Business Introduction[1]

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SWEET HOME BAKERY

PROJECT REPORT SUBMITTED

TO THE

BIRLA INSTITUTE OF TECHNOLOGY, MESRA

(DEEMED UNIVERSITY)

FOR THE PARTIAL FULFILLMENT OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

AAFREEN JAMALUDDIN HASIB BBA/7014/08

CHANDAN PARIMAL MAHAJANI BBA/7017/08

ANTARA BOSE BBA/7006/08

RESHMA P MATHEW BBA/7039/08

FATIMA AFTAB NALWALA BBA/7047/08

UNDER THE SUPERVISION OF

MS. NUPUR SEN

WALJAT COLLEGE OF APPLIED SCIENCES

KNOWLEDGE OASIS, MUSCAT

SULTANATE OF OMAN

JANUARY 2011

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DECLARATION

This is to certify that the present report is based on myoriginal work and data collected and indebtedness to

other works/publications has been duly acknowledged

at the relevant places. It has not been submitted in part

or full for any other diploma or degree of any other

university.

Name of the group members:

signatures:

AAFREEN JAMALUDDIN HASIB BBA/7014/08




FATIMA AFTAB NAWALA BBA/7047/08

Signature:

Ms. Nupur Sen

(Project guide)

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Date:

EXAMINERS CERTIFICATE

This is to certify that the Project Report titled Sweet Home Bakery

Submitted by AAFREEN JAMALUDDIN HASIB BBA/7014/08




FATIMA AFTAB NALWALA BBA/7047/08, of BBA Vth semester 2008-2011

Batch, has been examined by me and the marks awarded have been submitted.

Examiners Signature:

Name:

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Acknowledgement

First of all we would like to thank the god almighty for helping us finish

our project to our full satisfaction and our parents who have been of great

support both morally as well as in all our activities.

We would also like to thank the Dean, HOD and the college who have given

us the opportunity to express our talent through this project. We hereby

express our sincere gratitude to Miss Blossom, our class advisor who has

helped us and guided us.

We also take this opportunity to express our sincere appreciation to our

guide, Ms Nupur Sen, who has patiently given us all the project guidance

that we could ask for. We express our gratitude to Ms. Srilekha Goveas for

her assistance in our project work.

We are also grateful to Mr. Karthik, outlet manager of Muscat Bakery

markets, Mr. Pradeep, accounts manager and Mr. Mathew, project

manager of Barkha Automatic Bakery and Pappu Bakery management to

provide us with adequate information and giving us the opportunity to

carry out market surveys and prepare feasibility reports on the Bakeries.

Finally, we thank God for blessing us in all our endeavours.

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Contents Page Numbers

Business Introduction 9

Purpose/Objectives 12

Scope 12

Limitations 12

Market Strategy 12

Research Methodology 13

Sampling process 13

Source of Data 13

Data collection method 13

Review of Industries related to the product/ business 14

Description of products 16

Plant size 21

Location 21

Selection of Machinery 21

Cost of erection of the proposed building & land

improvements

25

Various Raw materials used 25

Methods of transportation i.e. Delivery 28

Analysis of Demand 29

Target customers 30

Competitors 31

Marketing practices of competitors 32

Contents Page Numbers

Fixed capital 34

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Working capital 34

Total investments 35

Balance Sheet 36

Assumptions 37

Sales Forecast 38

Conclusion 39

Summary 40

Disclaimer 41

Questionnaire 42

Bibliography 44

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Business Introduction:

This is a Partnership (L.L.C.) business which is carried out by 5 partners

namely: Aafreen, Antara, Chandan, Fatima and Reshma. Contribution of capital

by each of them is as follows:

o Aafreen R.O. 15,000

o Antara R.O. 15,000

o Chandan R.O. 15,000

o Fatima R.O. 15,000

o Reshma R.O. 15,000

Profit sharing ratio is 1:1:1:1:1 i.e. all profit

and losses are shared equally.

The business is about Bakery with a Home

Delivery. This type of business at present

does not exist in Oman. This type of

business will attract the customers especially

the Housewives as well as people who have

transport issues and also for those who get less time to get to the Bakery.

From the survey, we could find how often people would visit to the bakery:

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How often do you visit the Bakery?

54%

12%10%

6%

18%

Daily

Alternate

Once a week

Once in 2 weeks

Hardly ever

This pie chart depicts that 54% of the respondents visit the Bakery once in a

week. This implies that customers who have transport problems and who have

less time to visit the Bakery.

We have tried to provide the services according to customers preference. Thetimings of the delivery are based on customer convenience.

