4th Chapter

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CHAPTER 1: EXECUTIVE SUMMARY

The project titled Store management was assigned to us in one of the stores of D aily bread, a

subsidiary of Britannia. The project was to manage the operations of the complete store which

includes purchase of raw materials, kitchen management, customer satisfaction, Employees

management, promotional activities to increase the profit of the store. The objectives of the

project was to mainly reduce the cost and to improve the overall efficiency of the store. The

project also included CRM( Customer Relationship management ) and Quality Management

along with the store management.

We were asked to observe the existing process for the first three weeks and then implement

and suggest new techniques which would be beneficial for the company financially. There are

totally 23 branches of Daily bread in the city. So, for the observation, we were asked to visit

each branch for three days each and analyze the difference in operations and their variations.


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CHAPTER-2 INTRODUCTION

The main objectives of store management are to maintain and improve the several activities

which takes place in the store. As a store manager we were first asked to observe and note

down the activities of the employees, their performance, the way they behave to the

customers, the method of cost reduction and the profit obtained by the store. We learnt about

the orders by the customers which are customized, the time taken to deliver the orders.

Generally, in the outlets the orders are minimum and the labor required is less. Mostly the

orders are cakes for birthdays and anniversaries.

We were sent to the factory in the second week of the internship to gain knowledge about the

mass production systems. In the factory the orders are in huge amount. The factory is of threefloors. The ground floor is assigned for the production of buns which is specifically

manufactured for KFC. The ground floor is further divided into three areas such as dough

making area, baking area which consists of 4 big baking ovens and a packing and dispatching

area. The first floor consists of a call center, where customers can call and place their orders

directly to the factory for home delivery. The cal centre is also used to clear all the enquiries of

the customers.

The second floor has the bakery and the cookies section. The floor is centralized air conditioned

in order to avoid the effect of high temperature. There are two refrigerated rooms to keep the

prepared items until delivery time. The third floor is allotted for the production of choco lava

cake and moose which are delivered to Dominos.

We worked in each section for 2 days and gained knowledge about the mass production

systems and on time delivery to the customers. The orders are given on daily basis by kfc and

dominos to the factory and the items are dispatched daily by 2.00 pm to the respectivedestinations. The raw materials are stocked in a stock room and used based on FIFO( first in-

first out ) method. During the internship period we were also asked to go to different outlets,

analyze the store performance and submit graphical reports to show their performance.


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2.1INDUSTRY OVERVIEW

India is the second largest producer of food and holds the potential to be the biggest on global

food and agriculture canvas, according to a survey conducted. The food industry is mainly

divided into restaurant and bakery industry. In India, the food processing industry is the largest

and profitable industry. It is ranked fifth in terms of production, consumption, export and

expected growth. The industry can be further classified into food processing and food storage.

By 2015, the Indian food industry is projected to reach $300 billion. Several segments are

included in the food processing industry.

Fruits

Meat & poultry

Dairy

Marine products, grains and consumer foods

Daily bread comes under the bakery industry as well as the restaurant industry .It has high

quality products with on time delivery. There are about 50000 small and medium-size

producers in the Indian bakery industry and also includes 15 organizational sectors. The main

advantage of this industry is its nature, ease of penetration to the local markets and the wide

dispersion of the government policies.

The major bakery products are considered to be Biscuits and breads as they are used in almost

82% of the production of the products. There are two sectors in the bakery industry: organized

sector and un-organized sector. Here, the unorganized sector accounts for about half of the

total biscuit production, 85% of the total bread production and 90% of the other bakery

products. Pastries, Cakes, Buns, Rusks comes under the category of bakery products.

Biscuits play a major role in the bakery industry and it accounts of 75% of the bakery industry.

. While the unorganized sector plays a major role in the production of biscuits and bakery, the

organized sector serves the medium and premium segments, which are less price-

sensitive. So, this sector is unable to compete at the lower price range due to the excise


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advantage enjoyed by the informal sector. But It has witnessed a steady growth of about 7.5%,

broadly to the growth rate of GDP.

The total contribution of the sugar boiled confectionery market which comes under organized

sector, comprises of plain, hard-boiled candies, toffees, clairs and gums. It accounts to 50

million of the profit that the industry gains. In addition to this unorganized sector contributes

50 billion from all types of confectionery. In terms of value, the organized sector

contributes 60% of the market share.

