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Pink’s Doughnut HolesTim Jones, Ali Jones, Jessica Korneff, Emre Ergun, Ma Nan
Desire for western goods
Growing middle class
They enjoy sweet food
Snacks are finger food
Building on traditional Indian experiences
Coffee Shops
Barista
Cafe Coffee Day
Grocery Stores
Big Bazaar
Food Bazaar
Reliance
Roll out process
Challenge: 40% of population is vegetarian
Solution: Sunflower oil
Challenge: 30% of population doesn’t consume eggs
Solution: Egg substitute
Challenge: Higher rate of low income population
Solution: smaller doughnuts, less cost
Challenge: Increasing competitive landscape (Dunkin’ Donuts)
Solution: Our product will be more available, and our product will be placed in already popular locations.
Similar in taste and look to popular Indian snacks: Gulab Jamun
Enhancing the growing coffee culture
Portrayed as premium snack food, while keeping it affordable
Desire premium products
It adds to their perception of Western culture
Colorful and unique
American flavors
Traditional Indian flavors
Presented on a plate, or
Packaged
Product: Doughnut Holes, creative and unique to spark interest
Price: Two for $1, 44.4 Rupees
Place: Cafe Coffee Day, Barista, Big Bazaar, Food Bazaar, Reliance
Promotion:
Colorful billboards
Professional posters
Word-of-mouth
Sales promotions for the first few weeks.
Unique and environmental friendly packaging
Local Snack Food
Murukku (top)
Various Indian sweets(lower left)
Typical Coffee Shop
Muffins
Regular sized doughnuts: Only one option provided, the Choco Doughnut(lower right)
People ages 16-22
Fun, unique, American snack food
Young professionals
Quick, on the go, likely to utilize packaging
Family experience
Sweet food for the kids, and parents will enjoy
Form a joint venture: Bakeman’s Industries Limited
65% vs. 35% equity
What are we providing in this partnership?
Brand
Reputation
Recipe and Ingredient Contracts
Money
What are they providing in this partnership?
Production and distribution of our product
Legal:
Essential Non-Compete Clause
Joint Ventures are preferred form of FDI; there are no separate laws, treated as domestic companies
HR Plan:
Polycentric Staffing Policy: One U.S. manager oversees the project and hire local sales rep to market our product to possible partner chains
Biscuit Flour: Satara Roller Flour Mills Ltd., located in Maharashtra
Sugar: Shikha International, located in New Delhi
Sunflower Oil: Godrej, located in Maharashtra
Utilize Bakeman’s strong distribution centers to get product to end consumer
Bakeman’s distributes their products to the local distribution channels of the two coffee shops and three grocery stores
Goal is to get product to local distribution centers where the stores would otherwise be collecting products from
Targeting Coffee Shops: consumption and production of coffee is increasing by 61.5% out to 2015
Coffee Chains are growing in India, with an increased interest from foreign investors
Growth in food consumption
Confectionery sector has long-term growth potential, 72.8% out to 2015
2010 2011 2012 2013 2014 2015
Coffee Production ‘000 60 kg bags
4,793.48e
5,141.38f 5,242.89f 5,356.49f 5,495.27f 5,639.89f
Coffee Consumption ‘000 60 kg bags
1,731.51e
1,863.10f 2,020.49f 2,198.51f 2,403.86f 2,618.46f
e: BMI estimates, f: BMI forecastsSources: India Coffee Board, BMI
Every sector is increasing steadily out to 2015
Original price=0.5/donut hole
Price and cost change subject to a 16% annual inflation rate
Expecting fix cost for 2012 is $104,960
Expecting sales for first quarter is 84,000 units, quarterly sales growth rate implemented is 5%
Expecting Quarter Sales and Breakeven
Q1 Q2 Q3 Q4 Annual
Sales $42,000.00 $45,423.00 $49,124.97 $53,128.39 $189,676.36
Profit $3,760.00 $8,327.25 $11,103.73 $14,106.29 $37,297.27
Expecting Quarter Sales and Profit
Conclusion