(established in 1997) & Harpreet Foods Pvt. Ltd. (established 2000) at Faridabad and
further coming up with Perfect Bake in 2006.
Group works exactly on the concept of "Demand & Desire" with the help of highly
qualified marketing personnel’s to enhance the quality & variety of their products.
Apart form retail markets of Delhi, NCR, Western U.P., M.P., Rajasthan, Haryana;
group has a strong presence in reputed institutions & corporate.
L.R Foods are very particular about using 100% natural ingredients. And a strong
emphasis is given in this fact in all the stages of the production. The usage of Golden
Wheat not only makes their products nutritious but also ensures unmatched quality
and taste.
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There is total quality control ensured by the use of state-of-the-art machinery. The
products are untouched by hand making them totally hygienic, henceforth strictly
maintaining a tradition which in turn has helped them to establish a distinct presence
in the market. A very strong emphasis on customer satisfaction has made them a
legend in the bread industry and this is well justified by their well-satisfied top notch
corporate clients.
• BONN bread
• 365 days
• VLCC bread
• Sugar n Spice
• Breads N More
• RAINBOWS
As Daily Bread is subsidiary Of BIL and was in business of Specialty Breads for
more than 5 years, a detailed study was done. On the basis of the study few
recommendations were given to BIL as BIL launched Specialty breads just 3
months back.
Daily bread was founded in May 2003 as the country’s first purveyor of world class
breads, confectionary and specialty food products for wholesale and retail clients. It
started its commercial production in October 2003 in Bangalore and currently
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supplies bakery products to a wide spectrum of institutional clients and operates.
Daily Bread has a chef training and recipe transfer agreement with the leading
wholesale European bakery & food emporium in Hong Kong, which will provide it a
competitive advantage. It intends to open 10 wholesale bakery production units and
200 retail bakery, etc outlets in top 10 metros in India over next 3 years.
Britannia Industries Ltd (BIL) has acquired a strategic stake in Daily Bread, a
Bangalore-based boutique manufacturer and retailer of high-end bakery products,
which includes a variety of European breads, pastries and savouries with its intent to
diversify its product portfolio into the fast-growing, high-end, branded freshly-
baked gourmet foods, and marked its entry into the premium `out of home' and `in
home' consumption
COMPANY OBJECTIVES
Daily Bread will be the first bakery vendor in India to provide institutional clients
such as coffee chains, fast food chains, multiplex chains and hotel chains, etc. with a
reliable and consistently high quality and wide selection of bakery products across all
the major metros
There is currently no pan India bakery brand. By opening wholesale bakeries in the
top 10 metros, Daily Bread’ will be India’s first national bakery brand, synonymous
with European quality bakery products, produced in state-of-the-art, hygienic &
HACCP compliant production facilities
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Daily Bread will deliver superior value to urban Indian consumers by making
available bakery and confectionary products of international selection, standards and
packaging at a competitive cost for the first time in India
The need for setting up production units in each major metro is driven by high
transportation costs, the lack of an effective cold chain, the perishable nature of
bakery products, the variance in regional tastes and the need to be close to the market
Some of the competitive advantages that the company enjoys are as follows-
• A wide variety of exotic fillings and spreads sandwiched in over a dozen type
of bread loaves and wraps
• Premium range of designer liqueur & luxury cakes for special occasions made
• Bakery chefs with international and five star hotel experience using state-of-
the-art imported bakery and kitchen equipment
• Complete support for ‘Point of Sale’: Consulting services for in-store bakery
or bread display layout, equipment & ambience
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• Customized products for each client based on end user profile and sales
analysis
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Net Wt
SL NO ITEM NAME Shelf Life MRP
(gm)
INSTITUTIONAL CLIENTS
• METRO
• PVR
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• SPENCERS
• RELIANCE FRESH
• KFC
• LE MERIDIEN
• TAJ HOTELS
• BIG BAZAR
DAILY BREAD showed widespread trial but limited repurchase level. The research
into this phenomenon shows some interesting aspects of Indian consumer
expectations from Breakfast and what Daily bread delivered to them.
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Breakfast easy to make. Can be consumed directly or with
butter, jam, cheese, sauces, cream.
The variants should be not Except few SKU’S most of the variants
to expensive to be are extremely high priced.
consumed on regular basis
• Daily Bread will enjoy a first mover advantage in a highly fragmented niche
market in India and will focus on a specific market segment to address unmet
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client needs: i.e. providing selection, consistency, reliability, quality,
transparency, hygiene, and one point of contact for bakery product purchases
to institutional clients across the major metros.