In the below chart shows the timings preferred by customers:

Timings Tally Percentag

e

Morning 9am- 11am 13 28%

Evening 5pm- 7pm 33 72%

46 100%

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What timings do you want theproducts to bedelivered?

Evening 5pm-

7pm

72%

Morning 9am-

11am

28%

Morning 9am- 11a

Evening 5pm- 7pm

The above pie chart depict most of the respondents (72%) prefers the Evening

time (5pm- 7pm). A small amount of respondents however choose (28%) in the

Morning (9am- 11pm).

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Purpose/Objectives:

To do feasibility study on setting up of a bakery that provides homedelivery of fresh products and more of vegetarian i.e. Egg less products.

The business is going to be profitable as only availability at shops is

present and not door-to-door delivery.

We believe that Bakery with home delivery is the best and this servicemakes them different from other bakeries.

The various methods to complete our research will be through:

1) Questionnaires

2) Interview Method

3) Real Time Walk-In Checks

Scope:

This project has been focused on the services, quality and efficiency of Bakery.

Limitations:

1. Time consuming-

o Took time to select a suitable location for the establishment.

o Right equipments availability.

2. Focus is on the Muscat city and not other regions.

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Marketing Strategy:-

o Packaging

o Advertisement in newspaper & magazines

o Pamphlets/Brochures

o Quality

Research Methodology:

Research Design:

Descriptive research types: Surveys and Interviews research.

Sampling Process:

Sample Size:

Sample size taken under this research is 50 people. The distribution of 50

people is as follows:-

1. Family with children

2. Students

3. Business men

4. Youths (Working/Non-Working)

Source of Data:

This study is been taken as a primary data because there is prior information

available. Primary data is that data which is drawn directly from the source, that

is through providing questionnaire and interviews of Bakeries.

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Data Collection Method:

In the present study of method collecting primary data is through

questionnaires. The questionnaires are given to the persons concerned with the

request to answer the questions.

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Review of Industries related to the product/

business:

Monginis Foods Pvt Ltd:

Type Private company

Industry Bakery, Food Precessing, Packaged FoodsFounded 1960

Headquarters Mumbai, India

Key peopleZoher H Khorakiwala (Chairman), Kumail H

Khorakiwala M.D.

Products Cake Pastry, Chocolate

A live example to such kind of business is Monginis is a major Indian pastry,

cake and general bakery chain based in Mumbai, with shops in 11 Indian cities

like Mumbai, Kolkata, Hyderabad and Cairo, the capital of Egypt.

Monginis sells itself as "The Cake Shop",

producing ready-made as well as order-made

cakes for catering or carry-out. Individual cake

slices are also kept in Monginis stores for dine-

in customers. The chain sells both Indian and

Western savouries, including samosas, puffs,cutlets and doughnuts. Apart from these, snack

foods and breads are also sold at Monginis

shops. Monginis has a product line for

diabetics, and offers themed products during

Diwali, Christmas, Easter, EID and other

festivals.

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http://en.wikipedia.org/w/index.php?title=Food_Precessing&action=edit&redlink=1http://en.wikipedia.org/wiki/Doctor_of_Medicinehttp://en.wikipedia.org/wiki/File:Monginislogo.pnghttp://en.wikipedia.org/wiki/Doctor_of_Medicinehttp://en.wikipedia.org/w/index.php?title=Food_Precessing&action=edit&redlink=1


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Monginis has made a name for itself in site delivery and accessorized carry-out

catering, with telephone and internet ordering options. It counts 558 exclusive

franchises in total and at least one production centres each, in 38 cities. These

include some of the biggest metropolis, such as Mumbai, Kolkata and

Hyderabad. 215 of these are in Mumbai, where the company is headquartered at

a 42,000-square-foot (3,900 m2) office/factory complex. Besides Mumbai the

company has a considerable presence in the city of Kolkata (130 shops), Puna

(60 shops), Goa (34 shops). Monginis also supplies less perishable products toover 10,000 locations.

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Description of products:

Bread:Wholemeal Wheat bread

Brown bread

Garlic bread sliced

Garlic sticks

White Bread sliced

Big Wholemeal buns

Small Wholemeal buns

Fruit bread

Khuboos

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Cakes:

Birthday Cakes (egg less)

Cup Cakes (egg less)

Chocolate Cup Cakes (egg

less)

Vanilla Cup Cakes (egg

less)

Assorted Cup Cakes (egg

less)

Pastries (egg less)

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Snack items:

Vada pav

Vegetarian Puffs

Non- vegetarian

Puffs

Samosas

(Big/Small)

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Sandwiches:

Cheese Sandwich

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Vegetable Sandwich

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Plant Size:

Small and Medium Scale business.

