Branding strategy for promotion of Baker’s Street products

1. StratiNnovva -2013
Team : We-Innovators
Anup Pawaskar
Gayatri Alat
Dhanvi Kapadia

2. CURRENT MARKET SCENARIO-BAKERY INDUSTRY
MARKET SIZE AND SEGMENTS
• Rs. 3,295 Crores (2011)
• Growing at 8% annually
• Biscuits and bread are the major bakery product and they account for 78% of
all bakery production
NATURE OF INDUSTRY
• About 65% belongs to the unorganized sector
• Dominated by the small-scale sector with an estimated 50,000 small and
medium-size producers
• Few major players in the organized sector
CONSUMPTION PATTERN
• The per capita consumption of bakery products is low(1.75 kg for bread and
900gms for biscuits)
• However Bakery products are no longer viewed as a luxury tea-time snack but
essential daily food component for an average Indian household
• Organized players trying to shift focus towards health conscious products
Industry
Segments
% in Unorganised
Sector
Biscuits 50%
Bread 85%
Pastries, Cakes,
Buns and Rusks
90%
Source: niir.org & http://mofpi.nic.in

3. BAKERY
INDUSTRY
ORGANISED
Large Mfg.
(Parle and
Brittania)
Medium Mfg.
(Cremica, Baker
Street, Monginis)
Small Mfg.
(Dalima, Super
Bakers , etc)
UNORGANISED
Small Bakery
Units
(Kayani Bakery,
GayLords etc)
Cottage and
Household
Type Mfg.
Kirana Stores
(Mom-n-pop
stores)
INDUSTRY STRUCTURE

4. MARKETING STRATEGIES USED IN THE UNORGANISED SECTOR
Local and Personalised Marketing used
Value proposition offered is freshly baked product offered hot from the oven
Once that local bakery becomes popular, it becomes a brand in itself and people from all over the country
flock to that place. Some such outlets usually do not have branches and are stand alone in nature
Offers low price range thereby tapping the middle and lower class. Premium segments also frequent here
They know their customers well due to small scale of operations and bargain when orders are in bulk (Kitty
Parties or get together)
Discounts and offers are put up on festive occasions
Home Delivery in specific cases (Bulk Orders and loyal customers)

5. STDP ANALYSIS FOR BAKER STREET
SEGMENTATION
DEMOGRAPHIC
• Males and Females
• Adults and Couples of 25-49
years, 50-60+ years
• Educated Upper Middle Class
and Middle Class (SEC:
A1,A2,A3,B1 and B2)
GEOGRAPHIC
• National Market: Metros, Tier 1
and Tier 2 cities in Western,
Southern and Northern India
• International Markets:
Countries with significant
population of South Asians
LIFESTLYLE
• Have dry snacks as an
accompaniment with tea
/coffee
• Seek value in food products
BEHAVIORAL
• Quality and nutrition conscious
• Wont compromise on health by
buying loose unbranded snacks
• Consume snacks on the go
TARGETING
GENDER
• Males & Females
AGE
• Age group 25-49 years
PRIMARY TARGET (T1)
Married, Middle aged Woman
and members of her family;
Working as well as non
working
SECONDARY TARGET (T2)
• Unmarried well-to-do
professionals(males &
females) with busy lifestyles
• Students living in hostels,
dorms in India and abroad
who miss home baked
Indian products like khari,
nankhatai, etc.
POSITIONING&DIFFERENTITATION
Baker Street to be positioned
as a brand “that provides wide
variety of bakery products
satisfying to both health as
well as indulgence seekers”
POINTS OF PARITY
• Proper packaging
• Freshness
• Use of quality ingredients like
Wheat
• Use of low calorie sweetener
or sugar, additives.
POINTS OF DIFFERENCE
• Unmatched variety in terms of
baked breakfast products,
unique flavors and tailor made
products
• Specialized products like 100%
whole wheat biscuits ,100%
vegetarian and Jain snacks
free from animal fat

6. B2B, B2C AND GLOBAL DIVERSIFICATION STRATEGY FOR NEXT 3 YEARS
PRODUCT LINE EXPANSION
• Following a Concentric
diversification strategy by
introducing new products
like:
• Jeera Butter
• Plum cakes
• Pizza base
• Slice Bread
• Potato Wafers
• Banana Chips
• Donuts
• Khakhras
• Maximising the potential of
sub brand, NutriBite
• A special line of low sugar
biscuits, khari, toast and
nankhatai especially for
diabetics
• New GF (gluten free)
breakfast products for
gluten intolerant people
DOMESTIC EXPANSION
• Enhancing distribution
network through
presence in Modern
Kiraana (e.g Chedda
Stores in Matunga, Vijay
Stores in Santacruz East
etc.)
• Establishing Baker Street
standalone stores at
strategic locations
through franchise model
to gain control over
selling process and build
stronger relationships
with customers
• Setting up kiosks in malls
and major transit depots
B2B STRATEGY
• Taking the product
mobile by creating
rapport with SMEs, small
IT firms and/or hospitals
• Standalone store in the
cafeteria as pick-me-ups
for tired employees who
will appreciate the
convenience of
purchasing without
leaving their workplace
• Association with health
camps to improve
product visibility
• Customized Corporate
Gifting
EXPORT STRATEGY
• Exports according to the
foreign market by tailoring
the products in the form
of ‘Multiseed Cookies,
Mini Bites, Caramelised
Biscuits, etc’
• Focusing on Health and
wellness aspect in North
America & European
market
• Targeting the largest
gluten-free (GF) bakery
market in Western Europe.
GF is now recognized as a
healthy food choice, rather
than a necessary dietary
requirement for sufferers
of coeliac disease

