You are on page 1of 33

A PROJECT REPORT ON ...

WHY MONGINIS HAD A


DOWNFALL IN SALES

GROUP 11
SHWETA SHENOY ..
ANITHA FERNANDES ..

ROLL NO. :
ROLL NO. :

ELDINE VAZ ..

ROLL NO. :

POONAM BHANUSHALI ..

ROLL NO. :

YUGANT KARANE ..

ROLL NO. : 13

MONGINIS traces its roots back to its humble beginning, to a


time when it was a favorite with the Europeans in Mumbai.
Little excuse was needed for the Englishman to pick up a
Monginis cake whenever there was an occasion in his family. A
birthday, an anniversary, a wedding or even tea-time would not
be complete without Monginis.
The shop, located in Mumbai's Fort area, was a favourite with
Europeans. Run as it was by two Italian brothers, Monginis was
a must at every celebration. Even then Monginis cakes,
pastries and savouries were baked to perfection and were in
great demand.

As it always asks you ...


What are you celebrating for .... ??

WHAT IS MONGINIS ALL ABOUT ?

COMPANY PROFILE FIRST EVER EVOLVED

CompanyName:
BusinessType:
Product/Service
(We Buy):
Address:

Brands:
CompanyWebsite URL:

M/s.MonginisFoodsPvt. Ltd.
Manufacturer
Cakes, Gateaux,Breads,Burgers,Savouries
Cookies
Shop No. 9, Pritam Estate
Opposite Babubhai Jagjivandas
Dadar East, Mumbai-400014
Monginis,Pita Wich
http://www.monginis.net

Ownership & Capital


Year Established:

1971

OwnershipType:

Partnership

Legal

BusinessOwner

WHAT IS MONGINIS ALL ABOUT ?

Monginis is an Indian pastry and bakery chain based in


Mumbai. Its a premier and popular destination for lovers and
connoisseurs of all varieties cakes, chocolates, pastries and
cookies, with a commanding and distinguished presence in 12
cities around India.
HISTORY :
Early in the 20th century, two Italian brothers ran a
catering service in Mumbai's Fort precinct, which was popular
with the city's European residents. In 1958, Monginis catering
was taken over by the Khorakiwala family, and became Monginis
Foods Limited. In 1971, the company adopted the franchise model
of business, with a stated emphasis on localized production for
local tastes. It also models itself on the "food boutique" concept,
focusing on quality, presentation and service. It has thereby
expanded its brand and reaches across the country with a total
worth of about 950 million rupees by 2012.
Monginis uses only the finest and freshest ingredients
in its products, with insistence on quality control at every stage
of production, packaging and delivery. Monginis have specialized
in and gained renowned for custom made personalized products,
which the client can order as per individual specifications and
tastes, together with unique messages, which touch the hearts of
the recipients. Monginis expert staff of chefs, confectioners, and
artist, strives for ongoing creativity and customer satisfaction we create the dream gift which the client has conjectured in his

or her mind. Monginis is the Celebration King with virtually no


popular or special occasion remaining outside its range. Clients
have now become habituated to celebrate with Monginis whether
birthdays, anniversaries, weddings, engagements, Childrens Day,
etc. They make eggless as well as with egg cakes.

WHAT IS MONGINIS ALL ABOUT ?

Ideas and Innovations


Ideas and innovations make it possible for the high-level
excitement to be sustainedinthe brand.
Pioneers of a fantastic Cross delivery System which connects
11 manufacturing Franchisees through an intricate network to
simplify the means so that your beloveds can get a cake
delivered in any part of India ordered from anywhere in the
world.
A helpline 022-40786702 attending to customers to assist to
make any Celebration possible even at a short notice.
An Interactive website which allows online bookings of our
products from all across the world to be delivered in parts of
India, where we have a presence.
Pioneers in the introducing corporate cakes with Company
Structures, logos and Products too.
Objective
This project aims at understanding the overall monginis cake
manufacturer in India,
Different product categories in the market,various factors
affecting the growth and success of monginis cake in India,the

challenges and opportunities which the market offers and the


changing trends in the monginis-cake.
The project also covers a brief study of monginis products with
reference to above points.

