Pink’s Doughnut Holes Tim Jones, Ali Jones, Jessica Korneff, Emre Ergun, Ma Nan
Why India? Desire for western goods Growing middle class They enjoy sweet food Snacks are finger food Building on traditional Indian experiences
Where Can You Find Us? Coffee Shops Barista Cafe Coffee Day Grocery Stores Big Bazaar Food Bazaar Reliance Roll out process
Entry Threats 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.
Why Doughnut Holes? 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
Our Doughnut Holes Colorful and unique American flavors Traditional Indian flavors Presented on a plate, or Packaged
Marketing 4P’s 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
What our Doughnut is Competing Against 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)
Indian Target Markets People ages 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
Joint Venture 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 and HR Plan 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
Distribution 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
Market Analysis 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
India Coffee Production and Consumption Coffee Production ‘ kg bags 4,793.48e5,141.38f5,242.89f5,356.49f5,495.27f5,639.89f Coffee Consumption ‘ kg bags 1,731.51e1,863.10f2,020.49f2,198.51f2,403.86f2,618.46f e: BMI estimates, f: BMI forecasts Sources: India Coffee Board, BMI
Market Analysis Continued
Every sector is increasing steadily out to 2015
Breakeven Analysis 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 Q1Q2Q3Q4Annual Sales$42,000.00$45,423.00$49,124.97$53, $189, Profit$3,760.00$8,327.25$11,103.73$14, $37, Expecting Quarter Sales and Profit
Conclusion