Description
MARKETING AND BRANDING PLAN FOR BAKERSTREET
StratiNnovva -2013
Team : We-Innovators
Anup Pawaskar [email protected] Gayatri Alat [email protected] Dhanvi Kapadia [email protected] College: Welingkar Institute of Management, Mumbai
CURRENT MARKET SCENARIO-BAKERY INDUSTRY
MARKET SIZE AND SEGMENTS
• Rs. 3,295 Crores (2011) • Growing at 8% annually • Biscuits and bread are the major bakery product and they account for 78% of all bakery production
NATURE OF INDUSTRY
• About 65% belongs to the unorganized sector • Dominated by the small-scale sector with an estimated 50,000 small and medium-size producers • Few major players in the organized sector
Industry Segments
Biscuits Bread Pastries, Cakes, Buns and Rusks
% in Unorganised Sector
50% 85% 90%
CONSUMPTION PATTERN
• The per capita consumption of bakery products is low(1.75 kg for bread and 900gms for biscuits) • However Bakery products are no longer viewed as a luxury tea-time snack but essential daily food component for an average Indian household • Organized players trying to shift focus towards health conscious products
Source: niir.org & http://mofpi.nic.in
INDUSTRY STRUCTURE
BAKERY INDUSTRY
ORGANISED
UNORGANISED
Large Mfg.
(Parle and Brittania)
Medium Mfg. (Cremica, Baker
Street, Monginis)
Small Mfg.
(Dalima, Super Bakers , etc)
Small Bakery Units
(Kayani Bakery, GayLords etc)
Cottage and Household Type Mfg.
Kirana Stores (Mom-n-pop stores)
MARKETING STRATEGIES USED IN THE UNORGANISED SECTOR
Local and Personalised Marketing used Value proposition offered is freshly baked product offered hot from the oven
Once that local bakery becomes popular, it becomes a brand in itself and people from all over the country flock to that place. Some such outlets usually do not have branches and are stand alone in nature
Offers low price range thereby tapping the middle and lower class. Premium segments also frequent here They know their customers well due to small scale of operations and bargain when orders are in bulk (Kitty Parties or get together) Discounts and offers are put up on festive occasions Home Delivery in specific cases (Bulk Orders and loyal customers)
STDP ANALYSIS FOR BAKER STREET SEGMENTATION TARGETING
• Males and Females • Adults and Couples of 25-49 years, 50-60+ years • Educated Upper Middle Class and Middle Class (SEC: A1,A2,A3,B1 and B2)
• Males & Females
AGE
• Age group 25-49 years
PRIMARY TARGET (T1) Married, Middle aged Woman and members of her family; Working as well as non working SECONDARY TARGET (T2) • Unmarried well-to-do professionals(males & females) with busy lifestyles • Students living in hostels, dorms in India and abroad who miss home baked Indian products like khari, nankhatai, etc.
POSITIONING & DIFFERENTITATION
DEMOGRAPHIC
GENDER
Baker Street to be positioned as a brand “that provides wide variety of bakery products satisfying to both health as well as indulgence seekers” POINTS OF PARITY
• Proper packaging • Freshness • Use of quality ingredients like Wheat • Use of low calorie sweetener or sugar, additives.
GEOGRAPHIC
• National Market: Metros, Tier 1 and Tier 2 cities in Western, Southern and Northern India • International Markets: Countries with significant population of South Asians
LIFESTLYLE
• Have dry snacks as an accompaniment with tea /coffee • Seek value in food products BEHAVIORAL • Quality and nutrition conscious • Wont compromise on health by buying loose unbranded snacks • Consume snacks on the go
POINTS OF DIFFERENCE
• Unmatched variety in terms of baked breakfast products, unique flavors and tailor made products
• Specialized products like 100% whole wheat biscuits ,100% vegetarian and Jain snacks free from animal fat
B2B, B2C AND GLOBAL DIVERSIFICATION STRATEGY FOR NEXT 3 YEARS
PRODUCT LINE EXPANSION • Following a Concentric diversification strategy by introducing new products like: • Jeera Butter • Plum cakes • Pizza base • Slice Bread • Potato Wafers • Banana Chips • Donuts • Khakhras • Maximising the potential of sub brand, NutriBite • A special line of low sugar biscuits, khari, toast and nankhatai especially for diabetics • New GF (gluten free) breakfast products for gluten intolerant people DOMESTIC EXPANSION B2B STRATEGY EXPORT STRATEGY
• Enhancing distribution network through presence in Modern Kiraana (e.g Chedda Stores in Matunga, Vijay Stores in Santacruz East etc.)
