MINI PROJECT ON

“ORGANIC BAKERY PRODUCTS”

(Submitted in partial fulfillment of the requirements for MBA)

Submitted By- Under the guidance of

ISHRA SHAKEEL MR. RAHUL

Father's Name- Mr. SHAKEEL AHMAD (Associate Prof. Lloyd Business School)

Batch of 2023-25

LLOYD INSTITUTE OF MANAGEMENT & TECHNOLOGY

PLOT NO 11, KNOWLEDGE PARK-2, GREATER NOIDA-201306 (UP)

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 CERTIFICATE

This is to certify that the project report entitled “ORGANIC BAKERY PRODUCTS “ is a Bonafide work
done by ISHRA SHAKEEL of 1st Year submitted in partial fulfillment of requirement for the award of
degree of Master of Business Administration of Dr. APJ Abdul Kalam Technical University, Lucknow
during the session 2023-25

External Examiner- Internal Examiner-

Co-ordinator Principal

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 STUDENT DECLARATION

I, hereby state that the project for the MBA degree, MINI PROJECT, (Semester 1) on “ORGANIC
BAKERY PRODUCTS” has been originally carried out by me under the supervision of MR. RAJUL
GUPTA Associate professor, Lloyd business school, Greater Noida and this has not been submitted
elsewhere for any other degree and diploma previously.
The information presented in this report of market research is correct to the best of my knowledge and the
analysis is as per the norms and guideline provided for the report. I have utilized the requisite concept and
applied the required methodologies to analysis the primary data collected to reach the conclusion in the
report.

Place: Greater Noida Sign:

Date: (ISHRA SHAKEEL)

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 ACKNOWLEDGEMENT

It is my pleasure to acknowledge and express my gratitude to all those who helped me throughout in the
successful completion of this project.
I would like to thank Our Group Director, Dr. Vandana Arora Sethi for providing the necessary Facilities
required for completion of the project.
I am grateful to Mr.Rahul Associate prof. and Mr. Rajul Gupta, MBA Co-ordinator, Lloyd Institute of
Management and Technology, Greater Noida for their continuous guidance to accomplish this project
work, successfully.

ISHRA SHAKEEL
MBA Semester-I

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 INDEX

CONCEPT PAGE
SR. No
1 INTRODUCTION 6-11

2 SCOPE OF INNOVATION 12-17

3 MARKET OVERVIEW 18-31

AND RESEARCH METHODOLOGY

4 a) FINANCIAL 32-33

FEASIBILITY

b) PRODUCTION FEASIBILITY

5 USP 34-35

6 DESCRIPTION 36

7 CONCLUSION 37

8 REFERENCES 38

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 INTRODUCTION

The organic bakery products manufacturing market consists of sales of organic bakery and related
products.
Organic bakery products are made using organic ingredients such as wheat gluten, milk, butter,
honey, eggs, oils, starch, sugar, spices, raisins, cereals, grain flours and meat-based ingredients. To
meet the requirements of organic certification the manufacturers produce organic bakery products
as per the set guidelines of the food safety organizations of their respective countries.

The organic bakery products market covered in this report is segmented by product type into bread
& rolls, savory snacks, cakes & pastries, cookies & biscuits, others. It is also segmented by
distribution channel into wholesalers/ distributors/ direct, supermarkets/ hypermarkets,
convenience stores, online retailers, other retail formats and by category into gluten-free,
sugar-free, low-calories.

The global organic bakery products market is expected grow from $9.42 billion in 2021 to $12.57
billion in 2025 at a compound annual growth rate (CAGR) of 6.0%. The growth is mainly due to
the companies resuming their operations and adapting to the new normal while recovering from the
COVID-19 impact, which had earlier led to restrictive containment measures involving social
distancing, remote working, and the closure of commercial activities that resulted in operational
challenges. The organic bakery products manufacturing market is expected to reach $12.57 billion
in 2025 at a CAGR of 6%.
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The organic bakery products manufacturing market covered in this report is segmented by product
type into bread & rolls, savory snacks, cakes & pastries, cookies & biscuits, others. It is also
segmented by distribution channel into wholesalers/ distributors/ direct, supermarkets/
hypermarkets, convenience stores, online retailers, other retail formats and by category into
gluten-free, sugar-free, low-calories. deterioration of health of the consumers. Therefore, changing
consumer preference is forcing manufacturers to switch to the use of organic ingredients such as
organic baking powder, gluten-free powder, and aluminum- free baking powder. Moreover, the
rising disposable income of the population is expected to contribute to the higher dem Increasing
consumer preferences towards healthy ingredients is a major driver for the organic bakery products
market.

