Description
In the United States and sometimes in Canada, it is a small, soft, leavened bread, somewhat similar to a scone, though generally softer and fluffier. Although yeast may be used as a leavening agent, it is often replaced or supplemented with baking powder or baking soda.
CERTIFICATE
This is to certify that members of Group K of Third Year M.B.A. of K.S. SCHOOL OF BUSINESS MANAGEMENT & RESEARCH have successfully completed their Feasibility Report on BISCUIT for academic year 2006-07 and have duly submitted to the institute.
Date of submission: Project Guide Name: Prof. ISMAIL BOOTWALA Signature: K.S. SCHOOL OF BUSINESS MANAGEMENT GUJARAT UNIVERSITY AHMEDABAD-380009.
ACKNOWLEDGEMENT
An acknowledgement is something, which is so often overlooked by people who read a project. But for us it is the expression of heart-felt gratitude towards all those people who helped us throughout the project. It is true that the outside world is quite different from our perception. Along with the theoretical knowledge acquired at the college, it is of prime importance to have the practical knowledge and this has been possible only through the support, guidance and motivation provided by different persons. Hence, our project bears the imprints of many people. We are greatly indebted to Mrs. Sarla Achuthan, the Director of K.S. School of Business Management, who gave us this opportunity of involving ourselves in such projects. We were also provided immense guidance from our project guide Mr. Ismail Bootwala right from the inception till the completion of the project. He has always been there to show us the right path at every junction of our journey by providing us invaluable inputs and feedback. We are thankful and appreciate the help of: ? Mr. Bhavesh Trivedi of “LAO MORE BISCUITS PVT. LTD.” (A Contract Manufacturing Unit of ‘Parle Ltd.’) ? Imperial Bakery, Lal Darwaja. ? Italian Bakery , Lal Darwaja. ? Moti bakery, Lal Darwaja. ? Rajagold Biscuits, Naroda. ? SISI, Ashram road. ? Gujarat Chamber of Commerce. ? Nayan Bramhabhatt, insurance agent.
PROJECT AT GLANCE
NAME OF UNIT ADDRESS : : DELIGHT BISCUITS ADARSH CHEMICALS, OPP. SHAHWADI BUS-STAND, RAMDEV ESTATE LANE, NAROL ASLALI ROAD, AHMEDABAD- 382405. PRIVATE LIMITED. SMALL SCALE INDUSTRY 1250Kgs PER DAY IN 1ST YEAR 25% OF 750 TONNES IN 1ST YEAR 55% OF 750 TONNES IN 2ND YEAR 60.67% OF 750 TONNES IN 3RD YEAR RURAL AND SEMI URBAN AREA Rs. 9219000 2YEARS & 8 MONTHS 12465064 0.61 AGMARK POLLUTION CONTROL FACTORY ACTS’ LINCENCE FOOD & DRUG CONTROL
INCORPORATION STATUS OF INDUSTRY PRODUCTION CAPACITY
: : :
TARGET MARKET TOTAL INVESTMENT PAYBACK PERIOD NET PRESENT VALUE ARR LICENSES
: : : : : :
COST OF PROJECT
STATEMENT SHOWING COST OF PROJECT PARTICULARS AMT (Rs. In lacs) LAND & BUILDING PLANT & MACHINERY FURNITURE & FIXTURES VEHICLES MISC FIXED ASSETS PRELIMINARY & PRE-OPERATIVE EXPENSES PROVISION FOR CONTINGENCY MARGIN MONEY FOR WORKING CAPITAL TOTAL COST OF PROJECT
50 32 0.71 8 1.48 13.31 5.55 111.05 4 115.05
MEANS OF FINANCE
PARTICULARS WORKING CAPITAL LOAN TERM LOAN TOTAL MEANS OF FINANCE TOTAL (Rs.in lacs) 80.54 34.51 115.05
ASSUMPTIONS
1. We have considered 300 working days of production in a year. 2. For the initial year first 6 months have been taken for pre-operative and preincorporation. Therefore the production begins from 1/10/2007. 3. We acquire the licenses from the prescribed authorities. 4. Land is purchased at the rate of Rs.2000 per sq. yard and construction cost of the unit is Rs.2500 per sq. yard. 5. Contribution to Provident fund is made at 12%. 6. Workmen compensation fund is at 10%.
INTRODUCTION
Baking industry:
Baking industry occupies an important position among Indian food processing industries with an annual turnover of about Rs.3000 crores. The spurt in the production of bakery products could be attributed to their advantages over other processed foods. Bakery products are ready to eat, convenient to use and possess satisfactory nutritional quality.
Pic-Speak
History of Biscuit industry:
Biscuits. We all love them don't we? But what exactly is a biscuit? Biscuit means “twice-cooked” in French, but don't let that put you off. In other version, we can say a biscuit is a hard baked product like a small flat cake which in North America may be called a "cookie" or "cracker".While in American English, a "biscuit" is a small form of bread made with baking powder or baking soda as a leavening agent rather than yeast. Generally, Australians use the British meaning of "biscuit" (colloquially referred to as 'Bekah') for the sweet biscuit. The Biscuit industry in India comprises of organized and unorganized sectors. Bread and Biscuits form a 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 same, however, value of the biscuits is more than bread. Bakery products once considered as sick man’s diet, have now become an essential food items of vast majority of population. Though bakery industry in India has been in existence since long, real fillip came only in the later part of the 20 th century. The contributing factors were urbanization, resulting in increased demand for ready to eat profiles at reasonable costs etc. `` Biscuits are a household name these days. The markets are flooded with biscuits of every taste for every age group. Sometimes it would be difficult for us to decide on what to go buy. These make good combinations with a hot cup of tea or a coffee. They make a quick and a tasty snack any time and in any situation. Company Logo
Glucose biscuits are mainly the favourites of many as their intake charges them up. Especially if a person is suffering from Low BP, then glucose biscuits act as energizers in emergencies. Although there are many regional varieties, both sweet and savory, "biscuit" is generally used to describe the sweet version. Sweet biscuits are commonly consumed as a snack and may contain chocolate, fruit, jam, nuts or may even be used to sandwich other fillings. Savory biscuits, more often called crackers or crispbreads, are plainer and commonly eaten with cheese following a meal. The consumer food industry mainly consists of ready-to-eat products or ready-to-cook products such as pasta products, cocoa based products, bakery products, biscuits, soft drinks, etc. Bakery industry in India is probably the largest of the processed food industries, production of which has been increasing steadily in the country. The two major bakery industries, viz., bread and biscuits account for about 82% of the total bakery products. The annual production of bakery products includes bread, biscuits, pastries, cakes, buns, rusk, etc., most of which are in the unorganised sector.
SELECTION OF PROJECT
Scope for development
Biscuit making in India was limited to small bakeries. Also, not everyone accepted biscuits as snacks. Biscuits were pre dominantly consumed by the elite class. It was
during the British rule in India that this industry started flourishing. It has been a custom England to consume biscuits during tea time in the evening Today, globalization has made India a melting pot of cultures. Though biscuits have not been an integral part of our daily routines, now it is the most preferred snack. Moreover, they are being promoted as ‘energy and nutritious food’. Hence this industry is flourishing on a wide market base. The increasingly fast-paced nature of consumer lifestyles has created a cash rich but time poor society. The focus on formal meal times continues to diminish, with "on-the-go" eating and snacking becoming increasingly popular. Competition is also revolutionising the production and marketing practices. Marketers are attempting to come with more uses of biscuits. As a result, biscuits are now part of our festivals, fitness regimes, daily snacks, diet for the ill etc. The scope for development is huge. Biscuits are in the process of evolution as practical and ‘ready to eat’ food.
Business Environment Political Environment
Political stability goes a long way towards ensuring steady progress of an industry. Frequent changes in the central or state government’s leads to changes in industrial policies. Every ruling party has a unique political ideology. Hence, with a change in the government, changes in budgets, tax relief measures, subsidies, tax structures and holidays, and licensing policies may follow.
Economic Environment
India is the second largest producer of biscuits after USA. Competition Hindustan Lever and ITC have now forayed into the mass biscuit market. While ITC has launched its glucose brand, Sunfeast, HLL has decided to differentiate its product, Modern ‘Energy’ Biscuits, by using wheat and soya as ingredients. Importantly, both
ITC’s and HLL’s new offerings are priced at Rs 4 for a 100 gram pack, the same level as Parle G and Britannia’s ‘Tiger’ glucose biscuits. HLL and ITC have a massive distribution reach. This new development would clearly have a significant impact on the market shares of both Parle and Britannia. In case the taste of the new products do not go down very well with consumers, the already established players may get some breathing space, but it will be only a matter of time before that gets corrected and the pressure will soon be back on. Structurally, the entry of players such as HLL and ITC in the mass biscuit market is bound to affect the dominance of Britannia in the biscuits market. What’s more, competition from regional players such as Surya Foods, known for its ‘Priya Gold’ range of biscuits, has also increased. It certainly doesn’t help that the company has just had a change in leadership. Importance of Distribution Besides heritage and price points, distribution is crucial to the success of any consumer goods brand. Even though Kellog’s launched Chocos at Rs 5/pack, its distribution strategy was not up to the mark. Parle has 1,500 wholesalers catering to 4,25,000 retail outlets. Chocos were later taken off the shelves. Biscuits require a mass distribution network and Kellogs had limited itself to the upmarket outlets with its premium-priced cereals. Parle over the years has built a robust distribution network. For the fast moving consumer goods industry, the packaged biscuit basket has emerged as a winner with all other product lines like soaps, detergents, hair oil, packaged tea biting the dust. The quick, teatime snack has zoomed into a Rs 2,500 crore industry clocking 3-4% growth annually.
Per Capita Consumption The per capita consumption of biscuits in India is still very low. On an average Indians eat 0.48 kg every year, while Americans eat 4 kg. Per Capita Expenditure on Biscuits Americans depend on biscuits as they have very few ready-to-eat food items for snacks. They spend $6,897m on 1134.6m kg of biscuits every year, outpacing both India (490m kg valued at $583m) and China (180.5m kg valued at $406.3m). Share of Organised and unorganized Sectors The organised biscuit market in India is estimated to be over Rs 3000 crore. Britannia, the market leader, is said to have about 45 per cent market share, with Parle close behind at about 30-35 per cent. The unorganized sector produces around 70% of biscuits.
Contribution of Small Scale Industries Over 79% of the biscuits are produced by this sector consisting of both factory and nonfactory production. Social Environment In mid-income households, kids averse to dal chawal are often given glucose biscuits to make up for the cereals. But surprisingly, Indians eat over three times more branded biscuits (490m kg) than the Chinese (180.5m kg). Given that both India and China have conventional food habits where traditional snack items like idli, dosa, dhokla, samosa have a fair share, Indian consumers’ appetite for biscuits is enormous. Globalisation is affecting the Indian lifestyle in a big way. They are practical solutions for a quick bite. Even in the rural areas, biscuits are very popular. Mass production and distribution efforts are giving a boost to the industry sales.
Legal Environment The following are the acts that are to be complied with by the company: • Indian Factories Act. • Industrial Disputes Act. • Payment of Gratuity Act, 1982. • Payment of Bonus Act, 1965. • The Employees Provident Fund Act, 1952. • Employees State Insurance Act. Also, all food industries have to follow the laws stated under ‘The Food Adulteration Act’.
PRODUCT PARAMETERS
THE PRODUCT: ‘Biscuit’. BRAND NAME: Delight Biscuits COMPANY LOGO:
PRODUCT LINE: Product line: • • • • • Glucose biscuit Salty biscuits Orange cream biscuits Choco-vanilla biscuits Dry fruit biscuits
Product line addition in future: • • • Low calorie Protein-rich Crackers
PRODUCT SIZE AND SPECIFICATIONS: SR.NOVARIETY 1 GLUCOSE BRAND NAME SIZE (in gms) Gluco King 50 100 500 100 250 100 200 100 100
2 3
SALTY DRY-FRUIT
Fantasy Magic Mix
CREAM BISCUITS 4 ORANGE Tangy orange 5 CHOCO-VANILLA QUALITY ASPECT:
Quality in the broadest sense, covers activities that help to keep production running smoothly and efficiently and ensure that the finished goods are within predetermined specifications. We try to keep a strict check on the raw materials before they are used, checks at critical stages during manufacturing and checks on finished products. It is not common for biscuit to be sold with precise claims of nutritional values, but where there is the case of Quality Control, adequate samples must be taken and checked to substantiate claims made on the labels of the same.
Special emphasis is to be laid on hygienic impositions so as to retain its Quality Standards. The manufacturing ingredients and the finished goods are to be stored at safe and hygienic place free from insects, rodents and other toxic substances. Also precautionary measures are to be taken by the workmen to safeguard the Quality Standards.