• Taking the product mobile by creating rapport with SMEs, small IT firms and/or hospitals • Standalone store in the cafeteria as pick-me-ups for tired employees who will appreciate the convenience of purchasing without leaving their workplace • Association with health camps to improve product visibility • Customized Corporate Gifting
• Exports according to the foreign market by tailoring the products in the form of ‘Multiseed Cookies, Mini Bites, Caramelised Biscuits, etc’
• Focusing on Health and wellness aspect in North America & European market • Targeting the largest gluten-free (GF) bakery market in Western Europe. GF is now recognized as a healthy food choice, rather than a necessary dietary requirement for sufferers of coeliac disease
• Establishing Baker Street standalone stores at strategic locations through franchise model to gain control over selling process and build stronger relationships with customers
• Setting up kiosks in malls and major transit depots
MARKETING AND SALES PROMOTION STRATEGIES
• Improving Brand Awareness Pamphlets of the print ad to be distributed as an insert in newspaper (regional and English) in few selective strategic localities (Mumbai, Pune, Delhi) having high concentration of our Target group • Bringing Baker Street goods in consumers’ consideration set A week long In-store sampling of Baker Street products at modern trade outlets, where the products will be kept in open-dishes near the cash counter for consumers to try the taste first hand • Educating on the nutrition component Health camps and blood donation drives to communicate the fact that bakery products are an important source of nutrients viz. energy, protein, iron, calcium and several vitamins. Commercial bread and biscuits contain around 7.5% to 7.8% protein respectively
MARKETING AND SALES PROMOTION STRATEGIES
• Position its utility as an on-the-go snack and as an essential daily food component Baked snacks are easy to use during travel or at home because of its availability in variety of pack sizes. They also offer substantial energy and must be used as a diet supplement for adults • Packaging Products like Khari, Naan-Khatai and Cake rusk to be sold in see-through PET trays Similarly a small, transparent plastic window on the boxes of other products This will enable consumers to see the product-texture, color and superior quality
• Pricing Adopting a Value based-yet-competitive pricing for products a few price points above bakery products from unorganized players
BRANDING STRATEGY
• In order to emerge as a national brand and compete with a lot of unorganized players, Baker Street needs to understand the benefits sought by the TG (defined earlier) and build the brand on the value proposition it offers: Health, Hygiene and Happiness
• Branding can be done in the simplest form like:
• Unique Baker Street Carry bag which is not only eco friendly but also bearing the logo which stays with the customer for a long time • Mobile Vans bearing the logo moving around the city to promote the products and give free trials for taste and eventually make sales
• The Customer Based Brand Equity Pyramid will help Bakers Street to carry out the strategies in the coming years
BRANDING STRATEGY
Resonance
• • Loyal customers from future generations as well Positive word of mouth Feelings Guilt free purchase as products offered at competitive price with quality Good accompaniment with tea/coffee thereby satisfying of wants • • • Imagery Safe, Hygienic products Looks after health conscious and diseased people as well Unique product offering through, ‘Nutribite’
Judgments
• • Excellent quality of finished product Building credibility is crucial and will happen over time after gaining loyal customers •
•
• • • •
Performance Consistency in product line across branches Quality Ingredients Fresh baked products Also served hot fresh from the ovens at appropriate mfg hours • •
Salience First choice for professional bakery products in India Consistent branding elements: Logo and recall associated with the brand