The growing urbanization is leading to hectic lifestyles and unhealthy eating options which has
resulted in lifestyle disorders and for organic bakery products in the near future. According to
Trading Economics, the disposable personal income in India increased to USD 2,971,770 million
in 2019 from USD 2,964,090 million in 2018.

Certifying and labelling organic bakery products follows very strict and unwavering guidelines and
is hampering the growth of the organic bakery products market. For a product to be considered
certified organic, the product must not be produced using any genetic engineering, irradiation, and
must be comprised solely of ingredients included on the National List of Allowed and Prohibited
Substances. For instance, in United States, the production of organic bakery products must be
overseen by the United States Department of Agriculture National.

Therefore, following all the mandatory guidelines and meeting the certification requirements will
hamper the growth of the organic bakery products market.
The use of innovative technology for enhanced taste and flavor is the trend in the organic bakery
products manufacturing market. The rising preference for organic bakery products among
consumers, owing to their health benefits is motivating manufacturers to use innovative technology
and methods to offer new organic bakery products with enhanced taste and flavor. The
manufacturers are trying to study new methods to increase the shelf-life of the products such as the
use of natural preservatives along with enhanced taste till the time of consumption.

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 In December 2018, Flowers Foods, Inc., U.S. based largest producer of freshly packaged bakery
food announced the acquisition of Canyon Bake house LLC, a private company engaged in
manufacturing gluten-free baked products based in Johnstown, Colo for an undisclosed amount.
The acquisition is expected to add Canyon’s gluten-free innovative products to Flowers Foods’s
product portfolio, in order to expand the company’s consumer base.

Major players in the organic bakery products manufacturing market are Flower Foods, Inc., Hain
Celestial Group (Rudi’s Bakery), Manna Organics LLC, Tusayan Bakery, Inc, Misteaches GmbH,
United States Bakery, Alvarado Street Bakery, Flowers Food, Natures Bakery Cooperative, and
New Horizon Foods Inc.

The global organic bakery products market is segmented -

1) By Product Type: Bread & Rolls, Savory Snacks, Cakes & Pastries, Cookies & Biscuits, Other.

2) By Distribution Channel: Wholesalers/ Distributors/ Direct, Supermarkets/ Hypermarkets,

Convenience Stores, Online Retailers, Other Retail Formats.
3) By Category: Gluten-Free, Sugar-Free, Low.

The next section offers an overview of the global organic bakery market. This comprises an introduction to
the market, along with a standard definition of the product – organic bakery. In this section, market value
and year-over-year growth is offered to the readers. Year-over-year growth provides readers with a broader
view of growth patterns over the forecast period.

The reports succeeding section focuses on drivers, restraints and key trends from macroeconomic, demand,
and supply perspectives. Impact analysis of weighted average model-based growth drivers is contained in
the report for better provision of decision-making insights to clients.

In order to offer readers with up-to-date information about the latest advancements in the global organic
bakery market, the report provides updates about market opportunities, which can benefit
leading manufacturers of organic bakery. With continuous evolution of the food & beverage sector, keeping a
record of latest developments and trends is fundamental for organic bakery manufacturers to formulate key
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business strategies. Detailed insights about raw material sourcing, supply chain, pricing analysis, list of
distributors, and cost structure are provided in this section

The Fact.MR report provides in-depth and segment-wise analysis and forecast of the global organic bakery
market. The market is segmented on the basis of product type, sales channel, and region. This segmentation
also offers detailed country-wise forecast on all the major parameters of the organic bakery market.

The reports last section comprises of the global organic bakery market competitive landscape, to provide
readers with the dashboard view of company analysis and market players. This competitive intelligence is
based on the providers‟ categories across value chain, and their presence in the global organic bakery
market.

SUMMARY

The report commences with a brief information of the global organic bakery market. This executive
summary sets the tone for the rest of the report, providing users the scope of the report. The executive
summary includes important facts and statistics on the global organic bakery market.

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 MISSION STATEMENT: -

“Establish Organic bakery as the premier purveyor of the finest bakery in the world while maintaining

uncompromising principle while we grow”

In today’s day and age, if there is one business that is blooming more than ever before, without doubt, it is the

bakery business. It wouldn’t be an overstatement to claim that almost every street in a city has at least one

bakery/café. this can partly be attributed to the growing influence of the western culture in India, we also

need to acknowledge the fact that bakeries/cafes offer a comfortable and warm ambience along with

affordable delicious food, which is a perfect combination one looks for when spending fun time with loves

ones or for some quality work time. Along with increasing demand, awareness of high-quality bakery goods

is on the rise more than ever before. So, opening a bakery business can be an attractive and lucrative option

in the F&B sector, especially with the advent of modern technology and machinery which make it possible to

prepare a wide variety of bakery good.

