Æ
 

T he Pr oj ect on bus i nes s pr opos al been s ubmit t ed by Rohit Gupt a ENR IBR
4023&Saurabh S ingh ENR 4015. As all Academi c pr oj ect is on or igi nal wo r k
execut ed on dat e 28 -10-10. It is t he or igi nal wor k done by us. T his is t he
pr oper t y of t he Ins t it ut e and us e of t his r eport wit hout pr ior per mis s ion of t he
Ins t it ut e will be cons i der ed ill egal and act ionabl e.

Dat e:- 31-10-10

Signat ur e Signat ur e
Rohit Gupt a Saurabh S ing
IBR 4023 IBR 4015
PGDIB PGDIB

c



 

 Æ 

T he s ucces s ful compl et i on of t his dis s ertat ion woul d not have been
pos s ibl e wit hout t he s upport and cooperation of ot her s. We mus t first
t hank G od, who ma kes all t hi ngs pos s ibl e. We know t hat t his pr oj ect was
not our indi vi dual achi evement , but t he r es ult of ma ny peopl e t o whom w e
will be f or ever grat eful. It is not unt il you under take a pr oj ect like t his
one t hat you r ealize how mas s i ve t he effort it r eally is, or how much you
mus t r el y upon t he s elfl es s eff orts and goodwill of ot hers. We woul d be
failing i n our dut y if we do not expr es s our deep sens e of grat it ude t o
t hos e who have been ki nd enough t o help us i n pr eparat i on of t his r eport.
We ar e gr at eful t o Dr. D. K. G ARG, CHAIRMAN, IS HAN INSTIT UT E OF
MAN AGEMENT & TECHNOLOG Y for his ever last ing s upport and
gui da nce on t he gr ound of which ha ve acquir ed a new fiel d of knowl edge.
T he cour s e str uct ur e cr eat ed f or t his cur riculum has been benefit ed wit h
inclus i on of r ecent devel op ment in t he or ga nizat i on and t he ma nager ial
as pect s. I woul d als o like t o t hank our coor di nat or who s upport ed me and
encoura ged me t o compl et e t his pr oj ect.

Saurabh S ingh

IBR 4015

PGDIB

Rohit Gupta

IBR 4023

PGDIB

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66
 


 
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 Preamble 5

 Purpose of study 6

The business 7-9

! Manpower requirement 10

" Plant & Machinery requirement 11-12

# Start up cost 13

$ Sale forecast 14

% The location 15

& Product & Market segmentation 16-19

' Competitor 20-23

 Technical Knowhow 24

 Plant Layout 25

 Demand of the Product 26

! Why We are interest in this project 27

 Taxation 28

! Legal aspect 29-30

" Conclusion 31

a



   
Entrepreneurship is the practice of starting new organizations or revitalizing mature
organizations, particularly new businesses generally in response to identified opportunities.
Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail.
Entrepreneurial activities are substantially different depending on the type of organization
that is being started.
The food industry is a thriving sector in the Indian economy and holds approximately 4% of
the Indian GDP. We should note that the Bakery food has seen in the past few years a growth
in the sales and revenues between the periods of 2004 to 2009. However, with the economic
downturn that the world is currently experiencing the IRFA (Indian Restaurant &
Foodservice Association) is predicting a decline of the industry between 2008 and 2009.
Indian People love to eat. We find the social environment of food product the perfect break
from cooking, and relish the adventure of tasting new menus. People of India spend lavishly
on their eating habit; we take the advantage of this habit of them.
We herein The cakery food product strive to deliver the products with the green ambience
which the customers won¶t find elsewhere. Quality of products is paramount to us.
Vegetarian people need not to travel here and there for the Bakery food product, we will
provide them the best Cake and pastry they can ever have.

‘ Our motto is to provide quality products to the customers so that they demand our
product again and again.
‘ We try to make small contribution to the environment by using paper for packaging of
our products.
‘ We believe that business enterprise is never complete if it doesn¶t make contribution
beyond building a good business. So we constantly work to improve the quality of
people whosoever is associated with us.
‘ We try to ensure that the customer is getting best service from us.
‘ We will be taking the feedback of the customers and look for modification of our
products and services in response to the feedback.

