HARSHIL GANDHI M.B.A. (INTERNATIONAL AGRIBUSINESS) 2014 A STUDY ON BAKERY MARKET IN VADODARA CITY

HARSHIL GANDHI M.B.A. (INTERNATIONAL AGRIBUSINESS) 2014 A STUDY ON BAKERY MARKET IN VADODARA CITY BY HARSHIL JYOTINDRA GANDHI B. E. (Food Processing Technology) INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND 388 110 JUNE 2014

A STUDY ON BAKERY MARKET IN VADODARA CITY A PROJECT REPORT Submitted by HARSHIL JYOTINDRA GANDHI Reg. No.: 04-2048-2012 in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INTERNATIONAL AGRIBUSINESS) UNDER THE GUIDANCE OF DR. R. S. PUNDIR Associate Professor and Head Agribusiness Economics and Policies INTERNATIONAL AGRI-BUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND - 388 110 JUNE 2014

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND - 388110 CERTIFICATE This is to certify that the project entitled A Study on Bakery Market in Vadodara City of M.B.A (International Agribusiness) embodies bonafide research work carried out by Harshil Jyotindra Gandhi under my guidance and supervision and that no part of this project work has been submitted for any other degree. The assistance, guidance and help received during the course of investigation have been fully acknowledged. Place: IABMI, AAU, Anand (Dr. R. S. Pundir) Date: Advisor

DECLARATION I hereby declare that the project entitled A study on Bakery Market in Vadodara City submitted for the M.B.A (International Agribusiness) Degree is our original work and this has not formed the basis for the award of any degree, associate ship or other similar titles. Place: IABMI, AAU, Anand Harshil Jyotindra Gandhi Date: Reg. No.: 04-2048-2012

ACKNOWLEDGEMENT The work presented here is not a single effort as each and every person associated with this project has contributed in the successful accomplishment of this piece of work and is being thanked for their efforts. I owe my heartiest thanks of Mr. Hiren Gandhi, Director, Muffins Confectionery and Bakery for giving me an opportunity to be a part of the Muffins Confectionery and Bakery. I would like to thank Mr. Vijish Nair, General Manager, Muffins Confectionery and Bakery whose valuable guidance has paved way for my successful completion of this project. I am also thankful to Miss. Fatema Attarwala, Business Development Manager, and Mr. Sachin Kadu, HR Manager, for allowing me to do research in their prestigious organization and providing necessary information for the research project. Moreover, I am thankful to Dr R. S. Pundir, Associate Professor and Head, Agribusiness Economics and Polices, IABMI, AAU, Anand our project guide for assisting me in every way to prepare this report. He shared with me his valuable knowledge and guided me from time to time in order to improve my project work. I extent my gratitude to Dr. P. R. Vaishnav, Principal, and Dr. G. B. Valand, Former Principal, International Agribusiness Management Institute, Anand

Agricultural University, Anand for providing necessary facilities during the project work. I feel imperative to express my sincere thanks for the generous help received from the Faculty of IABMI and my family & friends to complete this project successfully. I would like to thank all those people who were a part of this report in some way or other for providing me all possible help and cooperating with me, without their cooperation I would not have been able to get their valuable responses and thus would not have been able to complete the project. Place: IABMI, AAU, Anand Harshil Jyotindra Gandhi Date:

ABSTRACT i

A STUDY ON BAKERY MARKET IN VADODARA CITY Name of Student Harshil J. Gandhi Reg. No.: 04-2048-2012 Advisor Dr. R. S. Pundir Associate professor INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND - 388110 ABSTRACT Bakery Industry in India is the largest of the food Industries with an annual turnover of about Rs.32000 million and has achieved 3rd position in generating revenue among processed food sector. India is the second largest producer of biscuits after USA. This report entitled A study on Bakery Market in Vadodara City was carried out with two objectives viz., to know the sales of bakery products in Vadodara City and to know sales pattern of bakery product in Vadodara City. The survey was conducted with 200 retailers of Vadodara City using convenient sampling technique. The study was conducted with five product categories namely Bread and Bun, Biscuits, Cookies and Khari, Cake and Pastries, Puffs and Other products which mostly comprises of pizza base and bread loaf. All the 200 retailers surveyed kept Bread and Buns,54% retailers kept biscuits, cookies and khari apart from bread and buns. Cakes and pastries products were kept by14% retailers in addition to bread and buns. Puffs being most consumed ii