Location:-

o Location is Al Wattayah Shell Petrol pump.

o Choosing the location because it is in the heart of the city and the

delivery can be done according to area-wise.

Selection of Machinery:

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o Microwave oven

o Electric deck oven

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o Metro shelving unit

o Cooking range

o Vegetable cutter

o Stainless Steel trolley

o Work Table

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o Cutting board/ with stand

o Cup cake moulds Big/ small

o Cake moulds

o Cream Cones & Nozzles

o Khuboos Machinery

o Bread moulds

o Baking trays

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Cost of erection of the proposed building & land

improvements:

Furniture & Fittings- R.O. 1,500

Various Raw materials used:

o Wheat & Plain Flour

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o Yeast

o Essence/ Colour essence

o Cooking oil

o Ghee

o Baking Powder

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o Soda Bicarbonate

o Butter

o Whipping cream

o Sugar & Salt

o Chocolate chips

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o Coco powder

o Cheese

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o Vegetables

o Non- Vegan items

Methods of transportation i.e. Delivery:

Delivery van with suitable features included for storing bakery products.

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Analysis of Demand:

Do you prefer Home delivery?Tally Percentage

Yes

No

34

16

68%

32%

Total 50 100%

Do you prefer Home Deliver

68%

32%

YES

NO

From the above pie chart we can infer that, 68% of the respondents prefer Home

Delivery and remaining 32% are indifferent.

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Would you be willing to pay a nominal charge for

Home delivery?

Tally Percentage

Yes

No

32

18

64%

36%

Total 50 100%

Would you be willing to pay a nominal charge forHome Delivery?

YES

64%

NO

36%

Y

N

From the above pie chart, 64% of the respondents are ready to pay an extra

charge to have the products delivered at Home. 36% of the respondents

however are not willing to pay the extra charge.

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Target Customers:

Target customers are house-wives who do not have means or time to

travel for purchase.

Small coffee shops, super-markets.

Competitors:

Muscat Bakery

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Switz Bakery/ Modern Oman Bakery

Al-Bustan Bakery

Marketing practices of the competitors in Oman:

Competitors like Muscat Bakery, Switz Bakery provide their products for sale

in Hypermarkets, small super markets etc. Muscat Bakery has a lot many

branches within the Muscat city itself. Recently they have introduced Open 24

hours Bakery in Al- Khuwair and Darsait.

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Fixed Capital:

Working Capital:

Working Capital

Monthly Amount Yearly Amount

Salaries 1,200 14,400

Water Consumption 20 240Raw Materials 2298.5 27,580

Electricity & lighting 50 600

Advertisement 150

Rent 400 4,800

Insurance 400

Stationary 200

Fuel expenses 150 1800

Telephone Expenses 15 180Accommodation expenses 150 1,800

Legal expenses 500

Miscellaneous expenses 1,000

Total 53,650

Fixed Capital

Particulars Amt

Machinery & Equipments 10,000

Office Equipments 450

Furniture & Fittings 1,500

Vehicle (1) 6,000

Refrigerator 300

Telephone Connection 50

Board Expenses 600

Filters 6

Total 18,906

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Total Investments (Fixed capital & Working capital):

Total Investmaents

26%

74%

Fixed capital

Working Capi

From the above pie chat we depict that, from the Total Investment 74% of the

Investment is used for Working Capital. And the rest 26% for Fixed Capital.

Fixed capital 18,906

+ Working Capital 53,650

Total Investment 72,556

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The charge taken per delivery is 0.200 baize.

Approximately 50 deliveries per day are done. Therefore 50 * 0.200 = R.O. 10

is earned per day. For 1 month the Total income earned is R.O. 300. This

amount is added to the monthly sales i.e. 5690 + 300 = R.O. 5990/-

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Assumptions:

Sales*Sold per

day

Sold per

Month

ItemsPrice per item

(R.O.)**

Total

(R.O)***90 White Bread sliced 0.200 540

80 Khuboos 0.100 240

60 Small Wholemeal buns 0.100 180

40 Big Wholemeal buns 0.200 240

50 Brown breads 0.500 750

100 Cup Cakes 0.050 150

50 Flavoured Cup cakes 0.100 150

10 Birthday cakes (1kg) 4.000 40

4 Birthday cakes (5kg) 8.500 34

50 Snack items:

Samosas Big (3 pieces) 0.100

Samosas Small(40 pieces) 1.000

Vegan Puffs 0.150

Non- vegan Puffs 0.200

Vada Pav 0.200 2475

50 Sandwiches:

Vegan Sandwich 0.200

Cheese Sandwich 0.150 525

15kg Cookies (per kilo) 3.000 45

30 Garlic sliced bread 0.200 6

150 Pastries 0.100 15

30 Garlic Sticks bread 0.250 7.5

30 Wholemeal Bread 0.200 180

15 Fruit bread 0.250 112.500

TOTAL 5690

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Sales Forecast:

Total Sales Forecast

2010 2011* 2012**

68,280 71,694 78,800

Growth - 5%, increase in growth 10% increase in growth

* 2011- We have introduced a new Delivery van as there is lot of demand.