COMMUNICATION STRATEGY
• Creating a professionally managed Facebook Page by posting mouth-watering pictures of the products and the recent schemes launched • Breaking video ads on YouTube and Facebook page initially • Graduating to Print ads (shown alongside) in Leading English and Local Dailies and magazines with information provided about which retail outlets these products are available • Direct Marketing initiatives to the selected B2B customers based on their recency, frequency and monetary value • An Interactive website where bulk/party orders can be ordered online well in advance followed by Cash On Delivery • Localised SMS Marketing through Gupshup .com • Listing Baker-Street on food-review websites like Zomato.com, burrp.com • Incentivising retailers to improve shelf space presence
ESTIMATED MARKETING BUDGET
CAMPAIGN
Awareness Campaign Facebook, YouTube, PR Trade fairs specific to B2B Sampling at Health camps Print ad
METHOD
Pamplets, flyers,street plays Interactive media Rentals, promotion 15 Blood Donation camps in 5 cities In 2 major English and 2 local dailies in 3 cities B2B
SAMPLING FRAME
Educational institutes
COST ESTIMATE
1,00,000 1,50,000 6,00,000 5,00,000 12,50,000
Assuming 50 packets of khari and toast consumed per event Depending on TG newspaper or health magazines Large TG 1 pack free over dozen SKU
Malls, kiosks, standees Sales(trade) promotion
Product and promotion cost
Retailer incentives
5,00,000 10,00,000
TOTAL ESTIMATED COST
Rs. 41,00,000
ORGANIZATIONAL STRUCTURE
ORGANIZATION STRUCTURE • The proposed divisional structure is shown in adjoining diagram • Each Division will be handled by a Divisional manager heading the various products and its marketing, sales and distribution activity • The product line division would be divided into 3 parts 1)Traditional 2)Low-Sugar and 3)Gluten Free FRANCHISES FOR STANDALONE BAKER STREET STORES The franchisees will operate under the broad umbrella of Sarjena Foods Pvt. Ltd. (SFPL) The requirements would be: • 200 sq.ft of floor-space • 4 to 7 employees per shop • Marketing and Advertising to be controlled by Sarjena Foods Pvt. Ltd • Franchisee would need to invest in shop interiors, equipments, cooling counters, etc. as per quality and uniformity requirements specified by SFPL • Typically, the set-up cost of an outlet would be in the range of Rs 7 to 10 lakhs
TOP MANAGEMENT
B2B Division
B2C Retail Division
Export Division
TOP MANAGEMENT
Modern Retail
Franchise Division
Super/H yper Market
Malls
Campaig n Manage ment
Stand Alone Stores (Location Decision, Controlling and Management)
Thank You
doc_520346656.pptx
MARKETING AND BRANDING PLAN FOR BAKERSTREET
StratiNnovva -2013
Team : We-Innovators
Anup Pawaskar [email protected] Gayatri Alat [email protected] Dhanvi Kapadia [email protected] College: Welingkar Institute of Management, Mumbai
CURRENT MARKET SCENARIO-BAKERY INDUSTRY
MARKET SIZE AND SEGMENTS
• Rs. 3,295 Crores (2011) • Growing at 8% annually • Biscuits and bread are the major bakery product and they account for 78% of all bakery production
NATURE OF INDUSTRY
• About 65% belongs to the unorganized sector • Dominated by the small-scale sector with an estimated 50,000 small and medium-size producers • Few major players in the organized sector
Industry Segments
Biscuits Bread Pastries, Cakes, Buns and Rusks
% in Unorganised Sector
50% 85% 90%
CONSUMPTION PATTERN
• The per capita consumption of bakery products is low(1.75 kg for bread and 900gms for biscuits) • However Bakery products are no longer viewed as a luxury tea-time snack but essential daily food component for an average Indian household • Organized players trying to shift focus towards health conscious products
Source: niir.org & http://mofpi.nic.in
INDUSTRY STRUCTURE
BAKERY INDUSTRY
ORGANISED
UNORGANISED
Large Mfg.
(Parle and Brittania)
Medium Mfg. (Cremica, Baker
Street, Monginis)
Small Mfg.
(Dalima, Super Bakers , etc)
Small Bakery Units
(Kayani Bakery, GayLords etc)
Cottage and Household Type Mfg.
