Business analysis on a bakery

1. Business Analysis on
Perera & Sons

2. What comes on your mind ?

3. INTRODUCTION
Founded in 1902 by CHARLES PERERA
The Slogan is “Taste of tradition”.
Head office & the factory is situated in Rajagiriya.
More than 1500 employees.
Established bakeries in Kurunegala,Kotahena & Matara.
114 Years success in this field.

4. Those are:
Values
Delighted customers
Socially responsible
Professional team
0ptions
Custom Cakes and Sweets
Bread and Short eats
Catering and Carvings cakes

5. Fathers of Perera and Sons

6. “The Nation’s undisputed leader in the Quick Service
Restaurant industry delivering great taste value for
money”
Vision …...

8. Target Market
Most of the working people
● School children and teens stopping for a snack.
● Families who like to enjoy a meal out once in a week or something of such
schedule
● Groups of youngsters who like to celebrate their special days (giving
parties for birthdays)
● Dual income families (who find it really hard to cook after a tiresome day)
● People who prefer their meals delivered at their door step. (Home
delivery)
● Vegetarians who prefer pure vegetarian products.

9. Market Segmentation
1. P&S Demographic Segmentation
2. P&S Psychographic Segmentation
3. P&S Behavioral Segmentation
4. P&S Geographic Segmentation

10. 7 P’s
Marketing
Mix

11. Product
❖ Makes lots of variety of products to the market so we can say all of the
peoples are the target market of it.
❖ P&S products are very tasty & Quality also all the body like to eat these
products
❖ They have the ability to give their production according to the order.
❖ P&S divided 3 types of its all products
1. Custom cakes & sweets
2.Bread & short eats
3.Catering cravings cake shop
❖ P&S consider quality, trademark, packing, quantity,
services in products..

12. Products..

14. Price
Operates on competitive pricing because customers switching is very high
and purchase can happen in a minute.
P&S decide price in 3C+C method cost, competitor price, customer
demand & control price.
P&S decide prices using competitive price, group price, single price,
attractive price, mark up pricing, target return pricing, value pricing,
discount price etc.

16. Place
P&S do online marketing also one of the advantages of online marketing they
don't spend on transportation.
Lots of branches in Sri Lanka (example in Colombo- Maradana, Rajagiriya,
Havelock Town, kollupitiya, Narahenpita, Cinnamon Garden, borella,
Bambalapitiya, Wellawatta, Dehiwala, Pannipitiya & Sri jayawardanapura
kotte ect…..)
Stocking places, transporting raw materials productions

17. Display of foods in a p&s outlet

18. Promotion
● Free delivery, sponsor social works.
● Discounts are most important promotion type.
● Sales promotion, advertising, PR (public relationship) & Direct marketing
also P&S’s kinds of promotion.
● P&S gave a lot sponsorship to sport competitions
● We can see P&S’s some post like Grade price winner 2 Air tickets to
Thailand 3day/2 nights..
● P&S sustains SLTA’s Junior Tennis Initiative program

19. G Promotions..

20. People
● P&S Labors are very qualified people than other bakeries this is the most
important strength of the company.
● Managers always thinking how to increase the profit level.
● This bakers released vacancies in the social medias & newspapers also
● There are both full time & part time workers here.
● Friendly Labors.
● They are most polite and well-mannered employees.

21. Process
● They are engaging in a different process.
● They always give a service & P&S guarantee for all the products they
provide.
● They want to give customers full healthy life.

22. Physical Environment
● Royalty
● Waste disposal
● Air conditions
● Green social work
● Parking facilities
● Nice & happy to see inside & outside of it..

24. BARGAINING POWER OF BUYERS
Bargaining power of buyers is relatively high
customers can easily switch with little cost difference.
many small customers acting as a group creates a force.
Customers have adequate knowledge about the market.
Factors that reduce the bargaining power of buyers
They have a direct relationship with customers.
P&S cakes and other bakery items are specially known for their taste.

