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A PROJECT REPORT ON
“FRANCHISING WITH REFERENCE TO MONGINIS”
SUBMITTED BY
MUSTAFA CHANGI
T.Y.B.M.S.
Roll. No.06
SEAT NO: 13-8806
FOR THE DEGREE OF
BACHELOR OF MANAGEMENT STUDIES (BMS)
UNIVERSITY OF MUMBAI
UNDER THE GUIDANCE OF
PROF. BHARATI MAKHIJANI
KJ SOMAIYA COLLEGE OF SCIENCE AND COMMERCE
(AUTONOMOUS)
MUMBAI - 400077.
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INTRODUCTION
Franchising is the practice of using another firm's successful business model. The word 'franchise'
is of Anglo-French derivation - from franc - meaning free, and is used both as a noun and as a
(transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to
distribute goods that avoids the investments and liability of a chain. The franchisor's success
depends on the success of the franchisees. The franchisee is said to have a greater incentive than a
direct employee because he or she has a direct stake in the business.
Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a
franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the operator
pays the supplier a fee.
Thirty three countries, including the United States, and Australia, have laws that explicitly regulate
franchising, with the majority of all other countries having laws which have a direct or indirect
impact on franchising
A franchise usually lasts for a fixed time period (broken down into shorter periods, which each
require renewal), and serves a specific territory or geographical area surrounding its location. One
franchisee may manage several such locations. Agreements typically last from five to thirty years,
with premature cancellations or terminations of most contracts bearing serious consequences for
franchisees. A franchise is merely a temporary business investment involving renting or leasing an
opportunity, not the purchase of a business for the purpose of ownership. It is classified as a wasting
asset due to the finite term of the license.
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Franchise in India
Franchising in India is at a very nascent stage. However, this industry has clocked
the annual growth rate of 30% with a market size of USD 7.2 billion, the second fastest growing
industry. In the US, 45% of the sales come from franchised business; India is still to reach that
stage. India offers lot of potential for the franchising community & expected to reach US$ 20 billion
by 2013. Franchising is still an emerging trend in India. It is still growing and as such, most of
efforts by Indian franchisors are still inclined to franchise recruitment and sales unlike in the West
where franchise management and ensuring franchisee profitability is the matter of greater concern.
The picture is likely to change with the passing of time and after gaining experience and knowledge
in the same domain. Few of the important sectors that are thriving well in this industry are:
Education Sector: India, with the largest youth population, is an attractive
destination for the potential business opportunities in Education Sector. Its unquenchable thirst for
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quality education with world class training systems and its desire to fill the wide gap between the
number of potentially employable people and corresponding training institutes available has led to a
widespread demand for franchised education. This has given rise to the various education operators
and service providers such as play schools, schools, institutes, development & training institutes,
professional coaching operators etc. According to a survey, the growth of the education sector in the
country is pegged at 35% amongst new concepts and it will continue to grow in the years to come.
Keeping in mind the current market trends that need to be capitalized in India, the education sector
further opens the doors for many entrepreneurs. Looking at the risk and profitable returns variation
from business to business, franchising ensures a safe method to own a brand especially in the
Education sector which is least effected territory even in the time of recession. Private institutions
are typically perceived as hallmarks of quality education and given the demand, Indian education
entrepreneur are ready with massive expansion plans, which will provide thrust for the education
sector to grow multifold.
F & B: With the increased number of people preferring to eat out and spend
more on food items, this sector has dominated the franchising industry like no other business sector.
The market is flooded with food franchise opportunities of different categories suiting to different
level of budgets. There are many different options for food and beverage franchising, such as fast
food, health food, pizza, sandwich shops, ice cream parlor, smoothie, juice bars, cookie shop, candy
outlet, and bakery as well as restaurant franchises. The Food & Beverage sector is expected to touch
45% of growth level in the near future. This may not be the least effected territory but is
undoubtedly one of the safest ones to go in for.
Clothing & lifestyle: Changes in economy and lifestyle all over the globe have
led to an increase is sales of clothing, shoes, jewelry and accessories which makes this a great
industry to try to get into, particularly on a franchise level. People buy clothing, shoes and
accessories quite often based on a brand name. When you buy into a franchise, you are getting that
brand name with it so you are already a step ahead. Thus, this sector offers lucrative franchising
opportunities with people willing to spend adequate amount of money on clothes and accessories.
As consumers want the best clothes for themselves they are ready to make investments too. Thus,
clothing industry will never be out of business if one gets to offer quality products as per the
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demand of the market. Industry statistics peg the Indian apparel market currently at Rs 1389 billion,
growing at a Compound Annual Growth Rate (CAGR) of 12 per cent.
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Growth of small business franchise opportunities in India
India has proved out to be one of the largest industrial hubs with its growing perceptive image. In
fact it has proved out to be a shockproof economy despite of the highly unstable state of the
worldwide economy. Its economy is expanding and opening new doors for various opportunities.
There are numerous types of investment opportunities available for every kind of investor. Even
for the small scale investors there are various small business franchise opportunities available.
The quote ‘Be Your Own Boss’ is being interpreted in true sense. In recent years many people
have left their white collar job for starting their own business as Indian market is flooded with an
array of small business franchise opportunities.
Today 95 per cent
country’s industrial units come under Micro, Small and Medium Enterprises (MSME). This
sector has around 128.44 units (provisional 2006-07), registering a growth of 4.1 per cent
annually are producing thousands of products. The value of production at current prices is
estimated to have increased by 17.9 per cent to Rs. 587,196 crores and the employment is
estimated to have increased to 312.52 lakh persons.
Today there is a void of adequate business resources for small business much more so when they
contribute 35 per cent to national income while corporate contributes 15 per cent to national
income, there has been no dedicated matter created to focus on the needs of small business.
Seeing the scope for the growth of small business opportunities, improving the sales and
marketing capabilities is an important factor. It decides the growth of small business. There are
many cost effective small business growth strategies and tactics that you must understand
properly before implementing them. Thereof, small business should not just maneuver after
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growth opportunities. As driving in speed towards growth opportunities entails a risk i.e. speed is
higher than the anticipated gain of reaching the peak before others. Therefore, it becomes even
more important to predetermine his path and speed in the business plan.
Small business franchising opportunities are thus expanding with each passing day. Looking at
the facts and figures regarding the growth of small businesses in franchising, it is to be said that
such franchising opportunities are not just restricted to food and automotive sector. In fact, each
and every sector too is on expanding mode.
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Franchise marketing plan
As more and more entrepreneurs adopt franchising as a business model, franchisors should draw
a franchise marketing plan laying down specific guidelines to achieve one or more marketing
objectives.
When a company decides to franchise its business, the questions that normally arise are: what
should be its marketing plan, how to get the right franchisee, and what yardsticks be adopted to
recruit a new franchisee. In fact experts believe that the marketing plan is the most important part
of a franchise business plan.
The marketing plan is a written document that lays down the plan of action and specific
guidelines to achieve one or more marketing objectives. The important features
of a marketing plan are:
 It is a formal plan and hence has to be in a written form.
 Marketing plan is a part of the overall business plan.
 Solid marketing strategy is the foundation of a well written marketing plan.
 Marketing plan can be for a product or service, or a brand or a product line.
 It contains a list of actions.
 The plan is for 1 to 5 years' duration
 And finally a marketing plan should be clear, quantified, focused, realistic and agreed by all the
parties concerned.
A franchise marketing plan means to conduct a search for an astute franchise, and enter into a
franchise agreement. It's a plan focused on product, audience, awareness and delivery. It enables
you to present on paper a well-thought out model - how you plan to enter the market and what
methodology you would adopt to gain recognition and preference. It also includes why you
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think, it is the good time to start the franchise business. All above devices constitute your
franchise marketing plan.
Subsequently, we should also know the elements of a franchise marketing plan. I would prefer to
elucidate this by using elements of Kotler's Classical Ps of marketing. All the 8 P's are very
much relevant in the Indian context. The 8 Ps can sometimes divert attention from the customer,
but the framework they offer can be very useful in building the action plan. The 8Ps are:
 Product: A franchisor needs to discern which of his products can be franchised. Is there a need
for your product/services? One should take a realistic view of the opportunity.
 Place and Distribution: A franchisor should be able to select place/places where he could open
outlets and apply distribution strategy. He should be able to decide whether to go for an
individual franchise or for a master franchise at specific places.
 Price: Pricing is very important. The franchisor should aptly decide whether to wear a premium
tag or play price game.
 Promotion and advertising: This can be divided in two categories - above the line and below the
line. We should devise ways to reach out to the target group effectively, and use appropriate
forms of media, like radio, TV, Internet, brochures etc.
 People and organisational structure: People represent the business. The organisational structure
should be designed based on the nature of business. It should essentially constitute a support
structure for the franchisee business.
 Physical environment: In many businesses it is called 'look and feel of the outlet. What it
basically means is the ambience created to service the customer. The same would largely depend
on the nature of product or services.
 Process: This also means the best practices created to make the business scalable and profitable.
The processes should be created to sell and service the customers and the franchise.
 Packaging: The last 'P' applies to franchisors, who are franchising concepts where physical
products are involved. Here, the decision to package the products becomes important.
The 8 Ps constitute a useful framework to decide how the company resources will be
manipulated to achieve the objectives.
Although the detailed plans will cover each of the 8 Ps, the focus will vary, depending upon your
organisation and its specific strategies. A franchise organisation can be categorised into three
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categories, viz., prospective franchisors, emerging franchisors and mature franchisors. We
discuss below the marketing plans for each of these categories:-
Franchise marketing plan for prospective franchisor
A typical prospective franchisor is a small and medium business, foraying into franchising. He
has the profitable, scaleable and duplicable business model which he wants to expand through
franchising. As this franchisor is a first timer, he should implement all the 8 Ps of marketing
plan, with special focuss on 3 Ps, namely:
 Promotion and Advertising: As usually, at this stage, an SME company does not have a big
brand name, and finances are tight. It is always a catch-22 situation between how much to spend,
what should be the returns on marketing spend and which medium to use. In the internet age it is
recommended that companies should use internet intelligently. Other efficient media for a
prospective franchisor is direct marketing tools like exhibitions.
 Product: A franchisor's decision about launching a product is very significant. All the products
may not be franchisable, even if a product is franchisable, it needs to be modified to suit various
regions and countries, e.g., a vada pav franchise may run in Mumbai but it may not run in Bihar.
Similarly an idli franchise may flop in south.
 Price: The decision about pricing is crucial for a first time franchise. Whether to wear premium
tag or allow discount should be decided after an intensive market study of the product.
Franchise marketing plan for emerging franchisor
An emerging franchisor is one who has a good franchise system now, and is desirous to go
national from being a regional player. This franchisor is also looking forward to fast track growth
and is desirous of a sound franchise recruitment plan. For such a franchisor there are four focus
areas:
 Place and Distribution: The franchisor should carefully select the areas for expansion. For
example, if a training company wants to expand its presence from north India, it should decide
which next state it should step in. It would make more sense to go to west - adjoining north,
rather than heading to extreme south. It should also decide on expansion model, whether master
franchise, multiple outlets or single outlet franchise.
 Price: As the entry is being made into a new region, a survey needs to be done of competition,
price acceptance and product preference in the region. One may have to go for multiple price
points for the same product in different regions.
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 People: The entry into the new region demands study of people's tastes, preferences and
customs. Accordingly, the franchisor may have to bring in appropriate changes in his
products/services to make it acceptable to the local people, as also bring in changes in the
organisational structure. I have observed that south based stock market companies have not been
able to penetrate into north India.
 Process: As now lot of franchise recruitment and support will happen from a distance. If the
processes of recruitment, on-going support and after sales are not set and implemented, it can
lead to failures or franchise disputes. A case in point was coaching classes franchise 10 years
back they were all regional based and were not able to go national.
Franchise marketing plan for mature franchisor
This franchisor is a leading name in the industry; has 50, 100 or 1,000 franchisees in the country;
is present across the country, and is desirous of going international. It now needs to prepare itself
for international market. Though it is recommended that all the 8 Ps be observed, the following 4
Ps demand extra consideration.
 Product: There is some times a lot of difference in the product for Indian market and
international market. In fact the product may have to be adopted for each country separately.
When Indian IT training companies were looking at expanding internationally 12 years back,
they had to translate books in local language like Chinese, Spanish etc.
 Place and Distribution: The decision as to which countries and territories to enter, is a crucial
decision again. Lot of factors like competitive edge, support system, local laws of land, etc, have
to be considered. A miss in this decision can lead to failures and it can be a costly affair too.
 Promotion, branding and advertising: As the countries of entry are new a decision on all the
three, along with cost consideration has to be taken. In many countries brand name has to be
reconsidered or registered locally before using it.
 People: This being the most important area of consideration, support structure, organisational
structure, placement and location of people has to be decided. Also, it should be clear whether
we will export people to new countries or we will employ locals for managing the business.