ë



 (  (Æ)
The objective of this project ³Business Proposal´ is to get insight the real business scenario.
It will help us to grow as entrepreneurs because they are the need of our growing economy.
There is large opportunity in every sector waiting to be exploited for sustaining the growth of
our nation. In this project we will learn how to commence a business ,how to take the
strategic decisions such as developing vision & mission for the organization , selecting the
particular business, looking for the strategic location for the growth of the business, chalking
out the production & marketing plan. It will also help us to understand the dynamism of the
market & will nurture the customer centric approach in us. Being an essential part of our
course curriculum this project brings out our hidden qualities & natural creativity that are
must for the successful completion of this project.
We have found that as ³an owner you will get to know a lot of people. It is very social
business, with lots of invitations to social events and private parties. You will be on a first-
name basis with people who have power and prestige: the conductor of the symphony, the
coach of the football team, the mayor, television celebrities, and so on. When they will use
your services, you are the one they want to talk to. It makes them feel important, so they will
seek you out to become your friend.´ The following information should serve as a guide in
helping you make that decision. The information provided is by no means meant to be all-
inclusive, but it will, we hope, provide some useful guidelines to help in your decision
making. The purpose of the study also rotates around the fact whether we ourselves are going
to start the business or the other would take a valuable suggestion. In both the case the
purpose of the study would be fulfilled.
Our purpose of study can be summarized as follows:-
‘ To increase knowledge base.
‘ To develop entrepreneurial skill.
‘ To understand business aspects and complications.
‘ To give a virtual existence to our future business




 * ( 
³+, -  ./0 0 01 , 2, 2/3 2  4   4, 5
5-´. This statement motivates us to go for the Bakery business in India. We have
suggested for Bakery food product because up till now there is no branded Bakery food
product which sells exclusively Bakery food. THE CAKERY FOOD PRODUCT is a new
Bakery product manufacturer which primarily sells Bread, Cake, Cream roll, pastry, pao,
toast. The punch line of The Bakery Food Product is ³THE TASTE OF YOUR CHOICE.´

60

To become the most preferred Bakery product manufacturer among the people by treating the
people in the way they like to be treated and give them best for the least.

0

The Cakery Food Product aims to be a cornerstone in the community creating a

neighbourhood atmosphere where customers feel comfortable and become instant regulars.
We seek fair and responsible profit, enough to keep the company financially healthy for the
long term and to fairly compensate for our money and risk.

784
1.‘ To establish a working storefront for The Cakery food Product bakery.
2.‘ To develop the strong presence in the community needed to support sales goals.
3.‘ To develop a full menu by the end of first 100 Days.
4.‘ To provide the true flavour of India at reasonable cost.

.90, 20/9
Currently The Cakery food Product Bakery is a partnership firm of two partner which are
Rohit Gupta and Saurabh Singh . Eventually, as the company becomes established, The
Cakery food Product Bakery will apply to be incorporated.



.90, ..,
The Cakery food Product Bakery will be located in Nani which is Very peace full and green
atmosphere. This Town is a very popular destination because of the historical architecture
w



for weekenders and tourists. It is also a prime location for all the employees of the
surrounding bakery businesses. The bakery sells non-wheat and other health specific breads,
sweets and pastries to the surrounding community every 24*7.


.: ;
Customer is the ultimate Boss for any company, he has the power of even sacking the owner
of the company, the only thing he will do that he will not purchase the products of the
particular company, so before starting of any business entrepreneur should have clear idea of
whom to target. We target the middle and upper middle class people area who like to have
bakery food. Mainly our target is ultimate User consumer and children. The Cakery food
Product will focus on three distinct customer segments area.

0.0 .:; Recognizing the importance of human capital, The Cakery food
Product has assembled a strong management team. Most important to the cakery food product
is the financial success which will be achieved through strict financial controls. Additionally
success will be ensured by offering high quality services and extremely clean and healthy
food with Indian taste.
The Cakery food Product is an exciting opportunity that combines, fresh
baked goods with bread, cake products, addressing the recent need for these new products.
Demand for these products is expected to grow exponentially as our target market .Through a
combination of a strong management team, a solid business model, and exciting, market
demanded products will allow The Cakery food Product to quickly gain market penetration
and cash richness.

