REPORT

ON

THE STUDY OF FRANCHISE OUTLET OF MIO AMORE

Prepared for:

PROFESSOR JOYDEEP BISWAS

Assistant Professor

Submitted by,

Group 10

Biswaranjan Swain(16202018)
Harshita Agarwal(16202023)
Anamika Prasad(16202219)
Neha Gupta(16202247)
Jagannath Raj Agarwal(16202094)
 ACKNOWLEDGEMENT

We would like to sincerely acknowledge the contribution of all those people who have, directly
or indirectly, been instrumental in helping us complete this project. We take this opportunity to
thank them and all our well-wishers for their relentless encouragement and wholehearted
support.
We would like to place on record our profound indebtedness to Mr. Pradeep Behera of Mio
Amore, Patia franchise, Bhubaneswar for providing us with the valuable information and
knowledge.
We would also like to extend our special thanks to Professor Joydeep Biswas , KSOM,
Bhubaneswar for his constant cooperation and help at every step.
 INTRODUCTION

Type Private company

Industry Bakery, Food Processing

Founded 1958

Headquarters Mumbai, Maharashtra, India

Area served India & Egypt

Zoher H Khorakiwala (Chairman),

Key people Idris H Khorakiwala (Managing
Director)

Products Cakes, Breads, Burgers, Savories

OBJECTIVE:
This project aims at understanding the overall Mio Amore cake manufacturer in
Bhubaneshwar ,Different product categories in the market,various factors affecting the growth
and success of Mio Amore cake ,the challenges and opportunities which the market offers and
the changing trends in the Mio Amore -cake.
Monginis is an Indian pastry and bakery chain based in Mumbai with outlets in different cities in
India and Egypt. In the Brand Trust Report 2012, Monginis was ranked 605th among India's
most trusted brands and subsequently, according to the Brand Trust Report 2013, Monginis was
ranked 541st among India's most trusted brands. In 2014 however, Monginis was ranked 256th
among India's most trusted brands according to the Brand Trust Report 2014, a study conducted
by Trust Research Advisory, a brand analytics company.

History

Early in the 20th century, two Italian brothers ran a catering service in Mumbai's Fort precinct,
which was popular with the city's European residents. In 1958, Monginis catering was taken over
by the Khorakiwala family, and became Monginis Foods Limited. In 1971, the company adopted
the franchise model of business, with a stated emphasis on localized production for local tastes.
It also models itself on the "food boutique"concept, focusing on quality, presentation and service.
It has thereby expanded its brand and reach across the country with a total worth of about 950
million rupees by 2012.

IDEAS AND INNOVATIONS:

Ideas and innovations make it possible for the high-level excitement to be sustained in the brand.
Pioneers of a fantastic Cross delivery System which connects 11 manufacturing Franchisees
through an intricate network to simplify the means so that your beloveds can get a cake delivered
in any part of India ordered from anywhere in the world.
A helpline 078944 64527 attending to customers to assist to make any Celebration possible
even at a short notice.
An Interactive website which allows online bookings of our products from all across the world
to be delivered in parts of India, where we have a presence.
Pioneers in the introducing corporate cakes with Company Structures, logos and Products too.

PRODUCTS:

Mio Amore sells ready-made as well as order-made cakes for catering or carry-out. Individual
cake slices are also kept in Mio Amore stores for dine-in customers. The chain sells both Indian
and Westernsavouries, including samosas, puffs, cutlets and doughnuts. Apart from these, snack
foods and breads are also sold at Mio Amore shops. Mio Amore has a product line for diabetics,
and offers themed products during festivals. The Egyptian brand has called itself Mio Amore
bakery producing chocolates, cakes, pastries and oriental sweets. Fast food snacks include more
than 50 items. Mio Amore also produces more than 30 different gateaux.

AVAILABILITY:

Mio Amore also provides accessorized carry-out catering, with telephone and internet ordering
options. It counts 558 exclusive franchises in total and at least one production center each, in 38
cities. Besides Bhubaneshwar the company is present in Ahmedabad, Aurangabad, Bangalore,
Bhubaneswar, Bhiwandi, Chennai, Coimbatore, Cuttack, Delhi, Goa, Hyderabad, Indore, Kochi,
Kolkata, Nashik, Pune, Palanpur, Rajkot, Secunderabad, Surat, Mumbai and Vadodara. It is also
present in Alexandria, Cairo and Mansoura in Egypt.

MONGINIS TO MIO AMORE

 The 26-year old arrangement with

arrangement with Mumbai-based Khorakiwala family came to an end in 2015.

After undergoing a major re-branding exercise, since it stopped using the Monginis brand owned
by the Mumbai-based Khorakiwala family, Switz Foods Pvt. Ltd. (SFPL) is now exploring
opportunities for scaling up operations while charting new areas. The brand-makeover is being
seen as one of the most dramatic such exercises in recent times, and may become the case study
for a major management institute.

The city-based company with a group turnover of around Rs.400 crore (unaudited) in 2014-15
manufactures cakes and cookies.