Our Mission is to: -(Innovation)

Create a bakery which makes the best quality baked goods on site from scratch, fresh daily!

▪ Create an atmosphere where we can attract, retain and motivate the brightest and
most talented people in the industry.

▪ Create an atmosphere where employees can learn, grow, and innovate, while holding
true to the roots of traditional baking.
▪ To create an inviting warm atmosphere for our clients and customers to be able to
purchase their baked goods.

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Vision Statement
Our Vision is to:
-

▪ Continually innovate in the baking industry while continuing to make everything

from scratch.
▪ Educate our staff and the public about the importance of chemical free/additive free
baking and where the food comes from.
▪ Petition Government to create more informative uses of the terms “fresh baked”,
“bakery”, “from scratch” to better educate the public about where their food is from and
what is in it.

KEYS TO SUCCESS(USP)

● Excellent product and services that will build and maintain customer’s loyalty.

● A business location that will assure high company visibility and a high flow of
customers.

● Our commitment to continuous improvement and total quality services.

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 SCOPE OF INNOVATION

Organic Bakery is built around the belief that eating a healthy, organic breakfast can have a
significant impact on a person's health and attitude, as well as the environment. Organic
bakery also believes that customers can have great tasting organic baked goods if the right
attention is paid to sourcing, recipes, and consistency.

Organic Bakery will launch a first location at Kanpur, in civil lines, to serve commuters and
build a local brand which can be leveraged into additional locations in the coming years. will
build a following through advertising, referral marketing, and a loyalty program.

This marketing plan will allow Franklin, the owner, to focus his marketing efforts by taking
the long view, and looking for results on a daily and weekly basis to see that the chosen
tactics are successful.

STRATEGY: -

The positioning goal for Organic Bakery is to be THE healthy, delicious, and
environmentally- friendly choice for baked goods at Kanpur in Civil lines by pursuing this
goal, Organic Bakery intends to achieve the following measurable results:

❖ Fill seats at an average of 90% capacity between the hours of 7:30 and 9:30 am,
Monday through Friday by the end of the first year of operation
❖ Serve an average of 300 customer orders per weekday by the end of the third year
of operation.

❖ Hold prices at 15% higher than bakery chains.

“Our strategy is based on delivering a strong customer value proposition in a niche market.
Wearer looking to offer the Local Bay city and its surrounding areas a new choice in
organic product
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Management: -

Our management is expected to use resources wisely, operate profitably, pay debts, and
abide by laws and regulations. Our management philosophy is based on team work,
responsibility, and mutual respect. People who work at, Organic Bakery. Would want to be
part of our team because we operate in an environment that encourages creativity, diversity,
growth.

Start-up Sample Business Plan

Key measures of the expected benefit from the investment are presented in the important
assumptions section of this plan. They clearly show that the risks and benefits of such an
investment would be balanced.
We recognize that any investor in a start-up company, no matter how well on paper,
ultimately needs an exit vehicle. Our purpose is to provide the best alternatives to protect
investor’s interest, while maintaining the potential growth of our company, the liquidity, and
the profitability of future operations.

There are several options (exit strategies) that could be discussed while considering
alternative methods for the investor to turn illiquid securities into readily tradable securities
or cash. These options are discussed in the final section of this business plan.

DISCLAIMER

The current unfavorable economic conditions and prospects are carefully considered, and the
estimates included in the plan are conservative. However, investors are advised to exercise
caution when considering investment alternatives because actual data almost always differ
from projections.
This business plan is designed to help investors better understand the potential risks, costs
and benefits of this business project, but it is not intended, and is not to be considered in
itself or any part of it, as an investment offer or solicitation, as regulated purely
coincidental.
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START UP SAMPLE BUSINESS PLAN

Organic bakery, Inc.’s prices will not beat the competition. We are aware that we cannot
compete on price only. That is why we prefer to focus on assessing customer expectations,
and our core competencies, decide which expectations we can reasonably meet, then make
sure to constantly exceed them wholeheartedly. Thus, we will be able to maintain and
increase the level of customer satisfaction, as a strong foundation for future growth.

The entire delivery process will be conducted through five main food-catering online
services that have excellent references in the Local Bay area, and we can choose to be one of
their participating suppliers. In this way, we are able to save on delivery costs and logistics,
and simultaneously use the high Internet exposure of our partners. In addition, delivery
people will use their own vehicles, so the business will not have to purchase delivery
vehicles or hire drivers.

