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Pai Foods Bakery Products, Udyambag, Belgaum

EXECUTIVE SUMMARY

The main objective of any organization is to generate sales, which will give the company

the revenue it needs to survive, growth and compete at market place. Sales can only be

achieved when the products brand position is favourable in customers mind. Different

companies position their brand on different bases, which is unique from its competitors.

Difference between how company wants to position its brand and how customers

perceive the brand will determine the success story of the company. Hence this project

deals with Brand Positioning of Pai Foods Bakery Products at Belgaum city and its

impact on sales.

Objectives of the study:

To know whether there is brand awareness of bakery products among Belgaum

customers

To understand the brand positioning of Pai foods bakery products in Belgaum

city.

To understand key factors that retailer consider most important to sell bakery

products.

To know Strengths, weaknesses, opportunities and threat of Pai foods Bakery

products.

To help Pai foods for implementing appropriate techniques for brand positioning

of their bakery products.

Belgaum Institute of Management Studies(MBA)

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INTRODUCTION

The worlds bakery market has become increasingly industrial in recent times, with

developed countries seeing a steady swing away from artisanal bakers and towards more

wrapped and specialty bread, cakes and biscuits, which are now an important fixture in

modern retail outlets. As a result of this, many industrial bakery firms now feature

prominently within the global food industry and the largest of them generate bakery sales

of as much as USD 5 bn a year.

The largest single bakery company in the world is Japans Yamazaki Baking, which is a

dominant force in that countrys bread market and which showed sales of USD 5.12bn in

2006. Kraft Foods Nabisco biscuit business is in a close second with global sales of USD

5.02bn, while Mexicos Grupo Bimbo, which is a market leader in many Latin American

countries as well as a major player in the US, takes third place with sales of USD 4.5bn.

Top bread brands of America includes Bakers Inn bread, Wonder bread, Home pridebread, Butternut bread

The estimate made by the Ministry of Food Processing Industries India (1998), the total

market of bakery product, bread and biscuit is estimated at 1.5mn ton and 1.1mn ton

respectively. The cake market is estimated at 0.4mn ton. The organized segment of the

biscuit market is estimated to be 0.44mn tons whereas the unorganized sector accounts

for the balance 0.66mn tons. Bread market is estimated to be growing at around 7% pa in

volume terms, whereas the biscuit market in the recent years has witnessed a little higher

growth at around 8-10% pa. Within the biscuit category, cream and specialty biscuits are


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growing at faster pace at 20% pa, while the popular segment is growing. Bread and

biscuits account for 82 % of Indian bakery industry.

The annual production of bakery products which includes bread, biscuits, pastries, cakes,

buns, rusk etc was estimated as 50 lakh tonnes in 2004-05 with estimated value of Rs 69

billion. The two major bakery industries, viz., bread and biscuit account for about 82 per

cent of the total bakery products. The organized sector has a market share of 45 per cent

and the balance 55 per cent is with the unorganized sector in the baked products, as per a

recent FICCI report.

The large organized sector players who are prominent in the high- and medium-price

segments include Britannia, Modern Industries Ltd. Brands like Modem and Britannia are

major players in the bread market and together they account for 90 per cent of the

organized bread market. Local manufacturers with numerous local brands cater to

populous segment and contribute considerably in the bread segment. Low margins, high

level of fragmentation are the main features in the bakery industry. Volumes, brand

loyalty and strong distribution networks are the main drivers of growth. Organized bread

industry is facing problems due to low margins of profit due to escalating prices of major

raw materials, particularly wheat flour, vegetable oil, sugar, milk.

In the biscuits industry, the large organised sector players who are prominent in the high-

and medium-price segments include Britannia, Parle and Bakeman. The major brands of

biscuits are Britannia, Parle, Bakeman, Priya Gold, Elite, Cremica, Dukes, Anupam,

Horlicks.


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LITERATURE REVIEW

Let us first define the two terms brand and positioning.A brand is a product, but one that

adds other dimensions that differentiates it in some way from other products designed to

satisfy the same need. Positioning is a process that influences potential customers

overall perception of a brand, product line, or organization in general.

Brand positioning is at the heart of marketing strategy. Philips Kotler defines brand

positioning as the act of designing the companys offer and image so that it occupies a

distinct and valued place in the target customers minds. Thus, positioning, as the name

implies, involves finding the proper location in the minds of a group of consumers or

market segment so that they think about a product in the right or desired way.

Positioning is all about identifying the optimal location of a brand and its competitors in

the minds of consumers to maximize potential benefit to the firm. A good brand

positioning helps to guide marketing strategy by clarifying what a brand is all about, how

it is unique and how it is similar to competitive brands, and why consumers should

purchase and use the brand.

Positioning bases that a firm adopts

1. Attribute

2. Price & quality

3. Use or applications

4. Emotion

5. Product attribute/benefit


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6. Product class

7. Competitors

Brands can be positioned against competing brands on a perceptual map. A perceptual

map defines the market in terms of the way buyers perceive key characteristics of

competing products.


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The basic perceptual map that buyers use maps products in terms of their price and

quality, is given below w:


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machines and equipments, but things are changing for better technology and increased

automation.

We can make Indian bakery products more competitive by registering our self with

internationally recognized certifications like HACCP which ensure food safety, may be a

good starting point for our products to establish credibility. The hurdles faced by Indian

bakery manufacturers are with regard to organized players who are plagued by the small

bakeries, who resort to unethical practices. But, things will change as people are

becoming more and more quality and health conscious and therefore "Brand conscious.

"Conventionally, a product and a brand have been synonymous. Today many top bakery

manufacturing want their product to be recognized as a unique brand different for its

competitors. They want to position they brand in the customers mind as unique in some

way or the other. For example Britannia Industries Ltd plans to expand the scope of its

brands by launching new products under them. According to Ms Richa Arora, general

manager, head-marketing & innovation, Britannia Industries Ltd, this will liberate the

existing brands from their conventional image.

