Table of Contents

Executive summary..........................................................................................................................4How the proposed business solves the problem or fills the need…………………………………6Company profile………………………………………………………………………………... 6Vision statement ………………………………………………………………………………...7Mission statement ……………………………………………………………………………….8Competitive advantage …………………………………………………………………………..9Business model …………………………………………………………………………………10Sustainable competitive advantage ……………………………………………………………..11Current status and requirements …………………………………………………………………11Management teams ……………………………………………………………………………...12Company structure ………………………………………………………………………………15Intellectual property …………………………………………………………………………….16

Industry analysis………………………………………….…………………………………….. 17SWOT analysis …………………………………….……………………………………………19PEST analysis …………………………………………………………………………………...20Porters’ five forces model ………………………………………………………………………22BCG matrix……………………………………………………………………………………... 24Industry life cycle………………………………………………………………………………. 25Target market……………………………………………………………………………………26Competitive positioning…………………...…………………………………………………… 27Marketing plans………………………...………………………………………………………. 28Marketing mix……………………………..…………………………………………………….30Analysis of 5 Cs …………………………….…………………………………………………..32Operation plans ………………………….………………………………………………………33Availability of qualified labor pool ……….…………………………………………………….35Business partnerships ……………………………………………………………………………35

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Quality control …………………………………………………………………………………..36Customer support………………………………………………………………………………...37Financial projections……………………………………………………………………………. 38Detailed analysis of Dawn ………………………………………………………………………42Acknowledgements ……………………………………………………………………………..45

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Executive Summary

The Opportunity:Entrepreneurs recognize the opportunity and then turn it into a successful business. For any business to come into being there must be an opportunity that the entrepreneur identifies and then capitalize upon that opportunity. So, being an entrepreneur we identified opportunity gap in the bread market because bread is available only in traditional flavors and we have tried to differentiate ourselves by offering Cheese bread.

Competitive Advantage:Our main competitors are Dawn Bread & Bunny’s Bread. But they are only providing the same traditional flavors of bread. Therefore, we have a competitive edge over them. We will be providing good taste and best quality bread.The competitive advantage that we have is:

Pioneer Advantage Price Control High Quality Low Cost Passion of management team

Business Model:Business model is used to include all the activities that define how a firm competes in the marketplace.

a) Core Competencies:Core competency is important in short and long term. Our core competency is that we are the first one to introduce Cheese bread in the market. So, we have an edge over the competitors.

b) Strategic Assets:

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These are anything rare and valuable that a firm owns. Our brand, patents and plant and equipment are our strategic assets.

c) Partnership Network:We have formed partnership with Cakes & Bakes, Alfatah and some other retailers as well. We have good relations with our suppliers.

d) Customer Interface:Customers are the main stakeholders of the business and can make the business a success or failure.We have developed a feedback feature in our website which will provide us the suggestions and customer feedback.

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Target Market:Our target market is huge as it contains people from middle income and above, children, youngsters, hotels & restaurants. Our product is generally for all categories of people having average and above income and especially for children and youngsters who like Cheese.The geographical location of the market will initially be Lahore which consists of approximately 9 million people.

Management Team:New venture relies heavily on its management team. The new venture depends upon the team’s effort, abilities and skills. Every member of our management team is very hard working and has the ability to face any situation. They are well experienced and possess know-how on running this project.

Business Needs:A Business needs certain things in order to move forward, that may include: Interest and passion of management and entire team Healthy finances Good marketing and advertising moves Observing the trends in market Keeping in view the customer’s choice & preferences Formulating and reviewing the strategies

Exit Strategy for investors:Exit strategy for the investors that we have designed is that legal documents of partnership will be signed by the partners & partnership will not be resolve for 5 years. If someone wants to exit from the business he can do so but there will be some restriction for the partner that he will get his share of investment after 3 years. If some partner dies automatically the partnership will be transferred to his family.

Source of Motivation:

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This is an era of change where people demand new and unique things and bread is something that everybody loves to eat. So to cater this need we identified the Opportunity Gap and decided to start the new business. The need of a new taste of bread is fulfilled by our product.

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Description of the business:

How the proposed business solves the problem or fills the need

The bread industry in Pakistan is flourishing very quickly and bread products are gaining much popularity. Bread has been accepted a popular substitute for nan, chappati, paratha.The problem to be solved or the need to be filled is to bring a new taste in bread as well as to serve the Cheese Lovers. For this we conducted a small survey in which we asked the customers some questions.

QuestionsViews

Positive NegativeWould you like to have new flavor of bread? 75% 25%Do you like Cheese? 55% 45%Are you satisfied with the same taste of bread?

35% 65%

Is your bread healthy? 55% 45%Do you take bread daily? 77% 23%

Company Profile

“Formage” was incorporated by Nimra Arshad, Rabail Fatima, Husnain Khan, Bilal Haider, Aliza Zaidi and Muzamil. The idea came into being in December 2009. We’re a Partnership owned company and take pride in being able to offer the best and freshest bread in town. Although Cheese bread is available in some fast food restaurants but it is not in the market as is the simple or milky bread. This was first identified by us and we started this company to serve the customers.

