project report - britannia ( specialty bread)
TRANSCRIPT
SUMMER TRAINING REPORT SUBMITTED TOWARDS PARTIAL FULFILMENT OF POST GRADUATE DEGREE IN MARKETING & SALES
PROJECT TITLE
“SCOPE OF SPECIALTY BREADS IN DELHI & NCR REGION”
SUBMITTED BY: FACULTY GUIDE:
NITIN MISHRA MS. VARSHA KHATTRI
ENROLL NO. A0102207109
MBA (MARKETING & SALES)
Acknowledgement:
The completion of this project gives me an opportunity to convey my regards to all
those who helped me to reach a stage where I have the confidence to launch my career
in the competitive world of management.
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
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DECLARATION
I 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 hereby declare that I have completed project titled “scope of specialty Bread “scope of specialty Bread
inin Delhi and NCR regionDelhi and NCR region” as a part of the course requirements of Masters of
Business Administration of Amity University.
I further declare that the information presented in this project is true and original to
the best of my knowledge,
Date: (NITIN MISHRA)
Place: Noida
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“scope of specialty
Bread inBread in Delhi and NCR region”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.
Date: Ms.Varsha Khattri
Place: Noida Faculty Guide
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.
To study consumer perception a survey is conducted in the form of questionnaire in
different malls, restaurants and retail stores at different locations.
Keeping the latest trends in mind, following recommendations are given to the
company:-
Specialty Bread is a premium Product so Britannia should concentrate more
on business and executive class.
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.
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Distribution channel should also be different.
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
1. Need of the Project ………...11
2. Objective of the project ………..11
3. Introduction ………..12
3.1 Bakery Industry ………...12
3.2 Indian Bread Industry ………..12
3.3 Emergence of Healthy products ………..13
4. About the company ………..14
4.1 Production ………..14
4.2 Basket of Britannia ………..14
5. Market strategy ………...15
5.1 Market Trends ………..15
5.2 Competitors ………..15
6. Daily Bread (Case Study) ………..17
6.1 Company Objective ………..18
6.2 Competitive Advantage ………..18
6.3 Institutional Clients ………..21
6.4 Company segmentation & Positioning ………..23
6.5 Zone wise Analysis ………..31
6.6 Analysis of Sales Report ………..32
7. Research Methodology ………..35
7
8. Questionnaire for Retailers ………..39
9. Findings ………..41
10. Questionnaire For consumers ………..43
11. Findings ………..46
12. STP Analysis ………..56
13. Scope of Improvement ………..59
14. Marketing strategies ………..64
14.1 For B2B ………..64
14.2 For Retailers ………..67
15. Recommendations ………..69
16. Porter Five Force Model ………..70
17. Appendix ………..75
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List of Figures & Graphs
Figure no. 1- Graphs on Product’s availability at retail outlets (for Retailers)
Figure no. 2- Branded Product vs. Non Branded Product
Figure no. 3- Graph on Product’s existing Varieties
Figure no. 4- Graphs shows Product’s Future
Figure no. 5- Graph on Product’s Popularity
Figure no. 6- Graph on Product’s Taste
Figure no. 7-Graph on Product’s Usage at home
Figure no. 8- Graph on Product’s Price
Figure no. 9- Graph on Product’s availability (for End Users)
Figure no. 10- Graph on Product’s promotion
Figure no. 11- Graph on Existing Company in Product category
Figure no. 12- Graph on question based on Product’s promotional activity
Figure no. 13- Respondents Gender Break Up
Figure no. 14- Respondents Age Break Up
Figure no.15- Respondents Occupation Break Up
Figure no.16- Respondents Income Break Up
Figure no.17-Shifting Income levels Of Consumers
Figure no.18-Search Engine Used By Internet Users
Figure no.19-Porter Five Force Model
Figure no.20-Perceptual mapping
Excel sheets are also attached at the end of the Report
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List of Abbreviations:
STP- Segmentation Target Positioning
IT- Information Technology
B2B- Business to Business
B2C- Business to Consumer
SKU- Stock keeping Unit
MTD- Monthly Delivery
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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
OBJECTIVE OF THE PROJECT
The objective of the project is summoned as follows:-
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.
.
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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.
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 &
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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.
As bread industry is a low margin business, cost control is crucial in sustaining
profitability in the long run.
The total market size of bread industry is approximately 15 billion standard
loaves (SL) or 1.5 million tonnes. The current growth is around 5 - 6 percent
p.a. and is expected to remain in the same level in the medium term.
EMERGENCE OF HEALTHY PRODUCT
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.