START UP SUMMARY

After spending several months searching for a convenient location, the owners decided to
lease a commercial space in a densely populated area of Local place. The start-up capital
will be used for legal expenses, kitchen inventory and equipment, packing and other
materials, insurance, rent, promotion and business sign, and inventory on hand at start-up, as
shown in the table below.

Kitchen inventory will include specific tools and accessories that are typically needed for an
ORGANIC FOOD production and service facility and includes:

• Food preparation: aprons, blender, gloves, storage containers, trays,

work tables, mixers, , cleaning supplies and equipment, tableware, pots and
pans, glassware, paper, cake tins, etc.

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 • Utensils: cooking utensils, wheel cutters, cutting guide, rocker knives, etc.

Our company policy is to purchase only new, state-of-the-art, energy-efficient equipment

from reliable suppliers in the food industry.

Other expensed equipment consists of, tables and chairs, coffee makers, coffee filters,
organic tea dispensers, juice dispensers, cleaning equipment, dish machines, etc.

Inventory on hand at start-up includes specific ingredients for cakes and pastry preparation,
flour, spices and pizza condiments, sauces, juices and other soft drinks, coffee, tea, toppings,
parmesan cheese, cookie doughs, bread sticks and different dessert items that can be ordered
item. It also includes supplies that are used during the packing, sale, and delivery process,
and miscellaneous supplies.

Insurance premium for business risk coverage is initially established at (amount) for the First
two months, and will be further negotiated with the insurance company. It will be paid by
direct debit on a monthly basis. Promotion expenses are initially estimated at (amount) and
will be used for various marketing information materials and advertisements. Legal expenses
include business formation, advice and assistance, basic contracts reviews, and general
business advice. Office supplies include desks, files, tape, record books, forms, etc. Permits
expenses are the additional costs incurred to operate legally in the Local Bay area.

PRODUCT AND SERVICES

Organic Bakery will build its customer base by offering the following products and services:
To suspects Website and Facebook page offering selected Organic Bakery recipes for free.
Delivery of "care packages" to nearby businesses, with free samples of freshly baked goods.
To prospects (potential customers who pass by Organic Bakery): Free standing sign in front
of the bakery announcing specials of the day, discounted combination offers. Once a week,

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offering free samples to passers-by (employee will stand outside bakery with tray holding
free samples)

To customers (customers who have previously purchased at least one order): full breakfast
options (such as egg, coffee, and fresh fruit/small fruit salad)

To loyal customers (customers who get breakfast at Organic Bakery at least once per week):
Organic Bakery Club offers with loyalty card, such as free baked good with purchase of 5
baked goods, weekend giveaways, or free coffee with purchase of rs200 or more.

By serving at all of these levels, Organic Bakery will provide the means for customers to
learn about Organic Bakery and move up the ladder towards greater value to Organic Bakery
(and a greater impact on their health and the environment, as our marketing promises).

The most loyal customers will be solicited to participate in surveys which attempt to discern
what new items might be popular and how the service experience can be improved. These
surveys will take place quarterly, and those whose suggestions are used will be rewarded
with gift cards. Through this involvement, loyal customers will help to improve service,
which should bring in additional customers on its own. They will also have something to tell
their friends about and will be likely to tell others that Organic Bakery listened to their
suggestions and gave them a gift for participating.

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WOW PROCESS

The WOW Process is the method by which Organic Bakery employees create a consistent

and comfortable experience for customers. The Process includes:

● Consistent training for each employee, including not only service procedures,

but knowledge of Organic Bakery ingredients and baking processes, so that

every employee can explain to customers the effect it has nutritionally and

environmentally.

● Standard and pleasant customer greetings for the clerk to address the next customer in

line.

● Allowances for clerks on duty to take initiative, even in the absence of a

manager, to replace customer orders, offer substitutions, or offer refunds in the

case that a customer is not satisfied with their order.

● Paid mystery customers will periodically evaluate the clerk's adherence to

procedures and ability to satisfy them, as well as the quality of the baked goods.

Staff will know that these mystery customers will appear from time to time, but

will not know when.

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 MARKET OVERVIEW

Organic bakery products are made using organic ingredients and cereals. These products are
produced as per the specific set of guidelines designed by different food safety organizations
in different countries in order to get organic certification. Organic bakery products are made
using organic butter, organic flour, organic sugar or natural sweeteners, etc. Sugar-free
organic bakery products are also gaining popularity among consumers.