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Technical feasibility
DETAILS OF RAW MATERIALS
• MAIDA: Maida is refined wheat flour. It is the principal component of biscuits. It should be prevented from moisture, insects and dust. Proper measures have to be taken to maintain the quality of maida. Insect repellents should be used as a precaution. A product is an identity of a company. It is born out of technical activities.
• GHEE: Vanaspati ghee is used in the production to make the dough soft. They also give a good flavour to the biscuits. It acts as a binding material for the ingredients in biscuits. • SUGAR: It sweetens the biscuit dough. We shall be using grinded sugar. This is because grinded sugar mixes easily and uniformly in the dough mixture. Sugar also acts as a preservative. • BAKING POWDER: Also called Sodium Bicarbonate, it helps in the baking process. • COLOURS: They are additives, which help to identify the flavour of the cream. We shall use permitted natural and synthetic food colours (E102, 124,160b), which are not harmful to health. These colours are permitted by the • ESSENCE: We will be using chocolate, vanilla, butter and orange essence. Essence is an artificial flavouring agent. It is generally used in all kinds of biscuits. • DOUGH CONDITIONER • SALT • SODIUM METABI SULPHATE • EMULSIFIERS: The primary function of these compounds is to stabiles the mixture. There are various ingredients which are oil based or water based. The emulsifiers hence stabilize these ingredients.
Production Processes
Purchase of raw materials:
This is the first stage in the production process. The materials are brought to the production unit by roadways. They will then be unloaded in the storeroom of the factory. The storeroom will have hygienic and clean to ensure longer shelf life of the materials. Mixing the ingredients: Right proportion of all the ingredients is crucial for maintaining the product quality. In this stage, all the ingredients are poured in the dough mixer. The design of the blades of the machine helps in homogeneous mixing of the ingredients. The action is repeated until the designed uniformity and consistency of dough-mix is obtained. The dough determines the baking quality of the biscuit. When the dough is soft and well kneaded, it is ready to be transferred to the moulding machine. However, in case of salty biscuits the dough is kept for fermentation for about 10 hrs. In case of Dry Fruit biscuits, dry fruits cut into small pieces are also added after kneading the dough. For Choco vanilla biscuits, chocolate chips are added after kneading. Moulding the biscuits: The biscuits are given a pre determined shape and design. The design and shape forms the identity of the company and its biscuits. The dough is reduced to sheets of pre set thickness. The Rotary moulder in this sense is used for soft biscuits. Thereafter, dough sheet is transferred for cutting and moulding. The scrap is transferred back to the dough mixer. This scrap is the extra dough that is left behind after the biscuits are moulded and shaped.
Baking: The conveyer takes the moulded dough to the oven. The baking powder helps in the process. The temperatures in the oven are pre set. Also, they have to be maintained to ensure perfect baking. The moulded dough passes through various stages of temperatures.
The lower part and the upper part of the dough are baked at different degrees. A controller maintains these temperatures. The colour of dough changes to light brown. The biscuits also gain their characteristics i.e. crispness. For production of cream biscuits, they are diverted to the Cream Sandwich Machine. Here, the cream is poured on the base biscuit. Thereafter, another piece is placed on the layer of the cream. For salty biscuits, salt is sprayed on the upper portion of the biscuits. Thereafter, oil is sprayed to facilitate adherence of the salt on the biscuit surface. Biscuit cooling: The conveyor takes the biscuits to the packaging machine. During this passage, the biscuits cool down. Cooling is necessary because the moisture is given out. This retains the freshness of the biscuits in their packaging. Hence, cooling conveyor & cooling fans placed above conveyor belt cool the baked biscuits. Packaging: The biscuits are diverted from the conveyor belt to the packaging machine. A narrow panel in the machine stacks the biscuits. The machine is essentially automatic. The person employed on this machine will be technically proficient. He has to detect & remove the broken & burnt biscuits. The machine will automatically count 7 regulate the no. of biscuits to be included in each pack. Our packaging will have the following contents: • • • • Brand & company name Slogan & company logo Details of ingredients Date of manufacture & expiry
• • • • •
Batch no Net Weight Nutrition table Product bar code Price
The packaging will have an attractive colour & design. Also, they will be water proof. The size of the packs will be easy & convenient to handle. Chances of pilferation will be reduced through heat sealing.
Process Control
Process control is a process beginning from the stage of dispatch of raw materials from the storeroom to packaging of the finished goods.
Planned production process increases the scope of efficiency. It helps in the analysis of the process to detect and remove those variables that may increase costs. Process control determines minimum movement of men, materials and other resources. It studies the production process in detail to detect and correct unnecessary movements. The following are the process flowcharts: Production process of Salty biscuits:
Production process of glucose, orange, chocovanilla and dryfruit biscuits:
RECIPES OF BISCUITS:
1. GLUCOSE BISCUITS
PARTICULARS MAIDA GHEE SUGAR BAKING POWDER VANILLA ESSENCE WATER DOUGH CONDITIONER SALT SODIUM BI-CARBONATE SODIUM METABI SULPHATE EMULSIFIER ACTUAL QUANTITY 50 30 20 0.5 0.13 25ltr 0.47 0.33 0.5 0.15 0.33
TOTAL
102.41
RECIPE: Maida, sugar, ghee, vanilla essence and other ingredients are mixed with water to make the dough. The dough is then rolled into a sheet and moulded and cut into desired shape. Then they are passed on to the oven through the conveyor belts. The biscuits are ready for packaging after cooling 2. SALTY BISCUITS:
PARTICULARS MAIDA GHEE SUGAR BAKING POWDER BUTTER ESSENCE WATER EMULSIFIER SODIUM BI-CARBONATE SODIUM METABI SULPHATE DOUGH CONDITIONER SALT TOTAL ACTUAL QUANTITY 60 28 11.36 0.45 0.2 25 lt. 0.33 0.5 0.15 0.47 2 103.96
RECIPE:
Maida, sugar, ghee, and 25ltrs of water are added to form the dough. Then the dough is kept for the fermentation process for one day. Then other ingredients are mixed into it. Then the dough is passed to the forming zone. The biscuits once baked are then cooled and then oil is sprayed and salt is sprinkled on it to give them salty taste. 3. ORANGE CREAM BISCUITS:
PARTICULARS MAIDA GHEE SUGAR CREAM WATER (ltr) ORANGE ESSENCE SODIUM BI-CARBONATE SODIUM METABI SULPOHATE EMULSIFIER SALT DOUGH CONDITIONER TOTAL ACTUAL QUNTITY 40 21 25 15 20 0.12 0.5 0.15 0.3 1.5 0.4 103.97
RECIPE: Maida, sugar, ghee, orange essence and other ingredients are mixed with water to make the dough. The biscuits are then prepared in usual process. Now the orange cream is placed between two biscuits using Cream Sandwich Machine. 4. CHOCO-VANILLA CREAM BISCUITS:
PARTICULARS MAIDA GHEE SUGAR CREAM CHOCO-CHIPS VANILLA ESSENCE SALT SODIUM BI-CARNONATE SODIUM METABI SULPHATE DOUGH CONDITIONER WATER ( ltr) EMULSIFIER TOTAL ACTUAL QUANTITY 35 20 25 15 8 0.13 1.5 0.4 0.15 0.3 20 0.25 103.73
RECIPE:
Maida, sugar, ghee, vanilla essence, choco chips and other ingredients are mixed with water to prepare the dough. Then the biscuits are made in the usual manner. And then using Cream Sandwich Machine, vanilla cream is placed between two biscuits. 5. DRY-FRUIT BISCUITS:
PARTICULARS MAIDA GHEE SUGAR KAJU & PISTA SALT SODIUM BI-CARBONATE SODIUM METABI SULPHATE EMULSIFIER DOUGH CONDITIONER WATER (ltr) ESSENCE TOTAL ACTUALQUANTITY 50 30 10.72 10 1 0.5 0.15 0.33 0.47 25 0.13 103.3
RECIPE: Ingredients such as Maida, ghee, sugar, salt, cashew-pista and others are mixed in order to form dough. Then the biscuits are prepared in usual process.
Machinery List and Description
Details of Biscuit Baking Equipments & Machineries Pre Baking Rotary Molder Dough Mixer Rotary Cutting Machine Mixture machine Baking Gas fired Baking Oven Post Baking Cream Sandwich Machine Stripper Conveyor machine Packing Table Unit
Rotary Molder
Features and Characteristics of Rotary Molder:
• • • • • • • •
Heavy duty Mild Steel body. Heavy Casting grooved Roller (forcing roller) Gun Metal moulding Roller with engraved design as required Vulcanised Rubber Roller with Shore Hardness of 60 to 65 properly ground. Stainless Steel Hopper. Geared motor. AC Frequency Controller for synchronizing speed with the panner web conveyor and with the oven band speed. One endless bylon conveyor
Description Rotary Moulder : Rotary Moulder unit for producing all types of Soft Dough Biscuits such as Glucose, Coconut, Milkbikkis, Butterbite etc. This machine consists of C I forcing roller, gunmetal moulding roller and a rubber pressure roller. Roller speeds are synchronized mechanically or electronically. A Control panel is provided for machine operation.
Specifications Rotary Moulder :
Sl. Moulder Die Size ( Length x Dia) Inch No. 1 33 x 010 or 33 x 08 For 33 plant
HP Geared Motor 5.0
Dough Mixer
Description Dough Mixer: 1. The mixing of the raw materials is achieved by two specially made blades (often sigma type) set on in a "W" shaped trough, the rotation of one blade being opposite to that of the other. The bottom of the trough is curved upwards to from a ridge between the blades. 2. The design of the blades helps in homogeneous mixing of the ingredients. The action is repeated until the designed uniformity and consistency of dough-mix is obtained. 3. The top lid can be opened or closed manually. 4. Inner walls are from S.S. Sheet.
5. After getting the ingredients mixed the mixing bowl can be tilted automatically and the dough mass can be transferred by means of pulsating motion of th emixing blades. The machine will also be provided with control panes fitted with a timer switch. Specifications: 100 Kg Mixer 1 Sac of 90 Kg Flour per Sack 2000 Kg 415HP / 10 HP
Model
Capacity Machine Weight Two-SpeedMotor
Rotary Cutting machine with gauge roller
This machine will be capable of producing all types of hard dough, snacks biscuits and have the following attachments: 1. Feeding Table Conveyor to 1st Gauge Roller. 2. First set of chilled C I Gauge Roller 3. Intermediate take-off conveyor. 4. 2nd set of chilled C I Gauge Roller 5. Intermediate take-off conveyor. 6. Final set of chilled C I Gauge Roller 7. Recovery Conveyor & Corrugating conveyor. 8. Scrap release conveyor. 9. Scrap lifting conveyor. 10. Scrap transfer conveyor. 11. Side scrap return conveyor. Planner web conveyor adjustable. 1. S.S Milk spray hood, Milk Container, excess Milk collecting tray & Milk spray nozzle. 2. One set plastic cups filled with M. S. Roller and one Rubber Roller A separate drive unit will drive the whole machine with a geared motor. The complete machine will be manufactured from M S rolled steel section casting etc. A C frequency controller & master controller for the running of complete machine including separate control panel for operating the machine.
Baking Equipments
Gas Fired Baking Oven The oven bakes the biscuits at varied temperatures. The base and the posterior of the biscuit is baked at different temperature. Also, the process of baking takes place at the following temperatures: Temperature of the upper part of the biscuit 160 250 255 251 242 197 Temperature of the lower part of the biscuit 135 190 245 226 224 142
Post Baking Equipments Packing Table Unit
This conveyor will be provided with guides and biscuits will move through rows for easy lifting by packing personnel. This conveyor will have a separate drive with frequency controller geared motor.
Post Baking Equipments Stripper conveyor unit
The conveyor is placed immediately after the exit end of the baking oven for the operator to sort out poor quality biscuits for placement on to a cross conveyor.
Cream Sandwich Machine
Description: Automatic cream sandwich machine of production capacity 200 to 400 pc. (wire cut) Sandwich biscuits per minute, complete with aluminium base plate. All other machine components are from stainless steel. The machine is driven by 2 Hp motor. A separate stacking conveyor will also be provided which is manufacturing by S S and driven by 0.5 Hp motor.
Suppliers of Machineries (1) M/s Thakurdas Narendradas Near jain temple, Fatehpura main road, Vadodara - 390006 (2) M/s KSP Equipment E/ 8 ram kumarmils compound, Saraspur , Ahmedabad – 18 (3) M/s Dinesh Industry Guosaijis vandal, Near madhuram theater, Dhi kata road, Ahmedabad-4 (4) M/s Nagpal Brothers 2789, Joraver shih road, Mori gate, Delhi – 110006.
Suppliers of Raw materials: (1) M/s Bhagwati General Agency Tin darwaja, Ahmedabad - 38001. (2) M/s Banas Treding Company 34, Divya Vasudhara commerse house, Near coart, Mijapure Road,
Ahmedabad - 380001. (3) M/s Devarshan industry ltd. Devarsan house, near jain temple, Ahmedabad -380004. (4) M/s Dekora chemical industry C-192, B.G tower, first floor, Near dilli darwaja, Shahibag road,Ahmedabad.
