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Priyanka jain pgdm-99 Parvez Alam pgdm-91 Nidhi Misra fs-29 Rolly Tewari fs-37
submitted to
Dr. Reeti Agarwal
ACKNOWLEDGEMENT
We owe a great many thanks to all those people who have helped us and supported us in this project. Our deepest thanks to our Professor Dr. Reeti Agarwal for her guidance and support throughout the making of the project, for correcting us and providing us with right solution. We would like to thank our institution for providing us with facilities that helped us in making the project. We would also like to thank our family members and well wishers without there support this project has been a distant reality, in the end we would like to thank god for always being with us.
PREFACE
The report is on COMPARATIVE ANALYSIS OF CRM PRACTICES IN BAKERY INDUSTRY, it is the result of the study of Mr. Brown and PAT-A-CAKE. A care was taken that there is no manipulation or false information provided in the project report. It was extremely great to work on this project as it provided us with immense knowledge and lots of things to learn about bakery industry and CRM practices followed by the company.
INTRODUCTION
Bakery is a traditional activity and occupies an important place in food processing industry. Despite the advent of fully automatic and semi-automatic bread as well as biscuit making plants, a sizeable number of people still prefer fresh bread and other products from bakery. With Growing population and preference for fresh and ready-toeat convenient food items, demand for bakery products is steadily increasing. There are many bakery products like bread and its different variants, biscuits, cakes & pastries, cookies, puffs etc. having ready market round the year. Each product enjoys a very wide range in terms of size or weight, flavors, end-use and so on. There is a tremendous scope to introduce new varieties every year. However, this note deals only with bread and biscuits. This project can be started anywhere in the country and there is no preferred location as such. This note considers Meghalaya as the contemplated location in view of good market prospects. A bakery can be set up in urban as well as rural areas. Depending upon its location, a suitable product mix can be worked out. This profile primarily considers semi-urban location from where nearby rural centers can also be catered to. In view of this consideration, the suggested products are bread and biscuits. These products are very well accepted in the market and have gained consumer acceptance. Industry and market information - The Bakery Industry The Bakery Industry is a mature market and dependant on population growth and product innovation with a focus on healthy options. Other key variables which may impact upon industry growth and trends are consumer tastes and perceptions, competition, fluctuations in input costs, packaging and technological advancements in manufacturing equipment. Export provides new growth opportunities. Key success factors to the industry These are internal factors that are within the control of the operator and should be observed in order to be successful in the industry. Supply chain management to maintain product quality Contracts to guarantee raw materials at established prices to assist cost of supply and production. Aim at two or more distinct consumer groups with different retail approaches and products .Ability to pass on increasing input costs maintains profits Cost advantages can be obtained due to expansion especially where price competition is high. Key sensitivities of the industry These are external factors which are beyond the direct control of the operator that influence each company operating in the industry. High competition from similar products on the shelf. Fluctuations in domestic goods prices (primarily sugar and flour) contribute to the higher/lower production costs and therefore impact the overall product cost. The change in consumer taste affects demand Retail demand affects end consumer demand.
Basis of competition in the industry These factors include internal competition between industry participants and external competition from other related industries. Competition stems from price, quantity, product differentiation and distribution networks .competition also stem from bakeries and hot bread shops as they have successfully catered to the consumers increasing need for quality and freshly baked breads. Product perception conversely affects price and high-brand recognition and minor techniques employed such as updating packaging and the introduction of functional qualities e.g. bread enriched with fibre and vitamins has helped product differentiation and stimulated consumer interest.Centralised distribution networks and systems has allowed quicker response to managing stock levels. Barriers to entry of the industry These are factors which can prevent a new company from entering the industry. Initial substantial capital investment and the existence of major players are important considerations .Wholesale bakeries need to establish relationships with retail outlets to affect sales. The bread loaf segment is hugely competitive and entrants may need to consider other Segments. Major players have aggressively promoted their products and entrants may need to carve out market niches to be a considered player. Awareness of high quality baked goods is on the rise. Good bread is a rare combination of nutrition, convenience, and luxury. Today's consumer has less time to create wholesome, handmade bread, but increasingly appreciates the nutritional and sensory benefits it provides. Good bread provides fiber and carbohydrates in a convenient, low fat form that is portable and delicious. Good bread never goes out of style. So, Starting up a new Bakery business will give rise to new avenue towards development as well as growth to this sector for both rural & urban areas. Location like Meghalaya is mostly feasible for planting up such kind of agro-business industries.