For the regular customers we are introducing Any Time Delivery service andDelivery of Birthday cake as gifts and making of Treat or Goody Baskets for

various occasions and festivals.

**2012 Holding competitions as publicity stunt. We are expanding and

acquiring new Branches in Barka & Sohar.

Note:

* Sales Table shown above is sales for 1 month.

** The price per item does not consist delivery charge.

*** Total (R.O.) is the amount for 1 month sales.

The above table includes sales through delivery to shops, supermarkets &

home delivery. Per Delivery Charge Costs R.O. 0.200/bz.

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Conclusion:

From the above survey we conclude that, this type ofbusiness is going to be profitable and successful inOman. The customers will appreciate such type ofservice as fresh products are offered. The convenienceof the customers is also taken care off. The prices arereasonable and according to the survey 32 out of 50i.e. 64% of the respondents are willing to pay a nominalcharge for the delivery.

We are offering egg less products where as otherBakeries are providing this service only when customerdemands.

From this successful business we are getting goodprofit as well as satisfaction that the people like it.

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Summary:

In Oman a lot of bakery products are been consumed.

Do you prefer Bakery Products?No

6%

Yes

94%

Yes

No

From the above pie chart we can infer that astonishing94% of the respondents go for Bakery products. Just asmall percentage (6%) of respondents does not prefer.

Five of us thought of using our talent of baking andputting it up as a Bakery venture. But we thought ofadding something new and different. Therefore wecame up with home delivery service.

As the Capital is small, we looked out for the rightlocation and the right machinery available in themarket. The machinerys that we got was quoted atbest and the least price from the market.

Fifty questionnaires were distributed to various peopleabout the Bakery & Home delivery service, which gavea good response and was in favour with it.

From the whole project analysis, concluded with aprofitable venture.

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Disclaimer

********************************************************

The following questionnaire is a part of the study undertaken during

the graduate programme In Bachelor of Business Administration from

Waljat Colleges of Applied Sciences, affiliated to Birla Institute of

Technology, Mesra.

The information provided by you shall be solely for educational

research and shall not be used for publications or for commercial use.

We guarantee the confidentiality of the information you provide us.

****************************************************************

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Questionnaire

Name: _________________________ Age: _________

Occupation: ________________________ Location: ______________

Number of Family members: ____________

(Please tick)

1. Do you prefer Bakery products?

Yes No

2. How often do you buy Bakery products?

Daily Alternate Weekly

3. How often do you visit the Bakery?

Daily Alternate Once a week

Once in 2 weeks Hardly Ever

4. What kind of products are you buying?

Bread:


Cakes:

Once a week Twice or Thrice a week Monthly

Puffs/ Snack items:


Buns:


Long Breads:


Khuboos:


Cookies:


Chocolates / Sweets:


5. Your favourite bakery products would be:

_____________________________________________________________________

_____________________________________________________________________

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P.T.O.

6. During festivals do you generally:

Make & bake your own

Ordering

7. Do you prefer home delivery?

Yes No

8. Would you be willing to pay a nominal charge for Home Delivery?

Yes No

9. Would a 24 hours Bakery make a difference to you?

Yes No

10. What timings do you want the products to be delivered?

Morning between 9am to 11am

Evening between 5pm to 7pm

11. Have you ever had complaints of stale products from any bakery?

Yes, often Maybe once or twice No, never

12. How clean are the bakeries in general?

Very Moderate Not up to the mark

13. How is the service from the staff?

Good Moderate Bad

14. A common flaw (fault) you have noticed:

_____________________________________________________________

15. Would you be willing for some services like:

Bake your own cake

Delivery of Birthday cake as gifts

Treat Baskets or Goodies Baskets (E.g.; Chocolate baskets etc.)

Sugar free cakes & Sweets

Egg less cakes

Kids specialities

16. Any suggestions or added features or service that you would like in the Bakery:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

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Bibliography

Monginis- www.wikipedia.com

Interviews of Pappo Bakery and Barka Automatic Bakeryand Muscat Bakery.

Paramount for Machineries.

Business Introduction[1]

Documents