Suppliers of Packaging: (1) M/s Gujarat Plastic and Paper Bell Baug shopping center, Opp. Railway Station, Baroda. (2) M/s Kalapi Printers 44, Shubhlakshmi shopping center, Station Road, Anand. (3) M/s Dynamic Packaging 216, GIDC Makarpura Industrial Estate, Baroda.
UTILITIES: Water: A boring pump will be used to meet the requirement of water.
Electricity:
Electricity is manly required for machine & office purpose. It is provided by ‘TORRENT POWER AEC LIMITED’. The requirement of monthly electricity is 10000 kWh. Communication: We will use different communication tools like telephone, intercom, computer, and intranet. It will help the managers for better communication with suppliers, distributor & dealers. Requirements: (1) Telephone & intercom For the office purpose one telephone line will be installed & for internal communication we will use intercom. (2) Computers. We will use three computers with internet connection in our office. Drainage & waste disposal: Drainage is provided in the factory layout itself. Wastage in manufacturing process is reused & reproduced and the ultimate wastage which remain after the final process is given to the wastage disposal agency. Storage system: Separate rooms for storage of raw-materials and finished goods are provided.
Manpower Requirement
ORGANISATION CHART
Job Specification and Job Description
1. MANAGING DIRECTOR: JOB SPECIFICATION: JOB TITLE: MANAGING DIRECTOR
QUALIFICATION: M.B.A EXPERIENCE: 5 YEARS OR MORE AS M.D. IN FMCG INDUSTRY AND SHOULD HAVE LEADERSHIP ABILITY JOB DESCRIPTION: FUNCTIONS: To frame long term policies. Handling emergency affairs. Calling periodical meetings. Appointment of managers. Deciding product mix. Approve organization changes. RESPONSIBILITIES: He/she is responsible for implementing policies and converting plans into actions. 2. PRODUCTION MANAGER: JOB SPECIFICATION: JOB TITLE: PRODUCTION MANAGER QUALIFICATION: M.B.A WITH B.E. EXPERIENCE: 5 YEARS JOB DESCRIPTION: REPORTS TO: Managing director SUPERVISES: Production department
FUNCTIONS: To supervise the supervisors. To achieve the production target in specified time period. To coordinate with marketing department. Try to apply innovative methods. To maintain raw material requirements. To ensure the dispatch of finished goods to marketing department. To have a control over the process. RESPONSIBILITIES: Achieving production target in specified time period.
Maintaining prescribed quality norms. 3. SUPERVISORS: JOB SPECIFICATION: JOB TITLE: SUPERVISOR QUALIFICATION: GRADUATE EXPERIENCE: 2 YEARS JOB DESCRIPTION: REPORTS TO: Production manager SUPERVISES: Labour force FUNCTIONS: To perform the work given by the production manager. To instruct the labourers for effective work. To supervise production process. To solve problems of workers. To give suggestions for better quality of production. RESPONSIBILITIES: He is responsible for checking the daily performance of labourers.
4. WORKERS: JOB SPECIFICATION: JOB TITLE: SKILLED WORKER QUALIFICATION: 12 PASS
EXPERIENCE: NOT SO IMPORTANT JOB DESCRIPTION: REPORTS TO: Supervisor FUNCTIONS: To perform the given work efficiently and with cooperation. To follow the instructions of supervisor properly. Inform the supervisor immediately for any kind of default. 5. GENERAL MANAGER: JOB SPECIFICATION: JOB TITLE: GENERAL MANAGER QUALIFICATION: M.B.A. EXPERIENCE: 3 YEARS JOB DESCRIPTION: REPORTS TO: Managing director SUPERVISES: Accountants FUNCTIONS: To monitor the work of accountants and supervisors.
6. ACCOUNTANTS: JOB SPECIFATION: JOB TITLE: ACCOUNTANT QUALIFICATION: C.A.
EXPERIENCE: 1 YEAR JOB DESCRIPTION: REPORTS TO: General Manager FUNCTIONS: To maintain proper books of accounts. To clear all legal formalities of tax. To keep tracks of debtors and send letters of reminder. RESPONSIBILITIES: He is responsible for accounting work. 7. MARKETING MANAGER: JOB SPECIFICATION: JOB TITLE: MARKETING MANAGER QUALIFICATION: M.B.A. (MARKETING) COMPUTER KNOWLEDGE EXPERIENCE: 2 YEARS JOB DESCRIPTION: REPORTS TO: Managing Director SUPERVISES: Marketing executive FUNCTIONS: To make strategies regarding marketing. To take marketing decisions. RESPONSIBILITIES: He is responsible for advertisement.
8. MARKETING EXECUTIVE: JOB SPECIFICATION: JOB TITLE: MARKETING EXECUTIVE QUALIFICATION: M.B.A. (MARKETING) WITH GOOD COMMUNICATION SKILLS EXPERIENCE: 1 YEAR
JOB DESCRIPTION: REPORTS TO: Marketing Manger FUNCTIONS: To work as instructed by marketing manager and achieve the target.
FUTURE PLANS
Diversification will be the focus of our efforts. We plan to launch more varieties on the basis of survey conducted by us. There is always some amount of demand called latent demand. We persevere to tap this market. This will help in better market penetration and can enhance the company’s goodwill.
Efficiency shall be in terms of production and distribution activities. At this point of time our machineries comply with the level of technology in the industry. However, we shall upgrade them to achieve mass production through better economies of scale.
The following varieties will be launched by our company: • Low Calorie: These biscuits are in line with the trends in the urban consumer demand. Hence, these will help us to make an entry in the urban markets. Also, these biscuits will not involve any major changes in the production process. Protein Rich: These will be a part of nutritional biscuit segment. Potential customers will be hospitals, dispensaries, health organizations and NGOs, aged people and sports persons. Crackers: They are light snacks that have a good potential among the youngsters in colleges and schools.
•
•
Quality Control
In any organization, profit is the ultimate goal. To achieve this, there are several approaches. Among all these, quality is important for ensuring the survival in the competition. Quality is one of the factors that encourage repeat sales. But extra quality also means extra cost.
Quality is a measure of how closely a good or service conforms to specified standards. Need of Quality Control 1. 2. 3. 4. It provides a yardstick for comparing the quality of goods. It helps in maintaining consistency in quality. Longer shelf life of the products. More flexibility in respect of spare parts.
Strategic areas of Quality Control • Incoming Raw Materials Quality: Our Production Manager shall inspect the materials on their receipt from the supplier. All our suppliers shall be evaluated on a six monthly basis. This will ensure that the material prices, quality, delivery and credit period are in the favour of the organization. • Process Quality:
•
o Hygiene is the important factor as far as food products are concerned. The workers will be required to wash their hands before entering the premises. Also they will wear clean uniforms when they are in the factory. Gloves, facemasks and caps will also be provided. o The premises will be cleaned with disinfectants twice a day. o The machinery shall be cleaned at the end of the day. o All equipments used during production like spoons, utensils etc. shall also be washed and dried. o Pest control shall be carried out once a year. o The store room temperature and humidity shall be maintained at a certain level. o Routine checks in storerooms will be carried out to detect damage at an early stage. o Water proofing of the factory roof shall be done to prevent seepage of moisture during monsoon. o Care will be taken that mineral lubricating oils and greases do not contaminate the food. Final Inspection: The final goods need careful inspection. o They should contain any harmful chemical substances. o Also, they should not contain any harmful microorganisms and extraneous matter.
o The weight, dt of expiry, dt of production etc should also be correct. Checks will be conducted on: o o o o o o Pack weights. Pack appearance. Correctness of coding. Incidence of broken pack seal. Warehouse conditions. Procedures of stock rotation at depots.
SPACE ANALYSIS
SPACE PLANNING
The total area of our site is 1000 sq. yard. The total constructed area is 640 sq. yard and the unobstructed land area is 360 sq. yard. ANALYSIS OF SPACE REQUIREMENT GROUND FLOOR: The total area occupied by the Ground Floor is 640 sq. yard. FIRST FLOOR: The total area occupied by the First Floor is 640 sq.yard. The area occupied by different zones: 1. ENTRANCE: The total area required by entrance is 6 sq. yard. 2. OFFICE AREA: The total area occupied by office premises is of length 5 yard x width 8 yard. 3. RAW MATERIAL STORAGE ZONE: The total area required to store the raw material is of length 5 yard x width 8 yard. 4. BISCUIT MAKING ZONE: The total area occupied to make biscuits is of length 45yard x width 10 yard. 5. PACKING ZONE: The total area required to pack the biscuits is of length 20 yard x width 8 yard. 6. FINISHED GOODS STORAGE ROOM: The total area occupied to store the finished goods is of length 15 yard x width 12 yard. Thus, total area covered is 180 sq. yard. 7. VISITORS ROOM: The total area occupied for visitors is of length 5 yard x width 3 yard. Hence, total area covered is 15 sq. yard.
NAME FACTORY AREA OFFICE AREA
LENGTH WIDTH 50 5 12 8
TOTAL AREA(Sq.yard) 600 40
COST (Rs.)
ENTRANCE OFFICE AREA RAW MATERIAL STORAGE ZONE BISCUIT MAKING ZONE PACKING ZONE FINISHED GOODS STORAGE ROOM VISITORS ROOM
5 5 45 20 15 5
8 8 10 8 12 3
6 40 40 450 160 180 15 OFFICE
FINISH-GOOD STORAGE ROOM
REFRESHMENT ROOM P A C K I N G Z O N E
OPEN AREA
C R E A M M A C H I N E
FIRST FLOOR
VISITORS ROOM
RAW MATERIAL STORAGE ROOM
B I S C U I T M A K I N G Z O N E
OPEN AREA
SECOND FLOOR
BISCUIT MANUFACTURING ZONE
CONVEYOR BELT
STORAGE ZONE
PACKING ZONE
Pic-Speak
MARKETING FEASIBILITY
1. MARKET AND DEMAND ANALYSIS
The aim of marketing is to meet and satisfy target consumers’ needs and wants. Individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and desires. Market and demand analysis in this sense is a critical exercise in marketing. They help in determining nature of the product, pricing, promotion and production decisions. • Secondary data: It has been useful for gauging market competition, supply and prices of materials used in production, incentives, taxes and subsidies that may be available to our manufacturing concern. We made visits to SISI, GITCO, and Gujarat Chamber of Commerce and also made industrial visits to collect the required information. Primary data: We have conducted extensive surveys among potential consumers and retailers. This has been a vital instrument for marketing and production decisions. Our survey has yielded the following results: o o o o o o o o o o o Total demand and rate of growth of demand Demand in different segments of market Income and price elasticity of demand Buyer’s motives Purchase plans and intentions Level of satisfaction with existing products Unsatisfied needs Attitudes towards various products Methods of distribution and promotion Price Supply and competition Marketing activities are all about reaching out to the customers.
•
CONSUMER SURVEY K.S. SCHOOL OF BUSINESS MANAGEMENT QUESTIONNAIRE FOR PROJECT WORK SUBJECT: CONSUMPTION PATTERN OF BISCUITS.
