StratiNnovva -2013

Team : We-InnovatorsAnup Pawaskar pawaskaranup@gmail.com

Gayatri Alat gayatri.alat17@gmail.com Dhanvi Kapadia dhanvi.kapadia@gmail.com

College: Welingkar Institute of Management, Mumbai

CURRENT MARKET SCENARIO-BAKERY INDUSTRY

MARKET SIZE AND SEGMENTS• Rs. 3,295 Crores (2011) • Growing at 8% annually• Biscuits and bread are the major bakery product and they account for 78%

of all bakery production

NATURE OF INDUSTRY• About 65% belongs to the unorganized sector• Dominated by the small-scale sector with an estimated 50,000 small and

medium-size producers• Few major players in the organized sector

CONSUMPTION PATTERN• The per capita consumption of bakery products is low(1.75 kg for bread and

900gms for biscuits) • However Bakery products are no longer viewed as a luxury tea-time snack

but essential daily food component for an average Indian household • Organized players trying to shift focus towards health conscious products

Industry Segments

% in Unorganised Sector

Biscuits 50%Bread 85%

Pastries, Cakes, Buns and Rusks

90%

Source: niir.org & http://mofpi.nic.in

BAKERY INDUSTRY

ORGANISED

Large Mfg.

(Parle and Brittania)

Medium Mfg.

(Cremica, Baker Street,

Monginis)

Small Mfg.

(Dalima, Super

Bakers , etc)

UNORGANISED

Small Bakery Units (Kayani Bakery,

GayLords etc)

Cottage and

Household Type Mfg.

Kirana Stores

(Mom-n-pop

stores)

INDUSTRY STRUCTURE

MARKETING STRATEGIES USED IN THE UNORGANISED SECTOR

Local and Personalised Marketing used

Value proposition offered is freshly baked product offered hot from the oven

Once that local bakery becomes popular, it becomes a brand in itself and people from all over the country flock to that place. Some such outlets usually do not have branches and are stand alone in nature

Offers low price range thereby tapping the middle and lower class. Premium segments also frequent here

They know their customers well due to small scale of operations and bargain when orders are in bulk (Kitty Parties or get together)

Discounts and offers are put up on festive occasions

Home Delivery in specific cases (Bulk Orders and loyal customers)

STDP ANALYSIS FOR BAKER STREET SEGMENTA

TION

DEMOGRAPHIC• M

ales and Females

• Adults and Couples of 25-49 years, 50-60+ years

• Educated Upper Middle Class and Middle Class (SEC: A1,A2,A3,B1 and B2)

GEOGRAPHIC• N

ational Market: Metros, Tier 1 and Tier 2 cities in Western, Southern and Northern India

• International Markets: Countries with significant population of South Asians

LIFESTLYLE• H

ave dry snacks as an accompaniment with tea /coffee

• Seek value in food products

BEHAVIORAL• Q

uality and nutrition conscious

• Wont compromise on health by buying loose unbranded snacks

• Consume snacks on the go

TARGE

TING

GENDER• M

ales & Females

AGE• A

ge group 25-49 years

PRIMARY TARGET (T1)Married, Middle aged Woman and members of her family; Working as well as non working SECONDARY TARGET (T2)• U

nmarried well-to-do professionals(males & females) with busy lifestyles

• Students living in hostels, dorms in India and abroad who miss home baked Indian products like khari, nankhatai, etc.

POSITIONING &

DIFFERENTITATION

Baker Street to be positioned as a brand “that provides wide variety of bakery products satisfying to both health as well as indulgence seekers”POINTS OF PARITY• P

roper packaging

• Freshness

• Use of quality ingredients like Wheat

• Use of low calorie sweetener or sugar, additives.

POINTS OF DIFFERENCE• U

nmatched variety in terms of baked breakfast products, unique flavors and tailor made products

• Specialized products like 100% whole wheat biscuits ,100% vegetarian and Jain snacks free from animal fat

B2B, B2C AND GLOBAL DIVERSIFICATION STRATEGY FOR NEXT 3 YEARS

PRODUCT LINE EXPANSION• Following a Concentric

diversification strategy by introducing new products like:• Jeera Butter• Plum cakes• Pizza base• Slice Bread• Potato Wafers• Banana Chips• Donuts• Khakhras

• Maximising the potential of sub brand, NutriBite

• A special line of low sugar biscuits, khari, toast and nankhatai especially for diabetics

• New GF (gluten free) breakfast products for gluten intolerant people

DOMESTIC EXPANSION• Enhancing distribution network through presence in Modern Kiraana (e.g Chedda Stores in Matunga, Vijay Stores in Santacruz East etc.)

