INDEX

Sr.No PARTICULAR

1 INTRODUCTION

2 COMPETITOR

3 MARKETING MIX

4 SWOT

5 CONCLUSION

8 BIBLOGRAPHY

1

COCOBREAD

2

INTRODUCTION

Bread industry in India

Bread is a hygienically manufactured and packed snack food product available at comparatively

cheap prices. Major consumers of bread are people from the lower middle class and

economically weaker segments consuming more than 90 per cent of the bread industry's total

production. Bread is low margin-high volume based processed food and bread making is a labor

intensive process.

Bread is the cheapest and basic instant food available for consumption. Though bread is not a

staple food in the country, its consumption has increased over the years. In India it is still a

secondary staple food when compared to chapatti, puri or rice.

Bread is generally a highly perishable item, which has a shelf life of maximum of 72 hrs in a

tropical country like India. The government has made it mandatory to stamp the date and time of

manufacture and the date and time of expiry on the packet. Therefore, once the bread is baked

and packed, any baker will make it a point that it reaches the market at the earliest.

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Per capita consumption

The per capita consumption of bread in India is only around 1.5 kg to 1.75 kg in various zones.

The consumption pattern in four zones is

Northern States: 27%

Southern States: 32%

Western States: 23%

Eastern States: 18 %

Size of the Indian bread Industry

Bread industry is 4.00 million tones industry growing at the rate of 6 percent and is expected to

grow at the same rate in the medium term. However the organized sector is growing at the rate of

8 percent. In 2006-07, the total production of the organised sector has been estimated at 18lakh

tonnes.

The bread industry, consist of organised and unorganised sectors, contributing around 45 per

cent and 55 per cent of the total bread production respectively. The organised sector consists of

around 1800 small scale bread manufactures around the country, besides 25 medium scale

manufacturers and 2 large scale industries which were permitted to continue on the basis of their

installed capacity in 1976 when the Government of India reserved bread industry for the small

sector.

The unorganised sector of bread units/neighbourhood bakeries etc. consist of an estimated

75,000 bread bakers mostly located in residential areas of cities and towns. 35 percent of the total

production comes from the small scale sector with about 1500-1800 units in operation. As bread

industry is a low margin business, cost control is crucial in sustaining profitability in the long

run.

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Major Brands

The two major players i.e. BIL & MFIL are having a market share of 10-12 percent and 7-8

percent respectively. Apart from these two, there are few large regional players such as Spencers

in South India, Vibbs in Maharashtra, Kitty and Bonn in Punjab, 365days in Delhi NCR,

Haryana, etc and Harvest GOLD and Perfect in Delhi & NCR

Marketing

The marketing system in the bread industry is based on a strong retail-wholesale distribution

network and being a highly price sensitive low margin food product with very short shelf life

(about four days on an average) and resultant return of more than 10 per cent of dispatches, the

industry is witnessing a very competitive environment with the result that inter alia the

consumer's choice and preferences plays an important role in the sales pattern of different brands

of bread in the market.

Handling/ Logistics

Logistics plays a key role in the bread industry, as the proper logistic support enables the

producer to transport his products in the market at the right time. A producer has to see that all

the packs are stacked in solid containers - steel or plastic crates - in order to avoid compression

of bread (reduction of volume) during transportation. In case of bulk transport, producers can

make use of trucks and tempos, and in case of smaller deliveries to the retail shops, the producer

can use smaller tempos and bicycles. A producer also has to make sure that all vehicles are

thermal proof, so that the bread is maintained at a lower temperature. All the products should be

transported preferably in the night in order to avoid the heat and humidity and also the traffic

delays.

Even after the product reaches the retail outlets, the producer has to educate the retailer to keep

the bread away from direct sunlight. On keeping it in direct contact with the bright sunlight,

bread starts sweating which may result in fungus formation, reduction in weight due to loss of

moisture, change in texture of bread, etc.

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The Indian bakery industry is dominated by the small-scale sector with an estimated 50,000

small and medium-size producers, along with 15 units in the organized sector. Apart from the

nature of the industry, which gravitates to the markets and caters to the local tastes, the industry

is widely dispersed also due to the reservation policies (relating to the small scale industries) of

the government.

Biscuits and bread which are considered to be the major bakery product and they account for

82% of all bakery production. The unorganized sector accounts for about half of the total biscuit

production estimated at 1.5 million tonnes. It also accounts for 85% of the total bread production

and around 90% of the other bakery products estimated at 0.6 million tonnes. The last includes

pastries, cakes, buns, rusks and others.

Biscuits are estimated to enjoy around 37% share by volume and 75% by share by value of the

bakery industry. The organized sector caters to the medium and premium segments, which are

relatively less price-sensitive. The organized sector is unable to compete at the lower price range

due to the excise advantage enjoyed by the informal sector. The organized segment in biscuits

has witnessed a steady growth of about 7.5%, conforming broadly to the growth rate of GDP.

Biscuits constitute about 7% of the Rs 478 billion FMCG markets in India. During 2003-04

biscuits market grew at double digit (about 11%) compared to a growth of 1.4% for the FMCG

industry as a whole, and 4.4% average growth over last five years (1999-2003).

In India the annual per capita consumption of branded confectionery is still under 100 gms.

Hard-boiled candy is reserved for the small-scale sector. There are about 5,000 units catering to

the local markets. The big players have used a mix of franchise arrangements (with small units)

and product formulations to get out of the reservation mode.

