AMITY UNIVERSITY

AMITY BUISNESS SCHOOL

Marketing Management
(MKTG 602)

ASSIGNMENT
ON
REGIONAL BRAND - KITTY

SUBMITTED TO: - SUBMITTED BY:-

DR. RUCHIKA NAYYAR AADIL KAKAR

A0101919209

TABLE OF CONTENTS
1
 SR. PAGE
NO. PARTICULARS NO.

1. ABOUT BREAD INDUSTRY 3

2. ABOUT KITTY 5

3. DISTRIBUTION NETWORK 6

4. ABOUT FOUNDER 7

5. JOURNEY 8

6. SUPPLY CHAIN AT KITTY 10

7. MARKETING AT KITTY & COMPETITIVE ANALYSIS 12

8. CONCLUSION 14

ABOUT BREAD INDUSTRY

2
The total bread industry in India is pegged at Rs 4,500 crore and the industry is witnessing a
growth of 10% year-on-year. Out of this, northern markets such as J&K, Haryana, Punjab,
Chandigarh, Himachal, Uttarakhand, UP, Rajasthan and Delhi contribute 25-30% of the total sales.

The share of organised sector is around Rs 3,500 crore whereas the remaining market is served by
unorganised sector such as small-scale and artisanal units, including food service units that bake
and sell their own food.

Bread is the cheapest and basic instant food available for consumption. Though bread is not a
staple food in the country, its consumption has increased over the years. In India it is still a
secondary staple food when compared to chapatti, puri or rice.

Bread is generally a highly perishable item, which has a shelf life of maximum of 72 hrs in a
tropical country like India. The government has made it mandatory to stamp the date and time of
manufacture and the date and time of expiry on the packet. Therefore, once the bread is baked and
packed, any baker will make it a point that it reaches the market at the earliest.

India is the world’s second largest producer of food next to China, and has the potential of being
the biggest with its food and agricultural sector.

The Indian bakery industry is one of the biggest sections in the country’s processed food industry.
Bakery products, which include bread and biscuits, form the major baked foods accounting for
over 82 per cent of the total bakery products produced in the country.

It enjoys a comparative advantage in manufacturing, with an abundant supply of primary

ingredients required by the industry, and is the third-largest biscuit manufacturing country (after
the United States and China).

Increasing disposable incomes, changing lifestyles and preferences, growth in organized retail and
increasing consumption of packaged food are the main drivers of the industry.

PER CAPITA CONSUMPTION

3
The per capita consumption of bread in India is only around 1.5 kg to 1.75 kg in various zones.
The consumption pattern in four zones is-
 Northern States: 27%
 Southern States: 32%
 Western States: 23%
 Eastern States: 18 %

BREAD INDUSTRY HAS SEEN RAPID CHANGES OVER THE

LAST DECADE

Late 1990’s

 Government of India had reserved bread industry for Small Scale Industries (SSI) status
 Wax-coated paper was the most preferred packaging material as it had the capacity to
absorb extra oil. But the wax packaging tended to open up in humid conditions, resulting in
the product getting infected.

2000-2010

 Between 2000 and 2010, the bread industry saw a huge shift from manual production to
automated production.
 Early 2000 was the turning point for the bakery products market because of an increase in
urbanization, changing food habits and the availability of reasonably priced ready to-eat
products.
 The industry started using polythene for packaging as it offered a safe and fully sealed
product. The producers could create aesthetic packages with transparent packaging.

Current Situation

 Growing concern over health and having the ability to choose healthy foods is leading to
innovations in bread products.
 With the fast food culture catching on, the demand for bread products has accelerated.
 Companies are entering the market with concepts such as live bakery-cum-cafés to cater to
today's youth who are looking for a nice ambience and access to wifi, where they can relax
and try new products. Global bakery chains like BreadTalk and Cinnabon bakery have
started bakery cafes.

EVOLUTION OF BRAND

4
ABOUT KITTY

KITTY is one of the largest manufacturers of bread & bakery products in Punjab. It was
establishment in 1977 as Kitty Food Products and kitty Industries Pvt. Ltd. was incorporated in
1998. The business expanded and the fully automated plant was set up in 2004.

