A

PROJECT REPORT

ON

“TO STUDY DETAIL ANALYSIS OF MARKETING STRUCTURE AND MARKET

STRATEGIES”

AT
KEKIZ
SUBMITTED BY

VAIBHAV JAGANNATH MORE

MARKETING

UNDER THE GUIDANCE OF

PROF. MANJULA DHULIPALA

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

DEGREE OF MASTERS IN BUSINESS ADMINISTRATION (MBA)

THROUGH

S.K.N SINHGAD SCHOOL OF BUSINESS MANAGEMENT,

AMBEGAON (BK), PUNE

(2021-2023)

1
 DECLARATION

I, VAIBHAV JAGANNATH MORE, the undersigned studying at S.K.N Sinhgad School of Business
Management, Ambegaon (Bk.), Pune, hereby declare that the Project work titled “TO STUDY DETAIL
ANALYSIS OF MARKETING STRUCTURE AND MARKET STRATEGIES” which has been
submitted by me as the partial fulfillment for the award of the degree of Master of Business
Administration (MBA) of Savitribai Phule Pune University under the guidance of PROF. MANJULA
DHULIPALA. This is an original work of the undersigned and has not been reproduced from any
othersources.

Date: Signature:

Place: Name: VAIBHAV J. MORE

2
 GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “TO STUDY DETAIL ANALYSIS
OF MARKETING STRUCTURE AND MARKET STRATEGIES” which is being
submitted herewith for the award of the degree of Master of Business Administration
of University of Pune, is the result of the original research work completed by Vaibhav
Jagannath More my supervision and guidance.

To the best of my knowledge and belief the work embodied in this Project Report has
not formed earlier the basis for the award of any degree or similar title of this or any
other University or examining body.

Place: Pune
Date: Prof. Manjula Dhulipala

3
 ACKNOWLEDGEMENTS

The successful completion of the project would be incomplete without mention of the
people who made it possible In spite of my commitment and hard work there are some
special people who guided me towards the completion of project. Here I avail this
opportunity to thank them.

I express my sincere thanks to the Director Madam, Dr. PRACHI PARGOANKAR

for having supported me to successfully complete this project work.

I would like to take opportunity to thank and express my deep sense of gratitude to
my Guide Prof. MANJULA DHULIPALA, Department of Management and other
faculty members for their valuable guidance at all the stages of the study, their advice,
constructive suggestions and continuous engagement without which it would have not
been possible to complete the project.

I would like to thank my parents, family members, friends for their constant support and
encouragement.

Hereby I declare that all the information supported by one in this project is my own and
true to the best ofmy knowledge.

DATE: Vaibhav J. More

4
 CERTIFICATE

This is to certify that VAIBHAV JAGANNATH MORE is a student of our institute and
he has successfully completed his project titled “TO STUDY DETAIL ANALYSIS
OFMARKETING STRUCTURE AND MARKET STRATEGIES” submitted to
me is
exclusively prepared in partial fulfillment of the requirements for degree of Masters of
Business Administration (MBA) at S.K.N.S.S.B.M.

Project Guide: Prof. Manjula Dhulipala

Date:

Place: Pune

5
 INDEX

CHAPTER PARTICULARS PAGE

EXECUTIVE SUMMARY 7

1. INTRODUCTION 9

2. ORGANISATION PROFILE 14

3. RESEARCH METHODOLOGY 22

4. CONCEPTUAL BACKGROUND 26

5. DATA ANALYSIS AND INTERPRETATION 34

6. FINDINGS, SUGGESTIONS, LEARNING & CONCLUSION 41

7. BIBLIOGRAPHY 47

6
EXECUTIVE

SUMMARY

7
 EXECUTIVE SUMMARY

This summer internship project which was undertaken as a part of MBA curriculum was aimed at
understanding the concept of marketing structure and strategies in India at KEKIZ. Ltd., Pune. The
title of the project work is “TO STUDY DETAIL ANALYSIS OF MARKETING STRUCTURE
AND MARKET STRATEGIES”. The Cake is a food which typically is used and known all over
the world in the form of Sweet Desserts. Cakes were a modern modification of bread, typically in
olden days bread are used in place of cake. The global cake market is expected to witness a CAGR of
3.3%, during the period 2018-2023, and is expected to value at USD 75 billion, by 2023.
Manufacturers are including healthy ingredients in their cake products in order to gain competitive
advantage. The sale of large cakes have been on the decline, as customers are favoring of smaller
ones.
The increasing popularity of customizable cakes is the driver for global cake market. With the rise of
in-store bakeries and innovative product offerings from the small, regional, and international
suppliers, the cake market is making its presence felt, globally. The recent trends of designer cakes
and continuous innovations in cakes are likely to boost the market. The global cake market is
segmented based on flavors, product type, distribution channels, and geography. Decorated cakes and
dessert cakes together account for the majority of the market demand for cakes, globally. The
chocolate cakes are preferred to other flavors, and contribute the most to revenue generation. The
market for cakes is highly fragmented, due to the presence of a large number of regional and
international suppliers. The vendors compete for innovation, pricing, and distribution.
Urbanization and rising disposable incomes have resulted in greater purchasing power. The working
population in big cities prefers on-thego foods, such as pastries, cake snacks and sweet pies, among
others. Globally, 54% of the population lives in urban areas, and this is expected to increase in the
coming years.