"Conventionally, a product and a brand have been synonymous. For instance, a glucose

biscuit brand means a rectangular glucose biscuit maker. Why should this be so? We

want to expand this conventional association of brand and product to include new items,"

she told newspersons.

KARNATAKA BAKERIES ON EXPANSION MODE


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Bakeries across Karnataka are on a massive expansion drive to cater to the demand of the

clients. The present trend indicates a growing interest in the consumption of a variety of

cakes, breads and other bakery products. Hence, bakeries are on a major drive to fulfill

the growing needs and increase sales by way of novel range of products which are not

only targeted at health conscious customers but also the youth who form at least 55 per

cent of the clientele. According to a section of the bakeries in the state, Bangalore has

always been known for its range of bakery products. This is attributed to the erstwhile

British culture, which still reigns in many parts of the city including Cantonment areas.

This has resulted in many well-known nostalgic bakeries where massive expansion plans

are on the anvil. On an average the investments in bakeries in Bangalore is estimated to

range between Rs 50,000 to Rs 5 lakh which include latest machines and modernization

unit. There is a domination of bakeries in the city, informed a section of those in the

business. There are over 1,200 Iyengar bakeries in the city to cater to the vegetarian

population apart from 300 bakeries that offer both veg and non-veg items.

Surya Bakery, a 15-year-old business venture has now chalked out plans for a major

modernization for which investments is estimated around Rs 5 lakh for purchase of

equipments like dough dividers, puff sheeter and bread moulders. The bakery is working

out modalities to procure them either from Singapore or Taiwan.

Going by the requirement of the young and up-market crowd from the information


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technology and business process outsourcing sector, the Surya Bakery has a novel plan to

start a 'Show Baking and Caf'. This concept will allow the customers to view the product

being prepared. It will give them glimpses of the hygienic standards followed at the unit

and the contents that go into the product. This way the bakery will be able to increase the

clientele because quality and safety of items being consumed is becoming a critical issue,

stated Raghu, managing partner, Surya Bakery.

Over the five years, the bakery sector has been registering a growth rate of 80 per cent. A

bakery product has become an indispensable item in a family meal. This is because

bakery items are instant and have a shelf life. It is ideal for a mid-morning or an early

evening snack, pointed out bakery owners.

Another demand for bakery items is the range. For instance, Surya stocks 110 items

which includes cakes, death by chocolate, chocolate excess to name a few tarts, 40 types

of biscuits which include ragi and cake rusks which are a hit. Pastries like Soft Perlin

which is peanut-based are the new items which are fast moving. In addition, the bakery

has a capacity to manufacture 800 loaves of breads and 1,000 pav breads which are most

sought after because the breads under goes 'proofing'. It is kept in a 'proving' chamber to

control humidity irrespective of the seasons which helps gaining the colour.

Saturday, June 10, 2006

MV Chandrashekar, Bangalore

MANPOWER PROBLEMS IN BAKERIES IN KARNATAKA

Across Karnataka, bakeries are facing a serious manpower crunch. This is because there

are few takers among the hotel management graduates in the state where these candidates


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prefer to take up jobs at the star category hotels. There is a major vacuum in the baking

industry for skilled workforce, pointed out Murali, Excelsior Bakery, of the British Era.

So, most of the bakeries select school drop outs and train them for a period of three to

five years before they actually become bakers, he added.

In this scenario, the bakeries like Mayura, Surya, Iyengar Bakeries and others opined that

there should be a one or two year diploma course in baking. Once the candidates pass out

from here, the bakeries across the State could mould them for the industry requirements

and hire them.

Another issue is that many bakeries in the state still had a traditional image and this was a

major deterrent to attract the workforce. Many of the candidates who had an inclination

for bakery production were reluctant to work at such traditional outlets which though

extremely popular for their products still appeared conventional in appearance. This

situation for shortage of personnel has led to massive modernisation among bakeries

where much of the equipment invested are mechanised and bakeries could be dependent

on non-skilled workforce. There are also some bakeries which are less dependent on

manpower and more on machine power, stated the sources.

BAKERY INDUSTRY: CHALLENGES & OPPORTUNITIES

In India till recent year among the bakery products only bread was identified by the

common public and that too it was considered as sickman's diet. In the past four decades

the trend set up in this industry has attained an evaluation gradually and steadily in all


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sectors. To brief in simple terminology, in 1970 consumption of bread as regular

breakfast item became popular which in turn helped the development of bread industry

slowly. In 1980 a great awareness emerged among the public about catering science, its

need and importance. Technology and interest brought in innovations in the production of

new bakery products and new technocrats evolved in the industry. In 1990 a rapid growth

of catering institutes all over the country helped the bakery sector to equip the industry

with qualified workers and qualified entrepreneurs.

Compared with restaurant, machinery investment is more for baker and it requires

qualified personnel both in the production as well as in administration. It is a well known

fact that when compared to all major staple foods consumed in different states, it is wheat

which is highly nutritive, cost effective and instantly available in wide varieties.

Nowadays, in metropolitan cities life style has become a mechanical and people prefer

food readily available for consumption without much time for preparation. Consumption

of wheat products paves a way for healthy generation.

When analyzed in depth it is clear that the bakery industry if duly encouraged by the

government will reach great heights both technologically and economically bringing in

positive results. Bakery industry is mainly classified into two categories i.e. organised

and unorganised. The organised units function in the urban and metropolitan cities

whereas the unorganised function in the suburban and rural areas. In the organised sector

they have shifted from firewood oven to diesel-fired oven thus has become a pollution

free eco friendly industry.


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In India right now bakery industry is booming next to information technology. Presently

all the IT offices such as BPO, call centres, data entry centres has started supplying food

in the work spot as it has become a necessity since their work timings and schedule varies

according to the project undertaken. Bakery products which use maida as a major raw

material for most of its varieties is highly preferable as they are highly nutritive, easily

digestible and readily available in wide choice preferred by many.