Kirana Stores (Mom-n-pop stores)
MARKETING STRATEGIES USED IN THE UNORGANISED SECTOR
Local and Personalised Marketing used Value proposition offered is freshly baked product offered hot from the oven
Once that local bakery becomes popular, it becomes a brand in itself and people from all over the country flock to that place. Some such outlets usually do not have branches and are stand alone in nature
Offers low price range thereby tapping the middle and lower class. Premium segments also frequent here They know their customers well due to small scale of operations and bargain when orders are in bulk (Kitty Parties or get together) Discounts and offers are put up on festive occasions Home Delivery in specific cases (Bulk Orders and loyal customers)
STDP ANALYSIS FOR BAKER STREET SEGMENTATION TARGETING
• Males and Females • Adults and Couples of 25-49 years, 50-60+ years • Educated Upper Middle Class and Middle Class (SEC: A1,A2,A3,B1 and B2)
• Males & Females
AGE
• Age group 25-49 years
PRIMARY TARGET (T1) Married, Middle aged Woman and members of her family; Working as well as non working SECONDARY TARGET (T2) • Unmarried well-to-do professionals(males & females) with busy lifestyles • Students living in hostels, dorms in India and abroad who miss home baked Indian products like khari, nankhatai, etc.
POSITIONING & DIFFERENTITATION
DEMOGRAPHIC
GENDER
Baker Street to be positioned as a brand “that provides wide variety of bakery products satisfying to both health as well as indulgence seekers” POINTS OF PARITY
• Proper packaging • Freshness • Use of quality ingredients like Wheat • Use of low calorie sweetener or sugar, additives.
GEOGRAPHIC
• National Market: Metros, Tier 1 and Tier 2 cities in Western, Southern and Northern India • International Markets: Countries with significant population of South Asians
LIFESTLYLE
• Have dry snacks as an accompaniment with tea /coffee • Seek value in food products BEHAVIORAL • Quality and nutrition conscious • Wont compromise on health by buying loose unbranded snacks • Consume snacks on the go
POINTS OF DIFFERENCE
• Unmatched variety in terms of baked breakfast products, unique flavors and tailor made products
• Specialized products like 100% whole wheat biscuits ,100% vegetarian and Jain snacks free from animal fat
B2B, B2C AND GLOBAL DIVERSIFICATION STRATEGY FOR NEXT 3 YEARS
PRODUCT LINE EXPANSION • Following a Concentric diversification strategy by introducing new products like: • Jeera Butter • Plum cakes • Pizza base • Slice Bread • Potato Wafers • Banana Chips • Donuts • Khakhras • Maximising the potential of sub brand, NutriBite • A special line of low sugar biscuits, khari, toast and nankhatai especially for diabetics • New GF (gluten free) breakfast products for gluten intolerant people DOMESTIC EXPANSION B2B STRATEGY EXPORT STRATEGY
• Enhancing distribution network through presence in Modern Kiraana (e.g Chedda Stores in Matunga, Vijay Stores in Santacruz East etc.)
• Taking the product mobile by creating rapport with SMEs, small IT firms and/or hospitals • Standalone store in the cafeteria as pick-me-ups for tired employees who will appreciate the convenience of purchasing without leaving their workplace • Association with health camps to improve product visibility • Customized Corporate Gifting
• Exports according to the foreign market by tailoring the products in the form of ‘Multiseed Cookies, Mini Bites, Caramelised Biscuits, etc’
• Focusing on Health and wellness aspect in North America & European market • Targeting the largest gluten-free (GF) bakery market in Western Europe. GF is now recognized as a healthy food choice, rather than a necessary dietary requirement for sufferers of coeliac disease
• Establishing Baker Street standalone stores at strategic locations through franchise model to gain control over selling process and build stronger relationships with customers
• Setting up kiosks in malls and major transit depots
MARKETING AND SALES PROMOTION STRATEGIES
• Improving Brand Awareness Pamphlets of the print ad to be distributed as an insert in newspaper (regional and English) in few selective strategic localities (Mumbai, Pune, Delhi) having high concentration of our Target group • Bringing Baker Street goods in consumers’ consideration set A week long In-store sampling of Baker Street products at modern trade outlets, where the products will be kept in open-dishes near the cash counter for consumers to try the taste first hand • Educating on the nutrition component Health camps and blood donation drives to communicate the fact that bakery products are an important source of nutrients viz. energy, protein, iron, calcium and several vitamins. Commercial bread and biscuits contain around 7.5% to 7.8% protein respectively
MARKETING AND SALES PROMOTION STRATEGIES