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We want to be the preferred choice in bread now and in the future. We

provide fresh bread with good taste and quality.

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To provide superior and innovative products, quality management & customized service by achieving consistency & reliability in all facets of our business while promoting an atmosphere of mutual trust, respect, honesty & integrity in a clean and comfortable environment.

Objectives: To develop new taste and gain customer trust. To establish links with key market personnel. To develop good relationships with distributors. To achieve high rate of return.

Core Values:Our core values are:

Customer Commitment Quality Integrity Teamwork Nutrition & Hygiene

Success Factors:

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Effective marketing campaigns. Strong management team. Focus on product quality. Reporting on key issues. Strong networks.

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Competitive Advantage

Our main competitors are Dawn Bread & Bunny’s Bread. But they are only providing the same traditional flavors of bread. Therefore, we have a competitive edge over them. We will be providing good taste and best quality bread.The competitive advantage that we have is:

Pioneer advantage:We are introducing a new concept within the existing industry; the name recognition will be a source of competitive advantage for us.

Price Control: As we are the first one to introduce Cheese bread, we have control over the price to set.

High Quality:Our focus is on providing high quality product with an affordable price. We cannot compromise on quality.

Low Cost:We are operating at very low cost and the services provided by most of our members are not charged or are charging us very low because of the good relations and acquaintance.

Passion of management team:

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Our management team is very much dedicated and passionate. We are willing to work hard and with devotion.

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Description of Business Model

Business model is used to include all the activities that define how a firm competes in the marketplace.Attracting the customers is easy as compared to retaining them. As far as business model of our company is concerned it is described as below:

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Forecast the demand

Collect the ingredients from suppliers

Manufacturing the product

Whole sellers

Send it to the retailers

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Sustainable Competitive Advantage

A firm can gain sustainable competitive advantage by the combination of a company’s core competencies and strategic assets achieved by implementing a unique value-creating strategy.

Core Competencies:Core competency is important in short and long term. Our core competency is that we are the first one to introduce Cheese bread in the market. As such we have an edge over the competitors.

Strategic Assets:These are anything rare and valuable that a firm owns. Our brand, patents and plant and equipment are our strategic assets.Some other things that will help us in achieving sustainable competitive advantage are:

Making and reviewing the strategies. Strong and qualified board of directors. Marketing and advertising campaigns. Access to distribution channels.

Partnership Network:We have formed partnership with Cakes & Bakes and some other retailers as well. We have good relations with our suppliers.

Customer Interface:Customers are the main stakeholders of the business and can make the business a success or failure.We have developed a feedback feature in our website which will provide us the suggestions and customer feedback. By keeping in touch with the customers we will be able to gain confidence of the customers.

Current Status and Requirements

Where the business stands today:

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Our business is at initial and introductory stage. We have a long way to go. We want to see ourselves ahead of our competitors. To reach the growth stage we have to take every step carefully.What the business need to move forward:Business needs certain things in order to move forward, that may include: Interest and passion of management and entire team Healthy finances Good marketing and advertising moves Observing the trends in market Keeping in view the customer’s choice & preferences Formulating and reviewing the strategies

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Management Team

For a new venture it is very important to have persons with required skills and abilities. We are a team of five members and every one of us is very dedicated, committed, and sincere towards this project. Our team consists of:

Ms. Nimra Arshad (CEO)Ms. Rabail Fatima (General Manager Finance)Ms. Aliza Zaidi (General Manager Marketing)Mr. Husnain Khan (General Manager HR)Mr. Bilal Haider (General Manger R & D)Mr. Muzamil Hussain (Operations Manager)

The details of the members are given below:Management Experience:Each member of our team has prior experience in the areas of concern.

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1) Ms. Nimra Arshad Our CEO has done MBA from London and has been working in food sector from the past 15 years. She also done hotel management course from Singapore. Has a vast interest in this sector and has developed networks with many people of interest. Currently serving as food and beverages director in PC hotel.

2) Ms. Rabail FatimaShe is one of our directors and also serves as GM finance she looks after all of our firm’s financial matters: Has served as a Finance manager in Avari Hotel for ten years. Has done her MBA with specialization in finance. Have many contacts in hotel and beverages sector. Possesses excellent capabilities and has knowledge of this industry.

3) Ms Aliza Zaidi She is serving as GM marketing as well one of members of board of directors. Has done MBA with specialization in Marketing. Has an experience of working as marketing executive in Nestle for seven years. Have necessary skills required for this field.

4) Mr Husnain Khan He will be serving as GM Human Resource and member of board of directors. He has been working as HR director in PC hotel for past ten years. Has done MBA from LUMS with majors in HR. He possesses the ability in how to deal with people and selecting the right person for

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right job.

5) Mr. Bilal HaiderHe will be our Manager R & D as well as serving as board of directors.

Will perform R & D activities to keep pace with changing trends.

6) Mr. Muzamil Hussian He is our Operations Manager He will take care of all activities that are taking place within or

outside the organization Has done MBA from Lums.

