Analysis of Product Perception and Purchase Intention at a Local Bakery. For sample a bakery in RDC area of Ghaziabad was selected for the study.

1. Product Perception and Purchase Intention at
Local Bakery (Madurima Confectionary)
Tushar Sharma- IMT Ghaziabad

2. Madurima Confectionary

3. Current Market Scenario-Bakery Industry
•INR 1500 Bn(2015)
•Growing at 12%-15% CAGR
•Biscuits & Breads are the major Bakery products and they account for 78% of all bakery
Market Size and Segment
•About 65% belong to the unorganized sector
•Dominated by small scale sector with an estimated 50000 small medium size producers.
•Few major players in organized sector
Nature of Industry
•The per capita consumption of bakery product is low (1.75 kg for bread and .9 kg for biscuits)
•Bakery products are not viewed as luxury tea time snacks but as an essential daily food
component.
•Organized players trying to shift towards health conscious products.
Consumption Pattern

4. Cont.…
Biscuits, 51,
51%
Breads, 27, 27%
Cakes &
Pastries, 8, 8%
Others, 14, 14%
Industry Segment
Biscuits Breads Cakes & Pastries Others
Industry Segment
% in Unorganized
Sector
Biscuits 50
Breads 85
Pastries , cakes,
buns and rusks 90

5. INDUSTRY STRUCTURE
Bakery Industry
Organized
Large Mfg.
(Parle & Britania)
Medium Mfg
(Cremica,Morginis)
Small Mgf.
(Dalmia etc.)
Unorganized
Small Bakery Units
Cottage and
Household Type
Mgf.
Kirana Stores

6. Key Bakery Industry Drivers

7. SWOT Analysis
STRENGTHS
1. Abundant raw material
2. Part of a bigger pie
3. Low Capital Requirements
WEAKNESS
1. Large share of un-organized players
2. Dependence on one major raw material
3. Sensitive to commodity price fluctuations
4. Fragmented Cold Chain Supply
OPPORTUNITIES
1. Food Retailing in India
2. Growing Consumption of biscuits
3. Bakery potential in Rural India
4. Expanding attractiveness of coffee bars
5. Bakery Café
6. Exploding Middle class
THREATS
1. Rising Prices
2. Technology Up gradation
3. Scarcity of Skilled Human Resource
SWOT

8. STP Analysis
Segment
• People who need and consume bakery products
Target
• Middle and upper class families
Positioning
• Amongst healthy biscuits, bakery and dairy products

9. Competitors

10. MARKETING STRATEGIES IN UNORGANIZED
SECTOR
1
• Local & Personalized Marketing
2
• Value Proposition offered is freshly baked products
3
• It’s a brand in itself
4
• Offer wide price range
5
• Discounts & Offers
6
• Specific home deliveries
7
• Bonding with customers

11. Research Analysis
Number of respondents
(consumers)
21
Number of respondents (retailers) 1
Survey Location Madurima Bakers : 146/3, Nai
Basti, Old Munsfi Rd, Ghantaghar,
Naya Ganj, Ghaziabad, Uttar
Pradesh 201001
Data Collection and Analysis -Sample Size

12. • Most of the participants in this research were females (54%)
living in Ghaziabad (62.5%). With regard to marital status, 63.2%
of the participants were single, 36% were married, and 0.8%
were divorced. Slightly more than half (50.5%) of the
respondents were between the ages of 19-25 years. In addition,
most of them (70.3%) were students. The greatest level of
income per month (35.3%) was between INR 15000-25000.
Demographic Analysis

13. Findings
0
5
10
15
<18 19- 25 26 - 35 35>
Age
0
2
4
6
8
Below Rs 10.000 Rs 10.000-below
Rs 15.000
Rs 15.000-below
Rs 25.000
Rs 25.000-above
Income

14. 0
5
10
15
<100 100-200 200-500 >500
Spending
0
5
10
15
Bakery Store Street Market Supermarket Convinience
Store
Place of Purchase

15. Conclusion
0
1
2
3
4
5
6
7
8
Characterstics Servicescape Price Quality
Conclusion

16. • We examined four factors that affect bakery purchase intention:
1. Product characteristic
2. Perceived servicescape
3. Perceived price
4. Perceived quality
Result Analysis

17. • The study found that Ghaziabad consumers gave more importance to
product characteristics and price.
• The internal cues such as taste, texture, ingredients, and healthfulness
were the main factors that influence purchase intention.
• The perceived servicescape was found to have no significant influence
on perceived quality and purchase intention.
• When it comes to purchasing rusk, however, Ghaziabad customers
gave no significant importance to the environment (such as lighting,
temperature, and noise) where the rusk was sold.
Cont.…

18. • http://www.fnbnews.com/Top-News/Bakery-industry-to-grow-
at-13-15
• http://www.foodprocessingbazaar.com/articles/99-bakery-
industry-present-and-future-prospects.html
• http://www.restaurantindia.in/article/f-and-b-format/menu-
trends/How-promising-is-bakery-franchising-in-India.a240/
References