8
 CHAPTER 1

INTRODUCTION

9
1.1 Introduction

This summer internship project which was undertaken as a part of MBA curriculum was aimed
at understanding the concept of Market Structure and its Market strategies in India at KEKIZ.
Ltd., Pune. The title of the project work is “To Study Detail Analysis Of Marketing
structure and Market Strategies”

The Cake is a food which typically is used and known all over the world in the form of Sweet
Desserts. Cakes were a modern modification of bread, typically in olden days’ bread are used
in place of cake. The global cake market is expected to witness a CAGR of 3.3%, during the
period 2018-2023, and is expected to value at USD 75 billion, by 2023. Manufacturers are
including healthy ingredients in their cake products in order to gain competitive advantage.
The sale of large cakes has been on the decline, as customers are favoring of smaller ones.

The increasing popularity of customizable cakes is the driver for global cake market. With the
rise of in-store bakeries and innovative product offerings from the small, regional, and
international suppliers, the cake market is making its presence felt, globally. The recent trends
of designer cakes and continuous innovations in cakes are likely to boost the market. The global
cake market is segmented based on flavors, product type, distribution channels, and geography.
Decorated cakes and dessert cakes together account for the majority of the market demand for
cakes, globally. The chocolate cakes are preferred to other flavors, and contribute the most to
revenue generation. The market for cakes is highly fragmented, due to the presence of a large
number of regional and international suppliers. The vendors compete for innovation, pricing,
and distribution.

Urbanization and rising disposable incomes have resulted in greater purchasing power. The
working population in big cities prefers on-thego foods, such as pastries, cake snacks and sweet
pies, among others. Globally, 54% of the population lives in urban areas, and this is expected
to increase in the coming years

The global cake market is poised to depict a substantial growth, at a CAGR greater than 3%
over the forecast period. Growing urbanization coupled with an increase in disposable income
is expected to favor the growth. With more than 40% of the world population living in urban
areas, the industry is likely to witness an upsurge over the next seven years.

The industry has always been a growing sector owing to globally increasing population, but
the recent trend of the western-styled bakery in the Asia Pacific region may further fuel
10
small privately owned businesses, expansion into different economies could be a challenging
task. However, the upsurge of logistics providers may offer solutions for local players to
expand their reach.

The market is segmented into artisanal and in-store bakers. While the artisanal cakes have been
a unique selling point in fueling the demand, the upcoming trend of in-store bakeries may
further provide growth opportunities. The in-store bakeries offer a one-stop-shop solution
offering pastries and other bakery items. Recent trends of designer product and continuous
innovations in product offerings are likely to keep the industry alive. For Instance, Bimbo
Bakeries’ Minion-shaped cake, produced under license from Illumination Entertainment and
Universal Pictures, is one such example.

Consumer preference for food acts as the biggest driving factor for any food related industry.
The market may take a hit if user’s eating habits change over time owing to such dependencies.
Healthy diet trends may impede the industry growth. However, continuous innovations to bake
healthy products with low-calories may sustain growth. Some bakers offer small bite-sized
pastries for people preferring on-the-go snacks. The high convenience provided by such
product is also expected to catapult demand over the forecast period. The pastries section is
expected to be the highest contributor of revenue over the forecast period.

Food perishability remains a key challenge the industry faces. Thus, players need a constant
supply of raw materials. Although the cake market does not face excessive demands, any delay
in the supply chain may immediately lead to reduced sales. This acts as a challenge for artisan
cake makers who do not bake their own bread. A dependency on supplier thus works an
enormous problem which may impede growth for individual players.

Globally, the North American and European economies have been the key revenue generators,
followed by a substantial share coming from Asia-Pacific. The growing population of the Asia-
Pacific region may provide long-term opportunities for bakers. Although small bakers may not
be able to capitalize on these opportunities, larger bakery chains may have the competitive
advantage to reap benefits from India and Turkey. The online product delivery services offering
various customization options are expected to further catalyze growth. The industry is mostly
localized with regional suppliers commanding market share. Competitive pricing and product
offerings play the differentiating factor for successful bakers enabling them to extract high
profit.

11
 The ongoing trend of healthy eating is expected to add focus on bread quality and product
innovation. A high number of bakers offers healthy alternatives to high-calorie products and is
expected to be a key factor increasing market share. The introduction of new flavor is also
anticipated to positively impact industry growth. However, the cake market is highly
fragmented in nature with numerous players operating in a region leading to fierce competition
on the basis of product offerings, pricing, brand recognition and technology.

The industry is expected to witness rising number of consolidated online stores with offerings
from various bakers. The aforementioned initiative has increased presence for local brands,
thereby increasing their market share. Key players in the market include Artisan Cake
Company, Little Venice Cake Company, Ele Cake Company and The Blue Cake Company.
Innovative designs and new flavors are expected to maintain a healthy demand from consumers
leading to high growth.

1.2 OBJECTIVE

 To study the concept of Bakery Industry and to evaluate the importance of bakery products in the
society.
 To study about the marketing strategies at different levels of bakery products.
 To study about the factors affecting the marketing structure and marketing strategies.
 To classify the different types of Cakes production.
 To study about the advertisement of different types of cakes.

1.3 Scope

This study aims at studying and building brand awareness via innovative use of social media
marketing.
This study helps me to get the reality check of market where actual comparison between the
classroom knowledge and the real situation can be done. By just learning theory and facing actual

12
situation it concepts and practices might vary. The study helps to understand the different concept of
marketing, but while implementing it might differ from situation to situation.
This study helps to understand and know about different technique of brand awareness, how
We can create brand awareness by various strategies and structures.

1.4 Limitations:

 Summer Internship was limited for only two month.

