Name: THE BREAD BAKERS

Location:
Status: Private Limited Company
Working days: 365
Production capacity: 100-breads/ day
Introduction
The proposed company plans to establish a project for baking the flavored breads
in different and unique shapes and sizes. Every bakery offers the bread, which
is milky or simple, or diet in only one usual flavor. No bakery offers the flavo
red breads so far. This company s main concern is the baking of that bread. This c
ompany will helps in enjoying the people the different flavors in different shap
es. All the relevant data has been collected from the bakeries and the market. I
ts baking process is almost identical to the baking process of the simple bread.
There s no problem in getting the required equipment as well as the material as i
t is all locally available.
The company Bread Bakers is the first company concerning with the manufacturing of
the flavored bread. It is the company, which don't only deals with the differen
t flavors of bread but also the shapes of the bread.

We are a full service providing bread bakers offering a wide variety of fresh br
eads, which have unique flavors and shapes. We have that new world style taste a
nd freshness that is all but obsolete in today's society.
Nature of business
This business is on the basis of partnership. Every partner will equally partici
pate in the activities of business. Nature of business of The Bread Bakers is to
carry out the breads such as: Flavored breads and multi shaped bread.
Mission Statement
To provide our customers with bread that actually looks and tastes good.
Vision
The building of a community within the baking industry who voluntarily come toge
ther to meet common need and accomplish common goals.
Management Plan
Partnership Deed
In this service organization there are four partners who collaborate with each o
ther. The profit deed is decided in the equal basis.
Departments
Production Department
Purchasing Department
Finance & Accounts Department
Marketing Department
Manufacturing unit Location

Our manufacturing unit is located in -------------------------------We have selected this place because the portion of factory is free so, there are
no rent charges and we have our own transportation facility so this is very fea
sible for us.
Raw Material
Following are the main raw material for the proposed project:
Flour
Yeast
Flavors
Milk
Eggs etc.
The entire raw material is locally available in abundance. There is no problem i
n collecting the raw material from the local sources.
Characteristics of the project
The project, which is being initiated in response to the market demand, will pro
duce quality breads according to the customer s needs. The product will be a new p
roduct in the market. Presently there is no such brand, which produces such flav
ored breads in unique shapes. The existing bakeries are producing the simple bre
ads but this unit will initiate a new trend in the market. These items have a ma
in emphasis on the morning time when the breads are mostly utilized. It is basic
ally for those persons who are taste conscious and look for some thing new for t
heir breakfast. This item will be distributed to all the exiting bakeries where
a separate shelve will be placed.
Distribution Channels
Bread is easily available in every bakery. As we are offering different flavors
of bread so we have decided that our distribution channels will be all existing
bakeries like China Bakery, Meer Bakery, Asim bakery, al-Meraj bakery, etc. We c
hoose these distribution channels because these bakeries already have a large nu
mber of customers they daily visit these bakeries & when they will see our produ
ct over there they would surely like to have these flavored bread, so the reason
of choosing these bakeries is that we are new in the market & we have no custom
er orientation. That s why our distribution sources are all these existing bakerie
s.
Product Profile
Main Products
As all the other existing bakeries are providing the three main types of bread s
o with the flavored breads our main emphasis will be on the same three breads wh
ich includes:
Milky bread
Simple bread
Diet bread
These introduced flavors are available in each bakery.
Bread flavors
Our bread flavors along with our brands include the following flavors
Chocolate flavored bread by Bread Bakers
Strawberry flavored bread by Bread Bakers
Vanilla flavored bread by Bread Bakers
Mango flavored bread by Bread Bakers
Pineapple flavored bread by Bread Bakers
Banana Chip flavored bread by Bread Bakers
Fruit Nut Breads by Bread Bakers
Butter Top Bread by Bread Bakers
Cheese flavored bread by Bread Bakers
Garlic flavored bread by Bread Bakers

Ginger flavored bread by Bread Bakers

Bread shapes
Our bread is not only concern with the flavors but also with the shapes of the b
read, and there are different shapes which includes :
Oval
Round
Square
Triangle
Rectangle
Long-shaped
Cone-shaped
Specialty
Most of the people don t like corners of the bread. The Bread Baker s is the first w
ho consider this need first and now introducing the corner less bread first time
in the area. Our specialty is in corner less bread in different sizes as well a
s flavors.
Future Integration
In future we, The Bread Baker s are panning to launch a new product The Stuffed Brea
d. It is new and different concept. Stuffed bread is a product in which differen
t material will be stuffed according to the choice of our customers.
Market Analysis
Market Research
Before starting any business it is important to recognize the need of customer t
hat either there is demand of particular product exists or not.
The Bread Bakers conducted the research, which shows that the flavored bread is
one of the innovations in bread industry in Gujranwala and people are willing to
use it.
Target market
The Bread Baker s are providing their products in different sizes in very reasonab
le prices. Our main emphasis is on middle-income group and higher income group.
Age Distribution
The Bread Bakers conducted the research on the basis of age sector to analyze th
at which age sector will like our bread most.
According to our research:
o Children from age of 10 to 15 years will like it 38%.
o People from the age of 15 to 22 years will like it 25%.
o People from the age of 22 to 35 years will like it 23%.
o People from the age of 35 onwards will like it 14%.
This research shows that younger are more willing to use our product.
Market Distribution
The Bread Baker s also conducted research on the basis that where they should prov
ide there product in which quantity
The research shows that we should provide our product in Satellite Town market 3
9% of our production. 30% in Model Town, 12 % in Wapda Town, 10% in People s Colon
y and 9% in Cantt area.
Strategies
PRICING STRATEGY
Penetration pricing
As we are in the initial stage so our main emphasis is to penetrate in the marke
t by capturing the market share.
There are many pricing strategies but we have to choose this penetration pricing

