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



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 in Delhi and NCR region” as a part of the course requirements of Masters of region 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: Place: Noida




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.

Date: Place: Noida

Ms.Varsha Khattri Faculty Guide


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.

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.


Table of Content
Acknowledgement Abstract 1. Need of the Project 2. Objective of the project 3. Introduction 3.1 Bakery Industry 3.2 Indian Bread Industry 3.3 Emergence of Healthy products 4. About the company 4.1 Production 4.2 Basket of Britannia 5. Market strategy 5.1 Market Trends 5.2 Competitors 6. Daily Bread (Case Study) 6.1 Company Objective 6.2 Competitive Advantage ………..2 ………...5 ………...11 ………..11 ………..12 ………...12 ………..12 ………..13 ………..14 ………..14 ………..14 ………...15 ………..15 ………..15 ………..17 ………..18 ………..18


6.3 Institutional Clients 6.4 Company segmentation & Positioning 6.5 Zone wise Analysis 6.6 Analysis of Sales Report 7. Research Methodology

………..21 ………..23 ………..31 ………..32 ………..35

8. Questionnaire for Retailers 9. Findings 10. Questionnaire For consumers 11. Findings 12. STP Analysis 13. Scope of Improvement 14. Marketing strategies 14.1 For B2B 14.2 For Retailers 15. Recommendations 16. Porter Five Force Model 17. Appendix

………..39 ………..41 ………..43 ………..46 ………..56 ………..59 ………..64 ………..64 ………..67 ………..69 ………..70 ………..75


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

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


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


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.


INTRODUCTION BAKERY INDUSTRYBakery 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.


• 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. • 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.



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” - 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.

The group’s principal activities are manufacturing & marketing• • • • • 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.

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 BREADStarted 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.


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

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 freshlybaked gourmet foods, and marked its entry into the premium `out of home' and `in home' consumption


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

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 Bakery chefs with international and five star hotel experience using state-ofthe-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.



SL NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

ITEM NAME Bread Sticks - Methi CHOCOLATE TWIST CHOCO ALMOND Stick Bread Crumb Brioche Chocolate Buns – (Soft) (Spinach) FLAVOURED Burger Buns Cheese & Garlic Bread Curry Leaves & Mstd Jumbo bread Masala Loaf Methi Ajwain Loaf Plain Buns (Dinner Rolls) Slice French Village S/W Slice Healthy Whole Wheat S/W Slice Mediterranean S/W Slice Muesli Sandwich Slice Premium English Butter Bread Slice S/W Loaf

Net Wt (gm) 150 150 100 400 400 300 200 250 350 1000 400 350 300 350 400 350 350 400 300

Shelf Life MRP 14 Days 6 Days 10 Days 15 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 4 Days 23 34 90 35 45 24 18 30 25 45 30 25 21 40 23 40 40 18 12




• • • • • •



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 Taste of the dish/ food should be acceptable to all members of the family

Delivery By Daily Bread

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 clearly.

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 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 nonoily. The variants should be not to expensive to be consumed on regular basis The variants should be advertised and promoted to establish value proposition.

Light but depend on the variety consumed. Except few SKU’S most of the variants are extremely high priced.

Except few promo no consumer awareness.


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 PRICEProducts 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. 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.




SKU German Sour Rye Loaf


SKU Assorted Crouton


SKU Buns Soft Spinach Flavoured


Mexicorn Multi Grain Loaf Raisin N Nut Broche Scandinavian Rye Bread Fruity Fit

56 51

Baguette Parisian Bread Sticks Methi

41 24

Burger Buns Garlic Pizza Base

19 15


Brioche chocolate


Hot Dog Roll



Cheese n Garlic


Mumbai Butter Pav





Slice sandwich 13 Loaf

Choco Almond stick


Curry leaves n Mustard Jumbo Bread


Submarine Loaf



English Premium butter Bread


Loaf Spinach Masala loaf Methi Ajwain Loaf

31 31 26

Milk Bread Brown Bread Sandwich Bread

17 17 16

Mumbai Whole



Wheat Pav Dinner Rolls Slice French Village Healthy Whole Wheat Slice Museli Slice Mediterranean Welsh Fruit Loaf Jumbo Medium White Loaf Chocolate Twist Milk and Honey Plait 34 35 41 41 46 31 22 41 24