Management Ability:Every member of our management team is very hard working and has the ability to face any situation. They are well experienced and possess know-how on running this project. They can turn this project in a great success.

Technical Expertise:The technical expertises required in our company are: IT expert Food quality supervisor

Board of DirectorsThe board of directors comprises of:Ms. Nimra Arshad ChairmanMs. Rabail Fatima DirectorMr. Aliza Zaidi DirectorMr. Husnain Khan DirectorMr. Bilal Haider DirectorMr. Muzamil Hussain Director

Board of AdvisersA board of adviser provides direction and advice regarding the business.Mr. Mian Mansha (Finance advisor)

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Mr. Ehsan Ullah (Operational advisor)Mr. Zubair Anwar (Marketing advisor)

Key Professional Service ProvidersLaw Firm:Our firm has hired the services of Syed Zeeshan Aslam Bukhari who is an advocate of high court. He will look after all the legal matters of our company. He provided his services in registering our firm, its logo and any new idea generated by our firm. He will also provide us help in any other problem faced by the company.Address:Advocate High CourtOffice: 13 Fan Road, Old Punjab Bar Council, 2nd floor, LahoreCell # 0300-4651682Accounting Firm:Our company has assigned the task to Wajid Ali Shah who is also providing his services as DGM at Habib Bank Ltd. He has experience of more than 20 years in this field. He will be helping us in maintaining our accounts and any other financial or audit matter.Address:DGMMBA (FIN.), L.L.B., DAIBPHabib Bank Limited102-103 Upper Mall, LahoreBusiness Consultants:Pakistan Business Consulting Pakistan will provide us consultancy services and provide professional and expert advice. They will conduct in-depth analysis on behalf of our company.

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CEO

Ms. AMNA ANJUM

CEO

Ms. AMNA ANJUM

Marketing Manager

MS.HIRA ZAHID

Marketing Manager

MS.HIRA ZAHID

Finance Manager

MS.NOOR

Finance Manager

MS.NOOR

Board of Directors

4 Members

Board of Directors

4 Members

HR Manager

MS.HUMERA

HR Manager

MS.HUMERA

ManagerR & D

MS.UZMA

ManagerR & D

MS.UZMA

Middle Manager

Mr. Sufian Ullah

Middle Manager

Mr. Sufian Ullah

Advertising & Promotion

Officer

Mr. AD Sahi

Advertising & Promotion

Officer

Mr. AD Sahi

Treasurer

Mr. FiazAhmed

Treasurer

Mr. FiazAhmed

Controller

Mr. Isthiaq

Controller

Mr. Isthiaq

Middle Manager

Mr. Ali Ahmad

Middle Manager

Mr. Ali Ahmad

Training and Compensation

dept

Miss. Anum

Training and Compensation

dept

Miss. Anum

Company Structure

Intellectual Property

Patents, trademarks and copyrights applied for or approved:

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We have applied for registration of our company and logo. By doing so no one can copy it.Our Company logo is

Website Address:www.formagefoods.com

Address of our Factory:40, Industrial Estate,Kot Lakhpat,Lahore Tel. : 92-42-111-111-999Fax : 92-42-5121308

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Industry Analysis

Industry analysis is to be conducted in order to focus on potential of the industry. It is very important to work on this area before starting any business. Different aspects are taken into account such as size of industry, industry attractiveness, and profitability in long run etc.

Industry Trends:

The trend in the bread industry has been almost similar from last many years as no innovation or change has taken place. If change has been made then it is only to a very small extent. Therefore, our product has the potential to bring innovation and change in taste in bread industry. The most common types of breads available in the market are:

1) Plain bread

2) Milky bread

3) Bran bread

These breads are available in different sizes such as small, medium, large.

People are always looking for something new and our bread will cater to their need.

Social Trend: Social trend is very much in our favor because bread is used by majority of people including elders and kids, in breakfast. They want convenience and ease that bread can easily provide as well as a tasty flavor.

Economic Trend: People are willing to spend money on necessities and food items. As our bread is not that much expensive so it can be purchased easily.

Studying industry trends is one of the first steps in conducting a market analysis. It helps to identify opportunities and threats in the industry that may affect profitability.

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Studies on consumer eating and drinking patterns are available from various sources. Such studies report recent changes and trends in consumer attitudes and behaviours.

The following are some of the sources of industry trends data:

Industry publications

Consumer patterns

Industry groups

Bread Associations

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Industry Size:

Size of bread industry is very large as there are many different bread producers in the country which produce the regular bread in the country but few of them are producing it on large scale and have major market share the rest of the bread industry consist of small bread makers which usually don’t even have a name for their product. These small bakers usually operate in small villages and bread made by these small producers is not even up to the standard maintained by branded bread producers.

The major bread players in the market are:

1. Dawn Bread

2. Bunny’s Bread

3. Vita Bread

4. Gourmet

5. Cakes and Bakes

6. Local bakery breads

Industry Attractiveness:

The bread industry in Pakistan has seen many changes in the last twenty-five years. It has emerged as a small-scale bakery processing industry to numerous industrial bread making units all over Pakistan. The bread industry in Pakistan is flourishing very quickly and bread products are gaining much popularity. Bread has been accepted as a popular substitute of rice, naan, chappati, paratha.