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ABOUT THE COMPANY
“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”
- Sunil Alagh, CEO, Britannia Industries Limited
Britannia Industries Limited (BIL) is the leading player in Bakery Products
(Biscuits, Bread, Rusk and Cake), jointly promoted by French food major DANONE
and Nusli Wadia. It enjoys market leader ship in Biscuits with 39 % market share in
value term. It owns key brands like Tiger, Good Day and Marie Gold. It has six pillar
brands, which contribute around 90 % of its top line. Each of its pillar brand
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.
PRODUCT BASKET OF BRITANNIA
The group’s principal activities are manufacturing & marketing-
Biscuits
Cakes
Rusk
Bread
Daily products
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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-
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.
Established as a small enterprise by Mrs. Bector, a passionate food enthusiast, three
decades ago, the group has today metamorphosed into a huge food products
conglomerate and is known for its lip smacking range of Sauces, Mayonnaise,
Toppings, Syrups, Biscuits, Indian Snack Foods, Stabiliser Blends and Ice creams.
The Group has been constantly setting benchmarks for the food processing industry
through its incomparable products, innovative flavours and fillings, internationally
certified production facilities, consistent quality and unmatched expertise.
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
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(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.
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.
Some of the other competitors brand are-
BONN bread
365 days
VLCC bread
Sugar n Spice
Breads N More
RAINBOWS
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DAILY BREAD (CASE STUDY)
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
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
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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
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
DAILY BREAD COMPETITIVE ADVANTAGES
Some of the competitive advantages that the company enjoys are as follows-
Over 100 varieties of European artisan & country style breads
An assortment of over 100 types of specialty gateaux, cheesecakes and mousse
cakes
A wide variety of exotic fillings and spreads sandwiched in over a dozen type
of bread loaves and wraps
An array of specialty gourmet pizzas and savouries including quiches, puffs,
pies and vol-au-vents
Premium range of designer liqueur & luxury cakes for special occasions made
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Bakery chefs with international and five star hotel experience using state-of-
the-art imported bakery and kitchen equipment
Products packaging and display standards at world-class levels
Production facilities compliant with international hygiene standards.
Complete support for ‘Point of Sale’: Consulting services for in-store bakery
or bread display layout, equipment & ambience
Training and development for bakery counter staff
Customized products for each client based on end user profile and sales
analysis
Benefit from continuous research & development conducted by Daily Bread
and its recipe transfer partner in Hong Kong – e.g. ever expanding list of low
fat and diet friendly bakery products, gluten free products for diabetics and
organic products
Sales support and promotion
Higher revenues through increased ‘footfalls’ & ACP
Consistent quality and reliability of bakery products across locations.
SOME OF WELL KNOWN SKU’S
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SL NO ITEM NAMENet Wt
(gm)Shelf Life MRP
1. Bread Sticks - Methi 150 14 Days 23
2. CHOCOLATE TWIST 150 6 Days 34
3. CHOCO ALMOND Stick 100 10 Days 90
4. Bread Crumb 400 15 Days 35
5. Brioche Chocolate 400 4 Days 45
6. Buns – (Soft) (Spinach) FLAVOURED 300 4 Days 24
7. Burger Buns 200 4 Days 18
8. Cheese & Garlic Bread 250 4 Days 30
9. Curry Leaves & Mstd 350 4 Days 25
10. Jumbo bread 1000 4 Days 45
11. Masala Loaf 400 4 Days 30
12. Methi Ajwain Loaf 350 4 Days 25
13. Plain Buns (Dinner Rolls) 300 4 Days 21
14. Slice French Village S/W 350 4 Days 40
15. Slice Healthy Whole Wheat S/W 400 4 Days 23
16. Slice Mediterranean S/W 350 4 Days 40
17. Slice Muesli Sandwich 350 4 Days 40
18. Slice Premium English Butter Bread 400 4 Days 18
19. Slice S/W Loaf 300 4 Days 12
20
4
INSTITUTIONAL CLIENTS
METRO
PVR
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.
Expectations from
breakfast
Delivery By Daily Bread
Taste of the dish/ food
should be acceptable to all
members of the family
Enjoyable Food. Taste is good in
limited quantities. Quickly satiating.
Food should prevent
hunger pangs for 2-3
hours, so that children can
focus on their studies
Since one gets satiated with taste
quickly and is not aware as to what are
different varieties and with what
alternatives they can be consumed so
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clearly. not much acceptance.
Breakfast should be
healthy and nutritious.
Daily bread has all the nutrients, herbs
which make it and healthy option.
Breakfast easy to make. Can be consumed directly or with
butter, jam, cheese, sauces, cream.
