BUSINESS IDEA
It’s a bakery business. And since there are so many bakeries
around the city, it’s tough to survive. So the main idea of my C3 is to sell
products and services that are clearly comic themed, such as, selling cupcakes, bread-sticks pastries, and chocolates which are in the forms of comic
characters or resemble them in some way in a very artistic and aesthetic
manner.
MISSION AND OBJECTIVES
The objective is to create a niche market. The bakery
industry in India carries stiff competition and due to recent price hikes in
raw materials the barriers to entry have increased making it difficult for the
non-differentiators to survive. So with a niche market our business will be
able to grasp some of the share in the market and rule in it afterwards.
The mission is also to provide adolescents, young adults and
adults with a different meaning and experience of bakery, different from what
they have known until now.
The theme is simply comic, based on comic characters of DC
and MARVEL comics. Collaboration with them also brings much sponsorship helps
them gain their image in India.
Main emphasis is on locations or shops so as to make people
realize that they have entered a comic world rather than a commonly perceived
bakery.
CURRENT MARKET
SITUATION
Pest ANALYSIS
POLITICAL FACTORS
-high import duty for machinery, preservatives, raw
materials
-strict government regulations for providing shelf life
products
- Government through
Public Distribution Scheme (PDS) distributes and sells wheat all over and Food
Corporation of India (FCI) provides the major storage and infrastructure
facilities.
-But FCI storage system is age old and inadequate
and many studies indicated that there a significant loss and pilferage takes
place from FCI run storage go downs.
ECONOMIC
FACTORS
-due to low shelf life issues 20% of daily breads are thrown out
resulting low margin of profit for most of the bakery business.
-therefore, resulting in product extensions
- India being the second largest producer of wheat, saves the
cost of importing high quality wheat and flour.
- Entry barrier into this
category is quite high
- Indian
bakery industry slowly adapting the western culture of going away from artisan
bakers and towards more wrapped and specialty products in the categories like
breads, cakes and biscuits, which have now become an important fixture in
modern retail outlets.
- The total bread production in the country is
estimated to be 3.75 million tonnes annually growing at a rate of about 6 per
cent although the organized sector is said to be growing a little higher rate
of 8 per cent.
-
Bakery industry growth- 10-12% within the last decade. But industry structure
remains same.
-Industry
going more investment in production of bread and rolls due to more and more
introduction of middle class consumers.
SOCIAL FACTORS
-Using
consumer insights, businesses have started to bake more and fry less. Health
products are a key USP for most businesses.
- Most of
the innovations in this category are focused upon the development of healthy or
functional variants such as natural, functional, light or low carbohydrate and
organic breads.
- Key factors contributing to the growth of
processed food industry are change in socio-economic environment, newer raw
materials, additives, packaging materials, indigenous availability of plant
& machinery, and import polices.
-more introduction of middle class and young consumers in this category.
-more introduction of middle class and young consumers in this category.
TECHNOLOGICAL
FACTORS
-High import duty on machinery
- Bakery equipment are available locally. Also bakery
ingredients manufacturing business is flourishing primarily for the reason that
there are many small scale operators require technical support and these
ingredients manufacturers offer total solutions to them to improve their
quality. In bakery industry therefore, we have a few big and many small
businesses.
-More
implementation of innovation due to usage of atta in place of maida, resulting
to upgradation of machinery and production facilitates.
SWOT ANALYSIS
Strength
-The
USP itself. Consumers always expect for something different and out of the box,
especially from monotonous industries like bakery
-comic
shaped cakes and breads skillfully manufactured out of healthy wheat flour, fully
baked.
-the
idea of a C3 shop is more of a corner of comic characters and less of a typical
bakery shop. Giving it a unique edge over competitors
-more
employee friendly environment of business
-a
special sector for chocolates (Brown Heroes), which is beyond any target
market.
-more
like a comic world the “cake” way..
-use
of whole grains for making breads.
-much
unique environment, employees dressed as comic characters.
WEAKNESS
-
High differentiation
may lead to non-acceptance by many
-
Shelf life issues may
hamper profits
-
High innovation leads
to more investment in machinery and raw materials, more costs
-
The firm’s strategy to
provide high quality low price, may hamper the brand image.
OPPURTUNITIES
-again
the USP helps in grasping a huge opportunity in the market
-high
differentiation may lead to more consumer favoring and market leading
-the
out of the box, trendy, comic look would appeal to youth highly.