While it retailed the cakes under the Monginis brand, it also sold packaged cupcakes and
cookies. It has a daily capacity of 150 tonnes for the group and 10 tonnes for SFPL. It employs
6,000 people of which 3,000 are in direct employment.

However, the 26-year-old arrangement with a certain section of the Khorakiwala family to
manufacture and market cakes under the Mongini brand in West Bengal, Odisha, Bihar and
North East came to an end from May 1, 2015 through an out-of-court settlement.

The discord was mainly over the business plan being followed by Switz Foods Pvt Ltd., which
had begun pushing its own brand Winkys (packaged cakes) and started contract manufacturing
for companies such as Britannia and ITC.
While the equity holding arrangement with an another member of the Khorakiwala family
continues, the brand-sharing pact pertaining to Monginis came to an end from May 1, 2015,
SFPL Director Arnab Basu said in an exclusive interview sitting atop his oldest unit at the Kasba
Industrial Estate. Closeby is a franchisee-owned retail outlet whose daily sales is Rs.32,000.

Just as SFPL stopped using the Monginis brand, the Khorakiwalas will also not market their
products for three years from May 2015 in West Bengal and the North East as part of the
resolution arrived at through mediation.

Following this settlement, Monginis, which had become a household-name in cakes and pastries
in the state and Odisha, vanished from shop shelves of the 210 stores. The franchises emerged in
a new avatar Mio Amore with a new brand logo and new colour scheme. The stores too donned a
new look.

The exercise cost us under Rs.1 crore but it was dramatic, admitted Mr. Basu. To the
customers, however, it made little difference as they kept flocking in. It was learnt that this entire
exercise may become the topic of a case study by a major management institute.

If he is a trifle sad that his association with some members of the Khorakiwala family, who had
held his hands in his entrepreneurship foray, has ended, Mr. Arnab Basu does not show it. He
remains stoic even as he charts a new growth plans like refrigerating the delivery vans and
entering new areas such as non-aerated fruit based drinks. We are also developing a heritage
food brand Jalajog which we acquired earlier, he said.

WHAT DID MIO AMORE STORE ANSWER TO OUR PRIMARY QUERIES ?

 Do you serve fresh products everyday?
Yes, all Mio Amore cake shops, in all cities, offer only soft and fresh products delivered
daily.

Q. Footfalls per day?

The approximate footfalls per day are 150.

Q. What do you do with unsold products?

Following strict protocols Mio Amore cake shops returns unsold Cakes, Pastries,
Savouries and Snacks on a daily basis to the bakery. Depending on the state of
deterioration, if still edible, the Cakes, Pastries, Savouries and Snacks are given to charity
or used as cattle feed. If products are stale, the entire lot is destroyed.

Q. What is the shelf life of Cakes and Pastries?

Fresh Cream Cakes and Pastries 2 days if refrigerated.
Butter Cream Cakes and Pastries 2 to 3 days.

Q. How many exclusive Mio Amore cake shops are there in India?
There are more than 500 Mio Amore cakes shops in 12 cities of India. The same can be
viewed in their Store Locator section.

Q. How many exclusive Mio Amore cake shops are there in Bhubaneshwar?
There are 13 Mio Amore cake shops in Bhubaneshwar.

WHAT DID MIO AMORE ANSWER TO OUR PRIMARY QUERIES ?

 Q. How many manufacturing units do you have in India ?
Mio Amore cake manafacturing factory is located in each of the 14 cities.

Q. How does the Gift a Cake online concept work?

All you need to do is log on to www.mioamore.net From there, you can browse their shop
by occasion, and different categories given in the main page. So you click your choice of
product, purchase it for your loved ones, and Mio Amore will gift your surprise to your
loved ones. This is the theme of Gift a Cake online with Mio Amore.

Q. What are the various payment options?

1. Credit Cards (Visa / Mastercard / American Express)
2. Debit Cards.
3. Net Banking. (Only for Indian banks)

Q. What is the Lead Time to execute cake deliveries?

We require atleast 72 working hours to bake a fresh cake and deliver it to your loved ones
with a personalised message on our exclusive Mio Amore Gift Card.

Q. Is the Payment Gateway on the Mio Amore Website Secure?

The Payment Gateway for www.mioamore.net complies with the Standard Industry Level
Security & are Verified by the following Security Providers:

WHO ARE THE COMPETITION

Local bakeries
Gourmet eateries
Sweet marts with better product varieties
Specialized French/German bakeries
Online bakeries (Storefronts operating solely through their websites/facebook page)

PRICE VARIATIONS

Mio Amore products are decently priced compared to their gourmet competitors
There are far more expensive bakeries compared to Mio Amore and surprisingly they are
doing very well
The buying nature of the consumer is to be accounted for here which is changing from
time to time.
 In todays day and age, a mid 20s-30s individual prefers a good quality pastry/baked
product and is ready to shell those extra bucks.

INVESTMENT ON RIGHT BRANDING OF PRODUCT

SOCIAL MEDIA

The best way to brand a product with a least cost brand marketing is done through Social
networking sites like Facebook , Twitter, etc. which it does, by posting pictures of their new
products and offers on certain occasion.