There should be variety. Has unique basket of 43 varieties but all
are not breakfast items as some are
delicacies to be consumed on special
occasions only.
Breakfast should be non-
oily.
Light but depend on the variety
consumed.
The variants should be not
to expensive to be
consumed on regular basis
Except few SKU’S most of the variants
are extremely high priced.
The variants should be
advertised and promoted to
establish value proposition.
Except few promo no consumer
awareness.
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COMPANY SEGMENTATION AND POSITIONING-
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
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.
Daily Bread’s business model offers significant growth potential driven by
strong macro drivers: rapid urban population growth, increasing affluence,
changing food consumption patterns and lifestyle trends in urban areas and
rapid expansion and improvement of standards in organized retailing in
India .Daily Bread’s envisaged business model incorporates multiple revenue
streams from a complete suite of fresh & frozen bakery, confectionary &
specialty food products catering to a diverse wholesale & retail client base.
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-
1. On the basis of PRICE-
Products are classified on the basis of the price:-
Premium (>Rs50 and above) - which can be enjoyed as a special savory or a
delicacy on special occasions like Evening brunches or parties.
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Popular(Between Rs20 to Rs50)-These are the varieties which have different
flavours and unique taste hence can be consumed by the consumer as part of his
special breakfast or evening snacks on weekend when he has the time to pamper
oneself at the same time an offering that is different from everyday breakfast food.
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.
PREMIUM POPULAR ECONOMY
SKU PRICE SKU PRICE SKU PRICE
German Sour
Rye Loaf
71 Assorted Crouton 24 Buns Soft
Spinach
Flavoured
15
Mexicorn 56 Baguette Parisian 41 Burger Buns 19
Multi Grain
Loaf
51 Bread Sticks Methi 24 Garlic Pizza
Base
15
Raisin N Nut
Broche
56 Brioche chocolate 46 Hot Dog Roll 18
Scandinavian
Rye Bread
56 Cheese n Garlic 31 Mumbai
Butter Pav
18
Fruity Fit 95 Ciabatta 46 Slice sandwich
Loaf
13
Choco Almond
stick
90 Curry leaves n
Mustard
26 Submarine
Loaf
18
Jumbo Bread 46 English
Premium
19
24
butter Bread
Loaf Spinach 31 Milk Bread 17
Masala loaf 31 Brown Bread 17
Methi Ajwain Loaf 26 Sandwich
Bread
16
Mumbai Whole
Wheat Pav
22
Dinner Rolls 22
Slice French Village 41
Healthy Whole
Wheat
24
Slice Museli 41
Slice Mediterranean 41
Welsh Fruit Loaf 46
Jumbo Medium
White Loaf
31
Chocolate Twist 34
Milk and Honey
Plait
35
25
2. On the basis of Occasions-
Based on the varying occasions the various SKUs can be classified under the following heads-
EXOCTIC
/SPECIAL
OCCASIONS
NORMAL
OCCASIONS
TEA TIME
SAVOURIES
DINNER
OFFER-
INGS
BREAKFAST
SPECIALS
Raisin Nut n Brioche Sandwich bread Chocolate
Croissants
Dakshin
Housewife
loaf
Cheese n Garlic
Loaf
German Sour Rye
Loaf
Mumbai Butter
pav
Assorted
Cookies
Plain Buns Sandwich
Bread
Chocolate Twist Brown Bread Masala Loaf Dinner
Rolls
Milk Bread
Paneer Croissant Slice Sandwich
loaf
Cookies
Choco chip
Haldi
Methi
Ajwain
Brown Bread
Veg Moneybag Milk Bread Cookies
Ginger Dip
Healthy Whole
wheat Bread
Chicken Puff English
Premium Butter
Bread
Muffins English
Premium Butter
bread
Veg Puff
Cheese Straws
Garlic Pizza
Base
Italian Black
and White
Chocolate
Croissants
Burger buns
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biscotti
Fruity fit Museli Loaf Cinnamon
Twist
Bread Crumbs
Milk N Honey plait Slice French
Village
Welch Fruit
Loaf
Parisian baguette
Panini Herb
German Sunflower
and Walnut Loaf
Ciabbatta - Black
Olives
3. On the basis of TARGET GROUP-
TARGET GROUP EXAMPLES
ADULT MALE Masala Loaf, Brown bread,English
Premium Butter Bread,Haldi Methi
Ajwain, Slice sandwich Loaf, Curry
Leaves N mustard, Cheese N Garlic
Loaf
ADULT FEMALE Focaccia Onion and Sun Dried Top,
Dakshina Housewife Loaf,Haldi MethI
27
Ajwain Loaf
TEENAGE BOYS/GIRLS Hot Dog Roll, Submarine Roll,
Sandwich Bread, Burger Buns,
Chocolate Croissants, Choco Chip,
Almond Cookies, Raisin N Nut
Brioche.