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Franchising: a kick start business concept
Franchising as a profitable business concept is being employed by more number of
businesses than ever before. Today franchising can be the best available option for the
entrepreneurs aspiring to attain high returns in short span of time. Find out more
Today, whether you are aspiring to expand an existing business or start afresh, or willing to
introduce a new concept, franchising is just the right venture to opt for. The idea of buying the
franchise offers multiple benefits. With minimum risk, less investment, constant support system,
and a popular brand to work with, franchising has become one of the popular business expansion
systems in the world today. This article tries to shed some light on the various reasons for
considering
franchising to start a business.
With its popular brand and established marketplace, a franchisee offers the entrepreneur
significant advantages over any independent business undertaking. Qualification is not a pre
requisite to own a franchise. For example, you need not to be a graduate in business
administration to succeed in a franchise business, as because the franchisor is there to assist you
to establish your franchise business. Moreover, as a franchisee, you need not care about the
sourcing of the products or developing innovative strategies from time to time. Further, taking up
the franchises rather than starting a business from scratch comes with minimum risk factor
maximum returns. Thus, franchising is considered as a profitable concept that continuously
plows through challenges and persistently produces wealth and success.
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In order to be more precise on the various reasons regarding why an aspirant should opt for
franchising, here is a comparative analysis of a franchising business and an independent start up.
These include:
 An idea: ‘An idea can change your life’. Starting a business requires an idea about the kind of
business one would like to do. In other words, an aspirant looking to start his own business must
possess great business acumen and needs to do rigorous market research. Starting from his
business lay out, selection of location, investment plans, recruiting and training staffs, marketing
and promotional plans, an individual has to take care of every aspects of business establishment.
On the other hand, if you opt for franchising, you need not to care about all these things. All you
need to do is to choose the right opportunity that suits your pocket and has immense growth
potentials.
 Finance: Establishing an independent business entity requires huge investment as you need to
do everything on your own. No doubt, you have to spend money on various other things
(mentioned above) also. But then you require less start-up capital as the franchisor has
eliminated unnecessary costs in the business system. Moreover, access to economies of scale and
making use of the shared resources is another advantage.
 Location and layout: Being an independent aspirant, you have to select the location and the
layout of the store on your own. In addition, this could be a difficult task for those who do not
have prior experience in running the business. However, as a franchisee you have the franchisor
to help you select the right location as selecting the best layout for your franchise outlet holds
great importance in the success of the business.
 Innovative products and their sourcing: As already discussed, that taking up a franchise
business eases off the burden of creating innovative products and sourcing the material from the
franchisee’s shoulders. While for an independent entrepreneur, this could be a tough exercise.
For instance, in a fast foods business, the owner is involved in making and selling a tangible
product and at the same time, he needs to safeguard the uniqueness of the recipe. Although, the
franchisee need not worry about these things at all.
 Staff recruitment and training: For any independent business, recruitment and the training the
staff require lot of expertise and any small mistake can lead to dire consequences. Whilst the
franchisee is often helped by the franchisor in recruiting and training the staff.
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 Branding and promoting the business: Unlike independent business, taking up a franchise gives
you the ability to leverage off an already established brand name. Whereas, for an independent
business owner, getting accepted in a competitive market can be expensive, time consuming and
very difficult. The brand equity you get after buying the franchise eradicates this intricacy.
Today, popular brand and superior quality is the paramount elements customers look for while
spending their hard earned money. Franchising is a more convenient option to get started with a
business. In short, buying a franchise over starting an independent business is an intelligent move
to gain good benefits in this fierce competition
Structuring a flawless franchise system
If you are considering the franchise route to expand the reach of your brand presence beyond
certain geographical area, then this article is a must read for you.
Franchising is often considered as an excellent growth strategy for a business but it does not suit
everyone, as it requires great amount of foresight, determination, and hard work. Besides this, a
prospective franchisor is also suggested to do extensive research to ensure his clarity regarding
financial inputs, commitment, and systems that are required to build a strong and sustainable
franchise.
Here are enlisted few points that must be taken into account while developing a
franchise system:
Differentiate yourself in the market: In the brand cluttered market, franchising is one of the
profitable ventures, if you need to make your brand stand out in the market. Apart from the brand
name, you also have to differentiate your franchise system by clearly establishing the reasons
that can convince an aspirant to buy your franchise. A huge amount of hard work is required to
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establish a strong foundation for your franchise business that can attract like minded
entrepreneurs to raise its potentials for growth.
Groundwork for franchising: A great deal of underpinning is required before selling your
franchise. For this, you need to invest a lot of time and money in building a strong business
model that can be replicated successfully anywhere. Being a prospective franchisor, you need to
do a lot of paper work, develop documents (franchise agreement, operating manuals and so on),
marketing collaterals to support and sell the franchise, facilitating training, and support for new
franchisees. Once, you are done with these pre requisites, you need to advertise the requirement
of franchisees to expand your business. For this promotional activity, you can use various media
such as:
 Print media: It is the oldest and most authentic mode of promoting a business and seeking
franchise partners. However, this medium takes longer time to reach out to the target readers, but
still it is one of the reliable mediums to communicate to the readers.
 Electronic media: This is the fastest mode of communication and now has enough options under
the tag ‘electronic media’ such as TVand radio.
 Internet and social networking: The best and cheapest way to seek franchisees and promoting
a brand name is to make use of the social networking websites.
Create a win-win relationship: As a new franchisor, your main focus should always be on
creating a win-win situation rather than minting money in the name of franchise fee and royalty.
You have to keep yourself in the place of a franchisee and then design the franchise system for
your business. You have to reasonably structure your franchise fee and royalty thereby giving
them enough room to yield a good return over investment. Being a franchisor, you should always
keep in mind that franchisees are the route to revenue for your business.
Carefully select your franchisees: Never select your franchisees solely on the basis of their
ability to invest money. Always have an eagle’s eye while selecting your franchisees as everyone
cannot fit with your brand and business culture. You must carefully analyse the interest of the
franchisee and his business acumen that can drive the business towards new heights. Being a
franchisor, you must design some eligibility criteria and stick to it while selecting your
franchisees as the fate of your franchise expansion depends directly on the success of your
franchisees.
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Building a strong support and training system: During the initial phase of the franchise
business establishment, the franchisees need some hand holding. Being a franchisor, it is your
duty to ensure efficient training and strong support system for your franchisees. However, the
success of the franchisees depends on the ongoing support system.
These are few tips that a prospective franchisor must keep in mind before taking up the
franchisor’s seat. Being new in the business, you are surely going to face some problems.
However, building a strong foundation is the way towards developing a sustainable franchise
business.
Building a winning franchise
Till date, inestimable content has been written on franchising and its benefits. No doubt, people
have acknowledged franchising as a successful business model, but still there are numerous big
business brands that have kept them detached from franchising. Let us investigate into it.
Franchising, as we all know has proved to be a successful business model for expansion and
growth. It is also a proven method for aspiring entrepreneurs to fulfill their long cherished dream
of becoming a business owner. Despite the fact, there are various well known brands that are still
not in favour of taking up the franchise route, and prefer to suffer losses than considering
franchising.
Reasons for not taking franchise route
Let us find out the
various justifications these brands are giving for not opting franchising:
Franchising not apt for large format stores: Brands running large format stores believe there
is hardly any large-format retail model that runs on a franchisee network across the globe.
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Expansions on larger scale require fast decision-making, stable adjustment to changing
requirements.
Franchising weakens the business model: Another reason the non-franchise companies give
for not preferring franchising is that following a franchise route for expansion will dilute the
business strategy, developed over the years.
Huge investments: These non-franchise brand owners also consider franchise model expensive.
It requires lot of investments in terms of technologies, mechanism, and strategies. The training
involved with the usage of these, requires huge investments, which is a costly affair from a
franchising perspective.
Time constraints: Franchising is a time consuming business model and needs lot of patience.
These days when businesses are growing at a tremendous pace, the profit outputs generated on
franchise investments takes lot of time which is not acceptable. All these factors are best
addressed through a business model based on company-owned stores then franchising.
Franchising preferred for small formats: All big companies believe that franchising is an
excellent business mode for small format stores, as it is easy to manage and organise them via
franchise route, However in case of large format stores company owned and company operated
model are suitable.
Despite the above mentioned reasons for not taking up franchise route for expansion by big
brands, there are companies that are attributing their success to franchising. These companies
believe that there are other best business models than franchising if a strategy is planned in
advance before taking up the franchise route. However, the most preferred way forward would
be to initially test the company owned model in order to understand the basics of the business
model itself before considering franchising. Besides, if these steps are followed before taking up
the franchise route, then success will follow soon.
Plan your franchise right for success
Franchising is a rewarding business model, provided you plan your franchise strategy right and
after through research.
Market research: Try to learn what your competitors have done that worked or that did not
work, either by personally visiting different companies as a customer, or by watching their profit
graphs during various promotions or sales operation.
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Create a business model: It is always advisable to develop a business strategy which makes you
stand out in the industry. Use the data collected during market research to do this. A franchise is
successful for the reason that though it is similar to other businesses, but it offers multiple
benefits, which sets it apart from others.
Funding advantage: Unlike funding an independent business, franchise can be easily financed
through a bank loan, or grants from the Government or from individuals/entrepreneurs that
support your industry because of its brand identity.
Plan the business right: The business plan should mention everything that separates you from
competition, providing estimate of revenue potential and how the franchise is expected to
operate. Send the copies of the plan to the funding sources.
Disclosure Document: Prepare a standard disclosure document (required by the Federal Trade
Commission) and register (if necessary) with the state.
Documentation: Prepare documents for all the systems required to run the franchise and
develop a training system complete with a written manual.
Promotional strategy: Develop a strong promotional strategy to market and develop the brand.
Search for efficient franchise partners: The franchisees are the life line of any franchise
business. So the franchisor needs to pay special attention while looking for franchisees.
After reading the above pointers, I am sure that all those big names of the business world who
are not favouring franchising will definitely reconsider their business strategies. You never
know, tomorrow we may see some popular business houses foraying in to the franchising
world.
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INTRODUCTION
Monginis traces its roots back to its humble beginning, to a time when it was a favorite with the
Europeans in Mumbai. Little excuse was needed for the Englishman to pick up a Monginis cake
whenever there was an occasion in his family. A birthday, an anniversary, a wedding or even tea-
time would not be complete without Monginis.
The shop, located in Mumbai's Fort area, was a favourite with Europeans. Run as it was by two
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Italian brothers, Monginis was a must at every celebration. Even then Monginis cakes, pastries
and savouries were baked to perfection and were in great demand.
In the 1960s, Monginis was bought over by the Khorakiwala family and after that history was
made. By 1971, the idea of having a nationwide franchise network and reaching out to customers
in their neighborhoods was born.
Today: The 42,000-sq-ft HACCP certified headquarters of Monginis is the place from where all
the yummy stuff emerges from. It is the nationwide headquarters, to which all manufacturing and
cake shop franchisees report. It is the fountainhead of ideas that are goodenoughtoeat.
The Monginis headquarters is also a model bakery with state-of-the-art manufacturing facilities
designed to produce a wide range of cakes, gateaux and pastries, tongue-tickling savouries and a
variety of any-time snacks. Here quality assurance steps at each and every stage of the
manufacturing process ensure world-class soft n fresh cakes, snacks and baker's ware.
Monginis headquarters has a well-equipped lab and has gained the HAACP certification since
past 2 years for maintaining and assuring best of the Hygiene and quality standardsof our
products and for our customers.
Recently, Monginis commissioned a factory at Bhiwandi near Mumbai admeasuring 6 lakhssq.ft.
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Ideas and Innovations
Ideas and innovations make it possible for the high-level excitement to be sustainedinthe brand.
• Pioneers of a fantastic Cross delivery System which connects 11 manufacturing Franchisees
through an intricate network to simplify the means so that your beloveds can get a cake delivered
in any part of India ordered from anywhere in the world.
• A helpline 022-40786702 attending to customers to assist to make any Celebration possible
even at a short notice.
• An Interactive website which allows online bookings of our products from all across the world
to be delivered in parts of India, where we have a presence.
• Pioneers in the introducing corporate cakes with Company Structures, logos and Products too.
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Birthday Cake story
History of Birthday Cakes
Cakes date back to ancient times; however, they were very different then. According to food
historians, ancient Egyptians were the first to show evidence of advanced baking skills. The
ancient Greeks made round or moon-shaped honey cakes or bread and offered it at the temple of
Artemis:The Moon Goddess.
A later tradition of birthday cakes started in Germany in the middle ages. Sweetened bread
dough made in the shape of baby Jesus, in swaddling cloth, was used to commemorate his
birthday. This special birthday cake later re-emerged in Germany during children's birthday
celebrations a.k.a. Kinder Fest. Germans also baked another special kind of layered cake called
Geburtstagorten. This was sweeter than the ubiquitous coarse, bread-like cake.
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Progress, a SweetProgress
The first icing was made from a boiled composition of the finest available sugar, egg whites and
various flavors. It was then poured on the cake, which was put back into the oven for a while.