1. NAME: 2. AGE GROUP: ? BELOW 15 ? 15 - 35 ? 35 - 60 ? 60 & ABOVE 3. GENDER: ? MALE ? FEMALE 4. OCCUPATION: ? STUDENT ? BUSINESS ? HOMEMAKER ? SERVICE ? PROFESSIONAL ? RETIRED ? OTHERS……………………….. 5. FAMILY INCOME: ? BELOW 25000 ? 25000-200000 ? ABOVE 200000
6. WHICH BRAND OF BISCUITS DO YOU PREFER? ? ? ? ? ? BRITANNIA PARLE PRIYAGOLD SUNFEAST OTHERS…………….
7. WHICH TYPES OF FLAVOUR DO YOU LIKE? ? GLUCOSE ? SALTY ? CREAM ? DRYFRUIT ? MARIE
8. WHICH SIZE OF PACKS DO YOU BUY? ? SINGLE ? FAMILY PACKS 9. HOW OFTEN DO YOU CONSUME? ? EVERYDAY ? ONCE IN A WEEK ? MONTHLY 10. IF YOU BUY CREAM BISCUITS, WHICH FLAVOUR WILL YOU PREFER? ? ? ? ? ? ? CHOCOLATE PINEAPPLE ORANGE VANILLA ELAICHI OTHERS…………………………………
11. FROM WHERE DO YOU USUALLY BUY? ? ? ? ? PROVISION STORES SUPER MARKETS BAKERY OTHERS…………………………………………………..
12. WHICH FACTORS DO YOU CONSIDER BEFORE BUYING? (RANK IN ORDER OF PREFERENCE) ? PACKAGING ? PRICE ? QUALITY ? BRAND ? ADVERTISEMENT ? FLAVOURS ? AVAILABILITY 8. WHICH KIND OF MEDIA INFLUENCES YOUR PURCHASE? ? ? ? ? ? TELEVISION NEWSPAPERS RADIO MAGAZINES HOARDINGS
? WORD OF MOUTH 9. IF THE FOLLOWING TYPES OF BISCUITS ARE INTRODUCED, WHICH ONE WOULD YOU PREFER? ? LOW CALORIE ? PROTEIN-RICH ? CRACKERS ? IF OTHER, SPECIFY…………………………………………………
THANKS FOR YOUR CO-OPERATION
RETAILER’S SURVEY
K.S.SCHOOL OF BUSINESS MANAGEMENT. QUESTIONNAIRE FOR PROJECT WORK. SUBJECT:
1. NAME: 2. ADDRESS OF SHOP……………………………………………………. ……………………………………………………... 3. TYPE OF RETAIL OUTLET: ? PROVISION STORES ? SUPER MARKETS ? BAKERY ? OTHERS………………………………. 4. WHICH BISCUITS ARE LARGELY PREFERRED BY BUYERS? ? ? ? ? ? GLUCOSE CREAM SALTY DRYFRUIT MARIE
5. WHICH BRAND OF BISCUITS IS MOST PREFERRED BY PEOPLE? ? ? ? ? PARLE BRITANNIA SUNFEAST PRIYAGOLD
6. WILLINGNESS OF CUSTOMERS TO TRY NEW BRANDS: ? WILLING ? UNWILING ? INDIFFERENT
7. WHICH SIZE OF PACK IS PURCHASED BY CUSTOMERS? ? 50gm - 150gm ? 150gm - 250gm ? 250gm - 500gm 8. WHICH FACTORS ARE CONSIDERED BY BUYERS BEFORE PURCHASING? (RANK IN ORDER OF PREFERENCE) ? ? ? ? ? ? ? PRICE QUALITY BRAND ADVERTISEMENT FLAVOURS PACKAGING AVAILABILITY
9. WHICH KIND OF MEDIA INFLUENCES THE SALES? ? ? ? ? ? ? TELEVISION RADIO NEWSPAPER MAGAZINES HOARDINGS WORD OF MOUTH
10. WHICH NEW VARIETY OF BISCUIT WOULD ACCORDING TO YOU IS PREFERRED BY THE CUSTOMERS? ? ? ? ? LOW CALORIE DIGESTIVE PROTIEN- RICH IF OTHER, PLEASE SPECIFY………………………………
THANKS FOR YOUR CO-OPERATION
1. TYPES OF BISCUITS
40 30 20 10 0 1 13 37 28 13 GLUCOSE SALTY 9 CREAM DRY FRUIT MARIE
ANALYSIS: On the basis of the above data, it can be analyzed that Glucose is the most preferable variety in the market. Cream biscuits are second in popularity. Salty & Marie have nearly the same consumer preference. They are followed by dry fruit biscuits.
2.
BRANDS OF BISCUITS PREFERRED
12% 15% 12%
29%
BRITANNIA PARLE PRIYA GOLD SUNFEAST
32%
OTHERS
ANALYSIS: From the survey done by us, we conclude that Parle is the most preferred brand all over the country. While Britannia is slightly behind. Then it is followed by Sunfeast and Priyagold and others which include Windsor, Rajagold, etc.
3. PREFERRED PURCHASE CENTRES
PROVISION STORES 41% SUPER MARKETS BAKERY 23% OTHERS
9% 27%
ANALYSIS: From the evaluation of survey it is clear that provision stores form the biggest share of the market. And then comes bakery, supermarkets and other small places like stalls, hand-carts at railway stations, kitlies, etc.
4.
FREQUENCY OF PURCHASE
18%
22% EVERYDAY ONCE IN WEEK MONTHLY 60%
ANALYSIS: From the above data we can see that most of the people purchase biscuits once in a week. The purchase cycle for others is daily and monthly purchase.
5.
MEDIA VEHICLE
35 35 30 25 20 15 10 5 0 1 5 15 10 15 20 T.V. RADIO NEWSPAPER MAGAZINE WORD OF MOUTH HOARDINGS
ANALYSIS: Television is the main media vehicle for advertisement. Hoardings form the second largest part for advertisement. The other two sources of advertisement are newspaper and word of mouth. And the least preferred media vehicles are magazine and radio respectively. 6. PREFFERED FLAVOUR
9% 15%
21%
CHOCOLATE VANILLA ORANGE PINEAPPLE
14% 22%
19%
ELAICHI OTHERS
ANALYSIS: In above graph, different flavours of cream biscuits preferred by consumers are stated. From which we conclude that orange flavour is mostly preffered by people. Chocolate comes next which which shares somewhat same market share as of orange. Vanilla is the next choice of consumers. Then comes Elaichi and Pineapple which also shares somewhat same amount of market share. Other flavours like strawberry, mango, etc. 7.
FACTORS AFFECTING BUYING DECISION
25 20 15 8 10 5 0 5 14 17 18 21 17 PRICE QUALITY BRAND FLAVOUR PACKAGING AVAILIBILITY ADVERTISEMENT 1
ANALYSIS: Majority of buying decisions of consumers are based on flavours. Brand preference is the next choice for consumers for purchase. Quality and Advertisement share equal part of purchase decisions. Price is the next decision making aspect for consumers. Packaging and availability are the least factors for buying decisions.
8.
FUTURE ACCEPTIBILITY OF NEW VARIETY OF BISCUITS
18%
25% LOW CALORIE PROTIEN RICH CRACKERS OTHERS 39%
18%
ANALYSIS: We have found that people are health conscious. We found that most of the consumers would like to buy protein rich biscuits if they are introduced in the market. Their next choice was low calorie biscuits. Crackers and other biscuits like digestive, were their next alternate choices.
1.
PRICE DECISIONS Price is one element that produces revenue. Other elements of marketing produce costs. Price communicates to the market the company’s intended value positioning of its product We have considered a six step procedure for determining the prices of our products.
• Selecting the pricing objective For our glucose, salty, dry fruit and orange biscuits the major pricing objective is survival. This is due to the fact that these biscuits face intense competition. This objective is short run in nature. Further value additions shall be pursued in the long run.
For the choco vanilla biscuits, a policy of market penetration pricing is planned. These biscuits are an innovation of KING biscuits. The market of these biscuits is highly price sensitive. Also a low price will discourage potential competition.
• Determining demand Each price will lead to a different level of demand. This will have a different impact on our marketing objectives. Biscuits are products which are bought frequently in nature. Buyers are hence price sensitive. The price elasticity of demand is relatively elastic in nature. • Estimating cost Demand sets a ceiling on the price. Costs set the floor. Any company wants to charge a price that covers its cost of producing, distributing and selling including, a fair return. Our costs can change with production skill and experience. Our objective shall be to bring the final cost projections into the target cost range. This range shall include the price at which our products will be sold. • Analyzing competitors costs, prices, and offers We shall first consider our nearest competitors price. We are new entrants in the market. Hence the prices and offers of our products shall be more or less governed by our competitors. • Selecting pricing a method We have adopted the Markup pricing method. The price of each product will hence consist of variable costs, fixed costs and percentage markup on sales. • Determining the final price We have considered additional factors including the influence of other Marketing mix elements on price for determination of our price.
2. DISTRIBUTION
Our aim shall be to establish channels of different target markets and aim for efficiency, control, and adaptability. The following charts show distribution and flow of goods, payments, information and promotional activities: Physical flow:
SUPPLIERS MANUFACTURER AGENTS WHOLESALERS RETAILERS
Significance: Distributors in the distribution chain will be a vital link to the market. Our trade promotion activities will focus on motivating the distributors. This chain aims primarily at savings in costs and maximum market coverage. Credit Policy: Our agents will have the powers to grant one month credit period to the wholesalers and retailers. Salesforce: Three salesmen will manage the distribution activities. Their primary role shall be contacting and maintaining relations with the members of the distribution chain. Mode of operation: The wholesalers will assess the demand of the products through the retailers. Accordingly, they will place the order of goods with the agents. The agents will inform the company about the quantity and price of the order.
3. SEGMENTATION A market segment consists of a group of customers who share a similar set of needs and wants. In this sense we have identified the segments and have decided which ones to target. The result will be better designs, prices, distribution and services to customer.
• Geographic Segmentation
Gujarat shall be our niche market. It has a distinct culture, set of needs and a prosperous economy. Hence it has a good profit and growth potential. • BISCUIT GENRE Glucose Salty Orange Choco Vanilla Dry Fruit • BISCUIT GENRE Glucose Salty Orange Choco Vanilla Dry Fruit Demographic Segmentation AGE GROUP ( in years) 1-12 & 50 onwards 13-30 5-30 5-30 15 onwards INCOME LEVEL Low – lower middle Lower middlemiddle Lower middlemiddle High High SEQUENTIAL SEGMENTATION Price oriented customers Price oriented customers Price and quality oriented First time prospects Sophisticates
Behavioral Segmentation OCCASION VARIABLES Breakfast, snacks Snacks Snacks Get-togethers Get-togethers
4. PROMOTION Promotion includes all the activities that a marketer undertakes to satisfy his customers, stake holders and distributors. • Advertising For marketing biscuits advertising is an effective medium to disseminate messages and build a strong brand preference. Biscuits are commodity like products. Hence a high frequency of advertising is key to a differentiated brand image. Objective
Since all the products are new in the market, informative and persuasive advertising will create brand awareness and market penetration. Budget The budget will form a considerable part of preliminary expenses in the first five years. Extensive campaigns in different parts of the state will involve an outlay of Rs. 958660 in the first year. Different media have different cost structures. To manage campaigns across varied media, we plan to target specific age groups and niche areas like schools, colleges, etc. Campaign o Core selling propositions. Biscuit genre Glucose Salty Orange Choco Vanilla Dry Fruit Appeal Health and Growth Taste Tangy and Creamy Curiosity due to product uniqueness Richness and Health
o Media Vehicles: Newspapers: NAME MONTHLY TOTAL COST SANDESH Twice a month Surat,Baroda,rajkot,bhavanagar,ahmedabad 113110 678660 Hoardings: NAME Bus stand RENT/ MONTH 45,000 MONTHS 2 months NO.OF TOTAL HOARDINGS COST 2 180000 FREQUENCY PLACE
Advertising (painting) on Bus: NAME S.T BUS A.M.T.S BUS TOTAL TOTAL COST 523000 477000 100000
• Sales Promotion Whereas our advertising activities will communicate a reason to buy, the sales promotions will offer an incentive to buy our products. Objective Encourage trial among potential customers. Tools Coupons: They will be enclosed in the biscuit packets as well as inserted in the newspapers. ? Prices: Contests in colleges and schools will reward the winners in the form of gift hampers of our biscuits. ? Tie-in promotions: we shall team up on coupons and contests with companies producing complementary products like tea, coffee, milk, etc. ?
• Public relations: The aim shall be to adopt positive programmes to build goodwill in the market. Objective To build awareness by placing stories in the media. This will bring attention to our products and build their creditability by communicating messages in an editorial context. PR vehicles ? target the youth. ? build the company’s image. Speeches: We will participate in trade associations to Events: Contests, competitions and road shows to
5. COMPETITION The biscuit industry is a fast moving consumer goods industry. It is characterized by fierce competition, change in customer tastes and continuous product innovation. The market share of the competitors is as under: COMPANY NAME Britannia Industries Surya Foods Priya Food Products Glaxosmithkline Consumer Healthcare Modern Food Industries Harinagar Sugar Mills Shah Foods Shangrilla Food Products TOTAL Total For Sample 58 Companies Imports MARKET SHARE 2004-05 36.37 6.72 0.97 0.42 0.29 0.03 0.02 0.01 46.07 91.08 0.11
As far as the competition is concerned, our company is in the ‘introduction stage’. Promotional expenditures will be high to boost sales and brand awareness. Our aim shall be to target those consumers who are able and willing to buy the products. The timing of the launch of our product is also key to making inroads in the competition. We have therefore decided Christmas as the occasion for the launch. Our choco vanilla biscuits have a pioneer advantage. They are a result of product innovation in the market. This is expected to enhance our brand image by appealing to the curiosity of consumers.
SWOT ANALYSIS
The crux of this analysis is that we need to Sustain our STRENGTHS Offset our WEAKNESSES Capitalize on OPPORTUNITIES. Mitigate the THREATS. STRENGTHS ? One of our strengths is that we cater to different target markets by producing quite a variety of biscuits. ? Our commitment of being consistent in providing high quality. ? To endeavour to bring innovative products like Choco-Vanilla considering the consumers’ latent demands. WEAKNESS ? Limited distribution network, only within Gujarat. OPPORTUNITIES ? To develop the product line. ? Expansion of distribution network. ? To achieve brand recognition on a wider scale. THREATS ? Competition faced from big players like Parle, Britannia etc. ? Lack of advanced technology being used by them.
doc_756463846.doc
In the United States and sometimes in Canada, it is a small, soft, leavened bread, somewhat similar to a scone, though generally softer and fluffier. Although yeast may be used as a leavening agent, it is often replaced or supplemented with baking powder or baking soda.