+0
Marketing means creating awareness and willingness in the customers to purchase the
products. Marketing is one of the most important aspects of the business because without
awareness of the products it cannot be sold.
We planned to sell our products with the fallowing advertisement strategy

ˑ We will attach a leaflet shaped paper pamphlet to all the leading newspaper in Allahabad.
On the leaflet there will be a description of our particular and on the back of leaflet there
will be a quotation about the nutritional value of particular product but there will be

^



 nothing in the quotation that will be affect the sentiments of non vegetarian people
because after all they will also be our customers.

ˑ Before 15 days of inauguration of our business we will seek permission from the
respective Authority for putting the holding about our product. On holding we will keep
information about our product, the pamphlet will be large enough so that the information
will be visible to the people.

ˑ We also provide our products free home delivery.

 0,:;

0/:
No branded bakery food product which sells exclusively Cake and Pastry. It provides variety
of cake , Bread, cream roal, toast, and Cake formed by different Flavour which give the
customer an Indian taste.

+0:
There is a risk in starting this business because it will be first of its kind.

/:
There is no direct competitor as such but we can consider local player of the particular area as
our competitors because they are selling same product with low cost. If talk about
International player Britannia also provides some same product, Britannia is also well
recognized brand among the customer and its sales are maximum among the various products
in India which is a major threat.

990,:
There is a large customer base, as India is having maximum number of vegetarian peoples.
Indians spend around 51% of their personal expenditure on their eating habit.

§



  
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, =.0/

Designation No. of employee Salary/employee Total

Accountant 1 8000 8000

supervisor 1 6000 6000

Baker 2 4000 8000

Helper 4 2500 10000

Sweeper 1 2000 2000

Order taker 2 5000 10000

Total 44000












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* )
Land & Plan manufacturing cost

Land require 150 yard@1800 270000

Legal cost - 10000

Total cost 280000

Construction cost

Office 1 room

Store Room 1 room

Manufacturing 1 room

Toilet/bathroom 1 room

Total cost 230000

Net total 510000

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* )


Machinery no. Price

Gas/electric 5 deck oven (China) 1 68000

Bread slicer 1 10000

Rotatary oven 1 25000

Dough driver 1 10000

Other equipment 1 20000

Generator 1 20000

Total 153000

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Legal cost 5000

Advertisement cost 20000

Electricity cost 5000

Plumbing cost 5000

Insurance 5000

Bakery Ingredient 110000

Bakery accessories 10000

Packing material 20000

Other cost 10000

Administrative cost 10000

Net cost 200000

*Cash in hand 93000

c¦



   

Sale forecast for first 100 days
Product Name No. sales @rate (Rs) Total(Rs)

+, 7-
250 gm 2500 20 50,000
180 gm 3000 15 45,000

+, +
350gm 500 100 50,000
550gm 400 150 60,000
750gm 300 200 60,000

+, 
44 pieces 350 45 15,750
22 pieces 550 25 13,250

+, ,
6pieces/box 1000 30 30,000

+, . 
5pieces/pack 1000 30 30,000

+, 
12pieces/pack 1200 20 24,000
20pieces/pack 800 30 24,000
Single pao 5000 3 30,000
Total 4,32,000

ca



 * 


For any business player location plays a vital role. The success and the future of the company
depends on that place from where selling of the product and availability the required raw
material is feasible and in least possible cost. Location- our preferable location is 0
/7- 0 / 0 2, 0

0 5 040:;

Nani consists of Economic area of Uttar Pradesh, as we know that Nani is well known
Junction in northern railway and also have some important factors which are..
ˑ Cheap land, labor cost which are very essential for starting any business.
ˑ The location of the Cakery food product is easily reachable location for our target market
so cheap transportation cost occurring during supply and receiving the goods.
ˑ Easily availability of Supplier and raw material.
ˑ No branded bakery is present in this area, a monopoly type situation in the bakery
business in this area.
ˑ Very peace full and green atmosphere.
ˑ Another thing to consider is whether or not this is a high crime area, people may not stop
if they don't feel safe. Destruction of property, robbery and employee safety is other
considerations.