WHAT DID PRIMARY RESEARCH GIVE US ?

The Initial primary research is performed to do a


analysis of Monginis with reference to advertisements
and their popularity including research on consumers of
cakes, pastries of Monginis..

1. Statement of the problem: The Primary Research


enlightened the downfall of Monginis, with regards to Sales.

2. Objectives of the research:

To compare various factors in the sale of product with


respect to Monginis.
To find out if the effect of advertising done by Monginis.
To find out price variations.
To find out the Value added Services

3.1 Primary objectives(s): How should Monginis deliver with


respect to sustainability against the upcoming competitions?

3.2 Secondary objective(s):


How to rediscover the Product impact created amongst the
customers , as compared to the other brands available in
the market ?
How to redefine and analyze the exact downfall of Sales, to
implement the market strategy ?

WHAT DID PRIMARY RESEARCH GIVE US ?

4. General Research questions on primary aspects:

Should Monginis advertise ?

Is Monginis famous because of advertisements only?


What are the other factors other than branding Monginis ?

When was the exact downfall of Sales identified ?


What must be the reason of the Downfall of Monginis ?

How much did the competition affect the market of


Monginis
Did price range impact on the Sales of the Monginis
products ?

Did the quality of Monginis affect the sales of Products ?

WHAT DID MONGINIS ANSWER TO OUR PRIMARY


QUERIES ?

Do you serve fresh products everyday?


Yes, all Monginis cake shops, in all cities, offer only soft
and fresh products delivered daily.
Q. What do you do with unsold products?
Following strict protocols Monginis cake shops returns
unsold Cakes, Pastries, Savouries and Snacks on a daily
basis to the bakery. Depending on the state of
deterioration, if still edible, the Cakes, Pastries, Savouries
and Snacks are given to charity or used as cattle feed. If
products are stale, the entire lot is destroyed. Test

Q. What is the shelf life of Cakes and Pastries?


Fresh Cream Cakes and Pastries 2 days if refrigerated.
Butter Cream Cakes and Pastries 2 to 3 days.
Q. How many exclusive Monginis cake shops are
there in India?
There are more than 500 Monginis cakes shops in 12
cities of India. The same can be viewed in our Store
Locator section.
Q. How many exclusive Monginis cake shops are
there in Mumbai?
There are 225 Monginis cakes shops in Mumbai city.

WHAT DID MONGINIS ANSWER TO OUR PRIMARY


QUERIES ?

Q. How many manufacturing units do you have in


India ?
Monginis cake manafacturing factory is located in each of
the 14 cities.
Q. How does the Gift a Cake online concept work?
All you need to do is log on to www.monginis.net From
there, you can browse our, shop by occasion, and different
categories given in the main page. So you click your
choice of product, purchase it for your loved ones, and
Monginis will gift your surprise to your loved ones. This is
the theme of Gift a Cake online with Monginis.

Q. What are the various payment options?


1. Credit Cards (Visa / Mastercard / American Express)
2. Debit Cards.
3. netBanking. (Only for Indian banks)
Q. What is the Lead Time to execute cake
deliveries?
We require atleast 72 working hours to bake a fresh cake
and deliver it to your loved ones with a personalised
message on our exclusive Monginis Gift Card.
Q. Is the Payment Gateway on the Monginis Website
Secure?
The Payment Gateway for www.monginis.net complies
with the Standard Industry Level Security & are Verified by
the following Security Providers:

WHAT DID SECONDARY RESEARCH GIVE US ?


A big question arises on the downfall of the sales by Monginis,
against the aspects of several reasoning, compared with
statistical analysis ...
COMPETITION

Local bakeries
Gourmet eateries
Sweet marts with better product varieties
Specialized French/German bakeries
Online bakeries (Storefronts operating solely through their
websites/facebook page)
PRICE VARIATIONS

Monginis products are decently priced compared to their


gourmet competitors

There are far more expensive bakeries compared to


Monginis and surprisingly they are doing very well
The buying nature of the consumer is to be accounted for
here which is changing from time to time.
In todays day and age, a mid 20s-30s individual prefers a
good quality pastry/baked product and is ready to shell
those extra bucks
PRODUCT VARIATIONS

