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MARKETING PLAN BREAK FAST BOOSTER

Universal Business School Karjat, Mumbai Submitted to: Prof. Bibhas Basumatary & Prof. Sushant Nanda Submitted by: Group D Atul Gurav (PGDM 2) | Shubham Parsekar (PGDM 2) | Wendell Godinho (CMBA 6) | Teja Mulagala (PGCM 5)

|Mohit Bhat (PGCM 5)| Karan Gujral (CMBA 6)

DECLARATION We Group D hereby declare that the Marketing Plan is our original Work. It is submitted in partial fulfilment of the curriculum for the degree of PGDM/CMBA/PGCM at Universal Business School, Karjat, Maharashtra. We further state that no part of this report has been submitted for any other degree or any title equal in importance to any other university.

QUOTATION

I

ACKNOWLEDGEMENT We would like to express our gratitude to all the faculty who helped us in accomplishing our project. A special thanks to our Dean Mr. Bibhas B., by extending his invaluable co-operation and guidance to complete our project. We also would like to thank the Library staff for their cooperation during our project work and special thanks to Wendell’sfamily for their unconditional support in order to complete the marketing plan successfully.

II

TABLE OF CONTENTS Topic

Page No

Executive Summary 1. COMPANY’S PURPOSE 1.1 Product Solution 1.2 Mission 1.3 Vision 1.4 Values 1.5 Goals

2 2 2 3 3

2. ANALYSIS 2.1 External/Macro Environment Analysis 2.2 Market Analysis 2.3 Competition Analysis 2.4 Buyer Behavior 2.5 Issues and Challenges 2.6 SWOT Analysis

4 5 8 9 10 11

3. MARKETING & FINANCIAL OBJECTIVES 3.1 Marketing Objectives 3.2 Financial Forecast 3.3 Financial requirements 3.4 Resource Requirements

12 13 14 17

4. MARKETING STRATEGY 4.1 Segmenting 4.2 Targeting 4.3 GAP Analysis & Differentiation 4.4 Positioning and CVP

18 19 19 20

5. MARKETING MIX TACTICS 5.1 Solution (Product) 5.2 Access (Place) 5.3 Value (Price) 5.4 Education (Promotion)

21 24 25 27 III

6. GO-TO-MARKET STRATEGY 6.1 Production/Sourcing Plan 6.2 Launch Plan 6.3 IMC Campaign Plan

27 31 36

APPENDIX Letter to Investors Bibliography

38 39

IV

EXECUTIVE SUMMARY

Waffle’s is going to launch a Ready to cook Cake mixture in a packet form, called “Break-Fast Booster” which is healthier than its competitors like Betty Crocker, Pillsbury, as our product contains ingredient like (whole grain) Multigrain, which are rich in Calories and will help people to match the daily intake of calories required per day. The location of the company is in Goa. Product will be launched in Dadar (W) Mumbai. Total budget for the launch of the product as well as for the marketing and advertisement is approximate 50 lakhs. The promotion channels we used were direct marketing, mass media, events, news apps, social media marketing, Out of Home Media, Radio, Sponsoring of Cookery show etc., which are a part of Integrated Marketing Campaign. For the Launch of the product we are going with Pre launch, and Post launch strategy. The face of the Product will be Nikita Gandhi, UAE (NRI) winner of MasterChef Season 4, India. This will help the people to associate it with a healthy breakfast other than just a cake. At the time of launch, the product will be sold at MRP Rs. 149

1

COMPANY’S PURPOSE 1.1 PRODUCT SOLUTION  Breakfast is the first meal of the day and is very important for everyone especially children as it provides nutrients such as calcium, iron, vitamins as well as protein and fiber.  Study in 4 metro cities - Mumbai, Delhi, Kolkata and Chennai found that nearly 32% skip breakfast and reasons to blame like “notime”and “not feeling hungry”and late night food habits  85% of the subjects from Mumbai strongly feel that cereals are good as breakfast for kids.  Our Product will provide a solution by giving them a nutritious breakfast in the form of cake.

1.2 MISSION Our company’smission is a two prong approach to benefit our customers by providing:  Healthy options to enjoying fresh, organic Cake  Moving from all-purpose flour to Multi Grains

1.3 VISION To provide the freshest, highest quality natural ingredients possible to create organic and healthy cakes. We pride ourselves in also using recycled packaging which allows us to co-exist within a friendly environment. We realize that there is a growing demand for healthy choices that don’t contain unhealthy ingredients that our competitors embrace. And we also know that people are not willing to sacrifice the satisfaction of good taste and premium quality.