The cake was soon crowned with a hard, glossy, ice-like covering. Molded cakes and fancy icing
was hugely popular in Victorian times. The art of baking cakes progressed through the ages, and
it was not until the middle of the 19th century that the modern cakes as we now know it was
born. The taste and appearance was enhanced with extra-refined white flour and baking powder
(insteadof yeast).

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About Monginis: The Story of the Rising Cake
Monginisis a major Indian pastry, cake and general bakery chain, based in 11
Indian cities like Mumbai, Kolkata, Hyderabad and Cairo, the Capital of Egypt. The Monginis
brand name originated over 100 years ago, when 2 Italian brothers set up a catering firm in south
Mumbai.
Monginis catering service including cakes, pastries and savories were in great demand. To the
last detail, complete with a wedding cake it was Monginis that breathed life and fun into the
European wedding in Mumbai. After it was bought over by the Khorakiwala‘s in 1960‘s, the
brand has remarkably grown to become thenational leader in cakes.
In 1971, for the first time in India, a plan of having an exclusive franchise cake shop was
conceptualized. Mr. H.T. Khorakiwala, the founder president of national association if bakery
industry, who spear headed the operations, realized that to grow it was necessary to focus on
production standards and distribution. The retail management was best left to the shop owners
who were in a better position to offer personalized services to the customer.
The success of the first franchise cake shop sparked off a getting up of a chain of franchise cake
shops all across India, which is nearing the 500 mark. Monginis has emerged as one of the
largest food store in India. At the sprawling 150,000 sq. feet combined manufacturing facilities
in Mumbai and its twin city Thane. The organization today owns the state of art manufacturing
facilities to produce a whole range of cakes and bakery products both Owen fresh and supplied
daily to all cakeshops.
25
COMPANY PROFILE:
BasicInformation
CompanyName: M/s.MonginisFoodsPvt. Ltd.
BusinessType: Manufacturer
Product/Service Cakes,
Gateaux,Breads,Burgers,Savouries
(We Buy):
Cookies
Address: Shop No. 9, Pritam Estate
Opposite Babubhai Jagjivandas
Dadar East, Mumbai-400014
Brands: Monginis,Pita Wich
CompanyWebsite URL: http://www.monginis.net
Ownership & Capital
Year Established: 1971
OwnershipType: Partnership
Legal BusinessOwner
26
FACTORY INFORMATION
FactorySize: 30,000-50,000square meters
FactoryLocation: Off. LinkRoad,
Opp.CityMall,Andheri(West),
Mumbai- 400053
QA/QC: InHouse
No.of ProductionLines: 8
No.of R&DStaff: 5- 10People
No.of QC Staff: 5- 10People
27
OTHER DETAILS
 Core Vision
 Values
 Quality
 Privacy Policy
 Terms and Conditions
28
Core Vision
Every organization operates itself with a vision in their mind so that the activities of each
and every person involved with the organization leads to same direction. The core vision of
Monginis is as follows:
1. To help people celebrate their happiness and make those moments memorable in their lives.
2.All Monginis products and services shall be offered with the same love, care and
affection as if; they were meant for the most beloved person (or a family member).Creating
value-for-money products without compromising on quality in terms of taste or appearance.
3.Good intentions in dealing with one another amongst the stakeholders (shareholders, suppliers,
employees, franchisees, dealers and consumers) breed (or yield) good products and services.
4. Our vision is to become a national cake company with one thousand Monginis cake shops
through forty manufacturing franchisee units spread over the metrocities of India.
29
Values
Monginis follows a simple "doughnut principle" whereby the customer remains that valued
creamy centre around whose satisfaction all activity revolves.
1. We shall make products, keeping in mind the feelings of the end consumer in mind, be it son,
daughter, father, mother and make the products with the same love and affection as it were made
for a family member. We strongly believe thatgood intentions breed good products.
2. Value for money: We shall offer consistently value for money products.
3. Fairness: We shall be fair in all dealings with the stake holders (shareholders, suppliers,
employees, franchisees, dealers, consumers).
4. Monginis shall constantly strive to build strong relationships based on
understanding each other and mutual cooperation;
5. We shall value and respect the contribution of all Monginites from workers to senior level
managers, suppliers, service providers, franchisees and dealers.
6. Excellence: We shall constantly innovate and maintain excellence in our day-to- day work and
in the quality of the goods and services we provide.
30
Privacy Policy
Monginis Foods Pvt. Ltd. does not sell, trade, or rent our personal information.
1. When Monginis Foods Pvt. Ltd. uses other agents, contractors, corporations or business
partners to perform services on its behalf or as part of a joint promotion, Monginis Foods Pvt.
Ltd. will ensure that this entity protects the user's personal information in a manner,
which is consistent with the aforementioned statement.
2. Monginis Foods Pvt. Ltd. may provide aggregate statistics about their customers, sales,
traffic patterns and elated site information to reputableagents.
3. Contractors, corporations or business partners, but these statistics willinclude no personally
identifying information.
4. An industry standard for encryption over the Internet, to protect the Data. When we type in
sensitive information such as credit card details, it will be automatically converted into codes
before being securely dispatched over theInternet.
5. If we make an online booking with Monginis Foods Pvt. Ltd., they will record our personal
details. Our data may be used for the following purposes: accounting, billingandaudit,
credit orotherpaymentcard verification, security, administrative and legal purposes,
systems testing,maintenance and development, customer relations and to help them in
anyfuturedealingswithus, for example by identifying our requirements andpreferences.
31
QUALITY
ISO 22000: 2005 Food safety management system certified organization.
Monginis Foods Pvt. Ltd is now an ISO 22000: 2005 food safety management system
certified organization. We were certified by SAI GLOBAL, and the registration covers
production and supply of cakes, pastries, cookies, chocolates and savories. Monginis Foods
Pvt. Ltd has a well devised food safety policy which penetrates to the root level and ensures
food safety and security to the customers.
Monginis was awarded HACCP certification in 2005.
32
Terms and Conditions
1. Product price mentioned is inclusive of delivery charges, local taxes and
transaction fees. Hence, no additional charges are applicable to the product.
2. Orders are accepted from around the world, for deliveries only in select cities of India.
3. Lead time for deliveries is 3 working days.
4. All deliveries will be executed between 12 noon - 6 pm.
5. Unavailability of the recipient, for any reason will be treated as cake delivered.
6. There will not be any refund of money in case of incorrect recipient's shipping address /
telephone number.
7. On account of unforeseen circumstances like floods / natural calamity / etc. The delivery
service may be withdrawn.
8. We deliver cakes only in our defined cities shown in the store locator.
9. All cakes are delivered in boxes, along with a gift card for personalized messages.
33
FESTIVE OCCASION AND IMPORTANT DAYS
 Birthdays and Anniversaries
 Festivals
 Friendship Day
Monginis has something to offer for every important day in a person‘s life. People trust
Monginis whenever they think of gifting cakes to their near and dear ones for their birthdays,
anniversaries, house warming ceremony or for any other occasion like Rakshabandhan,
Bhaidooj, Christmas, Sankranti, Easter, Holi, Fathers
Day, Mother’s Day, Friendship Day, Teachers Day, Children‘s Day, Valentine‘s Day, New Year
Day, etc. You just name the occasion and Monginis will give you the signal “Go Ahead
Celebrate”.
Every state in India is famous for its festivals it celebrates.
Ahmedabad is also called Karnavati and Amdavad. Ahmedabad is famous for its diversified
culture and various festivals such as Uttrayan (Festival of Kites), Navaratri (Festival of
RasGarba), and Rathyatra (Festival of Lord Jagannath). Looking at the speed at which the city
was progressing, Monginis felt a need to be present there and began its operations in the year
2003. Today Monginis has 17 exclusive cake shops in Ahmedabad. In the city of Ahmedabad
cake shop of Monginis means a treasure of cakes made with exotic flavours, variety of shapeand
in different sizes.
Fifteen million people live in Mumbai - industrialists, film-stars, artists, workers, teachers and
clerks - all living cheek-by-jowl in soaring skyscrapers and sprawling slums. They come from
diverse ethnic backgrounds and speak over a dozen tongues, adding colour, flavour and
texture to the Great Mumbai Melting Pot. Mumbai a commercial capital of India is also home
to Monginis. Monginis has 180 exclusive cake shops in Mumbai alone spread across the length
and breadth and covering virtually every part of the city.
Birthdays and Anniversaries
34
These important days are celebrated by each and every one with great excitement and
enthusiasm. People never stop celebrating, especially birthdays. It‘s once in a year occasion,
which no one wants to skip. The joy of sharing happiness issimply irresistible. Monginis have
come up with the widest variety of birthday cakes.
Wedding is one of the most important days of one's life and cakes have become an integral part
of this joyous celebration. Special wedding cakes, like the ones in the wedding cake special
range by Monginis, make the occasion even more special. Monginis, a leader in Cakes offers
wedding cakes like bashful blush; Indian wedding theme; Lilac cascade and ecstasy in ivory.
These are the most popular wedding cake variants which can be customized as per the
customer‘s requirement.
35
Festivals
Festivals like Christmas, Easter, and RakshaBandhan are incomplete without sweetness. To
make such festivals more delightful and add sweetness to such days Monginis is always the right
choice. Cakes in various shapes and designs forexample Santa Claus cake, X‘mas Tree cake for
Christmas; Easter egg shape forEaster celebrations, Rakhi shaped cake showing a feeling of
warmth between a brother-sister relationship.
Friendship Day
Human beings flock together and have always valued the importance of friends in their lives. To
celebrate this noble feeling it was deemed fit to have a day dedicated to friends and friendship.
This beautiful idea of celebrating Friendship Day was joyfully accepted by Monginis.
This Friendship Day, share the sweetness of your friendship with the latest range of Cakes
especially designed for this memorable occasion. Monginis has introduced Rose for a Friend
Cake‘. Throughout the year, you & your friends haveshared a lot of special moments; you‘ve
laughed together, cried together, had bothgood times & bad; so go ahead & celebrate this day.
36
Marketing Mix of Monginis
1. Product:
Monginis has wide range of products; their main product being fresh cakes for all occasions.
Monginis also has chocolates, pastry and cake and chocolates combo in their product line. It also
sells packaged cakes which are available at their stores and also at other retail stores. Monginis
also has different kind of breads and a variety of snacks for dine-in customers in veg and non-
veg variety. It has also started home deliveries and online bookingand gifting system.
PRODUCTS
Personalised Birthday Cakes/Pastries and more:
37
Every area has a new hangout, a cake shop! The cake shops differ in variety, quality, price and
more. The oldest known brand of cakes is Monginis. Thisis brand which owns the maximum
number of outlets in the city. Some of the flavours of Monginis include: Black Forest, Dutch
truffle, Butterscotch and Pineapple are some of the popular choices. The range starts from
Rs.150 for half kilo cakes and so on. There are a variety of cakes one could choose from for their
kid’s special day. To mention a few cakes, of fancy shapes like alphabets, numerals and
cartoons.
The other famous cake shops are Ribbons &Ballons,Merwans, Birdys, Cakes & More, Croissants
and more. The cakes can range from a minimum of Rs.150/ and go up till an approximate of
Rs.1500 too. A kilo of blueberrycheesecake is a total hit the season. For kids, cartoon characters
like Mr.Bean, Doremon, Ben10 etc are charged somewhere in the same figures. They have the
most delicious array of cream cakes, fresh fruit cakes and a variety of fancy cartoon-shaped
cakes. At Rs.400 a kilo for the fancy cakes, it definitely is value for money. The new fantasies of
personalised cakes are 'Photo Cakes'. An imprint of the image of your loved ones or your child
on the cake is a hit amongst children. These could range of an approximate Rs.500 a kilo. Check
out the list of cake shops below to know more and block it for your love, your child!
38
Party Preparations/Kid's Birthday Party Requirements/Event Organisers:
So for the perfect look now! Most of the gift shops or even kirana stores sell the stack of
streamers, balloons etc. It is a big NO-NO to buy from them. Reason being there are various
stores now who would sell you cost qualitative products. It would be wiser to choose from thier
lot and plan a wholesome birthday for your little one. Party Hunterzz, a store in Mumbai is
famous for the entire elegant as well as wicked shopping decor you would need for a birthday.
For a teenager's neon theme party you would find ample variety of neon glasses, light tiaras,
badges with beam lights etc. The Party Shop at Crawford Market is a good deal to buy the stuff
too. It is like a one stop shop for your party needs.
The place a variety of balloons, streamers, face masks , party caps and birthday banners,
disposable plates and glasses, birthday candles and paper napkins. Party decor is one the most
required item in a birthday, unless people like us suggest you to go for personlised theme event
birthday organisers. Mentioned below are some of the best ones who organise birthdays from the
range of Rs.3000 to a whooping of Rs. 2.5 lakhs! So bacha parties look out for them and suggest
your mummas and papas to hire them. For parents, get rid of the event planning tension and be at
ease at your little naughty one's birthday!