Location:- Plant and target market

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 + .0: ;‘The Cakery food product provides wide range of the Bakery product
such as Cake, pastry, Bread, Cream roll, Toast and Pao which are very common and favorite
choice of the middle class and upper middle class people and they takes bakery product as a
snacks and breakfast so company three target three segment of the market which are also
include the youth and children it means teenagers group.

ˑ The first group area is the college area. This segment is growing at 25% a year with
32,000 potential customers.
ˑ The second niche is the working man group. This segment is also growing at 20% with
40,200 potential people.
ˑ The last group is the house hold group. This segment is typically making modifications to
their diet. This niche also is growing at 15% with 4,80,000 possible customers.

Target Market Potential Customer

Allahabad (City) 12,15,348
Mirzapur 2,05,264
‘

 + .0 , :;

In our target market, we will mainly focus on the "Teenagers group" since they are the most
prevalent and steady of customers. We expect that the "working man group" and the '"house
hold" group will make up a smaller portion of our customers. We have not listed "regular
customers" as a target group since the customers who do not fit into any of our groups are too
varied to segment. We are specifically filling the needs of the "house hold group" so we
expect the most business from this group.

0-, 0,

The estimate made by the Ministry of Food Processing Industries, the total market of 7+,
9-, bread and biscuit is estimated at 1.5mn ton and 1.1mn ton respectively. The cake
market is estimated at 0.4mn ton. The organized segment of the biscuit market is estimated to
be 0.44mn tons whereas the unorganized sector accounts for the balance 0.66mn tons. Bread
market is estimated to be growing at around 7% pa in volume terms, whereas the biscuit
market in the recent years has witnessed a little higher growth at around 8-10% pa. Within

c^



the biscuit category, cream and specialty biscuits are growing at faster pace at 20% pa, while
the popular segment is growing.
The Cakery food Product bakery competes in the Food Services Industry. In
addition to competing with other organic and non-wheat bakeries, it competes with all
restaurants, delis, bakeries and supermarkets for a share of its customers¶ food dollar. The
Cakery food Product is most concerned with competitors who differentiate their products and
services with a healthy, organic focus. Because this group is so large, The Cakery food
Product has chosen to limit its analysis to other gluten-free bakeries.

c§




  

 9,

60

‘- 5 / 5 7+,

--
Shivala, Near Agrawal Radio,
Shivala, Varanasi - 0542 2275012

‘ 0 7+1
--
The Mall Rd, varunapul (near hotel radission),
varanasi - 0542 3200523

‘2 /. 7+,

--
Rathyatra, Varanasi - 0542 2363071

Æ‘/4
5 > .0 +,

--
D 26/4, Narad Ghat,
Himalaya Lodge, Narad Ghat, Varanasi

‘
+ > +
--
Jagatganj, Varanasi - 09936090187

‘ 2 8 7+

--
Katalmil Gate, Varanasi - 0542 2214530

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 9,

/7-

0- 54
--

13/13, SARDAR PATEL MARG CIVIL LINES,

Allahabad 0532 2261228

.  +,

--
211, Noorulla Road, Allahabad ± 211001

?, +,‘
177/22, Noorullah Road, Allahabad ± 211001 ‘

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050
‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘ 19/35, M.G Road, Civil Lines, Allahabad ± 211001