2

1.4 VALUES • Integrity: Be real • Accountability: If it is to be, it's up to me • Passion: Committed in heart and mind • Quality: What we do, we do well

1.5 GOALS Our prime goal and objective is to deliver the fresh quality, healthy and organic product to our customers in the morning so as to give their morning a kick start.

3

ANALYSIS 2.1 External/Macro Environment Analysis Economical Since our product is quite specialized, the prices are quite high. In the event of extreme inflation or a recession, foods like breakfast cake may become a luxury to a lot of people and become something that can be avoided. In this case, in order to keep the revenue up and have customers buy our products, we may have to decrease the price of our products. However, Our Breakfast cake may suffer some losses since we do pay a high price for our suppliers.

Social: People are becoming more health conscious lately so foods like breakfast cake that are high in sugar can become less popular, especially with parents buying it for their children. Furthermore, trends are constantly changing and with desserts and pastries, the trends can change as well.

Technological: Technology does not play a huge impact on a cake manufacturing company however, as technology does improve, it can allow us to make our website and our business more well known to the public especially when we consider expanding out to other countries. New cooking products could make the process more effective and increase productivity.

Legal Documents required for setting up the Company:    

Form “A” Photo of food business operator Identity Proof: Voter ID, PAN card, Driving License, Aadhar Card NOC of Panchayat 4

 NOC of Health  Area plan with Dimension  Ownership Document/ Lease Deed

Documents required for License:  Form “B”  Blue Print Layout plan of the premises  List of Directors / Partners with full address  Photo ID and Address Proof  List of food category desired to be manufactured  Ownership Document/ Lease Deed  NOC of Panchayat  NOC of Health  Appointment, Acceptance and qualification certificate of technically qualified person. (Min B.Sc.)

2.2 Market Analysis The baking industry which is estimated to be a Rs.5000-crore industry by 2015 is expected to generate more employment and revenue in the next few years. Blame it on the fast-paced urban lifestyles, rising disposable incomes, experimental palates or the increasing number of working women in the country, the Ready-to-Cook food industry is on the upswing. The category has emerged as the next best alternative to a home cooked meal. The total processed foods market in India stands at Rs 1500 crore, out of which the Ready-to-Cook segment share is Rs 600-700 crore (barring noodles) and is expected to grow around 20-25 per cent over the next five years. (Figures Courtesy: IBEF)

On the other hand, bakery industry is one of the high growth segments of the country. As a result of changing eating habits in urban India during 5

recent years, due to social considerations and the improved standard of living and also as a result of the influence of globalization, bakery industry in India is going through impressive growth rates.

Bakery products are flour-based food baked in an oven such as bread, cakes, pastries and pies. These are of mass consumption in view of its low price and with rapid growth and changing eating habits of people, bakery products have gained popularity among masses.

Industry Scenario According to report by Research and Markets, the bakery industry has achieved third position in generating revenue among the processed food sector. The market size for the industry is pegged at US$ 4.7 billion in 2010 and is expected reach US$7.6 billion by 2015 and to reach US$10.6 billion by 2018 The per capita consumption of bakery products in India, as it stands today, is one to two kg per annum, which is comparatively lower than the advanced countries where consumption is between 10 and 50 kg per annum.

Innovations and R&D Health and wellness as a trend is seen playing out in instant cake mix like in most categories, with players bringing out healthier product options. Even the biscuits and bread are no exemption for that matter. Britannia's Nutrichoice has introduced its range of ragi, oats and 5 grain biscuits. In breads also, the whole wheat/brown bread segment is seeing an upswing The manufacturers nowadays were looking for development in the mechanisms for bakery products as well as good ingredients.

6

Trends While talking about new trends in the industry, the broader food trends were also playing out here which included unbranded to branded, rural adoption, premiumisation, health & wellness and convenience. “These trends have manifested themselves in the various new launches/introductions that we have seen in the past few years by leading players by Pillsbury and Betty Crocker.

Chef Mahajan states, “Indians have always had a sweet tooth. With more travel and exposure to the worldwide market, people have now started appreciating good quality products, good quality ingredients, exquisite finishing and are willing to pay the extra buck. People are less hesitant on spending money, leading to the possibility of higher prices, leading to the possibility of better products.” According to Rathi of Devashree, convenience food is the need of the hour, as there is increase in number of middle class people and husband and wife both are working, so they opt for ready to eat food available in the market.