 Primary data I have collected is not sufficient because there is limitation to collect
. data. I used observation and discussion method.
 As a trainee and temporary employee of the company so I was unable to got detailed
Information about my task.
Applicability of finding are not universal as it is not tested.

13
 CHAPTER 2

ORGANISATION PROFILE

14
Kekiz is an Indian cake and pastry specialty brand, producing and serving top quality fresh
cakes in and around Pune. At present Kekiz has over 650 types of cakes which are customized
in an attractive and unique way. Kekiz is located at 150 locations and has a widespread market
in Pune. Mrs. Swati Jayant Waidande is the Founder and Chairman of Kekiz Ventas pvt.lmt.
Earlier Swati Waidande owned a small bakery in Pune and earned 5 lakh Rs per month. Within
one year Swati gained a profit and her income raised up to 5 crores per month from 5 lakhs.
Swati completed her higher education in humanities CBSE board. Furthermore, she pursued
BScs [bachelor of science in hotel management] from AISAMS college of hotel management
and catering technology. Swati always believed in the motto that “A chef is an artist”. She
ensured keen attention to her work and always respected her work. Today due to her intellectual
capabilities and integrity she has established a huge company bearing fruits of success.

Even Kekiz has opted the Hub and spoke model for efficient running of its business. In the
Kekiz, Swati has appointed the master franchisee that acts as the hub and manufactures cake.
As master franchisee handles manufacturing process, the franchisee represents spoke from
where the distribution and selling is carried forward. By building such a great process Swati
earns profits and has also started the “galla chodo campaign” that means earning money
without actually being physically present on the cash counter.

Awesome Taste Kekiz’s baked products have been able to satiate the sweet tooth of all of
their customers. Their light and spongy cakes topped with rich and perfectly sweetened cream,

15
cannot be resisted. The bakery also has a number of flavours available. The best part is that
they always have a stock of fresh cakes, which means there is no compromise on taste.

Accessibility Kekiz is located at 150 locations across the city. They are also rapidly expanding
in the state of Maharashtra and are soon going to go national with their outlets. The bakery is
also a favourite among people from all social backgrounds.

The Variety Kekiz has over 650 types of cakes which they manufacture. The bakery has
generic cakes such as black forest, fruit cakes, choco chip, Dutch chocolate and other types. If
you are looking for something out of the regular cake box, Kekiz also does custom made cakes
according to your needs.

Cost Efficient The prices are pretty cheap as well. The cost of a pastry is INR 25 and a half kg
cake will set you back INR 300, while one kg will cost you INR 600. The customised cakes
starts at INR 350 for half kg and goes upwards depending upon the design a well as the quantity
you need.

Excellent Service Breaking the stereotypes around Pune brands, Kekiz is serving its customers
with a warm smile. Enter any location clueless, and the staff will help you out. Living up to
their word, Kekiz is actually putting customer satisfaction above everything else.

2.1 VISION

TO BE PART OF EVERY HAPPINESS

2.2 MISSION

1. WORLD’S LARGEST CAKE SUPPLY CHAIN

2. STATE OF ART INNOVATION IN CAKE.
3. WE PROVIDE WORLD’S FINEST CAKE.
4. WE CARE YOUR PRECIOUS MOMENT.
5. OUR EXISTENCE OVER 5000+ PAN INDIA LOCATION.

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2.3 CORE VALUE

• PASSION
• INTEGRITY
• STATE OF ART TECHNOLOGY
• CUSTOMER SATISFACTION
• INNOVATION BAKING

2.4 ORGANISATION STRUCTURE

MRS. SWATI WAIDANDE

(CHAIRMAN, KEKIZ INDIA)

Mrs. Vaishali Shelar Mr. Ganesh Gavte Mrs. Shobha Gaware

Director, Kekiz India Director, Kekiz India Director Kekiz, India

17
2.5 COMPETIORS

2.6 KK FOODS
A KK food is factory which prepares cakes for Kekiz brand. KK foods have tie up with Kekiz
cake brand. Kekiz provides franchisee to people to wish to have cake shop. Then KK foods
supply the Cakes to the cake shops of Kekiz on daily basis as per demand. KK foods only
supply cakes in Pune city. KK foods started operating in Pune in 2018.

2.7 MANAGEMENT OF KK FOODS

General Manager

Production Manager

Logistics Manager

Transport Manage

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2.8 PRODUCTS

PASTRIES CUP CAKES

CAKES

CUSTOMED CAKE

19
2.9 FLAVOURS IN KEKIZ CAKES

Red Velvet

Rassmalai

Blue Berry

Mix fruit

Casatta

Chocolate Dutch

Chocolate Hazelnut

Choco Chips

Black forest

White Forest

ETC.

2.10 Franchisee

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21
 CHAPTER 3
RESEARCH METHODOLOGY

22
3.1 PRIMARY DATA
Data that has been collected from first-hand-experience is known as primary data. Primary data
has not been published yet and is more reliable, authentic and objective. Primary data has not
been changed or altered by human beings; therefore, its validity is greater than secondary data.
Importance of Primary Data: In statistical surveys it is necessary to get information from
primary sources and work on primary data. For example, the statistical records of female
population in a country cannot be based on newspaper, magazine and other printed sources. A
research can be conducted without secondary data but a research based on only secondary data
is least reliable and may have biases because secondary data has already been manipulated by
human beings. One of such sources is old and secondly they contain limited information as
well as they can be misleading and biased.

SOURCES OF PRIMARY DATA:

SURVEY:
Survey is most commonly used method in social sciences, management, marketing and
psychology to some extent. Surveys can be conducted in different methods.