Rising preference for organic bakery products among consumers is motivating

manufacturers to use innovative technology and methods to offer new organic bakery
products with enhanced taste and flavor. Manufacturers are also searching for new methods
to increase the shelf-life of the products. Organic bakery products are being produced using
natural flavors, meanwhile, manufacturers are still researching on natural preservatives that
can keep the organic bakery products fresh for a long time. The concept of organic baking is
also gaining traction among manufacturers. They are emphasizing more on processes and
equipment used in organic baking to ensure its quality till the time it reaches consumers.
According to a new study by Fact. MR, the global organic bakery market is expected to
witness moderate CAGR. The global market for organic bakery is projected to reach US$
11,000.7 million revenue towards 2022 end. Increasing health- consciousness among
consumers is driving the demand for organic bakery products. Manufacturers are increasingly
investing in the research and development of new technologies and techniques for producing
organic and gluten-free bakery products.

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 MARKET ANALYSIS SUMMARY

Organic Bakery is built around the belief that eating a healthy, organic breakfast can have a
significant impact on a person's health and attitude, as well as the environment. Grandmas
also believes that customers can have great tasting organic baked goods if the right attention
is paid to sourcing, recipes, and consistency.
Organic Bakery will launch a first location at Kanpur in civil lines to serve commuters and
build a local brand which can be leveraged into additional locations in the coming years. It
will build a following through advertising, referral marketing, and a loyalty program.

This marketing plan will allow Mr., Shubham Thakur the owner, to focus his marketing
efforts by taking the long view, and looking for results on a daily and weekly basis to see
that the chosen tactics are successful.

MARKET SEGMENTATION

Market segmentation is the market grouping from heterogeneous to homogenous markets

based on geographic, demographic, psychographic factors and consumers‟ behavior. The
purpose of market segmentation is to distribute products to potential markets, to plan the
products for market demand, to determine the effective promotion of specific product, and to
identify the target market.
As explained above, the main market segments are: a) individuals (retail customers)
accounting for more than 90 percent of our sales, and b) local businesses (corporate
customers) which, in terms of purchase orders, typically make larger orders for their
employees and business needs.
Organic bakery, Inc. will focus on its target market, low-to-middle class residents in the Local
Bay area, along with local businesses that are located inside or outside the Local Bay Industrial
Park.

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Typically, according to our own market survey, the target individual customers prefer to
order cakes more than once a month, as an occasional alternative to an expensive and
time-consuming lunch or dinner. People prefer to order cakes and pastry for their near ones,
on their special occasions.

Market segmentation involves grouping together people within your market who share
similar characteristics. This enables your business to target them with products and
messaging to which they can easily relate. A target segment strategy involves conducting
research in your market to define the segmentation parameters, evaluating the potential for
each segment and developing product positioning that appeals to the selected segments.
One of the ways to develop the target segment strategy is to use the STP method. This
includes:

. Segmenting the market: Businesses categorize their market by several different

characteristics, such as demographics or geography.

1. Targeting the customers with the most potential: After conducting research on each
segment, the business determines which segment has the most potential for success.

2. Positioning the offering: The business creates messaging for its offering based on the
segment it is targeting

Segmenting the Market

The first step, segmentation, is critical because this is how businesses divide their
consumer market into groups that share certain qualities. The four ways to segment the
market include:

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 ● Demographic

● Geographic

● Behavioral

● Psychographic

Using Demographic Segmentation

Demographic segmentation is one of the most common ways to target your ideal customer.
Demographic characteristics include:

● Gender
● Race
● Ethnicity
● Nationality
● Sexual orientation
● Family status
● Income
● Occupation

If a business sells graphic T-shirts, it may segment its market by age and gender to better appeal to its
customers. Its shirts for females may have a different shape and sizing chart than the shirts for males. Plus,
the graphics put on the shirts may be categorized by the age group it is targeting. What a millennial would
wear on a graphic T-shirt will likely differ from what someone from Generation Would prefer.

21
 Using Geographic Segmentation

Geographic segmentation is related to where the customer is located. However, it’s not only based on the

actual physical location. Geographic segmentation also includes:

● Climate

● Size of the region in terms of population

● Population density

In today’s global economy, geographic segmentation is becoming a little more difficult since consumers

travel frequently, and they are more familiar with different regions and climates. However, in some cases,

geographic segmentation makes the most sense.

For example, if a small business makes hand-knit thermal socks and gloves, it’s unlikely that it will have

success in warmer climates because there is not a high need for those products. Instead, it can segment its

market by climate to target those who live in colder climates with subzero temperatures.

Using Behavioral Segmentation

The way people behave affects the way they make decisions. This kind of market segmentation

involves looking at:

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 ● How often a person plans on using the product

● How loyal a person is to a particular brand?

● How ready a person is to make a purchase?

● Whether a person has already purchased the product before

For established businesses, segmenting based on behavior has many benefits, especially if they focus on

brand loyalty. Some customers will like a particular aspect of a brand and continue to purchase its products.