The two main products of the bakery industry are biscuits and bread. The demand, market

structure, and the growth rates in each year is mentioned below.

BISCUITS

DEMAND: PAST AND FUTURE

The demand for the biscuits varies from year to year. The demand was 1110 tonnes in the year

2000-2001, 1188 in the year 2001-2002, 1307 tonnes in the year 2002-2003, 1444 tonnes in the

year 2003-2004, 1523 tonnes in the year 2004-2005, 1607 tonnes in the year 2005-2006, 1696

tonnes in 2006-2007, and similarly has reached the demand of 2043 tonnes in the year 2010. It

is also estimated that the future demand of biscuits in the year 2015 would reach up to 2758

tonnes. This implies the positive growth of the industry and its profitability.

MARKET STRUCTURE

Talking about the market structure, the Indian bakery industry is widely classified into

organized sector which serves the higher end customers, the unorganized sector which focuses

on the low price products. It is also classified based on the areas such as north, east, west

,south. Hence, the market share varies differs from different sectors. It is 50 % for organized

segment, 50 % for unorganized sector, 36 % for the north, 19 % for the east, 23% for the west,

and 22 % for the south.


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MARKET GROWTH RATES

The growth rate of the food industry in general is increasing day by day. And specifically the

bakery industry is increasing because of the fast moving world and the adoption of the western

culture in India. The market growth rate though doesnt constantly rise. It fluctuates. The

market growth increased to about 5.5% from the year 1991 to 1997. It was 5.8 from 1997 to

2002, 7.4% from 2002 to 2007,6.4% from 2005 to 2010 and it is estimated to be 6.2% from the

year 20010 to 2015. From the data, we can understand that the market growth rate doesnt

gradually increase every year in spite of the constant increase in the demand.

BREAD

DEMAND: PAST AND FUTURE

The demand for the bread varies from year to year. The demand was 11.90 billion in the year

2000-2001, 12.85 billion in the year 2001-2002, 13.85 in the year 2002-2003, 14.80 in the year

2003-2004, 15.85 in the year 2004-2005,16.90 billion in the year 2005-2006, 17.90 in 2006-

2007,and similarly has reached the demand of 21.10 billion in the year 2010. It is also estimated

that the future demand of biscuits in the year 2015 would reach up to 26.90 billion. This

implies the positive growth of the industry and its profitability.

MARKET STRUCTURE

Talking about the market structure, the Indian bakery industry is widely classified into

organized sector which serves the higher end customers, the unorganized sector which focuses

on the low price products. It is also classified based on the areas such as north, east, west

,south. Hence, the market share varies differs from different sectors. It is 45 % for organizedsegment,55 % for unorganized sector, 19 % for the north, 36 % for the east, 22% for the west,

and 23 % for the south.


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MARKET GROWTH RATES:

The growth rate of the food industry in general is increasing day by day. And specifically the

bakery industry is increasing because of the fast moving world and the adoption of the western

culture in india. The market growth rate though doesnt constantly rise. It fluctuates. The

market growth increased to about 5.5% from the year 1991 to 1997. It was 5.8 from 1997 to

2002, 7.4% from 2002 to 2007,6.4% from 2005 to 2010 and it is estimated to be 6.2% from the

year 20010 to 2015. From the data, we can understand that the market growth rate doesnt

gradually increase every year in spite of the constant increase in the demand.

Product Variation

Segment Share (%)

Milk Bread 85Brown Bread 10

Fruity 3

Nutritional and other specialty 2

Source: Ministry of Food Processing Industries


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2.2 Company Overview

Company Profile:

Daily bread is a subsidiary unit of Britannia Industries Ltd and it was founded in 2003. DailyBread Gourmet Foods India Private Limited was previously known as CCD Daily Bread Private

Limited. The company started commercial operations in November 2003. It then started to

manufacture a wide range of specialty breads for distribution in the supermarket chains,

private label bakery products for other coffee chains and multiplexes. It has also set up 13 of its

branded retail outlets in Bangalore. Its specialty is that, it has proprietor recipes of over 400

bakery products including Indias widest range of breads, pastries, and cakes.

