Professional Documents
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MANAGEMENT PROBLEM
The new Bread is trying to introduce itself into the market, so they want to study the current market status, as do they consume bread, if so
then what brand of bread(s) do they consume.
RESEARCH PROBLEM
To study the consumer behavior about the bread and studying there purchase decision of a particular brand.
RESEARCH OBJECTIVES
1. To study the industry analysis of Bread through primary & secondary data.
2. To study the placement Strategy of Bread manufacturer.
3. To study the consumer behavior towards Bread.
MANAGEMENT PROBLEM
The new Bread is trying to introduce itself into the market, so they want to study the current market status, as do they consume bread, if so
then what brand of bread(s) do they consume.
RESEARCH PROBLEM
To study the consumer behavior about the bread and studying there purchase decision of a particular brand.
RESEARCH OBJECTIVES
1. To study the industry analysis of Bread through primary & secondary data.
2. To study the placement Strategy of Bread manufacturer.
3. To study the consumer behavior towards Bread.
INTRODUCTION
Bread industry is elevating at a very higher pace and at the same time it is dawdling at an enormous rate. Bread, which is less of a need and
more of a want, is creating a difference in consumers’ life. To some people its mere wastage of money and to other at the same time it is a
readymade food which is ready for consumption with very less efforts, easy to carry and convenient. People are to some extent reluctant in
consuming bread and other bread related things, they give bread a very pessimistic view, and regards it a western way of having a breakfast.
Despite this all, people still consume bread but at different occasion and juncture.
We have conducted a bread industry analysis on how much breads are sold every year and how much that translates in to PAK rupees. We
have also looked into different historical and future trends which have effected and which will affect the sales and consumption of bread in
overall. Additionally, competitor’s analysis was carried out on different major brands available, their respective market share, and the role of
promotion which plays a very significant role in accelerating and boosting the sales.
We have also carried an in-depth interview with different company’s employee to give an additional insight on how their market shares are
monitored in regards with different market trends, the existing players’ market share and how they respond to new entrants.
There are around 30 different bread companies in Pakistan, even some of them have multiple SKUs, but in this project we are not taking
SKUs in account. We have only considered breads consumption without any regards to a specific brand of bread.
Karchi has an average market of 53,3334 loafs in a day, in other words 53,3334 units are sold in total of the existing bread companies. This
also includes the major ones and the unorganized bread maker i.e. bakeries and the like. The average size of a loaf which is sold in greater
frequency is of 400 grams.
IN PAK RUPEES
The above figure translates in to approximately PAK 8,213,344 a day, and 5.2 million tons a day, but this figure does fluctuate in accordance
with the promotions and advertisements undertaken by major bread brands in to account.
The average growth rate in the industry is 10% per year, this rate remained constant till 2003, but due to promotional activities carried out by
different brand the growth rate accelerated from 10% -- 15% in 2004, to 20% in 2005.
Historical data revealed that AVERAGE breads sold in past three years were as follows: -
Breads are made on two major sectors, namely industrial sector and local bakeries.
As stated earlier, the bread consumption in Pakistan is comparably less then western world. PARATHA, PURIS and other related home
made substitutes are used instead of bread at different intervals (breakfast, snacks, and the like)
COMPETITORS ANALYSIS
There exists a mild competition among several major brands of breads; each brand of bread desires to play a monopolistic role in the
industry, but they are not. The competition is more of regional and national level. For example DAWN bread has two major competitors,
WONDER bread which is competing at national level, and VITA bread which competes at regional level with DAWN. The former is not
considered a threat by dawn bread because it only concentrates on a specific niche of the market; and only supplies bread to milk shops and
local bakery stores.
DAWN bread has a market share of 35 to 40% in Pakistan, it has 45% share in Karachi, targeting SEC A+, A , B, and C. the respective share
in each segment is 75%, 60%, 45%, and 35%.
BUNNY bread a major competitor of DAWN, runs neck to neck competition, its market share all over Pakistan is almost the same as DAWN.
The reason being their heritage, BUNNY is in market since 1960, but Dawn stills has a dominant market share only because their share in
SEC A+ is exorbitant.
WONDER has a market share of 12%, VITA which almost negligible has a market share of 4%, BAKE PARLOUR in Karachi has a market
share of 17%. CLASSIC which operates in karachi has a approximate market share of 7%
Different bread companies exercise different tools to boost up their sales, DAWN for example employs a strategic alliance with UNILEVER
Pakistan, they together advertised their product i.e. Blue band and DAWN bread showed together on different hoardings to capture
audiences attention towards consuming bread when they consume blur band. That specific add was targeted at school kids.
The sales are greatly accelerated by seasonal promotions. School and college students are the primary target market for the bread
companies. The sales in the following period increase at substantial amount.
Beginning August to December 15, and January 1 to May 25, sales increase by 15 to 20%. For instance Dawn’s seasonal sales
approximates to PAK RS120, 000,000 a day. Sales donor only increases, but also decreases in off season by 25%. In RAMADAN the sales
goes down by 50%.