-high
range of merchandise will lead to more attraction hence more sales and increase
brand value
THREATS
-hike
in the prices of raw materials like sugar, vegetable oil, wheat flour and milk,
may hamper profit margin
-more
followers of the same concept may arrive and provide stiff competition
- The
government’s import duty policy for bakery machinery, preservatives and raw
materials is also a cause of concern
CONSUMER INSIGHT ANALYSIS
As I visited one of the bakery shops few days
earlier, they told me that customers expect new varieties every day or same
product categories with variations. With a recent survey in omegele.com, it was
we came to learn that people are more likely to welcome unusual and interesting
ideas like this, as the business has so many product varieties to offer. But
some feel that the comic theme is a bit geeky. With further research it was
also learned that people would like to come for the comic feel, as they think
it’s a great idea to portray comic characters through breads and pastries.
People will love it when they would see a comic stripe coming as a pastry to
them, and we came to know about these from the survey itself, as one of them
said, “You better make pastries in comic book shapes”.
TARGET MARKET
Although our main target is the age group of 10-24, we are
mainly thinking of appealing to the comic lovers’ society and who are also mad
over pastries, breads and cakes. So it clearly appeals to the youth who like to
think and act different.
MARKETING MIX
PRODUCT/SERVICE
The products we offer are different from other bakery products.
Here, cakes, breads, brownies, breadsticks, chocolates are in the shape of
comic characters and comic stripes.
Customers can literally read comics on cakes or pastries that
are the differentiation we provide.
We use high quality upgraded machinery for producing the food
products, high use of innovation makes us do this.
We are against the use of more preservatives; we use healthy
vegetable oil and whole grain wheat flour and even atta for producing the food
varieties.
We also provide merchandises such as T-shirts, C3 special addition
comic books, cups etc.
-employees in the shops dressed and serving as comic characters,
to provide more liveliness of the theme to customers.
PRICE
Our pricing strategy mainly leans towards quality leadership. We
are mainly planning to sell the theme and the quality to the target market and
gain advantage.
We will have a value based pricing.
We would like to provide an excerpt from the menu
Blade of brown (chocolate brownies in shapes of batarangs)-Rs
150, one box
Bread
of steel (breads in shape of superman)-Rs 40 each
Faster
than light (pastries in shapes of Flash)- Rs 55 each.
So
it clearly defines that we are selling nothing else but the value, quality and
the theme.
PLACE
For
market testing, the first month we are opening up with two stores across the
city and then slowly we are going to scatter.
We
are mainly emphasizing on our shops by not naming them or identifying them as
shops but corners, where the creamy world of comic lies.
We
are not adopting the franchisee concept as we are not big enough. Though we are
saving on the transportation costs by attaching the production plant with the
cake shop itself, to avoid messiness we are also allowing customers to come and
take a look at how the superheroes are being produced.(exclusive distribution)
PROMOTION
We
are likely to use print and OOH advertising tools and unlikely to use TVCs as
we find it is irrelevant in this context.
Although
we are planning to have pamphlets distributed from the stores, and have a
facebook page of the business.
The
USP itself is also enough to lead to word of mouth advertising.
Competitions
like, “to be continued” welcoming the customers to tell what happens next in
the comic stripe, or they who they want to eat next...
INVESTMENT
-as
we are focusing more on exclusiveness, money is going to be needed for the shop
and machines in lots.
-we
would be specializing in or licensing in a unique bakery machinery system,
having their plates separately made.
-we
are planning to open only one store across the city. The size of the shop would
be approximately 10,000 square feet, so that is around Rupees one crore for
Pune.
-
investment needed for the interiors.
-employee
dress
-sponsors
from marvel and dc
IMPLEMENTATION
-The
first step is to create an employee friendly collaborative environment aiming
for cultivation
-Employees
need to be trained well to handle to new born innovative machineries to produce
goods
-More
focus on interior designs and uniqueness of the environment
-Separate
audit and finance department to handle the finance of the business
-Daily
survey and monitoring of the shop activities to bring changes in strategy or
improve them
-the
advertisements would focus more on the liveliness of the comic characters, or
making customers feel that the characters are brought to life.
-the
shop would have its production plant attached to the shop itself, clearly
visible to customers, saving costs of transportation and removing issues of
freshness.
-more
focus on efficiency. The strategy is to employee more and more people, so as to
make people see them as more and more comic characters…this will bring
efficiency and save time.
-customer
feedback boxes at the shop (corner)
-
eliminating the concept of shop and naming it as a corner.
MONITORING AND CONTROL
-website
designed to continuously monitor customer feedbacks, facebook page as well.
-employees
will also be questioned about their experiences with their customers and vice-versa.
-