INTRODUCTION

BAKERY INDUSTRY-

Bakery industry in India is the largest of the food industries with an annual turnover
of about Rs. 3000 crores. Bread and Biscuits form the major baked foods accounting
for over 80% of total bakery products produced in the country. . Bakery products once
considered as sick man’s diet have now become essential food items of the vast
majority of population. Though bakery industry in India has been in existence since
long, real fillip came only in the later part of 20th century. The contributing factors
were urbanization, resulting in increased demand for ready to eat products at
reasonable costs etc. With the quick food culture catching up, demand for bakery
products has increased tremendously. The bakery industry or for that matter all the
businesses catering to bakery are witnessing a sort of revolution tremendously. In an
age where malls, hypermarkets and supermarkets have become the customer's
preferred destination, the concept of chain bakeries has come into its own. The bakery
industry has become more organized in the recent past. It is following the path of
restaurants - as the industry has become more organized, chain restaurants have taken
over the market and standalone restaurants have found it tough to survive on its own.

INDIAN BREAD HISTORY

 The Bread industry is low - tech and low margin industry. In 1977, the
Government of India had reserved bread industry for small scale industries
(SSI). The then existing two large units viz., Britannia Industries Limited and
Modern Food Industries Ltd. were however allowed to continue on the basis
of their respective existing installed capacity.

 35 % of the total production comes from the small scale sector with about
1500-1800 units in operation. The organized sector accounts for 20 % of the
total production. The balance production comes from the unorganized
traditional bakery units operating under cottage/tiny sector numbering
approximately 65000 units in the country. BIL & MFIL are having a market
share of 10-12 % and 7-8 % respectively. Apart from big players like BIL &
 MFIL regional players such as Spencer’s in South India, Vibbs in
Maharashtra, Harvest Gold and Perfect in Delhi, etc.

 Bread being consumed by wide cross - section of the society, the marketing of
bread is based on strong retail distribution networks, which service the
customers.

 As bread industry is a low margin business, cost control is crucial in sustaining

profitability in the long run.

 The total market size of bread industry is approximately 15 billion standard

loaves (SL) or 1.5 million tonnes. The current growth is around 5 - 6 percent
p.a. and is expected to remain in the same level in the medium term.

EMERGENCE OF HEALTHY PRODUCT

Along with an increase in demand for the bakery products, the awareness about health
is also on the rise. Bakeries are making sure that they come out with healthier
products. "The awareness of the virtues of products like whole grain, health breads,
cholesterol-free products and such other health products is growing in our country. An
increasing demand and health awareness results the demand for products like
Specialty Breads.

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ABOUT THE COMPANY

“I conform to the view that there are three kinds of companies -those that watch
things happen; those that make things happen; and those that wonder what happened.
We certainly wish to make things happen.....My personal commandment is Do unto
others what you don't wish done unto you. It's not the big who swallow the small; it is
the fast that swallow the slow”

- Sunil Alagh, CEO, Britannia Industries Limited

Britannia Industries Limited (BIL) is the leading player in Bakery Products

(Biscuits, Bread, Rusk and Cake), jointly promoted by French food major DANONE
and Nusli Wadia. It enjoys market leader ship in Biscuits with 39 % market share in
value term. It owns key brands like Tiger, Good Day and Marie Gold. It has six pillar
brands, which contribute around 90 % of its top line. Each of its pillar brand
generating sales exceeding Rs.1 billion and these six pillar brands include Good Day,
Tiger, 50:50,Treat, Milk Bikis, and Marie Gold. BIL is enjoying market leadership in
all sub-categories of biscuits, Except in Glucose category where Parley is the leading
player.

PRODUCT BASKET OF BRITANNIA

The group’s principal activities are manufacturing & marketing-

 Biscuits

 Cakes

 Rusk

 Bread

 Daily products

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MARKETING STRATEGY

MARKET TREND:-

In modern days bread is now becoming one of the most essential food items in human
diet due to its ready-made availability and high nutritive value. It is the most
consumable wheat based bakery product. Wheat flour, yeast, sugar, salt, water and
shortening agent are required as raw materials to manufacture bread. The plant and
machinery and the technology required to manufacturing the bread, are completely
available in India. Since the consumption of bread is increasing rapidly day by day,
the demand also is increasing enormously.

Competitors:

Some of the other well-known Speciality players in the market are as follows-

1. Cremica:

The CREMICA Group, a widely diversified food products company from India, is an
acknowledged frontrunner in both food retailing and food services industry.