Bread business is a very volatile one, its very difficult to predict the right demand. Sometimes by bread distribution, when not done properly,
companies can suffer a huge loss, because it is not only giving your bread a shelf space, but it need to be sold, because retailers only pay or
those which are sold, and the rest are returned to the company. The average return in the industry is about 30 to 35%, which is a mere loss.
According to primary research conducted, it was revealed that in low category there is very low brand loyalty, and consumer switch brand on
day to day basis.
To increase a market share of any respective company, sales people are considered as an integral mean to disseminate the right information
desired by the top management, because he is the one who has a greater involvement with bread retailers and other related stores.
Territorial segmentation is mostly done when it come to bread distribution, sales people are given territories or an areas to distribute in, each
area has sectors and every sector has 35 to 40 shops, salespeople are the one who knows exactly how much to supply and where to supply
the bread.
Merchandiser are other mean to transform market share in to quantitative data, who visits different areas and take a physical check on every
brand of bread. The criteria is very simple, they usually look into how much of every brand is placed in the shelf? What is the turnover of
every brand? What is the visibility? and the like. By doing so, companies get to know the daily sales of every respective brand.
It was discovered that the weaker brand’s market shares are going down periodically, and hence existing bread companies are shrinking.
NEW ENTRANTS
New entrants in the market are also taking place at a higher pace, and at the same time vanishing as well. The reason for their early exit from
the industry is as follows: -
Keeping the above pulls in consideration, companies find it very easy to enter, but very difficult to sustain in the industry, the reasons are as
fallows: -
1. New entrants offer discounts and incentives above the trade price
2. Weak rental/delivery system
3. Giant bread companies beat them with heavy promotions
HYPOTHESIS
a) If new or exisiting brand company introduce Garlic flavored bread then there are 70% responders said they are interested in purchasing it
and our analysis is if they do so then business sales would grow.
b) over all market leader is Dawn and if any competitor of its take the advantage of this flavor bread then it would be strong point for them.
c) Mostly Dawn is been consumed at every household and its Plain type of bread is consumed.
RESEARCH FINDINGS
1. The following percentages shows that in past one month the brand of breads which were mostly been consumed:
62% Dawn
1% Morning Fresh
7% Wonder Bread
1% Harry’s Bread
3% Brady’s Bread
1. 87.6% of the consumers prefer Branded / Company breads over Unbranded Breads.
2. 31% prefer Large Bread size, 54% Medium Bread size, 30% Small Bread Size.
LIMITATIONS
1. It was the first research experience of the researchers; therefore some errors can be expected in interpretation. However, the
guidance was taken from Dr. Akif Hasan who is considered an authority in Business research.
2. The sample might not be a very good representative of the population as the personal interview was used to conduct the survey.
This approach was adopted because of time and cost constraints.
3. 3 There was no complete sampling frame, which could insure us that our sampling procedure is accurate.
RESEARCH PROBLEM
The research problem was to identify the consumer’s perception regarding:
The data collected would give the overview about the consumer behavior, buying behavior and mindset towards bread.
RESEARCH OBJECTIVES
For this research project, we have identified the four research objectives. A brief description of them is as follows:
1. 1 To identify the consumer awareness level with regards the bread market.
The intention is to check the level of consumer awareness with regards the bread market. We want to check if they are able to identify to
various brands that are available in the market.
1. 2 To find out the most important characteristic that the consumer is looking for in a bread at the time of purchase.
Every consumer is looking of some feature in any bread and the presence or absence of that feature would determine the purchasing pattern
of the consumers. In this research we found out that how they determine the quality.
1. 3 To identify whether the consumer find these important features in there preferred brand.
We want to check the amount of people who find the characteristics mentioned. This would highlight any weakness or strength that is
attributable of a brand.
After identifying consumer perception regarding particular brand of bread in general and in regards of its replacement, we want to find out the
purchasing pattern of the consumers and the ratio of consumers who are loyal to there brand of bread and would they like to shift to
unbranded brand.
RESEARCH APPROACH
The data collection method used for the research was survey method with the measurement technique being questionnaires. Our survey
included 100 households from four different locations representing four different income levels and thus different markets.
The primary data was to be collected through personal interviews. These interviews were conducted directly as in face to face.
Based on the interviews the questionnaires were filled and the data was tabulated to arrive at the results so as to interpret the actual findings
that will help the company framing their future plans and policies.
The data collection approach adopted for conducting this research is the survey method. The types of interviews were structured direct only.
We opted for structured interviews as this method reduces the possibility of interviewer bias and with our limited experience in conducting
such surveys, this would ensure greater accuracy of data. The direct interview method of interview was used because the people being
interviewed demanded full attention and knowledge about the actual purpose of the research. The researchers themselves administered the
questionnaires.