The registered office and works of the unit is situated at NH-95 near Kohara, Chandigarh road,
Ludhiana. The unit is a 9001:2008, 14000:2004 & 22000:2005 certified company.

KITTY is selling its products in northern India covering states of Punjab, Himachal Pradesh,
Jammu & Kashmir, Chandigarh, Western U.P, Haryana, Rajasthan & Uttaranchal. All the products
are made in the state of the art environment friendly automatic plants in hygienic conditions.

MANUFACTURING UNIT

The manufacturing unit is established on an area measuring 8.75 acres approx. on Chandigarh
road, Ludhiana, the company has adequate building area of 2.5 lacs sq. feet. The infrastructure
facilities i.e. Building, transport, power, water and other facilities are in place to cater to the
existing as well as future requirements of the unit.

RANGE OF PRODUCTS

When KITTY started its business with a single product i.e., White Bread & now they manufactures
all types of Breads like White, Brown, Whole Wheat & Fruit in various sizes. They also
manufacture all type of Bakery items like Pizza Base, Fruit Buns, Bar Cakes & Muffins, Burger
Buns, Rusks, Pav Buns & Toast, Eggless Biscuits, Eggless Cakes, Bread Crumbs & coatings, &
many types of Traditional sweets in different Sizes & Packaging.

LAB

All purchased ingredients must conform to the laid down specifications and standards. The lab
scrupulously checks all the raw materials on arrival to ensure that they conform to Kitty Quality
standards. The Lab is equipped to check the physical, chemical, functional and Microbiological
parameters. All finished goods pass through routine quality checks while in process as well as
before the final clearance.

DISTRIBUTION NETWORK

5
The products of the company are well established in the market in terms of their quality, price and
service and command brand equity in the market.
The marketing network is spread in the states of Punjab, Chandigarh (U.T.), Haryana, Himachal
Pradesh, Uttaranchal, Western U.P., Rajasthan and Jammu & Kashmir.
The products are distributed in these states through a chain of approx. 1050 distributors.
The company has adequate infrastructure including its own fleet of 162 vehicles, company's own
workshop to have smooth operations, covering 14000 Km per day to ensure timely, fresh supply of
bread and other products at the door step of the customers.

Fig. 1

CAPABILITIES

Product Development / R&D Our R & D Lab is managed by qualified & experienced Food
Technologist Our Lab has earned the appreciation of our customers, for developing new products
on request right from the scratch, in the shortest possible turnaround time

ABOUT FOUNDER

6
Sh. Ramesh Mago is founder and managing director of 'Kitty'. He has exposure of 38 years in
bread and bakery manufacturing. He looks after the overall operations of the company. Kitty
industries was set up in 1977 when Sh. Ramesh Mago quit his job with a bank to follow his
passion for bakery.

In 2018, Sh. Ramesh Mago, founder and managing director, Kitty Bread, Ludhiana, was
unanimously elected as president of the AIBMA for the 10th time in a row.

The All India Bread Manufacturer’s Association (AIBMA) is an apex organization, which has been
looking after interests of diverse bread industry throughout the country since 1978. Its membership
comprises bread-manufacturing units in large and small-scale sectors from all over India.

Sh. Ramesh Mago (FOUNDER)

JOURNEY
7
Kitty started as a small local manufactures of bread in Ludhiana, Punjab. It was started by
Sh. Ramesh Mago, who left his bank job to start this business of manufacturing bread in 1977. In
the beginning, they used to sell only a single type of bread i.e., White Bread & were had their
presence in just Ludhiana, Punjab. But now, they sell a wide range of products & have their
presence in most parts of North India & enjoy a major share in the market. As the business
expanded over the years, fully automated plant of Kitty was set up in the year 2004.

Kitty has won national awards for quality products & Entrepreneurship for 2003 & 2008 from the
Ministry of Micro, Small & Medium Enterprises Govt. Of India.

Kitty Industries Private Limited has made a name for itself in the list of top suppliers of Cookies &
Biscuits, Confectionery & Bakery Products in North India.

Kitty Industries Private Limited is listed in Trade India's list of verified sellers offering supreme
quality of Delicious Eggless Biscuits, Delicious Eggless Cookies, Biscuits etc.