• Daily Bread will enjoy a competitive advantage and deliver superior value to
clients due to the wide range, high quality and attractive packaging of its
product range, which is unrivalled in India.
• The wholesale bakery sector remains one of the last sectors in India which
continues to be isolated from international competition and standards and
which continues to manufacture a poor and inconsistent quality and very
limited choice of products.
• Based in our case (DAILY BREAD) focusing on the same target group of high
premium class some of the popular categories under which they can
successfully positioned their products are as follows-
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Economy(Less than Rs20)-These are the varieties that can be consumed on a daily
basis and which are within the reach of their income.
Mumbai Whole 22
25
Wheat Pav
Dinner Rolls 22
Healthy Whole 24
Wheat
Slice Museli 41
Slice Mediterranean 41
Jumbo Medium 31
White Loaf
Chocolate Twist 34
Based on the varying occasions the various SKUs can be classified under the
following heads-
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Raisin Nut n Brioche Sandwich bread Chocolate Dakshin Cheese n Garlic
Croissants Housewife Loaf
loaf
German Sour Rye Mumbai Butter Assorted Plain Buns Sandwich Bread
Loaf pav Cookies
Parisian baguette
Panini Herb
German Sunflower
and Walnut Loaf
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Ciabbatta - Black
Olives
Mediterranean Bread.
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Pav
The vast basket of goods can also be classified on the basis of its unique flavor or
taste-
TASTE VARIANT
GARLIC /CINNAMON FLAVOURED Pizza Base, Hot Dog Roll, Spinach Loaf
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Sliced Bread
The innumerable variants can also be categorized on the basis of their weight or gram
mage wherein it can help to determine the demand induced by the consumer over a
period of time based on the consumption made which depends on the gram mage or
the weight of the individual SKUs.
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6. On the basis of Colour
Colour Variant
On the basis of the SKU’s wise facts and figures obtained I have tried to prepare a
SKUs wise list for the previous month dividing the sales made and the returns
obtained by the various distributors catering to the three zones of
The report show the sales made, Returns during that 5 week period and returns
percentage to determine the various SKUs performance showing how the tastes and
preferences of people within the same state but residing in different zones vary
greatly. India being a highly enriched country, with people of all ethics and culture
being an integral part of its rich heritage. The same change in tastes and pattern is
reflected in Delhi and NCR, its capital where people of all cultures and class try to
survive to make their living.
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The first part of report shows how the figures highlighted are SKUs that are
performing well in the North, as their return % is equal to less than 8%, which is
considered as an acceptable figure by the company.
The second part shows the SKUs performing well in South as being highlighted
The third part shows the SKUs performing well in East as being highlighted.
The Report reveals how the taste and pattern vary differently as most of the SKUs are
performing well in South as it has some of the key potential markets and people have
the willingness to spend. Similarly, Fruity Fit high priced bread has one of the highest
returns in West because of lack of high disposable income at the hands of the
consumer residing there. Likewise in the Northern part new variants like English
premium Bread and Cheese and Garlic Bread are performing well thereby showing
those consumers are slowly developing a liking for new varieties.
.One can analyze from the SALES figures of the distributors that a bread which is
doing well in the North Delhi is not necessarily doing well in the East Delhi which
clearly reflects the varying tastes and preferences of the Indian consumer Based on
this I have tried to made an SKU wise Sales and Return analysis for all the major
MODERN TRADE clients with their branches spread all across Delhi and NCR to
suggest which are the profitable SKUs and must be promoted well and which are the
SKUs that are not to the liking of the Indian consumer taste and hence must be either
modified or since, the company had the unique opportunity of developing the product
they can modified the product by tinkering may be with the ingredients .product
packaging or flavor or the price points and can re launch or relocate in an area that has
the potential and the product is successful .
The following are the SKUs that are doing well and must be promoted-
1. SPENCERS-
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Brown Bread
Milk Bread
Burger Buns.
Butter Pav.
Dinner Roll.
2. NAMDHARI FRESH
Museli Bread.
Brown Bread.
Milk Bread.
Burger Buns.
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Brown Bread
Milk Bread.
Submarine Rolls.
Dinner Rolls.
Masala Bun.