39
Return Gifts/Memorable:
Some of the most replicated gifts like tiffin boxes, piggy banks, stationery kits, puzzles, pencil
pouches and much more! There are so many other articles like play art, shopping
vouchers,funskool gifts, monopoly, chart area and other board games which With the mind
boggling range available in the market, it is indeed very difficult to choose the perfect return gift
for your little one’s special guests. The best thing is to buy in bulk! The Party Shop in Crawford
Market, offers many return gift options like fancy pencil sets (Rs.10-20), crayons / paint sets
(Rs.35-80), water bottles (Rs.90 onwards) and wrist watches (Rs.95 onwards) and so on.
Premsons Bazaar also offers a variety at competitive rates. Pick up fancy straws, funny glasses,
puzzles, pouches, slings bags between price ranges of Rs. 35-200.
For teenagers, personalised mugs, photo-frames, T-shirts etc are an added delight for the youth
gifting. Though, these are well recieved here than given by teenagers as return gifts. It would be
too kiddish right chicas? So either way considers the options for gifting. These gifts range
between Rs.100 and Rs.200.
40
Monginis Products At A Glance
Monginis sells itself as "The Cake Shop ", producing ready-made as well as order-made cakes
for catering and carry-out. Individual cake slices are also kept in Monginis stores for dine-in
customers. Be it chocolate cakes or cakes in general, Monginis has mastered the art of making
cakes over a period of time. A specialist in making cakes begins right from selecting right quality
ingredients in precise quantities, blending them together to the best of knowledge and baking to
the level of perfection. The soft and moist sponge so made is then sumptuously layered and
coated with cream flavored with dark chocolate or milk chocolate or with various fruit flavours.
The chain sells both Indian and Western savouriesincluding samosas, cutlets, puffs 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 duringDiwali, Christmas,
Easter, EID and other festivals.
Fast food Snacks include more than 50 items like Burgers, Pizzas, Patties, Cornato (bread
cone with garlic chicken), Cornizza (veg version), Hotdog & so on.
Monginis produce more than 30 different gateaux primarily in round, square and heart shape
both in egg and eggless category. Monginis has cakes in regular, premium and super premium
segments in which Black forest, truffle Dutch premium Shimmer and premium Zanzibar are
most popular cake family among customers.
2. Price
Price of Monginis cakes is reasonable as compared to its competitors. The prices of cakes vary
on their size. On an average a half kg cake would cost something around 200 and it goes up to a
1000 depending on the size and the flavor.
41
3.Place
Monginis cake shop is present in 12 major cities in India. It has around500 retail outlets or
franchise all over India. All the cities have a production unit from which the goods are supplied
daily. Goods which are unsold are taken back by the company and are given away in charity if in
consumable condition or else destroyed.
Manufacturing Franchisee Network
CITY YearofEstablishment No. ofCake Shops
Mumbai 1972 165
Kolkata 1991 115
Pune 1995 48
Hyderabad 1996 7
Rajkot 1998 10
Nasik 1999 10
Goa 2000 29
Baroda 2000 24
Ahmadabad 2003 19
Surat 2004 14
Orissa 2005 5
Now Monginis, after launching its 4th successful Bake Shop in Hyderabad is all set to open the
same in other cities. In the Bake Shop, customers will be able to view freshly baked products
coming out of the oven and cakes decorated in their presence.
42
4. Promotion:
Monginis has used media such as TV, print, web, hoardings, etc. to advertise its products. It
regularly comes out with offers on festive occasions.
Recently to promote its cakes and chocolates it came out with a range of a special cakes and
chocolates for all those SSC (Xth Standard) students who passed out this year. It has also
planned for chocolate baskets for the boys and girls. The successful boys can be gifted with a
blue coloured basket filled with assorted chocolates and decorated with a Doll (Boy). And,
similarly the girls can be gifted with a pink coloured basket filled with assorted chocolates
anddecorated with a Doll (Girl).
BRAND MONGINIS
Monginis is a leading brand of cakes in India. Generations have grown celebrating their
birthdays with Monginis cakes and thus it has become synonymous with the Cakes. Making
cakes is an art which Monginis has acquired over a long period of time but converting it into a
viable business model was an icing on thecake. Today, brand Monginis stands tall on certain
basic values like – consistentquality, continuous innovation, value-for-money offerings and
availability closest to the consumers.
43
At Monginis follows a principleofcreatingbrand ambassadors. Brandambassadors are not the
celebrities who advertise the brand for money but common people who after experiencing its
products get satisfied and share their experiences with their near and dear ones. Product
innovation is a hallmark of Monginis. In this ever-changing world, the Cake designs, flavours
and recipes keep changing. Monginis has a strong product development team which keeps a tab
on the current trends and keeps making necessary alterations or develops new products
altogether.
A tight control over the costs without letting the quality deteriorate is a skill acquired by the
management team of Monginis through its experience of over 25+ years. The cost advantage
gained is then translated in the form of valuefor moneyproducts for the end consumers.
Both physical and psychological accessibility for the consumers comes to a brand after years of
hard work and personal attention. And Monginis strongly believes that the consumer should
reach to its products without much effort and he /she should feel comfortable while entering and
dealing in its shops. Monginissales staff is adequately trained in such a way that they not only
44
sell the products but also make the consumers comfortable. They also do a considerable
missionary work of educating the consumers on cakes.
"Most Admired Retail Food Chain - Metros" Awards 2009-2010
Monginis wins Award "Most Admired Retail Food Chain - Metros" By Shoppers
Consumer Insights Retail Asia Congress 2009-2010. Award Received by Mr.
KumailKhorakiwala - Joint MD Monginis Foods Pvt. Ltd.
45
Monginis Clients
Few of Our valuable and prestigious clients:
1. Indian Railways
2. Titan industries
3. Wipro
4. Tata Group
5. GTL
6. Pantaloon Retail India Ltd.
7. TCS
8. Alkem Laboratories
9. Tata Teleservices
10. Aditya Birla Group
11. Patni Computers
12. WNS
13. Glenmark Pharmaceuticals
14. Kores India Ltd.
15. MGL
16. CGSL – Citi Group Services Ltd.
17. Big 92.5 FM
18. Erica Pharmaceuticals
19. Saifee Hospital
20. Mahindra inter trade
21. SAMSUNG electronics
22. LG ELECTRONICS
23. ICICI prudential life insurance
24. Life style international
46
47
LOGISTICS MANAGEMENT
Logistics is the management of the flow of goods, information and other resources between the
point of origin and the point of consumption in order to meet the requirements of consumers
(frequently, and originally, military organizations). Logistics involvesthe integrationof
information, transportation, inventory, warehousing, material handling, and
packaging, and occasionally security. Logistics is a channel of the supply chain which adds the
value of time and place utility.
Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to meet customer
and legal requirements.
The backbone of any business is logistics. Monginis receives orders from the retail shops in the
night a day before and all the products are manufactured throughout the night and the shops
are supplied through company vans by early morning. All the products need to be delivered
within a span of 1 – 3 hours’ time andthey follow the rule ferociously. All their vans are
insulated and even carry insulatedshippers.
Some of the vans are refrigerated, which ply on the long routes. A single van generally covers 3
to 4 Monginis shops‘orders so that they can deliver the orders on time without any delays.
They have a set of guidelines for logistics and their staff in the shops. They are well trained on
these aspects and these guidelines are strictly followed. They also conductsurprise audits, just to
ensure that the quality of the supply chain is maintained.
48
ORDERING SYSTEM
As mentioned in the earlier topic of logistics about when the retail shops place their orders for
the next day it is equally important to know how their ordering system functions.
Initially Monginis retail shops had to follow the telephonic ordering system.
In this method they were provided a telephone help line number. The head of the retail shop have
a checklist of items which contained all the items which Monginis prepares. The person has to
place orders in different categories of cakes, pastries, savories, and namkeens etc. as per their
requirements for the next day.
This required manual efforts and was very time consuming method of order placing as the person
has to name each and every item he requires. Also there were chances of mistakes being
committed because of certain communication barriers which could lead to losses both to the
bakery and the retail shop. To replace this method they came up with the fax system for placing
orders. The fax system of placing order was practiced for a long period when the need for more
innovation wasrequired now with increasing use of technology and innovation in every
sector, Monginis has also come with a modern method for placing orders called as
E-orderin, this method involves placing orders through net. It involves use of the most popular
and appreciated way of communication that is internet. This method can be much relied upon for
quick placements of orders and does not involve any tedious task.
Under this method, every Monginis retail shop has to load a Dealer Software provided by
Monginis in their computers. This software provides all the necessary facilities for placing order
like for example the time of order, any particular shape for a cake, proper weights available in
each category etc.
A proper diagrammatic representation of how E-ordering functions is shown inthe file
presented separately.
49
TRAINING SESSIONS AND MONGINIS ANNUAL MEET
Training sessions
 Annual get-to-gather
Training Sessions
Monginis known for its excellent services with which it treats all its customers is the result of the
excellent training sessions that are regularly conducted by Monginis for both the owners as well
as the staff that is appointed by them. These sessions take place in the form of presentations by
head of departments or senior manager or by any important person holding an authority at a
higher position. The person owing a Monginis franchisee is expected to attend the meetings and
seminars regularly as and when scheduled by Monginis so as to improvise their service quality
and attract more and more customers and satisfy them in order to turn customerretention into
customer loyalty towards their products.
The training needs more of onthejob training which is provided in their model shops, where most
of their successful franchisees train the new franchisees. Monginis sales team provides directions
throughout the training programme and keeps providing additional inputs wherever required.
Apart from extensive training to franchisees before the shop opens, they also provide a lot of
support after the shop opens till it stabilizes, in terms of operations. They are also made aware
50
about the rising competition in Bakery line and how they can come up with innovative ways and
ideas of displaying their products.
The owner of the shop wishes to see his staff working the same way and with same dedication as
he works to earn profit. Sales staffs are given training through regular sales programmes about
how to display the products well, how to sell the product and also simultaneously make
advertisement for their other products. For eg: when a staff member is selling a cake to a
customer he should also ask or advertise or convince the customer to buy candles or a knife with
it. The basic aim of these trainingis to develop communication skills of the staff in order to sell
the products to thecustomers with respect and politeness.
Monginis Annual Meet/Celebration
Monginis holds an Annual Meet or Celebration Party every year during the period of March or
April in which it invites all the dealers of Monginis of that particular city where the party is held.
The main objective of this get-to-gather is to bring all the dealers close to each other, know each
other well, so that Monginis can function as one big united family.
The party usually starts in the evening. Different varieties, shapes, weights of cakes of various
designs or characters are displayed for the dealers to take a look at those as they arrive at the
party. New variations, introductions in savouries and cakes are informed to the dealers,
introduced by the Monginis bakery. Dealers are also given samples to taste and suggestions are
expected from them. This is followed by a small conference meeting by the dealers, head of
departments and the top management of Monginis in which important discussions are made. It
also consistsof the growth report about Monginis as a whole.
51
Why should one select a Monginis Franchise?
 On selecting a Monginis franchisee one becomes the immediate beneficiary of trademark
and goodwill associated with them and acquired over more than 35 years.
 Guidelines on various aspects for starting a Franchisee manufacturing unit
including site selection, estimation of project cost, infrastructural requirements, related
government formalities, parameters for assessing the potential of business in the area etc.
 Minimum risk in the selection of right machinery and equipments with proper installation
and start up.
 Assistance and time to time guidance in the stage wise completion of franchise unit.
 Popularity of brand ensures short lead time and good sales response from day one.
 Complete guidance regardingopening of franchise shops, like selection of location,
shop infrastructure, internal decor, training of dealer salespersons etc.
 Access to new formulations, product recipe, specifications, expansion programs,
operational manuals etc.
 Initial training provided at the Monginis Headquarters in the areas of – Finance,
 Taxation, Systems Sales skills of your Field Staff Shop sales skills and shop management
 Training in Production Processes on the shop floor.
 Training on the job extends even after unit starts operations, with key company persons
remaining there to weed out the teething problems and assist you inensuring quality
standard.
52
MONGINIS SEEKS FRANCHISE
A Monginis franchise in Galleria Mall of Hiranandani Gardens, Powai.
Monginis, a Mumbai based leading bakery chain, is all set to open 50 new outlets via the
franchise route by the end of 2010. The company also plans to double its retail distribution from
the current retail network of 15,000 stores across the country.As told to Abha Garyali of
Franchise India Holdings Limited (FIHL) by
Virendra Ghole, Marketing Head, Monginis, We have set a target of adding 50more shops by the
end of this year, to our current number of 558 shops in 38 cities.
53
Analysis Report
There was a mixed reaction of the people as per their variant choices but as per my
analysis I found that majority of the people were eager about Monginis coming up with
some kind of Health Drink may be fruit juices etc.
Other category that was focused upon was Sugar-free products for diabetic people.
Some other choices mentioned by people surveyed were more varieties in Savories,
Macaroni products, French Fries and White and Brown Breads.
CUSTOMER RELATIONSHIP MANAGEMENT
54
What kind of “Gifting Programmes” Monginis can handle?
1. Monginis can create a special bonding between you and your Customers /
Clients.