To help the growth of bakery industry the government should help the bakers to receive

the raw material maida in a nominal price. Wheat price is being hiked very frequently

which must be controlled to avoid difficulties in producing the bakery products at

nominal rates without much fluctuation in the sale price. The government should reduce

the import duties for bakery machineries, its preservatives and for raw materials. It will

be very helpful if tax is abolished for bread in all states. If bread is included in the Noon

Meal Scheme for children it will be very beneficial for the children and also to the

industry.

The latest growth in the number of catering colleges should be taken into consideration

carefully. Though the growth is encouraging it is essential to see whether the institute is

being run with proper infrastructure, lab and training centre. The evaluation committee of

experts should give recognition to the institutes after thorough inspection, unbiased

scrutinisation and evaluation of the institute. To develop the bakery industry the

government should encourage the bakers to know the latest trends from western countries


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and organize technology transfer programmes, by sponsoring or giving subsidized travel

tickets to visit Bakery China Exhibition and IBA-Germany. Such programmes will help

in the modernization of the industry in our country and produce innovative products.

The present day consumer looks for new bakery products, better appeal, taste and

convenience from bakery foods. With a population of 1 billion plus, India has the largest

middle-income consumers thus offers abundance Opportunities in this sector

This is a new platform to baker and who needs to update his information, technology,

products and services to meet the changing needs of the Indian consumer. To meet the

new challenges, the Govt. of India encourages the Small and Medium Enterprises with

very attractive financing schemes, to modernize and up-grade their units. This has opened

up opportunities not only to SMEs but also to those in the bakery trade to supply the new

technologies

Bakery industry in India is probably the largest among the processed food industries with

the presence of around 78,000 bakeries, production of which has been increasing steadily

at 15 per cent p.a. in the country. Though it is very difficult to estimate the size of the

industry, it is said to be worth Rs 15,000 crores.

But, things will change due to changes in the Indian economy and also due to changing

lifestyle of the people. There will be growth due to higher disposable incomes and also


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increased tendency of "eating out". Also, entry of large organized Indian as well as

foreign players in the Indian market will make it more high profile and shift the focus to

organized sector from the unorganized one.

Saturday, June 10, 2006

S Anburajan


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STATEMENT OF PROBLEM

Brand Positioning of Pai Foods bakery products at Belgaum city and its impact on

sales.

MANAGEMENT PROBLEM

After having a detailed discussion with Managing Director Mr. Venkatesh Pai he express

that We do not know how people perceive our bakery products and what are the

strengths, weakness, opportunity and threat of Pai foods bakery products at Belgaum.

RESEARCH PROBLEM

Hence based on the above mentioned management problem the research problem is to

study and understand brand positioning of Pai foods bakery products and its impact on

sales at Belgaum city.


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PURPOSE OF THE STUDY

The general purpose of study is to determine Brand positioning of Pai Foods bakery

products. The study will reveal how company wants to position it brand and how it is

perceive by its customers. This outcome of research will help the company to design

appropriate strategies if the difference is more in what company wants and what it is at

present. The study will also help the company to find their strengths, weaknesses which

are under its control addition to this it will also determine opportunities available in the

market and the threats in faces from its competitors which are external to it.

The research will give valuable input to the management regards dimensions like price,

quality, service, durability, packaging etc. It will help the company to find awareness

level of its brand and adopt suitable promotion, advertisement, publicity policies to

market it bakery products. Thus this will benefit the company to formulation long term

strategies.


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SCOPE OF STUDY

Scope refers to area of operation. The project is carried at Pai Foods bakery products at

Udyambag plant. The study covers Pai Foods bakery products various functional

departments. The scope covers whole of Belgaum city and it included general grocery

retailers and sweet marts.

LIMITATION OF STUDY

Time duration of 2 months prevented from undertaking an in depth and extensive

study covering the broader areas.

Market comprises of huge number of customers, the sample size considered in

this market survey was 100. Hence these results are subject to constraints i.e. final

output may vary from reality.


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OBJECTIVES OF THE STUDY

1. To know whether there is brand awareness of bakery products among Belgaum

customers

2. To understand the brand positioning of Pai foods bakery products in Belgaum

city.

3. To understand key factors that retailers will consider most important to sell

bakery products at their store.

4. To know Strengths, weaknesses, opportunities and threat of Pai foods Bakery

products.

5. To help Pai foods for implementing appropriate techniques for brand positioning

of their bakery products.


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ORGANIZATION PROFILE

Pai foods bakery foods came into existence so as to meet the needs of people for bread

and other bakery items in Belgaum market. Standing by its motto 'Eat Pure, Be Sure' Pai

Foods , has always striven to put the three elements of health, happiness and hygiene in

all its food- products. Incepted in 1993, they are amongst the leading manufactures of

bakery products such as biscuits, cakes, doughnut, and rusks. Attributed by freshness,

aroma and taste, their products are extensively used in supermarkets, general retail stores

and restaurants across the Belgaum city and neighboring state, Goa.

Type of Ownership Partnership firm

Partners 1. Shri. Venkatesh V Pai

2. Mrs. Jyotsana V Pai

3. Mrs. Yamunabai V PaiYear of Establishment 1988

Industry type Bakery and confectionary industry

Registered & Head Office Pai foods bakery products Industrial

Estate, Udyambag Belgaum590008

Initial Capital 12 Lakhs

Built up area 4500 sq ft

No. of employees 15

Phone Number 0831-2440101

Creativity is the ability to use your insights and come up with new solutions to old

problems, get things done in a different way or find a totally different approach for

conventional things to work together.This above mention statement best describe Mr.

Venkatesh V Pai who has understood the Belgaum market very well and is producing


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various bakery items according to the needs of customers. Apart from all these, he gets

report from the salesmen periodically about the market continuously and thus changes if

necessary, in the products.