Monginis developed some new variations in their products


list as recent as 2013-14
Until then they were selling the same classic pastries and
baked goods which were top selling items from the late
1990s to early 2000s
Where as if we compare the product variations offered by its
competitors then it is mind boggling. The new cropped up
local bakeries sell everything from cheese cakes, French
pastries, Danish baked goods, American cookies, souffls,
mousses to a variety of spiced/herbed breads and garlic
breads to name a few. These are just to name a few which
are standard hot items in every local bakeries display case
Apart from product variations we should also consider the
quality of products sold b these outlets. Monginis has some
standard products with fresh cream or butter cream as the
pastry topping. Where as their competitors are selling all
types of toppings from Nutella/Cream Cheese/Swiss
Chocolate to name a few..

WHAT DID SECONDARY RESEARCH GIVE US ?

We asked consumers about the frequency of the purchase of


Cakes and pastries , which gave us the analytical report
below ...

WHAT DID SECONDARY RESEARCH GIVE US ?

Did the branding of Monginis actually affected the Sales of


products ??
Here is the graphical response of consumers on Branding of
Monginis .. !!

WHAT DID SECONDARY RESEARCH GIVE US ?

mostly on what occasion do you eat cakes


Frequency
Birthdays, Anniversaries,
Valid

Percent

Valid Percent

Cumulative Percent

23

67.6

67.6

67.6

anytime you feel

11

32.4

32.4

100.0

Total

34

100.0

100.0

Christmas, etc.

From this question, we see 23 respondents i.e. 67.65%


respondents said that they eat cakes during various occasions
like Birthdays, Anniversary, and Christmas, etc. while only11
respondents said that they eat cakes anytime they feel. This
means that their purchase is occasional and not impulse.

WHAT DID SECONDARY RESEARCH GIVE US ?

WHAT IS MONGINIS BEST FOR ??

15

16
14
11

12
10
8

6
number of responses

Analytical figures says ....

Frequency

Valid

Percent

Valid Percent

Cumulative Percent

cakes

11

32.4

32.4

32.4

pastries

15

44.1

44.1

76.5

other snacks

14.7

14.7

91.2

none of these

8.8

8.8

100.0

34

100.0

100.0

Total

WHAT DID SECONDARY RESEARCH GIVE US ?


Parent Company

Monginis Cake Shop

Category

Cake Shops Chain

Sector

Food and Beverages

Tagline/ Slogan

What are you celebrating today?; To help people express their happiness in a
memorable way

USP

Fresh and delicious cakes at affordable price


STP

Segment

Anyone who likes to have cakes, generally or on special occasions

Target Group

People from urban semi-urban middle class

Positioning

As a trusted cake shop, that makes good quality cakes at affordable prices fo
any occasion.
SWOT Analysis
1. A very popular brand among children and parents alike
2. It has 600 retail franchises in approx 40 cities in India
3. Reasonable pricing
4. Services like home delivery, online booking and delivery of products

Strength

5. Founded around 50 years ago

Weakness

1.Quality issues because of franchise business


2.Less variety of cakes compared to competitors
3.Very less advertisement and promotion
1.Expand in India and abroad
2.Introduction of different and new varieties of cakes
3.Increase the business of toys, candles, and other celebration items

Opportunity

4. Emphasize and publicize the online ordering of products or gifts

Threats

1.Mismanagement of any franchise can affect the brand name adversely


2.Severe competition in the business
3.Increase in cost of raw materials
Competition

Competitors

1.Birdys
2.Hang out

3.Merwans
4.Sweet Chariot
5.Local cake shop owners

RECENT SURVEY BASED QUESTIONS

Q1. Which brand of cakes/pastries do you always prefer


to buy? (Tick only one)
1. Monginis
2. Ribbons and Balloons
3. Birdys
4. Hangout
5. Merwans
6. Sweet Chariot
7. Local cake shops
8. Other
Q2. Why do you always prefer to buy from the above
stated shop? (Tick only one)
1. Its outlet is near your home, workplace, etc.
2. It provides value for money.
3. Cakes are always available there.
4. The ambiance in the outlet is pleasant.
5. They provide good customer service.
6. They give various offers.
7. Other reasons

Q3. How frequently do you buy cakes/pastries? (Tick


only one)
1. once
2. once
3. once
4. once
Q4.

in
in
in
in

a week or more
two weeks
a month
six months

Mostly on which occasions do you eat buy

cakes/pastries? (Tick only one)


1. Birthdays
2. Anniversaries
3. Christmas or other festivals
4. Anytime you feel

Q5.