by youngsters were kept by 22% retailers. Other products mainly consisted of pizza base and bread loaf were kept by 6% retailers. Bread, buns and puffs being moist bakery products all the retailer ordered these products on daily basis. Biscuits, Cookies and khari consisting the second, most consumed bakery products. These products were kept by 108 retailers and out of them 11% retailers ordered on daily basis. 63% retailers ordered these products twice a week and 26% of the retailers ordered these products once a week. Cakes and pastries comprise of fresh cream cakes and pastries, cupcakes and slice cakes. These products were kept by 28 retailers and out of them 57% retailers ordered these products on daily bases, 14% retailers ordered these products once a week, 29% retailers ordered cakes and pastries as per requirement or as they received orders from the costumers. The most consumed bakery product brand was Super brand with 77% respondents. As for the preference of the package size, majority of the retailers i.e. 84% retailers told that consumer buys medium pack size (200g to 400g). The second most consumed package size was large (more than 400g) as told by 12% retailers while only 4% retailers opined that consumer preferred small pack (less than 200g). Finding of the study will be useful for the organization to understand the sales pattern of different categories of bakery products, success behind all the bakery brands apart from knowing the preference of the consumer to use different pack size. Findings of the study may go a long way in helping the organization to take appropriate decision pertaining to sales and marketing of bakery products in Vadodara City. iii

TABLE OF CONTENT Chapters Title Page No. Abstract i List of Figure vi List of Table vii 1 Introduction 1 1.1 Company Profile 2 1.2 Industry Profile 2 1.3 Objectives 8 2 Review of Literature 9 3 Methodology 13 3.1 Research Methodology 14 3.2 Limitation of the Study 15 4 Results and Discussion 16 5 Summary and Conclusion 31 5.1 Suggestion 34 References viii Appendix x iv

LIST OF FIGURES Figure No. Caption Page No. 4.1 Bakery Products Kept by Retailers 17 4.2 Brand of Bakery Products 19 4.3 Bread and Buns 20 4.4 Biscuits, Cookies and Khari 21 4.5 Cake and Pastries 22 4.6 Other Products 22 4.7 Changing the Brand 23 4.8 Most Consumed Brand 25 4.9 Abad 26 4.10 Muffins 26 4.11 Amul 27 4.12 Gandhi 27 4.13 Monginis 28 4.14 Goodies 28 4.15 Other Brands 29 4.16 Preference of Pack Size by Retailers 30 v

LIST OF TABLES Table No. Caption Page No. 4.1 Bakery Product Brand Kept by Retailers 17 4.2 Bakery Product Brands Kept by Retailers 19 4.3 Bread and Buns 19 4.4 Biscuits, Cakes and Khari 20 4.5 Cakes and Pastries 21 4.6 Most Consumed Bakery Products 24 4.7 Brand of Product Consumer Buys the Most 24 vi

INTRODUCTION 1

1. INTRODUCTION 1.1 Company Profile Muffins Confectionery and Bakery is one of the leading manufacturers of bakery products like different types of Breads, Cakes, Pastries, Cookies, Khari, Rusk, Biscuits, Chocolates, etc. Muffins Confectionery and Bakery is selling its products under one brand name known as Muffins. The manufacturing facility is well equipped with state of art infrastructure located at Vadodara city, Gujarat. Muffins Confectionery and Bakery is a part of Express Group and Hotel Express, It is an FSSAI (Food Safety and Standard Authority of India) licensed company. The company is committed to constant up gradation in technology in all areas of manufacturing. The company is having well equipped facility for storage of raw material, in process and finished goods with best quality packaging material to maintain the freshness and quality of the product. 1.2 Industry Profile Baking, particularly the baking of bread is one of the oldest of human activities indeed one of the oldest surviving papyri appears to be a set of instructions for making bread. Another document is part of a correspondence explaining that 2