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Swot Analysis:

SWOT analysis is an important tool for auditing the overall strategic

position of a business and its environment.

Strengths:

First mover advantage

Strong management team

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Financial health

Huge market potential

Brand name and image

Weaknesses:

Availability of skilled labour

Distribution problems

Health factor

Opportunities:

Changing consumer tastes

Demand for new flavour

Growing bread industry

Catering to health conscious people

Threats:

Strong competition in industry

Economic changes

Political instability

Unstable prices

Macro Environment (PEST Analysis):

The scanning of macro environment is important when starting a new

business. It is also known as PEST Analysis.

Political Factors:

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Political and regulatory changes are very important to consider for any industry. They can pose a threat to the industry. As we are in bread industry, so any change in policies, rules & regulations as well as law and order situation can serve as a threat to the industry.

Economic Factors:

Economic forces of any country can affect the availability, production and distribution of resources among competing users. So economic factors play a mediocre role in bread industry. Income and level of saving, inflation etc. can play a vital role in affecting the industry from economic point of view.

Social Factors:

Social factors include desires, needs, attitudes, culture and values of a society. These factors can effect adversely or positively the bread industry because every area of country has different likings and disliking, culture and behaviour. So we have to keep in mind these social factors before starting this business.

Technological Factors:

As we know that the world has become a Global Village due to technological advancements. As such the importance of technology cannot be ignored. We have to utilize modern technological equipment to compete in the market.

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Porter’s Five Forces Model:

Mainly following factors can influence industry environment of our product:

Threats of new entrants: (High)

The growing industry is like a magnet for others and bread industry as it is growing very fast has a threat of new entrants. We have created some barriers to entry to minimize this threat:

1. Product Differentiation:

We are manufacturing a new flavour of bread which is not available in the market.

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2. First Mover Advantage:

As the idea of Cheese flavoured bread is initiated by us so we are having the advantage of first mover.

3. Management Team:

Our management team is very skilled and experienced and have a good knowledge of this industry.

Rivalry among existing firms: (High)

Rivalry among the firms who are already in the market is high. The main players in the market are:

1. Dawn Bread

2. Bunny’s Bread

3. Vita Bread

4. Gourmet

5. Cakes and Bakes

Threat of Substitutes: (High)

At present there is no direct substitute for our bread because we are the first ones to introduce Cheese bread. The indirect substitutes are milky or plain breads available but we will make sure that our quality and price attract people towards our bread. Still the threat of substitute is high because of other alternative breads available.

Bargaining Power of buyer: (Low)

Bargaining power of buyer is low as the price of our product is already very competitive and is fixed and our product is different from our competitors.

Bargaining Power of suppliers: (Low)

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Bargaining power of suppliers is low in this industry as raw material is easily available and there are lots of suppliers.

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Attractiveness Of Breads Industry Using Five Forces Model

Low Medium High

Threat of substitute

Threat of new entrants

Rivalry among existing firms

Bargaining power of suppliers

Bargaining power of customers

BCG Matrix:

As we are a start-up firm so we have placed ourselves in Question mark

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because we are in introduction stage and we have to make aware the people about our product.

Industrial Life Cycle:

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Target Market

Target Market is the limited group of individuals that a firm goes after or tries to appeal to.

Description:

Our target market is huge as it contains people from middle income and above, children, youngsters, hotels & restaurants.

Geographic:

The geographical location of the market will initially be Lahore which consists of approximately 9 million people.

Demographics:

The demographic of the market is approximately 51% male 49% female.

Psychographics:

Our product is generally for all categories of people having average and above income and especially for children and youngsters who like Cheese.

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Competitive Position within target market

Competitor Analysis:

A competitor analysis is a detailed analysis of a firm’s competition.

Competitive Analysis Grid:

It is a tool for organizing information a firm collects about its competitors.

Name Dawn Bread

Bunny’s Bread

Vita Bread

Gourmet Bread

Cakes And

Bakes

Unique Product

Brand Name Recognition

Access to distribution channels

Quality Of Product

Price

Marketing Support

Quality of Customer

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service

The result shows that Dawn bread has competitive advantage over its rivals in many of the areas. This will help us to plan and design our strategies accordingly. This will also help us in developing the marketing plan.

Marketing Plan

A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years.

Marketing objectives: To make the consumer aware about the product. To promote the sales. Maintain the growth. Revise the strategies.

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Product Feasibility and Strategy:Product feasibility is an assessment of overall appeal of the product being proposed. Before launching any product, a firm should be confident that what customers want and that the product will have an adequate market.

Product Strategy:We have adopted differentiation strategy as we are presented bread in a new and innovative way. Our target market is broad and we are serving it in a different way.

Concept Testing:

The purpose of concept testing is to test the idea that an entrepreneur thinks is compelling. It helps to estimate the potential market share the product might command.