7. MARKETING AND SALES PROMOTION STRATEGIES
• Improving Brand Awareness
Pamphlets of the print ad to be distributed as an
insert in newspaper (regional and English) in few
selective strategic localities (Mumbai, Pune, Delhi)
having high concentration of our Target group
• Bringing Baker Street goods in consumers’
consideration set
A week long In-store sampling of Baker Street
products at modern trade outlets, where the
products will be kept in open-dishes near the cash
counter for consumers to try the taste first hand
• Educating on the nutrition component
Health camps and blood donation drives to
communicate the fact that bakery products are an
important source of nutrients viz. energy, protein,
iron, calcium and several vitamins. Commercial bread
and biscuits contain around 7.5% to 7.8% protein
respectively

8. MARKETING AND SALES PROMOTION STRATEGIES
• Position its utility as an on-the-go snack and as an
essential daily food component
Baked snacks are easy to use during travel or at home
because of its availability in variety of pack sizes. They
also offer substantial energy and must be used as a
diet supplement for adults
• Packaging
Products like Khari, Naan-Khatai and Cake rusk to
be sold in see-through PET trays
Similarly a small, transparent plastic window on the
boxes of other products
This will enable consumers to see the product-texture,
color and superior quality
• Pricing
Adopting a Value based-yet-competitive pricing for
products a few price points above bakery products
from unorganized players

9. • In order to emerge as a national brand and compete with a lot of
unorganized players, Baker Street needs to understand the benefits sought
by the TG (defined earlier) and build the brand on the value proposition it
offers: Health, Hygiene and Happiness
• Branding can be done in the simplest form like:
• Unique Baker Street Carry bag which is not only eco friendly but also bearing the
logo which stays with the customer for a long time
• Mobile Vans bearing the logo moving around the city to promote the products and
give free trials for taste and eventually make sales
• The Customer Based Brand Equity Pyramid will help Bakers Street to carry
out the strategies in the coming years
BRANDING STRATEGY

10. BRANDING STRATEGY
Salience
• First choice for professional bakery
products in India
• Consistent branding elements: Logo
and recall associated with the brand
Performance
• Consistency in product line across
branches
• Quality Ingredients
• Fresh baked products
• Also served hot fresh from the ovens
at appropriate mfg hours
Imagery
• Safe, Hygienic products
• Looks after health conscious
and diseased people as well
• Unique product offering
through, ‘Nutribite’
Judgments
• Excellent quality of finished product
• Building credibility is crucial and will
happen over time after gaining loyal
customers
Feelings
• Guilt free purchase as products offered at
competitive price with quality
• Good accompaniment with tea/coffee
thereby satisfying of wants
Resonance
• Loyal customers from future
generations as well
• Positive word of mouth

11. COMMUNICATION STRATEGY
• Creating a professionally managed Facebook Page by
posting mouth-watering pictures of the products and the
recent schemes launched
• Breaking video ads on YouTube and Facebook page
initially
• Graduating to Print ads (shown alongside) in Leading
English and Local Dailies and magazines with information
provided about which retail outlets these products are
available
• Direct Marketing initiatives to the selected B2B customers
based on their recency, frequency and monetary value
• An Interactive website where bulk/party orders can be
ordered online well in advance followed by Cash On
Delivery
• Localised SMS Marketing through Gupshup .com
• Listing Baker-Street on food-review websites like
Zomato.com, burrp.com
• Incentivising retailers to improve shelf space presence

12. ORGANIZATIONAL STRUCTURE
ORGANIZATION STRUCTURE
• The proposed divisional structure is shown in adjoining
diagram
• Each Division will be handled by a Divisional manager
heading the various products and its marketing, sales and
distribution activity
• The product line division would be divided into 3 parts
1)Traditional 2)Low-Sugar and 3)Gluten Free
FRANCHISES FOR STANDALONE BAKER STREET STORES
The franchisees will operate under the broad umbrella of
Sarjena Foods Pvt. Ltd. (SFPL)
The requirements would be:
• 200 sq.ft of floor-space
• 4 to 7 employees per shop
• Marketing and Advertising to be controlled by Sarjena Foods
Pvt. Ltd
• Franchisee would need to invest in shop interiors,
equipments, cooling counters, etc. as per quality and
uniformity requirements specified by SFPL
• Typically, the set-up cost of an outlet would be in the range
of Rs 7 to 10 lakhs
TOP MANAGEMENT
B2B
Division B2C Retail Division
Modern
Retail
Super/H
yper
Market
Malls
Campaig
n
Manage
ment
Export
Division
TOP MANAGEMENT
Franchise Division
Stand Alone Stores (Location
Decision, Controlling and
Management)

13. ESTIMATED MARKETING BUDGET
CAMPAIGN METHOD SAMPLING FRAME COST ESTIMATE
Awareness Campaign
Pamplets, flyers,street
plays
Educational institutes 1,00,000
Facebook, YouTube, PR Interactive media 1,50,000
Trade fairs specific to B2B Rentals, promotion B2B 6,00,000
Sampling at Health camps
15 Blood Donation
camps in 5 cities
Assuming 50 packets of khari
and toast consumed per event
5,00,000
Print ad In 2 major English and
2 local dailies in 3 cities
Depending on TG newspaper
or health magazines
12,50,000
Malls, kiosks, standees
Product and promotion
cost
Large TG 5,00,000
Sales(trade) promotion Retailer incentives 1 pack free over dozen SKU 10,00,000
TOTAL ESTIMATED COST Rs. 41,00,000

14. Thank You