ECONOMICS PROJECTREPORT

BUISNESS AREA : ROYAL BAKERS, PERUMBAVOOR

PROJECT TEAM ARUN SUNNY M ELSE MARIA JOSE SRUTHI LOBO

INTRODUCTION

Bakery industry is of enormous significance for India's development because of the vital linkages and synergies it promotes between the two pillars of our economy, industry and agriculture. Fast growth in the food processing sector and simultaneous improvement in the development of value chain are also of great importance to achieve favorable terms of trade for Indian agriculture both in the domestic and the international markets. Today's consumers' access and share information to an ever-increasing degree-while demanding a more personalized and interactive retail relationship. The bakery and beverage sector is highly competitive because of ever changing consumer preferences and the need for marketing differentiation.The bakery Industry in India is on an assured track of growth and profitability. It is expected to attract phenomenal investment in capital, human, technological and financial areas. The total bakery and sweets production of India is estimated to double in the next ten years. Hence there is an opportunity for large investments in bakery and food processing technologies, skills and equipment.Bakery industry is a highly profit making and a competitive business sector. So the entire study of bakery retail will helps to understand about the various factors that can lead to profit. Profit of the business mainly depends upon the need and satisfaction of the consumers. . As management students an over view of this sector had helped us to identifying the various factors to start a business. The aim of this project is also to get knowledge about their factors. This project report is based on our visits in Royal Bakers located in Perumbavoor, Ernakulam. Which is aleading bakery in Perumbavoor.

PROFILE OF THE RETAIL SHOP Royal Bakery is the guiding Bakery located in the heart of the town known as Perumbavoor. The place Perumbavoor is famous as the economic capital of Ernakulam district. The shop is owned by Mr. Shamon. He commenced this shop in the year 2004. The front area of the shop is dedicated for Parking and rear side of the shop is assigned for cafeteria.

BUSINESS MODEL PRODUCTThey are provided vegetarian and non-vegetarian food and nourish food. They areproviding different food dishes. The objective of hotel is to provide best food and best quality to its customer .They provided following food dishes: Shake Ice Cream Continental Fast food Tea, Coffee. Juice Sweet items

SERVICES PROFILE

A service is the most important part and major key for this success of any unit. Without a service, marketing cannot be imagined. Service is one tool in the hands of the marketing through which it gives life to all marketing program. So, the main responsibility of the marketing would be to know its service well and to take proper service decision.

PROMOTION MIX

The marketing mix activates or product planning and distribution are performed mainly with in business or between a business and the member of its distribution channels. However, though its promotional activities, a firm communicates directly with potential customers and as well we see, it is not a simple process. Basically, promotion is a attempt to influence, and more specifically promotion is an element in an organization marketing mix that serves to inform, persuade and remind the market of the product and the organization selling it, in hopes of influencing the recipient s feeling, belief orbehavior. Promotion consists of those activities that are designed to bring a company goods and services to the favorable attention of customer There are four forms of promotion are as follows.

Advertising Sales Promotion Publicity And Public Relation The Royal Bakery makes a promotion activity. So they can increase the volume of sales and earning maximum profit.

PRICING POLICY

The prices of the product are depend upon the expenses which is made for making product. The expenses such as the cost of raw material, cost of over heads, sector overheads, administrative overheads, margin ofprofit etc .Pricing decision has strategic importance in any enterprise. It means decision of determining price of a product. Price can be defined as the exchange value of the goods or services in the terms of money. The price of products should be determined in such a matter so as to offer a reasonable amount of profit to the manufacturer, a reasonable remuneration to middle man and the maximum satisfaction to the consumers .Price is an important element in the marketing mix. The policy is only factorthat generate revenue other factor are expense. Price is only revenue generate element. So profits depend upon the price. While deciding the price of product, following factors are consider as cost:

Cost of Vegetables, Meat, Fruits and other cooking material Wages paid Cooking Expanses Electricity expenses Estimating cost Other cost

COMPETITORS Competition is at the peak in this area as the area is thick packed with mobile stores. So the proprietor shows sincere interest in customer service in order to sustain and develop his business.The main competitors of Royal Bakery are: Kumar Bakery. Amal Bakery Shake World Royal Bakery faces moderate level of competition from all the above mention stores. But Royal Bakery manage to make sales higher than its competitors since the location of this shop is convenient to the customers.

CAPITAL STRUCTUREInitial Investment : 20 ,00,000Fixed Cost 5,00,000Land & place owned by the restaurantAchieved breakeven point after 3 years of commencing business.

COSTS INCURRED Per MonthItemsCostQUANTITY

Total

Purchase Cost600000650000

Salary200005100000

Electricity2000020000

Total751000

Average monthly cost - 7, 50,000Average monthly Income - 8,00,000Average profit - 50000

Break Event Point Analysis YearBEP %UnitSalesFCTC

00500000500000

200425%12500500000500000687500

200535%17500700000500000762560

200640%20000800000500000800000

SWOT STRENGTH The shop doesnt compromise on the quality of the products sold. The location of the shop is heart of Perumbavoor which is an added advantage to the shop. Physical presence of the proprietor in the shop throughout the working hours. Internal personal relationship is very nice between staff and owner.

WEAKNESS Lack of concentration on advertisement. Location is in the centre of the city has high traffic Scarcity of Water

OPPORTUNITY Expand the floor area of the shop. Royal Bakery has good opportunity to be converted in HOTEL because it is situated right in the heart of the city.

THREATS

Products brand equity. Increase in competitors.

SUGESSTIONS FOR IMPROVEMENT Analysis of SWOT analysis brings out some suggestions for improvement. They are: Increase the floor area. Concentrate more on advertisement. The major problem faced by customers is parking so Restaurant must make some arrangement for parking. The Restaurant should provide home delivery so that the customers for distance place can also attracted.

CONCLUSION

I got a whole information regarding personnel, financial and marketing. During our study, I marked that the Restaurant is best in management, in working in providing facilities to the workers and provide food facility to the people .I have come to the conclusion that this sector has an efficient in financial and marketing process. It possesses proper finance. Hence, this sectorhas a many scope for expansion and development. The food of this sector is very good in test. The Name is Royal Bakery; Customers would like to visit often to this Restaurant. The staff is interested to improve the foodproduct as per changing and test of the customers.7