AGED ADULTS (HEALTHY
CONSCIOUS)
Brown bread, Panini Herb.Healthy
Whole wheat, Scandinavian Rye bread,
Fruity Fit, Museli Bread,
Mediterranean Bread.
KIDS Welsh Fruit Loaf, Sandwich bread,
Milk bread, Jumbo bread, Submarine
Roll, Burger buns, Hot dog Roll,
Mumbai Butter Pav
ENTIRE HOUSEHOLD Mumbai butter Pav, Brown Bread, Milk
Bread, Sandwich Bread, Healthy whole
wheat Bread, English Premium Butter
Bread.
4. On the basis of FLAVOURS
The vast basket of goods can also be classified on the basis of its unique flavor or taste-
TASTE VARIANT
SPICES FLAVOURED Haldi Methi Ajwain Loaf,Daksin
Housewife Loaf, Masala bread, Curry
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leaves n Mustard ,Flavored Buns
HERBS ,GLUTEN AND PESTO Panini herb,Scandivanian loaf,
Mediterranean Bread, American Rye
Loaf, Loaf Polish Rye, Italian Bell Paper
And Toscanne Loaf, Mixed Herbs
Croutons
Butter Flavored English Premium Butter Bread, Masala
Loaf, Mumbai Butter Pav
GARLIC /CINNAMON FLAVOURED Pizza Base, Hot Dog Roll, Spinach Loaf
CHEESE FLAVOURED Submarine Roll, Cheese N Garlic Loaf
MILK AND HONEY FLAVOURED Milk Bread,Milk N Honey Plait,Fuity Fit,
Almond N Raisin Brioche
CHOCOLATE FLAVOURED Chocolate Brioche
WHOLE GRAIN BREAD Healthy Whole Wheat Bread,Museli
Sliced Bread
WHEAT FLOUR BREAD Rustica Wheat And Walnut Loaf,
American Rye Loaf. Rye Flour.
5. On the basis of Weight (Gram mage)-
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.
WEIGHT GRAMMAGE) VARIANT(SKU)
50 to 150 Gm. Mumbai Butter Pav, Submarine Roll, Hot
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Dog Roll, Burger Buns, Dinner Rolls.
Mumbai Whole Wheat Pav,Buns
Flavoured,Panini Herb
150 to 250 Gm. Garlic Pizza Base, Herb Bread
Sticks,Methi Ajwain Loaf,
250 to 350 Gm. Curry Leaves N Mustard, Cheese N
Garlic Loaf, Milk N Honey Plait, Almond
N Raisin Brioche
450 to 550 Gm. Multi grain Loaf
550 to 650 Gm.
650 to 750 Gm.
750 to 850 Gm.
850 to 950 Gm.
950 to 1050 Gm. Bread Crumbs, Harlequin Sliced Bread,
Jumbo Sandwich
6. On the basis of Colour
Colour Variant
Yellow Colour Haldi Methi Ajwain
White colour Sandwich bread, Milk bread, Curry leaves
N Mustard(green Leaves),Pizza Base,
Panini Herb
Light Brown English Premium butter bread,Flavoured
buns, Burger Buns, dinner Roll, Healthy
Whole Wheat bread
Dark Brown Masala Loaf, Chocolate Brioche
30
ZONE WISE ANALYSIS-
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
BREAD CITY- South Delhi
I.A.H TRADERS- North Delhi
GAURAV ENTERPRISES- East Delhi
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.
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.
31
ANALYSIS OF SALES REPORT
.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-
Healthy Whole Wheat.
Brown Bread
Milk Bread
Haldi Methi Ajwain.
Curry Leaves and Mustard.
Cheese and Garlic Loaf.
Burger Buns.
Butter Pav.
Slice Sandwich Loaf.
Dinner Roll.
Healthy Methi Sticks.
32
2. NAMDHARI FRESH
Museli Bread.
Healthy Whole Wheat Bread.
Haldi Methi Ajwain.
Curry Leaves and Mustard.
Brown Bread.
Milk Bread.
Burger Buns.
3. EXPRESS RETAIL (BIG APPLE)
English Premium Bread
Healthy Whole Wheat.
Brown Bread
Milk Bread.
Mumbai Butter Pav.
Submarine Rolls.
Dinner Rolls.
Masala Bun.
Slice Sandwich Loaf.