Masala loaf.
Burger Buns.
5. HOMESTORE LTD.
Brown Bread.
Milk Bread.
Thus one can analyze that in almost all the MODERN TRADE outlets it is the
common SKUs like Milk bread, Brown Bread,Haldi Methi Ajwain,burger
Buns,Dinner Rolls,Milk bread ,Mumbai whole wheat Pav which are fast moving
SKUs.
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The following SKUs must be re launched by being modified either in their ingredients
or by varying their price points and relocated in areas where they can do well like-
Multigrain Loaf.
French Village.
Loaf Spinach.
RESEARCH METHODOLOGY
1. Problem formulation
The primary objective of the project was to study the Scope of Specialty Breads in
Delhi & NCR region.
A detailed analysis of Daily Bread provided few insights about the market .But to
know the opinion of Retailers & consumers about the product, this study was
conducted
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1b. Information required.
The information that were required other then the research were about the
consumption pattern & income level in Delhi & NCR region.
A research design is the frame work for a study, used as a guide to collect and
analyze data. A research design ensures that, the study will be relevant to the problem
and, it will use economical procedure. The research design for the study is
Exploratory Research. An exploratory research is conducted to gain ideas and
insights into the problem. It is conducted to increase the marketer’s familiarity with
the problem and clarify concepts. An exploratory research is appropriate when very
little is known about he problem. Here the purpose of the study was to find out the
scope of Specialty bread in Delhi and NCR region; hence an exploratory design was
selected.
3a.Secondary data:
The purpose of collection of secondary data was to gain more knowledge about the
project and to have a certain guideline for the project to be carried out properly. For
the study the secondary data was collected from articles on Bread industry published
in Economic times, white papers on consumption patterns & income level by
Mckinsey & Co.,
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3b.Primary data:
The primary data collected, while keeping certain important point into consideration,
which would help the project to achieve the desired result, which were expected from
the survey like :
What is to be measured?
The main objective of collecting primary data is to probe the attitude and opinion of
the respondents. The technique which was used for study was the communication
technique in which survey was done telephonically. This technique was decided as it
would be cost efficient and would help to obtain the accurate data.
The primary data which was collected was through questionnaire, questionnaire was
selected as a mode of collecting the data because of it certain characteristics, which
are as follow:
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Standardize the question and all or some of the response categories.
4. Procedure of questionnaire:
5. Designing sample:
In this project researcher preferred non judgment sampling for Retailers & consumers
in Delhi and NCR region.
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6. Sample Size -
Initially around 300 outlets were visited. Out Of them 52 were identified where the
survey was conducted .These 52 outlets were selected out of 300 shops on the
following characteristics:-
Product availability
Location
Outlet ambience
Relative products
Clientele
Second survey was conducted among the end consumers, the behavioural motives of
the consumers in the target segment were analysed
Location: - The Research was done in the area of Delhi and NCR region
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AMITY UNIVERSITY
UTTAR PRADESH
The Research which is conducted is purely an academic research for the purpose of
summer training project; I would appreciate if you could provide some time to fill the
questionnaire
Ans. 1) Yes 2) No
IF YES:-
b) Known company
Ans. a) 0-5
40
b) 5-10
c) >10
Ans.
Ans.
Name:-
Place:-
41
---------------------------------------- Thanking you ---------------------------------------------
FINDINGS:-
1.
Availability Of Product
300
248
250
No. of Retailers
200
150 Series1
100
52
50
0
X Y
2.
42
Brand vs Non Brand
25
20
No. of 15 24
Retailers 10 Series1
18
0
X Y
3.
Varities at Outlets
25
20
No. of 15
Outlets 22 20
10 Series1
10
5
0
X<5 5<X<10 X>10
Variety of specialty Breads
FIG.3
43
4.
Future of Specialty Bread
Series1, Y,Series1, Z,
7, 13% 0, 0%
X
Y
Z
Series1, X,
45, 87%
X= Promising
Y= Average
Z= Not promising
FIG.4
AMITY UNIVERSITY
UTTAR PRADESH
The Research which is being conducted is purely an academic research for the
purpose of summer training project; I would appreciate if you could provide some
time to fill the questionnaire-
Que.1-Have you tasted any of speciality breads (listed below) before :-( If ‘NO’,
Leave This Question Blank)
Ans.