INTERVIEW:
Interview is an ace-to-face conversation with the respondent. In interview the main problem
arises when the respondent deliberately hides information otherwise it is an in depth source of
information. The interviewer can not only record the statements the interviewee speaks but he
can observe the body language, expressions and other reactions to the questions too. This
enables the interviewer to draw conclusions easily.

OBSERVATIONS:
Observation can be done while getting the observing person know that s/he is being observed
or without letting him know. Observations can also be made in natural settings as well as in
artificially created environment.

23
3.2 SECONDARY DATA
Data collected from a source that has already been published in any form is called as secondary
data. The review of literature in any research is based on secondary data. It is collected by
someone else for some other purpose (but being utilized by the investigator for another
purpose). For examples, Census data being used to analyze the impact of education on career
choice and earning.
Common sources of secondary data for social science include censuses, organizational records
and data collected through qualitative methodologies or qualitative research. Secondary data is
essential, since it is impossible to conduct a new survey that can adequately capture past change
and/or developments.

Sources of Secondary Data:

The following are some ways of collecting secondary data

 Books

 Records

 Biographies

 Newspapers

 Data archives

 Internet articles

 Research articles by other researchers (journals)

 Databases, etc.

In this study interview technique has been used. Interview has been taken from respective
Directors, master franchisee owner, franchisee owners & customers. It covering wide
collection of academic literature on Marketing strategies and structures. According to the
objectives of the study, the research design is of exploratory in nature.

24
This study is based on the secondary data sourced which focused on the various Books,
Records, Biographies, Newspapers, Data archives, Internet articles, Research articles by
other researchers (journals),Databases, etc.

. Keeping in view of the set of objectives & research design has been adopted to have greater
accuracy in the depth analysis of the research study.

25
 CHAPTER 4
CONCEPTUAL BACKGROUND

26
4.1 MARKET STRUCTURE

What is Market Structure?

Market structure, in economics, refers to how different industries are classified and
differentiated based on their degree and nature of competition for goods and services. It is based
on the characteristics that influence the behavior and outcomes of companies working in a
specific market.

Some of the factors that determine a market structure include the number of buyers and sellers,
ability to negotiate, degree of concentration, degree of differentiation of products, and the ease
or difficulty of entering and exiting the market.

Understanding Market Structures

In economics, market structures can be understood well by closely examining an array of

factors or features exhibited by different players. It is common to differentiate these markets
across the following seven distinct features.

1. The industry’s buyer structure

2. The turnover of customers
3. The extent of product differentiation
4. The nature of costs of inputs
5. The number of players in the market
6. Vertical integration extent in the same industry
7. The largest player’s market share

By cross-examining the above features against each other, similar traits can be established.
Therefore, it becomes easier to categorize and differentiate companies across related industries.
Based on the above features, economists have used this information to describe four distinct
types of market structures. They include perfect competition, oligopoly market, monopoly
market, and monopolistic competition.

27
4.1.1. Types of Market Structures

1. Perfect Competition

Perfect competition occurs when there is a large number of small companies competing against
each other. They sell similar products (homogeneous), lack price influence over the
commodities, and are free to enter or exit the market.

Consumers in this type of market have full knowledge of the goods being sold. They are aware
of the prices charged on them and the product branding. In the real world, the pure form of this
type of market structure rarely exists. However, it is useful when comparing companies with
similar features. This market is unrealistic as it faces some significant criticisms described
below.

 No incentive for innovation: In the real world, if competition exists and a company
holds a dominant market share, there is a tendency to increase innovation to beat the
competitors and maintain the status quo. However, in a perfectly competitive market,
the profit margin is fixed, and sellers cannot increase prices, or they will lose their
customers.
 There are very few barriers to entry: Any company can enter the market and start
selling the product. Therefore, incumbents must stay proactive to maintain market
share.

2. Monopolistic Competition

Monopolistic competition refers to an imperfectly competitive market with the traits of both
the monopoly and competitive market. Sellers compete among themselves and can differentiate
their goods in terms of quality and branding to look different. In this type of competition, sellers
consider the price charged by their competitors and ignore the impact of their own prices on
their competition.

When comparing monopolistic competition in the short term and long term, there are two
distinct aspects that are observed. In the short term, the monopolistic company maximizes its
profits and enjoys all the benefits as a monopoly.

The company initially produces many products as the demand is high. Therefore, its Marginal
Revenue (MR) corresponds to its Marginal Cost (MC). However, MR diminishes over time as
new companies enter the market with differentiated products affecting demand, leading to less
profit.

3. Oligopoly

An oligopoly market consists of a small number of large companies that sell differentiated or
identical products. Since there are few players in the market, their competitive strategies are
dependent on each other.

For example, if one of the actors decides to reduce the price of its products, the action will
trigger other actors to lower their prices, too. On the other hand, a price increase may influence

28
others not to take any action in the anticipation consumers will opt for their products. Therefore,
strategic planning by these types of players is a must.

In a situation where companies mutually compete, they may create agreements to share the
market by restricting production, leading to supernormal profits. This holds if either party
honors the Nash equilibrium state and neither is tempted to engage in the prisoner’s dilemma.
In such an agreement, they work like monopolies. The collusion is referred to as cartels.

4. Monopoly

In a monopoly market, a single company represents the whole industry. It has no competitor,
and it is the sole seller of products in the entire market. This type of market is characterized by
factors such as the sole claim to ownership of resources, patent and copyright, licenses issued
by the government, or high initial setup costs.