Pai bakery is a well managed concern having a history of more than 15 years. It was

established in the year 1988 as a franchisee of Spencers bread by family and was taken

over by Pai family in the year 1990 as a franchisee only. This franchisee was continued

for next 3 years and in 1993 the Spencers franchisee was rejected and Pai foods bakery

products came into existence. Initially they were producing only sugar breads but

generally by seeing the market condition they have started manufacturing various other

products under the brand name of Pai foods bakery products.

Range of products

1. White bread 350 gms

2. White bread 300 gms

3. Premium bread 350 gms


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4. Premium bread 300 gms

5. Sweet bread 400 gms

6. Fruit bread 200 gms

7. Half bread 175 gms

8. Sandwich 800 gms

9. Small tray 20 pieces

10. VTP 15 pieces

11. Sweet bun 4 pieces

12. Doughnut 4 pieces

13. Doughnut (L) 12 pieces

14. Slice cake 3 pieces

15. Slice cake 2 pieces

16. Nan 1 piece

17. Quarter nan 2 pieces

18. PL rusk 175 gms

19. PL rusk 100 gms

20. PL rusk large

21. PL khari 200 gms

22. PL khari (L)

23. Masala Toast 200 gms

24. Biscuit

25. Sugar Biscuit

26. Cream roll


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27. Small burger bun

28. Small pizza base

29. Bhajji patties

30. Egg patties

31. Mix Khara(loose)

32. Mix Khara (packet)

33. Jam bar cake

34. Stiffed bun

35. Bread crumb

36. Shev


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PRODUCTION DEPARTMENT

Pai foods bakery product is having a well equipped and managed production department.

It is headed by Mr. Rajan. Bread production takes place at Udyambag plant the only fully

merchandised bread plant in Belgaum.

PRODUCTION PROCESS.

1. Kneading : The sifted flour is poured into an industrial mixer. Water is piped into

the mixer. This mixture is called "gluten" and gives bread its elasticity. A pre-

measured amount of yeast is added. Yeast is actually a tiny organism which feeds

off the sugars in the grain, and emits carbon dioxide. The growth of the yeast

produces gas bubbles, which leaven the bread. Depending on the type of bread to

be made, other ingredients are also poured into the mixer. Modern mixers can

process up to 2,000 pounds (908 kg) of dough per minute. The mixer is essentially

an enclosed drum that rotates at speeds between 35 to 75 revolutions per minute.

Inside the drum, mechanical arms knead the dough to the desired consistency in a


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matter of seconds. Although modern bread production is highly computerized, the

ability of the mixing staff to judge the elasticity and appearance of the dough is

critical. Experienced personnel will be able to determine the consistency by the

sound of the dough as it rolls around the mixer. The mixing process takes about

30 to 40 minutes.

2. Fermentation: Three methods are used to ferment the dough. In some plants, the

high-speed machinery is designed to manipulate the dough at extreme speeds and

with great force, which forces the yeast cells to rapidly multiply. Fermentation

can also be induced by the addition of chemical additives such as 1-cysteine (a

naturally occurring amino acid) and vitamin C. Some breads are allowed to

ferment naturally which is done at Pai foods bakery products and this process

may take 30 to 35 minutes depending upon the room temperature. In this instance,

the dough is placed in covered metal bowls and stored in a temperature-controlled

room until it rises.

3. Division and molding: After the dough has fermented, it is loaded into a divider

with rotating blades that cut the dough into pre-determined weights. A conveyer

belt then moves the pieces of dough to a molding machine. The molding machine

shapes the dough into balls and drops them onto a layered conveyer belt that is

enclosed in a warm, humid cabinet called a "prover" . In Pai foods bakery

products they have moldings which are available in various sizes.

4. Proving: In this step the moldings are being put for nearly 20 minutes in stream

and let them to get enlarged and get the shape required.


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5. Baking: From the prover, the pans enter a tunnel oven. The temperature and

speed are carefully calculated so that when the loaves emerge from the tunnel,

they are completely baked and partially cooled. While inside the tunnel, the

loaves are mechanically dumped from the pans onto shelves. The baking and

cooling process lasts approximately 30 minutes.

6. Cooling: After the breads is baked it needs to get cool so that it can be sliced. So,

the molded breads are being kept on the racks and let to get cold for 30 minutes.

7. Slicing: The bread continues to cool as it moves from the oven to the slicing

machine. Here vertical serrated blades move up and down at great speeds, slicing

the bread into consistently sized pieces.

8. Wrapping & Sealing : Metal plates hold the slices together while picking up

each loaf and passing it to the wrapping machine. Pre-printed plastic bags are

mechanically slipped over each loaf. At some bakeries, workers close the bags

with wire twists. At Pai foods bakery products sealing of bags is done with help

of heat.


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H.R DEPARTMENT

HR Department of Pai foods bakery products cover areas like Recruitment, selection,

training etc. The main sources of recruitment use by Pai foods bakery products are as

follows:

1. Word of mouth: This is one of the common source that the company uses to

appoint unskilled workers at the plant. The HR department passes information to

employees about the availability of vacancies in the plant. The same information

is forwarded by the employees to their relatives, friends etc. This is one of the

most cost effective media for advertisement about vacancies.

2. Advertisement in Newspapers: Apart from the above media of advertisement the

company gives advertisements in local newspapers for filling of vacancies

particular of skilled workers. Taran Bharat, Vijay Karnataka etc are the local

newspapers in which advertisements are given.


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MARKETING DEPARTMENT

Marketing is the key factor for the success of any company. These are the people who

create, stimulate, communicate, promote, deliver companys offering to the public at

large. At Pai foods bakery products marketing activities are handled by 4 marketing

executives namely Mr. Basavraj, Mr.Inamdar, Mr. Krishna and Mr. Raju.