CERTIFICATE
This is to certify that members of Group K of Third Year M.B.A. of K.S. SCHOOL OF BUSINESS MANAGEMENT & RESEARCH have successfully completed their Feasibility Report on BISCUIT for academic year 2006-07 and have duly submitted to the institute.
Date of submission: Project Guide Name: Prof. ISMAIL BOOTWALA Signature: K.S. SCHOOL OF BUSINESS MANAGEMENT GUJARAT UNIVERSITY AHMEDABAD-380009.
ACKNOWLEDGEMENT
An acknowledgement is something, which is so often overlooked by people who read a project. But for us it is the expression of heart-felt gratitude towards all those people who helped us throughout the project. It is true that the outside world is quite different from our perception. Along with the theoretical knowledge acquired at the college, it is of prime importance to have the practical knowledge and this has been possible only through the support, guidance and motivation provided by different persons. Hence, our project bears the imprints of many people. We are greatly indebted to Mrs. Sarla Achuthan, the Director of K.S. School of Business Management, who gave us this opportunity of involving ourselves in such projects. We were also provided immense guidance from our project guide Mr. Ismail Bootwala right from the inception till the completion of the project. He has always been there to show us the right path at every junction of our journey by providing us invaluable inputs and feedback. We are thankful and appreciate the help of: ? Mr. Bhavesh Trivedi of “LAO MORE BISCUITS PVT. LTD.” (A Contract Manufacturing Unit of ‘Parle Ltd.’) ? Imperial Bakery, Lal Darwaja. ? Italian Bakery , Lal Darwaja. ? Moti bakery, Lal Darwaja. ? Rajagold Biscuits, Naroda. ? SISI, Ashram road. ? Gujarat Chamber of Commerce. ? Nayan Bramhabhatt, insurance agent.
PROJECT AT GLANCE
NAME OF UNIT ADDRESS : : DELIGHT BISCUITS ADARSH CHEMICALS, OPP. SHAHWADI BUS-STAND, RAMDEV ESTATE LANE, NAROL ASLALI ROAD, AHMEDABAD- 382405. PRIVATE LIMITED. SMALL SCALE INDUSTRY 1250Kgs PER DAY IN 1ST YEAR 25% OF 750 TONNES IN 1ST YEAR 55% OF 750 TONNES IN 2ND YEAR 60.67% OF 750 TONNES IN 3RD YEAR RURAL AND SEMI URBAN AREA Rs. 9219000 2YEARS & 8 MONTHS 12465064 0.61 AGMARK POLLUTION CONTROL FACTORY ACTS’ LINCENCE FOOD & DRUG CONTROL
INCORPORATION STATUS OF INDUSTRY PRODUCTION CAPACITY
: : :
TARGET MARKET TOTAL INVESTMENT PAYBACK PERIOD NET PRESENT VALUE ARR LICENSES
: : : : : :
COST OF PROJECT
STATEMENT SHOWING COST OF PROJECT PARTICULARS AMT (Rs. In lacs) LAND & BUILDING PLANT & MACHINERY FURNITURE & FIXTURES VEHICLES MISC FIXED ASSETS PRELIMINARY & PRE-OPERATIVE EXPENSES PROVISION FOR CONTINGENCY MARGIN MONEY FOR WORKING CAPITAL TOTAL COST OF PROJECT
50 32 0.71 8 1.48 13.31 5.55 111.05 4 115.05
MEANS OF FINANCE
PARTICULARS WORKING CAPITAL LOAN TERM LOAN TOTAL MEANS OF FINANCE TOTAL (Rs.in lacs) 80.54 34.51 115.05
ASSUMPTIONS
1. We have considered 300 working days of production in a year. 2. For the initial year first 6 months have been taken for pre-operative and preincorporation. Therefore the production begins from 1/10/2007. 3. We acquire the licenses from the prescribed authorities. 4. Land is purchased at the rate of Rs.2000 per sq. yard and construction cost of the unit is Rs.2500 per sq. yard. 5. Contribution to Provident fund is made at 12%. 6. Workmen compensation fund is at 10%.
INTRODUCTION
Baking industry:
Baking industry occupies an important position among Indian food processing industries with an annual turnover of about Rs.3000 crores. The spurt in the production of bakery products could be attributed to their advantages over other processed foods. Bakery products are ready to eat, convenient to use and possess satisfactory nutritional quality.
Pic-Speak
History of Biscuit industry:
Biscuits. We all love them don't we? But what exactly is a biscuit? Biscuit means “twice-cooked” in French, but don't let that put you off. In other version, we can say a biscuit is a hard baked product like a small flat cake which in North America may be called a "cookie" or "cracker".While in American English, a "biscuit" is a small form of bread made with baking powder or baking soda as a leavening agent rather than yeast. Generally, Australians use the British meaning of "biscuit" (colloquially referred to as 'Bekah') for the sweet biscuit. The Biscuit industry in India comprises of organized and unorganized sectors. Bread and Biscuits form a 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 same, however, value of the biscuits is more than bread. Bakery products once considered as sick man’s diet, have now become an essential food items of vast majority of population. Though bakery industry in India has been in existence since long, real fillip came only in the later part of the 20 th century. The contributing factors were urbanization, resulting in increased demand for ready to eat profiles at reasonable costs etc. `` Biscuits are a household name these days. The markets are flooded with biscuits of every taste for every age group. Sometimes it would be difficult for us to decide on what to go buy. These make good combinations with a hot cup of tea or a coffee. They make a quick and a tasty snack any time and in any situation. Company Logo
Glucose biscuits are mainly the favourites of many as their intake charges them up. Especially if a person is suffering from Low BP, then glucose biscuits act as energizers in emergencies. Although there are many regional varieties, both sweet and savory, "biscuit" is generally used to describe the sweet version. Sweet biscuits are commonly consumed as a snack and may contain chocolate, fruit, jam, nuts or may even be used to sandwich other fillings. Savory biscuits, more often called crackers or crispbreads, are plainer and commonly eaten with cheese following a meal. The consumer food industry mainly consists of ready-to-eat products or ready-to-cook products such as pasta products, cocoa based products, bakery products, biscuits, soft drinks, etc. Bakery industry in India is probably the largest of the processed food industries, production of which has been increasing steadily in the country. The two major bakery industries, viz., bread and biscuits account for about 82% of the total bakery products. The annual production of bakery products includes bread, biscuits, pastries, cakes, buns, rusk, etc., most of which are in the unorganised sector.
SELECTION OF PROJECT
Scope for development
Biscuit making in India was limited to small bakeries. Also, not everyone accepted biscuits as snacks. Biscuits were pre dominantly consumed by the elite class. It was
during the British rule in India that this industry started flourishing. It has been a custom England to consume biscuits during tea time in the evening Today, globalization has made India a melting pot of cultures. Though biscuits have not been an integral part of our daily routines, now it is the most preferred snack. Moreover, they are being promoted as ‘energy and nutritious food’. Hence this industry is flourishing on a wide market base. The increasingly fast-paced nature of consumer lifestyles has created a cash rich but time poor society. The focus on formal meal times continues to diminish, with "on-the-go" eating and snacking becoming increasingly popular. Competition is also revolutionising the production and marketing practices. Marketers are attempting to come with more uses of biscuits. As a result, biscuits are now part of our festivals, fitness regimes, daily snacks, diet for the ill etc. The scope for development is huge. Biscuits are in the process of evolution as practical and ‘ready to eat’ food.
Business Environment Political Environment
Political stability goes a long way towards ensuring steady progress of an industry. Frequent changes in the central or state government’s leads to changes in industrial policies. Every ruling party has a unique political ideology. Hence, with a change in the government, changes in budgets, tax relief measures, subsidies, tax structures and holidays, and licensing policies may follow.
Economic Environment
India is the second largest producer of biscuits after USA. Competition Hindustan Lever and ITC have now forayed into the mass biscuit market. While ITC has launched its glucose brand, Sunfeast, HLL has decided to differentiate its product, Modern ‘Energy’ Biscuits, by using wheat and soya as ingredients. Importantly, both
ITC’s and HLL’s new offerings are priced at Rs 4 for a 100 gram pack, the same level as Parle G and Britannia’s ‘Tiger’ glucose biscuits. HLL and ITC have a massive distribution reach. This new development would clearly have a significant impact on the market shares of both Parle and Britannia. In case the taste of the new products do not go down very well with consumers, the already established players may get some breathing space, but it will be only a matter of time before that gets corrected and the pressure will soon be back on. Structurally, the entry of players such as HLL and ITC in the mass biscuit market is bound to affect the dominance of Britannia in the biscuits market. What’s more, competition from regional players such as Surya Foods, known for its ‘Priya Gold’ range of biscuits, has also increased. It certainly doesn’t help that the company has just had a change in leadership. Importance of Distribution Besides heritage and price points, distribution is crucial to the success of any consumer goods brand. Even though Kellog’s launched Chocos at Rs 5/pack, its distribution strategy was not up to the mark. Parle has 1,500 wholesalers catering to 4,25,000 retail outlets. Chocos were later taken off the shelves. Biscuits require a mass distribution network and Kellogs had limited itself to the upmarket outlets with its premium-priced cereals. Parle over the years has built a robust distribution network. For the fast moving consumer goods industry, the packaged biscuit basket has emerged as a winner with all other product lines like soaps, detergents, hair oil, packaged tea biting the dust. The quick, teatime snack has zoomed into a Rs 2,500 crore industry clocking 3-4% growth annually.
Per Capita Consumption The per capita consumption of biscuits in India is still very low. On an average Indians eat 0.48 kg every year, while Americans eat 4 kg. Per Capita Expenditure on Biscuits Americans depend on biscuits as they have very few ready-to-eat food items for snacks. They spend $6,897m on 1134.6m kg of biscuits every year, outpacing both India (490m kg valued at $583m) and China (180.5m kg valued at $406.3m). Share of Organised and unorganized Sectors The organised biscuit market in India is estimated to be over Rs 3000 crore. Britannia, the market leader, is said to have about 45 per cent market share, with Parle close behind at about 30-35 per cent. The unorganized sector produces around 70% of biscuits.
Contribution of Small Scale Industries Over 79% of the biscuits are produced by this sector consisting of both factory and nonfactory production. Social Environment In mid-income households, kids averse to dal chawal are often given glucose biscuits to make up for the cereals. But surprisingly, Indians eat over three times more branded biscuits (490m kg) than the Chinese (180.5m kg). Given that both India and China have conventional food habits where traditional snack items like idli, dosa, dhokla, samosa have a fair share, Indian consumers’ appetite for biscuits is enormous. Globalisation is affecting the Indian lifestyle in a big way. They are practical solutions for a quick bite. Even in the rural areas, biscuits are very popular. Mass production and distribution efforts are giving a boost to the industry sales.
Legal Environment The following are the acts that are to be complied with by the company: • Indian Factories Act. • Industrial Disputes Act. • Payment of Gratuity Act, 1982. • Payment of Bonus Act, 1965. • The Employees Provident Fund Act, 1952. • Employees State Insurance Act. Also, all food industries have to follow the laws stated under ‘The Food Adulteration Act’.
PRODUCT PARAMETERS
THE PRODUCT: ‘Biscuit’. BRAND NAME: Delight Biscuits COMPANY LOGO:
PRODUCT LINE: Product line: • • • • • Glucose biscuit Salty biscuits Orange cream biscuits Choco-vanilla biscuits Dry fruit biscuits
Product line addition in future: • • • Low calorie Protein-rich Crackers
PRODUCT SIZE AND SPECIFICATIONS: SR.NOVARIETY 1 GLUCOSE BRAND NAME SIZE (in gms) Gluco King 50 100 500 100 250 100 200 100 100
2 3
SALTY DRY-FRUIT
Fantasy Magic Mix
CREAM BISCUITS 4 ORANGE Tangy orange 5 CHOCO-VANILLA QUALITY ASPECT:
Quality in the broadest sense, covers activities that help to keep production running smoothly and efficiently and ensure that the finished goods are within predetermined specifications. We try to keep a strict check on the raw materials before they are used, checks at critical stages during manufacturing and checks on finished products. It is not common for biscuit to be sold with precise claims of nutritional values, but where there is the case of Quality Control, adequate samples must be taken and checked to substantiate claims made on the labels of the same.
Special emphasis is to be laid on hygienic impositions so as to retain its Quality Standards. The manufacturing ingredients and the finished goods are to be stored at safe and hygienic place free from insects, rodents and other toxic substances. Also precautionary measures are to be taken by the workmen to safeguard the Quality Standards.