44
a-Cheese Garlic bread e-French bread
Que.2- Where did you observed speciality breads for the very first time-:-( If ‘NO’,
Leave This Question Blank)
Ans.
1. Food outlets(like Pizza Hut, Cafe Coffee Day, Papa Johns, McDonalds)
2. Restaurant or Hotel’s Menu Card
3. Local Bakery shops or Grocery stores
4. Other (Please Specify)……………………………………………………
Ans.
1) Yes 2) No
Ans.
Ans.
Ans.
45
1) Yes 2) No
Que.7- Have you Find the speciality breads of Companies given below at Grocery
stores-[If necessary, put more than one (*) sign] :-( If ‘NO’, Leave This Question
Blank)
Ans.
a- Britannia
b- Daily bread
c- Cremica
d- Bonn
Que.8- Have you seen any Promotional activity of the product through Electronic
Media (T.V) or Print Media (Newspaper or Magazines)-
Ans.
1) Yes 2) No
9- Gender -
Age-
Occupation-
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(Family Income)
FINDINGS:-
Cumulative
Frequency Percent Valid Percent Percent
47
FIG.5
48
2.Where did you observed speciality breads for the first time-:
Cumulative
Frequency Percent Valid Percent Percent
Total 95 100.0
FIG.6
3.
49
Have you ever tried Specialty bread at home
Cumulative
Frequency Percent Valid Percent Percent
FIG.7
50
4.Price of the product is
Cumulative
Frequency Percent Valid Percent Percent
FIG.8
51
5.Availability of the product nearby your home(In Distance)-
Cumulative
Frequency Percent Valid Percent Percent
52
FIG.9
53
6.Have you suggested speciality breads to anyone -
Cumulative
Frequency Percent Valid Percent Percent
FIG.10
54
7.Have you Find the speciality breads of Companies given below at
Grocery stores
Cumulative
Frequency Percent Valid Percent Percent
Total 95 100.0
FIG.11
55
8.Have you seen any Promotional activity of the product through
Electronic Media (T.V) or Print Media
Cumulative
Frequency Percent Valid Percent Percent
FIG.12
56
DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS
1.
Gender Break Up
35
Men
Women
60
FIG.13
2.
Age Break Up
35
30
25
No. Of
20 35
Responden
15 28
ts Series1
10 20
12
5
0
20<X<30 40<X<50
Age (in Years)
57
FIG.14
3.
17, 18%
Service
Business
25, 26% 53, 56%
Other
FIG.15
4.
45 41
40
35 33
No. Of 30
25 21
Repsonden
20
ts 15 Series1
10
5
0
X<5 5<X<10 X>10
Annual Income(in lakhs)
FIG.16
58
STP ANALYSIS
Mc Kinsey & company’s report on Indian consumer -2007 cleared that if India
continues on its current high growth path, over the last two decades the Indian market
would come across a major transformation .Income level will almost triple and India
will climb from its current position as the 12th largest consumer market to Become
worlds 5th largest consumer market till 2025. This shows that there is a huge potential
in India regarding the FMCG product.
Mc Kinsey had classified Indian’s households into five economic groups as per
the income level (income in 1000’s Indian Rupees):-
• DEPRIVED (<90)
• ASPIRERS (90-200)
• SEEKERS (200-500)
• STRIVERS (500-1000)
GLOBAL INDIANS
Urban India is witnessing growing no. of consumers having annual income more than
10, 00,000 Indian rupees. This group will hold significant & growing spending power
over the next two decades and have tastes that are similar to rich across the world.
59
No. of Households in millions
60
THOUSAND INDIAN
120
106.1
100 101.1
94.9 93.1
No. of Households
91.3
80
74.1 2005(E)
60 2015(F)
55.1
49.9 2025(F)
40
33.1
20
9.5 10.9
3.3
1.2 5.5
2.4
0
A B C D E
FIG.17
61
The above data clearly shows the increasing no. of INDIAN GLOBALS in TWO
DEACDES. As the Specialty Bread is a premium product and which is especially
target the creamy layer of society as every one cant spent 100/- for 400gm bread.
Also the transformation of STRIVERS into GLOBAL INDIANS is also a major plus
point for the product as most of the STRIVERS try to adopt the life style of
GLOBAL INDIANS which is the most important characteristics of Indian Consumer.
In the current scenario in DELHI which is TIER -1 city only 4.7% homes can spend
RS.15k monthly.
