1. 1
Distribution Strategy For Growth of Bakery Business In
Presented By
Prolay Ray &
Arijit Datta
09/06/14
Locality.

2. 2
INTRODUCTION
• A bakery is an establishment which produces or/and sells bread,
pastries, cakes, biscuits, cookies, etc.
• Baking is the technique of prolonged cooking of food by dry heat
acting by convections, and not by radiation, normally in an oven, but
also in hot ashes, or on hot stones.
• It is primarily used for the preparation of bread, cakes, pastries and
pies, tarts, quiches, and cookies. Such items are sometimes referred
to as "baked goods," and are sold at a bakery.
• A person who prepares baked goods as a profession is called a
Baker.
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3. AA.. EExxiissttiinngg BBaakkeerryy BBuussiinneessss IInn IInnddiiaa && PPootteennttiiaall
The Indian bakery industry is the largest among the processed
food industries. The current estimated market is about Rs 3,295
crore and is expected to cross Rs 4,308 crore by 2012.
At present, the bread & biscuit industry accounts for 82% of the
total bakery products in the country.
 At present, the annual production of bakery products which
include bread, biscuits, pastries, cakes, buns and rusk, most of
which are in the unorganised sector, is estimated to be in excess
of 3 million tonnes.
 The production of bread and biscuits in the country both in the
organised and unorganised sectors is estimated to be around 2.6
million tonnes.
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4. Of the total production of bread and biscuits, only 35% is
produced in the organised sector and the remaining is
manufactured in the unorganised sector.
Broadly, the bakery market is divided into the rural
market and the urban market. The market share is about
22.5% (rural) and 77.5% (urban) in the country.
Further, the market can be segmented into cakes, pastries
and unpackaged biscuits. and valued at Rs136 crore and Rs
1088 crore respectively
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5. 5
Per capita consumption of
1.Bread - 3kg/year
2.Biscuit - 1kg/year
55% of biscuit is consumed by rural area.
37% of consumption of bakery item is by people with
monthly income of Rs.750 and below.
At present 70% of total bakery products is prepared by
small and family scale units.
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6. BBaakkeerryy PPrroodduuccttss
The market for bakery industry is valued at Rs. 69
billion. The two major bakery products, i.e. breads and
biscuits hold for about 82 % of the market share.
Product coverage
Bread
Biscuits
Pastries
Cakes
Confectionary products
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7. BB. . Existing Distribution SSyysstteemm OOff LLooccaall BBaakkeerryy
Manufacture (Previous day 5-12 pm)
Wholesaler (3-4 am)
Retailer (5 am)
Customer( Means Every Small Tea shop Owner)
End Consumer
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8. DDuurriinngg PPrroodduuccttiioonn TTiimmee
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9. C. CCrroossss DDoocckkiinngg IInn TThhee LLooccaall BBaakkeerryy
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10. DD.. HHoorriizzoonnttaall && VVeerrttiiccaall CCoonnfflliiccttss
Channel conflict occurs when one member’s actions prevent
another channel from achieving its goal, which confirms the
inherent aspect of interdependence relationships in distribution
channel.
Horizontal Conflict:Horizontal conflicts are the conflicts
between the channel members at the same level, i.e. two or
more retailers, two or more franchisees etc. These conflicts can
offer some positive benefits to the consumers. Competition or a
price war between two dealers or retailers can be in favor of
the consumers.
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11. RReeaassoonnss bbeehhiinndd hhoorriizzoonnttaall ccoonnfflliiccttss
Price-off by one dealer / retailer can attract more customers of
other retailers.
Aggressive advertising and pricing by one dealer can affect
business of other dealers.
Extra service offered by one dealer / retailer can attract
customers of others.
Crossing the assigned territory and selling in other dealers /
retailers / franchises area.
Unethical practices or malpractices of one dealer or retailer can
affect other and spoil the brand image.
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12. Vertical conflicts
Vertical conflicts occur due to the differences in goals and
objectives, misunderstandings, and mainly due to the poor
communication
Lack of role clarity and over dependence on the manufacturers.
For e.g. Today the large retailers dominate the market and
dictate the terms. Hence there are often conflicts between these
giant retailers and the manufacturers.
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13. Mechanism Of Resolution For Conflicts
Local Customers are the boss.
The Reatilers don’t go to the others retailers option.
Very often they violet the rule.
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14. E. DDI-CDI Model
I (Prolay) live in Rural Area,I asked so many people that What Type Of
Food They Eat When they go to their Work many of People answer
like this,
Panta Vat,alu vaja,kacha lonka.
Cha,Muri.
Chire.
Muri.
I asked Them Why? Many of People answer Like This,”Babu amara
Gorib lok,kaj kore khate hy omn 4-5 takar pawruti khaya amader
saradin kaj kora somvob hya otha na,olpo vat khaleo ta onek ta pet a
thake,r babu oto sokale amara jokhn ber hoe bari thake tokhn ai gulo
amader ai dike paoyao jay na”
So I have understand that in rural are the Distance,Time,and Money is
Matter.
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15. F. Packaging & Branding
Packaging should provide the correct environmental conditions for food
starting from the time food is packed through to its consumption. A good
package should therefore perform the following functions:
·it should provide a barrier against dirt and other contaminants thus keeping
the product clean
·it should prevent losses. For example, packages should be securely closed
to prevent leakage
·it should protect food against physical and chemical damage. For example
the harmful effects of air, light, insects, and rodents. Each product will have
its own needs
· the package design should provide protection and convenience in handling
and transport during distribution and marketing
·it should help the customers to identify the food and instruct them how to
use it correctly
·it should persuade the consumer to purchase the food.
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16. G. Reverse Logististicks to Overcome
They Sold The Pawruti And Biskit To The Chop Shop.
They sold to the Small Restaurants.
They Use as their Fuel.
They Sold to the Fisher Man.
They Also Made Toste Biskit From That Pawruti.
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17. WEAKNESS
Lack of financial support.
High cost of equipment.
Lack of availability of trained persons.
Low shelf life of bakery products.
Irregularity in power supply.
Very less organized bakery firm at big level so less
business professional .
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18. PROSPECTS
Increasing dependence on bakery products.
Use of sophisticated and modern machineries which
increases bakery efficiency.
High quality packaging material increases shelf life of
product.
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19. CONCLUSSION
Due to changing consumption pattern there is lot of scope
for bakery industry.
Due to modernization and industrialization demand for
bakery has increased.
Good opportunity to emerge as a national brand.
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