2. Monginis can cater to your “Shareholders” and win them over.
55
3. Monginis can also help you in keeping your Employees happy.
4. Monginis can also handle the prestigious Corporate Special occasions.
56
CHAPTER 5
CONCLUSION AND SUGGESTIONS
Finally from the project I have got a complete idea about Monginis and how well it has
been successful in maintaining its hold on this tough market competition. Every
business in today‘s market situation is surrounded by number of challenges and
competitors but how a company deals with them is very important. Even while facing
tough competition Monginis is able to maintain its product‘s prices to affordable level is
a major achievement.
Thus Monginis punch-line rightly says, “Go Ahead Celebrate…”
57
WEBILOGRAPHY
 www.monginis.net
 www.marketing91.com
 news.franchiseindia.com
 www.franchisebusiness.in
 bakerybazar.blogspot.com
 http://www.monginis.net
 http://yummycakes.blogspot.com
BILIOGRAPHY
1.Mary Berry's Ultimate CakeBook by merry berry,2006
58

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Market analysis and_strategies_of_monginis

  • 1. 1 A PROJECT REPORT ON “FRANCHISING WITH REFERENCE TO MONGINIS” SUBMITTED BY MUSTAFA CHANGI T.Y.B.M.S. Roll. No.06 SEAT NO: 13-8806 FOR THE DEGREE OF BACHELOR OF MANAGEMENT STUDIES (BMS) UNIVERSITY OF MUMBAI UNDER THE GUIDANCE OF PROF. BHARATI MAKHIJANI KJ SOMAIYA COLLEGE OF SCIENCE AND COMMERCE (AUTONOMOUS) MUMBAI - 400077.
  • 2. 2 INTRODUCTION Franchising is the practice of using another firm's successful business model. The word 'franchise' is of Anglo-French derivation - from franc - meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the operator pays the supplier a fee. Thirty three countries, including the United States, and Australia, have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership. It is classified as a wasting asset due to the finite term of the license.
  • 3. 3 Franchise in India Franchising in India is at a very nascent stage. However, this industry has clocked the annual growth rate of 30% with a market size of USD 7.2 billion, the second fastest growing industry. In the US, 45% of the sales come from franchised business; India is still to reach that stage. India offers lot of potential for the franchising community & expected to reach US$ 20 billion by 2013. Franchising is still an emerging trend in India. It is still growing and as such, most of efforts by Indian franchisors are still inclined to franchise recruitment and sales unlike in the West where franchise management and ensuring franchisee profitability is the matter of greater concern. The picture is likely to change with the passing of time and after gaining experience and knowledge in the same domain. Few of the important sectors that are thriving well in this industry are: Education Sector: India, with the largest youth population, is an attractive destination for the potential business opportunities in Education Sector. Its unquenchable thirst for
  • 4. 4 quality education with world class training systems and its desire to fill the wide gap between the number of potentially employable people and corresponding training institutes available has led to a widespread demand for franchised education. This has given rise to the various education operators and service providers such as play schools, schools, institutes, development & training institutes, professional coaching operators etc. According to a survey, the growth of the education sector in the country is pegged at 35% amongst new concepts and it will continue to grow in the years to come. Keeping in mind the current market trends that need to be capitalized in India, the education sector further opens the doors for many entrepreneurs. Looking at the risk and profitable returns variation from business to business, franchising ensures a safe method to own a brand especially in the Education sector which is least effected territory even in the time of recession. Private institutions are typically perceived as hallmarks of quality education and given the demand, Indian education entrepreneur are ready with massive expansion plans, which will provide thrust for the education sector to grow multifold. F & B: With the increased number of people preferring to eat out and spend more on food items, this sector has dominated the franchising industry like no other business sector. The market is flooded with food franchise opportunities of different categories suiting to different level of budgets. There are many different options for food and beverage franchising, such as fast food, health food, pizza, sandwich shops, ice cream parlor, smoothie, juice bars, cookie shop, candy outlet, and bakery as well as restaurant franchises. The Food & Beverage sector is expected to touch 45% of growth level in the near future. This may not be the least effected territory but is undoubtedly one of the safest ones to go in for. Clothing & lifestyle: Changes in economy and lifestyle all over the globe have led to an increase is sales of clothing, shoes, jewelry and accessories which makes this a great industry to try to get into, particularly on a franchise level. People buy clothing, shoes and accessories quite often based on a brand name. When you buy into a franchise, you are getting that brand name with it so you are already a step ahead. Thus, this sector offers lucrative franchising opportunities with people willing to spend adequate amount of money on clothes and accessories. As consumers want the best clothes for themselves they are ready to make investments too. Thus, clothing industry will never be out of business if one gets to offer quality products as per the
  • 5. 5 demand of the market. Industry statistics peg the Indian apparel market currently at Rs 1389 billion, growing at a Compound Annual Growth Rate (CAGR) of 12 per cent.
  • 6. 6 Growth of small business franchise opportunities in India India has proved out to be one of the largest industrial hubs with its growing perceptive image. In fact it has proved out to be a shockproof economy despite of the highly unstable state of the worldwide economy. Its economy is expanding and opening new doors for various opportunities. There are numerous types of investment opportunities available for every kind of investor. Even for the small scale investors there are various small business franchise opportunities available. The quote ‘Be Your Own Boss’ is being interpreted in true sense. In recent years many people have left their white collar job for starting their own business as Indian market is flooded with an array of small business franchise opportunities. Today 95 per cent country’s industrial units come under Micro, Small and Medium Enterprises (MSME). This sector has around 128.44 units (provisional 2006-07), registering a growth of 4.1 per cent annually are producing thousands of products. The value of production at current prices is estimated to have increased by 17.9 per cent to Rs. 587,196 crores and the employment is estimated to have increased to 312.52 lakh persons. Today there is a void of adequate business resources for small business much more so when they contribute 35 per cent to national income while corporate contributes 15 per cent to national income, there has been no dedicated matter created to focus on the needs of small business. Seeing the scope for the growth of small business opportunities, improving the sales and marketing capabilities is an important factor. It decides the growth of small business. There are many cost effective small business growth strategies and tactics that you must understand properly before implementing them. Thereof, small business should not just maneuver after
  • 7. 7 growth opportunities. As driving in speed towards growth opportunities entails a risk i.e. speed is higher than the anticipated gain of reaching the peak before others. Therefore, it becomes even more important to predetermine his path and speed in the business plan. Small business franchising opportunities are thus expanding with each passing day. Looking at the facts and figures regarding the growth of small businesses in franchising, it is to be said that such franchising opportunities are not just restricted to food and automotive sector. In fact, each and every sector too is on expanding mode.
  • 8. 8 Franchise marketing plan As more and more entrepreneurs adopt franchising as a business model, franchisors should draw a franchise marketing plan laying down specific guidelines to achieve one or more marketing objectives. When a company decides to franchise its business, the questions that normally arise are: what should be its marketing plan, how to get the right franchisee, and what yardsticks be adopted to recruit a new franchisee. In fact experts believe that the marketing plan is the most important part of a franchise business plan. The marketing plan is a written document that lays down the plan of action and specific guidelines to achieve one or more marketing objectives. The important features of a marketing plan are:  It is a formal plan and hence has to be in a written form.  Marketing plan is a part of the overall business plan.  Solid marketing strategy is the foundation of a well written marketing plan.  Marketing plan can be for a product or service, or a brand or a product line.  It contains a list of actions.  The plan is for 1 to 5 years' duration  And finally a marketing plan should be clear, quantified, focused, realistic and agreed by all the parties concerned. A franchise marketing plan means to conduct a search for an astute franchise, and enter into a franchise agreement. It's a plan focused on product, audience, awareness and delivery. It enables you to present on paper a well-thought out model - how you plan to enter the market and what methodology you would adopt to gain recognition and preference. It also includes why you
  • 9. 9 think, it is the good time to start the franchise business. All above devices constitute your franchise marketing plan. Subsequently, we should also know the elements of a franchise marketing plan. I would prefer to elucidate this by using elements of Kotler's Classical Ps of marketing. All the 8 P's are very much relevant in the Indian context. The 8 Ps can sometimes divert attention from the customer, but the framework they offer can be very useful in building the action plan. The 8Ps are:  Product: A franchisor needs to discern which of his products can be franchised. Is there a need for your product/services? One should take a realistic view of the opportunity.  Place and Distribution: A franchisor should be able to select place/places where he could open outlets and apply distribution strategy. He should be able to decide whether to go for an individual franchise or for a master franchise at specific places.  Price: Pricing is very important. The franchisor should aptly decide whether to wear a premium tag or play price game.  Promotion and advertising: This can be divided in two categories - above the line and below the line. We should devise ways to reach out to the target group effectively, and use appropriate forms of media, like radio, TV, Internet, brochures etc.  People and organisational structure: People represent the business. The organisational structure should be designed based on the nature of business. It should essentially constitute a support structure for the franchisee business.  Physical environment: In many businesses it is called 'look and feel of the outlet. What it basically means is the ambience created to service the customer. The same would largely depend on the nature of product or services.  Process: This also means the best practices created to make the business scalable and profitable. The processes should be created to sell and service the customers and the franchise.  Packaging: The last 'P' applies to franchisors, who are franchising concepts where physical products are involved. Here, the decision to package the products becomes important. The 8 Ps constitute a useful framework to decide how the company resources will be manipulated to achieve the objectives. Although the detailed plans will cover each of the 8 Ps, the focus will vary, depending upon your organisation and its specific strategies. A franchise organisation can be categorised into three
  • 10. 10 categories, viz., prospective franchisors, emerging franchisors and mature franchisors. We discuss below the marketing plans for each of these categories:- Franchise marketing plan for prospective franchisor A typical prospective franchisor is a small and medium business, foraying into franchising. He has the profitable, scaleable and duplicable business model which he wants to expand through franchising. As this franchisor is a first timer, he should implement all the 8 Ps of marketing plan, with special focuss on 3 Ps, namely:  Promotion and Advertising: As usually, at this stage, an SME company does not have a big brand name, and finances are tight. It is always a catch-22 situation between how much to spend, what should be the returns on marketing spend and which medium to use. In the internet age it is recommended that companies should use internet intelligently. Other efficient media for a prospective franchisor is direct marketing tools like exhibitions.  Product: A franchisor's decision about launching a product is very significant. All the products may not be franchisable, even if a product is franchisable, it needs to be modified to suit various regions and countries, e.g., a vada pav franchise may run in Mumbai but it may not run in Bihar. Similarly an idli franchise may flop in south.  Price: The decision about pricing is crucial for a first time franchise. Whether to wear premium tag or allow discount should be decided after an intensive market study of the product. Franchise marketing plan for emerging franchisor An emerging franchisor is one who has a good franchise system now, and is desirous to go national from being a regional player. This franchisor is also looking forward to fast track growth and is desirous of a sound franchise recruitment plan. For such a franchisor there are four focus areas:  Place and Distribution: The franchisor should carefully select the areas for expansion. For example, if a training company wants to expand its presence from north India, it should decide which next state it should step in. It would make more sense to go to west - adjoining north, rather than heading to extreme south. It should also decide on expansion model, whether master franchise, multiple outlets or single outlet franchise.  Price: As the entry is being made into a new region, a survey needs to be done of competition, price acceptance and product preference in the region. One may have to go for multiple price points for the same product in different regions.
  • 11. 11  People: The entry into the new region demands study of people's tastes, preferences and customs. Accordingly, the franchisor may have to bring in appropriate changes in his products/services to make it acceptable to the local people, as also bring in changes in the organisational structure. I have observed that south based stock market companies have not been able to penetrate into north India.  Process: As now lot of franchise recruitment and support will happen from a distance. If the processes of recruitment, on-going support and after sales are not set and implemented, it can lead to failures or franchise disputes. A case in point was coaching classes franchise 10 years back they were all regional based and were not able to go national. Franchise marketing plan for mature franchisor This franchisor is a leading name in the industry; has 50, 100 or 1,000 franchisees in the country; is present across the country, and is desirous of going international. It now needs to prepare itself for international market. Though it is recommended that all the 8 Ps be observed, the following 4 Ps demand extra consideration.  Product: There is some times a lot of difference in the product for Indian market and international market. In fact the product may have to be adopted for each country separately. When Indian IT training companies were looking at expanding internationally 12 years back, they had to translate books in local language like Chinese, Spanish etc.  Place and Distribution: The decision as to which countries and territories to enter, is a crucial decision again. Lot of factors like competitive edge, support system, local laws of land, etc, have to be considered. A miss in this decision can lead to failures and it can be a costly affair too.  Promotion, branding and advertising: As the countries of entry are new a decision on all the three, along with cost consideration has to be taken. In many countries brand name has to be reconsidered or registered locally before using it.  People: This being the most important area of consideration, support structure, organisational structure, placement and location of people has to be decided. Also, it should be clear whether we will export people to new countries or we will employ locals for managing the business.