All the above characteristics associated with monopoly restrict other companies from entering
the market. The company, therefore, remains a single seller because it has the power to control
the market and set prices for its goods.

4.2 MARKETING STRATEGY

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.

Strategic planning involves an analysis of the company's strategic initial situation prior to the
formulation, evaluation and selection of market-oriented competitive position that contributes
to the company's goals and marketing objectives.

Strategic marketing, as a distinct field of study emerged in the 1970s and 80s, and built on
strategic management that preceded it. Marketing strategy highlights the role of marketing as
a link between the organization and its customers.

Marketing strategy leverages the combination of resources and capabilities within an

organization to achieve a competitive advantage and thus enhances firm performance
(Cacciolatti & Lee, 2016).

Importance of having a Marketing Strategy in your business

Choosing a suitable marketing strategies for the company will bring great advantages such as:

 Increased sales
 Creating sustainable growth for the company
 Understanding what your customers want
 You will meet the needs and exceed the expectations of the customers
 You will strengthen the relationship with the target market
 You will build the brand in the consumer’s mind

29
4.2.1. Types of Marketing Strategy

1. Portfolio Marketing Strategy

Analyze which products are sold and which are not in order to decide which ones are still on
the market and continue with their manufacturing process since keeping the products that are
not generating economic income must be discarded.

2. Segmentation Marketing Strategy

This strategy is to decide which segments the market has been classified into. The segmentation
can be of three types:

 Differentiated: when addressing each of the market segments that have been identified
with a different offer and positioning. This strategy has a higher cost, but it will allow
to satisfy the specific needs of each selected segment
 Undifferentiated: segments with different needs are identified, but the company
chooses to address them with the same offer, in order to try to get the largest number
of customers

30
  Concentrated: only one of the market segments is chosen. This avoids making efforts
in other segments and allows the campaign to be focused. This is the most effective
strategy for companies that are growing

The segmentation strategy is derived from previous market research in order to classify the
segments and make good decisions about them.

3. Brand Positioning Marketing Strategy

This strategy consists of defining how the brand wants to be perceived in the strategic segments
decided, what attributes we want to have as a company or brand in the mind of the consumer.
There are several ways to access the positioning in comparison to the competition and it can
be with the product’s cover, the company’s image, the characteristics and uses of the product.

The main marketing strategies on positioning are:

 Benefit: this strategy is based on positioning the product for the benefit it offers
 Quality/price: offering the highest quality at a competitive price
 Attributes: position the product by the attributes it has
 Use/application: position based on the use or application given to the product
 Categories: position yourself as a leader in a product category
 Competitor: compare your products with those of your competitors, this is a classic
strategy

When we talk about positioning strategy as a concept, we must take into account that we are
designing three different strategic marketing keys: the positioning of the company, the
positioning of the brand and the positioning before the consumer.

4. Functional Marketing Strategy

This strategy is formed by the strategies of the marketing mix or also called the 4Ps of
marketing are variables of great importance to achieve the commercial objectives that the
organization has. The 4 variables are product, price, distribution and promotion.

 Product: brand, image, warranty, after-sales services among others

 Price: modification of prices, discount scales, payment conditions etc.
 Distribution: packaging, storage, order management, inventory control, point of sale
location and transport
 Promotion: internal and external communication, supports and media

5. Marketing Strategy with the Competition

This strategy focuses on competitive value. You must define where you are in the market
compared to your competition.

 If you are above your competitors, maintain that position

 If you are below the competition, scale your position
 If you are below, you can also stay there, in case fighting for a higher place is
counterproductive

31
6. Loyalty Marketing Strategy

It will maintain customer loyalty. It will prevent them from leaving with the competition thanks
to the constant creativity and good customer service that the company will provide to its
consumers. It can include discounts, promotions, gifts, etc.

7. Content Marketing Strategy

This strategy is based on the creation of content such as: articles, computer graphics, ebooks.
This type of strategy can be used as a blog where you can:

 Publish news, trends and information about the company or specific product
 Reviews
 Educate the customer about the product/service

8. Direct Marketing Strategy

A direct-customized message is implemented with the client. The consumer values the fact that
the company communicates in a personal way for him/her as close ties are created.

9. Digital Marketing Strategy

Today most companies do digital marketing something that was not common several years ago.
Being just one click away from information makes this strategy popular.

How to develop an effective marketing strategy?

For an effective marketing strategy, it is necessary to know your competition and know that
what you offer to your clients has the added value that the competition does not have (FAB
ANALYSIS- features, advantages and benefits).

After this define your target market in a demographic and psychographic way, this will help to
know why they need to buy products/services from you.

There are several ways to make marketing strategies effective, so it is necessary to focus on
the most important communication channels (traditional and virtual media) and to be able to
carry out the strategies with a successful follow-up of the implementation of the strategies.

Establish the objectives and the process:

 Analyze the position in the market: identify the target audience, the competition and
what is happening in the company. In addition, define which are the strong aspects and
those that you should optimize
 Establish goals: create achievable brand and sales objectives and determine the time
frame to reach them
 Design the tactics: after you examine the landscape, create the lines of action based on
the strategies you know

32
 Implement controls: define how you will measure goal achievement and how you
expect performance to gradually improve

33
 CHAPTER 5
DATA ANALYSIS AND DATA
INTERPRETATION

34
5.1. MARKETING STRATEGY

A marketing strategy is a type of strategy with which each business unit plans to achieve its
marketing objectives by:

1. Selecting the target market, you want to reach

2. The definition of the positioning you will try to achieve in the minds of your target
customers
3. The choice of the marketing combination or mix (product, distribution, price and
promotion) with which you intend to meet the needs or desires of the target market
4. The determination of marketing expenditure levels

In order to develop the marketing plan, it is important to first choose the marketing strategy for
the long-term objectives of the company. For this you can accompany yourself by creating
SMART Objectives, performing a SWOT Analysis or FAB Analysis, among other methods to
structure well what you want to do, how you should do it and what results you could obtain.