pyramid construction is falling behind because the supply of beer and bread to the labourers has been insufficient, thus revealing that the diet of labourers has changed relatively little in thousands of years. Bakery products are flour-based food, baked in an oven, such as bread, cakes, pastries, biscuits and pies. Bakery products are an item of mass consumption in view of its low price and with rapid growth and changing eating habits of people; bakery products have gained popularity among masses. Bakery Industry in India is the largest of the food Industries with an annual turnover of about Rs.32000 million and has achieved 3rd position in generating revenue among processed food sector. The first and second segments are the wheat flour processing and fruits and vegetables processing, stated experts from the food industry. India is the second largest producer of biscuits after USA. The bakery Industry in India valued at Rs.69 billion and out of this, bread and biscuits hold about 82% of the share. The bakery industry comprises of organized and unorganized sectors. The unorganized sector accounts for about 67% of total biscuit production estimated at 1.3 million tonnes and 80% of the total bread production estimated at 1.5 million tonnes and around 90% of the other bakery products estimated at 0.6 million tonnes, which includes pastries, cakes, buns, rusks and others. Though bakery industry in India has been in existence since long, real fillip came only in the later part of 20th century. A study conducted by the Confederation of Indian Industry reveals that at present Indian s spend half of their household expenditure on food items. With over 1 billion population and 3

350 million strong urban middle class and changing food habits, the processed food market is promising a huge potential to be tapped. The Centre for Agriculture and rural Development reports that the youth is educated and wants to splurge their earnings on quality stuff. Availability and ease of use are progressively becoming the chief criterion for purchase and the trend of eating out and buying packaged food which is relatively new phenomenon, has witnessed an unprecedented rise. Changing life styles due to increased disposable income in advanced countries led to an increase in demand for processed food. Changes in food consumption patterns contribute to the development of food processing Industry. Bakery products still remain the cheapest of the processed ready to eat product in the country. The production of bakery products has increased from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990 recording fourfold increase in 15 years. The market size for the industry is pegged at US $4.7 billion in 2010 and is expected to reach US $ 7.6 billion by 2015. It is also revealed that the equation between unorganized and organized sector has shifted from 66:34 in 1997 to 60:40. The bakery products are becoming quite popular in rural areas and about 57% of biscuits are consumed by rural sector. The contributing factors were urbanization, resulting in increased demand for ready-to-eat food at reasonable costs. The Central Food Technological Research Institute (CFTRI), Mysore, sees potential in this growing segment. According to the University of Agricultural Sciences (UAS), Bangalore, bakery is a promising sector for growth going by 4

the interest evinced for products like cakes, biscuits, buns, rusks among other for all age groups. The Indian Institute of Management (IIM), Bangalore pointed out that the overall change in consumption patterns, young population willing to experiment on new products, propensity to spend, preferred locations for hangouts for all age groups are the key growth drivers of this sector. Bread market is estimated to be growing at around 7% p.a. in volume terms, whereas the biscuit market has witnessed a higher growth at around 8-10 %. India s bakery market at Rs.49.5 billion makes it the third largest market in Asia pacific, only after Japan and Australia The per capita consumption of bakery products in India is 1 to 2 kg per annum, which is comparatively lower than the advanced countries where consumption is between 10 to 50 kg per annum. Trends in consumer preference suggest increasing demand for bakery products. The consumption pattern in four zones is: Northern States: 27% Southern States: 32% Western States: 23% Eastern States: 18 % With globalization and India being viewed as a potential growth market, there has been a profusion of bakery chains springing up across the country. These include Au Bon Pain, the US-based bakery café chain, Monginis, Donut Baker, Cookie Man, Croissant, Café Coffee Day, Ovenpick, Bread Talk, SAJ Industries Bisk Farm, Hot Bread, Birdy s, Donut Master and Kookie Jar. The concept of bakery retail chains is a fad. Aping the Western markets, India 5

too has taken a strategic leap in the modern bakery space. The key growth driver of such retail bakery chains is the propensity to spend, young population willing to experiment on new products, overall change in consumption patterns, preferred locations for hangouts for all age groups, according to sources from the Indian Institute of Management (IIM), Bangalore. As per the ministry of Food Processing Industry the bakery products are reserved for the small scale sector out of which 40% is produced in the organized sector and remaining 60% is in the unorganized sector. Taking the market forces such as rising income level and changing consideration it is expected to reach a growth rate from 10% in 2010 to 25% in 2020. Increased number of working women, Change in Indian meal pattern, increased disposable income, urbanization etc., has increased the demand for bakery products. Bakery segment has increased matured to a great extent, recently. This tremendous growth has happened due to two reasons. First is, due to the availability of better raw-material. Secondly, education abroad has brought in many new players striving to produce products of international standard rather than products of mediocre quality. Number of players is increasing slowly. More and more people are starting to take this up as a profession from the house, after doing short/long courses. Like many industries, retail bakeries see rising costs in fuel, health care, and other expenditures cut into their bottom line and increase the cost of doing 6