Bakery industry in India is on a growth curve. The sector which is difficult to define has indicated promising growth prospects and has been making rapid progress. The bakery industry has achieved third position in generating revenue among the processed food sector. The first and second segments are the wheat flour processing and fruits and vegetables processing, stated experts from the food industry. The sector which is riding a positive growth journey is known to generate over 50 per cent profits on certain products and net profits to the tune of 30-50 per cent annually, informed experts who have been closely following the industry but did not wish to be identified. According to the University of Agricultural Sciences (UAS), Bangalore, bakery is a promising sector for growth going by the interest evinced for products like cakes, biscuits, buns, rusks among others for all age-groups. UAS estimates that the bakery industry in India generates Rs 10,000 crore and has a significant presence of small unorganised players in the business. Lucrative sector The bakery industry also is a lucrative sector for entrepreneurship in the food industry. This calls for honing skills in baking science and technology, stated Chetan L Hanchate, food consultant, Centre for Processed Foods. The Central Food Technological Research Institute (CFTRI), Mysore, sees potential in this growing segment. From small bakeries to airlines and railways, the demand for bakery units and products is growing. With globalisation and India being viewed as a potential growth market, there has been
a profusion of bakery chains springing up across the country. These include Au Bon Pain, the US-based bakery caf chain, Monginis, Donut Baker, Cookie Man, Croissant, Caf Coffee Day, Ovenpick, Bread Talk, SAJ Industries Bisk Farm, Hot Bread, Birdys, Donut Master and Kookie Jar. The concept of bakery retail chains is a fad. Aping the Western markets, India too has taken a strategic leap in the modern bakery space. The key growth driver of such retail bakery chains is the propensity to spend, young population willing to experiment on new products, overall change in consumption patterns, preferred locations for hangouts for all age groups, according to sources from the Indian Institute of Management (IIM), Bangalore. Subbanna Kannur, business head, Au Bon Pain, India, said that the fast-casual bakery and caf chain was a need for experimentation by consumers. This is because the food habits have witnessed a huge change in recent times. There is a constant interest to opt for e couscous salad which is Mediterranean, besides orders for croissants and muesli for breakfast. At office locations, Au Bon Pain harvest of rice bowl is immensely popular. Urban India is inquisitive, experimental and is willing to try new things, he said. For a bakery and caf chains there are several challenges to meet when it comes to growth of the business and generating revenue. Some of the issues are procuring highest quality of ingredients, maintaining consistency in standards of food and managing efficient service in terms of hospitality, pointed out Kannur. Key drivers The main factors driving bakery industry are diverse. This is because the structure of the bakery industry comprises three segments namely need-based, basic hotel requirements and connoisseur requisites. The need-based category caters to products like bread and biscuits. Under hotels, it varies from breads to pastries, cakes, pizza and puffs. The connoisseur category focusses on international standard and will cover products like specialised pastries and cakes, including pannanie tartsto in addition to a number of fascinating breads with garlic content among others available in hard and soft textures, according to Sanjay Mehra, Director, Paramount Impex, a manufacturer of bakery equipment. Changes in lifestyles and rising travel opportunities are now forcing coffee bars to add on bakery products like cakes, sandwiches, pastries, puffs, pizzas, and croissants. Indian consumer is extremely experimental in attitude and therefore there is ample scope for Caf Coffee Day to innovate in its offering in food, stated Venu Madhav, chief operating officer, Caf Coffee Day. In order to have an edge in the market, home delivery and take-away packs are allowing customers the option of just order and carry, stated an official from Marry Brown, an initiative of the MG Muthu Group (MGM), Chennai.