Some of the traditional strategies that are still widely used by organizations today. However,
the world is in a constant media development so companies have also felt the pressure to use
other types of marketing strategies to survive and transform the processes of change, this is
why the importance of digital marketing strategies.

The company must adapt to changes in technological development, communication channels,

customer mentality and different processes that today’s world moves fiercely. Not all
organizations carry out market strategies in the same way. Just as there is diversity of people,
there is diversity of brands, and each of them has particular preferences and needs. Choose the
strategies that work best for you and take you to the right audience.

5.2. STRATEGIES USED IN KEKIZ

1. Padman Strategy:

The movie “Padman” casting Akshay Kumar was a reality based movie. The original Padman
Mr. Arunachlam Murugantham fought for social cause and manufactured a sanitary pad
making machine in a village. He invented low cost machine which earlier costed 3 crores and
he manufactured it in 65000Rs. Being inspired by Padman even Swati manufactured a low cost
cake maker machine and reduced its cost from 2 crores to 20 lakh Rs. Moreover, due to this
Padman strategy numerous numbers of master franchisees and franchisees were booked in a
very certain time.

2. Cut mix and apply strategy:

Swati Waidande created such an excellent technique which eased the work for the master
Franchisee. She invented flavored premixes and standard operating procedures. This process
includes simple methods, with the help of readymade premixes, just get the premix, mix it,
automatically the flour gets needled and the cake gets ready within limited time span.

35
Moreover, she designed different flowcharts for varied designs and flavors in cakes in order to
bring variety in tastes, designs and flavors.

3. Assembly line strategy:

In this strategy all the steps are pre decided due to which proper cleanliness is maintained. A
news channel broadcasted a news regarding the local bakery on how they cook their cakes. In
such local bakeries the dough is needled with bare hands which lead to the sweat, dirt of nails
and germs entering the cake mixture. Similarly, flies and insects wandering in the baking areas
create more unhygienic mess. Moreover, the local workers use knives or blades to clean their
hands and again those sweaty hands are dipped in the dough. Swati gave much importance to
cleanliness. She segregated her model into 3 different sections namely – (1) Hot area, (2) cold
area and (3) Cold storage wherein the cake is cooked step by step without any human touch.
Moreover, to keep hygiene at its peak the workers are instructed not to wear hair clips, jewelries
and also keep nails clean and short.

4. Kekiz cake training institute:

As the company has setup such rules and regulations for the workforce, it becomes difficult to
get such disciplined working men.

In order to get sophisticated workers and practice hygiene within the company, the unemployed
students are trained for free in the university of kekiz. When the student has qualified and
gained proper knowledge on how the cake making procedure is carried out in Kekiz, the student
is hired.

5. Economies of scale:

This strategy implies that in order to develop huge business and target large markets the cost
of production should be reduced. It should be reduced to such a level that no one can compete
the company resulting into strong monopolistic control. Generally for baking a cake 5 types of
raw materials are required: One premixes of varied flavors like vanilla, chocolate, butterscotch.

1. Sugar syrup

2. Chocolates

3. Fruit filling

4. Cream

If the company purchases these items in bulk quantity and reduces the cost the master
franchisee would enjoy the benefits. Moreover, due to this they no more have to go searching
or sourcing. Also, the process of supply chain logistics i.e. converting raw materials into
finished goods and then selling those finished products has ended. All these materials are then
easily transferred to the warehouses of master franchisees. With such an easy concept, the
company is able to increase its profit as well as able to retain the trusts of its franchisees.

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TAMS [Total addressable market size]:

This strategy implies the ways to increase market size. In order to increase the business as per
the market size, Kekiz has come up with new rule of baking vegetarian i.e. 100% eggless cakes.
In the market, there are many acts of frauds which we all are completely unaware of. If a
consumer demands for vegetarian cake and if the cake is not available, then there may be a
chance that the retailer may exchange the logo from red to green to gain some profit which is
not at all ethical. Eliminating this chance of fraud, Kekiz came up with total vegetarian policy.
This strategy won’t bother the non-vegetarians as well, thus increasing the market share.

6. Technology automation for speed and scale:

Kekiz has developed software in order to keep a record of orders and customers. In traditional
bakeries work is carried manually which often messes up with orders. For example, if a XYZ
person has ordered 5k.g. pineapple cake and the employed person looses the receipt, cake of
2kg could be mistakenly baked instead of 5 kg. This would result in complete loss of brand
image. With the software driven system, the chances of human errors are eliminated.

7. Breakdown Maintenance:

The company has designed maintainability improvement. The company guarantees the
manufacturer (master franchisee) to solve the defects within the machine in the time span of
24 hours. If the repairment is not possible the company provides a new machine. Moreover, for
the timing till the machine gets repaired, the manufacturer is provided with another machine
within 4 hours which eases and starts the production again. Hence, the stress of the
manufacturer is reduced and the production is carried out effectively.