Secondly, using the Media Conversations like Whatsapp, Line, Application Ads, You Tube
Rollovers etc.
 PRINT MEDIA

The media branding comes up second best in terms of cost, with the higher amount of investment
with respect to the size of fork of branding styles used.

Daily food magazines, News Paper Ads considering the column cost, Banners, Pamplets etc can
be effective to introduce the re-designed products.

LOUD BRANDING

The stand alone hoardings, tie ups with the Transportation vehicle hoardings, Television
advertisements etc comes up with the most effective, but pocket leasing branding, against the
guaranteed change in the results.

MOUTH TO MOUTH BRANDING

Till date, the most sound branding is done with the word of mouth.

REQUIREMENTS FOR STARTING MIO AMORE FRANCHISE:

Cost, royalty fees & profit or return of investment

On an average the overall cost of starting a Mio Amore franchise is about 10 lakhs, but the brand
is very much particular on selecting people with pure dedication. Charges for starting a franchise
of Mio Amore cake and bakery is one time security of Rs 1 lakh which is to be paid initially but
this charge is refundable without interest. Other charges one has to pay is franchisee fee of Rs
25,000, architect's fee of Rs 25,000 total being 50000 Rs. for one time. Other costs include
making of interior, counter, computer, AC etc. As far as royalty-fees for Mio Amore franchise is
concerned, it is consolidated amount of Rs 6 to 8 lakhs. Mio Amore franchise area requirements
are about 250 sq. ft. As far as profit is concerned the break even period as mentioned by Virendra
Ghole, Marketing Head of Mio Amore India, it is less than two years, so if you run a shop of Mio
Amore for two years you cover up all your investment and start running in profit.

Where to start Mio amore franchise in India?

Since, bakery and cakes are in demand at almost every town and cities so starting Mio Amore
bakery is profitable at any place if location is in a busy and accessible place. Since Mio Amore
products are cakes, pastries, gateaux, snacks and breads so if the shop is located in reachable
place, it will be always full with satisfied customers and both customer and franchise owner will
have a smiling face.

Submit Mio Amore franchise application form online:

If one is interested for franchise of Mio Amore, one can fill the form online at
http://www.mioamore.net/cakeshop-retail-franchisee.php and submit all details asked. The
concern person will contact if they find one eligible.
This is the Mio Amore located in Jayadev Vihar, Bhubaneswar. It was established in the year
2005 by
It took 2 months after all official works from franchise to open the outlet. There was a license
issued for opening this private outlet from the BMC (Bhubaneswar Municipal Corporation).
OUTLETS WHICH ATTRACT CUSTOMERS
TERMS and CONDITIONDS :-

For getting a Franchise of Mio Amore parameters required are:-

Location Security, Population should be OK (student base is targeted), outlets should near
main road.

Franchise cost- 10 lakhs & investments 10 lakhs with a working capital Rs.15000/-

Outlet size: 15 ft wide,20 ft length

Design of the outlets, lighting, display of snacks and cakes decided by the company.

Competitors are Paris Bakery, Cookies, Bake Shop. But these have put their products in
high price range but

Target : 14-15 thousands rupees , with a margin profit of 13.5% on suppose Rs 100/- that is
given to the company.

Pricing : Decided by the company as per the location, for Bhubaneswar outlets and Cuttack
outlets the pricing is same .

Like wise in Angul ,Dhenkanal etc the price of the snack , cakes and other bakery item have
increase prices due to the transportation cost form the supplier to the outlet i.e. Mancheswar to
Angul (transportation cost).

Every 6 months the pricing is revised and the main note to these pricing is made according to the
ease of purchase of the consumers.

Keeping a room for the stock .

Keeping tie-ups with Pepsi Co products for extra utility of the consumers with snacks.

Counters of the Cakes are kept first then the Snacks counter for both Veg & Non-Veg separately.

Pastries are in general kept in lower rack of the snack counter so that there is a easy reach to the
customers children and easily eye catching to the kids.

Same taste and satisfactions is found in all its outlets.

Sample of Daily Order Cum Price List:-
Challenges &opportunities:-

Special order timing

Goods return

Vacations are mostly risk because the rate of consumptions of snacks and cakes decreases.

Students are the main target.

Counter order:- (NO OF DAYS THE PRODUCT CAN BE KEPT IN STOCK)

Cakes- 3 days

Pastry- 2 days

Snacks- 16 hrs

-Timing of the order for counter 8:30 p.m.

BASIS OF IMPLEMENTATIONS BY MIO AMORE:-

-Change in the ambience

-Audit done by the headquarters people

-Sales & promotional activities

-Distributing UBER free ride coupons

-Bill Counter implementations

 CONCLUSION

This report has enabled us to know about the way a franchise operates. It was an interesting job
of going to the franchise and collecting information. It enriched our knowledge and learning.
This franchise of Mio Amore was earlier named as Monginis. The study of this franchise helped
us to gain knowledge on how a franchise functions and what are the requisitions for its ideal
functioning. All in all it was a great experience and learning.