Dr S V Suresha, coordinator, Bakery Training Unit, Directorate of Extension, University of Agricultural Sciences, Hebbal, Bangalore, said there was major inclination for healthy bakery products like iron-, protein- and fibre-rich breads, and rusks others. We have already commenced research on these fronts and developed 100 per cent ragi cakes, with no maida. Efforts are also on to use millet powder in many of the bakery products. The biscuits made of maize flour are a big hit at our bakery counter for the public, Dr Suresha added. Growth factors The major factors for growth of bakery segment are brand loyalty, volumes and strong distribution networks. According to estimates sourced from the Internet, The bakery industry in India is valued at Rs 69 billion. Out of this bread and biscuits hold about 82% of the share. Bread, biscuits, pastries, cakes, buns and rusk are some of the bakery products fast catching up with the popularity trend in India. The bread market has a business volume of 1.5 million tonnes. The bread industry has a production of approximately 27 lakh tonnes. But with growing food inflation, prices of raw materials like sugar, vegetable oil, milk, and wheat flour are spiralling. Hence, efforts are on to substitute fats with peanut butter. The UAS product development research centre is now using 50 per cent peanut butter and remaining fat for many products. In the wake of the presence of modern global bakeries, the local outlets are facing a challenge of presentation of the products. There is need for better packaging and presentation for the products without ignoring quality of the contents and baking processes.
WHY CRM
Keeping in mind the pace at which technology is changing today, any company which is a step ahead of others because of some web product or service will not be able to hold on to that advantage for long. Key to stability in today's dynamic marketplace is forging long-term relationships with the customers. Customers can be divided into three zones: 1. Zone of defection where customers are extremely hostile and have the lowest level of satisfaction. 2. Zone of indifference where customers are not sure. They have a medium level of satisfaction and loyalty towards the company. 3. The third level of customers is in the zone of affection described as "Apostles". CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers. Customer demands for customization is increasing with every passing day. This has made companies shift their focus from "mass production" to "mass customization". The present scenario of companies using "poorly implemented" multi channel strategies for living upto the expectations of customers is bringing both customer satisfaction and customer loyalty down the ladder.
Today any company can copy products or services offered by other companies. If the new entrant adds features like less order turn around time and direct communication then established players are bound to have sleepless nights. Organizations that implement CRM and turn their business into e-businesses will find their competitors' customers ready to welcome them with a "smile". The top four reasons for implementing CRM are: gaining customer confidence and loyalty providing personalized service to customers acquiring better knowledge of customers and their buying habits differentiating themselves from the competition
Mr. Brown, a Gourmet family-owned pastry shop in the heart of Lucknow, produces delectable pastries that combine classic Asian traditions with modern flavors for the contemporary palette. The Bakery provides cutting-edge designed wedding dessert creations using delicious fresh strawberries or other fresh fruits to create mousse cakes, luscious tarts and a variety of handcrafted Asian pastries specialties. In addition, they fulfill your catering and wedding favor needs with a dessert menu of petit fours, chocolates, clairs and cookies. The bakery prides itself on the personalized service it offers to each of its wedding cake and special occasion cake clients. Decorators use only the freshest and finest ingredients available. They cater to only selected people who want something new and designer with different taste & feelings. They claim to be the only producer of continental desserts in the town who create the things differently. They try to ensure that your unique celebration becomes an extraordinary memory. They have the infrastructure to offer you fresh & pure bakery products of world class quality prepared in strict hygienic conditions. The Italian machines make all the difference. A refreshing difference... we assure.
Vision
Mr.Brown is committed to provide best and innovative range of bakery products with outstanding quality & service to keep our customers delighted
Quality Policy
To provide products and services of the highest possible standards, to satisfy
Pat-a-Cakes Bakery is located at B5/56, Vishal Khand, Gomtinagar , Lucknow- 226010. Pat-a-Cakes offers specialty decorated cakes (including wedding cakes), dessert cakes, authentic Italian pastries, ice cream cakes, cookies, cupcakes, catering and childrens birthday parties. Pat-a-Cakes has won several awards including The award for Best Bakery and Best Wedding Cake five times. The bakery offers a variety of sweets to satisfy every-ones sweet tooth which has helped them earn immense goodwill and strong brand loyalty from its customers. They specialize in making custom cakes for birthdays, baby showers, bridal showers, and weddings. It started as a little bread bakery, supplying freshly baked bread to happy customers around town. People loved the breads so much; the bakery couldnt help but evolve into a cafe where they could serve equally remarkable sandwiches. This, of course, led to delightful sweets, savories, ready to eat pizzas and burgers and much more. Before they knew it, Pat-A-Cake was a neighborhood favorite in communities all over a popular destination for quick snacks and desserts. Where people could remember only one name when it came to buying Cakes and Pastries for various occasions or throwing a treat full of snacks. A place where fresh, innovative food is served up with unsurpassed quality and consistency by passionate employees. A place still dedicated to keeping our neighbors, friends and guests happy, in their special little corners of the city.