8. Return on Investment:

This strategy implies that at the beginning of the business plans or production the, master
franchisee is informed about the return on investment plans. The control is since the beginning
of business, resulting in profits. The records too come up with reduced costs and increased
margin of 270%. The reason behind this is “cake” today has no substitute. For e.g. if we take a
glance at sweets like Gulaab jamun can be substituted with Mishti Dohi, Laddoo or chocolates.
But cake has no substitute .Moreover, ordering cake has become an essential modern ritual
today. Whether it’s a birthday, or buying a new car or home, baby shower, etc. cake is must.
Swati has applied her calculation in such a way that both Franchisee as well as Master
franchisee are able to earn decently.

9. Low cost marketing ideas:

Marketing is a very important part of every business. In kekiz, if there is an order for small
kid’s birthday, they may charge 1000rs or 2000rs extra from the customer and provide all the
attractive benefits that the child would love. This includes stuff like beautiful cutouts with the
cake, themes of Barbie/chota bheem for birthday parties and various other events. Moreover, a
DVD is provided by the company comprising photos and videos captured by the photographers
of Kekiz.

On 31st December kekiz came up with its buy one get one free offer for New Year eve. This
attracted a lot of customers making the cakes go out of stock in no time.

37
Another strategy of Kekiz is to increase customer engagement through social media. It asks its
customers to post a photo while having cake on social media sites like Facebook, Intagram,
etc. and they would get 50% discount on the next order if the post gets viral. In today’s world
digital marketing has become an excellent tool which kekiz has utilized to reach the end users
and activate promotion.

5.3. BENEFITS:

1. Kekiz provides price efficient products. The cost of pastry is INR 25 and half kg cake 300 if
customized 350 and one kg 600Rs. So, it is pretty cheap and tasty too.

2. Kekiz has effectively worked on Sales and operation planning, here the management guides
the employees in such a way that the team continually, achieves focus, alignment and
synchronization among all function of organization.

3. Manpower is also saved as cost effective technology is upgraded and manual hardship is
reduced.

4. The systematic process has led to reduced cost more profit. Due to the development of
method and model the master franchisee manufactures the cake and franchisee does the selling
work. The process is coordinated properly. Hence, Swati Waidande enjoys monetary benefits
which will also lead to recurring revenue for her.

5.4. MARKET STRUCTURE OF KEKIZ

Kekiz is a rising brand with specialization of cake & pastry. Kekiz started their journey from a
small bakery in Pune.Today they more than 500+ branches in India. The cake varieties start
with very small amount i.e Rs. 300. In today’s time, cakes are ordered very often for several
occasional. We order for birthday celebration, wedding party, office party celebration and
more. Kekiz has international standard cake manufacturing facility and main complete hygienic
rules imposed by Govt.Franchise business is one of the rapid growing industry in India. You
can find other food related franchise like Gianis ice cream Franchise,

38
Biryani Blues , KFC , Pizza hut etc. If you are passionate with cake, Kekiz Franchise could be
best brand for you to start business with them.

Required Area

For taking franchise you need at least 150 sq. ft. to 250 sq. ft. area in your prime location. You
can start franchise in your rented place or in your own place. In case of rented place, you need
5 years rent agreement.

Shop Opening Investment

If we talk about franchise investment, the total cost comes around 7 lakhs. Below are the cost
details, you can find:

1. You Should be able to invest 2 Lakh + GST Franchisee Fees (Non Refundable)
2. 5 lakhs. Interior cost with Cooling Counter for 200sq ft Shop Approximately
3. Franchise owner Should Be Willing to Provide Prompt & Excellent Service to the
Customer through Indispensable Manpower

Profit Margin

The profit margin is very high in this franchise. You get 50% profit margin on purchase.

 50%, Margin on Purchase of Cakes and Pastries.

 Standard Design of Infrastructure & Layout Plan
 Direct Supply from Factory resulting in timely delivery.
 Continuous Advertisement and Promotional Support to Increase Sales

Let’s take an example for better understanding:

If you purchase 1/2 kg cake from master franchise at the price Rs.200, then fifty percent profit
means Rs. 100.You sell cake to your customer rs. 300

500 grms cake purchased INR 200 1 kg cake purchased (INR 400)
Purchase price + Profit Margin = MRP Purchase price + Profit Margin = MRP
200+100 = Total Rs. 300 selling price 400+200 = Total Rs. 600 selling price

50% profit with an example

General Terms & Condition

 Agreement period of ‘Kekiz’ Franchisee is 5 Years,

 On return of Product 75% bear by Company 8. 25% bear by Franchisee
 Franchisee will pay Monthly Shop Rent, Telephone Bill. Internet Bill. Electricity Bill.
Maintenance Bill)

39
Franchise Training

Training is mainly provided when you have the maximum responsibility to make product.
Kekiz make cakes and all their products. You just need to purchase cakes from them.
However,they provide support how to keep it fresh and hygienic.

Kekiz cake shop benefits :

 You connect with largest cake supply chain

 You can offer your customer varieties of cakes with unique flavor.
 Easy documentation and approval process.
 Good earning opportunity with best support
 You save adverting cost , company promote their brand itself.
 Low investment and high return

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 CHAPTER 06
FINDINGS, SUGGESTIONS &
CONCLUSION

41
6.1. FINDINGS

• Kekiz has international standard cake manufacturing facility and main complete hygienicrules
imposed by Govt.Franchise business is one of the rapid growing industry in India.

• Kekiz has effectively worked on Sales and operation planning, here the management guides
the employees in such a way that the team continually, achieves focus, alignment and
synchronization among all function of organization.

• A company gives offers for occasions and this attracted a lot of customers.

• A company has developed software in order to keep a record of orders and customers.