Established as a small enterprise by Mrs. Bector, a passionate food enthusiast, three

decades ago, the group has today metamorphosed into a huge food products
conglomerate and is known for its lip smacking range of Sauces, Mayonnaise,
Toppings, Syrups, Biscuits, Indian Snack Foods, Stabiliser Blends and Ice creams.
The Group has been constantly setting benchmarks for the food processing industry
through its incomparable products, innovative flavours and fillings, internationally
certified production facilities, consistent quality and unmatched expertise.

Through its commitment to taste and quality, CREMICA has emerged as a preferred
consumer brand and a leading supplier to Indian and global food majors.

2. PERFECT BREAD-

Started business with a small plant “in Seeta Foods Pvt. Ltd.", located at a small
industrial town Hathin, Faridabad in the year 1993 with a very nominal turnover. In a
span of just few years, with adding on two most modern plants: L.R. Foods

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(established in 1997) & Harpreet Foods Pvt. Ltd. (established 2000) at Faridabad and
further coming up with Perfect Bake in 2006.

Group works exactly on the concept of "Demand & Desire" with the help of highly
qualified marketing personnel’s to enhance the quality & variety of their products.
Apart form retail markets of Delhi, NCR, Western U.P., M.P., Rajasthan, Haryana;
group has a strong presence in reputed institutions & corporate.

L.R Foods are very particular about using 100% natural ingredients. And a strong
emphasis is given in this fact in all the stages of the production. The usage of Golden
Wheat not only makes their products nutritious but also ensures unmatched quality
and taste.

There is total quality control ensured by the use of state-of-the-art machinery. The
products are untouched by hand making them totally hygienic, henceforth strictly
maintaining a tradition which in turn has helped them to establish a distinct presence
in the market. A very strong emphasis on customer satisfaction has made them a
legend in the bread industry and this is well justified by their well-satisfied top notch
corporate clients.

Some of the other competitors brand are-

 BONN bread

 365 days

 VLCC bread

 Sugar n Spice

 Breads N More

 RAINBOWS

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DAILY BREAD (CASE STUDY)

As Daily Bread is subsidiary Of BIL and was in business of Specialty Breads for
more than 5 years, a detailed study was done. On the basis of the study few
recommendations were given to BIL as BIL launched Specialty breads just 3 months
back.

Daily bread was founded in May 2003 as the country’s first purveyor of world class
breads, confectionary and specialty food products for wholesale and retail clients. It
started its commercial production in October 2003 in Bangalore and currently
supplies bakery products to a wide spectrum of institutional clients and operates.
Daily Bread has a chef training and recipe transfer agreement with the leading
wholesale European bakery & food emporium in Hong Kong, which will provide it a
competitive advantage. It intends to open 10 wholesale bakery production units and
200 retail bakery, etc outlets in top 10 metros in India over next 3 years.

Britannia Industries Ltd (BIL) has acquired a strategic stake in Daily Bread, a
Bangalore-based boutique manufacturer and retailer of high-end bakery products,
which includes a variety of European breads, pastries and savouries with its intent to
diversify its product portfolio into the fast-growing, high-end, branded freshly-baked
gourmet foods, and marked its entry into the premium `out of home' and `in home'
consumption

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COMPANY OBJECTIVES

Daily Bread will be the first bakery vendor in India to provide institutional clients
such as coffee chains, fast food chains, multiplex chains and hotel chains, etc. with a
reliable and consistently high quality and wide selection of bakery products across all
the major metros

There is currently no pan India bakery brand. By opening wholesale bakeries in the
top 10 metros, Daily Bread’ will be India’s first national bakery brand, synonymous
with European quality bakery products, produced in state-of-the-art, hygienic &
HACCP compliant production facilities

Daily Bread will deliver superior value to urban Indian consumers by making
available bakery and confectionary products of international selection, standards and
packaging at a competitive cost for the first time in India

The need for setting up production units in each major metro is driven by high
transportation costs, the lack of an effective cold chain, the perishable nature of
bakery products, the variance in regional tastes and the need to be close to the market

DAILY BREAD COMPETITIVE ADVANTAGES

Some of the competitive advantages that the company enjoys are as follows-

 Over 100 varieties of European artisan & country style breads

 An assortment of over 100 types of specialty gateaux, cheesecakes and mousse

cakes

 A wide variety of exotic fillings and spreads sandwiched in over a dozen type
of bread loaves and wraps

 An array of specialty gourmet pizzas and savouries including quiches, puffs,

pies and vol-au-vents

 Premium range of designer liqueur & luxury cakes for special occasions made

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 Bakery chefs with international and five star hotel experience using state-of-
the-art imported bakery and kitchen equipment

 Products packaging and display standards at world-class levels

 Production facilities compliant with international hygiene standards.

