Dawn Bread becomes environment

friendly entity
Keeping up with its splendid traditions as a responsible corporate citizen, the Dawn Bread
has introduced oxo-biodegradable packaging for the first time in Pakistan. The pioneering
initiative by the company has brought the company the distinction of being the first and the
only one offering its products in environment friendly oxo-biodegradable packaging.

“The new packaging is designed to control and shorten the life of normal plastic products
and packaging. The d2W technology converts ordinary plastic at the end of its useful life
into an environment-friendly material,” said an official of the company.

Currently, Pakistan faces critical environmental challenges and the polythene bags are one
of the major contributors to exacerbating this problem.

Polythene bags are also causing serious issues for human and animal health in the country.

Oxo-biodegradable plastics degrade in the presence of atmospheric oxygen, UV light, and

moisture. There are no toxic chemicals or toxic gases produced during the decomposition
process. The end by-products are biomass, carbon dioxide (CO2), and water (H2O). Oxo-
biodegradable plastic packaging is proven to be safe for long-term contact with any food
products.

The initiative taken by the Dawn Bread has also been commended by various environmental
activists and civil society organizations with the expectations for the other industrial and
business organizations of the country to follow.

It is also mentionable here that according to scientific estimates the plastic bags may take
centuries to decompose naturally. They present a threat to the environment not only
because they occupy landfills but also because of the emissions resulting from their
production. The bags are also known to be dangerous to animals which might ingest them
accidentally.

http://www.foodjournal.pk/2018/July-August%202018/PDF-July-August%202018/Dr-Noor-
Exclusive-on-BAKERY.pdf

CHALLANGES
To get maximum outcome from quota free regime, all out maxima efforts are needed to boost
bakery exports and heap up access to the international markets. In the context of boosting the
exports, the State Bank of Pakistan has introduced three facilities based schemes for the benefits
of exporters which are, Foreign Currency Export Financing Scheme (FCEFS),

Political Risk Guarantee Scheme (PRGS)

Export Guarantee Scheme (EGS).

The bank would provide 210 days credit facility to exporters for South America as compared to
120 days credit facility to other markets.
CONCLUSION

New knowledge acquired

 No doubt practical is the most precious knowledge. During this internship I learn how the
deals are accomplished in business sectors. I learn how to write a contract, agreements.
 I also learn how the operations are done in a production unit. I learn how much advance
units are used in blades manufacturing industry.
 I also learn that the marketing processes used in the company. Problems in marketing
processes and procedures.
 I also learn about the export procedures that are used in the company to carry the business
unit.
 Every business has its own terms and language to communicate. As soon as you are able
to understand these terms and language, you have an ample of confidence to work in any
business environment. I have tried t learn all the terms and language used in dealing. But
there is still much room to learn.
 Problem encountered
 I had some problems at the start of my internship until there is some confidence is built
between employees and me. But it was all good when I realize that the environment of
DAWN BREAD is very friendly. It gave me a lot of confidence to work as internee.
 In start, I had a problem in understanding the terms and language that is used in dealing.
These terms are purely local. So it took a lot of time to understand these terms.

TARGET OF BREAD

Market segmentation:
Market segmentation of bread and beyond is done on the basis of four market demographics which
include geographic segmentation, demographic segmentation, psychographic segmentation and
behavioral segmentation.As, we mentioned above that the target segment of bread and beyond is
upperclass of Lahore. The concept of bread and beyond was targeting the upper class because
upper class has 60 -65 % of total money of the country, so catering this niche yet profitable segment
was the target of bread and beyond.

Let’s define the above mentioned four market segmentationcriteria’s for bread and beyond:

1. Geographic segmentation:

Bread and beyond geographic segmentation is currently in Punjab province. And within Punjab
cities include Lahore, Islamabad, Rawalpindi and Faisalabad.