The Positioning should be like healthy, consistent, reliable, quality, hygienic, and
easily prepared food
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SCOPE OF IMPROVEMENT
The study showed that most of the consumers had not come across electronic or Print
media advertisement .To increase the penetration of the product Britannia should
focus on this aspect. As the product is a premium product & the target market is
corporate, and the young people in the age group between 25 to 50 years. For them
Britannia could adopt few innovative ways of advertisement-
ON LINE MARKETING
The primary thing for any online marketing is to advertise the brand on the search
engines. Search engine has become the most conservative medium for the searchers.
Whenever people hear about a particular Product they will first go to the search
engine for the details of that particular product because it is difficult to remember the
website of each and every brand. So it is very important for the companies to keep its
brand visibility in most of the search engines.
Speciality Bread is a premium product, which is targeted mainly to the corporate, and
the young people in the age group between 25 to 50 years. Researchers have shown
that youngsters are the most confident and enthusiastic users who cannot live without
search engines. Here is the survey carried out by an Internet company which shows
the proportionate usage of Internet in these age groups
Qualities/age
Use search
engines
89 85 79 67
Search several
X/day
27 25 15 8
Very Confident
63
searchers 53 51 37 29
Always find
results
22 16 13 9
Mostly important
searches
36 27 23 17
Trust engines
72 68 65 66
Paid results OK
74 71 69 60
Search engines offer users vast and impressive amounts of information, available with
a speed and convenience few people could have imagined one decade ago. Their
capabilities are expanding practically by the day. Today’s Internet users are very
positive about what search engines already do, and they feel good about their
experiences when searching the Internet. They say they are comfortable and confident
as searchers and are satisfied with the results they find. They trust search engines to
be fair and unbiased in returning results. Furthermore, searchers largely don’t notice
or understand or discern the different kinds of search results that are being served up
to them
These are the different search engines available with the proportion of their usage
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Figure 18: Search engine usage by the internet users
It clearly shows that Google has the maximum visibility among the other search
engines. So this is the order for the search engine for product’ has to look depending
on the financial constraint.
. Online Directory
The online directory provides website link and information for everything form
shipping to real estate, property and dating website to recruitment website
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Blog
A blog can be private, or blog can be used for business purposes. Blogs, either used
internally to enhance the communication and culture in a corporation or externally for
marketing, branding or public relations purposes are called corporate blogs. Blogs are
great marketing, monitoring, conversing and learning tools that should be taken
advantage of by individuals and businesses everywhere. Some institutions see
blogging as a means of "getting around the filter" and pushing messages directly to
the public. For some businesses blogs have become “news sources,” publishing
stories like newspapers, radio stations and TV stations.
Three or four years ago, there was no such thing as a “blog;” but today blogs have
become very influential components of the Internet, and their importance is growing
exponentially. The word “blog” is a shortened form of “web log,” and it stands for a
web site that keeps a log (much like a diary) of people’s thoughts, their actions, and
their reactions to other people’s thoughts and actions. Today, there are millions of
blogs on the Internet.
It has been discovered that blogs, among other things, are taking the field of public
relations into the future. They are a necessary feature in the progression of
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businesses. Blogs are growing in popularity; however, some businesses are still
reluctant to join the millions of blogs already in existence.
Advantages of Blogs
B) Inexpensive Setup
E) Appear Accessible
F) Appear Authoritative
G) Brand Awareness
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Marketing Strategies
In the stressful world of today, companies need to keep their employees motivated
enough so that they always give their 100%. Appreciating one’s hard work is a
motivation tool. A number of companies provide break fast & lunch to their
employees. At times companies throw weekend parties where they could use the
product as new variant.
Airlines can also be added into the list of clients. Airlines could prove a best client as
they have various overseas passengers . A permanent source of revenues and will also
help in introducing the taste to rich class public, which is our main target market other
than the corporate sector.
• Target clients from the corporate sector should be tapped and given a brief
presentation on the product which will not only focus on the quality, pricing
specifications, health benefits but will also show the amount of hard work that
goes into making it. Sampling should be very important at this place.
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• Early entry into long term contracts with these companies as entry barriers in
this field are low and new players can come and eat the market share.
• Since for the time being we are looking for B2B business so we can go for the
following market strategies:-
1. Tapping clients from the corporate sector and giving them brief presentations
on the product, which can include all the points down under (if incorporated)
apart from the quality and other pricing specifications.