• The company guarantees the manufacturer (master franchisee) to solve the defects within the
machine in the time span of 24 hours.

6.2. SUGGESTIONS

• Productions plants or factories of cake should be increased.

• The cake must be available in different sizes i.e. less than half kg.

• Birthday package should be available as per customer demands.

• Arrangement of cakes in transportation must be carried out by trained person so that

company won’t bare loss due to accidents.

• As per the feedback of customers cost of customized cakes should be reduced.

• Shelf line of cakes should increase.

• The cake should be available in less time i.e. The availability of cake should be
increased.

• New favors new design must be added to the existing range of cake.

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6.3. LEARNING
The most important strategy of Kekiz was the 'Hub And Spoke Model' . If studied carefully,
we can notice this strategy has played one of the most important role towards the venture's
success. It is highly recommended for all the Entrepreneurs to use this type of strategy if they
wish to grow and publicize their venture and the same time maintaining same kind of standards.

43
THE HUB AND SPOKE MODEL ANALYSIS:
Hub and spoke is a type of distribution pattern wherein with the help of transport topology
optimization the organizing routes which includes manufacturers “hubs” and connected to the
outlaying points called “spokes”.
There are many examples of hub and spoke model used by the businesses around us:
Example 1: Dr. Lal Path lab
Dr. Lal has created his own centralized lab wherein someone else would carry out testing and
spokes i.e. the collection centers are formed where someone else would collect the samples and
forward them to the testing labs. Through this Dr. Lal Path lab would earn easy profits and
monetary benefits.
Example 2: Amul [Anand Milk Union Limited]
Amul has formed its dry and cold warehouses from where the milk packets are easily provided
to the consumers through distributors and retailers
Example 3: Coca Cola
People from many years are great fans for soft drinks. Coca Cola is amongst the leading brand
of soft drinks. Coca Cola Company has an excellent secret behind its profit and increased
market value. The Coca Cola drink is produced by the boat ling plant, whereas Coca Cola
Company only provides the syrup and instructs the boat ling plant how much amount of sugar,
water, and soda is to be added. Thus, manufacturing is done by the boat ling plant and the
product is distributed through the wholesalers and the retailers, whereas Coca Cola enjoys
profits because of the hub and spoke model.
Example 4: Restaurants
There are restaurants which produce premixed and semi cooked food items .Premixes include
fortifying food, supplements and staples which includes vitamins, minerals, amino-acids and

44
are also available in variant flavors. Semi cooked food includes sausages, pickles, bacon, salted
foods, cheese, semi-cooked preserved, frozen, dried, or cooked food items. This food items are
then delivered to small franchisees through spokes the consumer is supplied with food items.
Benefits of Hub and spoke model:
1. You are no more liable for further investments and the expenses would be carried by the hub
and spoke managers.
2. Your recipe is under control, the taste and aroma of your recipe are preserved as a secret.
3. Your trade secrets are under control. No other company can come to know how your food is
manufactured or prepared.
4. No one can copy your recipe. Hence, your secret recipes can monopolistically rule the
markets.

My Learnings :

• The systematic process has led to reduced cost more profit. Due to the development of
method and model the master franchisee manufactures the cake and franchisee does the
sellingwork. The process is coordinated properly.

• Marketing is a very important part of every business.

• The strategy implies that in order to develop huge business and target large markets the cost of
production should be reduced.

My Contributions :

• Due to higher pricing customer gets diverted to other brands, I introduced some offers
which company providing to customers.

45
6.4. CONCLUSION

A marketing strategy is a type of strategy with which each business unit plans to achieve its
marketing objectives by:

1. Selecting the target market, you want to reach

2. The definition of the positioning you will try to achieve in the minds of your target
customers
3. The choice of the marketing combination or mix (product, distribution, price and
promotion) with which you intend to meet the needs or desires of the target market
4. The determination of marketing expenditure levels

In order to develop the marketing plan, it is important to first choose the marketing strategy
for the long-term objectives of the company. For this you can accompany yourself by
creating SMART Objectives, performing a SWOT Analysis or FAB Analysis, among other
methods to structure well what you want to do, how you should do it and what results you
could obtain.

Some of the traditional strategies that are still widely used by organizations today. However,
the world is in a constant media development so companies have also felt the pressure to use
other types of marketing strategies to survive and transform the processes of change, this is
why the importance of digital marketing strategies.

The company must adapt to changes in technological development, communication channels,

customer mentality and different processes that today’s world moves fiercely. Not all
organizations carry out market strategies in the same way. Just as there is diversity of people,
there is diversity of brands, and each of them has particular preferences and needs. Choose
the strategies that work best for you and take you to the right audience.

 Market structure refers to how different industries are classified and differentiated
based on their degree and nature of competition for services and goods.
 The four popular types of market structures include perfect competition, oligopoly
market, monopoly market, and monopolistic competition.
 Market structures show the relations between sellers and other sellers, sellers to
buyers, or more.

46
 CHAPTER 07
BIBLIOGRAPHY

47
  www.kekizindia.com
 Data generated from Directors of the company
 Data generated by KK foods Owner
 Data generated from Employees
 Data generated from Franchisee’s
 Data generated from customers

Reference Book

 The Violet Bakery Cookbook', Claire Ptak, published by Square Peg: £19.49,
 Flavor Flours: A New Way to Bake With Teff, Buckwheat, Sorghum, Other Whole & Ancient Grains,
Nuts & Non-Wheat Flours
 The Cheesecake Factory: The Unofficial Copycat Recipe Cookbook

48