Factors for Growth As India being health conscious in the recent trends, thus there exists a great opportunity to launch our product as there is an immense growth ahead.

Factors for Growth are 1. Ready to buy instant mix 2. Need of healthy breakfast

7

2.3 Competition Analysis Value Proposition: At Waffles we believe in nutrition but no compromise in taste. We make our Breakfast booster with the goodness of multigrain and flavor of cocoa. We don't believe in preservatives and we don't add any of it. Our instant cake mix is not prepared instantly, it goes through many stages and levels where we ensure the nutrition level reach from 0 to maximum. Under hygienic conditions. Hence whenever you prepare the cake at your home and served as Breakfast which will fulfil the morning nutrition requirements for the body. Betty Crocker, a General Mills brand, leads the $382 million market for cake, cupcake and pie mixes, with a 38.1 percent share. Pillsbury having the 8% share in the cooker cake market.

8

2.4 Buyer Behavior Decision Making Unit: Father is called as the head of the family to take any crucial decisions in the family whereas when it comes to food undoubtedly mother is the decision making unit. She who decides what is good or what is not for the family. At the end of the day it is her decision to choose the right product to serve the family.

Substitutes: In today's there is substitute for each and everything as many brands and product categories evolved and which is no exception for our Breakfast booster. Substitutes like Pizzas, Burgers, Maggi, Fast food, Multigrain products are to name a few.

Changing Habits: From Stone Age to modern age, humans’ food habits changed over a course of time. Thus slowly people shifting from fast food of no healthy values to nourishment options through multigrain. Chances exist even it may not be a viable option as some other replace the same in near future.

Trend: There is a great development in multigrain based food products like biscuits and bread and breakfast mixes to name a few. Each and every 9

category has its competition and is very attractive. A product which is tasty may not be healthy all the time. In this domain each and every competitor providing a tasty product yet healthy and nutritious.

Research Finding: The results have shown the ready-to-eat market segment is defined by high growth in middle class section peoples and their life style changes due to job factors. Some sections of the people agreed, availability of product choices is also deciding them to buy such products impulsively. Even some small section of the people agreed that most of the youngster don’twant to spend much time.

2.5 Issues and Challenges The challenges would be category-specific. Implementation of packaging standardization norms appears to be the big challenge. Volatility in input costs is expected to remain and this would add to the woes. The challenge for multigrain instant cake mix would be to expand the consumption of product regularly. In fact, this challenge is also a significant opportunity for this particular segment. With the right enablers from product and supply chain, this is a category waiting to explode.

The cake mix business is not a very high revenue-generating business. With commercial property rates so high, it is very difficult to sustain and have profitable retail outlets. It is also very expensive in cities like Mumbai to expand the production unit due to the same reason.”

Rathi is of the opinion that quality of flour and supply chain were key challenges for the bakery industry. Bakery manufacturers have to deal with quality of flour and other ingredients. Whereas opportunities are immense in this industry as disposable income has increased among the people.

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2.6 SWOT Analysis

Strengths:    

Giving Back to the Environment. Various Retail Outlets. Reasonable Pricing. Rich in Nutrition.

Weakness:     

First Venture. Difficult in Funding. Minimal Marketing Experience. No cake flavors. Difficult in penetration in the market.

Opportunities:    

Partner with other business. Expansion in India Growing E-commerce Building long term relationship with delighted consumers

Threats:     

Severe Competition. Raw material cost may vary. No partnership. Financial problems. Time Management can be a major issue.

11

MARKETING AND FINANCIAL OBJECTIVES 3.1 Marketing Objectives To be in the mind of the targeted customer as a healthy and tasty product. To create an image of a socially responsible brand To penetrate in the market against the big existing competitors (Pillsbury, Betty Crocker)

3.2 Financial Forecast P&L for Year ending for 31-March-2015 M/s Waffles Dr

Trading a/c & Profit & Loss a/c for year ending 31-March-2015 Particulars Rs Particulars Rs To Opening Stock ₹ By Sales ₹ 38,36,750 To Purchaes ₹ 15,90,000 To Factory Electricity ₹ 51,500 To Wages & Salaries ₹ 2,20,000 To Carriage Inward ₹ 4,500 By Closing Stock ₹ 2,10,000 ₹ ₹