@0 0
67/64, Zero Road, Allahabad ± 211003
‘


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+ - 0- 4 .-

G-164 sector 63, opposite Fortis Hospital Sector 62,

New Okhla Industrial Development Area,

Uttar Pradesh ± 09971499770

000 A9.0 0-  -

B-66, Okhla Industrial Area Phase-i

New Delhi -011 26816298

+ 0 B 0 - 0- 4 .-?‘

Mehrauli Gurgaon Marg, 14GF, Ground Floor

MGF Metropolitan Mall

Gurgaon, 122 001 - 0124 4100788





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*

 *

The great majority of developing countries including in India poor and suffer from over-
population and consequent higher rates of unemployment. The technology of advanced by
definition is capital ±intensive, whereas the technology required in most developing countries
has to be employment-intensive. This is, therefore the basic contradiction. The transfer of
capital-intensive technology into developing countries is likely to worsen the employment
position as such technology would deny the unemployed the extremists, therefore, argue for
an almost total rejection of transferring western technology to Indian conditions. The
technical exists not in research laboratories, not in factories machines, nor in engineering
data, drawing and patents. It exists in the multi-disciplinary group consisting of scientists,
engineers, accounts, managers, operations and maintenance teams other groups who have
together developed the technology. So, in business, technology exists where it has been
assimilated and adapted successfully and is able to undergo diffusion. In fact the assimilation,
adaptation and diffusion of ³know-how´ results in technology. The technical knowhow
includes following components such as:

‘ Quality of the product.

‘ Specification of the raw materials inputs to various components.
‘ Details of the plant & machinery and their layout.
‘ Engineering and process flow chart, manufacturing instructions.
‘ Load diagrams and material balance.
‘ Control of operations, production and planning.
‘ Managerial practice and data processing.
‘ Scale of operations.
‘








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 )(

  > Æ(
 

)( >  6 

The chosen location is selected for its high commercial and residential traffic situated at Nani
the elite class area of Allahabad. Key service industries include Education,
telecommunications, hotels, banking, and tourism are there. The crakery food product has
retained the services of traditional architectural for the conceptual development of the interior
design.

ë





Æ Æ  * Æ(


Demand analysis is one of the important parts of any kind of business, before establishing
the business in market. According to our project it is necessary to find out new trend Bakery
product and past requirement of the market that the project which we are going to established
whether it is successful in that particular area or not. Consumption trend can be measure
,through demand position or customer life style .Because in today¶s scenario customer needs
best quality of baking product at cheaper rate it can be easily analyze through current
population of the our target customer area.
Demand trend only analyses through customer¶s interest
of that particular area, Supply position of any market is depending on number of customer
available in that particular area. More the number of the customer more is the demand and
vice-versa. It mainly consist the market from where the businessman take the raw material it
is depend on the past and present respond of the customer. Nani is situated in the centre of
our large Papulation,In Allahabad if we talk about life pattern of the people ,mostly belongs
to middle class and teenagers they are mostly prefers bakery product such as Bread, Toast
and Pao as breakfast in comparison to fast food so they play important role increasing
demand of bakery product.
Allahabad is city having large number of people and there are also tourists
who visit the Allahabad to see its cultural heritage and Sangam.
‘










 *)      Æ  * ?


We are interested in this project because two of our neighbours are already in this business
and they are generating enough profit with this business. We had also organized a south
Indian food stall in µKshitiz¶ one of renowned festival of our college and we made profit.
This has inspired me to open a Bakery business.
In spite of this, We are a food loving person. I take interest in cooking and having different
varieties of meal. Secondly, through studies I found that bakery business is the fastest
growing business in India comparative to other businesses having lowest failure probability
and there is low tax liability apposed on the Bakery product in comparison to other type of
the business and very formal legal liability required for this business. Allahabad is the only
city where cheap land and labour are available. That¶s why we have included availability of
resources in our Bakery business.
Being a Management student it¶s always curious to be an entrepreneur. Opening a Bakery
business is also an entrepreneurship. So, all these create interest in me for this project.

w



 C
As we know India known for the well -developed tax structure with clearly demarcated
authority between Central and State Governments and local bodies. Central Government
levies taxes on income (except tax on agricultural income, which the State Governments can
levy), customs duties, central excise and service tax.
Value Added Tax (VAT) (or Sales tax in States where VAT is not yet in force), Stamp Duty,
State Excise, Land Revenue and tax on professions are levied by the State Governments.
Local bodies are empowered to levy tax on properties, octroi and for utilities like water
supply, drainage etc.
In last 10-15 years, Indian taxation system has undergone tremendous reforms. They tax rates
have been rationalized and tax laws have been simplified resulting in better compliance, ease
of tax payment and better enforcement. The process of rationalization of tax administration is
ongoing in India.
Since April 01, 2005 most of the State Governments in India have replaced sales tax with
VAT. Service tax is levied at the rate of 10% (plus 2% education cess) on certain identified
taxable services provided in India by specified service providers. Service tax on taxable
services rendered in India are exempt, if payment for such services is received inconvertible
foreign exchange in India and the same is not repatriated outside India.
The CENVAT Credit Rules allow a service provider to avail and utilize the
credit of additional duty of customs/excise duty for payment of service tax. Credit is also
provided on payment of service tax on input services for the discharge of output service tax
liability If so, use the following method to "back into" they tax. You may choose to include
sales tax in the price of an item, rather than show the tax separately.