• Establishing Baker Street standalone stores at strategic locations through franchise model to gain control over selling process and build stronger relationships with customers

• Setting up kiosks in malls and major transit depots

B2B STRATEGY• Taking the product mobile by creating rapport with SMEs, small IT firms and/or hospitals

• Standalone store in the cafeteria as pick-me-ups for tired employees who will appreciate the convenience of purchasing without leaving their workplace

• Association with health camps to improve product visibility

• Customized Corporate Gifting

EXPORT STRATEGY • Exports according to the foreign market by tailoring the products in the form of ‘Multiseed Cookies, Mini Bites, Caramelised Biscuits, etc’

• Focusing on Health and wellness aspect in North America & European market

• Targeting the largest gluten-free (GF) bakery market in Western Europe. GF is now recognized as a healthy food choice, rather than a necessary dietary requirement for sufferers of coeliac disease

MARKETING AND SALES PROMOTION STRATEGIES

• Improving Brand AwarenessPamphlets of the print ad to be distributed as an insert in newspaper (regional and English) in few selective strategic localities (Mumbai, Pune, Delhi) having high concentration of our Target group

• Bringing Baker Street goods in consumers’ consideration setA week long In-store sampling of Baker Street products at modern trade outlets, where the products will be kept in open-dishes near the cash counter for consumers to try the taste first hand

• Educating on the nutrition componentHealth camps and blood donation drives to communicate the fact that bakery products are an important source of nutrients viz. energy, protein, iron, calcium and several vitamins. Commercial bread and biscuits contain around 7.5% to 7.8% protein respectively

MARKETING AND SALES PROMOTION STRATEGIES• Position its utility as an on-the-go snack and as an

essential daily food component Baked snacks are easy to use during travel or at home because of its availability in variety of pack sizes. They also offer substantial energy and must be used as a diet supplement for adults

• Packaging Products like Khari, Naan-Khatai and Cake rusk to be sold in see-through PET trays

Similarly a small, transparent plastic window on the boxes of other products

This will enable consumers to see the product-texture, color and superior quality

• PricingAdopting a Value based-yet-competitive pricing for products a few price points above bakery products from unorganized players

• In order to emerge as a national brand and compete with a lot of unorganized players, Baker Street needs to understand the benefits sought by the TG (defined earlier) and build the brand on the value proposition it offers: Health, Hygiene and Happiness

• Branding can be done in the simplest form like:• Unique Baker Street Carry bag which is not only eco friendly but also bearing the

logo which stays with the customer for a long time • Mobile Vans bearing the logo moving around the city to promote the products and

give free trials for taste and eventually make sales

• The Customer Based Brand Equity Pyramid will help Bakers Street to carry out the strategies in the coming years

BRANDING STRATEGY

BRANDING STRATEGY

Salience• First choice for professional bakery

products in India• Consistent branding elements: Logo

and recall associated with the brand

Performance• Consistency in product line across

branches• Quality Ingredients• Fresh baked products • Also served hot fresh from the ovens

at appropriate mfg hours

Imagery• Safe, Hygienic products • Looks after health conscious

and diseased people as well• Unique product offering

through, ‘Nutribite’

Judgments• Excellent quality of finished product• Building credibility is crucial and will

happen over time after gaining loyal customers

Feelings• Guilt free purchase as products offered at

competitive price with quality • Good accompaniment with tea/coffee

thereby satisfying of wants

Resonance• Loyal customers from future

generations as well• Positive word of mouth

COMMUNICATION STRATEGY • Creating a professionally managed Facebook Page by

posting mouth-watering pictures of the products and the recent schemes launched

• Breaking video ads on YouTube and Facebook page initially

• Graduating to Print ads (shown alongside) in Leading English and Local Dailies and magazines with information provided about which retail outlets these products are available

• Direct Marketing initiatives to the selected B2B customers based on their recency, frequency and monetary value

• An Interactive website where bulk/party orders can be ordered online well in advance followed by Cash On Delivery

• Localised SMS Marketing through Gupshup .com• Listing Baker-Street on food-review websites like

Zomato.com, burrp.com • Incentivising retailers to improve shelf space presence

ESTIMATED MARKETING BUDGET

CAMPAIGN METHOD SAMPLING FRAME COST ESTIMATE

Awareness Campaign Pamplets, flyers,street plays Educational institutes 1,00,000

Facebook, YouTube, PR Interactive media 1,50,000

Trade fairs specific to B2B Rentals, promotion B2B 6,00,000

Sampling at Health camps 15 Blood Donation camps in 5 cities

Assuming 50 packets of khari and toast consumed per event 5,00,000

Print ad In 2 major English and 2 local dailies in 3 cities

Depending on TG newspaper or health magazines

12,50,000

Malls, kiosks, standees Product and promotion cost Large TG 5,00,000

Sales(trade) promotion Retailer incentives 1 pack free over dozen SKU 10,00,000

TOTAL ESTIMATED COST Rs. 41,00,000

ORGANIZATIONAL STRUCTUREORGANIZATION STRUCTURE• The proposed divisional structure is shown in adjoining

diagram• Each Division will be handled by a Divisional manager

heading the various products and its marketing, sales and distribution activity

• The product line division would be divided into 3 parts 1)Traditional 2)Low-Sugar and 3)Gluten Free

FRANCHISES FOR STANDALONE BAKER STREET STORESThe franchisees will operate under the broad umbrella of Sarjena Foods Pvt. Ltd. (SFPL)The requirements would be: • 200 sq.ft of floor-space• 4 to 7 employees per shop• Marketing and Advertising to be controlled by Sarjena Foods

Pvt. Ltd• Franchisee would need to invest in shop interiors,

equipments, cooling counters, etc. as per quality and uniformity requirements specified by SFPL

• Typically, the set-up cost of an outlet would be in the range of Rs 7 to 10 lakhs

TOP MANAGEMENT

B2B Division

B2C Retail Division

Modern Retail

Super/Hyper

Market

Malls

Campaign Management

Export DivisionTOP MANAGEMENT

Franchise DivisionStand Alone Stores (Location

Decision, Controlling and Management)

Thank You