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The total contribution of the sugar boiled confectionery market in the organized sector, comprise

plain, hard-boiled candies, toffees, éclairs and gums is around Rs. 20 billion. Add to this the

unorganized sector and the market for all types of confectionery is Rs. 50 billion. However, in

terms of value the organized sector commands 60% of the market share. With the exit of MNCs

and other established organized players from very low priced (25 paise) category, the

unorganized sector has grown very fast. MNCs and high-powered advertising support substitute

products like chewing and bubble gums. With Rs. 3,250 million market shares, the gum and

mint market is growing at a rate 10 to 15% annually. Fruit and mint rolls being marketed by

companies with sound strategies are going ahead rapidly.

Bread

Demand: Past & Future

Year Rs bn.

2000-01 11.90

2001-02 12.85

2002-03 13.85

2003-04 14.80

2004-05 15.85

2005-06 16.90

2006-07 17.90

2007-08 18.95

2008-09 20.00

2009-10 21.10

2014-15 26.90

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Market Structure

Market Segmentation

Segment Share (%)

Organised 15

Informal 85

North 35

East 10

West 30

South 25

Market Growth Rates

1990-91 - 1996-97 5.4%

1996-97 - 2001-02 7.9%

2001-02 - 2006-07 6.9%

2004-05 - 2009-10 6.0%

2009-10 - 2014-15 5.0%

8

Product Variation

Segment Share (%)

Milk Bread 85

Brown Bread 10

Fruity 3

Nutritional and other specialty 2

Source: Ministry of Food Processing Industries

9

Competitor

India has few major national bread manufacturers namely Britannia and Modern ( takenover by

switz group) number is very low as compared to other countries such as USA or UK. Bread

Manufacturing is volume driven and low margin industry with an disadvantage of  very low shelf

life of products which then requires very robust supply chain management to deliver fresh bread 

to consumer  daily .The bread market has a business volume of 1.5 million tonnes. The bread

industry has a production of approximately 27 lakh tonnes.  The major factors for growth in this

segment:

Brand loyalty 

Volumes   Strong distribution networks  

The major challenge faced by the organized bread sector at present is low margins of profit. Hike

in the prices of major raw materials like sugar, vegetable oil, milk, and wheat flour has been

accounted for the industry's low margins of profit. 

The per capita consumption of bread in India is only around 1.5 kg to 1.75 kg in various zones.

The consumption pattern in four zones is Northern States: 27% Southern States: 32% Western

States: 23% Eastern States: 18 % ( ref -AIBMA)

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Few large regional players have grown up to make up for the demand.

North India 

Harvest GOLD ,Bonn ,Perfect ,National,Kitty

West India

Vibbs

South India

Spencer

East India

 Britannia  ,Modern 

Apart from these automated major bread manufacturers several bakery chains have sprang across

the city maps. These bakery chain s provide  customers with artisan breads  with origin of recipe

from Italy , France and Swiss. such as  Daily Bread , Hot Bread , Cookie Man   Oven Pick  and

several others

Bread Manufacturers  have  started offering consumers with varieties of bread  such as  white

bread ( most popular )  brown bread ,flavoured breads( garlic ) , gluten free bread ,buns  more on

bread industry  - A report

11

Marketing mix

12

Product

1. Cocobread which is chocolate flavour bread.

2. Which will come in 2 different size

1.400gm

2.850gm

3. Cocobread can become good snack it can also toast and can have with tea in morning and

evening.

4.With help of cocobread mother can innovate receipts for their children.

13

Price

Cocbread price for

400gm -30rs

850gm- 55rs

Price of cocobread is little costlier because it also added with coco powder which also

added cost

Cocobread focus market is in urban area so people in urban area can afford.

14

Place

Cocobread will sell in all urban area in india

It will in retail shop where high class people stay.

Distribution channel will be manufacture –wholesaler-retailer-customer.

It will also sell in hotel.

15

Promotion

Cocobread is advertise their brand in television in cartoon network , pogo and add

frequency should be more in Sunday because of holiday so kids can watch the add

and demand for cocobread

16

MARKETING STRATEGY

SWOT Analysis

Strengths:

Innovative products

New flavour Added in bread which will love by children

Weaknesses:

Since product new in market it will take time to settle in mind of the customer

Competition of other top brand

Only urban high class customer target audience

Other local bread manufacturing

High price

17

Opportunities:

Increase penetration in urban market.

Entry into international markets

Increase in life style to demand for innovate product

Threats:

Since its new to market it has threat of acceptance by target audience .

18

Conclusion

For this Marketing is of great importance to nations, individual companies. With international

giant made their interest to local market . The competitive positions of most companies both

abroad and in their domestic markets, rest on their ability to succeed in Domestic Marketing.

At the same time, the economies of entire countries rest on the Domestic Marketing skills of its

management. The standard of living of many people will depend on how well local industry does

in the Domestic Marketing place

Cocobread is new to market in order to be in market they have to promote heavily in order get

place in mind of consumer.

19

BIBLIOGRAPHY

www.marketingmix/darkchocolate.com

www.

20

INDEX

Sr.No PARTICULAR

1 INTRODUCTION

2 MARKET SEGMENT

3 MARKET GROWTH RATE

4 COMPETITOR

5 SWOT

6 CONCLUSION

7 BIBLOGRAPHY

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