Kitty is now a major player in market and is giving competition to many national brands as well.
Kitty enjoys major share of bread market in Punjab and also nationwide.

HURDLES FACED

There are many challenges faced by Kitty during their journey but the most recent crisis that they
faced was during 2016. During 2016, there was a huge sales dip in the market following reports of
a cancer-causing food additive present in bread.

Kitty Industries were using potassium bromate within the prescribed limit of 50 parts per million
(ppm). However, after the scare, they have completely removed it from our bread. The chemical
was only used as a flour improver. To substitute it, they have increased the quantity of ascorbic
acid and certain enzymes. It was a difficult time for bread industry in India.

8
CHALLENGES FACED BY KITTY

1. Government regulations- Like restaurants, bakeries have to get permits & licenses from
FSSAI and has to abide by the standards prescribed by the same, failure to do the same
may lead to shutting down of the bakery’s operations.

2. Competition from the market- Many players are present in the market offering almost
similar products. This makes it difficult to maintain a loyal customer base.

3. Inflation- Rising prices of major ingredient like flour (maida), the main ingredient in
majority of the preparations, and other raw materials such as oils, butter, fat and eggs. This
leads to rise in the prices of products or reduction of profitability.

4. The price-sensitivity of the market- The market is really price sensitive and so
competitive prices are to be maintained in order to hold market share. Hike in prices over
industry standards may lead to movement of customers to competitors.

5. Debates around health issues- The main ingredient of all the bakery products is said to be
bad for the stomach and lead to weight gain and hence may drive people away from the
regular consumption. The introduction of other variants like whole wheat & multigrain
products is resolving this challenge.

9
 SUPPLY CHAIN IN KITTY

Fig. 2

The supply chain of Kitty can be divided into:

 Direct sales: This consists of direct distribution of products by manufacturers to organized

retail segments like supermarkets, departmental stores, etc. And sometimes directly to the
end consumers

 Indirect sales: This channel entails distribution of the product by manufacturer through
various middlemen like wholesalers, distributors to the front end sellers like retailers,
hotels, restaurants, etc.

As bread is a highly perishable item with a shelf life of only 2-3 days, it needs to be distributed
within 40 hours of manufacturing. Kitty has a strong distribution network including various
middlemen and suppliers to reach its customers.

INNOVATIONS OVER THE YEARS

10
With increased awareness about nutrition and health conscious consumers, the bread industry too
has undergone a change. Consumers in North India like their counterparts in metros are switching
to healthier versions of bread such as brown bread, wheat bread and multigrain bread. According to
manufacturers, share of brown bread has increased to 15-20% in North from around 5% a few
years ago.
As a result, the white bread segment is witnessing a slow growth of 10-12% whereas the brown
bread is growing anywhere between 25-30% annually.

Female workers are key players at Kitty’s manufacturing unit. A large number of women migrants
are employed who reach the factory at 8 am and work for packing and work at the various
machines in the plant. Their work basically involves shifting the stuff from one machine to another
and packaging.

There are many new trends that are emerging in the bread industry and market.
1. IMPROVED PACKAGING SOLUTIONS - Packaging of bakery products plays a
significant role in increasing shelf life, preventing mechanical damage, nutrition value,
displaying food safety related warnings and marketing. The industry has been
experimenting with packaging solutions of their products. The use of sealants for low
temperature seal initiation, outstanding hot-tack strength and minimizing the impact of
packaging on the environment has been marked as a tremendously innovative effort for the
preservation of baking products, Vertical pouches or sachets has also been experimented by
many bakers.

2. INNOVATION IN INGREDIENTS – Kitty Industries earlier used potassium bromate

within the prescribed limit of 50 parts per million (ppm). But after a huge scare, they’ve
removed this ingredient and have substituted this with a healthier alternate. This innovation
has helped them to keep its market share.

3. TECHNOLOGICAL ADVANCEMENTS - Going urbanization in the nation, rising

disposable incomes and increasing exposure to western foods has led to diversification of
bakery products. The rising demand for premium products like gourmet breads and
growing focus on healthy products has necessitated the diversification and up gradation of
technology n bakers. Apart from offering general equipment like planetary mixers, combi
ovens, flour sifter, rack ovens, cookies machines among some, the bakery equipment
manufacturers are coming up with advanced machines like complete range of donut baking
machine, pizza rollers, sheeters and even photo printing machines to print image directly on
cream cakes for decoration.