business. However, there has been an uptick in demand, including trends such as cake shop and other baked goods. Despite economic worries, the industry is expanding its customer base while other food service sectors continue to suffer. Consumers are now willing to spend moderately and demand high quality for their money. SWOT Analysis Strengths 1. Abundant raw material 2. Part of a bigger pie 3. Low Capital Requirements Weakness 1. Large share of un-organized players 2. Dependence on one major raw material 3. Sensitive to commodity price fluctuations 4. Fragmented Cold Chain Supply Opportunities 1. Food Retailing in India 2. Growing Consumption of biscuits 3. Bakery potential in Rural India 4. Expanding attractiveness of coffee bars 5. Bakery Café 6. Exploding Middle class Threats 1. Rising Prices 2. Technology Up gradation 3. Scarcity of Skilled Human Resource 7

1.3 Objectives To study sales of bakery products in Vadodara City. To study sales pattern of bakery products. 8

REVIEW OF LITERATURE 9

2. REVIEW OF LITERATURE A study conducted by Small Industry Service Institute, Agra (2006) revealed that Bakery industry in India is the largest of food industry with annual turnover of Rs. 3000 crore. India is the second largest producer of biscuits after USA. The biscuit industry in India comprises of organized and unorganized sector. Bread and Biscuits form the major baked foods accounting for over 80% of total bakery products produced in the country. The quantities of bread and biscuits produced are more or less the same. However, value of biscuits is more than bread. The study has reviled that the industry has traditionally been and largely continues to be in unorganized sector contributing over 70 % of total population. Bakery products once considered as sick ma s food have now become essential food item of the vast population. Though bakery industry in India has been in existence since long, real fillip came only in the later part of 20 th century. The contributing factors were urbanization, resulting in increased demand for ready to eat products at reasonable cost. A report on Bakery Products market in Western Europe (2009) has concluded that the total West Europe Bakery Products Market was worth Euros 98.4 Billion in 2008 and top 10 West European companies supplies 23 % of this market. This total market is forecast to grow at an average annual rate of 0.37% during years 2008-2011 periods. Binu Verghese (2007), Director Marketing and Business Development of South and west Asia AB Mauris revealed in his study AB Mauris Plan Rs. 5 Crores Campaign to Promote Bread Consumption that here, the per capita 10

consumption of bread is 2 kg a year as against an European average of 200 kg. Even our neighboring country Sri Lanka s per capita consumption is 23 kg. Varghese attributes the low consumption mainly to the myth that one eats bread only when he is not well. We want to break that attitude and prove that bread is an alternative even for a healthy person. a study conducted by the company, in India, no one generally goes to a shop to buy just bread. When one goes to buy vegetables or groceries he picks up a loaf of bread along the way when he or she sees that at the cash counter. Going by the available statistics, the overall market size for bread in India is a little over 36 lakh loaves a day, and only a third of this is from the organized sector. However, the market is growing at 12 per cent. Joe Mathew C. (2005), observed in his report Bread Brand Establishing in Semi Urban, Rural Area, New Delhi, that the branded breads are much penetrated to the semi urban and rural area as they have established their network. The study has reviled that the industry has started the manufacturing of branded breads by giving contracts to the small manufacturer who are producing the bread for the branded producer. The organized sector in this industry consist of around 1800 small scale industry, 25 medium scale industries and around 2-3 large scale industries. Nemat Shreeren S. (2013), Advertisements are well established modes of modern business techniques used to deceive the customers. According to various studies it has revealed that there is a growing demand for bakery products due to its convenience in use, changing socio-economic environment and the desire to spend less time on food preparation. The study explores the influence of advertisement over purchase decision of consumers of bakery 11

products. The bakery sector has huge market potential and has a wide range of untapped market which can be explored through various promotional activities and also by providing quality bakery products. 12

METHODOLOGY 13

3. METHODOLOGY The study entitled A Study on Bakery Market in Vadodara City was carried out during 3 rd Feb. 2014 to 25 th May 2014 in Vadodara City of Gujarat. The objectives were to study the sales of bakery products in Vadodara City and to study the sales pattern of bakery products. The study was conducted through survey in the assigned area through direct interview with the retailers with the help of structured questionnaire. 3.1 Research Methodology 3.1.1 Nature of Data 3.1.1.1 Primary Data Primary data were collected with the help of questionnaire. Retailers who kept bakery products were the target audience for collecting data. 3.1.1.2 Secondary Data Secondary data were collected from magazines, books and from concerned websites. 3.1.1.3 Research Design Area of Survey: The study was conducted in the Vadodara City of Gujarat State. Sampling Method: Non Probability Sampling 14