The objective is to emerge from the concept test with a product that is refined to the point that it satisfies a defined need and the prospective

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customers have said that they like and they may be willing to buy.

We developed a questionnaire and checked the customer response:

1) Are you satisfied with the same old taste of bread?

a) Yes 45%

b) No 55%

2) Would you like to have new flavor of bread?

a) Yes 70%

b) No 30%

3) Do you like Cheese?

a) Yes 78%

b) No 22%

4) Do you take bread regularly?

a) Yes 70%

b) No 30%

5) Would you buy Cheese bread?

a) Yes 65%

b) No 35%

Usability Testing:

It requires that users of a product perform certain tasks in order to measure the product’s ease of use and the user’s perception of the experience.

For usability testing, we developed sample breads and distributed it to

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people in areas like Gulberg, Model Town, Johar Town. This helped us for a quick feedback.

Expected Market Share:

Based on our surveys and interviews with the people, we expect to gain some market share within some period of time. As 55% of the results were positive.

Marketing Mix

Marketing Mix is the combination of four P’s; Product, Price, Place, Promotion.

Product:

Our product is new and innovative. We will make sure that our bread is available to the customers and it will provide the desired result to the end-user. Our product is different and this will help us to keep us ahead of the competitors. The marketing effort in this regard will be focused on taste, quality and hygienic factor.

Price:

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Price plays a vital role in our market because of many factors. People are very conscious about price. Initially we are launching our bread in two sizes; small & large. We divided the size in categories on the basis of different income level and family sizes so people of average category can easily purchase our product.

The price of small size pack will be Rs. 25 and large size will be of Rs. 48. These prices are at par with our competitors.

Place (Distribution):

We have started our business in initially in Lahore so that we can conveniently manage the operations and different activities of the business. “Double Roti” will be acting as a distribution channel to retail stores initially in Lahore. Our website will also help us in getting order directly from customers as well as it will provide us feedback. We will also be placing our product in renowned bakeries.

Promotion:

The promotional plan to be adopted by Formage has some key objectives. First of all to establish the brand image in the eyes of the customers. To make the customer aware about the product is an important task. Promotion of Formage will mainly involve above-the-line promotion techniques including advertising in newspaper, hoarding campaigns, brochures, internet promotion and to a more limited extent; television.

The purpose of promotional techniques is to gain the market share of existing bread companies.

Hoarding Campaigns

Sr#

Location Size 1Month Rates

Light Status

  LAHORE      

1 Ferozpur road near qaddafi 60x20 216,667 Without

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stadium Light

2 Sherpao bridge facing Shami chowk

60x20 433,333 Without Light

3 Main boulavard New garden town

60x20 333,333 Without Light

TV Channels

Hum TV

City 42

1:00 pm-6:00 pm

4Fridays (1 Spot) & 4 Saturdays (1 Spot) & 4Sundays (1 Spot)

6:00pm-8:00pm 4Fridays (1 Spot) & 4 Saturdays (1 Spot) & 4Sundays (1 Spot)

Moreover, one of our team members has links with different newspapers so we can give advertisement in newspaper at minimum rate. We will also advertise through cable channels. The rates will be from Rs. 8000-10,000 per month.

Analysis of 5 Cs

Competitors

Our main competitors are Dawn, Bunny’s, Marygold, etc. But if we consider the competitors for this particular product, we don’t really have any competitor because no other bread company provides cheese flavoured bread. For this reason we also have a competitive advantage in the bread industry.

Collaborators

Formage supplies its product to Alfatah , Cakes and Bakes, whom we

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have set business deals with. They also benefit from selling our product because it is innovative and unavailable any where else. So it will increase their customer life time equity. For the raw material we are having partnership with some suppliers.

Channel

We try our best to make our product available all the time to our consumers. We ourselves are our whole sellers and our retailers are lots of bakeries, convenient stores, etc. Consumers can also purchase our product from the factory, or place an order on our website. So we also have direct channel of distribution. www.formagefoods.com is our official site.

Customers

Our corporate customers include restaurants, hotels, etc. Peeru’s Café and Espresso are some restaurants that serve our product regularly. We are negotiating with Shaheen Airlines to serve our product. This will be settled soon. Our domestic consumers are people of average income and above.

Context

Inflation:Today, due to increased governmental regulations when flour prices are sky high bread is being accepted as a popular substitute for Nan, chapattis, parathas.Economic EnvironmentIn the economic context it is going to be an inexpensive ready-to-eat delight for all the cheese lovers. Social/Cultural environmentThe health-conscious social trends are encouraging the society to move out of the usual biryani burger calorie-laden combinations and explore cheese bread a viable snack & lunch time option.

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Operation Plans

It is the plan that how the product will be manufactured. As we are dealing in bread industry, we have introduced a baking unit and also hired qualified and well experienced labour from different areas, and are manufacturing bakery items in our baking unit.

Method of production:

We are manufacturing our Cheese bread in the same method like the other manufacturer but with innovation that we add melted cheese during the mixing of raw material and also the cheese flavor that makes our bread not only different but also delicious.

a) Scaling (Measuring) b) Mixing c) Baking d) Cooling e) Storing

Scaling:

All ingredients must be weighed accurately. Special care should be taken when measuring spices and other ingredients used in small quantities.