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Technical feasibility
DETAILS OF RAW MATERIALS
• MAIDA: Maida is refined wheat flour. It is the principal component of biscuits. It should be prevented from moisture, insects and dust. Proper measures have to be taken to maintain the quality of maida. Insect repellents should be used as a precaution. A product is an identity of a company. It is born out of technical activities.
• GHEE: Vanaspati ghee is used in the production to make the dough soft. They also give a good flavour to the biscuits. It acts as a binding material for the ingredients in biscuits. • SUGAR: It sweetens the biscuit dough. We shall be using grinded sugar. This is because grinded sugar mixes easily and uniformly in the dough mixture. Sugar also acts as a preservative. • BAKING POWDER: Also called Sodium Bicarbonate, it helps in the baking process. • COLOURS: They are additives, which help to identify the flavour of the cream. We shall use permitted natural and synthetic food colours (E102, 124,160b), which are not harmful to health. These colours are permitted by the • ESSENCE: We will be using chocolate, vanilla, butter and orange essence. Essence is an artificial flavouring agent. It is generally used in all kinds of biscuits. • DOUGH CONDITIONER • SALT • SODIUM METABI SULPHATE • EMULSIFIERS: The primary function of these compounds is to stabiles the mixture. There are various ingredients which are oil based or water based. The emulsifiers hence stabilize these ingredients.
Production Processes
Purchase of raw materials:
This is the first stage in the production process. The materials are brought to the production unit by roadways. They will then be unloaded in the storeroom of the factory. The storeroom will have hygienic and clean to ensure longer shelf life of the materials. Mixing the ingredients: Right proportion of all the ingredients is crucial for maintaining the product quality. In this stage, all the ingredients are poured in the dough mixer. The design of the blades of the machine helps in homogeneous mixing of the ingredients. The action is repeated until the designed uniformity and consistency of dough-mix is obtained. The dough determines the baking quality of the biscuit. When the dough is soft and well kneaded, it is ready to be transferred to the moulding machine. However, in case of salty biscuits the dough is kept for fermentation for about 10 hrs. In case of Dry Fruit biscuits, dry fruits cut into small pieces are also added after kneading the dough. For Choco vanilla biscuits, chocolate chips are added after kneading. Moulding the biscuits: The biscuits are given a pre determined shape and design. The design and shape forms the identity of the company and its biscuits. The dough is reduced to sheets of pre set thickness. The Rotary moulder in this sense is used for soft biscuits. Thereafter, dough sheet is transferred for cutting and moulding. The scrap is transferred back to the dough mixer. This scrap is the extra dough that is left behind after the biscuits are moulded and shaped.
Baking: The conveyer takes the moulded dough to the oven. The baking powder helps in the process. The temperatures in the oven are pre set. Also, they have to be maintained to ensure perfect baking. The moulded dough passes through various stages of temperatures.
The lower part and the upper part of the dough are baked at different degrees. A controller maintains these temperatures. The colour of dough changes to light brown. The biscuits also gain their characteristics i.e. crispness. For production of cream biscuits, they are diverted to the Cream Sandwich Machine. Here, the cream is poured on the base biscuit. Thereafter, another piece is placed on the layer of the cream. For salty biscuits, salt is sprayed on the upper portion of the biscuits. Thereafter, oil is sprayed to facilitate adherence of the salt on the biscuit surface. Biscuit cooling: The conveyor takes the biscuits to the packaging machine. During this passage, the biscuits cool down. Cooling is necessary because the moisture is given out. This retains the freshness of the biscuits in their packaging. Hence, cooling conveyor & cooling fans placed above conveyor belt cool the baked biscuits. Packaging: The biscuits are diverted from the conveyor belt to the packaging machine. A narrow panel in the machine stacks the biscuits. The machine is essentially automatic. The person employed on this machine will be technically proficient. He has to detect & remove the broken & burnt biscuits. The machine will automatically count 7 regulate the no. of biscuits to be included in each pack. Our packaging will have the following contents: • • • • Brand & company name Slogan & company logo Details of ingredients Date of manufacture & expiry
• • • • •
Batch no Net Weight Nutrition table Product bar code Price
The packaging will have an attractive colour & design. Also, they will be water proof. The size of the packs will be easy & convenient to handle. Chances of pilferation will be reduced through heat sealing.
Process Control
Process control is a process beginning from the stage of dispatch of raw materials from the storeroom to packaging of the finished goods.
Planned production process increases the scope of efficiency. It helps in the analysis of the process to detect and remove those variables that may increase costs. Process control determines minimum movement of men, materials and other resources. It studies the production process in detail to detect and correct unnecessary movements. The following are the process flowcharts: Production process of Salty biscuits:
Production process of glucose, orange, chocovanilla and dryfruit biscuits:
RECIPES OF BISCUITS:
1. GLUCOSE BISCUITS
PARTICULARS MAIDA GHEE SUGAR BAKING POWDER VANILLA ESSENCE WATER DOUGH CONDITIONER SALT SODIUM BI-CARBONATE SODIUM METABI SULPHATE EMULSIFIER ACTUAL QUANTITY 50 30 20 0.5 0.13 25ltr 0.47 0.33 0.5 0.15 0.33
TOTAL
102.41
RECIPE: Maida, sugar, ghee, vanilla essence and other ingredients are mixed with water to make the dough. The dough is then rolled into a sheet and moulded and cut into desired shape. Then they are passed on to the oven through the conveyor belts. The biscuits are ready for packaging after cooling 2. SALTY BISCUITS:
PARTICULARS MAIDA GHEE SUGAR BAKING POWDER BUTTER ESSENCE WATER EMULSIFIER SODIUM BI-CARBONATE SODIUM METABI SULPHATE DOUGH CONDITIONER SALT TOTAL ACTUAL QUANTITY 60 28 11.36 0.45 0.2 25 lt. 0.33 0.5 0.15 0.47 2 103.96
RECIPE:
Maida, sugar, ghee, and 25ltrs of water are added to form the dough. Then the dough is kept for the fermentation process for one day. Then other ingredients are mixed into it. Then the dough is passed to the forming zone. The biscuits once baked are then cooled and then oil is sprayed and salt is sprinkled on it to give them salty taste. 3. ORANGE CREAM BISCUITS:
PARTICULARS MAIDA GHEE SUGAR CREAM WATER (ltr) ORANGE ESSENCE SODIUM BI-CARBONATE SODIUM METABI SULPOHATE EMULSIFIER SALT DOUGH CONDITIONER TOTAL ACTUAL QUNTITY 40 21 25 15 20 0.12 0.5 0.15 0.3 1.5 0.4 103.97
RECIPE: Maida, sugar, ghee, orange essence and other ingredients are mixed with water to make the dough. The biscuits are then prepared in usual process. Now the orange cream is placed between two biscuits using Cream Sandwich Machine. 4. CHOCO-VANILLA CREAM BISCUITS:
PARTICULARS MAIDA GHEE SUGAR CREAM CHOCO-CHIPS VANILLA ESSENCE SALT SODIUM BI-CARNONATE SODIUM METABI SULPHATE DOUGH CONDITIONER WATER ( ltr) EMULSIFIER TOTAL ACTUAL QUANTITY 35 20 25 15 8 0.13 1.5 0.4 0.15 0.3 20 0.25 103.73
RECIPE:
Maida, sugar, ghee, vanilla essence, choco chips and other ingredients are mixed with water to prepare the dough. Then the biscuits are made in the usual manner. And then using Cream Sandwich Machine, vanilla cream is placed between two biscuits. 5. DRY-FRUIT BISCUITS:
PARTICULARS MAIDA GHEE SUGAR KAJU & PISTA SALT SODIUM BI-CARBONATE SODIUM METABI SULPHATE EMULSIFIER DOUGH CONDITIONER WATER (ltr) ESSENCE TOTAL ACTUALQUANTITY 50 30 10.72 10 1 0.5 0.15 0.33 0.47 25 0.13 103.3
RECIPE: Ingredients such as Maida, ghee, sugar, salt, cashew-pista and others are mixed in order to form dough. Then the biscuits are prepared in usual process.
Machinery List and Description
Details of Biscuit Baking Equipments & Machineries Pre Baking Rotary Molder Dough Mixer Rotary Cutting Machine Mixture machine Baking Gas fired Baking Oven Post Baking Cream Sandwich Machine Stripper Conveyor machine Packing Table Unit
Rotary Molder
Features and Characteristics of Rotary Molder:
• • • • • • • •
Heavy duty Mild Steel body. Heavy Casting grooved Roller (forcing roller) Gun Metal moulding Roller with engraved design as required Vulcanised Rubber Roller with Shore Hardness of 60 to 65 properly ground. Stainless Steel Hopper. Geared motor. AC Frequency Controller for synchronizing speed with the panner web conveyor and with the oven band speed. One endless bylon conveyor
Description Rotary Moulder : Rotary Moulder unit for producing all types of Soft Dough Biscuits such as Glucose, Coconut, Milkbikkis, Butterbite etc. This machine consists of C I forcing roller, gunmetal moulding roller and a rubber pressure roller. Roller speeds are synchronized mechanically or electronically. A Control panel is provided for machine operation.
Specifications Rotary Moulder :
Sl. Moulder Die Size ( Length x Dia) Inch No. 1 33 x 010 or 33 x 08 For 33 plant
HP Geared Motor 5.0
Dough Mixer
Description Dough Mixer: 1. The mixing of the raw materials is achieved by two specially made blades (often sigma type) set on in a "W" shaped trough, the rotation of one blade being opposite to that of the other. The bottom of the trough is curved upwards to from a ridge between the blades. 2. The design of the blades helps in homogeneous mixing of the ingredients. The action is repeated until the designed uniformity and consistency of dough-mix is obtained. 3. The top lid can be opened or closed manually. 4. Inner walls are from S.S. Sheet.
5. After getting the ingredients mixed the mixing bowl can be tilted automatically and the dough mass can be transferred by means of pulsating motion of th emixing blades. The machine will also be provided with control panes fitted with a timer switch. Specifications: 100 Kg Mixer 1 Sac of 90 Kg Flour per Sack 2000 Kg 415HP / 10 HP
Model
Capacity Machine Weight Two-SpeedMotor
Rotary Cutting machine with gauge roller
This machine will be capable of producing all types of hard dough, snacks biscuits and have the following attachments: 1. Feeding Table Conveyor to 1st Gauge Roller. 2. First set of chilled C I Gauge Roller 3. Intermediate take-off conveyor. 4. 2nd set of chilled C I Gauge Roller 5. Intermediate take-off conveyor. 6. Final set of chilled C I Gauge Roller 7. Recovery Conveyor & Corrugating conveyor. 8. Scrap release conveyor. 9. Scrap lifting conveyor. 10. Scrap transfer conveyor. 11. Side scrap return conveyor. Planner web conveyor adjustable. 1. S.S Milk spray hood, Milk Container, excess Milk collecting tray & Milk spray nozzle. 2. One set plastic cups filled with M. S. Roller and one Rubber Roller A separate drive unit will drive the whole machine with a geared motor. The complete machine will be manufactured from M S rolled steel section casting etc. A C frequency controller & master controller for the running of complete machine including separate control panel for operating the machine.
Baking Equipments
Gas Fired Baking Oven The oven bakes the biscuits at varied temperatures. The base and the posterior of the biscuit is baked at different temperature. Also, the process of baking takes place at the following temperatures: Temperature of the upper part of the biscuit 160 250 255 251 242 197 Temperature of the lower part of the biscuit 135 190 245 226 224 142
Post Baking Equipments Packing Table Unit
This conveyor will be provided with guides and biscuits will move through rows for easy lifting by packing personnel. This conveyor will have a separate drive with frequency controller geared motor.
Post Baking Equipments Stripper conveyor unit
The conveyor is placed immediately after the exit end of the baking oven for the operator to sort out poor quality biscuits for placement on to a cross conveyor.
Cream Sandwich Machine
Description: Automatic cream sandwich machine of production capacity 200 to 400 pc. (wire cut) Sandwich biscuits per minute, complete with aluminium base plate. All other machine components are from stainless steel. The machine is driven by 2 Hp motor. A separate stacking conveyor will also be provided which is manufacturing by S S and driven by 0.5 Hp motor.
Suppliers of Machineries (1) M/s Thakurdas Narendradas Near jain temple, Fatehpura main road, Vadodara - 390006 (2) M/s KSP Equipment E/ 8 ram kumarmils compound, Saraspur , Ahmedabad – 18 (3) M/s Dinesh Industry Guosaijis vandal, Near madhuram theater, Dhi kata road, Ahmedabad-4 (4) M/s Nagpal Brothers 2789, Joraver shih road, Mori gate, Delhi – 110006.
Suppliers of Raw materials: (1) M/s Bhagwati General Agency Tin darwaja, Ahmedabad - 38001. (2) M/s Banas Treding Company 34, Divya Vasudhara commerse house, Near coart, Mijapure Road,
Ahmedabad - 380001. (3) M/s Devarshan industry ltd. Devarsan house, near jain temple, Ahmedabad -380004. (4) M/s Dekora chemical industry C-192, B.G tower, first floor, Near dilli darwaja, Shahibag road,Ahmedabad.