  • 12. 12 Franchising: a kick start business concept Franchising as a profitable business concept is being employed by more number of businesses than ever before. Today franchising can be the best available option for the entrepreneurs aspiring to attain high returns in short span of time. Find out more Today, whether you are aspiring to expand an existing business or start afresh, or willing to introduce a new concept, franchising is just the right venture to opt for. The idea of buying the franchise offers multiple benefits. With minimum risk, less investment, constant support system, and a popular brand to work with, franchising has become one of the popular business expansion systems in the world today. This article tries to shed some light on the various reasons for considering franchising to start a business. With its popular brand and established marketplace, a franchisee offers the entrepreneur significant advantages over any independent business undertaking. Qualification is not a pre requisite to own a franchise. For example, you need not to be a graduate in business administration to succeed in a franchise business, as because the franchisor is there to assist you to establish your franchise business. Moreover, as a franchisee, you need not care about the sourcing of the products or developing innovative strategies from time to time. Further, taking up the franchises rather than starting a business from scratch comes with minimum risk factor maximum returns. Thus, franchising is considered as a profitable concept that continuously plows through challenges and persistently produces wealth and success.
  • 13. 13 In order to be more precise on the various reasons regarding why an aspirant should opt for franchising, here is a comparative analysis of a franchising business and an independent start up. These include:  An idea: ‘An idea can change your life’. Starting a business requires an idea about the kind of business one would like to do. In other words, an aspirant looking to start his own business must possess great business acumen and needs to do rigorous market research. Starting from his business lay out, selection of location, investment plans, recruiting and training staffs, marketing and promotional plans, an individual has to take care of every aspects of business establishment. On the other hand, if you opt for franchising, you need not to care about all these things. All you need to do is to choose the right opportunity that suits your pocket and has immense growth potentials.  Finance: Establishing an independent business entity requires huge investment as you need to do everything on your own. No doubt, you have to spend money on various other things (mentioned above) also. But then you require less start-up capital as the franchisor has eliminated unnecessary costs in the business system. Moreover, access to economies of scale and making use of the shared resources is another advantage.  Location and layout: Being an independent aspirant, you have to select the location and the layout of the store on your own. In addition, this could be a difficult task for those who do not have prior experience in running the business. However, as a franchisee you have the franchisor to help you select the right location as selecting the best layout for your franchise outlet holds great importance in the success of the business.  Innovative products and their sourcing: As already discussed, that taking up a franchise business eases off the burden of creating innovative products and sourcing the material from the franchisee’s shoulders. While for an independent entrepreneur, this could be a tough exercise. For instance, in a fast foods business, the owner is involved in making and selling a tangible product and at the same time, he needs to safeguard the uniqueness of the recipe. Although, the franchisee need not worry about these things at all.  Staff recruitment and training: For any independent business, recruitment and the training the staff require lot of expertise and any small mistake can lead to dire consequences. Whilst the franchisee is often helped by the franchisor in recruiting and training the staff.
  • 14. 14  Branding and promoting the business: Unlike independent business, taking up a franchise gives you the ability to leverage off an already established brand name. Whereas, for an independent business owner, getting accepted in a competitive market can be expensive, time consuming and very difficult. The brand equity you get after buying the franchise eradicates this intricacy. Today, popular brand and superior quality is the paramount elements customers look for while spending their hard earned money. Franchising is a more convenient option to get started with a business. In short, buying a franchise over starting an independent business is an intelligent move to gain good benefits in this fierce competition Structuring a flawless franchise system If you are considering the franchise route to expand the reach of your brand presence beyond certain geographical area, then this article is a must read for you. Franchising is often considered as an excellent growth strategy for a business but it does not suit everyone, as it requires great amount of foresight, determination, and hard work. Besides this, a prospective franchisor is also suggested to do extensive research to ensure his clarity regarding financial inputs, commitment, and systems that are required to build a strong and sustainable franchise. Here are enlisted few points that must be taken into account while developing a franchise system: Differentiate yourself in the market: In the brand cluttered market, franchising is one of the profitable ventures, if you need to make your brand stand out in the market. Apart from the brand name, you also have to differentiate your franchise system by clearly establishing the reasons that can convince an aspirant to buy your franchise. A huge amount of hard work is required to
  • 15. 15 establish a strong foundation for your franchise business that can attract like minded entrepreneurs to raise its potentials for growth. Groundwork for franchising: A great deal of underpinning is required before selling your franchise. For this, you need to invest a lot of time and money in building a strong business model that can be replicated successfully anywhere. Being a prospective franchisor, you need to do a lot of paper work, develop documents (franchise agreement, operating manuals and so on), marketing collaterals to support and sell the franchise, facilitating training, and support for new franchisees. Once, you are done with these pre requisites, you need to advertise the requirement of franchisees to expand your business. For this promotional activity, you can use various media such as:  Print media: It is the oldest and most authentic mode of promoting a business and seeking franchise partners. However, this medium takes longer time to reach out to the target readers, but still it is one of the reliable mediums to communicate to the readers.  Electronic media: This is the fastest mode of communication and now has enough options under the tag ‘electronic media’ such as TVand radio.  Internet and social networking: The best and cheapest way to seek franchisees and promoting a brand name is to make use of the social networking websites. Create a win-win relationship: As a new franchisor, your main focus should always be on creating a win-win situation rather than minting money in the name of franchise fee and royalty. You have to keep yourself in the place of a franchisee and then design the franchise system for your business. You have to reasonably structure your franchise fee and royalty thereby giving them enough room to yield a good return over investment. Being a franchisor, you should always keep in mind that franchisees are the route to revenue for your business. Carefully select your franchisees: Never select your franchisees solely on the basis of their ability to invest money. Always have an eagle’s eye while selecting your franchisees as everyone cannot fit with your brand and business culture. You must carefully analyse the interest of the franchisee and his business acumen that can drive the business towards new heights. Being a franchisor, you must design some eligibility criteria and stick to it while selecting your franchisees as the fate of your franchise expansion depends directly on the success of your franchisees.
  • 16. 16 Building a strong support and training system: During the initial phase of the franchise business establishment, the franchisees need some hand holding. Being a franchisor, it is your duty to ensure efficient training and strong support system for your franchisees. However, the success of the franchisees depends on the ongoing support system. These are few tips that a prospective franchisor must keep in mind before taking up the franchisor’s seat. Being new in the business, you are surely going to face some problems. However, building a strong foundation is the way towards developing a sustainable franchise business. Building a winning franchise Till date, inestimable content has been written on franchising and its benefits. No doubt, people have acknowledged franchising as a successful business model, but still there are numerous big business brands that have kept them detached from franchising. Let us investigate into it. Franchising, as we all know has proved to be a successful business model for expansion and growth. It is also a proven method for aspiring entrepreneurs to fulfill their long cherished dream of becoming a business owner. Despite the fact, there are various well known brands that are still not in favour of taking up the franchise route, and prefer to suffer losses than considering franchising. Reasons for not taking franchise route Let us find out the various justifications these brands are giving for not opting franchising: Franchising not apt for large format stores: Brands running large format stores believe there is hardly any large-format retail model that runs on a franchisee network across the globe.
  • 17. 17 Expansions on larger scale require fast decision-making, stable adjustment to changing requirements. Franchising weakens the business model: Another reason the non-franchise companies give for not preferring franchising is that following a franchise route for expansion will dilute the business strategy, developed over the years. Huge investments: These non-franchise brand owners also consider franchise model expensive. It requires lot of investments in terms of technologies, mechanism, and strategies. The training involved with the usage of these, requires huge investments, which is a costly affair from a franchising perspective. Time constraints: Franchising is a time consuming business model and needs lot of patience. These days when businesses are growing at a tremendous pace, the profit outputs generated on franchise investments takes lot of time which is not acceptable. All these factors are best addressed through a business model based on company-owned stores then franchising. Franchising preferred for small formats: All big companies believe that franchising is an excellent business mode for small format stores, as it is easy to manage and organise them via franchise route, However in case of large format stores company owned and company operated model are suitable. Despite the above mentioned reasons for not taking up franchise route for expansion by big brands, there are companies that are attributing their success to franchising. These companies believe that there are other best business models than franchising if a strategy is planned in advance before taking up the franchise route. However, the most preferred way forward would be to initially test the company owned model in order to understand the basics of the business model itself before considering franchising. Besides, if these steps are followed before taking up the franchise route, then success will follow soon. Plan your franchise right for success Franchising is a rewarding business model, provided you plan your franchise strategy right and after through research. Market research: Try to learn what your competitors have done that worked or that did not work, either by personally visiting different companies as a customer, or by watching their profit graphs during various promotions or sales operation.
  • 18. 18 Create a business model: It is always advisable to develop a business strategy which makes you stand out in the industry. Use the data collected during market research to do this. A franchise is successful for the reason that though it is similar to other businesses, but it offers multiple benefits, which sets it apart from others. Funding advantage: Unlike funding an independent business, franchise can be easily financed through a bank loan, or grants from the Government or from individuals/entrepreneurs that support your industry because of its brand identity. Plan the business right: The business plan should mention everything that separates you from competition, providing estimate of revenue potential and how the franchise is expected to operate. Send the copies of the plan to the funding sources. Disclosure Document: Prepare a standard disclosure document (required by the Federal Trade Commission) and register (if necessary) with the state. Documentation: Prepare documents for all the systems required to run the franchise and develop a training system complete with a written manual. Promotional strategy: Develop a strong promotional strategy to market and develop the brand. Search for efficient franchise partners: The franchisees are the life line of any franchise business. So the franchisor needs to pay special attention while looking for franchisees. After reading the above pointers, I am sure that all those big names of the business world who are not favouring franchising will definitely reconsider their business strategies. You never know, tomorrow we may see some popular business houses foraying in to the franchising world.
  • 19. 19 INTRODUCTION Monginis traces its roots back to its humble beginning, to a time when it was a favorite with the Europeans in Mumbai. Little excuse was needed for the Englishman to pick up a Monginis cake whenever there was an occasion in his family. A birthday, an anniversary, a wedding or even tea- time would not be complete without Monginis. The shop, located in Mumbai's Fort area, was a favourite with Europeans. Run as it was by two
  • 20. 20 Italian brothers, Monginis was a must at every celebration. Even then Monginis cakes, pastries and savouries were baked to perfection and were in great demand. In the 1960s, Monginis was bought over by the Khorakiwala family and after that history was made. By 1971, the idea of having a nationwide franchise network and reaching out to customers in their neighborhoods was born. Today: The 42,000-sq-ft HACCP certified headquarters of Monginis is the place from where all the yummy stuff emerges from. It is the nationwide headquarters, to which all manufacturing and cake shop franchisees report. It is the fountainhead of ideas that are goodenoughtoeat. The Monginis headquarters is also a model bakery with state-of-the-art manufacturing facilities designed to produce a wide range of cakes, gateaux and pastries, tongue-tickling savouries and a variety of any-time snacks. Here quality assurance steps at each and every stage of the manufacturing process ensure world-class soft n fresh cakes, snacks and baker's ware. Monginis headquarters has a well-equipped lab and has gained the HAACP certification since past 2 years for maintaining and assuring best of the Hygiene and quality standardsof our products and for our customers. Recently, Monginis commissioned a factory at Bhiwandi near Mumbai admeasuring 6 lakhssq.ft.
  • 21. 21 Ideas and Innovations Ideas and innovations make it possible for the high-level excitement to be sustainedinthe brand. • Pioneers of a fantastic Cross delivery System which connects 11 manufacturing Franchisees through an intricate network to simplify the means so that your beloveds can get a cake delivered in any part of India ordered from anywhere in the world. • A helpline 022-40786702 attending to customers to assist to make any Celebration possible even at a short notice. • An Interactive website which allows online bookings of our products from all across the world to be delivered in parts of India, where we have a presence. • Pioneers in the introducing corporate cakes with Company Structures, logos and Products too.
  • 22. 22 Birthday Cake story History of Birthday Cakes Cakes date back to ancient times; however, they were very different then. According to food historians, ancient Egyptians were the first to show evidence of advanced baking skills. The ancient Greeks made round or moon-shaped honey cakes or bread and offered it at the temple of Artemis:The Moon Goddess. A later tradition of birthday cakes started in Germany in the middle ages. Sweetened bread dough made in the shape of baby Jesus, in swaddling cloth, was used to commemorate his birthday. This special birthday cake later re-emerged in Germany during children's birthday celebrations a.k.a. Kinder Fest. Germans also baked another special kind of layered cake called Geburtstagorten. This was sweeter than the ubiquitous coarse, bread-like cake.
  • 23. 23 Progress, a SweetProgress The first icing was made from a boiled composition of the finest available sugar, egg whites and various flavors. It was then poured on the cake, which was put back into the oven for a while. The cake was soon crowned with a hard, glossy, ice-like covering. Molded cakes and fancy icing was hugely popular in Victorian times. The art of baking cakes progressed through the ages, and it was not until the middle of the 19th century that the modern cakes as we now know it was born. The taste and appearance was enhanced with extra-refined white flour and baking powder (insteadof yeast). 