 Complete support for ‘Point of Sale’: Consulting services for in-store bakery
or bread display layout, equipment & ambience

 Training and development for bakery counter staff

 Customized products for each client based on end user profile and sales
analysis

 Benefit from continuous research & development conducted by Daily Bread

and its recipe transfer partner in Hong Kong – e.g. ever expanding list of low
fat and diet friendly bakery products, gluten free products for diabetics and
organic products

 Sales support and promotion

 Higher revenues through increased ‘footfalls’ & ACP

 Consistent quality and reliability of bakery products across locations.

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SOME OF WELL KNOWN SKU’S

Net Wt
SL NO ITEM NAME Shelf Life MRP
(gm)

1. Bread Sticks - Methi 150 14 Days 23

2. CHOCOLATE TWIST 150 6 Days 34

3. CHOCO ALMOND Stick 100 10 Days 90

4. Bread Crumb 400 15 Days 35

5. Brioche Chocolate 400 4 Days 45

6. Buns – (Soft) (Spinach) FLAVOURED 300 4 Days 24

7. Burger Buns 200 4 Days 18

8. Cheese & Garlic Bread 250 4 Days 30

9. Curry Leaves & Mstd 350 4 Days 25

10. Jumbo bread 1000 4 Days 45

11. Masala Loaf 400 4 Days 30

12. Methi Ajwain Loaf 350 4 Days 25

13. Plain Buns (Dinner Rolls) 300 4 Days 21

14. Slice French Village S/W 350 4 Days 40

15. Slice Healthy Whole Wheat S/W 400 4 Days 23

16. Slice Mediterranean S/W 350 4 Days 40

17. Slice Muesli Sandwich 350 4 Days 40

18. Slice Premium English Butter Bread 400 4 Days 18

19. Slice S/W Loaf 300 4 Days 12

INSTITUTIONAL CLIENTS

 METRO

 PVR

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  SPENCERS

 RELIANCE FRESH

 KFC

 LE MERIDIEN

 TAJ HOTELS

 BIG BAZAR

DAILY BREAD showed widespread trial but limited repurchase level. The research
into this phenomenon shows some interesting aspects of Indian consumer
expectations from Breakfast and what Daily bread delivered to them.

Expectations from Delivery By Daily Bread

breakfast

Taste of the dish/ food Enjoyable Food. Taste is good in

should be acceptable to all limited quantities. Quickly satiating.
members of the family

Food should prevent Since one gets satiated with taste

hunger pangs for 2-3 quickly and is not aware as to what are
hours, so that children can different varieties and with what
focus on their studies alternatives they can be consumed so
clearly. not much acceptance.

Breakfast should be Daily bread has all the nutrients, herbs

healthy and nutritious. which make it and healthy option.

Breakfast easy to make. Can be consumed directly or with

butter, jam, cheese, sauces, cream.

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There should be variety. Has unique basket of 43 varieties but all
are not breakfast items as some are
delicacies to be consumed on special
occasions only.

Breakfast should be non- Light but depend on the variety

oily. consumed.

The variants should be not Except few SKU’S most of the variants
to expensive to be are extremely high priced.
consumed on regular basis

The variants should be Except few promo no consumer

advertised and promoted to awareness.
establish value proposition.

COMPANY SEGMENTATION AND POSITIONING-

 Daily Bread will enjoy a first mover advantage in a highly fragmented niche
market in India and will focus on a specific market segment to address unmet
client needs: i.e. providing selection, consistency, reliability, quality,
transparency, hygiene, and one point of contact for bakery product purchases to
institutional clients across the major metros.

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 Daily Bread will enjoy a competitive advantage and deliver superior value to
clients due to the wide range, high quality and attractive packaging of its product
range, which is unrivalled in India.

 The wholesale bakery sector remains one of the last sectors in India which
continues to be isolated from international competition and standards and which
continues to manufacture a poor and inconsistent quality and very limited choice
of products.

 Daily Bread’s business model offers significant growth potential driven by strong
macro drivers: rapid urban population growth, increasing affluence, changing food
consumption patterns and lifestyle trends in urban areas and rapid expansion and
improvement of standards in organized retailing in India .Daily Bread’s envisaged
business model incorporates multiple revenue streams from a complete suite of
fresh & frozen bakery, confectionary & specialty food products catering to a
diverse wholesale & retail client base.

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