ECONOMICS PROJECT

REPORT
BUISNESS AREA : ROYAL BAKERS, PERUMBAVOOR

PROJECT TEAM
ARUN SUNNY M
ELSE MARIA JOSE
SRUTHI LOBO

INTRODUCTION

Bakery industry is of enormous significance for India's development because of the vital
linkages and synergies it promotes between the two pillars of our economy, industry and
agriculture. Fast growth in the food processing sector and simultaneous improvement in the
development of value chain are also of great importance to achieve favorable terms of trade
for Indian agriculture both in the domestic and the international markets.
Today's consumers' access and share information to an ever-increasing degree-while
demanding a more personalized and interactive retail relationship. The bakery and beverage
sector is highly competitive because of ever changing consumer preferences and the need for
marketing differentiation.
The bakery Industry in India is on an assured track of growth and profitability. It is
expected to attract phenomenal investment in capital, human, technological and financial
areas. The total bakery and sweets production of India is estimated to double in the next ten
years. Hence there is an opportunity for large investments in bakery and food processing
technologies, skills and equipment.
Bakery industry is a highly profit making and a competitive business sector. So the
entire study of bakery retail will helps to understand about the various factors that can lead to
profit. Profit of the business mainly depends upon the need and satisfaction of the consumers.
. As management students an over view of this sector had helped us to identifying the various
factors to start a business. The aim of this project is also to get knowledge about their factors.
This project report is based on our visits in Royal Bakers located in Perumbavoor,
Ernakulam. Which is aleading bakery in Perumbavoor.

PROFILE OF THE RETAIL SHOP

Royal Bakery is the guiding Bakery located in the heart of the town known as
Perumbavoor. The place Perumbavoor is famous as the economic capital of Ernakulam
district. The shop is owned by Mr. Shamon. He commenced this shop in the year 2004. The
front area of the shop is dedicated for Parking and rear side of the shop is assigned for
cafeteria.

BUSINESS MODEL
PRODUCT
1

They are provided vegetarian and non-vegetarian food and nourish food. They are providing
different food dishes. The objective of hotel is to provide best food and best quality to its
customer .They provided following food dishes:

Shake
Ice Cream
Continental
Fast food
Tea, Coffee. Juice
Sweet items

SERVICES PROFILE
A service is the most important part and major key for thi s success of any unit.
Without a service, marketing cannot be imagined. Service i s o n e t o o l i n t h e h a n d s o f
t h e m a r k e t i n g t h r o u g h w h i c h i t g i v e s l i f e t o a l l marketing program. So, the
main responsibility of the marketing would be to know its service well and to take
proper service decision.

PROMOTION MIX
T h e m a r k e t i n g m i x a c t i v a t e s o r p r o d u c t p l a n n i n g a n d distribution are
performed mainly with in business or between a business and t h e m e m b e r o f i t s
d i s t r i b u t i o n c h a n n e l s . H o w e v e r , t h o u g h i t s p r o m o t i o n a l activities, a firm
communicates directly with potential customers and as well we see, it is not a
simple process. Basically, promotion is a attempt to influence, and more
specifically promotion is an element in an organization marketing mix that
serves to inform, persuade and remind the market of the product and the
organization selling it, in hopes of influencing the recipient s feeling, belief or behavior.
Promotion consists of those activities that are designed to bring a company goods and
services to the favorable attention of customer There are four forms of promotion are as
follows.

Advertising
Sales Promotion
Publicity And Public Relation

The Royal Bakery makes a promotion activity. So they can increase the volume of sales and
earning maximum profit.

PRICING POLICY
The prices of the product are depend upon the expenses which is made for making product.
The expenses such as the cost of raw material, cost of over heads, sector overheads,
administrative overheads, margin of profit etc .Pricing decision has strategic
importance in any enterprise. It means decision of determining price of a
product. Price can be defined as the exchange value of the goods or services in the
terms of money. The price of products should be determined in such a matter so a s t o
o f f e r a r e a s o n a b l e a m o u n t o f p r o f i t t o t h e m a n u f a c t u r e r, a r e a s o n a b l e
remuneration to middle man and the maximum satisfaction to the consumers
.Price is an important element in the marketing mix. The policy is only
factor that generate revenue other factor are expense. Price is only revenue
generate element. So profits depend upon the price. W h i l e d e c i d i n g t h e p r i c e o f
p r o d u c t , f o l l o w i n g f a c t o r s a r e consider as cost:

Cost of Vegetables, Meat, Fruits and other cooking material

Wages paid
Cooking Expanses
Electricity expenses
Estimating cost
Other cost

COMPETITORS
Competition is at the peak in this area as the area is thick packed with mobile stores. So the
proprietor shows sincere interest in customer service in order to sustain and develop his
business.
The main competitors of Royal Bakery are:
Kumar Bakery.
Amal Bakery
Shake World
3

Royal Bakery faces moderate level of competition from all the above
mention stores. But Royal Bakery manage to make sales higher than its competitors since the
location of this shop is convenient to the customers.

CAPITAL STRUCTURE
Initial Investment : 20 ,00,000
Fixed Cost 5,00,000
Land & place owned by the restaurant
Achieved breakeven point after 3 years of commencing business.

COSTS INCURRED Per Month

Items

Cost

Purchase Cost

600000

Salary
Electricity

20000
20000

Total

QUANTITY

Total
650000

100000
20000
751000

Average monthly cost

- 7, 50,000

Average monthly Income

- 8,00,000

Average profit

- 50000

Break Event Point Analysis

4

Year

BEP %

2004
2005
2006

25%
35%
40%

Unit
0
12500
17500
20000

Sales
0
500000
700000
800000

FC
500000
500000
500000
500000

TC
500000
687500
762560
800000

SWOT
STRENGTH
The shop doesnt compromise on the quality of the products sold.

 The location of the shop is heart of Perumbavoor which is an added advantage to the
shop.
Physical presence of the proprietor in the shop throughout the working hours.
Internal personal relationship is very nice between staff and
owner.

WEAKNESS
Lack of concentration on advertisement.
Location is in the centre of the city has high traffic
Scarcity of Water

OPPORTUNITY
Expand the floor area of the shop.
Royal Bakery has good opportunity to be converted in HOTEL because it is
situated right in the heart of the city.

THREATS
Products brand equity.
Increase in competitors.
SUGESSTIONS FOR IMPROVEMENT
Analysis of SWOT analysis brings out some suggestions for improvement. They are:
Increase the floor area.
Concentrate more on advertisement.
The major problem faced by customers is parking so Restaurant must make some
arrangement for parking.
T h e R e s t a u r a n t s h o u l d p r o v i d e h o m e d e l i v e r y s o t h a t t h e customers
for distance place can also attracted.

CONCLUSION

I got a whole information regarding personnel, financial and marketing. During our study, I
marked that the Restaurant is best in management, in working in providing facilities
to the workers and provide food facility to the people .I have come to the conclusion that
this sector has an efficient in financial and marketing process. It possesses proper finance.
Hence, this sector has a many scope for expansion and development. The food of
this sector is very good in test. The Name is Royal Bakery; Customers would like t o
visit often to this Restaurant. The staff is interested to improve the
f o o d product as per changing and test of the customers.