Mixing:

Mixing has three main purposes: The mixing of raw material.

Adding melted cheese and cheese flavor.

Baking:Now were ready to bake the dough. Several important things happen during this process. Oven spring is the rapid rise in the oven due to the production and expansion of trapped gases as a result of the ovens heat. The yeast is very active at first, but stops acting when the temperature

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reaches 140F. Then, coagulation of proteins and gelatinization of starches occurs, so the dough holds shape,. and finally browning occurs. Oven Temperatures and Baking Times: When the proper temperature is used, the process works so that the inside of the dough becomes completely baked while the crust achieves the desired color at the same time. Larger pieces are baked at a lower temperature for a longer time than smaller rolls.

Cooling:After baking, bread must be removed from the pans and placed on a rack to cool. This allows the excess moisture and alcohol that was created during fermentation to escape. Smaller rolls may be left on their baking sheets.

Storing:

Bread cooled once stored for 2 hours after packing and within 4 hours can be shifted to distributor’s rack.

Recipe of Cheese Bread:

Makes one 8-inch loaf and one long French loaf

This cheese bread can be baked either in a standard loaf pan or as a long French loaf to be served. Both are so good that we suggest you make one of each, saving the pan loaf for sandwiches.2/3 cup water1/3 cup butter, softened, 2 eggs, 3 tablespoons sugar, 1 teaspoon salt, 3 cups flour, 1 envelope yeast, 1 cup grated Cheddar cheese

Put the yeast in a large bowl and pour 1/2 cup of the warm water over it. After a minute stir with your finger to make sure the yeast is dissolved. Mix the remaining 1-1/4 cups water with the salt and pour it over the dissolved yeast. Stir in the flour, a cup at a time, and when the dough becomes hard to stir, turn it out onto a floured work surface. Let the dough rest while you clean out the bowl. Scrape up the dough and knead it for 10 minutes, adding more white flour as necessary, until it

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is smooth and elastic. Rub the cleaned bowl lightly with soft butter or vegetable oil and return the dough to it, turning to coat. Cover with plastic wrap and let rise until almost tripled in size, 2 to 3 hours. Punch the risen dough down and turn it out onto the floured surface. Spread it out and sprinkle the cheese all over. Then roll the dough up and knead it just long enough to incorporate the cheese into the dough. Grease an 8-inch loaf pan. Using about two-thirds of the dough, form a loaf and place it in the greased pan. Roll the remaining dough into a 10 to 12 inch long loaf and place on a baking sheet sprinkled with cornmeal. Cover each loaf with a kitchen towel and let rise until doubled in size-about 45 minutes. After the bread has risen for 30 minutes, preheat the oven to 450 degrees F. Place the loaves in the oven. Remove the French loaf after 18 to 20 minutes, when the top is golden. Turn down the heat to 350 degrees and let the pan loaf bake for another 10 minutes. Cool on racks.

Availability of Qualified Labor Pool

Qualified labor and employees are the backbone of any organization. If the labor is skilled and highly motivated then the success of organization is for sure. Our people are our assets.We know very well the importance of HR aspect. We are having Miss Sehrish Pervaiz as or HR manager. She selects and looks after the labor pool in order to ensure the success of our bread. All the people in bread manufacturing process are expert in their work.Our chief chef Mr. Akbar Sohail is very experienced person as he has been in food processing from last 10 years. He is having a degree in cakes and bread baking. Formerly he was working as chief chef at Avari hotel.Our material mixer Mr. Zahid Khan is also very good at his work and takes care of mixing the material in equal proportion.

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Processing officer looks after the whole manufacturing process and finally bread is packed under the supervision of packaging experts. They look after the hygienic and quality maintenance factors.

Employee Motivation:To keep running the business ways should be developed to retain the employees. Incentives should be given so that they perform even better. Compensation and reward system is an important tool to motivate employees.For employee motivations following points are kept in mind:

Provide a positive work environment. Make the employees feel as part of the organization. Appreciate the work of the labor. Provide training and development to increase performance. Give rewards and incentives.

Business Partnerships

Types of business partnerships:Formage is currently having partnership with Cakes & Bakes. It is a famous bakery and we are a part of it. They will be one of our major customers as well.For the raw material we are having partnership with some suppliers who will be providing us material at a reasonable price.Purpose of business partnerships:The primary purpose of partnership is that we are a new entrepreneurial firm. As such we are not having sufficient resources needed for a business. These partnerships will help us in gaining access to the market and result in cost saving also.

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Quality plays a key role in success or failure of any product or service. We will not compromise on the matter of quality. People are very health conscious nowadays. To assure that quality is maintained we will be having quality control check by Mr. Bilal who is also our manager R & D. Fresh material will be used and cleanliness of plant & machinery along with labors be focused upon. As a new firm we are emphasizing on quality to fulfill the quality assurance requirements of ISO 9001 and ISO 9002.The followings points are to be considered for total quality:

Process related philosophy Customer satisfaction Customer focus Top management commitment Continuous improvement Employees support and involvement

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Feedback

Customer Support

Gaining customer support depends on how well they perceive the product to be. How a firm interacts with its customers is first to be decided.