^



   

400 5 - -0 D &"!
This act is the basic statute that is intended to protect the common consumers against the
supply of adulterated food. This specifies different standards for various food articles. The
standards are in terms of minimum quality levels intended for ensuring safety in the
consumption of these food items and for safeguarding against harmful impurities and
adulteration. The central Committee for Food standards, under the Directorate General of
health services, Ministry of Health and Family Welfare, is responsible for the operation of
this act. The provisions of this Act are mandatory and contravention of the rules can lead to
both fines and imprisonment.

784
ˑ To protect the public from poisonous and harmful foods.
ˑ To prevent the sale of substandard foods.
ˑ To protect the interests of consumers by eliminating fraudulent practices

0-- 0 / 0-  B+-
..-E D &$$
These rules lay down certain obligatory conditions for all commodities that are packed form,
with respect to declaration on quantities contained. These rules are operated by the
Directorate of Weights and Measures, under the Ministry of Food and Civil supplies

( (  Æ ÆÆ BE
During the pre-independence period, standardization activity was sporadic and confined
mainly to a few government organization. However immediately after independence,
economic development through coordinated utilization of resources was called for and the
government recognized the role for standardization in gearing industry to competitive
efficiency and quality production. The Indian Standard Institution was therefore, set up in
1947 as a registered society under a government of India resolution.
The Indian Standard Institution gave the nation the standard it needed for nationalization,
orderly industrial and commercial growth, quality production and competitive efficiency.
However, in 1986 the government recognized the need for strengthening this National
Standards Body due to fast changing socio-economic scenario and according it a statutory

§



 status. Thus come the Bureau of Indian Standard Act 1986 and on 1 April 1987, newly
formed BIS took over staff assets.
The activities of BIS are twofold, the formulation of Indian standards in the processed food
sector and the implementation of standards through promotion and through voluntary and
third party certification systems. BIS has on record, standards for most of processed foods. In
general, these standards cover raw materials permitted and their quality parameters, hygienic
conditions under which products are manufactured and packaging and labelling requirements.
Manufacturer complying with standards laid down by the BIS can obtain and ³ISI´ mark that
can be exhibited on product packages. BIS has identified certain items like food
colours/additives, vanaspati, containers for packing milk powder and condensed milk for
compulsory certification.

784 5 
E‘ Harmonious development of standardization, marking and quality certification.
E‘ To provide new thrust to standardization and quality control.
E‘ To evolve a national strategy for according recognition to standards and integrating them
with growth and development of production and exports.

¦





(
I am sure that our Bakery food product will be going to succeed as it is having a huge market.
The product range also which we are having is unique and it nearly covers all the necessary
qualities which it will make a unique product. There are large number of people in Allahabad
& it¶s nearby city which can be served as our customers. Our bakery will be first of its kind
as there is no branded Bakery up till now in Uttar Pradesh which sells exclusively Cake
Pastry, bread this gives our cakery food product a first movers advantage. In India there are
large numbers of vegetarian people who account for about 40% of the Indian population. This
gives an idea about our target customers. People in India spend lavishly on their eating habit,
only we have to do is to provide best quality Bakery food.

There are many factors that influence the availability of the product. Supply of raw materials
should be within time. Baker and worker should be quick and best so that we can provide our
customers the quality Bakery food with a faster service. Marketing is especially important for
a business in retail industry because there is no other person on whom the retailer can rely in
this industry for penetration in the market or diversification.

Marketing is a very crucial activity in every business organization. Every product produced
within an industry has to be marketed otherwise it will remain as unsold stock, which will be
of no value.

¦c