Sampling Technique: Convenient Sampling Sampling Units: Retailers who kept bakery products and local bakery outlets situated in Vadodara City. Sampling Size: 200 Retailers Research Instrument: Considering the nature of study as well as for obtaining correct data from respondents, structured questionnaire was used to collect data. Analytical Tools: Tabular and graphical tools were used in the preparation of the report. 3.2 Limitations of Study Respondents may have give biased or false information than the actual data. Selected sample may not represent actual population. Limited time of data collection for the study Analysis is purely based on the responses of the respondents 15

RESULTS AND DISCUSSION 16

No. of Respondents 4. RESULTS AND DISCUSSION 4.1 Bakery products kept by retailer Table 4.1 Product Respondents Bread and Buns 200 Biscuits, Cookies and Khari 108 Cake and Pastries 28 Puff 44 Other Products 12 The survey was conducted in Vadodara City. Total number of respondents for survey was 200 retailer shops who kept bakery products. All the retailers keep bread and buns. 108 retailers i.e., 54% retailers kept biscuits, cookies and khari apart from bread and buns. Cakes and pastries products were kept by 28 i.e., 14% retailers in addition to bread and buns. Puffs being most consumed by youngsters were kept by 44 retailers out of 200 retailers. Other products mainly consisting of pizza base and bread loaf were kept by 12 retailers. Fig. 4.1 250 200 200 (100%) 150 100 108 (54%) 50 0 Bread & Buns Biscuits, Cookies & Khari 28 (14%) 44 (22%) 12 (6%) Cake & Pastries Puff Others Products Products 17

4.2 Bakery products brand kept by retailers Table 4.2 Brands No. of Responses Super 156 Abad 32 Muffins 4 Gandhi 1 Monginis 1 Amul 12 Modern 0 Goodies 1 Oven Magic 0 Own Brand 16 Unbranded 0 Other Brands 28 The Super brand in bakery products was the most dominating brand in Vadodara city. The main reason for such success is the service (delivery) provided by this brand and also the unsold products taken back if not sold before the date of expiry. Of 200 retailers, super brand was kept by 62% retailers. According to retailers response second most dominating brand was Abad with 13% retailers who kept this brand of bakery products. Other major brands in bakery products are Amul, Muffins, Gandhi and Monginis which were kept by 16, 4, 1 and 1 retailer respectively. Apart from these brands, brands like Britannia and Kalory were also kept by 28 retailers of Vadodara city. 18

Fig. 4.2 Brand of Bakery Products Super Abad Other Brands Own Brand Amul Muffins Gandhi Monginis Goodies Modern Oven Magic Unbranded 2% 1% 6% 5% 11% 13% 62% 4.3 Frequency of ordering bakery products. 4.3.1 Bread and Buns Table -4.3 Order Frequency Respondents Daily 200 Twice a Week 0 Once a Week 0 Fortnightly 0 As per Order 0 19

No. of Respondents As the sampling unit was the retailers who kept bakery products, Bread and buns are the most consumed bakery products and 100% retailers kept these products. Also people like to consume these products fresh. 100% retailers said that they ordered them on daily basis. Fig. 4.3 250 200 150 100 50 0 Bread and Buns 200 (100%) Daily Twice a Week Once a Week Fortnightly As per order Frequency 4.3.2 Biscuits, Cookies and Khari Table 4.4 Order Frequency Respondents Daily 12 Twice a Week 68 Once a Week 28 Fortnightly 0 As per Order 0 Biscuits, Cookies and khari are the second most consumed products in the bakery products. These products were kept by 108 retailers out of 200 retailers. Out of 108 retailers, 11% retailers ordered them on daily basis. 63% retailers ordered these products twice a week and 26% of the retailers ordered these products once a week. 20

