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Presented By

Prolay Ray & Arijit Datta

04/08/23

Distribution Strategy For Growth of Bakery Business In Locality.

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INTRODUCTION

• A bakery is an establishment which produces or/and sells bread, pastries, cakes, biscuits, cookies, etc.

• Baking is the technique of prolonged cooking of food by dry heat acting by convections, and not by radiation, normally in an oven, but also in hot ashes, or on hot stones.

• It is primarily used for the preparation of bread, cakes, pastries and pies, tarts, quiches, and cookies. Such items are sometimes referred to as "baked goods," and are sold at a bakery.

• A person who prepares baked goods as a profession is called a

Baker. 04/08/23

A. A. Existing Bakery Business In India & PotentialExisting Bakery Business In India & Potential

The Indian bakery industry is the largest among the processed food industries. The current estimated market is about Rs 3,295 crore and is expected to cross Rs 4,308 crore by 2012.

At present, the bread & biscuit industry accounts for 82% of the total bakery products in the country.

At present, the annual production of bakery products which include bread, biscuits, pastries, cakes, buns and rusk, most of which are in the unorganised sector, is estimated to be in excess of 3 million tonnes.

The production of bread and biscuits in the country both in the organised and unorganised sectors is estimated to be around 2.6 million tonnes. 304/08/23

Of the total production of bread and biscuits, only 35% is produced in the organised sector and the remaining is manufactured in the unorganised sector.

Broadly, the bakery market is divided into the rural market and the urban market. The market share is about 22.5% (rural) and 77.5% (urban) in the country.

Further, the market can be segmented into cakes, pastries and unpackaged biscuits. and valued at Rs136 crore and Rs 1088 crore respectively 404/08/23

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Per capita consumption of 1.Bread - 3kg/year

2.Biscuit - 1kg/year

55% of biscuit is consumed by rural area.

37% of consumption of bakery item is by people with monthly income of Rs.750 and below.

At present 70% of total bakery products is prepared by small and family scale units.

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Bakery ProductsBakery ProductsThe market for bakery industry is valued at Rs. 69

billion. The two major bakery products, i.e. breads and biscuits hold for about 82 % of the market share.Product coverageBread

BiscuitsPastriesCakesConfectionary products

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BB. Existing Distribution System Of Local Bakery. Existing Distribution System Of Local Bakery

Manufacture (Previous day 5-12 pm)

Wholesaler (3-4 am)

Retailer (5 am)

Customer( Means Every Small Tea shop Owner)

End Consumer

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During Production TimeDuring Production Time

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C. Cross Docking In The Local BakeryCross Docking In The Local Bakery

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D. D. Horizontal & Vertical ConflictsHorizontal & Vertical ConflictsChannel conflict occurs when one member’s actions prevent

another channel from achieving its goal, which confirms the inherent aspect of interdependence relationships in distribution channel.

Horizontal Conflict:Horizontal conflicts are the conflicts between the channel members at the same level, i.e. two or more retailers, two or more franchisees etc. These conflicts can offer some positive benefits to the consumers. Competition or a price war between two dealers or retailers can be in favor of the consumers.

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Reasons behind horizontal conflicts Reasons behind horizontal conflicts

Price-off by one dealer / retailer can attract more customers of other retailers.

Aggressive advertising and pricing by one dealer can affect business of other dealers.

Extra service offered by one dealer / retailer can attract customers of others.

Crossing the assigned territory and selling in other dealers / retailers / franchises area.

Unethical practices or malpractices of one dealer or retailer can affect other and spoil the brand image.

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Vertical conflictsVertical conflicts occur due to the differences in goals and

objectives, misunderstandings, and mainly due to the poor communication

Lack of role clarity and over dependence on the manufacturers. For e.g. Today the large retailers dominate the market and dictate the terms. Hence there are often conflicts between these giant retailers and the manufacturers.

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Mechanism Of Resolution For Conflicts

Local Customers are the boss.

The Reatilers don’t go to the others retailers option.

Very often they violet the rule.

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E. DDI-CDI Model

I (Prolay) live in Rural Area,I asked so many people that What Type Of Food They Eat When they go to their Work many of People answer like this,

Panta Vat,alu vaja,kacha lonka.Cha,Muri.Chire.Muri.I asked Them Why? Many of People answer Like This,”Babu amara

Gorib lok,kaj kore khate hy omn 4-5 takar pawruti khaya amader saradin kaj kora somvob hya otha na,olpo vat khaleo ta onek ta pet a thake,r babu oto sokale amara jokhn ber hoe bari thake tokhn ai gulo amader ai dike paoyao jay na”

So I have understand that in rural are the Distance,Time,and Money is Matter.

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F. Packaging & BrandingPackaging should provide the correct environmental conditions for food

starting from the time food is packed through to its consumption. A good package should therefore perform the following functions:

·it should provide a barrier against dirt and other contaminants thus keeping the product clean

·it should prevent losses. For example, packages should be securely closed to prevent leakage

·it should protect food against physical and chemical damage. For example the harmful effects of air, light, insects, and rodents. Each product will have its own needs

· the package design should provide protection and convenience in handling and transport during distribution and marketing

·it should help the customers to identify the food and instruct them how to use it correctly

·it should persuade the consumer to purchase the food.

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G. Reverse Logististicks to Overcome

They Sold The Pawruti And Biskit To The Chop Shop.

They sold to the Small Restaurants.They Use as their Fuel.They Sold to the Fisher Man.They Also Made Toste Biskit From That

Pawruti.

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WEAKNESSLack of financial support.

High cost of equipment.

Lack of availability of trained persons.

Low shelf life of bakery products.

Irregularity in power supply.

Very less organized bakery firm at big level so less business professional .

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PROSPECTS

Increasing dependence on bakery products.

Use of sophisticated and modern machineries which increases bakery efficiency.

High quality packaging material increases shelf life of product.

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CONCLUSSIONDue to changing consumption pattern there is lot

of scope for bakery industry.

Due to modernization and industrialization demand for bakery has increased.

Good opportunity to emerge as a national brand.

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