Lahore segmentation:

Bread and beyond outlets are segmented in geographic locations and areas that contains more
of people that belongs to upper class. Its outlets are located in following areas:

• HKB Departmental Store Y Block Market, DHA, Lahore

• Europa Store H Block Market, DHA, Lahore
• Gymkhana Shoppe The Mall, Lahore
• Swera Departmental Store Main Boulevard, Opposite Main Market, Shadman, Lahore.
• Upcoming outlets:
• PACE Shopping center Main Boulevard Gulberg Lahore.
• PACE Shopping center New Building, Model Town Link Road, Lahore
• Swera II Departmental Store Punjab Society near Wapda Town, Lahore.
• Gas station segmentation is also there and selection of TOTAL petrol and CNG pump
was done after a survey that resulted inthat mostly upper class fulfills their petrol and
CNG requirements from TOTAL pump. And TOTAL pump has also very sophisticated
tuck shop. Keeping the perishable nature of bakery items bread and beyond has just
introduced its sandwiches range of BBQ sandwich, chicken tikkasandwich, chicken
sandwich, chicken bran bread sandwich, and club sandwich along with few quantity of
their cookies and muffins estimated according to the daily demand of customers.

2. Demographic segmentation:
Variables defined for bread and beyond demographic segmentation are given as follows:

 Gender: includes both male and female and kids.

 Age: kids (5 to 14), male (20 to 65), female (20 to 55).
 Income (1 lac plus).
 Size of household(2 to 5) people including kids.
 Education:for male and female is graduate and masters, for teenagers it is O’ level and A-
level mostly.
 Occupation: business class, professional occupations.
 Location:currently in DHA, cantonment, shadman. Upcoming in model town,Gulberg and
wapda town.
 GDP:123 billion belongs to upper class.
 Annual growth rate of Lahore population:3.32%

3. Psychographic segmentation:
 Lifestyle: bread and beyond focused also on the life style patterns of its target market i.e.
upper class on the basis of how they spend their time, energy and money. E.g.
Time i.e. what activities they indulge in their leisure time. Bread and beyond consumers
have usually lavish life style. They are health conscious and fitness holic people. They have
joined gym and attend social parties etc.
 Brand personality of bread and beyond consumers is:Sophistication(upper class and
charming), competent and innovators (reliable, intelligent and successful),and achievers.

4. Behavioral segmentation:
 Bread and beyond consumersusually play decision roles that have very strong influencing
power. They are usually initiator and influencer as they belong to upper class i.e. niche
of bread and beyond.
 As the consumers of bread and beyond are upper class category people they have very fast
moving life style too so they prefer ready made products more so they usually buy bread
and beyond products when they usually go for work, getting lunch for their kids while
dropping them to school in the morning, or while driving back to home while picking kids
 from school or coming from their work, and they also buy during their snack products for
evening tea and also for guests serving.
 These consumers are road warriorsi.e. they can pay premium for quality and products that
match with their life style taste preferences.
 Their user statusis: heavy users.
 Their usage rateis: heavy to large.
 Their loyalty statusis: hard core sometimes but mostly split loyals. I.e. loyal to two or
three at same time. Where ever they get good quality products/ services they will go for it.
 Their attitude is mostly positive and enthusiastic.

FOR DISTRIBUTION PROCESS

producers retailers

bread and final end user

beyond outlet

Promotion:

 Newspaper insert in daily times newspaper.

 Ad in Sunday daily times
 Facebook fan page (contests are there to promote their products and involve consumers
and engage them either in conversation or contest, content marketing plays very important
role for bread and beyond Facebook fan page).
 Hoarding.
 Public relation events are there while inauguration of theirnew outlets or any new product
range which involves media, daily times coverage.

Advertisement is mostly done whole year but in few months they are advertised regularly four
weeks in a month they advertise in interval i.e. if they are advertising in January all month then
next month they will advertise once only and so on for whole year. Excluding muharam month
they don’t advertise in this month.