No. of Respondents Fig. 4.4 80 60 Biscuits, Cookies and Khari 68 (63%) 40 20 12 (11%) 28 (26%) 0 Daily Twice a Week Once a Week Fortnightly As per order Frequency 4.3.3 Cakes and Pastries Table -4.5 Order Frequency Respondents Daily 16 Twice a Week 0 Once a Week 4 Fortnightly 0 As per Order 8 Cakes and pastries comprise of fresh cream cakes and pastries, cup cakes and slice cakes. These products were kept by 28 retailers. Out of these 28 retailers 57% retailers ordered on daily basis, 14% retailers ordered these once a week and 29% retailers ordered these products as per requirement or as they receive orders from the costumers. The products like fresh cream cakes and pastries are ordered on daily basis or as and when retailers receive order from consumers because the shelf-life off these 21

No. of Respondents No. of Respondents products is very less. The products like cup cakes and slice cakes having more shelf-life are ordered once a week or as and when required. Fig. 4.5 20 15 16 (57%) Cake and Pastries 10 5 4 (14%) 8 (29%) 0 Daily Twice a Week Once a Week Fortnightly As per order Frequency 4.3.4 Puffs Puffs are mostly consumed by the young population. Out of 200 retailers 44 retailers i.e. 22% keep puff. Puff had been moist bakery product and people like it to consume fresh all the retailers ordered it on daily basis. 4.3.5 Other Products Fig. 4.6 14 12 10 8 6 4 2 0 Other Products 12 Daily Twice a Week Once a Week Fortnightly As per order Frequency 22

Other bakery products mainly comprising of Pizza base and bread loaf were kept by 12 retailers i.e. by 6% of retailers. These products being moist bakery products and having less shelf life, retailers ordered these products on daily basis. 4.4 Retailers who want to change their current using brand Fig. 4.7 Changing the Brand 1% Yes No 99% Only 2 respondents i.e. 1% retailers had wished to change their current brand. As per the retailers response the main reasons to change the brand were to get more margin and better services provided by any brand. 4.5 Most consumed bakery products The rank sum of bread and bun was lowest i.e. 216 so it was most consumed product. Second most consumed product was biscuits, cookies and khari having rank sum 488. Puff being preferred by young population was the third most consumed product with rank sum of 584. Cake and pastries ranked as forth most 23

consumed bakery product with rank sum 728. Other product mostly comprising pizza base and bread loaf ranked fifth with 984 rank sum. Table. 4.6 Products Rank Sum Rank Bread and Buns 216 1 Biscuits, Cookies and Khari 488 2 Puff 584 3 Cake and Pastries 728 4 Others Products 984 5 4.6 Brand of Product Consumer Buys the Most Table - 4.7 Brands No. of Responses Super 154 Abad 16 Muffins 4 Gandhi 1 Monginis 0 Amul 0 Modern 0 Goodies 1 Oven Magic 0 Own Brand 16 Unbranded 0 Other Brands 8 The most consumed bakery product brand was observed Super brand with 77% respondents. The main reason for such success was the service (delivery) provided by this brand and also the unsold products taken back if not sold before the date of expiry. 24

The second most consumed brand was noted Abad with 8% respondents. Other brands like Muffins and retailers own brand had 2% and 8% shared respectively. Remaining 4% share accounted for by other brands like Britannia, Kelory and retailers own brands. Fig. 4.8 Most Consumed Brand Super Abad Own Brand Other Brands Muffins Gandhi Goodies Monginis Amul Modern Oven Magic Unbranded 4% 2% 8% 8% 77% 4.7 Single most important factor to buy any brand (For retailers) 4.7.1 Super Out of 200 retailers 156 retailers kept, super brand of bakery product. For all the retailers Service (delivery) was the most important factor, i.e. 100% retailers who kept Super brand felt service (delivery) as most important and common factor. The main reason for service being important factor for all the retailers were the delivery provided by super brand and also the unsold products taken back if not sold before the date of expiry. 25

Respondents Respondents 4.7.2 Abad Out of 200 retailers 32 retailers kept Abad brand of bakery products. For all the retailers service was the most important and common factor. The main reason for service being important factor was the quality service provided by Abad brand. Fig. 4.9 40 30 20 10 0 Abad 32 Margin Quality Packaging Shelf Life Service Factors 4.7.3 Muffins Of 200 retailers surveyed 4 retailers kept Muffins brand bakery products. For all these respondents quality was the most important factor to keep Muffins brand. Fig. 4.10 6 4 2 4 Muffins 0 Margin Quality Packaging Shelf Life Service Factors 26