Rate the following factors on the scale of 1 to 5

where Monginis serves :


1- not important
5- very important

Monginis

wide range of flavors

not

least

impor

impor

tant

tant

very
neut impor

impor

ral

tant

tant

taste
decoration
softness and
sponginess
freshness
easy availability
creamy
layers of cake/pastry
ambiance of outlet
customer service
offers they provide
outlets nearby your
home, workplace,
etc.

Q6. You feel Monginis is best for______ (Tick only one)


1. cakes
2. pastries
3. other snacks
4. None of these
Q7. Do you get motivated by the advertisements of
Monginis and then buy cakes/pastries?

yes
no
Q8. What do you think about the price of Monginis
products, with respect to other Brands ?

Lower
Higher

Approximately same
Q9. What do you think about the quality of Monginis
products, with respect to other Brands ?

Better
Worse
Standard

Q10. What do you think about the service of Monginis


products, with respect to other Brands ?

Better
Worse
Standard

Q11. Any suggestions for Monginis


________________________________________________________________
Q12. Gender

Female
Male
Q13. Age

18 to 23
24 to 29
30 and above

Q14. Current Occupation

Student
Working

Q15. Highest Educational Qualification

HSC
Graduation
Post Graduation

WHAT WAS THE RESEARCH PROBLEM


IDENTIFIED FROM ABOVE ANALYSIS ?

Lets come up with the research problem , from the


suitable Primary and Secondary research analysis in
terms of Survey and Statistics.

1. COMPETITION
With reference to the stats, Monginis failed to sustain in the
market, with the introduction of the competitors.
Monginis, who once had a hold of customers, as to When it
comes to cake, its Monginis has now failed to sustain the
consumers on the basis of taste, price and brand loyalty.
The introduction of competitors like Birdies and Ribbons &
Balloons had eaten up the market, by the strength of product
quality along with the proper strategy branding.

A sudden increase in the Cake variant dealer shops gave the


options to the cake consumers to pull the distinctive and
difference of opinions , with respect taste, cost and service .

When it comes to the competition, the consumers made life


tough for Monginis, as there as no Monopoly in this field of
Sales .. !!

Research found the surprising analysis of drop down , with


regards to the sales of products delivered by Monginis ... !!

Have a look at the no. of percentage in terms of


consumption of Cakes and Pastries ....

GRAPHICAL ANALYSIS WITH COMPETITOR MARKET

6%

3%
21%

9%
Monginis
Ribbons and Balloons

3%

Birdy's
Hangout
Merwans
Sweet Chariot

15%

Local cake shops


others

44%

Monginis failed to be on TOP being the most loyal brand


to consumers !

2. VALUE ADDED SERVICE

How does Monginis manage to deliver good value while


making good money? Here is paraphrasing what
Khorakiwala said over a long freewheeling conversation
having a good team at the top which has been with us for

20 years. Suppliers almost act as partners and are not


changed so often.
Employees never had a strike. Indians are some of the
easiest people to deal with. They are so exploited that if
you treat them with respect they will return that respect.
At the plants, industrial relations is handled by not very
high level officials. There was one instance when some
local politicians tried to implicate us in an environmental
issue. It is the workers who chased them away."
But ....In Comparison, there is a lot more to add in the
VAS with the upcoming competition :
1. Merwans offer complementary accessories with
the specific size of cakes and amount of
purchase.
2. Birdys had started with the free coupons with
the discount on next purchase.
3. Ribbons and Balloons had produced a Loyalty
Bonus on the consumers with the regular
purchase, in the form of points, which was
discontinued later.
4. Brownie Points Cake shop has turned up with
Find your store concept where consumers do
not need to search for the shops.
3. PRODUCT VARIATION
Variety of Product innovations lacked by Monginis
!!