• Position its utility as an on-the-go snack and as an essential daily food component Baked snacks are easy to use during travel or at home because of its availability in variety of pack sizes. They also offer substantial energy and must be used as a diet supplement for adults • Packaging Products like Khari, Naan-Khatai and Cake rusk to be sold in see-through PET trays Similarly a small, transparent plastic window on the boxes of other products This will enable consumers to see the product-texture, color and superior quality
• Pricing Adopting a Value based-yet-competitive pricing for products a few price points above bakery products from unorganized players
BRANDING STRATEGY
• In order to emerge as a national brand and compete with a lot of unorganized players, Baker Street needs to understand the benefits sought by the TG (defined earlier) and build the brand on the value proposition it offers: Health, Hygiene and Happiness
• Branding can be done in the simplest form like:
• Unique Baker Street Carry bag which is not only eco friendly but also bearing the logo which stays with the customer for a long time • Mobile Vans bearing the logo moving around the city to promote the products and give free trials for taste and eventually make sales
• The Customer Based Brand Equity Pyramid will help Bakers Street to carry out the strategies in the coming years
BRANDING STRATEGY
Resonance
• • Loyal customers from future generations as well Positive word of mouth Feelings Guilt free purchase as products offered at competitive price with quality Good accompaniment with tea/coffee thereby satisfying of wants • • • Imagery Safe, Hygienic products Looks after health conscious and diseased people as well Unique product offering through, ‘Nutribite’
Judgments
• • Excellent quality of finished product Building credibility is crucial and will happen over time after gaining loyal customers •
•
• • • •
Performance Consistency in product line across branches Quality Ingredients Fresh baked products Also served hot fresh from the ovens at appropriate mfg hours • •
Salience First choice for professional bakery products in India Consistent branding elements: Logo and recall associated with the brand
COMMUNICATION STRATEGY
• Creating a professionally managed Facebook Page by posting mouth-watering pictures of the products and the recent schemes launched • Breaking video ads on YouTube and Facebook page initially • Graduating to Print ads (shown alongside) in Leading English and Local Dailies and magazines with information provided about which retail outlets these products are available • Direct Marketing initiatives to the selected B2B customers based on their recency, frequency and monetary value • An Interactive website where bulk/party orders can be ordered online well in advance followed by Cash On Delivery • Localised SMS Marketing through Gupshup .com • Listing Baker-Street on food-review websites like Zomato.com, burrp.com • Incentivising retailers to improve shelf space presence
ESTIMATED MARKETING BUDGET
CAMPAIGN
Awareness Campaign Facebook, YouTube, PR Trade fairs specific to B2B Sampling at Health camps Print ad
METHOD
Pamplets, flyers,street plays Interactive media Rentals, promotion 15 Blood Donation camps in 5 cities In 2 major English and 2 local dailies in 3 cities B2B
SAMPLING FRAME
Educational institutes
COST ESTIMATE
1,00,000 1,50,000 6,00,000 5,00,000 12,50,000
Assuming 50 packets of khari and toast consumed per event Depending on TG newspaper or health magazines Large TG 1 pack free over dozen SKU
Malls, kiosks, standees Sales(trade) promotion
Product and promotion cost
Retailer incentives
5,00,000 10,00,000
TOTAL ESTIMATED COST
Rs. 41,00,000
ORGANIZATIONAL STRUCTURE
ORGANIZATION STRUCTURE • The proposed divisional structure is shown in adjoining diagram • Each Division will be handled by a Divisional manager heading the various products and its marketing, sales and distribution activity • The product line division would be divided into 3 parts 1)Traditional 2)Low-Sugar and 3)Gluten Free FRANCHISES FOR STANDALONE BAKER STREET STORES The franchisees will operate under the broad umbrella of Sarjena Foods Pvt. Ltd. (SFPL) The requirements would be: • 200 sq.ft of floor-space • 4 to 7 employees per shop • Marketing and Advertising to be controlled by Sarjena Foods Pvt. Ltd • Franchisee would need to invest in shop interiors, equipments, cooling counters, etc. as per quality and uniformity requirements specified by SFPL • Typically, the set-up cost of an outlet would be in the range of Rs 7 to 10 lakhs
TOP MANAGEMENT
B2B Division
B2C Retail Division
Export Division
TOP MANAGEMENT
Modern Retail
Franchise Division
Super/H yper Market
Malls
Campaig n Manage ment
Stand Alone Stores (Location Decision, Controlling and Management)
Thank You
doc_520346656.pptx