Promotion expenses:

 For Sunday daily time the cost of each ad is Rs. 25,000, and Rs. 3000 for the design they
get from their ad designers which they outsource from outside agency which makes e. Size
of ad in Sunday daily times covers the whole page of A4 size. Expense of ad around RS.28,
000i.e. For11 inch length and 7 inch width. Daily time’s policy is that you have to pay for
whole page and not certain space on it.
 For certain space they advertise in newspaper i.e. daily times in form of newspaper inserts.
That costs them Rs.15, 000 for 5 inch length and 6.5 inch width.
 Total budget for bread and beyond social media promotional activities is RS.100, 000.
 They invest maximum in social media. I.e. Facebook.

Social responsibility by bread and beyond:

• They are involved in social responsibility by giving funds to different dumb and deaf
institutes.

Online distribution for both target segments:

• Through website they can select the meal packages and also other products other than
combo meals package anorder online and delivery would be free only for the area in which
the outlet exists. These areas include DHA, Model town, and main market.
• Using the social media toolkit which includes Facebook, twitter, where they are connected
to the fan pages and they have made a special option for placing orders by connection
directly from their Facebook and twitter profiles to their website where consumers can
order and they will be giving option of paying through credit card or direct payment, order
is selected and delivered within 45 minutes.
• Call on their numbers and get the order delivered.

Promotion:

• Social media (Facebook)

• Hangers placed on the electric polls on the small green belt within the middle of the road.
These bannerswill be used in DHA Y block market road, main market round because these
are the most populous areas where maximum number of upper class visits for their
shopping purposes, these banners will be used 1 km before that reaches the traffic signal
poll of above defined areas. Each banner would be of 30 inch width and 40 inch length and
as we are using two areasinitially and for each area 1 km and in 1 km 10 hangers will be
used and for 2 area’s we need 20 bannerthat will cost Rs. 2000 Per banner. Total cost
becomes Rs.40, 000. Butbread and beyond will outsource same agency it uses for its ad
design in Sunday daily times.

And RS. 8,000 for each area that makes rs.16, 000. Total cost Rs.46, 000.

• Retail store (al- fatah, HKb, floor posters ads). The space taken on the floor would
be90*135 cm. that will cost Rs.8, 000 for each floor ad. Total is Rs.16, 000.Agency would
remain same for this as well.
• Live models (letting consumers taste and know their live feedback). Stalls will be own
property of bread and beyond.
• Cricket ground advertisement whenever some tournament will take place in Lahore and on
both local and international level,for qaddafi stadium the cost of board will be Rs. 2500
and for local ground opposite qaddafi stadium is Rs. 1500 perboard.
• Morning shows i.e.promoting. Breadand beyond sandwiches and meal packages and kids
packages , uthojago Pakistan on geo TV, the sandwiches , muffins, cookies, pastries and
pound cakes will be introduced which will cost on per unit cost of each item introduced or
used in it plus the fee of TVchannelpromoting bread and beyond. Cost will get to Rs.
50,000 for 1 day including the products that are used, banners for promotions.
• Cinema curtain flowing with bread and beyond sandwiches and meal and kids packages
promotion only in DHA cinema that will cost around Rs.1000 per frequency and frequency
would be according to shows in 1 day in that cinema which is 3 shows in 1 day means 3
exposure and 3 frequencies. This makes total cost of Rs. 3000.
• Local buses advertisement i.e. posters on buses that routes to model town only will cost
Rs. 4500 for only 90*135cm space on the bus initially only 1 bus will be used .
• Mobile instant messages containing new offers to existing consumers.
• Physical marketing i.e. Parks bench shaped into a sandwich and Hyper star, metro , makro
elevators with bread and beyond ads will be used in DHA y block park. Only two benches
that are located in the most populous side of the track of the park will be shaped according
to bread and beyond logo that costs Rs. 5000.
• Putting website on notepads, pens, newsletters, bumper stickers, coffee cups being used in
bread and beyond outlets and retailers and total cng pump and distributing them to target
segment of consumers. That will be bread and beyond own property.

Total budget for promotion for this variant isRS. 127,000.