This kind of brand loyalty should be nurtured and rewarded. Creating campaigns to target loyal customers

can help businesses to establish brand ambassadors that are highly trusted by the market.

Using Psychographic Segmentation

Lifestyle is the key element on which businesses focus when segmenting based on psychographic

characteristics. This kind of segmentation focuses on:

● Customer attitudes

● Interests, hobbies and activities

● Opinions on social and political issues

● Personal values

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TARGET MARKET (SHARE)

● Market, by Product Type:

● Organic Meat, Poultry & Dairy

● Organic Fruits & Vegetables

● Organic Bread & Bakery

● Organic Beverages

● MARKET TAXONOMY

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WEB PLAN AND IMPLEMENTATION SUMMARY

Organic Bakery website has the dual goal of encouraging visitors to sign up for Organic Bakery e- newsletter
and to visit the physical store. Products cannot be purchased over the website, but a menu with images of all
items will be included as well as promotional items such as t-shirts and baseball caps for sale.

The website's main pages will be:

Menu, including monthly specials

● Location (including map) and hours

● Contact information (with form for questions and comments), including links to follow
organic bakery on Twitter or be a fan on Facebook.

● Jobs page with open positions at Organic Bakery

● Business page with information on the business referral program
Archived newsletters with articles on organic baking topics and
recipes

It is hoped that the growing content about organic baking will increase the website's visibility for related
keywords. Those who link to the archived newsletter articles will also be encouraged to sign up for the
twice monthly newsletter by giving their name and email address. The newsletter will include promotions to
Organic Bakery as well as valuable information for prospects. After receiving enough promotions and
understanding better how serious Organic Bakery is about organic baking, it is hoped that these prospects
will make a point to visit the bakery when they area at Kanpur.

Our strategy is based on delivering a strong customer value proposition in a niche market. We are looking to
offer the Local area and its surrounding areas a new choice in bakery food options.

We are building our marketing infrastructure so that we can eventually reach more customers with the same
bakery food offering. We focus on satisfying the needs of low-to middle class residents and companies
located inside or outside the local area.

We intend to use various forms of marketing communication as an efficient way to reach our target market and
raise their awareness of organic bakery and their bakery service offerings.
25
In addition, organic bakery. will use effective advertising tools to promote the business. The Local Bay
flyer is a common way to advertise in the area. We will also hire people to hold signs near Local Bay
Industrial Park. Door handle flyer promotion can be helpful throughout the Local Bay neighborhoods.

Adequate funding has been accounted for when projecting the promotion expenses. We intend to spend the
marketing dollars in the most cost-effective way. Therefore, many other advertising options will be
evaluated during the project implementation, to make sure that we achieve best results.

26
 RESEARCH METHODOLOGY

Fact.MR is committed to offer unbiased and independent market research solutions to its
clients. Each market report of Fact.MR is compiled after months of exhaustive research. We
bank on a mix of tried-and-tested and innovative research methodologies to offer the most
comprehensive and accurate information. Our main sources of research include: -
• Primary research
• Secondary research
• Trade research
• Focused interviews
• Social media analysis

SWOT ANALYSIS

27
ECONOMIC ANALYSIS

Starting a bakery business is indeed tricky due to the expertise and other things that must be
put in place hence critical economic analysis must be conducted to ensure that the risks and
other threats associated with starting a business from the scratch or investing in a business
idea are mitigated.
Your concern should not be restricted to just acquiring an office facility and equipping. The
facility or hiring the best hands in the industry, you should also be concerned on how to
attract customers to patronize your products, and after all you will not consume them
yourself.

Averagely, setting up a bakery business is usually expensive, but when done on a small scale
with lot of ideas induced into it, the business will pay off in the long run.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities
and also the threats that we are likely going to be exposed to in Kanpur and even in the India
as a whole. Here is a of what we got from the critically conducted SWOT Analysis for Top
Taste Confectionaries.

A systematic plan for opening a bakery business in India:

1. Make a detailed bakery business plan – creating a business plan will help you
streamline the operations, plan the budget distribution as well as plan the future
development of the bakery business. Your business plan should include the below:

1. Summary of the bakery business

2. Business survey
3. Analysis of the bakery industry

28
 4. SWOT analysis
5. Planning operations
6. Financial evaluation
7. Marketing plan

2. Choose the location – Selecting an ideal location is a critical step in the process
as it can potentially make or break your business. Some ideal location spots could be
one of the below:

8. A well-known and reputed market area.

9. High end shopping streets that experience a surge of youngsters or

students flocking the area.

10.Front area shops, ideally on the ground floor for easy accessibility.

