Professional Documents
Culture Documents
Section A Group6
Section A Group6
REPORT
ON
CHANGING
CONSUMER
TRENDS IN BAKERY
INTRODUCTION
The report revolves around understanding the change in consumer trends in the bakery industry with the help
of market research in the same segment. The report also extends a suggestion to any new entrepreneur who is
willing to start a new business in the bakery industry limited to selling only bread.
TRENDS
The ease of availability and convenience of bakery items have made them the most sought-after consumer
goods these days. With increasing awareness among people regarding health, a variety of different types of
breads have been introduced in the market like Brown bread, multigrain bread, gluten-free bread, etc. The
growing trend for lighter and healthier food has also led to increase in demand for sugar free and healthy
bakery products. Another trend is the increasing preference for homemade products. The advent of social
media has helped home bakers and others in the unorganized sector to reach a wider market. The Indian
bakery industry is expected to surpass USD 12 billion by 2024 with a CAGR of 9.3% during 2019 to 2024. One of
the major reasons for this being the extraordinary situation in the Indian market as people continue to
experiment with new flavours and combinations. Admittance to intriguing and uncommon flavour blends are
gaining wide traction in the global market and this will provide an edge to Indians to excel and innovate.
RESEARCH METHODOLOGY
To understand the bread consumption as well as selling
pattern, we floated two google forms dedicated to each cause
respectively. We floated the first form amongst our peers from
different age groups to understand demands and choices of
each class. The second form was circulated among local
Bakeries and Kirana stores to get insights on the purchase
behaviour of consumers. The survey had some important
questions like, “Do you have any issues with the bread you get
in store?” and “Which Bread brand do you deal in?” After going
through the responses, we performed data cleaning to remove
responses which seemed dishonest and unmindful. We then
organized the data collected into different graphs and charts
and analysed the responses received to makes it easy to
understand.
THROUGH CONSUMER ANALYSIS
STORE PREFERENCE
Analysis:
Distribution of the bakery products should be mainly focused on the grocery stores and other bakery
shops who are willing to outsource bread. This can be made possible by providing incentives to the
grocery store owners.
Bakers should majorly focus on the quality as breads and other bakery products are perishable
goods and majority of consumers are brand loyal.
Main reason for the consumers not able to find their preferred bread is input cost. As these breads
are comparatively high in cost.
Demand is not homogeneous, so shopkeepers do not find it profitable to keep these costly breads.
Bakery should arrange specialized on demand service and only supply these variety of breads when
customers specifically demand. So that there will not be any unnecessary storage and shopkeeper won’t
incur higher expenses.
From the graph, we understand that 35% of the sample population purchases large Bread packet sizes by
paying approximately Rs. 35, 18% purchases Family size by paying Rs. 45 approximately, and about 33%
of the sample size purchases medium size by paying approximately Rs. 25. From this, we understand that
Family size, large size, and Medium-sized bread packets are most popular among the sample population
and the price range for the same is in the range of approx. Rs. 25 to Rs. 45.
The demand is that of 5 lacs on an average per week as per the assumed data, and out of this 50%,
which is around 2.5 lacs, bread packets are medium and large. The entrepreneur should start with a 20%
Market share target in the first 1 month of the 2.5 bread packet market per week.
Once the entrepreneur has captured this percent of the market share, he should target 40%, and
within a year, he should be able to capture 60% of this market share. This can be achieved by proper
distribution channel, quality, and comparatively better price range. To attract customers, the
entrepreneur can also try a unique bread packaging style.
MARKET TRENDS
Analysis:
He should have a presence of his brand in the grocery shops which are centrally located and in
locations where there are institutions vis a vis there are youths in
He should manufacture more units in weekends in comparison to normal weekdays as it is evident
from the responses that there is a slight increase in purchases of bread during the pandemic.
Analysis:
Business Plan:
REFERENCE:
o https://limetray.com/blog/start-bakery-business-india
o CONSUMER RESPONSE:
https://docs.google.com/spreadsheets/d/1RsLpX3oOmy4Mwk_9fKNFaEUgQEzk7EMhi-
F0w7HAN6g/edit#gid=1416793118
o SHOPKEEPER RESPONSE:
https://docs.google.com/spreadsheets/d/1S4GR4pX18fhYEkImGtlBekxXduQ_dR1CrBPFm-F-O-
U/edit#gid=1382449302