Product variation in daily bread:

Daily Bread started its career in Bangalore and it manufactures and retails bakery products all

over India. The products of daily bread are

Baguettes

Rolls

Panini

Ciabattas

Multi-grain

croissants

The company also provides cakes, sundaes, desserts, floats and frappes, as well as savories,

sandwiches and salads. They also provide coupons and discounts for students and working

employees who are loyal to the brand. Products are distributed for supermarkets chains, coffee

chains and multiplexes. They also undertake corporate catering.

Daily bread as a company has now elaborated its service and sales in different areas in the

Bangalore city. It has opened 22 outlets in and around the city. All the outlets come under the

bakery industry while the store in koramangala is a bistro lounge where the customer gets to

have main course food too. They have extended their operations to other states as well such as


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Hyderabad, Goa and is planning to widen their production all over India to attain the country

largest bakery chain.

Daily Brew: A sub brand of daily bread

Daily Brew is the Beverage brand of Daily Bread Gourmet Foods India Pvt. Ltd. It was launched

in 2007. They provide an ambience that is warm and inviting. It is a great place to meet friends

for an coffee or cuppa which is a specialty product from Daily Brews premium espresso menu

.

Founders and investors

Daily Bread is founded and promoted by Mr. Arjun Sekri, an International and Investment

Advisor. Britannia, parent company of Daily Bread is a strategic investor and partner in Daily

Bread.

Daily bread has its production units in

Bangalore

Hyderabad

Goa

Mission

The mission of Daily bread is to be Indias first world class nationwide confectionery

brand, providing international range and bakery products with high quality to the

customers in the urban areas.


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Vision

To open wholesale bakeries in the top metros. To attain a position like 'Daily Bread' will be India's first national bakery brand, with the

same standards of European products.

To deliver superior value to urban Indian consumers by manufacturing products with

international standards.

To become one of the top bakery vendors in India.

To generate and maintain a huge revenue stream from fresh & frozen bakery,

confectionary & specialty food products .

Swot Analysis

SWOT analysis (also called SWOT Matrix) is a structured planning method used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business

venture. A SWOT analysis can be carried out for a product, place, industry or person.

Strengths

Brand name

Market leadership

Product variations

Many successful sub-brands and subsidiaries

Supply chain

Promotional activities

Celebrity advertising


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Weakness

Though it is a Market leader it couldnt prevent competitors to shine

Britannia brand name gives us an idea about biscuits. So, the it has problems in entering

different areas.

The company has not adopted any strategy to defend its position in the market.

Sales is not up to the expected level.

Opportunities

In India the per capita income is 2.5 kgs whereas in developed countries it is 12 kg. so

India has enormous scope for bakery products in the upcoming years.

Income of people is increased compared to the previous years which makes them

economically well off to buy several products.

Increase in the opportunities in the export areas.

Diversification

Bakery chain

Threats

Attraction of fast food by the younger generation.

Lose of importance of healthy food.

Increase in the cost of raw material like sugar, wheat, milk etc..

Decreasing in the margins of glucose market

Price sensitivity makes it difficult to fix the prices of the products.


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Increase in the customs.

Intensification of competition.

Competitor

Competitors of daily bread

Just bake

Chef bakers

The chocolate room

Competitors of Britannia

By Value By Volume

Britannia 37% 30.5%

Parle 31.3% 38.4%

Itc 6.3% 6.7%

Surya food & agro - 5%


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CHAPTER 2 PROJECT PROFILE:

A. Objectives of the study

The purpose of the study is to determine the daily bread gourmet food pvt ltd byresearching secondary data and to observe day to day operations of their retail store, by

reducing variances and increasing sales.

B.METHODOLOGY:

The projects data collection was through primary and secondary data.

C.OBSERVATION AND ANALYSIS.

OBSERVATION:-

The Internship period was from April to July. We were supposed to observe the daily

operations of the store and to point out the errors and defects in the process. The store opens

daily by 8 in the morning and it is opened till 11 in the night. There are 2 stores managers,

3staff to serve the customers and 5 kitchen staffs. The managers, staff and cooks have different

uniforms. The ambience is well maintained and neat once the store is opened, the store

Manager verifies the demand. Intensity of the previous day and orders the products from the

factory for the present day. Some products like cookies, biscuits, pastries, and bread varieties

are ordered from the factory on daily basis based on the demand of the previous day. They

have stickers of different colors each color represent particular day in a week. As soon as the

products are made or delivered from the factory, the sticker represents the day are stuck to it.