Monginis developed some new variations in their products


list as recent as 2013-14

Until then they were selling the same classic pastries and
baked goods which were top selling items from the late
1990s to early 2000s
Where as if we compare the product variations offered by
its competitors then it is mind boggling. The new cropped
up local bakeries sell everything from cheese cakes,
French pastries, Danish baked goods, American cookies,
souffls, mousses to a variety of spiced/herbed breads
and garlic breads to name a few. These are just to name a
few which are standard hot items in every local bakeries
display case
Apart from product variations we should also consider the
quality of products sold b these outlets. Monginis has
some standard products with fresh cream or butter cream
as the pastry topping. Where as their competitors are
selling all types of toppings from Nutella/Cream
Cheese/Swiss Chocolate to name a few..
The range of products with the brands
BRAND

RANGE OF PRODUCTS

MONGINIS

Approx 150 to 175


products
Above 400 products

RIBBONS AND
BALLOONS
BIRDIES
BROWNIE POINTS
MERWANS

Approx 280 to 300


products
Approx 250 to 280
products
Approx 220 to 250
products

4. BRANDING ( THIS IS PENDING .. Please add if you


have any ideas )
Why Monginis failed in the accurate branding of
product ???
5. PRICE
Monginis does offer higher-value baked items but
as a brand it does not seek to position itself as
premium
Monginis' business in eastern India is run through two
separate operations -- industrial (long-life products) and
retail (the fresh stuff you get in the shops). While Taizoon
Khorakiwala is the majority partner, Arnab Basu (the two
are long-term associates) is the director who set up the
business in eastern India in 1991. Today, Monginis in
eastern India has a turnover of above Rs 300 crore, up
from Rs 8 crore in 1997 when Khorakiwala came in.
The two operations together employ around 2,000 and, as
Khorakiwala puts it, "earn an EBIT margin in the high
teens. We used to be much cheaper but believe in
protecting our margins." Adds Basu, "We don't make the
same margin in all products and a large selling item which
earns a low margin can be great for the brand" and even
pull in the high-value-high margin clientele.
In the bakery business in eastern India, Monginis claims a
market share of 40 per cent in the retail segment and a
quarter in the industrial segment. Among brands popular
with the middle class, Monginis shares the same space as
Kathleen's and Sugar & Spice. Khorakiwala and Basu have
another, somewhat novel, way of describing their market
share. "We pay as much taxes as the other bakery players
in the state put together and there was a time when we

paid nearly all the taxes coming from the bakery business
in the state." Khorakiwala has a thing about paying taxes
and claims it makes as much business sense as
maintaining multiple books of accounts has its own costs.
"We are very un-Indian in some ways."

Monginis' pursuit of its brand attributes, while making


money is best illustrated by the story of its Rs-3 cupcake.
It was introduced in 2000 and still sells at that price but a
lot has happened in between. Thirteen years ago, most of
the equivalent local products were priced at Rs 2.50 and
Monginis actually offered a far-better packaged product
with a longer shelf life which was costlier and aspirational.
With it, Monginis introduced the unique format of the
single-serve packed cake, which was Khorakiwala's idea.
In a few years' time there were many competitors offering
the same 35-gm product, a margin war started and the
Rs-3 cake became a commodity. To preserve margins,
Monginis made it first into a 25-gm product, which is now
20 gm. Realising that the cupcake was essentially an
entry-point for customers, in 2006, it came up with the Rs5 cupcake with cream injection and thereafter, the Rs-7
'choco delight' cupcake. Today the Rs 5-7 range sells
300,000 pieces daily and the Rs-3 cake 30,000. To the
customer with rising incomes, the equivalent of the the Rs
3 cupcake of 13 years ago is a Rs 5-7 cupcake, capturing
the crux of Monginis' success over the years.

With some of their historic low-cost products no longer


being promoted, and with both costs and consumer
incomes rising, I point to the phenomenon I have
personally observed. The upper-middle-class people like to
tuck into a Monginis product in the privacy of their homes
but at a birthday party where guests ask where the cake

is from, it does not do to say that it is Monginis. So where


does the brand go from here?
We keep monitoring consumer trends and the pricing
ambiance. But we do not care for the chatterati, its upperclass values. Monginis represents my personality and
ethos -- quality at affordable prices.