Customer Support Strategies:“Formage” is partnering with Cakes & Bakes because it is known to the people. People will find our product reliable and try it. This will be of great help to us.The purpose behind this is that we are the start up firm and we need experienced and trained salespersons who know how to deal with customers. We want to gain customer support. Once the customers begin to recognize our brand, it will be easy for us to carry on. In addition to this, we have developed a feedback feature in our website which will provide us the suggestions and customer feedback.

Customer Support Obligations:

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Bread is mostly used in morning time so it is our obligation that we supply bread on time to retail stores. To make sure on-time delivery we have an efficient transportation and distribution system.

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Overview of Financial Projections 

Formage (Pvt) LimitedPro-forma Income Statement (Projection)

Amount PKR ‘000

Notes

2009 2010 2011

SalesCost of Goods Sold

Gross Profit

Operating Expenses:Legal ExpensesMarketing ExpenseSalaries expenseDepreciation (10%)RentUtilitiesTotal Expenses

Operating ProfitLess: Tax (15%)

1011

12

36201200

56001856

75592505

2420 3744 5054

101,00036058

120300

-60040152

133395

-40042047

138450

1848 1581 1445

572

86

2163

324

3609

541Net Profit 486 1839 3068

Annexed notes are essential part of these statements.

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Formage (Pvt) LimitedCash Flow Statement

Cash Flow from Operations

Amount PKR ‘000

2009 2010 2011

Net ProfitAdd adjustment for non cash expense:DepreciationWorking Capital Adjustment:(Increase) / Decrease in InventoryIncrease / (Decrease) in Accounts payableIncrease / (Decrease) in Rent payable

Cash flow from operations ... (1)

Cash Flow from Investing ActivitiesFurniture & Fixture Short-Term Investments

Cash flow from investing Activities ...(2)

486

58

(179)5715

437

(1324) (1200)

(2524)

5,0000

5,000

1839

52

(324)38(5)

1600

00

0

0(500)

(500)

1100

3068

47

(596)40-

2559

00

0

0(1000)

(1000)

1559

53

Cash Flow from Financing ActivitiesShares IssuedDividend Paid

Cash flow from financing activities ...(3)

Net Cash Flow (1+2+3)

Opening BalanceBalance C/f

291329134013

40135572

Annexed notes are essential part of these statements.

Formage (Pvt) LimitedBalance Sheet (Projection)

AssetsAmount in PKR ‘000

Notes

2009 2010 2011

Fixed Assets:Furniture & FixturePlant and MachineryCurrent Assets:Inventory Advances & Prepayments

12

345

355575

60030

1200

302572

92434

1200

550746

152040

1200

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Short-term investment Cash

2913 4013 5,572

Total 5673 7,045 9,628Liabilities & Equities

Current Liabilities:Accounts PayableRent payable & Other payablesEquity:Issued subscribed and paid up capital (50,000 shares par value @ Rs.100/- each share)Accumulated ProfitDividend paid

67

8

9

15730

5,000

486

19525

5,000

2,325(500)

235-

5,000

5,393(1000)

Total 5673 7,045 9,628Annexed notes are essential part of these statements.

Notes to the Financial Statements:

1. Furniture & Fixture is the fixed assets and being depreciated at 10%p.a. Using straight line method on diminishing balance.

2. Company is purchasing its equipment and machinery from Data Mechanics by using Bootstrapping.

3. Company is importing its product from china and its lead time is fifteen days so company maintain an adequate stock to meet the demand of the customers.

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4. It represents merely 10% of the total sales.

[5. Company has excess cash in hand and to get the benefit of idol cash it

has invested it in short term deposits in various bank @ 10%.

6. It takes 15 days to receive raw material from Fazal Flour Mills and company get a supplier credit of 30 days that represents the accounts payable.

7. Rent is payable on 5th of each month so stands liability in balance sheet of the company.

8. Company issued 50,000 shares @Rs. 100/- each par value.

9. Company issued cash dividend of 10% in year 2010 and will issue another cash dividend of

20% in year 2011.

10. Sale is the product of quantity and sale price. Company will increase the sale price of its

Product after successful response in initial years.

11. COGS is the purchase price of material, labour and FOH.

12. Difference between the sale and CGS is known as CGS.

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Detailed Analysis of Dawn

Bread Industry in Pakistan

The bread industry in Pakistan has seen many changes in the last twenty-five years. It has emerged as a small-scale bakery processing industry to numerous industrial bread making units all over Pakistan. The bread industry in Pakistan is flourishing very quickly and bread products are gaining much popularity. Bread has been accepted as a popular substitute of rice, naan, chappati, paratha. Currently, 5% of the total population of Pakistan consumes packaged bread. The major factors for such a low percentage of people consuming bread are mostly economical and cultural. Pakistani diet consists of many substitutes for bread, which are cheaper and preferred over bread by a majority of the population.The political scenario as well as the legal scenario is not posing any threat to the bread industry is growth apart from the price restrictions, which actually fixed by negotiations between the government of Sindh and the committee of bread-making companies. The government is very enthusiastic about industrialization in the country and wants the foreign sector and private sector to take part in it. So any move towards industrialization and standardization is being encouraged, which ideally suits the existing as well as new comers in the packaged goods industry.