Suppliers of Packaging: (1) M/s Gujarat Plastic and Paper Bell Baug shopping center, Opp. Railway Station, Baroda. (2) M/s Kalapi Printers 44, Shubhlakshmi shopping center, Station Road, Anand. (3) M/s Dynamic Packaging 216, GIDC Makarpura Industrial Estate, Baroda.
UTILITIES: Water: A boring pump will be used to meet the requirement of water.
Electricity:
Electricity is manly required for machine & office purpose. It is provided by ‘TORRENT POWER AEC LIMITED’. The requirement of monthly electricity is 10000 kWh. Communication: We will use different communication tools like telephone, intercom, computer, and intranet. It will help the managers for better communication with suppliers, distributor & dealers. Requirements: (1) Telephone & intercom For the office purpose one telephone line will be installed & for internal communication we will use intercom. (2) Computers. We will use three computers with internet connection in our office. Drainage & waste disposal: Drainage is provided in the factory layout itself. Wastage in manufacturing process is reused & reproduced and the ultimate wastage which remain after the final process is given to the wastage disposal agency. Storage system: Separate rooms for storage of raw-materials and finished goods are provided.
Manpower Requirement
ORGANISATION CHART
Job Specification and Job Description
1. MANAGING DIRECTOR: JOB SPECIFICATION: JOB TITLE: MANAGING DIRECTOR
QUALIFICATION: M.B.A EXPERIENCE: 5 YEARS OR MORE AS M.D. IN FMCG INDUSTRY AND SHOULD HAVE LEADERSHIP ABILITY JOB DESCRIPTION: FUNCTIONS: To frame long term policies. Handling emergency affairs. Calling periodical meetings. Appointment of managers. Deciding product mix. Approve organization changes. RESPONSIBILITIES: He/she is responsible for implementing policies and converting plans into actions. 2. PRODUCTION MANAGER: JOB SPECIFICATION: JOB TITLE: PRODUCTION MANAGER QUALIFICATION: M.B.A WITH B.E. EXPERIENCE: 5 YEARS JOB DESCRIPTION: REPORTS TO: Managing director SUPERVISES: Production department
FUNCTIONS: To supervise the supervisors. To achieve the production target in specified time period. To coordinate with marketing department. Try to apply innovative methods. To maintain raw material requirements. To ensure the dispatch of finished goods to marketing department. To have a control over the process. RESPONSIBILITIES: Achieving production target in specified time period.
Maintaining prescribed quality norms. 3. SUPERVISORS: JOB SPECIFICATION: JOB TITLE: SUPERVISOR QUALIFICATION: GRADUATE EXPERIENCE: 2 YEARS JOB DESCRIPTION: REPORTS TO: Production manager SUPERVISES: Labour force FUNCTIONS: To perform the work given by the production manager. To instruct the labourers for effective work. To supervise production process. To solve problems of workers. To give suggestions for better quality of production. RESPONSIBILITIES: He is responsible for checking the daily performance of labourers.
4. WORKERS: JOB SPECIFICATION: JOB TITLE: SKILLED WORKER QUALIFICATION: 12 PASS
EXPERIENCE: NOT SO IMPORTANT JOB DESCRIPTION: REPORTS TO: Supervisor FUNCTIONS: To perform the given work efficiently and with cooperation. To follow the instructions of supervisor properly. Inform the supervisor immediately for any kind of default. 5. GENERAL MANAGER: JOB SPECIFICATION: JOB TITLE: GENERAL MANAGER QUALIFICATION: M.B.A. EXPERIENCE: 3 YEARS JOB DESCRIPTION: REPORTS TO: Managing director SUPERVISES: Accountants FUNCTIONS: To monitor the work of accountants and supervisors.
6. ACCOUNTANTS: JOB SPECIFATION: JOB TITLE: ACCOUNTANT QUALIFICATION: C.A.
EXPERIENCE: 1 YEAR JOB DESCRIPTION: REPORTS TO: General Manager FUNCTIONS: To maintain proper books of accounts. To clear all legal formalities of tax. To keep tracks of debtors and send letters of reminder. RESPONSIBILITIES: He is responsible for accounting work. 7. MARKETING MANAGER: JOB SPECIFICATION: JOB TITLE: MARKETING MANAGER QUALIFICATION: M.B.A. (MARKETING) COMPUTER KNOWLEDGE EXPERIENCE: 2 YEARS JOB DESCRIPTION: REPORTS TO: Managing Director SUPERVISES: Marketing executive FUNCTIONS: To make strategies regarding marketing. To take marketing decisions. RESPONSIBILITIES: He is responsible for advertisement.
8. MARKETING EXECUTIVE: JOB SPECIFICATION: JOB TITLE: MARKETING EXECUTIVE QUALIFICATION: M.B.A. (MARKETING) WITH GOOD COMMUNICATION SKILLS EXPERIENCE: 1 YEAR
JOB DESCRIPTION: REPORTS TO: Marketing Manger FUNCTIONS: To work as instructed by marketing manager and achieve the target.
FUTURE PLANS
Diversification will be the focus of our efforts. We plan to launch more varieties on the basis of survey conducted by us. There is always some amount of demand called latent demand. We persevere to tap this market. This will help in better market penetration and can enhance the company’s goodwill.
Efficiency shall be in terms of production and distribution activities. At this point of time our machineries comply with the level of technology in the industry. However, we shall upgrade them to achieve mass production through better economies of scale.
The following varieties will be launched by our company: • Low Calorie: These biscuits are in line with the trends in the urban consumer demand. Hence, these will help us to make an entry in the urban markets. Also, these biscuits will not involve any major changes in the production process. Protein Rich: These will be a part of nutritional biscuit segment. Potential customers will be hospitals, dispensaries, health organizations and NGOs, aged people and sports persons. Crackers: They are light snacks that have a good potential among the youngsters in colleges and schools.
•
•
Quality Control
In any organization, profit is the ultimate goal. To achieve this, there are several approaches. Among all these, quality is important for ensuring the survival in the competition. Quality is one of the factors that encourage repeat sales. But extra quality also means extra cost.
Quality is a measure of how closely a good or service conforms to specified standards. Need of Quality Control 1. 2. 3. 4. It provides a yardstick for comparing the quality of goods. It helps in maintaining consistency in quality. Longer shelf life of the products. More flexibility in respect of spare parts.
Strategic areas of Quality Control • Incoming Raw Materials Quality: Our Production Manager shall inspect the materials on their receipt from the supplier. All our suppliers shall be evaluated on a six monthly basis. This will ensure that the material prices, quality, delivery and credit period are in the favour of the organization. • Process Quality:
•
o Hygiene is the important factor as far as food products are concerned. The workers will be required to wash their hands before entering the premises. Also they will wear clean uniforms when they are in the factory. Gloves, facemasks and caps will also be provided. o The premises will be cleaned with disinfectants twice a day. o The machinery shall be cleaned at the end of the day. o All equipments used during production like spoons, utensils etc. shall also be washed and dried. o Pest control shall be carried out once a year. o The store room temperature and humidity shall be maintained at a certain level. o Routine checks in storerooms will be carried out to detect damage at an early stage. o Water proofing of the factory roof shall be done to prevent seepage of moisture during monsoon. o Care will be taken that mineral lubricating oils and greases do not contaminate the food. Final Inspection: The final goods need careful inspection. o They should contain any harmful chemical substances. o Also, they should not contain any harmful microorganisms and extraneous matter.
o The weight, dt of expiry, dt of production etc should also be correct. Checks will be conducted on: o o o o o o Pack weights. Pack appearance. Correctness of coding. Incidence of broken pack seal. Warehouse conditions. Procedures of stock rotation at depots.
SPACE ANALYSIS
SPACE PLANNING
The total area of our site is 1000 sq. yard. The total constructed area is 640 sq. yard and the unobstructed land area is 360 sq. yard. ANALYSIS OF SPACE REQUIREMENT GROUND FLOOR: The total area occupied by the Ground Floor is 640 sq. yard. FIRST FLOOR: The total area occupied by the First Floor is 640 sq.yard. The area occupied by different zones: 1. ENTRANCE: The total area required by entrance is 6 sq. yard. 2. OFFICE AREA: The total area occupied by office premises is of length 5 yard x width 8 yard. 3. RAW MATERIAL STORAGE ZONE: The total area required to store the raw material is of length 5 yard x width 8 yard. 4. BISCUIT MAKING ZONE: The total area occupied to make biscuits is of length 45yard x width 10 yard. 5. PACKING ZONE: The total area required to pack the biscuits is of length 20 yard x width 8 yard. 6. FINISHED GOODS STORAGE ROOM: The total area occupied to store the finished goods is of length 15 yard x width 12 yard. Thus, total area covered is 180 sq. yard. 7. VISITORS ROOM: The total area occupied for visitors is of length 5 yard x width 3 yard. Hence, total area covered is 15 sq. yard.
NAME FACTORY AREA OFFICE AREA
LENGTH WIDTH 50 5 12 8
TOTAL AREA(Sq.yard) 600 40
COST (Rs.)
ENTRANCE OFFICE AREA RAW MATERIAL STORAGE ZONE BISCUIT MAKING ZONE PACKING ZONE FINISHED GOODS STORAGE ROOM VISITORS ROOM
5 5 45 20 15 5
8 8 10 8 12 3
6 40 40 450 160 180 15 OFFICE
FINISH-GOOD STORAGE ROOM
REFRESHMENT ROOM P A C K I N G Z O N E
OPEN AREA
C R E A M M A C H I N E
FIRST FLOOR
VISITORS ROOM
RAW MATERIAL STORAGE ROOM
B I S C U I T M A K I N G Z O N E
OPEN AREA
SECOND FLOOR
BISCUIT MANUFACTURING ZONE
CONVEYOR BELT
STORAGE ZONE
PACKING ZONE
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MARKETING FEASIBILITY
1. MARKET AND DEMAND ANALYSIS
The aim of marketing is to meet and satisfy target consumers’ needs and wants. Individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and desires. Market and demand analysis in this sense is a critical exercise in marketing. They help in determining nature of the product, pricing, promotion and production decisions. • Secondary data: It has been useful for gauging market competition, supply and prices of materials used in production, incentives, taxes and subsidies that may be available to our manufacturing concern. We made visits to SISI, GITCO, and Gujarat Chamber of Commerce and also made industrial visits to collect the required information. Primary data: We have conducted extensive surveys among potential consumers and retailers. This has been a vital instrument for marketing and production decisions. Our survey has yielded the following results: o o o o o o o o o o o Total demand and rate of growth of demand Demand in different segments of market Income and price elasticity of demand Buyer’s motives Purchase plans and intentions Level of satisfaction with existing products Unsatisfied needs Attitudes towards various products Methods of distribution and promotion Price Supply and competition Marketing activities are all about reaching out to the customers.
•
CONSUMER SURVEY K.S. SCHOOL OF BUSINESS MANAGEMENT QUESTIONNAIRE FOR PROJECT WORK SUBJECT: CONSUMPTION PATTERN OF BISCUITS.