4. SUBHIKSHA TRADING PVT LTD
Curry Leaves and Mustard.
Mumbai Butter Pav
Masala loaf.
33
Mumbai Whole Wheat.
Healthy Whole Wheat.
Bread Sticks Methi .
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.
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-
Foccacia Onion Sun Dried and Tom.
Garlic Pizza Base.
Scandinavian Rye Bread.
Slice Mediterranasn Bread.
Slice Museli Sandwich.
Cheese and Garlic.
Hot Dog Roll.
Multigrain Loaf.
French Village.
Loaf Spinach.
34
RESEARCH METHODOLOGY
1. Problem formulation
1a. Primary objective
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
1b. Information required.
The information that were required other then the research were about the
consumption pattern & income level in Delhi & NCR region.
2. Determining the research design:
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.
35
3. Data Collection Methods:
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.,
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 should people be questioned?
What should be the mode of administration of the questionnaire?
What is to be measured?
Can objective answer be obtained by asking the people?
Should the purpose of study be made available to the respondent?
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 following choices were made while collecting primary data:
(a) Degree of Structure: Structured.
(b) Degree of Disguise: Undisguised
(c) Method of Administration: Personal interview.
36
3c. Questionnaire design:
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:
It translates the research objective into specific questions.
Standardize the question and all or some of the response categories.
Fosters co-operation and motivation.
Serves as the permanent record of the research.
Speed up the process of data analysis.
Serves as the basis for reliability and validity measure.
4. Procedure of questionnaire:
Procedure which was followed to design a questionnaire.
i. What kind of information will be sought?
ii. Type of questionnaire and method of administration.
iii. Content of individual question.
iv. Form of response to each question.
v. Wording of each question.
vi. Sequence of each question.
vii. Physical characteristic of each question.
5. Designing sample:
Non Probability Sampling
It is basically a form of Convenience sampling in which the population elements are
purposely selected based on the judgment of the researcher.
In this project researcher preferred non judgment sampling for Retailers & consumers
in Delhi and NCR region.
37
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
38
AMITY UNIVERSITY
UTTAR PRADESH
AMITY BUSINESS SCHOOL - AU
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
Questionnaire for Retailers
1). Do you keep specialty breads.
Ans. 1) Yes 2) No
IF YES:-
2) You keep product of local bakery or a known company?
Ans. a) Local bakery
b) Known company
3) How many varieties you keep?
Ans. a) 0-5
b) 5-10
c) >10
39
4) What is the daily sale of speciality bread?
Ans.
5) Margins you are looking for?
Ans.
6) How you find the future of the specialty breads?
(Only in DELHI AND NCR. region)
a) Promising b) average c) not promising
Name:-
Place:-
---------------------------------------- Thanking you ---------------------------------------------
40
FINDINGS:-
1.
Availability Of Product
52
248
0
50
100
150
200
250
300
X Y
No
. o
f R
etai
lers
Series1
X=Retailers who keep specialty BreadsY=Retailers who don’t keep specialty Breads
FIG.1
.
2.
1824
0
5
10
15
20
25
No. of Retailers
X Y
Brand vs Non Brand
Series1
X=Retailers who keep Local specialty Breads
41
Y=Retailers who keep Branded specialty Breads FIG.2
3.
10
22 20
0
5
10
15
20
25
No. of Outlets
X<5 5<X<10 X>10
Variety of specialty Breads
Varities at Outlets
Series1
X= Variety of specialty Breads
FIG.3
4.
X= Promising
42
Y= AverageZ= Not promising
FIG.4
AMITY UNIVERSITY
UTTAR PRADESH
AMITY BUSINESS SCHOOL
Questionnaire for Consumers
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-
(Please put (*) sign against right option)
Que.1-Have you tasted any of speciality breads (listed below) before :-( If ‘NO’,
Leave This Question Blank)
Ans.
a-Cheese Garlic bread e-French bread
b-Multi grain bread f-Masala bread
c-Dinner roll bread g- Mushroom bread
d-Hot Dog bread h-Other (specify)………..
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)……………………………………………………
43
Que.3- Have you ever tried speciality bread at home?
Ans.
1) Yes 2) No
Que.4- According to you, Price of the product is –
Ans.
1) Low 2) Reasonable 3) High 4) No Idea
Que.5-Availability of the product nearby your home (In Distance)-
Ans.
1) 0-2 km 2) 2-5km 3) more than 5 km 4) No Idea
Que.6- Have you suggested speciality breads to anyone –?
Ans.
