Bakery Report (interview).docx

A Project Report on “Problems faced by Cake L’Amore (Family Business)” Submitted to: Auro University, Surat, Gujarat, India

Under the Guidance of: Mr. C. V. Ramana (Assistant Professor) In partial fulfillment of the Requirements for the Degree of Master of Business Administration (MBA)

Subject: Family Business Management Offered By: Auro University, Surat Prepared by: Abhilasha Agarwal, Prachi Ranka, Ayushi Agarwal, Kanika Khurana, Dhiraj Agarwal (Block 5, Semester III, MBA 2017-1

INTRODUCTION Earlier in project 1 we found the challenges faced by the company and now in this project we will suggest a new product to the company on the basis of some models. This new product will help the company to expand in the industry and will also help in generating more revenue. It will also help them in expanding their product mix which will increase the brand value.

OBJECTIVES  To suggest 3 new products for Cake L’Amore.

RESEARCH METHODOLOGY The data collected in project 1 will be used Sample size: 1 Geographical area: Surat This is a conceptual study. We have also identified three products, out of which one will be selected on the basis of RCDCC & RCPGI model to be started by the company in order to increase profits & expand business. Tools used: 3 tools will be used in this study to select the best product.

SOURCES OF IDEAS FOR NEW PRODUCTS    

Brain storming Market demand Resources available Companies capability

WHAT COMPANY SERVES 1. 2. 3. 4. 5. 6. 7. 8. 9.

Cakes Pastries Cup cake Muffins Breads Bars Jar cake Cookies Donut

We are suggesting three new products for family business to go in new product line. out of the following three products one will be selected on the basis of RCDCC and RCPGI models marking.

NEW PRODUCTS 1. Macaroons 2. Bucket cake 3. Hanging cake

FINDINGS According to RCCDC model, hanging cake have highest marking, but if we look at the markings of RCPGI hanging cake stands second. So, if we take average of both the models hanging cake gives the highest ranking. SWOT Analysis of hanging cake compounds for more number of strengths as it is the best choice for weddings and occasions. Therefore, hanging cake will be taken into consideration. Bucket cake is innovative and a creative idea to motivate customers to buy but as people are not aware about it, due to its current presence in the market it will not lead to much increase in the sale. Macaroons is well known and has a good reputation in the market but has high number of competitors. People have now started being health conscious and macroons are much more sweet (it consist of 50% powder sugar and 50% almond powder). So, consumers will consume less.

CONCLUSIONS Hanging cake will be taken into consideration according to RCCDC Model, RCPGI Model and SWOT Analysis. Hanging wedding cakes are the perfect way to wow clients during the busy wedding season and a wonderful way for guests to remember your wedding if you’re the lucky couple. Creating a hanging wedding cake is an accomplishment in itself, but with lots of planning, sketching and research (as well as time and patience) you should have a show-stopping cake that exudes awestruck gasps from everyone around. Before you dive into such a structural demanding cake there are a few things for you to consider. First and foremost is how you’d like your cake to be suspended; from a ceiling fixture such as an actual chandelier, a rose entwined swing, gilded chain; or from a strong wrought iron stand specially made for the purpose.

RECOMMENDATIONS 1. The company should focus more on producing hanging cake. 2. They also need to focus more on capturing young people through their marketing, so that it can increase the sale of macaroons. 3. The company should focus on their weaknesses, what competitors are doing and develop new strategies and become the market leader. 4. The company should soon open a store to make consumers feel its presence in the market.

APPENDIX 2 RCCDC MODEL PRODUCT RELATIVE ADVANTAGE COMPATIBILITY COMPLEXITY DIVISIBILITY COMMUNICABILITY TOTAL

MACAROONS 3

BUCKET CAKE 5

HANGING CAKE 5

5 5 3 4 20

4 4 2 3 18

5 4 3 4 21

MACAROONS 3 4 3.5 3 3.5 17

BUCKET CAKE 4.5 5 3.5 4 3 20

HANGING CAKE 4 3 4 4 4 19

RCPGI MODELS PRODUCT RESOURCES COMPETENCE GOALS PASSION IMPACT TOTAL

SWOT ANALYSIS MACAROONS STRENGTH • WELL KNOWN • GOOD REPUTATION • HIGH QUALITY • EXPERTICE

WEAKNESS • HIGH PRICE • INTENSE IN THE SWEETNESS(IT CONSIST OF 50% POWDER SUGAR AND 50% ALMOND POWDER)

OPPORTUNITIES

THREAT

• Global awareness of the brand • With a slowdown in the developed nations’ consumer sector, find new customers nationally • find new customers nationally

• Operation cost • Competitors • Cultural differences

OPPORTUNITIES

THREATS

HANGING CAKE STRENGTH • Innovation • Creativity • Best choice for weddings & big ocassions. • High Quality

WEAKNESS • Might get destroyed in the course of transportation • Expensive & Lack of Brand Effect

• New product in the confectionary market which might attract new customers

• New entrants • Competitors

BUCKET CAKE STRENGTH • Innovations • Creativity

WEAKNESS • Risk of falling down • Less awarness • Complicated

OPPORTUNITIES • New product, so more attraction

THREATS • New entrants • Change in taste and preferences. • More health concious

THANK YOU!