2. Second variant of bread and beyond sandwich:

Our second paradigm shift will take place in the form of a variant of distribution. According
to this variant we will be offering the variation through a distribution channel of mobile
van named “eat fresh”. Eat fresh Van will provide our most purchased product to the
university/college students of A+ with in the university/college premises. Here we can also
provide our customers with our first variant of combo meal packages including sandwich
of their choice, a sweet baked item and a coffee or tea. The colleges/university might
include Aitcheson College, FC College, Kinnaird College, Lums, NCA FAST NU and
GCU. Eat Fresh sales comprise the process of selling the goods from distributor to
customers through van. This mode of distribution will makes our product within the range
of our selective target A+ customer as it eliminates all the distribution layers between the
producer and the buyer.
Description Cost
Vans Rs 600,000-700,000 per van
Glass Refrigerator with capacity of 50 cakes of 1pound Rs. 270,000-300,000
Fuel Charges Diesel: 107 per litre
Petrol: 103.36 per litre
Monthly Service Providing Staff 10,000 per person

Product Mix:
 Our product mix would consist of our most purchased products like pound cakes, pastries,
pizzas, patties, rolls, brownies and cookies. Here we will offer the medium sized combo
packages instead of offering large sized combo packages at relatively lower price than the
large size. The size of the above stated individual items would also be relatively smaller
than the normal large sized items at a lower price range. This would give our customers a
perception of lower price as our customers in this case are students who are somewhat price
sensitive and also this strategy would give them a room and craving to buy more due to its
size. The Eat Fresh Vans would also have the glass refrigerators for maintaining the
freshness of the bakery items offered.

Price:
The pricing mix for this variant will change as we are following the direct Sales distribution
model which increases the availability factor to the customer and would also address the
freshness and hygienic factor ultimately increase the customer reference pricing for the
products. So would charge a higher price to the medium sized meals as compared retailers.
Here all the costs from the Van services will be covered by the profit margins of reference
pricing.

Pricing mix of items in B&B Bakery Pricing Mix of items using Eat Fresh Vans
• Medium Chicken tikka Rs. 125 Medium Chicken Rs. 135
• Medium Plain Muffin/ pastry/cookie/pound cake Rs.40 Medium Plain Muffin/
pastry/cookie/pound cake Rs. 45
• Coffee/ Tea Rs. 30 Coffee /Tea Rs. 35
Total 200
Total 215

Distribution:

The distribution technique used in this variant of Eat Fresh Vans is called direct sales distribution
model according to which all the intermediaries in the conventional distribution of the consumer
goods are eliminated giving an extra control to the company over the product. But it is the most
costly one because it requires large number of direct distribution tools like vans. Since our vans
can be used as both the distributional tool as well as a promotional tool so we would have a margin
to save our costs on these lines. Using this type of distribution we are basically exclusively
targeting our selective customer i-e the A+ and upper middle class within the described boundaries
of universities and college. we have used Eat Fresh Vans as our distributional tools because:
• Gets target customer’s attention.
• Helps the customer to see the value of the product or service.
• Makes the customer feel comfortable that the seller can be trusted and the product is easily
available.
• Ensures that the customer has a way to receive the goods or services.
Fig: Conventional Distribution Channels

Fig: Direct Sales Distribution Model

Promotion:

The promotional tool in this case would be the Van itself as it would only be in the college premises
continuously roaming around at specific hours. The Eat Fresh Vans would be decorated with the
bran brown color of bread and beyond emblem with the pictures of pastries, sandwiches and cakes
on it. Here positive word of mouth would also come into play as it is a unique, fresh and easily
available service so the demand of customers would increase drastically as compared to the
competitors. Putting website on notepads, pens, newsletters, bumper stickers, coffee cups being
used in the Eat Fresh Vans and distributing them to target segment of consumers. Mobile instant
messages containing new offers to existing consumers can also be used here.