They marketing executives cover all corners of Belgaum city. Each marketing executive

has a unique route to market the products. They estimate the demand for different bakery

products and accordingly place the order with production department the same day. They

executives regularly give feedback to Production department about quality and quantity

dimensions which help the production department to manufacture products as per

customers needs.


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ACCOUNT DEPARTMENT

Accounts department is being handled by Rekha, accountant. She looks after all the affair

of the accounts. All the three accounts namely Trading account, Profit and loss account

and Balance sheet are prepared as per accounting norms and as per financial year i.e. 31

March every year.

DISPATCH DEPARTMENT

This dispatch department is being headed by Mr. Desai. He looks after day to day

production in the factory and also requirement of the market and balances the both. He

maintain the record of how much quantity of each products is loaded in the rickshaw of

each marketing executive. This is again cross checked at Hotel Pai foods after

verification.


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RESEARCH DESIGN

Management problem classification: After having a detailed discussion with

Managing Director Mr. Venkatesh Pai he express that We do not know how

people perceive our bakery products and what are the strengths, weakness,

opportunity and threat of Pai foods bakery products at Belgaum.

Situation Analysis: There are main four major bakery brand in Belgaum city

namely Ruchi, Pai, Baburao and Deshpande. But recently local bakery

manufacturer are also reaching retail grocery store to sale their products which

they sell at a comparatively lesser price than other major competitors.

Research Methodology: Since the management problem is already known to us,

the research method used will be descriptive research but initial exploratory

research will be used to establish clear understanding of the stated problem.

Specification of information needed:

To find brand awareness of bakery products among Belgaum customers and

its impact on sales.

To know key factors that retailer consider most important to sell bakery products.

To know Strengths, weaknesses, opportunities and threat of Pai foods Bakery

products.

Ethics of the research: this should be noted that issues relating to research will

be review ie all the aspect to check whether it is certain and are on ethical

grounds. The information will be used for academic purpose as well as the benefit

of the organization.


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SAMPLING

Selection of sample

Sampling allows us to concentrate our attention upon relatively small number of people

and hence devote more energy to ensure that the information collected from them is

accurate.

POPULATION: People from the city of Belgaum

SAMPLE FRAME: General Stores & Sweet Marts

SAMPLE UNIT: Owners of Stores and Sweet Marts.

SAMPLE METHOD: Quota Sampling

SAMPLING SIZE: 100 units

PAI PLUS OTHER BRAND PAIS

COMPETITORS

BRAND

THOSE WHO

DO NOT SELL

AT ALLTargeted 50 samples ie 25 samples from

those who sell exclusively Pais

brand and 25 samples from

those who sell Pai as well as

some other brands.

25 samples 20 samples

Achieved 60 samples ie 30 samples from

those who sell exclusively Pais

brand and 30 samples from

those who sell Pai as well as

some other brands.

25 samples 20 samples

DATA COLLECTION METHOD


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The information necessary for this survey is collected by tapping primary and secondary

sources.

Primary sources

Questionnaire

Unstructured

Secondary sources

Information from internet

Organization report

MEASURING TOOLS

Data are useful only after analysis. Data analysis involves converting a series of recorded

observations into descriptive statement , information and establishing relationship

between them. Hence concerned to this project, method used for analysis is graphical and

simple percentage method.


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3. Please indicate the bakery brand you are aware of.

Frequency Percent ValidPercent

CumulativePercent

Valid Ruchi 13 52.0 52.0 52.0Pai 9 36.0 36.0 88.0

Baburao 2 8.0 8.0 96.0

Deshpande 1 4.0 4.0 100.0

Total 25 100.0 100.0

DeshpandeBaburaoPaiRuchi

Frequency

14

12

10

8

6

4

2

0 1

2

9

13

The above graph shows brand awareness among shopkeepers who do not keep bakery

products at their store. Ruchi brand awareness level is highest with 56% followed by Pai

foods bakery products with 36% brand awareness level.


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5. Do customers ask bakery product by brand name.

76.0%

24.0%

No

Yes


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The above chart shows whether customers ask bakery products by brand name. These

samples where taken for competitors of Pai foods bakery products. Out of surveyed

respondents 76% customers do not ask bakery products by brand name and 24% ask

bakery products by brand name.

6. Which brands of bakery product do you sell at your store?


CumulativePercent

Valid Ruchi 12 48.0 48.0 48.0

Baburao 2 8.0 8.0 56.0Deshpande 1 4.0 4.0 60.0

Local brands 10 40.0 40.0 100.0

Total 25 100.0 100.0


Frequency Percent Valid

Percent

Cumulative

PercentValid Yes 6 24.0 24.0 24.0

No 19 76.0 76.0 100.0

Total 25 100.0 100.0

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Not at all

interested

12 48.0 48.0 100.0

Total 25 100.0 100.0

48.0%

4.0%

36.0%

12.0%

Not at all intereste

Not too interested

Somewhat interested

Very interested

The above chart shows how many shopkeepers who sell Pais competitors products are

willing to shift to some other brand.48% respondents are not at all interested to shift to

other brand while 36% are somewhat interested to shift to some other brand.

If you link Q.No 6 and Q.No 7 the following will be the chart.


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Q.No 6

Local brands

Deshpande

Baburao

Ruchi

Count

8

6

4

2

0

Q.No 7

Very interested

Somew hat interested

Not too interested

Not at all intereste

d

7

2

3

1 11

7

2

1

This above graph has put forward very important finding that is those shopkeepers who

sell Ruchi bread are more interested to sell some other brand, while local brand

shopkeepers are not at all interested to shift from brand what there sell at present.