MARKETING SYSTEM AT KITTY

11
The marketing system at Kitty is based on a strong retail-wholesale distribution network and being
a highly price sensitive low margin food product with very short shelf life i.e., about four days on
an average and resultant return of more than 10 per cent of dispatches, the industry is witnessing a
very competitive environment with the result that inter alia the consumer's choice and preferences
plays an important role in the sales pattern of different brands of bread in the market.

MARKETING MIX

PRODUCT
Kitty Industries Pvt. Ltd. offers a broad range of edible products. Initially, they were into selling
breads but now they’ve expanded their product range. Its main products are Breads, Cakes, Buns,
Pizza Base, Rusk, Cookies, Bread Crumbs, Namkeen, Gift packs etc.

PRICE
Kitty uses only one price strategy, which is competitive pricing. Kitty is facing tough competition
from Bonn in the bread market. They’re trying hard to beat local competition. For staying above
all, Kitty had to adopt the competitive pricing approach. Hence, the products of Kitty are good
quality along with the reasonable prices. Its pricing strategy with the distribution is very strong
which helps them hold a major part of the market.

PLACE
The marketing network is spread in the states of Punjab, Chandigarh (U.T.), Haryana, Himachal
Pradesh, Uttaranchal, Western U.P., Rajasthan and Jammu & Kashmir.
The products are distributed in these states through a chain of approx. 1050 distributors.

PROMOTION
Kitty uses many methods and techniques of promotion and advertising, which includes billboards,
newspapers, TV commercials, and the point of purchase marketing ads.

COMPETITIVE ANALYSIS
12
Britannia (BIL), Modern Foods Industries Ltd (MFIL), Bonn, Kitty and Harvest are the market
leaders presently.
Both BIL and MFIL account for a combined 45% of organized bread market in India.

The bakery industry in India has witnessed an annual growth rate of more than 15 per cent during
the past years.
There is an immense growth potential in the global and domestic markets. The unorganized bread
sector comprises an estimated 75,000 bread bakers, mostly located in the residential areas of cities
and towns.
Thirty-five per cent of the total production comes from the small-scale sector, with about 1,500-
1,800 units in operation. As the bread industry is a low-margin business, cost control is crucial in
sustaining profitability in the long run.

Kitty enjoys a significant market share and is competing with many brands with nation wide
presence (Fig.3). In Punjab, a large part of the market is covered by Kitty & Bonn. They’re the
major players in the market

Fig. 3

CONCLUSION
13
Kitty Industry Ltd. are exploring new opportunities and entering the market with higher
penetration. The target is urban as well as rural customers. With the help of latest trends and
technologies, higher profits can be achieved and higher satisfaction can be achieved. At the
customer level, consumers get better products and get a wide variety of options to choose from.
The innovations and technological advancements will work hand in hand with the Kitty to provide
benefit to the sellers as well as the buyers.

REFERENCES:
14
1. Bakery Business Plan SWOT Analysis. (n.d.). Retrieved from
https://www.profitableventure.com/bakery-business-plan-swot-analysis/.

2. KITTY Industries Pvt. Ltd. (n.d.). Retrieved from https://kittybread.in/company.php.

3. After dip in sales, Ludhiana bread industry recovers from crisis. (2016, June 5). Retrieved
from https://www.hindustantimes.com/punjab/after-dip-in-sales-ludhiana-bread-industry-
recovers-from-crisis/story-7NItwAgVtlss34c7fb5ifM.html.

4. Tribune News Service. (2019, July 16). Brown bread gaining popularity in region.
Retrieved from https://www.tribuneindia.com/news/business/brown-bread-gaining-
popularity-in-region/802682.html.

5. Tribune News Service. (2018, March 20). Mago elected AIBMA president 10th time in
row. Retrieved from https://www.tribuneindia.com/news/ludhiana/mago-elected-aibma-
president-10th-time-in-row/560518.html.

6. Woodruff, J. (2019, March 19). Bakery Industry Analysis. Retrieved from

https://smallbusiness.chron.com/bakery-industry-analysis-64831.html.

15