11. Area that has a proper drainage facility and 24*7 water supply to main
good hygiene standards.

3. Acquiring all the licenses required for opening a bakery business – once you
have finalized the location for your business, the next step would be to get all the
below licenses:

1. FSSAI license – you can get online on the official FSSAI

website or through an agency that will charge you processing fees.

2. GST Registration – this can be processed with the

assistance of your Chartered Accountant.

29
 3. Local Municipal Corporation’s Health License – this can be
acquired with the help of a local Municipal Health inspector.

4. Fire License – you will acquire this license after the installation
of fire extinguisher cylinders.

4. Hire Manpower – to run a successful bakery business, employing a skilled

workforce is vital because the taste of food and the look and feel of the place are the
only factors that will draw people in. You will need to hire:

1. Head chef

2. Chef De Partie

3. Commas level Chefs

4. Waiters/helpers

5. Cashier

6. Cleaners

7.
5. Purchase equipment – you will need to buy sturdy and long-lasting kitchen

equipment to ensure good quality products and maximum efficiency. Some of these

would be:

1. Oven

2. Deep fridge

3. Cooling fridge

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 4. Gas stove

5. Planetary mixers

6. Crockery and storage utensils

7. Cylinders
8. Working table

6. Install billing software – you will need a POS billing software, which is
equipped with inventory management and features that help manage the shelf life of
perishables.

7. Marketing and branding of the bakery – as is the case with all business, effective
advertising and branding is vital to the success of a bakery business as well.

1. Design your logo, pamphlet and display board

2. Well-designed menu.

8. Finance the business – the most vital step of the business plan will
include getting the required business loan:

Types of Loans –

1. Asset bases loans, wherein you can use assets like inventory, real estate
or machinery as collateral.

2. Term loans, which are useful for long term big investments for a tenure of 1 – 10
years.
3. Working Capital Loans, which have a high interest rate, are
useful for short term requirements and that are payable within a
year.

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Loan providers – you can get an easy bakery business loan from banks or a non-deposit
taking NBFC like Lending kart, since it offers easy SME loans in India after an accurate and
rapid analysis of the credit worthiness of a business with the help of latest technology and
analytical tools.

FINANCIAL FEASIBILITY

According to our conservative estimates, Organic Bakery. Is expected to maintain a healthy

financial position over the next five years. Our company is expected to break even in the
third month of operations.

We also expect to be profitable in the first year of operations, with profits increasing over
the next four years, as we establish and increase our customer base.

Our main concern will be to have sufficient cash on hand to meet our payment obligations
and be prepared for unexpected needs of cash. Our conservative projections indicate that our
business is able to generate positive cash flows and sufficient cash reserves.

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The ratio analysis clearly shows that Organic Bakery. Financial position is expected to remain strong, as
measured by its liquidity, long-term solvency, and cash flow adequacy ratios. The company’s profitability,
as measured by its profitability ratios, is excellent, and will gradually increase over the next five years.
This performance will probably be rewarded by a higher market price when the company decides to go
public.

PRODUCTION FEASIBILITY

The analysis of the market is done for the purpose of identifying potential markets and evaluating market

competition. The market feasibility study evaluates whether and how the proposal will work, just like all

other feasibility studies. It will also assist in identifying issues and potential fixes. A recent intelligence

report titled "Organic Bakery Products Market Outlook to 2026" was released by AMA Research. A

thorough study was assembled to provide the most recent information on the market's critical

characteristics for organic bakery products worldwide. This report offers a thorough overview of key

market elements, including drivers, restraints, historical and current trends, regulatory scenarios, and

technological advancement.

To ascertain future growth prospects in the global market, a thorough analysis of these factors—including

the economic slowdown, local and international reforms, and COVID-19 Impact—was conducted.

Bakery products are widely consumed by people of all ages due to their taste, colour, and easily

digestible nature. Keep abreast of the most recent market trends and shifting dynamics brought on by the

COVID Effect and the global economic slowdown. Maintain a competitive edge by assessing the

business opportunities in the various market segments and emerging regions for organic bakery products.

(Gluten-free, Sugar-free, Low-Calorie, Fortified, Others), Type, and Application (Fresh, Frozen, Dough

& Batter, Instant Mixes, Others), Baking Supplies (Cake & cheesecake, Bread & rolls, Doughnuts &

muffins, Biscuits & cookies, Cupcakes & brownies, Pancakes & waffles, Pies & Tarts, Sandwiches &
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wraps), Ingredients (Organic butter, Organic flour, Organic sugar, Natural Sweeteners), Form (Fresh,

Frozen, Dough & Batter, Instant Mixes, Others), and Sales Channel (Direct Channel, Indirect Channel)

Natural Bakery Goods The core chain structure, engineering process, raw materials, and suppliers form

the basis of the market's analysis of the manufacturing cost structure. The manufacturing facility was

created to meet market demands and advance emerging technologies. Then there are also organic bakery

goods. The reader can assess the most profitable or useful investment areas by looking at market

attractiveness according to country, end-user, and other measures.