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8. I do not sell Pai foods bakery products because. ..Frequency Percent Valid

PercentCumulative

PercentValid No

distribution8 32.0 32.0 32.0

High price 6 24.0 24.0 56.0 Improper

service

7 28.0 28.0 84.0

Replacement 3 12.0 12.0 96.0

low

durability

1 4.0 4.0 100.0

Total 25 100.0 100.0

4.0%

12.0%

28.0%

24.0%

32.0%

low durability

Replacement

Improper service

High price

No distribution

The above chart reveals that 32% respondents do not sell Pai foods bakery products

because there is no distribution in those areas. 28% argues it is because of improper

service by the salesman. They may not be approach the customers who sell Pais

competitors brand.24% shows signs of high price as key for not sell Pai foods bakery

products.



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CumulativePercent

Valid Yes 27 45.0 45.0 45.0

No 33 55.0 55.0 100.0

Total 60 100.0 100.0

55.0%

45.0%

No

Yes

The above graph shows customers of shopkeepers who sell Pai products whether they ask

bakery products by Pai brand name. 55% respondents say that their customers do not ask

bakery products by brand name while 45% agree that customers ask bakery products by

Pai brand name.

11. Tick () only those bakery products, which you sell at your store.


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Options Products Frequency Percent Valid PercentQ11A Bread 60 100.0 100.0

Q11B Butter &

Rusk

45 75.0 100.0

Missing System 15 25.0

Total 60 100.0

Q11C Pav & Bun 21 35.0 100.0


Total 60 100.0

Q11D Masala Rusk 29 48.3 100.0


Total 60 100.0

Q11E Cake 24 40.0 100.0


Total 60 100.0

Q11F Biscuits 27 45.0 100.0


Total 60 100.0

Q11G Khara 24 40.0 100.0


Total 60 100.0

Q11H Khari 33 55.0 100.0


Total 60 100.0

Q11I Doughnut 20 33.3 100.0



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Total 60 100.0

Q11J Cream roll 6 10.0 100.0


Total 60 100.0

60

45

23

29

25 26 25

31

19

6

0

10

20

30

40

50

60

70

Brea

d

Butte

r&Rusk

Pav&

bun

MasalaRu

sk Cake

Biscuits

Khara

Khari

Doughn

ut

Cream

roll

The above graph shows which all bakery products are sold by the shopkeepers. Bread is

sold by all the respondents ie 100%. Butter and Rusk out of 100% only 75% sell it. Out

of 100% only 33.33 % sells Doughnut and still further only 10% sell cream rolls. Rest all

are in the range of 40% to 60%.

12. Tick () only those Pai foods bakery products, which you sell at your store.

Options Products Frequency Percent Valid PercentQ12A Bread 57 95.0 100.0


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Total 60 100.0

Q12J Cream roll 2 3.3 100.0


Total 60 100.0

57

25

5

27

5 5 3

149

2

0

10

20

30

40

50

60

Brea

d

Butte

r&Rusk

Pav&

bun

Masala

Rusk

Cake

Biscuits

Khara

Khari

Doughn

ut

Cream

roll

The above chart shows all respondent who sell one or more of Pais products. Bread is

take by 95% of them. Masala Rusk is taken by 45% of respondents. 41.7% take Pais

butter and Rusk and 23.3% take Khari from Pais foods. Rest all products fall under the

range of 3% to 15%.



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1 0

7 5

3 8

4 8

4 2

4 3

4 2

5 2

3 21 0

9 5

4 28

4 5

8

85

2 3

1 5 3 B r e a d

B u t t e r &

P a v & b u n

M a s a la R

C a k e

B i s c u i t s

K h a r a

K h a r i

D o u g h n u t

C r e a m ro l

This above graph reveals that only bread and Masala Rusk are taken by the customers in

satisfactory numbers were there is Pais supply. Rest all products do not show a good

picture. Out of 75% who sell butter and Rusk just 42% take from Pai. Again in case of

Khari and Khara out of 52% and 42% respondents just 5% and 23% take from Pai.

13. I do not sell some of the Pai foods bakery products because..


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CumulativePercent

Valid Low quality 3 5.0 5.0 5.0

High price 21 35.0 35.0 40.0

Low margin 1 1.7 1.7 41.7

Noreplacement

facility

10 16.7 16.7 58.3

Nonpromotion

by salesman

2 3.3 3.3 61.7

No demand 23 38.3 38.3 100.0

Total 60 100.0 100.0

No demand

Non promotion by sal

No replacement facil

Low margin

High price

Low quality

Frequency

30

20

10

0

23

2

10

21

3

This above graph shows the respondent who do not take some of Pais products.35% say

they do not take because of high price of Pais products while 38.3% say they do not have

demand for those products.

14. Please indicate unique strengths because of which you sell Pai foods bakeryproducts


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CumulativePercent

Q14A Delicioustaste & fresh

41 68.3 100.0 100.0


Total 60 100.0

Q14B High margin 12 20.0 100.0 100.0


Total 60 100.0

Q14C High

awareness &demand

23 38.3 100.0 100.0


Total 60 100.0

Q14D Highdurability

3 5.0 100.0 100.0


Total 60 100.0

Q14E High servicespeed

38 63.3 100.0 100.0


Total 60 100.0

Q14F Frequency Percent



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In P e r c e n t

6 8 . 3

20 .03 8 . 3

5 . 0

6 3 . 3

0 .0

D e l i c i o u s t a s t e &

H i g h m a r g in

H i g h a w a re n e s s &

d e m a n d

H igh du r ab i l it y

H i g h s e r vi c e s p e e

L o w p r i c e

The above graph shows 68.33% of the respondents reveals delicious taste and fresh is the

number one strengths of Pais brand followed by 63.33% who says service speed and

response. No rank is given to low price.


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15. How do you perceive Pai foods bakery products?