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
44
e- Other (Please Specify)……………………………………………………
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-
Residence (Area & City only)-
Annual Income- a) less than 5 lakhs b) 5- 10 lakhs c) 10- 15 lakhs
d) More then 15 lakhs
(Family Income)
----------------------------------- Thanking you ---------------------------------------------
45
FINDINGS:-
1.Have you tasted speciality bread
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid yes 73 76.8 76.8 76.8
no 22 23.2 23.2 100.0
Total 95 100.0 100.0
46
FIG.5
47
2.Where did you observed speciality breads for the first time-:
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Food outlets 38 40.0 43.2 43.2
Restaurant or Hotel’s
Menu Card22 23.2 25.0 68.2
Local Bakery shops or
Grocery store26 27.4 29.5 97.7
Other 2 2.1 2.3 100.0
Total 88 92.6 100.0
Missing System 7 7.4
Total 95 100.0
FIG.6
48
3.
Have you ever tried Specialty bread at home
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 60 63.2 63.2 63.2
no 35 36.8 36.8 100.0
Total 95 100.0 100.0
FIG.7
49
4.Price of the product is
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Low 10 10.5 10.5 10.5
reasonable 39 41.1 41.1 51.6
High 32 33.7 33.7 85.3
no idea 14 14.7 14.7 100.0
Total 95 100.0 100.0
FIG.8
50
5.Availability of the product nearby your home(In Distance)-
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid 0-2 km 24 25.3 25.3 25.3
2-5 km 35 36.8 36.8 62.1
>5km 27 28.4 28.4 90.5
no idea 9 9.5 9.5 100.0
Total 95 100.0 100.0
FIG.9
51
6.Have you suggested speciality breads to anyone -
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid yes 59 62.1 62.1 62.1
no 36 37.9 37.9 100.0
Total 95 100.0 100.0
FIG.10
52
7.Have you Find the speciality breads of Companies given below at
Grocery stores
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid BRITANNIA 21 22.1 25.6 25.6
DAILY
BREAD27 28.4 32.9 58.5
CREMICA 12 12.6 14.6 73.2
BONN 16 16.8 19.5 92.7
Other 6 6.3 7.3 100.0
Total 82 86.3 100.0
Missing System 13 13.7
Total 95 100.0
FIG.11
53
8.Have you seen any Promotional activity of the product through
Electronic Media (T.V) or Print Media
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid yes 27 28.4 28.4 28.4
no 68 71.6 71.6 100.0
Total 95 100.0 100.0
FIG.12
54
DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS
1.
Gender Break Up
60
35Men
Women
FIG.13
2.
3528
2012
0
5
10
15
20
25
30
35
No. Of Responden
ts
20<X<30 40<X<50
Age (in Years)
Age Break Up
Series1
FIG.14
55
3.
Occupation wise Break up
53, 56%25, 26%
17, 18%Service
Business
Other
FIG.15
4.
21
33
41
05
1015202530354045
No. Of Repsonden
ts
X<5 5<X<10 X>10
Annual Income(in lakhs)
Annual Income Break Up
Series1
FIG.16
56
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 (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.
57
No. of Households in millions
Shifting Income level
1.2 2.410.9
91.3101.1
3.3 5.5
55.1
106.1
74.1
9.5
33.1
94.9 93.1
49.9
0
20
40
60
80
100
120
A B C D E
No
. o
f H
ou
seh
old
s
2005(E)
2015(F)
2025(F)
FIG.17
THOUSAND INDIAN
RUPESS 2005(E) 2015(F) 2025(F)
GLOBALS (>1000) 1.2 3.3 9.5
STRIVERS(500-1000) 2.4 5.5 33.1
SEEKERS (200-500) 10.9 55.1 94.9
ASPIRERS(90-200) 91.3 106.1 93.1
DEPRIVED(<90) 101.1 74.1 49.9
58
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 report reveals that just 4.67% of Delhi’s families have a
per capita expenditure of more than Rs. 3000 taking a unit of five as a family, this
figures comes to paltry Rs. 15000 as expenses for the whole month for the economic
strata that can actually be termed the cream of Delhi. It’s a different matter that at 7
lakh people (Delhi has population of about 1.6 crore ) this group is actually bigger
many Indian cities . According to the 2001 census 35 cities of India have a population
of more than 10 lakh
Sources: - Times of India, Wednesday, June 25, 2008
The Positioning should be like healthy, consistent, reliable, quality, hygienic, and
easily prepared food
59
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
<30 yrs 30-49 yrs 50-60 yrs >65 yrs
Use search
engines89 85 79 67
Search several
X/day27 25 15 8
Can’t live w/out
engines36 35 26 18
Very Confident
60
searchers 53 51 37 29
Always find
results22 16 13 9
Mostly important
searches36 27 23 17
Trust engines
72 68 65 66
Paid results OK
74 71 69 60
Table: Internet usage at different age groups
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
61
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
An online directory is a specialized listing consisting predominantly of information
about businesses. Online directory is the list of suppliers of a specific product or
service. Many of the corporate houses and companies reach these directories for the
raw material, semi-finished and finished products. These online directories earn a
significant amount of business.