WHAT CAN BE THE FEASIBLE SOLUTION TO


INCREASE THE SALES OF MONGINIS ?

1. INVESTMENT ON RIGHT BRANDING OF PRODUCT

SOCIAL MEDIA
The best way to brand a product with a least cost brand
marketing is done through Social networking sites like
Face Book , Twitter etc ...
Secondly, using the Media Conversations like Whatsapp,
Line, Application Ads, You Tube Rollovers etc.

PRINT MEDIA
The media branding comes up second best in terms of
cost, with the higher amount of investment with respect
to the size of fork of branding styles used.
Daily food magazines, News Paper Ads considering the
column cost, Banners, Pamplets etc can be effective to
introduce the re-designed products.

LOUD BRANDING

The stand alone hoardings, tie ups with the


Transportation vehicle hoardings, Television
advertisements etc comes up with the most effective ,
but pocket leasing branding, against the guaranteed
change in the results.

MOUTH TO MOUTH BRANDING


Till date, the most sound branding is done with the
word of mouth.

2. INTRODUCTION OF NEW ARRIVALS


( THIS IS PENDING AS WELL .. Please add if you
have any ideas or else i will finish this part ... )
3. FOCUS ON VALUE ADDED SERVICES

Corporate Gifting Ideas

We make a living by what we get. We make a life by


what we give.
- Winston Churchill

Why Cakes for Corporate Gifting?

Cakes are strongly associated with celebrations and


happy moments;
If organization is targeting birthdays / anniversaries for
gifting, then there cannot be a better gift than the Cake
to create an everlasting impression;
For festive occasions like Xmas / New Year, cake is the
most appropriate gift.
Last but not the least; it stands out in a clutter of gifts
one receives on popular occasions.

Why Monginis Cakes for Corporate Gifting?

Monginis is no. 1 Cake brand in India.


It is ISO 22000 certified company;

It is committed to making personalized deliveries


across 37 cities in India and saves you atrouble of
handling logistics.
It is flexible enough to give you unlimited creativity;
It has ample experience in handling corporate gifting of
reputed companies.

HOW KICKBACKS CAN BE SUCCESSFUL ??

KickBack Systems offers successful relationship management


solutions including customer loyalty marketing and reward
programs for bakeries and pastry shops.
Customers love their pastries and baked goods. Like many
other foodservice segments, competition among bakeries, cake
shops and pastry shops operators is fierce. To differentiate your
offering beyond the bakery display case, a solid loyalty
program can help drive customers to your store while
cultivating a new loyal base of consumers.
Rewards programs, such as KickBack Points, are beneficial to
companies in a multifaceted way: The more customers use
these tools, the more insight the business gains into their
habits and what they might want. From there, companies such
as KickBack use the information to reward customer loyalty
based on their purchase behavior, which allows them to
determine which rewards to send to frequent shoppers.

Over time, by identifying your customers shopping patterns,


you can learn how to reward your best customers and keep
your brand top of mind with occasional customers, ultimately
converting them to fulltime patrons. Whether you have a chain
of cupcake shops or just a single store, KickBacks relationship
management solution can arm you with the valuable tools you
need to watch your sales rise.
A good customer loyalty program can be the icing on the cake
when it comes to customer satisfaction. It is an easy way for
small businesses to show their personal side and remain
competitive in spaces dominated by big business.
In todays mobile era, costeffective rewards programs are just
as fruitful as the ones put in place by bigger players.
Customer retention programs are not just for big brand name
players. They can provide many benefits for small businesses,
such as increasing sales, helping them stand out and
developing a stronger relationship with their customersand
technology is making it easier and cheaper than ever before to
launch one.
4. PRICING
Monginis needs to restructure costings .. !!
I have stats related to this part ... So will complete this
by myself ... But u guys can add to it as well ... !!

www.wikipedia.com
www.monginis.net

http://www.sndtonline.in/moodle/

www.googleimages.com
www.surveymonkey.com

References

http://www.mbaskool.com/brandguide/food-and-beverages/2600-monginis-cakeshop.html
http://www.monginis.net/customer-service/faqs/

You might also like