The products are kept for a day maximum for saving at the end of 2nd

day; the not-sold

products are thrown away.

The store is divided into four areas. Dining place where customers are seated, a kitchen, a store

room, a refrigerated room and a washroom a tore room, a refrigerated room and a washroom

outside the store. The dining place is fully utilized with sufficient tables and chairs, television to

entertain customers, air conditioned. And also has sofas for the comfort of the customers in the


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dining space itself, there is a partition which made for a preparation of cake and coffee machine

near the billing counter. Products are kept for display near the billing counter. There is a wash

area where all the plates and cups are sterilized after each use.

The kitchen consists of a refrigerator room which is used to store all the raw materials needed

for the production, a store room where raw materials and utensils are kept for the production,

a store room where all the raw materials needed for the production, a store room where raw

materials and utensils are kept. It also has baking ovens machines for oil fry, sandwich and two

big gas stoves.

When a customer enters into a store , he is greeted by the staffs in the store , given the menu

card . Once the order is placed ,it takes maximum 20mins for the customer to receive the food.

The work in the kitchen is divided among the 5 kitchen staffs. There are 2 main chefs who

prepares the main course .one of them cut the raw materials and the other staff will do the

garnishing part . so, the work is equally divided and it is easy for them to serve customers fast

and give them satisfaction .Each staff is allotted to a particular job.

The other important aspect of daily bread is their varieties of cakes. They have about 400 types

of luxury cakes with different flavors. They have categorized cakes into shaped cakes, fruit

cakes, luxury cakes and economical cakes. Cakes such as black forest and Dutch truffle are

baked and prepared in the store itself. While the other cakes are manufactures in the factory.

The customers can place the orders directly in the factory or in the outlets. Daily bread has

introduced an option called dial a cake to facilitate the customer. The customers can cal to

the cal centre located inside the factory to place their orders. The orders would be delivered to

the customers preferred address and time.

The raw materials which are required for the production process are gone through quality test

to ensure that they are within the standards. It would be profitable for the company certain

lean techniques in their production process as we could find many wastage in the production.

FISH BONE DIAGRAM :


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FISH BONE DIAGRAM FOR THE DECLINED SALES OF THE STORE

Employee leaving the organization

No proper

monitoringWork load on

the employees .

No proper

training.

Ego problems

among

workers

Very less

payment with

no bonus.

DECLINED SALES

UNABLE TO

COMPETE

WITH

INAVAILABILITY OF

THE ITEMS THAT

CUSTOMER PREFER

HIGH PRICE OF

THE ITEMS

NO VARIATIONS

IN THE MENU

LESS MARKETING

AND ADVERTISING

THROUGH MEDIA.

OFFERS AND

DISCOUNTS

PROVIDED LESS


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Sales analysis :

0

5000

10000

15000

20000

25000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

APRIL 2013 SALES

DATE

NET SALES

0

5000

10000

15000

20000

25000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

AxisTitle

MAY 2013 SALES


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FINDINGS

The present study is on the topic Effectiveness of store management with reference to DailyBread Gourmet Foods (P) Ltd.

The important findings of the study are:

The overall performance of Daily Bread Gourmet Foods (P) Ltd. is good. The employees

are treated well and given compensations.

The company gives importance to customer satisfaction.

The companys purchase policy of raw materials is good.

The company ensures to deliver the products to the right customers on time.

The employees interact professionally and well mannered to the customers.

Service level of the store is slow which an important factor is for customers.

Rest room facility for the customers is below average.

From the customers point of view, a variety in the food menu is very less. The

customers dont have many options to choose from.

Cakes account to the major part of the sales when compared to the other products. The sales particularly depend upon the college and the It companies in koramangala.

Customer arrival is maximum during the peak hour which is the lunch hour.

The regular customers to the store are between the age group of 18-29, most of them

working in the nearby companies.