Vision: Pat a Cake is focused on providing high-quality service and customer satisfaction-we will do everything we can to meet your expectations. With a wide variety of offerings to choose from, we're sure you'll be happy to working with us.
Customer Acquisition
In order to attract consumers of all types and segments, and thus retain them forever, the firm makes sure to make ample amount of efforts by way of delivering value much higher than the expectations of the consumer. The bakery makes all possible attempts to make sure that the customer experiences with the outlet are highly satisfactory. Once the customer is acquired, they make sure that he stays with them forever, by regularly coming up with promotional offers, gift vouchers and exciting new range of products. With respect to the orders related to birthdays and anniversaries, they maintain a track record of all such orders and deliveries, so that in the future, even if the consumer puts no order, they call them to wish him/her on his/her special day. Thus by this method, customer feels privileged and special, resulting in increase in his loyalty towards the firm. There is no custom of giving special treatment to any customers in general. For them, all customers are equal and are equally cared and served. They do not differentiate customers based on the revenue being generated from him/her.
A proper system for collecting information about the customer and related data was found to be used by the firm. The CRM system consists of a historical view and analysis of all the acquired or to be acquired customers. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business. It contains each and every bit of financial details of a customer; hence it is very easy for track a customer accordingly. The demographic and personal details of only those customers are maintained, who have made an order for any occasion. The system is not only used to deal with the existing customers but is also useful in acquiring new customers. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system which is also called an Opportunity of Business.
Updating information: - With the changing trend & the preferences of the customers
the information is generally being updated on a regular basis. In fact, the verification of data and records take place in every 3 days time by employees of the main branch in hazratganj.
Example: on deciding whether to launch a new product and in what quantity , they take
help of their existing and potential customers, by way of testing of products. Based on the opinion and criticism of those customers, final decision is taken.
They are making use of the latest technology (Italian machines) to make the best and superior quality confectionary items. They believe in delivering something which the customer has not even thought of. Random checks are undertaken at frequent intervals, where the sales personnel shall go and ask the customers about their view point regarding the products and the services. Further, customization and personalization of customer development process has enhanced the value being delivered. They offer the choice of customized products to the customers, such preparations are made exclusively for that particular customer keeping in mind his needs and requirements.
Customer Complaint
The bakery takes special care of the dissatisfied customers so that it does not looses them to its competitors. The customers have freedom to express their opinion both favorable and unfavorable to the firm. The complaints so collected from the customers are then sent to the main branch at hazratganj. So it is the place where basically all the complaint system is centralized. The firm tries its level best to solve customer grievances and keep satisfying them.
They do not get in touch with each and every customer personally but time to time, whenever they launch few new products, they keep a little gathering in which everyone is invited for testing the new products and give there feedback.
Customer information
Company mainly asks about customers preferences amongst the various available products.
They do ask regularly about the preferences. Their main focus on asking about preferences is to create awareness about their brand to as many as people so that most of the people buy their products and they provide quality products and service as well. Company uses the information to spread awareness among the customers.
Customer Complaints
The complaints are negligible. Sometimes if customer complains about the cold serving they provide the customer with the hot one. Customers are mainly satisfied with the company skills of handling and resolving the complaints.
Customer Retention
Being a trusted company, so customers have a keen interest in the products of this Company so as to satisfy there tastes. Many of the customers even said that since they have started eating from Mr. Brown they have stopped going to Mc Donalds.
Customer Acquisition
They practice special treatment and loyalty programs for the customers that are superior to them in terms of the customer life time value They believe more in retaining their old loyal customers rather than acquiring more and more new customers
Updating information
With the changing trend & the preferences of the customers the information is generally being updated on a regular basis. In fact, the verification of data and records take place in every 15 days time by the employees.
Example: on deciding whether to launch a new product and in what quantity , they take
help of their existing loyal customers, by way of testing of products and sending free samples by way of delivery. Based on the opinion and criticism of those customers, final decision is taken.