25. BARGAINING POWER OF SUPPLIERS
Factors that increase the bargaining power of suppliers
Prima is the only flour supplier
Some ingredients can be sold directly
Change of ingredients may change the taste
Factors that reduce the bargaining power of suppliers
They do horizontal integration
Their are many suppliers for milk
Several suppliers for chicken

26. THREAT OF SUBSTITUTES
Factors that increase the threat of substitutes
Customer turnover
Opening of new shops with healthy fast foods
Factors that reduce the threat of substitutes
They follow tactics like staying closely with customer preferences.
P&S maintains a relatively better advertising scheme than the other
bakeries.
They have an advantage of selling branded products.
Value added products like P&S custom cakes take the market to a

27. THREAT OF NEW ENTRANTS
Factors that increase threat of new entrants.
Low startup costs. Since P&S functions as a bakery and also as a
restaurant; opening up a bakery or restaurant is a threat.
customers are easily accessible
low switching costs for customer
Factors that reduce the threat of new entrants
P&S has an enhanced brand image.
Has alliances with lot of other companies therefore captures a large
area of market. (curry bowl, Cravings)

28. RIVALRY AMONG COMPETITORS
Factors that increase rivalry among competitors.
Fiercely competitive environment
The products are perishable and cannot be kept in stock.
Customers can easily switch.
They lack parking facilities in most outlets in which other competitors

29. Cont….
Factors that reduce rivalry among competitors.
Perera and Sons maintains a quality and standard
They have adopted new technologies to automate the production
process.
They have a large centralised kitchen which supplies for all the
branches.
They are rapidly expanding their outlets into other districts.

31. SWOT : Strength
United family business
Well trained & skilled employees
Experience over 110 years
Centralized factory - six kitchens,transport facility
Owned 109 outlets - 2012

32. SWOT : Weaknesses
Lack of parking spaces
Lack of choice in beverages
Lack in hygiene
Poor web site designing

33. SWOT : Opportunities
Untouched markets in north and east
Automating customer service
Introducing online deliveries
Starting reception hall

34. SWOT : Threats
Lack of health conscious foods
New bakeries and food centers opening up almost every
day.
Price hikes of flour-Prima flour.
Spreading of flu due to meat.
Rumors about artificial ingredients

36. PEST : Political
Government restrictions like changing price on bread despite the fact the price
of it’s ingredients.
Imposing taxes on imported goods.
Eg: cheese, dark chocolate, wheat
Political instability
Eg: during the Halal protest in Sri lanka, P&S faced a big challenge
because keels, one of their major suppliers was not halal certified

37. PEST : Economical
Since P&S doesn’t supply essential goods, when the income of public is
generally high, they will experience higher sales
In 2012, P&S had shown 10 to 15% economic annual growth, beating up most
of the existing fast food chains.
If the GDP of country is high, automatically the living standards of people will
rise, so they will purchase more products.

38. PEST : Social
● Religions practised in Sri lanka have various restrictions regarding non-
vegetarian food items.
● Sri Lankans’ main meal of a day is rice. They will not stop by P&S daily.
● facebook review page which caused a great shock among customers
and also affected the business to an extent.
● The current society being very much concerned about health and fitness.

39. PEST: Technological
● P&S maintains a highly automated production process
● P&S also maintains an efficient review page on Facebook.
● P&S owns a website which shows all their products in detail and lets
customers join through twitter, facebook or google+.
● But P&S also faces challenges due to the latest technologies; even a
single dissapointed customer’s displeased experience spreads really fast through
social media and creates a black mark on them.
● They don’t have an online ordering system or home delivery offers yet.

40. Our Ideas for P&S !!!
Introducing packages according to the current festive seasons.
Introducing couple goods.
Developing an android app
Introducing cookies with a message (fortune cookies )
Introducing a P&S Juice bar.
P&S sauce packs
·

41. Our survey results

42. Our survey results cont.

43. Our survey results cont.

44. Conclusion
They produce 75000 products per day including 150 birthday
cakes which attracts 15000 - 20000 customers each day.
All these 100 years they have produced 85 million loaves of
Bread, 60 million kilos of flour, 31 million kilos of butter, 42
million kilos of vegetables, fish and meat, 150 millions of eggs
and 40 million kilos of sugar.

46. Sweet memory