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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.
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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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Pai Foods Bakery Products, Udyambag, Belgaum
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?
Frequency Percent ValidPercent
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
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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.
10. Do customers ask bakery product by brand name.
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Frequency Percent ValidPercent
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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Pai Foods Bakery Products, Udyambag, Belgaum
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
Missing System 39 65.0
Total 60 100.0
Q11D Masala Rusk 29 48.3 100.0
Missing System 31 51.7
Total 60 100.0
Q11E Cake 24 40.0 100.0
Missing System 36 60.0
Total 60 100.0
Q11F Biscuits 27 45.0 100.0
Missing System 33 55.0
Total 60 100.0
Q11G Khara 24 40.0 100.0
Missing System 36 60.0
Total 60 100.0
Q11H Khari 33 55.0 100.0
Missing System 27 45.0
Total 60 100.0
Q11I Doughnut 20 33.3 100.0
Missing System 40 66.7
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Total 60 100.0
Q11J Cream roll 6 10.0 100.0
Missing System 54 90.0
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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Missing System 51 85.0
Total 60 100.0
Q12J Cream roll 2 3.3 100.0
Missing System 58 96.7
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%.
If you link Q.No 11 and Q.No 12 the following will be the chart.
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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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Pai Foods Bakery Products, Udyambag, Belgaum
Frequency Percent ValidPercent
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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Pai Foods Bakery Products, Udyambag, Belgaum
Frequency Percent ValidPercent
CumulativePercent
Q14A Delicioustaste & fresh
41 68.3 100.0 100.0
Missing System 19 31.7
Total 60 100.0
Q14B High margin 12 20.0 100.0 100.0
Missing System 48 80.0
Total 60 100.0
Q14C High
awareness &demand
23 38.3 100.0 100.0
Missing System 37 61.7
Total 60 100.0
Q14D Highdurability
3 5.0 100.0 100.0
Missing System 57 95.0
Total 60 100.0
Q14E High servicespeed
38 63.3 100.0 100.0
Missing System 22 36.7
Total 60 100.0
Q14F Frequency Percent
Missing System 60 100.0
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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?
Frequency Percent ValidPercent
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.
Frequency Percent ValidPercent
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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Pai Foods Bakery Products, Udyambag, Belgaum
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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Pai Foods Bakery Products, Udyambag, Belgaum
17. Retail sales price of Pais brand, if reduced I will definitely buy more than
what I am buying now.
Frequency Percent ValidPercent
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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Pai Foods Bakery Products, Udyambag, Belgaum
18. Replacement policy of Pai foods does not allow me to purchase more
Frequency Percent ValidPercent
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
Neither agree nor di
Agree
Strongly agree
If you link Q.No 9 and Q.No 18 the following will be the chart.
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Pai + other brandOnly Pai brand
Count
30
20
10
0
Q18
Strongly agree
Agree
Neither agree nor di
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
Neither agree nor di
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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Pai Foods Bakery Products, Udyambag, Belgaum
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)
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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
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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]
5. Do customers ask bakery product by brand name.
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_____________
10. Do customers ask bakery product by 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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