21,80,750 40,46,750

To Carriage Outward To Sundry Expenses To Advertising To Selling & Distribution To Travelling Expenses To Insurance To Interest To Taxes & Duties To Depriciation

₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹

1,50,000 By Gross Profit b/d 5,000 By Discount 9,00,000 3,50,000 3,950 25,000 3,00,000 20,000 3,91,500

To Net Profit

₹ ₹

To Gross Profit C/d

60,300 22,05,750

₹ ₹

Cr

40,46,750 21,80,750 25,000

₹

₹

22,05,750

12

P&L for Year ending for 31-March-2016 M/s Waffles Dr Trading a/c & Profit & Loss a/c for year ending 31-March-2016 Particulars Rs Particulars To Opening Stock 2,10,000 By Sales ₹ ₹ ₹ 18,20,000 To Purchaes ₹ To Factory Electricity 61,360 ₹ To Wages & Salaries 2,20,000 To Carriage Inward 5,000 By Closing Stock ₹ ₹ To Gross Profit C/d

To Carriage Outward To Sundry Expenses To Advertising To Selling & Distribution To Travelling Expenses To Insurance To Interest To Taxes & Duties To Depriciation To Net Profit

₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹

24,84,960 48,01,320 2,00,000 By Gross Profit b/d 6,000 By Discount 9,00,000 3,55,000 5,450 25,000 3,00,000 20,000 3,91,500 3,04,010 25,06,960

Cr Rs 45,71,320

2,30,000

₹ ₹ ₹

₹

48,01,320 24,84,960 22,000

25,06,960

13

P&L for Year ending for 31-March-2016 M/s Waffles Dr Trading a/c & Profit & Loss a/c for year ending 31-March-2017 Cr Rs Particulars Rs Particulars ₹ ₹ 53,17,810 To Opening Stock 2,30,000 By Sales ₹ 21,75,000 To Purchaes ₹ To Factory Electricity 71,380 ₹ To Wages & Salaries 2,20,000 To Carriage Inward 5,500 By Closing Stock ₹ ₹ 2,25,000 To Gross Profit C/d

₹ ₹

To Carriage Outward To Sundry Expenses To Advertising To Selling & Distribution To Travelling Expenses To Insurance To Interest To Taxes & Duties To Depriciation

₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹

To Net Profit

₹ ₹

28,40,930 55,42,810 2,10,000 By Gross Profit b/d 8,000 By Discount 9,00,000 3,60,000 6,350 25,000 3,00,000 20,000 3,91,500 6,40,080 28,60,930

₹

55,42,810 28,40,930 20,000

₹ ₹

₹

28,60,930

14

We have invested approx. 50 lacs, for land 38% , for Plant and Machinery 31.6% and for Industrial Shield 21.1% and others 47.3%.

Capital Allocation Land

1.7% 0.6%

1.7% 5.3%

Industrial Shed Plant & Machinery Furniture & Fixture

38.0% 31.6%

Equipments Pre-Operative Expenses

21.1%

Working Capital

15

Break Even Point Analysis

In a time span of 11 months and 21 days we need to sell 25,046 units at a value of Rs. 37,31,835 to reach the Break Even Point.

TFC ₹ 27,30,000 VC ₹ 40.00 Monthly Units Sales 2146 for 1st year Units Value Period

25046 ₹ 37,31,835 11.7

16

3.4 Financial requirements

Sales & Promotion Pre Launch Post Launch Unipole ₹ 85,000 ₹ 85,000 Newspaper Ad ₹ 50,000 ₹ 80,000 Radio Ads ₹ 50,000 ₹ 50,000 TV Ads ₹ 2,00,000 ₹ 2,50,000 Billboards ₹ 2,50,000 ₹ 2,50,000 Mupis ₹ 75,000 ₹ 95,000 Metro ₹ 90,000 ₹ 90,000 Free Samples ₹ 1,00,000 ₹ ₹ 9,00,000 ₹ 9,00,000 3.5 Resource Requirements Manpower

17

4.1 Segmenting

MARKETING STRATEGY Segmentation Table Segmentation for Cooker Cake Young couple

Boomers

Single

Working women

Home maker

Elders

Young

Age

30-45

30-45

50-65

25-30

Sex

F

F

Income

High

Medium

Medium

Med

Price Sensitivity

Medium High

High

Low

Segment Attractiveness

Low High

Low

Low

Health conscious

Medium

High

High

Low

Family size

Small

Big

Big

Small

Brand Preference

High

Low

Low

High

Instant mix preference
...