Respondents Respondents 4.7.4 Amul Out of 200 retailers 12 retailers kept Amul brand of bakery product. Out of them Quality was the most important factor for 8 retailers while service was the important factor for 4 retailers. Fig. 4.11 10 8 6 4 2 0 Amul 8 4 Margin Quality Packaging Shelf Life Service Factors 4.7.5 Gandhi Out of 200 retailers 1 retailer kept Gandhi brand bakery products. For the retailer service i.e. delivery of the bakery product and unsold products taken back by the brand, was the most important factor to keep products of Gandhi brand. Fig. 4.12 1.2 1 0.8 0.6 0.4 0.2 0 Gandhi 1 Margin Quality Packaging Shelf Life Service Factors 27

Respondents Respondents 4.7.6 Monginis Out of 200 retailers 1 retailer kept Monginis brand of bakery products. For the retailer quality was the most important factor to keep products of Monginis brand. Fig. 4.13 1.5 1 0.5 1 Monginis 0 Margin Quality Packaging Shelf Life Service Factors 4.7.7 Goodies Out of 200 retailers 1 retailer kept Goodies brand of bakery products. For the retailer, service was the most important factor to keep products of Goodies brand. Fig. 4.14 1.5 1 0.5 Goodies 1 0 Margin Quality Packaging Shelf Life Service Factors 28

Respondents 4.7.8 Own Brand Out of 200 respondents studied, 16 retailers kept products of their own brand. They were of the opinion that their service, packaging, quality and shelf-life was at par of existing good brands in the market. 4.7.9 Other Brands Fig. 4.15 25 20 15 10 5 0 Other Brands 20 8 Margin Quality Packaging Shelf Life Service Factors Other brands mostly comprise of Britannia and kelory. Out of 200 retailers 28 retailers kept these brands and out of them, quality is the most important factor for 8 retailers and service is the most important factor for 20 retailers. 4.8 Preference of Pack Size by Retailers Out of 200 retailers 168 retailers told that 84% consumers buy medium size pack i.e. 200g to 400g. 24 retailers told that 12% consumer buy large size pack i.e. more than 400g, and 8 retailers were of the opinion that 4% consumer buy small pack i.e. up to 200g. 29

Respondents Fig. 4.16 200 150 100 50 0 Preference of Pack Size by Retailers 168 (84%) 8 (4%) 24 (12%) Small (upto 200g) Medium (200g to 400g) Large (more than 400g) Package Size 30

SUMMARY AND CONCLUSION 31

5. Summary and Conclusion Bakery Industry in India is the largest of the food Industries with an annual turnover of about Rs.32000 million and has achieved 3rd position in generating revenue among processed food sector. India is the second largest producer of biscuits after USA. The study entitled A study on Bakery market in Vadodara City was carried out with two specific objectives viz., to know the sales of bakery products in Vadodara City and to know sales pattern of bakery product in Vadodara City. The study was conducted at Muffins Confectionery and Bakery, Vadodara. The survey was conducted with 200 retailers of Vadodara City using convenient sampling technique. The study was conducted with five product categories namely Bread and Bun, Biscuits, Cookies and Khari, Cake and Pastries, Puffs and Other products which mostly comprises of pizza base and bread loaf. All the 200 retailers surveyed kept Bread and Buns, 54% retailers kept biscuits, cookies and khari apart from bread and buns. Cakes and pastries products were kept by 14% retailers in addition to bread and buns. Puffs being most consumed by youngsters were kept by 22% retailers out of 200 retailers. Other products mainly consisting of pizza base and bread loaf were kept by 6% retailers. 32

Bakery product brands which were considered for the study were Super, Abad, Muffins, Gandhi, Monginis, Amul, Modern, Goodies, Oven Magic and Own Brand. Bread, buns and puffs being moist bakery products all the retailer ordered these products on daily basis. Biscuits, Cookies and khari consisting the second, most consumed bakery products. These products were kept by 108 retailers and out of them 11% retailers ordered on daily basis. 63% retailers ordered these products twice a week and 26% of the retailers ordered these products once a week. Cakes and pastries comprise of fresh cream cakes and pastries, cup cakes and slice cakes. These products were kept by 28 retailers and out of them 57% retailers ordered these products on daily bases, 14% retailers ordered these products once a week, 29% retailers ordered cakes and pastries as per requirement or as they received orders from the costumers. Only 2 respondents had wished to change their current brand. The main reasons to change the brand were to get more margin and better service provided by the brand. The most consumed bakery product brand was Super brand with 77% respondents. The main reason for such success was the service (delivery) provided by this brand and also the unsold products taken back if not sold before the date of expire. The second most consumed brand was Abad with 8% respondents. Other brand like Muffins and retailers own brand had 2%, and 8% share respectively. Remaining 4% share accounted for other brands like Britannia and Kelory 33

