B BU US SIIN NE ES SS SP PL LA AN N

HOT CROSS BUNZZ

WHERE BREAD JUST GOT BETTER!!

EXECUTIVE SUMMARY

Bread is a staple food prepared by baking a dough of flour and water. Bread is one of the oldest prepared foods, dating back to the Neolithic era. The development of leavened bread can probably also be traced to prehistoric times. Fresh bread is prized for its taste, aroma, quality and texture. Retaining its freshness is important to keep it appetizing. The first name that came to our mind while trying to shortlist one was Hot Cross Bunzz taken from a famous nursery rhyme which goes by the same name. Thus, this will serve our purpose of quicker brand recall. Awareness of high quality baked goods is on the rise. Good bread is a rare combination of nutrition, convenience, and luxury. Today's consumer has less time to create wholesome, handmade bread, but increasingly appreciates the nutritional and sensory benefits it provides. Good bread provides fiber and carbohydrates in a convenient, low fat form that is portable and delicious. Good bread never goes out of style. Hot Cross Bunzz will produce and sell high quality, handmade breads to the staff members and students. The Company will focus, at the onset, on ready-to-eat breads which can be heated and eaten on their own, without any accompaniments. This is done keeping in mind the shortage of time for eating as well as the wholesomeness of the bread. The breads will be like a mini meal themselves.

RESEARCH METHODOLOGY

Objective of Research To forecast the demand of our bread 3 variants

It is a hypothesis testing research which seeks to gain insights into the purchase behavior of the consumers (variables influencing) and forecast the demand on those bases.

Casual Research To test hypothesis of casual relationship between the variables.

Variables considered for purchasing Bread Taste Price Appearance Packaging Brand name Ingredients like fat, calories, etc Convenient as ready to eat Easy availability No better alternatives

Sample

Size 100 consumers given

Design Non Probability (non-random) sampling Multistage sampling Area Sampling 100 consumers from College are selected. Quota Sampling Out of these 100 consumers 10 students from each stream are selected. Convenient Sampling - 10 streams out of 13 streams and students are selected out of convenience

Assumptions This questionnaire has been rolled out in college a fortnight after the bread was being introduced in the canteen. (Without any advertisement). We plan first to introduce this bread in our college canteen and then expand from there on the bases of feedback, success, etc. Demand forecasting is been done for a short term period of 7-8 months. We introduce the bread with brand name Hot Cross Bunzz

DESCRIPTION OF BUSINESS

Description of Product- HOT CROSS BUNZZ is a small outlet selling introducing 3 new varieties of bread especially for staff and students. At the advent of success, we plan to gradually introduce different varieties of breads under the groups Regular breads, Speciality breads, Healthy breads, Kiddies Choice breads and Bread Sticks [Proposed menu for year 2011, Annexure ]

Location- Mumbai

In the next 6-8 months, considering that there will be a significant increase in production capacity, production will take place at a rented flat.

MARKETING PLAN Market research The market research was carried out on the basis of the following parameters: Taste Price Appearance Packaging Brand name Ingredients like fat, calories, etc Convenient as ready to eat Easy availability

* We also visited a few shops in the vicinity which sold bread from companies such as Wibbs, Brittania, Golden Bakery, and retail outlets such as American Express bakery, Oven Fresh, Dolci n Bread etc. to gauge the movement of breads in these bakeries. Eventually, we came up the sheet of expected sales on a daily basis.

Target Market Staff members as well as students

Trends in consumption There is a steady demand for bread on a daily basis as it is consumed as a substitute for chapatti, roti, etc. in many households. Regular varieties have a higher demand than the specialty varieties. Also, demand is greater between 8.00 am to 9.30 am [breakfast time] and 3.30 pm to 4.30pm [tea/snack time]

Competitive Analysis There is no other shop in the Western Suburbs selling such a wide range of breads under one roof. There is also a variety of breads especially for kids as well as the health freaks. Customers may not warm up to the idea of having a bread alone without any accompaniments. Introduction of more varieties of breads, even for sandwiches Competition from all other varieties of food offered in the college canteen such as dosa, Maggi noodles, grilled sandwich, puff pastries etc.

- Strengths

- Weakness

- Opportunities

- Threats

Promotional strategies

10% discount on products during the introduction month Introduction of a new variety of bread and phasing out one variety on a cyclic basis Advertising will be done in a phased manner over a period of 2 months. This will include advertising through distribution of flyers and placing banners in strategic locations within the college premises (near the 2 canteens)

Leftover products, if any, will be given to charitable institutions.

Competitive Edge - The main competitive edge is the pricing strategy, where are prices

are considerably less as compared to others selling similar products. The USP of the products will be quality as well as freshness.

OPERATIONS PLAN

Products

a) Focaccia

: It is a flat oven-baked Italian bread which may be topped with herbs, vegetables or other ingredients.

b) Chocolate Fantasy

: Sweet bun filled with melted chocolate

c) Cinnamon & Raisin Rush : Puffy bread with a rich filling of cinnamon, raisin and brown sugar

Manufacturing Location

Production and Baking: Mumbai

Out of their 9 commercial ovens, we will rent 2 ovens and will pay the price for

the same as well as some amount of top up.

Eg: Star Bakeries has 9 commercial ovens and earns Rs. 90 by utilizing them. On utilizing 2 of their ovens, we will cause them to suffer a loss of Rs. 20 Hence, we will pay a rent which includes Rs. 20 as well as Rs. 10 as an add-on cost.

Production Cycle- Production will take place on alternate days in the initial month and on daily basis as demand increases. Around 15-16 units of each variety of bread variety, namely Focaccia, Chocolate Fantasy and Cinnamon & Raisin Rush will be made. [Total=50]

Raw Material

Dairy Products Grocery Vegetables Dadar vegetable market (near Plaza)

A mini tempo will be hired to transport the raw material from the wholesellers in Dadar to the production site in Wadala (E)

Storage The manufacturing unit will also be used for storage of material Loss due to leftovers There will be an estimated 10 % loss due to leftovers in the initial 2 months = 10% of cost of production = 10 % of 6568.67 = approx. Rs 660 After 2 months, the loss will change proportionately.

FINANCIAL PLAN

Break-even Total sales per day Total sales per month

approx. Rs. 5,400 approx. Rs. 1,62,000

Break even period = Total Investment / Total sales month = 10,00,000 / 1,62,000 = 6.172

Thus, break even period is approx 7 months.

Reserves & Surplus Approx. Total investment- Actual Total investment =10,00,000-8,78,732.575 = approx. Rs. 1,21,270

This amount will be utilized in case of emergencies.

CONCLUSION The promise and delivery of freshly baked quality products at reasonable prices will surely ensure that our product is successful in the market.