The online directory provides website link and information for everything form
shipping to real estate, property and dating website to recruitment website
62
Blog
A blog (web log) is a website, usually maintained by an individual, with regular
entries of commentary, descriptions of events, or other material such as graphics or
video. Entries are commonly displayed in reverse chronological order. "Blog" can
also be used as a verb, meaning to maintain or add content to a blog. Many blogs
provide commentary or news on a particular subject; others function as more personal
online diaries. A typical blog combines text, images, and links to other blogs, web
pages, and other media related to its topic. The ability for readers to leave comments
in an interactive format is an important part of many blogs. Most blogs are primarily
textual, although some focus on art (artlog), photographs (photoblog), sketchblog,
videos (vlog), music (MP3 blog), audio (podcasting) are part of a wider network of
social media.
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
businesses. Blogs are growing in popularity; however, some businesses are still
reluctant to join the millions of blogs already in existence.
63
In an article on PRWeek.com, the importance of blogs is stressed. The reasoning
behind blogs as well as blogging ethics is also stated. There are a huge number of
blogs already in existence throughout the world. The article states, “A July 2005
study by real-time blog search engine Technorati and Pew Research found that there
are approximately 14 million blogs in existence, 32 million people reading blogs, and
some 38,000 blogs created daily.” The article goes on to mention the importance of
PR practitioners using blogs,
Advantages of Blogs
A) Quick and Easy
B) Inexpensive Setup
C) Provides Easy Access to Company News
D) Search Engine Friendly
E) Appear Accessible
F) Appear Authoritative
G) Brand Awareness
I) Gain an Insight Into Your Customers
64
Marketing Strategies
Marketing strategies for B2B business:
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.
Manufacturing companies should also be targeted. Most of the manufacturing
companies have a launch party for their new products. Specialty breads can be used as
delicious food their.
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.
How to go about it:
TV advertisements will not be very effective for corporate sector, as people
working in big companies do not get enough time to watch TV. Instead we
suggest following marketing strategies:
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.
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.
There is a saying, “It’s better to be first, than better to be better.”
65
Sponsoring company specific events like project completion, project launch,
company sponsored parties etc can be very effective as these events grab a lot
of attention of whole corporate sector. Hence it will help in publicizing the
product at a larger scale.
. Newspapers will help in making the product popular in employees of the
target companies. The advertisements should be very creative and should grab
the attention of readers in one look.
Also print advertisements must project specialty bread as a synonym of
healthy & delicious food , To do this its advertisement indicate its ingredients
which are healthy
Recommendations for marketing strategies in B2B business
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.
3. Customizing options like the specific taste could be provided to certain
MNC’s.
4. The company can also target airlines as they generally have overseas
passengers and the creamy layer of Indian consumers.
66
Promotion program:
In terms of the promotion program considering the hefty manufacturing and
packaging procedures, Program should be design in such a way that it shows that the
Product is made with utter care and imbibes healthy ingredient . The promotions can
aim on this feature and can thus term is as product for those who are very conscious
about their health and look for delicious food.
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.
67
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.
Initially metros and tier-I city should be targeted.
Target market :
15-25 years old college going people
Upper-Middle and higher income group people(Corporate People &
Businessmen)
Working women & health conscious housewives
68
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.
.
69
Recommendations
Specialty Breads are a premium Product so Britannia should concentrate more
on business and executive class.
In FMCG sector distribution channels plays a very important role. Britannia
should use new distribution channel. So that Consumers could differentiate the
product from the normal Bread.
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.
Consumers in Delhi & NCR generally go for shopping on weekends. Thus
weekends are the most appropriate time for sampling at malls & areas like
Khan Market, Azmal Khan Road, Vasant Vihar are the hot spots.
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
Product at POP. The product has enough potential, but to make it a successful
product Company has to focus on Retailers. .
Proper advertisement is the key to tap potential consumers. Innovative ways of
advertisements like online marketing should be used by the company to
achieve its goals.
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.
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PERCEPTION MAPPING
Price. *Daily Bread.
*Cremica / Bonn
*Perfect Bread.
*Britannia.