  • 24. 24 About Monginis: The Story of the Rising Cake Monginisis a major Indian pastry, cake and general bakery chain, based in 11 Indian cities like Mumbai, Kolkata, Hyderabad and Cairo, the Capital of Egypt. The Monginis brand name originated over 100 years ago, when 2 Italian brothers set up a catering firm in south Mumbai. Monginis catering service including cakes, pastries and savories were in great demand. To the last detail, complete with a wedding cake it was Monginis that breathed life and fun into the European wedding in Mumbai. After it was bought over by the Khorakiwala‘s in 1960‘s, the brand has remarkably grown to become thenational leader in cakes. In 1971, for the first time in India, a plan of having an exclusive franchise cake shop was conceptualized. Mr. H.T. Khorakiwala, the founder president of national association if bakery industry, who spear headed the operations, realized that to grow it was necessary to focus on production standards and distribution. The retail management was best left to the shop owners who were in a better position to offer personalized services to the customer. The success of the first franchise cake shop sparked off a getting up of a chain of franchise cake shops all across India, which is nearing the 500 mark. Monginis has emerged as one of the largest food store in India. At the sprawling 150,000 sq. feet combined manufacturing facilities in Mumbai and its twin city Thane. The organization today owns the state of art manufacturing facilities to produce a whole range of cakes and bakery products both Owen fresh and supplied daily to all cakeshops.
  • 25. 25 COMPANY PROFILE: BasicInformation CompanyName: M/s.MonginisFoodsPvt. Ltd. BusinessType: Manufacturer Product/Service Cakes, Gateaux,Breads,Burgers,Savouries (We Buy): Cookies Address: Shop No. 9, Pritam Estate Opposite Babubhai Jagjivandas Dadar East, Mumbai-400014 Brands: Monginis,Pita Wich CompanyWebsite URL: http://www.monginis.net Ownership & Capital Year Established: 1971 OwnershipType: Partnership Legal BusinessOwner
  • 26. 26 FACTORY INFORMATION FactorySize: 30,000-50,000square meters FactoryLocation: Off. LinkRoad, Opp.CityMall,Andheri(West), Mumbai- 400053 QA/QC: InHouse No.of ProductionLines: 8 No.of R&DStaff: 5- 10People No.of QC Staff: 5- 10People
  • 27. 27 OTHER DETAILS  Core Vision  Values  Quality  Privacy Policy  Terms and Conditions
  • 28. 28 Core Vision Every organization operates itself with a vision in their mind so that the activities of each and every person involved with the organization leads to same direction. The core vision of Monginis is as follows: 1. To help people celebrate their happiness and make those moments memorable in their lives. 2.All Monginis products and services shall be offered with the same love, care and affection as if; they were meant for the most beloved person (or a family member).Creating value-for-money products without compromising on quality in terms of taste or appearance. 3.Good intentions in dealing with one another amongst the stakeholders (shareholders, suppliers, employees, franchisees, dealers and consumers) breed (or yield) good products and services. 4. Our vision is to become a national cake company with one thousand Monginis cake shops through forty manufacturing franchisee units spread over the metrocities of India.
  • 29. 29 Values Monginis follows a simple "doughnut principle" whereby the customer remains that valued creamy centre around whose satisfaction all activity revolves. 1. We shall make products, keeping in mind the feelings of the end consumer in mind, be it son, daughter, father, mother and make the products with the same love and affection as it were made for a family member. We strongly believe thatgood intentions breed good products. 2. Value for money: We shall offer consistently value for money products. 3. Fairness: We shall be fair in all dealings with the stake holders (shareholders, suppliers, employees, franchisees, dealers, consumers). 4. Monginis shall constantly strive to build strong relationships based on understanding each other and mutual cooperation; 5. We shall value and respect the contribution of all Monginites from workers to senior level managers, suppliers, service providers, franchisees and dealers. 6. Excellence: We shall constantly innovate and maintain excellence in our day-to- day work and in the quality of the goods and services we provide.
  • 30. 30 Privacy Policy Monginis Foods Pvt. Ltd. does not sell, trade, or rent our personal information. 1. When Monginis Foods Pvt. Ltd. uses other agents, contractors, corporations or business partners to perform services on its behalf or as part of a joint promotion, Monginis Foods Pvt. Ltd. will ensure that this entity protects the user's personal information in a manner, which is consistent with the aforementioned statement. 2. Monginis Foods Pvt. Ltd. may provide aggregate statistics about their customers, sales, traffic patterns and elated site information to reputableagents. 3. Contractors, corporations or business partners, but these statistics willinclude no personally identifying information. 4. An industry standard for encryption over the Internet, to protect the Data. When we type in sensitive information such as credit card details, it will be automatically converted into codes before being securely dispatched over theInternet. 5. If we make an online booking with Monginis Foods Pvt. Ltd., they will record our personal details. Our data may be used for the following purposes: accounting, billingandaudit, credit orotherpaymentcard verification, security, administrative and legal purposes, systems testing,maintenance and development, customer relations and to help them in anyfuturedealingswithus, for example by identifying our requirements andpreferences.
  • 31. 31 QUALITY ISO 22000: 2005 Food safety management system certified organization. Monginis Foods Pvt. Ltd is now an ISO 22000: 2005 food safety management system certified organization. We were certified by SAI GLOBAL, and the registration covers production and supply of cakes, pastries, cookies, chocolates and savories. Monginis Foods Pvt. Ltd has a well devised food safety policy which penetrates to the root level and ensures food safety and security to the customers. Monginis was awarded HACCP certification in 2005.
  • 32. 32 Terms and Conditions 1. Product price mentioned is inclusive of delivery charges, local taxes and transaction fees. Hence, no additional charges are applicable to the product. 2. Orders are accepted from around the world, for deliveries only in select cities of India. 3. Lead time for deliveries is 3 working days. 4. All deliveries will be executed between 12 noon - 6 pm. 5. Unavailability of the recipient, for any reason will be treated as cake delivered. 6. There will not be any refund of money in case of incorrect recipient's shipping address / telephone number. 7. On account of unforeseen circumstances like floods / natural calamity / etc. The delivery service may be withdrawn. 8. We deliver cakes only in our defined cities shown in the store locator. 9. All cakes are delivered in boxes, along with a gift card for personalized messages.
  • 33. 33 FESTIVE OCCASION AND IMPORTANT DAYS  Birthdays and Anniversaries  Festivals  Friendship Day Monginis has something to offer for every important day in a person‘s life. People trust Monginis whenever they think of gifting cakes to their near and dear ones for their birthdays, anniversaries, house warming ceremony or for any other occasion like Rakshabandhan, Bhaidooj, Christmas, Sankranti, Easter, Holi, Fathers Day, Mother’s Day, Friendship Day, Teachers Day, Children‘s Day, Valentine‘s Day, New Year Day, etc. You just name the occasion and Monginis will give you the signal “Go Ahead Celebrate”. Every state in India is famous for its festivals it celebrates. Ahmedabad is also called Karnavati and Amdavad. Ahmedabad is famous for its diversified culture and various festivals such as Uttrayan (Festival of Kites), Navaratri (Festival of RasGarba), and Rathyatra (Festival of Lord Jagannath). Looking at the speed at which the city was progressing, Monginis felt a need to be present there and began its operations in the year 2003. Today Monginis has 17 exclusive cake shops in Ahmedabad. In the city of Ahmedabad cake shop of Monginis means a treasure of cakes made with exotic flavours, variety of shapeand in different sizes. Fifteen million people live in Mumbai - industrialists, film-stars, artists, workers, teachers and clerks - all living cheek-by-jowl in soaring skyscrapers and sprawling slums. They come from diverse ethnic backgrounds and speak over a dozen tongues, adding colour, flavour and texture to the Great Mumbai Melting Pot. Mumbai a commercial capital of India is also home to Monginis. Monginis has 180 exclusive cake shops in Mumbai alone spread across the length and breadth and covering virtually every part of the city. Birthdays and Anniversaries
  • 34. 34 These important days are celebrated by each and every one with great excitement and enthusiasm. People never stop celebrating, especially birthdays. It‘s once in a year occasion, which no one wants to skip. The joy of sharing happiness issimply irresistible. Monginis have come up with the widest variety of birthday cakes. Wedding is one of the most important days of one's life and cakes have become an integral part of this joyous celebration. Special wedding cakes, like the ones in the wedding cake special range by Monginis, make the occasion even more special. Monginis, a leader in Cakes offers wedding cakes like bashful blush; Indian wedding theme; Lilac cascade and ecstasy in ivory. These are the most popular wedding cake variants which can be customized as per the customer‘s requirement.
  • 35. 35 Festivals Festivals like Christmas, Easter, and RakshaBandhan are incomplete without sweetness. To make such festivals more delightful and add sweetness to such days Monginis is always the right choice. Cakes in various shapes and designs forexample Santa Claus cake, X‘mas Tree cake for Christmas; Easter egg shape forEaster celebrations, Rakhi shaped cake showing a feeling of warmth between a brother-sister relationship. Friendship Day Human beings flock together and have always valued the importance of friends in their lives. To celebrate this noble feeling it was deemed fit to have a day dedicated to friends and friendship. This beautiful idea of celebrating Friendship Day was joyfully accepted by Monginis. This Friendship Day, share the sweetness of your friendship with the latest range of Cakes especially designed for this memorable occasion. Monginis has introduced Rose for a Friend Cake‘. Throughout the year, you & your friends haveshared a lot of special moments; you‘ve laughed together, cried together, had bothgood times & bad; so go ahead & celebrate this day.
  • 36. 36 Marketing Mix of Monginis 1. Product: Monginis has wide range of products; their main product being fresh cakes for all occasions. Monginis also has chocolates, pastry and cake and chocolates combo in their product line. It also sells packaged cakes which are available at their stores and also at other retail stores. Monginis also has different kind of breads and a variety of snacks for dine-in customers in veg and non- veg variety. It has also started home deliveries and online bookingand gifting system. PRODUCTS Personalised Birthday Cakes/Pastries and more:
  • 37. 37 Every area has a new hangout, a cake shop! The cake shops differ in variety, quality, price and more. The oldest known brand of cakes is Monginis. Thisis brand which owns the maximum number of outlets in the city. Some of the flavours of Monginis include: Black Forest, Dutch truffle, Butterscotch and Pineapple are some of the popular choices. The range starts from Rs.150 for half kilo cakes and so on. There are a variety of cakes one could choose from for their kid’s special day. To mention a few cakes, of fancy shapes like alphabets, numerals and cartoons. The other famous cake shops are Ribbons &Ballons,Merwans, Birdys, Cakes & More, Croissants and more. The cakes can range from a minimum of Rs.150/ and go up till an approximate of Rs.1500 too. A kilo of blueberrycheesecake is a total hit the season. For kids, cartoon characters like Mr.Bean, Doremon, Ben10 etc are charged somewhere in the same figures. They have the most delicious array of cream cakes, fresh fruit cakes and a variety of fancy cartoon-shaped cakes. At Rs.400 a kilo for the fancy cakes, it definitely is value for money. The new fantasies of personalised cakes are 'Photo Cakes'. An imprint of the image of your loved ones or your child on the cake is a hit amongst children. These could range of an approximate Rs.500 a kilo. Check out the list of cake shops below to know more and block it for your love, your child!
  • 38. 38 Party Preparations/Kid's Birthday Party Requirements/Event Organisers: So for the perfect look now! Most of the gift shops or even kirana stores sell the stack of streamers, balloons etc. It is a big NO-NO to buy from them. Reason being there are various stores now who would sell you cost qualitative products. It would be wiser to choose from thier lot and plan a wholesome birthday for your little one. Party Hunterzz, a store in Mumbai is famous for the entire elegant as well as wicked shopping decor you would need for a birthday. For a teenager's neon theme party you would find ample variety of neon glasses, light tiaras, badges with beam lights etc. The Party Shop at Crawford Market is a good deal to buy the stuff too. It is like a one stop shop for your party needs. The place a variety of balloons, streamers, face masks , party caps and birthday banners, disposable plates and glasses, birthday candles and paper napkins. Party decor is one the most required item in a birthday, unless people like us suggest you to go for personlised theme event birthday organisers. Mentioned below are some of the best ones who organise birthdays from the range of Rs.3000 to a whooping of Rs. 2.5 lakhs! So bacha parties look out for them and suggest your mummas and papas to hire them. For parents, get rid of the event planning tension and be at ease at your little naughty one's birthday!
  • 39. 39 Return Gifts/Memorable: Some of the most replicated gifts like tiffin boxes, piggy banks, stationery kits, puzzles, pencil pouches and much more! There are so many other articles like play art, shopping vouchers,funskool gifts, monopoly, chart area and other board games which With the mind boggling range available in the market, it is indeed very difficult to choose the perfect return gift for your little one’s special guests. The best thing is to buy in bulk! The Party Shop in Crawford Market, offers many return gift options like fancy pencil sets (Rs.10-20), crayons / paint sets (Rs.35-80), water bottles (Rs.90 onwards) and wrist watches (Rs.95 onwards) and so on. Premsons Bazaar also offers a variety at competitive rates. Pick up fancy straws, funny glasses, puzzles, pouches, slings bags between price ranges of Rs. 35-200. For teenagers, personalised mugs, photo-frames, T-shirts etc are an added delight for the youth gifting. Though, these are well recieved here than given by teenagers as return gifts. It would be too kiddish right chicas? So either way considers the options for gifting. These gifts range between Rs.100 and Rs.200.