Dawn Bread

Dawn Bread a name that has come to signify quality and freshness in bread products. A success story that was written by a family that is committed to honest to goodness enterprise and concerned with the prosperity of the country. The enterprise, which made a humble beginning in late 1981, has, within a decade, grown to

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capture 35% of the consolidated market share of all bread products in the country, a fact that speaks volumes about the credibility of the company and its products.

Prior to the establishment of Dawn Bread, the largest producer of bread products was the public sector. However, this sector could not cope with the demands of the consumer and this when, perceiving a change in the eating habits of Pakistanis, Dawn Bread was envisioned.

Beginning with the plant in Karachi, commissioned in October 1981, Dawn Bread built-up a reputation for freshness, quality and taste. Creating awareness plus a demand for bread products, the second plant was commissioned in Islamabad in January 1985. Nothing succeeds like success, so next came the plant in Hyderabad in January 1987, a year that was to also witness the establishment of another plant at Lahore, in November 1987. In 1989 we established the plant at Multan. After consolidating this expansion, the sixth plant was commissioned at Faisalabad in February 1992. Now the customers can find Dawn’s quality and freshness from the southern tip of Pakistan to the Northern city of Peshawar.

CSRTaking a responsible place in society, the company is committed to the uplift and development of the society as a whole, and participates in sports and social welfare activities. Dawn also sponsors charity shows like puppet shows and on TV.

Market ShareThe market share of Dawn in the bread market ranges 60-65 %.

Products offered by Dawn Bread

Multigrain bread, Bran bread, Milky bread, White bread

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Distribution in Pakistan

Dawn group's distribution network comprises of over two hundred company system spread all over Pakistan. On a daily basis, they distribute to over a 10,000 retail outlets. This makes them one of the largest distribution networks for any product in Pakistan. They distribute in almost all the major metropolitan areas, secondary metropolitan areas as well as the rural parts of the country. Their network has been in the business of touching each of our 10,000 retail customers on a daily basis for the past twenty years.

Nutritional ValueThe plain white bread was one of the first products to be introduced in the Pakistani market by Dawn; the nutritional value of two slices of this bread is equal to five slices of Gourmet’s bread (in terms of calories, weight and vitamins)

Target MarketThe target market of Dawn Bread is the Upper class, Upper middle class & the middle class and is ranked “Number 1” in the market. Their competitors include Bunnies, Marigold, and Morgan.

StrengthsDawn Bread considers their biggest strength to be the customer loyalty of 25 years. For purpose of standardization, the company associated itself with FMBRA of United Kingdom in 1990 to bring itself in line with international standards of production, technology, machinery and formulation now, all the Dawn Bread plants boast of the latest machinery used in the bread-making process. They are managed by senior food technologists with decades of experience, while those manning the machinery are provided on the job training in congenial

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working conditions and ensure high quality of bread. A food inspector regularly visits the baking unit and production is monitored at all levels.

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Dawn bread catersAll Pearl Continental Hotels in Pakistan are provided cross on and Danish pastries made by Dawn Bread. The cakes used in the new cake ice cream of Walls are provided by Dawn. The muffins served in Subway are made by the Dawn Company.

Marketing ActivitiesDawn initiated heavy marketing campaigns after the launch of its bread but from one and a half year as new products were being introduced and expansion was in order, Dawn had to constrain its marketing activities due to limited budget and recession. Their main emphasis is on “in-store” activities. Dawn focuses on direct communication with customers & believes that advertisements consume a lot of budget therefore Promotions are done in magazines, events and in collaboration with other companies like McDonalds and Blue band.

They provide free gifts to consumers; they have Dawn’s branded Suzuki vans which move from street to street daily, each van is assigned 40-45 shops. Dawn also sponsors shows in Alhamra for marketing.When Dawn launches a new product it is tested by direct consumer surveys, the trial markets include the major outlets like HKB, Y-block DHA, METRO, Hyper Star as they cater Dawn’s target markets. A small scale production is done and provided at the above mentioned outlets, if the product is not accepted by the consumers it is withdrawn.The bread life of Dawn bread is from 48 to 72 hours, after which they take back the bread from the shops which is then used for feeding chickens etc.

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Acknowledgements

We are grateful to ALLAH ALMIGHTY, for enabling us to fulfill this tiring, but interesting job for the completion of our report.

The present project is submitted to Mr. Ali Rehman. We express our deep sense of indebtedness for his valuable advices and encouragement and for giving us very useful information that helped us a lot in completing this project.

We also want to pay a bundle of thanks to each and every person who has put indeed effort to make this project possible. It is also our duty to pay thanks to our parents for the moral and financial support.

All Formage Members

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