strategy because we are the new entrants & we want to capture a big market shar
e so we have chosen this type of strategy to penetrate in the market.
PRICES
All the existing bakeries are offering the following prices of the breads
Milky, Simple, Diet
Large Rs. 22
Small Rs.18
But we are providing the following prices of the flavored breads.
o
o
o
o
o
o
o
o
o
o
o

Fruit Nut Breads Rs. 40/Chocolate flavored bread Rs. 30/Strawberry flavored bread Rs. 30/Vanilla flavored bread Rs. 30/Mango flavored bread Rs. 30/Pineapple flavored bread Rs. 30/Cheese flavored bread Rs. 35/Garlic flavored bread Rs. 35/Ginger flavored bread Rs. 30/Butter Top Bread Rs. 30/100% Whole Wheat Bread Rs. 30/-

Entrance Strategy
The entry growth strategy for The Bread Bakers should be to focus initially and
more specially to youth and status-quo customers.
Marketing Strategy
The Bread Bakers needs a comprehensive marketing strategy based on company s philo
sophy, potential growth strategy and long-term objectives of gaining a strong ho
ld in the bread industry.
SWOT Analysis
Strengths
New product innovation in local area. So it will attract the people of local are
a.
No specific competitor.
Reasonable prices. Our bread will be easy available for lower income group also.
Easy availability. Our outlet is Meer and China and these bakeries have their ou
tlets in main parts of the city so the access to our product is very easy.
Weaknesses
o No brand recognition. Our name in baking industry is new so most of the people
are not familiar with bread bakers.
o No separate outlet. We don t have enough finance to construct our separate outle
t.
o No customer orientation in local areas. As we are newly introduce in Gujranwal
a so the customer is not oriented in the brand.
Opportunities
o First mover advantage. This product is introducing in Gujranwala for the very
first time so there is no specific competitor of bread bakers so this is an oppo
rtunity. So the number of customers with us will be more than any other competit
or in flavored bread baking industry.
Threats
o New product, may people don t accept the flavored bread
o Competitors working in Islamabad may enter in local market.

o Imitation by existing bakeries. May Meer and China try to copy it.
Financial Plan
Project fixed cost
(In rupees)
Land Already Available
Building 1,20,000
Machinery 1,00,000
Transportation/Installation 50,000
Furniture 15,000
Vehicles 2,00,000
Total 4,85,000
Total cost of production
Cost of goods sold
(In rupees)
Raw Material 60,000
Wages/Salaries 50,000
Utilities 15,000
Depreciation 20,000
Total 1,45,000
Operating cost:
(In rupees)
Administrative expanses 60,000
Selling expanses 1,20,000
Office expanses 60,000
Total 4,52,000
Financing plan
(In rupees)
Loan 10,62,000
Equity 7,08,000
Total 17,70,000
Financial charges
(in rupees)
Rate interest
Term loan 10,62,000 15% 1,59,300
Other bank charges 10,62,000 1% 10,620
Total 1,69,920
Production capacity
3600 breads of different flavors and different shapes will be produced on averag
e per year with the experienced bakers. However we are able to sell the bread cr

ums of different flavored breads.

Sources of machinery
The selection of machinery and equipments is one of the important decision, ther
e are number of Machinery Manufacturers but for this project the required machin
ery is locally available.
Breakeven Analysis
Breakeven
Breakeven analysis is a tool used to determine when a business will be able to c
over all its expenses and begin to make a profit. For the startup business it is
extremely important to know the startup costs, which provides with the informat
ion one need to generate enough sales revenue to pay the ongoing expenses relate
d to running the business.
The graphic method of analysis helps in understanding the concept of the break-e
ven point. However, the break-even point is found faster and more accurately wit
h the following formula:
Q = FC / (UP - VC)
where:
Q = Break-even Point, i.e., Units of production (Q),
FC = Fixed Costs,
VC = Variable Costs per Unit
UP = Unit Price
Break-Even Point
It is based on figures for first year, the calculation is as under:
Break-Even Point, Q = Fixed Cost / (Unit Price - Variable Unit Cost)
Break even point = 32333.3 units
The expected break even period for the company is approximately 3 years.