2. Sponsoring company specific events which are a very regular feature these
days for example project completion, project launch, company sponsored
parties or even the induction programs.
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4. The company can also target airlines as they generally have overseas
passengers and the creamy layer of Indian consumers.
Promotion program:
Video ads are preferable for even the direct presentations. Television promotions
should also be focused from right now if the company has any plans to go in for the
masses.
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Retail Marketing-
For retail marketing, focus should be setting up the exclusive retail outlets at malls or
at other places. At the exclusive retail outlets all variants should be available where it
could be baked instantly & could be produced before the customer.
A professional chef could be the best alternative which could inform the end
consumers about the product and also share some delicious dishes. Specialty stores
like Bread World , Bread Zone can be established as exclusive outlets for selling
specialty breads
Possible Location:
• The strategy should be to adapt to place in every possible location where some
business can be generated. Prominent places have to be chosen for the purpose
like malls, educational institutions and corporate campuses, and places, which
are for tourist attractions.
• Malls that are upcoming trend in metros, tier-I and tier-II cities is the great
opportunity. Malls that have decent running feet should be chosen in the initial
phase. Special outlets can also be used at colleges and institutes where target
audience is visible. Tourist places are the great place attraction because tourist
will keep something as memento.
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• Initially metros and tier-I city should be targeted.
Target market:
Services:
The main thing to be done would be packaging material; the packing should be as
attractive as product inside, so marketing department has to keep looking for latest
marketing trends to design the package accordingly. Use of Cpp packaging will keep
the product fresh for long days & increase the shelf life
And one more important part is that the company can take help of a carrier company
to deliver the Specialty Bread to the homes and parties for their clients and charge a
few extra bugs. The customer can place the order through internet or using the phone.
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Recommendations
• Since Britannia has come up with very limited variants of specialty breads. To
tap the 7lakh estimated target market in Delhi & NCR region they have to
adopt aggressive approach. They should come up with more variants of
specialty breads with Indian flavours.
• In the retail business, Shopkeepers are most important, as they are the ones
who inform the end consumers about the new products. Retailers should
provide more margins so that they could provide more shelf space to the
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Product at POP. The product has enough potential, but to make it a successful
product Company has to focus on Retailers. .
• Exclusive retail outlets at malls and supermarkets will surely increase the
penetration. Here specialty Breads could be baked & served to consumers.
• Though target population is satisfied with the Price but to tap more market
share Britannia has to be competitive regarding the price. Perceptual map at
the next page will clear the situation.
PERCEPTION MAPPING
*Cremica / Bonn
*Perfect Bread.
*Britannia.
*Harvest
Gap
Quality
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* Need of a product which is high in quality & low in price
FIG.19
The model of pure competition implies that risk-adjusted rates of return should be
constant across firms and industries. However, numerous economic studies have
affirmed that different industries can sustain different levels of profitability; part of
this difference is explained by industry structure.
SUPPLIER POWER
Supplier concentration
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or differentiation
Switching costs of firms in the industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in industry
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BARRIERS
TO ENTRY
Absolute cost advantages THREAT OF
Proprietary learning curve
Access to inputs
SUBSTITUTES
Switching costs
Government policy
Buyer inclination to
Economies of scale
substitute
Capital requirements
Price-performance
Brand identity
trade-off of substitutes
Switching costs
Access to distribution
Expected retaliation
Proprietary products
BUYER POWER DEGREE OF RIVALRY
Bargaining leverage Exit barriers
Buyer volume Industry concentration
Buyer information Fixed costs/Value added
Brand identity Industry growth
Price sensitivity Intermittent overcapacity
Threat of backward integration Product differences
Product differentiation Switching costs
Buyer concentration vs. industry Brand identity
Substitutes available Diversity of rivals
Buyers' incentives Corporate stakes
FIG.20
Five forces analysis looks at five key areas namely the threat of entry, the power of
buyers, the power of suppliers, the threat of substitutes, and competitive rivalry.
• The high or low cost of entry e.g. how much wills it cost for the latest
technology?
• Cost advantages not related to the size of the company e.g. personal contacts
or knowledge that larger companies do not own or learning curve effects.
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• Government action e.g. will new laws be introduced that will weaken our
competitive position?
• This is high where there a few, large players in a market e.g. the large grocery
chains.
• The cost of switching between suppliers is low e.g. from one fleet supplier of
trucks to another.