The study also includes a special chapter (qualitative) that is intended to highlight problems faced by

industry participants in their supply chain and production cycle. The study's various tables and graphs,

which present overall estimates and sizing, give an impression of the size of COVID's impact.

USP

Bakery products are widely consumed by people of all ages due to their taste, colour, and easily digestible

nature. Organic bakery items are baked foods made from flour that are free of added preservatives and

processed with organic ingredients. The demand for convenience foods, urbanisation, and changing

consumption patterns have all contributed to the market growth for organic bakery products.

● Manufacturers are placing more emphasis on the procedures and tools used in organic baking

● Trending Consumer Lifestyles and Healthy Eating

● Introduction of New Foods with Excellent Nutritional Values

● Urbanization and rapid globalisation

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 ● Changing Consumer Consumption Patterns Toward Organic and Gluten-Free Food Products and Growing Demand for

Ready-to-Eat Food

● Awareness of Organic Certification Among Consumers

● Food Packaging Technology Innovation and Retail Channel Development

● Consumer Busyness Fueling Increase in Online Sales

Without the use of preservatives, synthetic colours, or ingredients derived from genetically modified

organisms, a variety of bakery products are produced using organic ingredients. Organic bakery

ingredients have properties that are good for your health and also up the nutritional value of your baked

goods. The various bakery goods, including bread, biscuits, cookies, pies, muffins, and others, are widely

consumed worldwide. Organic bakery ingredients have emerged as the ideal solution for the organic

production of one of the most popular bakery products as the food landscape changes and moves closer to

organic food.

All ingredients used in baking that are produced organically or naturally occur in sources from plants or

animals are considered organic ingredients. For instance, if wheat flour, a commonly used ingredient in

baking, is extracted from wheat grown organically, then wheat flour can be used to make organic bakery

goods.

The starch, oils, emulsifiers, enzymes, and other ingredients used in baking should all have organic or

natural properties. Additionally, organic baking ingredients are regarded as value-added ingredients

because they provide healthiness without endangering human health, in contrast to chemically produced

baking ingredients.
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REPORT DISCRIPTION

Organic bakery offers products made using organic crops and ingredients that are grown following

sustainable farming method. Growing health concerns among consumers is driving the demand for

organic bakery products made using organic ingredients. Organic bakery product manufacturers are also

focusing on organic baking by using equipment, process and packaging to offer quality product with

longer shelf-life. Manufacturers are also following specific standards set for organic bakery products, in

order to obtain organic certification for their products. This report, published by Fact.MR, provides

in-depth analysis of the global organic bakery market for the forecast period 2017-2022, and offers key

insights about future market direction.

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 CONCLUSION
ORGANIC products give parents a healthy choice when it comes to their baby's nutrition. There are many

benefits of choosing organic foods and products. These include higher levels of antioxidants than

conventional foods as well as less or absence of harmful chemicals and preservatives. An especially

important aspect of organic produce is that it contains fewer pesticides or NO Pesticides at all. This is

important especially for children since babies and toddlers eat more food and drink more water pound for

pound of body weight and they have a less developed immune system when compared to adults. Organic

products have become a popular choice in the last few years. Making an active commitment to choose

healthy alternatives when it comes to eating and nutrition is a great way to commit to a healthier life.

Beyond just choosing healthier food like milk, fruits and vegetables, there is also the question on the safety

of the food and the nutritional value.

How food is grown and cultivated can impact a family's health as well as their environment. Consciousness

of the impact that food and drink can have on a person's health has increased in the past few years and this

has brought organic food to the forefront of healthy choices for both parents and kids alike. Organic food is

also a better choice for the environment as well. Organic farming practices reduce pollution in the air, water,

and soil. It also helps conserve water, reduce soil erosion, and uses less energy. However, not all products

that claim to be organic truly meet strict organic regulations. To be organic, crops must be grown in safe soil

that is free from pesticides and other harmful chemicals. The term organic also refers to the way agricultural

products are grown and processed. There are specific requirements that must be met in order to be able to

label a product as organic. With such strict guidelines on organic production, it’s important to check.

REFERENCES

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www.whatech.com/

www.fortunebusinessinsights.com/

www.persistencemarketresearch.com/

www.thebusinessresearchcompany.com

www.factmr.com

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