2. On the basis of OccasionsBased on the varying occasions the various SKUs can be classified under the following headsEXOCTIC /SPECIAL OCCASIONS NORMAL OCCASIONS TEA TIME SAVOURIES DINNER OFFERINGS BREAKFAST SPECIALS


Raisin Nut n Brioche Sandwich bread

Chocolate Croissants

Dakshin loaf

Cheese n Garlic

Housewife Loaf

German Sour Rye Loaf Chocolate Twist

Mumbai Butter pav Brown Bread

Assorted Cookies Masala Loaf

Plain Buns Sandwich Bread

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 English Premium Butter bread

Chicken Puff

English Premium Butter Bread


Veg Puff

Garlic Pizza Base

Italian Black and White Chocolate Croissants biscotti

Burger buns

Cheese Straws

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 GROUPTARGET GROUP ADULT MALE EXAMPLES 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 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




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 tasteTASTE SPICES FLAVOURED VARIANT Haldi Methi Ajwain Loaf,Daksin Housewife Loaf, Masala bread, Curry 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 CHEESE FLAVOURED MILK AND HONEY FLAVOURED Pizza Base, Hot Dog Roll, Spinach Loaf Submarine Roll, Cheese N Garlic Loaf Milk Bread,Milk N Honey Plait,Fuity Fit, Almond N Raisin Brioche CHOCOLATE FLAVOURED WHOLE GRAIN BREAD Chocolate Brioche 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) 50 to 150 Gm. VARIANT(SKU) Mumbai Butter Pav, Submarine Roll, Hot 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. 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 Multi grain Loaf


6. On the basis of Colour
Colour Yellow Colour White colour Variant Haldi Methi Ajwain 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


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 CITYI.A.H TRADERSGAURAV ENTERPRISESSouth Delhi North Delhi 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.

.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 promoted1. SPENCERSHealthy 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.

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. 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 likeFoccacia 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.


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.

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.

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. ii. iii. iv. v. vi. vii. What kind of information will be sought? Type of questionnaire and method of administration. Content of individual question. Form of response to each question. Wording of each question. Sequence of each question. 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.


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



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 IF YES:2) No

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

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



---------------------------------------- Thanking you ---------------------------------------------

FINDINGS:1. Availability Of Product
300 250 No. of Retailers 200 150 100 52 50 0 X Y Series1 248

X=Retailers who keep specialty Breads Y=Retailers who don’t keep specialty Breads

FIG.1 . 2.


Brand vs Non Brand

25 20 No. of 15 Retailers 10 5 0 X Y 24 18 Series1

X=Retailers who keep Local specialty Breads Y=Retailers who keep Branded specialty Breads


3. Varities at Outlets
25 20 No. of 15 Outlets 10 5 0 10







Variety of specialty Breads

X= Variety of specialty Breads



4. Future of Specialty Bread

Series1, Y,Series1, Z, 0, 0% 7, 13% X Y Series1, X, 45, 87% Z

X= Promising Y= Average Z= Not promising



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 b-Multi grain bread c-Dinner roll bread d-Hot Dog bread

e-French bread f-Masala bread g- Mushroom 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)……………………………………………………

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 Que.6Ans. 2) 2-5km 3) more than 5 km 4) No Idea

Have you suggested speciality breads to anyone –?


1) Yes

2) No

Que.7Blank) Ans.

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

a- Britannia b- Daily bread c- Cremica d- Bonn e- Other (Please Specify)……………………………………………………


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 AgeOccupationResidence (Area & City only)Annual Income- a) less than 5 lakhs d) More then 15 lakhs b) 5- 10 lakhs c) 10- 15 lakhs


(Family Income)

----------------------------------- Thanking you ---------------------------------------------

FINDINGS:1.Have you tasted speciality bread Cumulative Frequency Percent Valid yes no 73 22 76.8 23.2 100.0 Valid Percent Percent 76.8 23.2 100.0 76.8 100.0

Total 95




2.Where did you observed speciality breads for the first time-: Cumulative Frequency Percent Valid Food outlets Restaurant or Hotel’s Menu Card Local Bakery shops or Grocery store Other Total Missing System Total 38 22 40.0 23.2 Valid Percent Percent 43.2 25.0 43.2 68.2

26 2 88 7 95

27.4 2.1 92.6 7.4 100.0

29.5 2.3 100.0

97.7 100.0

FIG.6 3.