As for the preference of the package size, majority of the retailers i.e. 84% retailers told that consumers buys medium pack size (200g to 400g). The second most consumed package size was large (more than 400g) as told by 12% retailers while 4% retailers told that consumers preferred small pack (less than 200g). Finding of the study will be useful for the organization to understand the sales pattern of different categories of bakery products, success behind all the bakery brands apart from knowing the preference of the consumer to use different pack size. To conclude the findings of the study it may go a long way in helping the organization to take appropriate decision pertaining to sales and marketing of bakery products in Vadodara City. 5.1 Suggestion Muffins bakery should improve the service and should take back the unsold products. Focus of the company should be on creation of awareness among customer about the quality of Muffins brand. As single most factor for keeping Muffins brand was quality, the company should focus on creating awareness about quality of Muffins brand. 34

REFERENCES vii

REFERENCES Anonymous (2009), Bakery Products Market in Western Europe, Hindu Business Line, November 16, pp 2-3. Anonymous (2006) Bakery Products, Small Industries Service Institute, Agra, pp 4-11. Mathew J. C. (2005) Bread Brand Establishing in Semi Urban and Rural Area, Financial Business News, October 29 th 2005, pp 1-3. Nemat Shreereen S. (2013) Influence of Advertisement Over Purchase Decision of Consumers of Bakery Products, Intercontinental Journal of Market Research Review Vol. 1, Issue No. 7, pp 90-97. Verghese B. (2007), AB Mauris Plans to Promote Bread Consumption, Hindu Business Line, December 12 th, 2007. http://www.fnbnews.com/article/detnews.asp?articleid=30083&sectionid=49 accessed on 02-06-2014. http://www.marketresearch.com/is-advisors-v3900/bakery-india-swot- 6891345/#toc accessed on 02-06-2014. http://www.thehindubusinessline.com/todays-paper/tp-marketing/ab-mauri-plansrs-5cr-campaign-to-promote-bread-consumption/article1677175.ece accessed on 02-06-2014. www.aibma.com accessed on 01-06-2014. www.foodprocessingbazaar.com accessed on 01-06-2014. viii

www.iddba.com accessed on 01-06-2014 www.expressworld.com accessed on 30-01-2014. ix

APPENDIX x

APPENDIX Questionnaire A Study on Bakery Market in Vadodara City 1. Name of Shop/Outlet:- Provision Store Retail Outlet (Brand) 2. Area/Location:- 3. Since how long you are selling bakery products:- 4. What type of Bakery Products do you keep? Bread & Buns Cake and Pastries Biscuits, Cookies and Khari Puff Others (Specify):- 5. Which brand of products do you keep? Super Abad Muffins Gandhi Monginis Unbranded Amul Modern Goodies Oven Magic Own Brand Other (Specify):- 6. How frequently do you order the product? Product Daily Twice a Week Once a week Fortnightly As per order Bread & Buns Cake and Pastries Biscuits, Cookies and Khari Puff Others (Specify):- xi

7. Would you like to change the brand which you are currently buying? Yes No 8. If Yes, then why? Tryout New Brand More Margins Others (Specify):- More Shelf Life Good Quality 9. If Yes, then which brand? Super Abad Muffins Gandhi Monginis Unbranded Amul Modern Goodies Oven Magic Own Brand Other (Specify):- 10. Which bakery product customers buy the most? (Rank from 1 to 5) Bread & Buns Cake and Pastries Biscuits, Cookies and Khari Puff Others (Specify):- 11. Which brand of product, customers buy the most? Super Abad Muffins Gandhi Monginis Unbranded Amul Modern Goodies Oven Magic Own Brand Other (Specify):- xii

12. Which is the single most important factor for you to buy any brand? Brand Factors Margin Quality Packaging Shelf Life Service Super Abad Muffins Gandhi Monginis Amul Modern Goodies Oven Magic Own Brand Unbranded Other (Specify):- 13. Which package size consumers buy the most? Small (up 200 g) Medium (200 to 400 g) Large ( more than 400 g) 14. Constraints faced by you? 1. 2. 15. Suggestion:- 1. 2. xiii