CumulativePercent

Valid Standardizebrand

3 5.0 5.0 5.0

Moderate pricehigh quality

products

4 6.7 6.7 11.7

Tasty products

available in widevariety

31 51.7 51.7 63.3

High price high

quality products

22 36.7 36.7 100.0

Total 60 100.0 100.0

36.7%

51.7%

6.7%

5.0%High price high qual

Tasty products avaib

Moderate price high

Standardize brand


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Pai + other brandOnly Pai brand

Count

30

20

10

0

Q15

Standardize brand

Moderate price high

quality products

Tasty products avaib

le in wide variety

High price high qual

ity products

20

2

9

22

33

The pie chart in the previous page shows 51.7% perceive Pai brand as tasty brand

available in wide variety and 36.7% perceive it as high price high quality products.5%

perceive Pai brand as standardize brand and 6.7% perceive it as moderate price high

quality products.


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16. Service speed and response of Pai foods bakery products is high.


CumulativePercent

Valid Strongly

agree

14 23.3 23.3 23.3

Agree 26 43.3 43.3 66.7

Neitheragree nor

disagree

11 18.3 18.3 85.0

Disagree 6 10.0 10.0 95.0

Strongly

disagree

3 5.0 5.0 100.0

Total 60 100.0 100.0


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5.0%

10.0%

18.3%

43.3%

23.3%

strongly disagree

disagree

Neither agree nor di

Agree

Stronly agree

The above graph shows 43.3% of respondents agree that service speed & response is

high and 23.3% strongly agree with the above question. Where as 10% disagree and 5%

strongly disagree further 18.3% neither agree nor disagree.


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17. Retail sales price of Pais brand, if reduced I will definitely buy more than

what I am buying now.


CumulativePercent

Valid Strong agree 2 3.3 3.3 3.3

Agree 36 60.0 60.0 63.3

Neither

agree nordisagree

15 25.0 25.0 88.3

Disagree 7 11.7 11.7 100.0

Total 60 100.0 100.0

DisagreeNeither agree nor diAgreeStrong agree

Frequency

40

30

20

10

0

7

15

36

2

The above graph shows 60% of respondents agree that if price is reduce they will buy

more of Pais brands and 3.3% strongly agree with the above question. Where as 11.7%

disagree and 25% neither agree nor disagree.


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18. Replacement policy of Pai foods does not allow me to purchase more


CumulativePercent

Valid Stronglyagree

1 1.7 1.7 1.7

Agree 28 46.7 46.7 48.3

Neither

agree nor

disagree

21 35.0 35.0 83.3

Disagree 10 16.7 16.7 100.0

Total 60 100.0 100.0

16.7%

35.0%

46.7%

1.7%Disagree


Agree

Strongly agree



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Pai + other brandOnly Pai brand

Count

30

20

10

0

Q18

Strongly agree

Agree


sagree

Disagree

3

76

15

20

8

The previous page graph shows 46.7% of respondents agree that replacement is the

reason for not buying more and 1.7% strongly agree with the above question. Where as

16.7% disagree and 35% neither agree nor disagree.


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20. Promotion measures like buy 20 packs of doughnut and get one pack free etc.

Such promotion measures will stimulate me to buy more

Frequency Percent Valid

Percent

Cumulative

PercentValid Strongly

agree1 1.7 1.7 1.7

Agree 30 50.0 50.0 51.7

Neither

agree nor

disagree

17 28.3 28.3 80.0

Disagree 12 20.0 20.0 100.0

Total 60 100.0 100.0

20.0%

28.3%

50.0%

1.7%Disagree


Agree

Strongly agree

The above graph shows 50% of respondents agree that if promotion measure will

stimulate them to buy more and 1.7% strongly agree with the above question. Where as

20% disagree and 28.3% neither agree nor disagree.


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FINDINGS

Out of 100 % respondents surveyed who do not keep bakery products at their

store, 68% of respondents are interested to sell bakery products in their store in

next 3 months period.

Out of 100% respondents who do not keep bakery products at their store, 58%

respondents awareness level is highest towards Ruchi brand followed by Pai

foods bakery products with 36% brand awareness level.

The awareness level among ultimate consumers of Pai foods is more i.e. is 55%

compared to 24% of its competitors.

Ruchi brand is the leading with market share of 48% followed by local brands

which accounts for 40% of market share, Pai foods bakery products is excluded

in these samples.

48% respondents are not at all interested to shift to other brand while 36% are

somewhat interested to shift to some other brand. Among those respondents who

keep Ruchi brand are more interested to shift to some other brand while

respondents who sell local brand are not at all interested to try other brand

When ask to respondents who sell Pais competitors brand 32% respondents said

do not sell Pai brand because there is no distribution in those areas. 28% argues it

is because of improper service by the salesman.

95% of respondents sell Pais bread , 42% sell Pai Rusk out of 75% respondents.

further out of 48% respondents who sell Masala rusks, 45% sell Pais Masala

Rusk. Out of 38% respondent who sell Pav and bun only 8% take from Pais


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RECOMMENDATIONS

There is low brand awareness of bakery brands among ultimate consumers of

bakery product i.e. 39.5% are only aware of brands. Hence it is recommended

that Pai foods bakery products should advertise its brand in local TV channel,

wall poster and wall print etc. Could help the company to create brand

awareness.

57.1% respondents perceive Pai brand is as tasty products available in wide

variety. Hence instead of positioning it as moderate price high quality

products, it should be position as tasty brand with wide variety in product

category.

The company should continue its excellence in product taste as most of the

shopkeepers prefer delicious taste brand as the most important factor while

keeping bakery products at their store. Thus the company can use its

excellence in product taste to gain competitive advantage.

To position the brand in the market the distribution channels should be very

strong. Products should be available as and when required by the customers.

At present the distribution reach of Pai does not convey a good picture i.e.

32% reveals that the distribution is not up to the mark. Hence the uncovered

areas of Belgaum should be covered like Shahapur, Mahantesh Nagar, Sri

Nagar, etc


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The price charged by Pai Foods bakery products is high compared to its

competitors. No doubt with taste and quality price will be high but the

company can design different pricing strategies for different areas in Belgaum

city based on standard of living i.e. discrimination pricing.

Promotion measures could be of great help to company to sell its products in

huge quantity. For example buy 20 packs of doughnut and get one free.50%

respondents believe such measures will make them buy more.