Have you ever tried Specialty bread at home Cumulative Frequency Valid yes no Total 60 35 95 Percent 63.2 36.8 100.0 Valid Percent 63.2 36.8 100.0 Percent 63.2 100.0



4.Price of the product is Cumulative Frequency Percent Valid Low 10 10.5 41.1 33.7 14.7 100.0 Valid Percent Percent 10.5 41.1 33.7 14.7 100.0 10.5 51.6 85.3 100.0

reasonable 39 High no idea Total 32 14 95



5.Availability of the product nearby your home(In Distance)Cumulative Frequency Percent Valid 0-2 km 24 2-5 km 35 >5km 27 25.3 36.8 28.4 9.5 100.0 Valid Percent Percent 25.3 36.8 28.4 9.5 100.0 25.3 62.1 90.5 100.0

no idea 9 Total 95




6.Have you suggested speciality breads to anyone Cumulative Frequency Percent Valid yes no 59 36 62.1 37.9 100.0 Valid Percent Percent 62.1 37.9 100.0 62.1 100.0

Total 95



7.Have you Find the speciality breads of Companies given below at Grocery stores Cumulative Frequency Percent Valid BRITANNIA 21 DAILY BREAD CREMICA BONN Other Total Missing System Total 27 12 16 6 82 13 95 22.1 28.4 12.6 16.8 6.3 86.3 13.7 100.0 Valid Percent Percent 25.6 32.9 14.6 19.5 7.3 100.0 25.6 58.5 73.2 92.7 100.0



8.Have you seen any Promotional activity of the product through Electronic Media (T.V) or Print Media Cumulative Frequency Percent Valid yes no 27 68 28.4 71.6 100.0 Valid Percent Percent 28.4 71.6 100.0 28.4 100.0

Total 95




Gender Break Up

35 Men Women 60


2. Age Break Up
35 30 25 No. Of 20 Responden 15 ts 10 5 0 35

28 20 12




Age (in Years)


FIG.14 3. Occupation wise Break up

17, 18% 53, 56%

Service Business Other

25, 26%


4. Annual Income Break Up

45 40 35 30 No. Of 25 Repsonden 20 ts 15 10 5 0

41 33 21 Series1




Annual Income(in lakhs)



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 ASPIRERS SEEKERS STRIVERS GLOBAL INDIANS (<90) (90-200) (200-500) (500-1000) (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.


No. of Households in millions


THOUSAND INDIAN RUPESS 2005(E) 2015(F) 2025(F)

GLOBALS (>1000)








SEEKERS (200-500)












Shifting Income level
120 No. of Households 100 80 60 40 20 0 A 9.5 3.3 1.2 B 5.5 2.4 C 33.1 10.9 D E 55.1 106.1 94.9 93.1 91.3 101.1 74.1 49.9 2005(E) 2015(F) 2025(F)



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


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 advertisementON 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 Use search engines Search several X/day Can’t live w/out engines Very Confident 36 35 26 18 27 25 15 8 89 85 79 67 30-49 yrs 50-60 yrs >65 yrs


searchers Always find results Mostly important searches Trust engines













72 Paid results OK 74







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


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


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. In an article on, 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


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.”

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



4. The company can also target airlines as they generally have overseas

passengers and the creamy layer of Indian consumers.

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.


Retail MarketingFor 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

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. .



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.

Price. *Daily *Cremica / Bonn *Perfect Bread. *Britannia. *Harvest Gap Quality * Bread.


* 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. 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 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


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

Switching costs Buyer inclination to substitute Price-performance trade-off of substitutes

Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity Threat of backward integration Product differentiation Buyer concentration vs. industry Substitutes available Buyers' incentives

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 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. • • 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.

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.

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 15001800 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 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.


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.


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. 7.\Bakery products 8. 9. Bakery industry witnesses a revolution 10. 11. Welcome to 12. 13. Share of Bread players 14. 15. 16. . Britannia Industries Ltd17. Web site:; 18. =20&sa=N&ndsp=20 19. Tastes of India in U.S. Wrappers.



htm 21. .Other Internet sites of potential interest 22. Baking Association of Canada 23.; 24. Québec Bakery Council:
25. Bakery-Net, May 2004 newsletter.


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