  • 40. 40 Monginis Products At A Glance Monginis sells itself as "The Cake Shop ", producing ready-made as well as order-made cakes for catering and carry-out. Individual cake slices are also kept in Monginis stores for dine-in customers. Be it chocolate cakes or cakes in general, Monginis has mastered the art of making cakes over a period of time. A specialist in making cakes begins right from selecting right quality ingredients in precise quantities, blending them together to the best of knowledge and baking to the level of perfection. The soft and moist sponge so made is then sumptuously layered and coated with cream flavored with dark chocolate or milk chocolate or with various fruit flavours. The chain sells both Indian and Western savouriesincluding samosas, cutlets, puffs 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 duringDiwali, Christmas, Easter, EID and other festivals. Fast food Snacks include more than 50 items like Burgers, Pizzas, Patties, Cornato (bread cone with garlic chicken), Cornizza (veg version), Hotdog & so on. Monginis produce more than 30 different gateaux primarily in round, square and heart shape both in egg and eggless category. Monginis has cakes in regular, premium and super premium segments in which Black forest, truffle Dutch premium Shimmer and premium Zanzibar are most popular cake family among customers. 2. Price Price of Monginis cakes is reasonable as compared to its competitors. The prices of cakes vary on their size. On an average a half kg cake would cost something around 200 and it goes up to a 1000 depending on the size and the flavor.
  • 41. 41 3.Place Monginis cake shop is present in 12 major cities in India. It has around500 retail outlets or franchise all over India. All the cities have a production unit from which the goods are supplied daily. Goods which are unsold are taken back by the company and are given away in charity if in consumable condition or else destroyed. Manufacturing Franchisee Network CITY YearofEstablishment No. ofCake Shops Mumbai 1972 165 Kolkata 1991 115 Pune 1995 48 Hyderabad 1996 7 Rajkot 1998 10 Nasik 1999 10 Goa 2000 29 Baroda 2000 24 Ahmadabad 2003 19 Surat 2004 14 Orissa 2005 5 Now Monginis, after launching its 4th successful Bake Shop in Hyderabad is all set to open the same in other cities. In the Bake Shop, customers will be able to view freshly baked products coming out of the oven and cakes decorated in their presence.
  • 42. 42 4. Promotion: Monginis has used media such as TV, print, web, hoardings, etc. to advertise its products. It regularly comes out with offers on festive occasions. Recently to promote its cakes and chocolates it came out with a range of a special cakes and chocolates for all those SSC (Xth Standard) students who passed out this year. It has also planned for chocolate baskets for the boys and girls. The successful boys can be gifted with a blue coloured basket filled with assorted chocolates and decorated with a Doll (Boy). And, similarly the girls can be gifted with a pink coloured basket filled with assorted chocolates anddecorated with a Doll (Girl). BRAND MONGINIS Monginis is a leading brand of cakes in India. Generations have grown celebrating their birthdays with Monginis cakes and thus it has become synonymous with the Cakes. Making cakes is an art which Monginis has acquired over a long period of time but converting it into a viable business model was an icing on thecake. Today, brand Monginis stands tall on certain basic values like – consistentquality, continuous innovation, value-for-money offerings and availability closest to the consumers.
  • 43. 43 At Monginis follows a principleofcreatingbrand ambassadors. Brandambassadors are not the celebrities who advertise the brand for money but common people who after experiencing its products get satisfied and share their experiences with their near and dear ones. Product innovation is a hallmark of Monginis. In this ever-changing world, the Cake designs, flavours and recipes keep changing. Monginis has a strong product development team which keeps a tab on the current trends and keeps making necessary alterations or develops new products altogether. A tight control over the costs without letting the quality deteriorate is a skill acquired by the management team of Monginis through its experience of over 25+ years. The cost advantage gained is then translated in the form of valuefor moneyproducts for the end consumers. Both physical and psychological accessibility for the consumers comes to a brand after years of hard work and personal attention. And Monginis strongly believes that the consumer should reach to its products without much effort and he /she should feel comfortable while entering and dealing in its shops. Monginissales staff is adequately trained in such a way that they not only
  • 44. 44 sell the products but also make the consumers comfortable. They also do a considerable missionary work of educating the consumers on cakes. "Most Admired Retail Food Chain - Metros" Awards 2009-2010 Monginis wins Award "Most Admired Retail Food Chain - Metros" By Shoppers Consumer Insights Retail Asia Congress 2009-2010. Award Received by Mr. KumailKhorakiwala - Joint MD Monginis Foods Pvt. Ltd.
  • 45. 45 Monginis Clients Few of Our valuable and prestigious clients: 1. Indian Railways 2. Titan industries 3. Wipro 4. Tata Group 5. GTL 6. Pantaloon Retail India Ltd. 7. TCS 8. Alkem Laboratories 9. Tata Teleservices 10. Aditya Birla Group 11. Patni Computers 12. WNS 13. Glenmark Pharmaceuticals 14. Kores India Ltd. 15. MGL 16. CGSL – Citi Group Services Ltd. 17. Big 92.5 FM 18. Erica Pharmaceuticals 19. Saifee Hospital 20. Mahindra inter trade 21. SAMSUNG electronics 22. LG ELECTRONICS 23. ICICI prudential life insurance 24. Life style international
  • 46. 46
  • 47. 47 LOGISTICS MANAGEMENT Logistics is the management of the flow of goods, information and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involvesthe integrationof information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility. Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements. The backbone of any business is logistics. Monginis receives orders from the retail shops in the night a day before and all the products are manufactured throughout the night and the shops are supplied through company vans by early morning. All the products need to be delivered within a span of 1 – 3 hours’ time andthey follow the rule ferociously. All their vans are insulated and even carry insulatedshippers. Some of the vans are refrigerated, which ply on the long routes. A single van generally covers 3 to 4 Monginis shops‘orders so that they can deliver the orders on time without any delays. They have a set of guidelines for logistics and their staff in the shops. They are well trained on these aspects and these guidelines are strictly followed. They also conductsurprise audits, just to ensure that the quality of the supply chain is maintained.
  • 48. 48 ORDERING SYSTEM As mentioned in the earlier topic of logistics about when the retail shops place their orders for the next day it is equally important to know how their ordering system functions. Initially Monginis retail shops had to follow the telephonic ordering system. In this method they were provided a telephone help line number. The head of the retail shop have a checklist of items which contained all the items which Monginis prepares. The person has to place orders in different categories of cakes, pastries, savories, and namkeens etc. as per their requirements for the next day. This required manual efforts and was very time consuming method of order placing as the person has to name each and every item he requires. Also there were chances of mistakes being committed because of certain communication barriers which could lead to losses both to the bakery and the retail shop. To replace this method they came up with the fax system for placing orders. The fax system of placing order was practiced for a long period when the need for more innovation wasrequired now with increasing use of technology and innovation in every sector, Monginis has also come with a modern method for placing orders called as E-orderin, this method involves placing orders through net. It involves use of the most popular and appreciated way of communication that is internet. This method can be much relied upon for quick placements of orders and does not involve any tedious task. Under this method, every Monginis retail shop has to load a Dealer Software provided by Monginis in their computers. This software provides all the necessary facilities for placing order like for example the time of order, any particular shape for a cake, proper weights available in each category etc. A proper diagrammatic representation of how E-ordering functions is shown inthe file presented separately.
  • 49. 49 TRAINING SESSIONS AND MONGINIS ANNUAL MEET Training sessions  Annual get-to-gather Training Sessions Monginis known for its excellent services with which it treats all its customers is the result of the excellent training sessions that are regularly conducted by Monginis for both the owners as well as the staff that is appointed by them. These sessions take place in the form of presentations by head of departments or senior manager or by any important person holding an authority at a higher position. The person owing a Monginis franchisee is expected to attend the meetings and seminars regularly as and when scheduled by Monginis so as to improvise their service quality and attract more and more customers and satisfy them in order to turn customerretention into customer loyalty towards their products. The training needs more of onthejob training which is provided in their model shops, where most of their successful franchisees train the new franchisees. Monginis sales team provides directions throughout the training programme and keeps providing additional inputs wherever required. Apart from extensive training to franchisees before the shop opens, they also provide a lot of support after the shop opens till it stabilizes, in terms of operations. They are also made aware
  • 50. 50 about the rising competition in Bakery line and how they can come up with innovative ways and ideas of displaying their products. The owner of the shop wishes to see his staff working the same way and with same dedication as he works to earn profit. Sales staffs are given training through regular sales programmes about how to display the products well, how to sell the product and also simultaneously make advertisement for their other products. For eg: when a staff member is selling a cake to a customer he should also ask or advertise or convince the customer to buy candles or a knife with it. The basic aim of these trainingis to develop communication skills of the staff in order to sell the products to thecustomers with respect and politeness. Monginis Annual Meet/Celebration Monginis holds an Annual Meet or Celebration Party every year during the period of March or April in which it invites all the dealers of Monginis of that particular city where the party is held. The main objective of this get-to-gather is to bring all the dealers close to each other, know each other well, so that Monginis can function as one big united family. The party usually starts in the evening. Different varieties, shapes, weights of cakes of various designs or characters are displayed for the dealers to take a look at those as they arrive at the party. New variations, introductions in savouries and cakes are informed to the dealers, introduced by the Monginis bakery. Dealers are also given samples to taste and suggestions are expected from them. This is followed by a small conference meeting by the dealers, head of departments and the top management of Monginis in which important discussions are made. It also consistsof the growth report about Monginis as a whole.
  • 51. 51 Why should one select a Monginis Franchise?  On selecting a Monginis franchisee one becomes the immediate beneficiary of trademark and goodwill associated with them and acquired over more than 35 years.  Guidelines on various aspects for starting a Franchisee manufacturing unit including site selection, estimation of project cost, infrastructural requirements, related government formalities, parameters for assessing the potential of business in the area etc.  Minimum risk in the selection of right machinery and equipments with proper installation and start up.  Assistance and time to time guidance in the stage wise completion of franchise unit.  Popularity of brand ensures short lead time and good sales response from day one.  Complete guidance regardingopening of franchise shops, like selection of location, shop infrastructure, internal decor, training of dealer salespersons etc.  Access to new formulations, product recipe, specifications, expansion programs, operational manuals etc.  Initial training provided at the Monginis Headquarters in the areas of – Finance,  Taxation, Systems Sales skills of your Field Staff Shop sales skills and shop management  Training in Production Processes on the shop floor.  Training on the job extends even after unit starts operations, with key company persons remaining there to weed out the teething problems and assist you inensuring quality standard.
  • 52. 52 MONGINIS SEEKS FRANCHISE A Monginis franchise in Galleria Mall of Hiranandani Gardens, Powai. Monginis, a Mumbai based leading bakery chain, is all set to open 50 new outlets via the franchise route by the end of 2010. The company also plans to double its retail distribution from the current retail network of 15,000 stores across the country.As told to Abha Garyali of Franchise India Holdings Limited (FIHL) by Virendra Ghole, Marketing Head, Monginis, We have set a target of adding 50more shops by the end of this year, to our current number of 558 shops in 38 cities.
  • 53. 53 Analysis Report There was a mixed reaction of the people as per their variant choices but as per my analysis I found that majority of the people were eager about Monginis coming up with some kind of Health Drink may be fruit juices etc. Other category that was focused upon was Sugar-free products for diabetic people. Some other choices mentioned by people surveyed were more varieties in Savories, Macaroni products, French Fries and White and Brown Breads. CUSTOMER RELATIONSHIP MANAGEMENT
  • 54. 54 What kind of “Gifting Programmes” Monginis can handle? 1. Monginis can create a special bonding between you and your Customers / Clients. 2. Monginis can cater to your “Shareholders” and win them over.
  • 55. 55 3. Monginis can also help you in keeping your Employees happy. 4. Monginis can also handle the prestigious Corporate Special occasions.
  • 56. 56 CHAPTER 5 CONCLUSION AND SUGGESTIONS Finally from the project I have got a complete idea about Monginis and how well it has been successful in maintaining its hold on this tough market competition. Every business in today‘s market situation is surrounded by number of challenges and competitors but how a company deals with them is very important. Even while facing tough competition Monginis is able to maintain its product‘s prices to affordable level is a major achievement. Thus Monginis punch-line rightly says, “Go Ahead Celebrate…”
  • 57. 57 WEBILOGRAPHY  www.monginis.net  www.marketing91.com  news.franchiseindia.com  www.franchisebusiness.in  bakerybazar.blogspot.com  http://www.monginis.net  http://yummycakes.blogspot.com BILIOGRAPHY 1.Mary Berry's Ultimate CakeBook by merry berry,2006
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