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INTERNAL FACTOR ANALYSIS SUMMARY (IFAS TABLE)

Internal Strategic Factors (Strengths) Weights Ratings Weighted

Score

S1 Quality Pai culture .20 4.5 0.90S2 Oldest bakery manufacturer in Belgaum .15 3.8 0.57S3 Wide variety in product category .10 2.8 0.28S4 Leading in bread sales .05 3.0 0.15

External Strategic Factors (Weaknesses)W1 High price .20 2.0 0.40W2 Low durability compared to Baburao .10 2.2 0.22W3 Distribution channel and reach .15 2.0 0.30

W4 Brand positioning& packaging .05 2.8 0.14Total score 1.00 2.96

EXTERNAL FACTOR ANALYSIS SUMMARY ( EFAS TABLE)


5.0 4.5 3.0 2.5 2.0 1.5 1.03.54.0

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The Company is close to average compared to industry. Company need to design some

strategies ie use strengths to take advantage of opportunities, use opportunities to overcome weaknesses, use strengths to avoid threats and minimize weaknesses and avoid

threats.

CONCLUSION

Pai foods bakery products are the leading bread manufacturer in Belgaum city with

variety of their products under its belt. Ruchi, Baburao, Deshpande are its major

competitors including local brands and bakers. The brand should be positioning as tasty

brand available in wide variety instead of positioning it as moderate price high quality

product. Again the company need to make its customers who sell Pai and some other

brand that their products are not high price high quality products instead there are tasty


External Strategic Factors (Opportunities) Weights Ratings Weighted

ScoreO1 Potential Market available in the form of Pan shop .15 2.8 0.42O2 Advertisement and promotion because no brand

advertise its products in TV.

.20 2.1 0.42

O3 Technological advancement in production methods

like dough dividers, bread moulders etc

.10 2.2 0.22

O4Recapture market share by covering uncovered areas .05 2.8 0.14External Strategic Factors (Threats)

T1 Increasing Price of Raw material. .15 3.2 0.48

T2 Strong competition .15 3.0 0.615T3 Modernization of production methods by competitors. .10 2.8 0.28T4 Existence of traditional bakers and Iyenger .10 3.0 0.30Total score 1.0 2.875

Outstandin Above Avera e Avera e Below Avera e Poor

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products available in wide range. To make them feel in this way the company should

marginal reduce the price keeping the quality at same dimension.


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[ Please enter your personal detail at the end of questionnaire]


1. Yes

2. No

6. Which brands of bakery product do you sell at your store?

1. Ruchi

2. Baburao

3. Deshpande

4. Local brand specify

7. In general, are you interested in selling a new brand of bakery products at your

store?

1. Very interested

2. Somewhat interested

3. Not too interested

4. Not at all interested

8. I do not sell Pai foods bakery products because.

1. Low quality 2. No distribution

3. High price 4. Improper service

5. No replacement facility 6. Low Durability


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9. Do you sell Pai foods bakery brand as well as some other brand at your store?

1. Yes

2. No

If yes, specify the brand name_____________


1. Yes

2. No

11. Tick () only those bakery products, which you sell at your store.

1. Bread 2. Butter & Rusk

3. Pav & bun 4. Masala Rusk

5. Cake 6. Biscuits

7. Khara 8. Khari

9. Doughnut 10. Cream roll

12. Tick () only those Pai foods bakery products, which you sell at your store.

1. Bread 2. Butter & Rusk

3. Pav & bun 4. Masala Rusk

5. Cake 6. Biscuits

7. Khara 8. Khari

9. Doughnut 10. Cream roll


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13. I do not sell some of the Pai foods bakery products because.

1. Low quality 2. High price

3. Low margin 4. No replacement facility

5. Non promotion by Salesman 6. No Demand

.

14. Please indicate unique strengths because of which you sell Pai foods bakery

products. ( You can tick more one option)

1. Delicious taste & fresh 2. High margin

2. High awareness & demand 4. High durability

5. High service speed 6. Low price

15. How do you perceive Pai foods bakery products?

1. Highly Durable

2. Standardize brand

3. Moderate priced high quality products

4. Tasty products available in wide variety

5. High priced high quality products

SA= Strongly Agree

A=Agree

NAND= Neither agree nor disagree

D=Disagree

SD= Strongly disagree


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Q.No Question (Tick the appropriate criteria) SA A NAND D SD16 Service speed and response of Pai foods

bakery products is high.17 Retail sales price of Pais brand, if

reduced I will definitely buy more than

what I am buying now.

18 Replacement policy of Pai foods does not

allow me to purchase more.

19 Advertisement of bakery products in

advertisement media will create brand

awareness of Pai foods bakery products

& will increase demand.

20 Promotion measures like buy 20 packs of

doughnut and get one pack free etc. Such

promotion measures will stimulate me to

buy more.21. In what ways, if any, could brand you sell can be changed or improved. We

would like you to tell us anything you can think of, no matter how minor it

seems:______________________________________________________________

PERSONAL DETAILS:Name of the store:.

Address of the store

Phone number:

THANKS FOR YOUR COOPERATION & SUPPORT

BIBLIOGRAPHY


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Marketing Management By: Philip Kotler

Exploring Marketing Research By: William G. Zikmunad

Marketing research By: Naresh K. Malhotra

Strategic Management and Business policy by: Thomas L. Wheelen

T. David Hunger

WWW.bakery.com

WWW.timesofindia.com

WWW.businessweek.com

WWW.frontline.com

WWW.cnbc.com


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http://www.bakery.com/http://www.bakery.com/http://www.timesofindia.com/http://www.businessweek.com/http://www.frontline.com/http://www.cnbc.com/http://www.cnbc.com/http://www.bakery.com/http://www.timesofindia.com/http://www.businessweek.com/http://www.frontline.com/http://www.cnbc.com/


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