• Where the switching costs are high e.g. switching from one software supplier
to another.
• Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
• Customers are fragmented (not in clusters) so that they have little bargaining
power e.g. Gas/Petrol stations in remote places.
• Where there is product-for-product substitution e.g. email for fax where there
is substitution of need e.g. better toothpaste reduces the need for dentists.
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• Where there is generic substitution (competing for the currency in your
pocket) e.g. Video suppliers compete with travel companies.
Competitive Rivalry:
This is most likely to be high where entry is likely; there is the threat of substitute
products, and suppliers and buyers in the market attempt to control. This is why it is
always seen in the centre of the diagram.
Specialty bread market is a niche market where most of the buyers or customers are
Health conscious. This is because the most of the customers of premium products are
corporate or high profile people. And their decision depends on taste and quality.
Brand identity is the major concern for the people taking these premium products.
Since they are very much conscious about brand and quality of the product. Thus
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threat of entry could be high as major players of Indian FMCG industry are still not
come up with the same product. Apart from it unorganized sector is also a threat as
the operating cost in Bakery industry is very low.
In case of Premium market the buyers at the advantageous position. The buyers,
which are mostly corporate offices or high profile people, are at the leverage point
because they order in large volume and this gave them the power to regulate the price.
But being a niche market, price is not a driving force for buyers. Product
differentiation and limited number of specialty bread makers in India reduces the
leverage of buyer in specialty bread category.
In India, the major substitutes of specialty bread are regional food . Paratha , Chapati
& other regional foods like idli ,dosa are still a threat .But with growing no. of global
Indians ,this threat could not be that much harmful.
Competitive Rivalry:
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. 35 % of the total production comes from the small scale sector with about 1500-
1800 units in operation. The organized sector accounts for 20 % of the total
production. The balance production comes from the unorganized traditional bakery
units operating under cottage/tiny sector numbering approximately 65000 units in the
country. BIL & MFIL are having a market share of 10-12 % and 7-8 % respectively.
Apart from big players like BIL & MFIL regional players such as Spencer’s in South
India, Vibbs in Maharashtra, Harvest Gold and Perfect in Delhi, etc.
APPENDIX
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• Social networking helps business owners connect with their best customers.
• Blogs promote customer response and help business owners gain insight.
Build relationships between your company and customers by being active in the social
media environment. Use social media to experiment. Ask for feedback; listen
carefully.
Smart marketers are recognizing the role social media play in creating brand
perception. Whether consumers simply read blogs or participate in sites, they all are
part of the new social media world.
Savvy marketers are exploring this brave new world with them.
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Appendix for Blogging Activity Reaches
Blog use has grown significantly in the past year: Online consumers who regularly
read blogs increased from 5% in 2006 to 8% in 2007. Despite the low usage, Forrester
believes that consumers who use blogs are becoming an increasingly attractive target
group for marketers because:
Young adults read blogs three times more frequently than older adults. Not only are
young adults more likely to read blogs, but they are also nine times as likely to have
their own personal blog. Young adults between the ages of 18 and 24 make up 25% of
all adult bloggers but only 9% of the general adult online population. As they age,
these young adults will bring their blogging habits with them into the mainstream.
Blog user demographics make them an attractive target. Blog users — online
consumers who read and/or write blogs — are more likely to be male, affluent, and
broadband-connected. And blog users have these attractive demographics despite
being significantly younger than non-bloggers.
Blog users consider themselves to be opinion leaders. Compared with all online
consumers, blog users are much more likely to view themselves as leaders.
Interestingly, consumers who write personal blogs are not more likely than regular
blog readers to believe this.
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REFERENCE:-
1. Marketing Concepts by Philip Kotler
6. http://www.marketingterms.com/dictionary/s/
7. http://advertising.superpages.com/learning/advantages-of-social\Bakery
products
8. http://laghu-udyog.com/publications/pmryprof/food/ch25.pdf
10. http://www.expresshospitality.com/20070731/management05.shtml
12. www.mrsbectorfoods.com
14. http://66.242.153.37/research-it/sector-info/food/fy06.html
15. www.daiybread.cc
18. http://images.google.co.in/images?q=pictures+of+breads&um=1&hl=en&start
=20&sa=N&ndsp=20
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20. http://www.businessweek.com/innovate/content/may2006/id20060508_95245
htm
23. www.bakingassoccanada.com;
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