*Harvest
Gap
Quality
*
* Need of a product which is high in quality & low in price
FIG.19
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PORTER FIVE FORCES ANALYSIS
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.
Michael Porter provided a framework that models an industry as being influenced by
five forces. The strategic business manager seeking to develop an edge over rival
firms can use this model to better understand the industry context in which the firm
operates:
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
BARRIERSTO ENTRY
Absolute cost advantages Proprietary learning curve
Access to inputs Government policy Economies of scale
Capital requirements Brand identity
Switching costs Access to distribution
Expected retaliation
Proprietary products
THREAT OFSUBSTITUTES Switching costs Buyer inclination to substitute Price-performance
trade-off of substitutes
BUYER POWER Bargaining leverage
Buyer volume Buyer information
Brand identity Price sensitivity
Threat of backward integration Product differentiation
Buyer concentration vs. industry Substitutes available
Buyers' incentives
DEGREE OF RIVALRY Exit barriers Industry concentration Fixed costs/Value added Industry growth Intermittent overcapacity Product differences Switching costs Brand identity Diversity of rivals Corporate stakes
FIG.20
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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 threat of entry:
Economies of scale e.g. the benefits associated with bulk purchasing.
The high or low cost of entry e.g. how much wills it cost for the latest
technology?
Ease of access to distribution channels e.g. Do our competitors have the
distribution channels sewn up?
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.
Will competitors retaliate?
Government action e.g. will new laws be introduced that will weaken our
competitive position?
How important is differentiation?e.g. The Champagne brand cannot be copied.
This desensitises the influence of the environment.
The power of buyers:
This is high where there a few, large players in a market e.g. the large grocery
chains.
If there are a large number of undifferentiated, small suppliers e.g. small
farming businesses supplying the large grocery chains.
The cost of switching between suppliers is low e.g. from one fleet supplier of
trucks to another.
The power of suppliers:
The power of suppliers tends to be a reversal of the power of buyers.
Where the switching costs are high e.g. switching from one software supplier
to another.
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Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
There is a possibility of the supplier integrating forward e.g. Brewers buying
bars.
Customers are fragmented (not in clusters) so that they have little bargaining
power e.g. Gas/Petrol stations in remote places.
The threat of substitutes:
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.
Where there is generic substitution (competing for the currency in your
pocket) e.g. Video suppliers compete with travel companies.
We could always do without e.g. cigarettes.
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.
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Analysis of Specialty Bread
The threat of entry:
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
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.
The power of buyers:
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.
The power of suppliers:
In India limited numbers of companies deliver premium Specialty breads. Demand is
low in current situation. This restricts the power of suppliers to modify or change
prices of raw material and the have very limited influence on final prices. Also
unorganized sector curbs the power of suppliers. Suppliers have a limited say in
determining the price of Specialty breads.
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The threat of substitutes:
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:
. 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.
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APPENDIX
Appendix for social networking sites
Social media create some significant opportunities for businesses. An interactive
agency called smash LAB in Vancouver recently published a white paper on social
media. Social networking opportunities it cited included:
• Social networking helps business owners connect with their best customers.
• It gives customers a platform to communicate and a reason to become advocates for
a business.
• It creates a shift from simply sending a message to engaging the recipient in
conversation. The process invites discussion, and it allows users to share their
experiences.
• Blogs promote customer response and help business owners gain insight.
Customer feedback, which is almost instantaneous, allows you to measure marketing's
effectiveness quickly and then to modify your tactics.
Concentrate on delivering value to interested parties without immediately
concentrating on the desire to sell your product or service.
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
2. Strategy Management by Hill and Jones
3. Marketing research by Churchill & Iacobucci
4. Marketing research by Naresh k. Malhotra
5. Mc Kinsey & Co. consumer report 2007
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
9. Bakery industry witnesses a revolution
10. http://www.expresshospitality.com/20070731/management05.shtml
11. Welcome to bakeryindia.com
12. www.mrsbectorfoods.com
13. Share of Bread players
14. http://66.242.153.37/research-it/sector-info/food/fy06.html
15. www.daiybread.cc
16. . Britannia Industries Ltd-
17. Web site: www.kslindia.com; www.kslinvestor.com.
18. http://images.google.co.in/images?
q=pictures+of+breads&um=1&hl=en&start=20&sa=N&ndsp=20
19. Tastes of India in U.S. Wrappers.
20. http://www.businessweek.com/innovate/content/may2006/
id20060508_95245htm
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21. .Other Internet sites of potential interest
22. Baking Association of Canada
23. www.bakingassoccanada.com;
24. Québec Bakery Council:
25. Bakery-Net, May 2004 newsletter. www.bakey-net.com
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