Customer Complaint: they make sure to listen to the customer complaints carefully
and resolving them then and there and thus making the customer satisfied.
They do not get in touch with the customers in any way, only when the customers approach them, they entertain them.
Customer information
Company mainly asks about customers preferences amongst the products. They do ask
regularly about the preferences of the customers those visit them on a regular basis. They ask so as to improve there product quality and to introduce more products in different tastes. Their main focus is to provide quality products and service. Company uses the information to spread awareness among the customers.
Customer Complaints
Complaints are welcomed by them. Sometimes if customer complains about the cold serving they provide the customer with the hot one. Customers are mainly satisfied with the company skills of handling and resolving the complaints. Customers are satisfied with the company. company approaches customers with lucrative and good offers. Maximum of the customers avail these offers.
Customer Retention
customers are interested in there products those who are there customer visit them again and again because of there good quality products and services and there behaviour but lot many people are unaware about there outlet so company should do something about it.
COMPARISION
MR. BROWN
Focus on customer acquisition and retention Treats all customers equally, each customer is special Promotion by way of advertising, mixed bundling selling strategy (buy a pizza and get burger at a discounted price), free testing of products in campaigns, discount coupons to winners in contests More focused on expansion of business
PAT A CAKE
More Focus on customer retention Special treatment is given to the loyal and regular customers based on their lifetime value Promotion by way of advertising, and special direct discounts to regular customers
CONCLUSION
Some of the major consumer trends in the Indian Bakery Market worth mentioning are, With globalization and cultural integration, eating habits of the discerning urban and rural consumer are fast changing. Changing consumerism is witnessing Product innovations and retail formats are going to be great platforms for product push in the near future. Bakery joints are slowly becoming popular hangout places. A typical trend is for a variety of bakery snacks, top quality products and value for money. The present day consumer looks for new bakery products, better appeal, taste and convenience from bakery foods. With a population of 1 billion plus, India has the largest middle-income consumers, who demand varieties in food, clothing, transport and improved living standards, also wish to eat out. Another fastest growing segment in India, is Bakery Cafes and Restaurants, who cater fast foods. 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 really tough to survive. Dont be surprised to find a similar trend in the near future in the bakery sector as well. The focus is now going to be on speed and versatility while addressing consumer demands. Consumers are increasingly concerned about their health and are well aware of the relationship between nutritious food and optimal health. Various concerns have caused consumers to demand for healthier bakery products. The concerns like, the growing media coverage on health, the rising incidence of health conditions (obesity, diabetes and cardiac problems), concerns over physical appearance, changing lifestyle and also soaring costs of healthcare. Some popular trends in the market are the introduction of low/light, functional, natural and organic products, as described below: Low / light bakery products are bakery products with reduced fat and carbohydrates. With the growing incidence of obesity and popularity of diets such as the Atkins diet; low calorie foods have gained immense popularity. Wholemeal, multigrain and other such products are now gaining a strong popularity and also support this healthy product development trend through the provision of added fibre. In recent years, enhancement of the nutritional profile in bakery products is a key trend that has gained a great deal of momentum. Manufacturers are also trying to enhance
the nutritional value of traditional bakery products through the addition of functional ingredients, such as omega-3, multigrain, probiotics, multivitamins and phytosterols. Increasing health awareness and concern over the consumption of artificial ingredients has fuelled the demand for natural and organic bakery products. In addition to healthier products, consumers also are purchasing products that satisfy their taste buds. The taste enjoyment factor is vital in the marketplace, as the large range in bakery products available provides a wide range in consumer choice. With lifestyles becoming increasingly stressful, consumers may indulge in food for comfort. On-site manufacturing of bakery products in bakeries and supermarkets directly contributes to this trend, as it is well known that the smell of freshly baked breads and other products is a strong motivational factor in subsequent purchases. Indulgence/luxury products are becoming more pronounced as a key trend in the bakery industry. Consumers increasingly seek for premium, gourmet and exotic products to satisfy their desire to indulge. Cakes, pastries and biscuits are the typical indulgent products within the bakery sector. The future of bakery industry in India is indeed bright, as 70 - 80% of the market is still being served by the unorganized segments of the market.