3. Third variant of bread and beyond sandwich :

Our second paradigm shift will take place by keeping our focus on promotion. According to
detail analysis we came to know that brand awareness of Bread & Beyond is not sufficient in
target market. Plenty of our target market is still unaware about our brand especially upper
middle class due to lack of promotional activities. Currently company is only using one of the
variables from promotional mix i.e. advertising and in Advertising they are currently using only
news paper insert and an ad in Sunday magazine of Daily times. They have also created a
facebook page for promotion with the help of creating a small contest in which users are asked to
attract their friends towards the page and like it. However I think so they are lacking behind in
their promotional activities from their customers
PRICING STRATEGY

Price:

The pricing strategy of Bready and beyond is simple cost plus profit. The target profit for each
product is 20%. Hence the price formula for each product is

Price = cost +20% profit

DISTRIBUTION PROCESS
 Manufcaturing

Own
Outlets Retailers

Promotion:

Promotion has been defined as the coordination of all seller initiated efforts to set up channels of
information and persuasion in order to sell goods and services or promote an idea. Because our
focus of bringing paradigm shift is on promotion so we have designed our promotional campaign
very carefully. I have selected following promotional tool to design my promotional campaign

 Advertising
 Public Relations
 Sales Promotion

Advertising

Advertising is the best-known and most widely discussed form of promotion, probably because of
its pervasiveness.

For advertising I m going to used following medium

 Newspaper
 Local Cable TV ads
 Hangers
 Skins
Newspaper

For news paper advertising I have selected Daily Jang, Daily Times on fortnightly basis. The add
will be focusing on fresh and hygienic aspects of the sandwich.

The detail is given as under: -

Rate of
front
Sr. Name of No. of ads Size of Page Amount Charged
No. Newspapers /month Advertisement ad/day Monthly

Quarter Page
Dawn 2 14,040 28,080
1 (Front Page)

2 Daily Jang 2 7 cm x 1 col 3500 7000/-

Total= 35080/-

Local Cable Tv ad

Name of Timing Days to run Frequency Total Cost in

Cable TV campaign

World 8:00 Pm to After every 15

15 80,000/-
Call 11: 00 PM Min

Wateen 8:00 Pm to After every 20

15 50,000/-
11: 00 PM min

Prime 8:00 Pm to After every 15

15 65,000/-
11: 00 PM min

TOTAL 195,000/-

Hangers
Hangers will be placed on pools on the road for the distance of 50 meter. The size of the hanger
will be 5’x3’. For placing hangers on the roads in Model Town, Main market and DHA we will
first take permission from Director Public Relation of these areas mentioning the duration and
areas where we will place our hangers. The cost of each hanger Rs. 2000/-. We will be required
20 hangers to cover 1 km of distance. So the total cost for hangers will be 40,000/-. While for
placing hangers we will have to pay Director public relation 20,000/- for grant of permission as
fee for each three areas.

Skins

Skins containing the message of hygienic and fresh products will be placed in retail shops. The
skin will contain the message of fresh and healthy diet and the calories for sandwiches will be
mentioned on it. Initially we have planned to place the skins for 15 big retailers. The cost for each
skin will be Rs 4000/- which will include the cost of the stand. So the total cost for skins will be
Rs.60,000/-

Public Relation

A public relation is defined as “the management function which evaluates public attitudes,
identifies the policies and procedures of an individual or organization with the public interest, and
executes a program of action to earn public understanding and acceptance.”

For this promotional mix I have selected special publication of Bread & Beyond which contains
the healthy diet plan for the customers. It also contains the information about the products of bread
and beyond and calories will be mentioned for each of the product.

Sales Promotion

The next variable in the promotional mix is sales promotion, which is generally defined as those
marketing activities that provide extra value or incentives to the sales force, the distributors, or the
ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken into
two major categories: consumer-oriented and trade-oriented activities and I have included both of
them for boosting the sales of sandwiches

Consumer-Oriented Sales Promotion

This is the sales promotion activity for consumer of the product. In this activity Cold drink like
Coca Cola is integrated with the product if consumer will make 3 purchases or more they will be
offered disposable Coca Cola (220 ml) for each three units of the product.

Trade-Oriented Sales Promotion

This is the promotional activity for medium and small level retailers. They will be given sales
targets on monthly basis and if a retailer will be able to meet its target they will be offered 10%
discount for next supply of sandwiches which will be added in their profits