1. NAME: 2. AGE GROUP: ? BELOW 15 ? 15 - 35 ? 35 - 60 ? 60 & ABOVE 3. GENDER: ? MALE ? FEMALE 4. OCCUPATION: ? STUDENT ? BUSINESS ? HOMEMAKER ? SERVICE ? PROFESSIONAL ? RETIRED ? OTHERS……………………….. 5. FAMILY INCOME: ? BELOW 25000 ? 25000-200000 ? ABOVE 200000
6. WHICH BRAND OF BISCUITS DO YOU PREFER? ? ? ? ? ? BRITANNIA PARLE PRIYAGOLD SUNFEAST OTHERS…………….
7. WHICH TYPES OF FLAVOUR DO YOU LIKE? ? GLUCOSE ? SALTY ? CREAM ? DRYFRUIT ? MARIE
8. WHICH SIZE OF PACKS DO YOU BUY? ? SINGLE ? FAMILY PACKS 9. HOW OFTEN DO YOU CONSUME? ? EVERYDAY ? ONCE IN A WEEK ? MONTHLY 10. IF YOU BUY CREAM BISCUITS, WHICH FLAVOUR WILL YOU PREFER? ? ? ? ? ? ? CHOCOLATE PINEAPPLE ORANGE VANILLA ELAICHI OTHERS…………………………………
11. FROM WHERE DO YOU USUALLY BUY? ? ? ? ? PROVISION STORES SUPER MARKETS BAKERY OTHERS…………………………………………………..
12. WHICH FACTORS DO YOU CONSIDER BEFORE BUYING? (RANK IN ORDER OF PREFERENCE) ? PACKAGING ? PRICE ? QUALITY ? BRAND ? ADVERTISEMENT ? FLAVOURS ? AVAILABILITY 8. WHICH KIND OF MEDIA INFLUENCES YOUR PURCHASE? ? ? ? ? ? TELEVISION NEWSPAPERS RADIO MAGAZINES HOARDINGS
? WORD OF MOUTH 9. IF THE FOLLOWING TYPES OF BISCUITS ARE INTRODUCED, WHICH ONE WOULD YOU PREFER? ? LOW CALORIE ? PROTEIN-RICH ? CRACKERS ? IF OTHER, SPECIFY…………………………………………………
THANKS FOR YOUR CO-OPERATION
RETAILER’S SURVEY
K.S.SCHOOL OF BUSINESS MANAGEMENT. QUESTIONNAIRE FOR PROJECT WORK. SUBJECT:
1. NAME: 2. ADDRESS OF SHOP……………………………………………………. ……………………………………………………... 3. TYPE OF RETAIL OUTLET: ? PROVISION STORES ? SUPER MARKETS ? BAKERY ? OTHERS………………………………. 4. WHICH BISCUITS ARE LARGELY PREFERRED BY BUYERS? ? ? ? ? ? GLUCOSE CREAM SALTY DRYFRUIT MARIE
5. WHICH BRAND OF BISCUITS IS MOST PREFERRED BY PEOPLE? ? ? ? ? PARLE BRITANNIA SUNFEAST PRIYAGOLD
6. WILLINGNESS OF CUSTOMERS TO TRY NEW BRANDS: ? WILLING ? UNWILING ? INDIFFERENT
7. WHICH SIZE OF PACK IS PURCHASED BY CUSTOMERS? ? 50gm - 150gm ? 150gm - 250gm ? 250gm - 500gm 8. WHICH FACTORS ARE CONSIDERED BY BUYERS BEFORE PURCHASING? (RANK IN ORDER OF PREFERENCE) ? ? ? ? ? ? ? PRICE QUALITY BRAND ADVERTISEMENT FLAVOURS PACKAGING AVAILABILITY
9. WHICH KIND OF MEDIA INFLUENCES THE SALES? ? ? ? ? ? ? TELEVISION RADIO NEWSPAPER MAGAZINES HOARDINGS WORD OF MOUTH
10. WHICH NEW VARIETY OF BISCUIT WOULD ACCORDING TO YOU IS PREFERRED BY THE CUSTOMERS? ? ? ? ? LOW CALORIE DIGESTIVE PROTIEN- RICH IF OTHER, PLEASE SPECIFY………………………………
THANKS FOR YOUR CO-OPERATION
1. TYPES OF BISCUITS
40 30 20 10 0 1 13 37 28 13 GLUCOSE SALTY 9 CREAM DRY FRUIT MARIE
ANALYSIS: On the basis of the above data, it can be analyzed that Glucose is the most preferable variety in the market. Cream biscuits are second in popularity. Salty & Marie have nearly the same consumer preference. They are followed by dry fruit biscuits.
2.
BRANDS OF BISCUITS PREFERRED
12% 15% 12%
29%
BRITANNIA PARLE PRIYA GOLD SUNFEAST
32%
OTHERS
ANALYSIS: From the survey done by us, we conclude that Parle is the most preferred brand all over the country. While Britannia is slightly behind. Then it is followed by Sunfeast and Priyagold and others which include Windsor, Rajagold, etc.
3. PREFERRED PURCHASE CENTRES
PROVISION STORES 41% SUPER MARKETS BAKERY 23% OTHERS
9% 27%
ANALYSIS: From the evaluation of survey it is clear that provision stores form the biggest share of the market. And then comes bakery, supermarkets and other small places like stalls, hand-carts at railway stations, kitlies, etc.
4.
FREQUENCY OF PURCHASE
18%
22% EVERYDAY ONCE IN WEEK MONTHLY 60%
ANALYSIS: From the above data we can see that most of the people purchase biscuits once in a week. The purchase cycle for others is daily and monthly purchase.
5.
MEDIA VEHICLE
35 35 30 25 20 15 10 5 0 1 5 15 10 15 20 T.V. RADIO NEWSPAPER MAGAZINE WORD OF MOUTH HOARDINGS
ANALYSIS: Television is the main media vehicle for advertisement. Hoardings form the second largest part for advertisement. The other two sources of advertisement are newspaper and word of mouth. And the least preferred media vehicles are magazine and radio respectively. 6. PREFFERED FLAVOUR
9% 15%
21%
CHOCOLATE VANILLA ORANGE PINEAPPLE
14% 22%
19%
ELAICHI OTHERS
ANALYSIS: In above graph, different flavours of cream biscuits preferred by consumers are stated. From which we conclude that orange flavour is mostly preffered by people. Chocolate comes next which which shares somewhat same market share as of orange. Vanilla is the next choice of consumers. Then comes Elaichi and Pineapple which also shares somewhat same amount of market share. Other flavours like strawberry, mango, etc. 7.
FACTORS AFFECTING BUYING DECISION
25 20 15 8 10 5 0 5 14 17 18 21 17 PRICE QUALITY BRAND FLAVOUR PACKAGING AVAILIBILITY ADVERTISEMENT 1
ANALYSIS: Majority of buying decisions of consumers are based on flavours. Brand preference is the next choice for consumers for purchase. Quality and Advertisement share equal part of purchase decisions. Price is the next decision making aspect for consumers. Packaging and availability are the least factors for buying decisions.
8.
FUTURE ACCEPTIBILITY OF NEW VARIETY OF BISCUITS
18%
25% LOW CALORIE PROTIEN RICH CRACKERS OTHERS 39%
18%
ANALYSIS: We have found that people are health conscious. We found that most of the consumers would like to buy protein rich biscuits if they are introduced in the market. Their next choice was low calorie biscuits. Crackers and other biscuits like digestive, were their next alternate choices.
1.
PRICE DECISIONS Price is one element that produces revenue. Other elements of marketing produce costs. Price communicates to the market the company’s intended value positioning of its product We have considered a six step procedure for determining the prices of our products.
• Selecting the pricing objective For our glucose, salty, dry fruit and orange biscuits the major pricing objective is survival. This is due to the fact that these biscuits face intense competition. This objective is short run in nature. Further value additions shall be pursued in the long run.
For the choco vanilla biscuits, a policy of market penetration pricing is planned. These biscuits are an innovation of KING biscuits. The market of these biscuits is highly price sensitive. Also a low price will discourage potential competition.
• Determining demand Each price will lead to a different level of demand. This will have a different impact on our marketing objectives. Biscuits are products which are bought frequently in nature. Buyers are hence price sensitive. The price elasticity of demand is relatively elastic in nature. • Estimating cost Demand sets a ceiling on the price. Costs set the floor. Any company wants to charge a price that covers its cost of producing, distributing and selling including, a fair return. Our costs can change with production skill and experience. Our objective shall be to bring the final cost projections into the target cost range. This range shall include the price at which our products will be sold. • Analyzing competitors costs, prices, and offers We shall first consider our nearest competitors price. We are new entrants in the market. Hence the prices and offers of our products shall be more or less governed by our competitors. • Selecting pricing a method We have adopted the Markup pricing method. The price of each product will hence consist of variable costs, fixed costs and percentage markup on sales. • Determining the final price We have considered additional factors including the influence of other Marketing mix elements on price for determination of our price.
2. DISTRIBUTION
Our aim shall be to establish channels of different target markets and aim for efficiency, control, and adaptability. The following charts show distribution and flow of goods, payments, information and promotional activities: Physical flow:
SUPPLIERS MANUFACTURER AGENTS WHOLESALERS RETAILERS
Significance: Distributors in the distribution chain will be a vital link to the market. Our trade promotion activities will focus on motivating the distributors. This chain aims primarily at savings in costs and maximum market coverage. Credit Policy: Our agents will have the powers to grant one month credit period to the wholesalers and retailers. Salesforce: Three salesmen will manage the distribution activities. Their primary role shall be contacting and maintaining relations with the members of the distribution chain. Mode of operation: The wholesalers will assess the demand of the products through the retailers. Accordingly, they will place the order of goods with the agents. The agents will inform the company about the quantity and price of the order.
3. SEGMENTATION A market segment consists of a group of customers who share a similar set of needs and wants. In this sense we have identified the segments and have decided which ones to target. The result will be better designs, prices, distribution and services to customer.
• Geographic Segmentation
Gujarat shall be our niche market. It has a distinct culture, set of needs and a prosperous economy. Hence it has a good profit and growth potential. • BISCUIT GENRE Glucose Salty Orange Choco Vanilla Dry Fruit • BISCUIT GENRE Glucose Salty Orange Choco Vanilla Dry Fruit Demographic Segmentation AGE GROUP ( in years) 1-12 & 50 onwards 13-30 5-30 5-30 15 onwards INCOME LEVEL Low – lower middle Lower middlemiddle Lower middlemiddle High High SEQUENTIAL SEGMENTATION Price oriented customers Price oriented customers Price and quality oriented First time prospects Sophisticates
Behavioral Segmentation OCCASION VARIABLES Breakfast, snacks Snacks Snacks Get-togethers Get-togethers
4. PROMOTION Promotion includes all the activities that a marketer undertakes to satisfy his customers, stake holders and distributors. • Advertising For marketing biscuits advertising is an effective medium to disseminate messages and build a strong brand preference. Biscuits are commodity like products. Hence a high frequency of advertising is key to a differentiated brand image. Objective
Since all the products are new in the market, informative and persuasive advertising will create brand awareness and market penetration. Budget The budget will form a considerable part of preliminary expenses in the first five years. Extensive campaigns in different parts of the state will involve an outlay of Rs. 958660 in the first year. Different media have different cost structures. To manage campaigns across varied media, we plan to target specific age groups and niche areas like schools, colleges, etc. Campaign o Core selling propositions. Biscuit genre Glucose Salty Orange Choco Vanilla Dry Fruit Appeal Health and Growth Taste Tangy and Creamy Curiosity due to product uniqueness Richness and Health
o Media Vehicles: Newspapers: NAME MONTHLY TOTAL COST SANDESH Twice a month Surat,Baroda,rajkot,bhavanagar,ahmedabad 113110 678660 Hoardings: NAME Bus stand RENT/ MONTH 45,000 MONTHS 2 months NO.OF TOTAL HOARDINGS COST 2 180000 FREQUENCY PLACE
Advertising (painting) on Bus: NAME S.T BUS A.M.T.S BUS TOTAL TOTAL COST 523000 477000 100000
• Sales Promotion Whereas our advertising activities will communicate a reason to buy, the sales promotions will offer an incentive to buy our products. Objective Encourage trial among potential customers. Tools Coupons: They will be enclosed in the biscuit packets as well as inserted in the newspapers. ? Prices: Contests in colleges and schools will reward the winners in the form of gift hampers of our biscuits. ? Tie-in promotions: we shall team up on coupons and contests with companies producing complementary products like tea, coffee, milk, etc. ?
• Public relations: The aim shall be to adopt positive programmes to build goodwill in the market. Objective To build awareness by placing stories in the media. This will bring attention to our products and build their creditability by communicating messages in an editorial context. PR vehicles ? target the youth. ? build the company’s image. Speeches: We will participate in trade associations to Events: Contests, competitions and road shows to
5. COMPETITION The biscuit industry is a fast moving consumer goods industry. It is characterized by fierce competition, change in customer tastes and continuous product innovation. The market share of the competitors is as under: COMPANY NAME Britannia Industries Surya Foods Priya Food Products Glaxosmithkline Consumer Healthcare Modern Food Industries Harinagar Sugar Mills Shah Foods Shangrilla Food Products TOTAL Total For Sample 58 Companies Imports MARKET SHARE 2004-05 36.37 6.72 0.97 0.42 0.29 0.03 0.02 0.01 46.07 91.08 0.11
As far as the competition is concerned, our company is in the ‘introduction stage’. Promotional expenditures will be high to boost sales and brand awareness. Our aim shall be to target those consumers who are able and willing to buy the products. The timing of the launch of our product is also key to making inroads in the competition. We have therefore decided Christmas as the occasion for the launch. Our choco vanilla biscuits have a pioneer advantage. They are a result of product innovation in the market. This is expected to enhance our brand image by appealing to the curiosity of consumers.
SWOT ANALYSIS
The crux of this analysis is that we need to Sustain our STRENGTHS Offset our WEAKNESSES Capitalize on OPPORTUNITIES. Mitigate the THREATS. STRENGTHS ? One of our strengths is that we cater to different target markets by producing quite a variety of biscuits. ? Our commitment of being consistent in providing high quality. ? To endeavour to bring innovative products like Choco-Vanilla considering the consumers’ latent demands. WEAKNESS ? Limited distribution network, only within Gujarat. OPPORTUNITIES ? To develop the product line. ? Expansion of distribution network. ? To achieve brand recognition on a wider scale. THREATS ? Competition faced from big players like Parle, Britannia etc. ? Lack of advanced technology being used by them.
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