Employee management is very poor in the company. Employees tend to leave the

company very soon as they are not getting paid well. The organization should consider

in taking this issue seriously and try their level best to retain their employees. For preparing a single cake, approximately 20% of the sponge that is required for

making the cake ,gets wasted. They should take some measures in reducing the waste

or utilize the left sponge in some other item.


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CHAPTER 4: RECOMMENDATIONS

1. The firm can increase the number of items on the menu card in order to compete with the

competitors.

2.There is a lot of food and raw material wastage in the kitchen in the process of food

preparation. The firm should minimize wastage.

3. Bulk purchasing is not always good approach because it is sometimes affected by the

variation in price.

4. The kitchen premises are not kept clean. The third S in 5S of lean management is not being

followed.

5. The company should try to increase the number of employees in each store because the

customers are not able to get their orders in time during peak hours.

6. There is no rest room facility in the stores for the customers. The firm should mainly consider

the issue.

7. The employees should be given proper training on how to behave with the customers.

8.Employee engagement programs should be considered and maintained in order to encourage

the employees to perform better.

9. Faster service to the customers is required.

10. The menu should have varieties in the food items to give customers more choices.


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CONTRIBUTIONS:

The daily bread store we worked in is located in koramangala. The main competitor of the

store is the truffles which is located near the daily bread store. The store had been facing

declining sales for the previous couple of months. So, a meeting was held by the vice president

of daily bread to all the staff members and the managers. We were asked to suggest ideas and

strategies to improve the sales. The suggestions are:

There should be variations in the menu items. While truffles have all the items from

Indian,Chinese to Italian, daily bread has only Italian in its menu.

Compared to the other competitors, daily bread has high price for its products. So,

consumers tend to go to other shops which would be economical for them.

Introduction of coupons for benefit of the the nearby college students and the IT

employees woulg bring up the sales.

Giving discounts and offers to the regular customers and the students would increase

their visits to the store.


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CHAPTER 5: CONCLUSSION

Thus, the internship program titled Store management in daily bread, a subsidiary

of Britannia helped me to gain the basic knowledge of operations. It was very useful

as I could practically visualize the difficulties and the problems in running a business.

The importance of being friendly and approaching things in a calm way, there was

procedure for each every activity which made the rules of the very good and proper.

- It was a very good organization which gave me pleasure working for them. The importance

of respecting the ideas of each and every individual was good organization behavior It was

interesting learn new things during the internship program. The organization culture was

very welcoming which gave the pleasure to learn.


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LEARNING OUTCOME:

The internship program helped me a lot in gaining more knowledge about the concepts

of operations management that I study in the class room.

It helped me in getting the practical knowledge about the processes and the procedures

that take place in an organization

I could also see the difference in the efficiency of the process when lean techniques are

used.

I learnt about the different market leaders in the bakery industry and their marketing

strategies to compete with the other competitors.

I also learnt about vendor management- how they purchase the raw matrials,on what

conditions they return it back to the vendors, etc.

It was very useful to understand the importance of employee management and

customer relationship management as it has direct impacts on the sales and profits of

the company.

I learnt on how to use the lean techniques in the daily operations of a company and its

effects on the efficiency of the process.


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Reference

www.britannia.co.in/brandstories_breadcakes.htm

www.dailybread.co.in/

www.fnbnews.com/article/detnewswww.researchandmarkets.com/reports/2041431/indian_bakery_industry_2011

_2015
http://www.britannia.co.in/brandstories_breadcakes.htmhttp://www.britannia.co.in/brandstories_breadcakes.htmhttp://www.dailybread.co.in/http://www.dailybread.co.in/http://www.fnbnews.com/article/detnewshttp://www.fnbnews.com/article/detnewshttp://www.researchandmarkets.com/reports/2041431/indian_bakery_industry_2011_2015http://www.researchandmarkets.com/reports/2041431/indian_bakery_industry_2011_2015http://www.researchandmarkets.com/reports/2041431/indian_bakery_industry_2011_2015http://www.researchandmarkets.com/reports/2041431/indian_bakery_industry_2011_2015http://www.researchandmarkets.com/reports/2041431/indian_bakery_industry_2011_2015http://www.fnbnews.com/article/detnewshttp://www.dailybread.co.in/http://www.britannia.co.in/brandstories_breadcakes.htm

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