Implementing Innovation and Entrepreneurship
Discuss about the Implementing Innovation for Bakewell Biscuits Pvt. Ltd.
The report would suggest ways to implement innovation and entrepreneurship within the Bakewell Biscuits in India. A market research and analysis would be carried out to analyze the biscuit industry in the Indian market. Further, the consumer demand would help to develop strategy to grow the company’s market share in Indian market by applying the theories of product strategy, pricing strategy, brand positioning, brand resonance and other theories. The report would extensively make use of market research data to implement innovation within the company. Further, research and development process would implement entrepreneurship within the company.
Bakewell biscuits product range includes cream biscuits, crackers biscuits, chocolate biscuits, milk cake biscuits, wafer biscuits, ginger biscuits, glucose biscuits, candy, lollipop and bubble gum. Bakewell has a great scope for product line extension (Bakewell Biscuits, 2016). The target market covered by Bakewell Biscuits consists of children. Bakewell has an opportunity to explore the market segment of adults, youngsters and old aged people. Bakewell Biscuits could launch new brand for any of these market segments. In order to launch a new brand, the company would have to conduct research and analysis in the market before developing new brand.
The biscuit industry in India has witnessed a CAGR of 15.24 percent during 2011-15 and it has been estimated to grow at a CAGR of over 6 percent during 2016-21 (Wood, 2016). The discounts and offers by the companies have slowed down the value growth of this market. Glucose biscuits market has witnessed a saturation point because of changing consumer behavior and lifestyle. The standards of living have increased with the rising income of the people and consumers have shifted towards premium biscuit brands (Value Notes, 2014). Premium biscuits have become the first choice of the customer with the increasing disposable income of the consumer and inclination towards the processed and packaged food (AdAge India Bureau, 2015). The market share of premium biscuits is estimated to witness a growth by the financial year 2019 (Value Notes, 2014). The market industry players such as Britannia are thriving towards enhanced product packaging to lure the customer (Whitehead, 2015).
Further, from the study it has been found that the consumers have started becoming more health conscious which has led the biscuit companies to launch healthier brands. The companies have started introducing products with healthy ingredients to provide health benefits to the consumers. The consumers have begun to re-evaluate their diet plans and are switching to healthy food choices which are full of nutrition to prevent lifestyle diseases such as obesity (Itapu, 2017). Bakewell Biscuits also need to introduce a new brand in the market to grow its market share and move with the market trend.
Market Research and Analysis
From the market research and analysis, it can be evaluated that consumers are lured towards the premium biscuit brands which are healthy and full of nutrition. Youngsters have become more health conscious and are looking ways to enhance their physical appearance. Therefore, Bakewell Biscuits need to introduce a premium biscuit brand with nutritious ingredients to satisfy the market demands.
A premium brand product is introduced for a niche market segment with some attributes. A premium product could be chocolate cookies, tart, healthy biscuit. From, market analysis it has been concluded that Indians have become more health conscious which creates a need for a healthy biscuit brand. Now, there is a large segment for healthy biscuit brand which includes youngsters, female, diabetic patient and others. Bakewell need to target one of these market segments to grow its market share. Analyzing the market as a company consultant, the diabetic patient market is more profitable and has a potential to drive the growth of the company.
India ranks under top three countries with the highest diabetic population. There are 64.5 million people with diabetes in India (Mascarenhas, 2016). The disease is causing number of health problems in India which has become the diabetes capital of the world (Malik, 2016). The cause of the disease is unhealthy diet structure with low fibre and protein and high amount of sugar which leads to obesity and leads to health problems (Kaveeshwar and Cornwall, 2014). Thus, there is a strong demand for diabetes biscuits which are rich in protein and fiber.
A premium brand is priced higher than the economical brands to indicate that it has a higher value than the ordinary products (Ries, 2016). Premium biscuit brand would target the upper middle class segment which is more health conscious and work hard on their looks and appearances. The premium pricing strategy would be used to indicate the value proposition of the product to the consumers. The product packaging would make sure that it is attractive and is in aligning with the premium pricing strategy.
The product strategy would play a great role to meet customer requirement. The product would be specially created for the diabetic population which is very health conscious. The prescribed diet chart for a diabetic patient is rich in fiber and protein with low sugar. The patients are prescribed by the doctors to eat have tea with some snack. Oats is one of the healthy ingredients for diabetic patient which is prescribed by the doctors. Oats has great fiber content and reduces cholesterol and improves insulin resistance. Oats helps to metabolize the carbohydrate within the body to regularize the blood flow (NBC News, 2010). Bakewell Biscuits also need to launch oats biscuits as a premium brand product for the diabetic patients.
Analyzing the Market Demand
Primary segment is the segment which contributes to the major revenue generation of the product. The product would lure the diabetic patients and would help to grow the market share of the company. Therefore, diabetic patients would be the primary market of the oats biscuit product because they would contribute to the major revenue generation.
Secondary market segment is the segment which contributes to the extra income of the product. Though the product would majorly target the diabetic population, there would be other market segments who would also contribute to the product sales. The youngsters and adults who are conscious about their health and appearances would also be inclined to purchase the product.
The product would be positioned as healthy choice biscuit in the minds of consumers.
Brand Positioning Statement: ‘Healthy and Nutritious Biscuits. Prescribed by Doctors.’
The brand positioning statement would be the unique value proposition for the consumers as it would create brand resonance where consumer would be able to relate themselves to the product (Business Jargons, 2016).
Healthy and Nutritious would be the integral characteristic of the product and would be the key selling point of the biscuit. The consumers would be automatically inclined to purchase the biscuits because of its nutrition value and healthy ingredients.
After thoroughly analyzing the biscuit market, Bakewell Biscuits need to design a process for the development of the product which would consist of the following steps:
- Team layout and structure formation
- New product prototype samples preparation
- Assessing the sample product
- Developing a process
- Trial of product production
- Introduction of the product in the market
Bakewell Biscuits would need to establish a team to start its production process by preparing new product prototype and assessing the sample. The new product would be tasted in house as a trial. After proper sampling and testing the product would be introduced in the market with the marketing plan (The Biscuit Doctor, 2016).
The product would be distributed across the confectionaries, bakeries, medical shops and other retail outlets.
Conclusion
The report has successfully recommended the ways to improve the business of Bakewell Biscuits. The market analysis of biscuit industry in India shows that there is a huge demand for the healthy and nutritious product of premium brand in India because of increasing health consciousness amongst the consumer. Further, the marketing analysis also suggested that diabetic patients are increasing in India and causing many health problems among the people. This suggested a need to introduce a healthy product brand for the diabetic patients in India. The product strategy suggests creating a rich fiber and protein product with low sugar presence. Further, the report suggests that oats helps to reduce cholesterol level and stabilizes the blood supply in the body for a diabetic patient. Healthy and nutritious product would be the unique value proposition of the brand.
The product would be introduced as a premium product in the market to lure the upper middle segment of the people who are more health conscious. The premium pricing strategy would indicate the value of the product is greater than an ordinary product. Brand positioning statement helps to position the product in the minds of the consumer through creating an effect of brand resonance. Finally, a product development process would be designed by forming a team to monitor and control the production process.
References
AdAge India Bureau. (2015). How Biscuit Brands Are Playing The Premium Card In India. Advertising Age India. Retrieved from: https://www.adageindia.in/marketing/cmo-strategy/how-biscuits-brands-are-playing-the-premium-card-in-india/articleshow/46853621.cms
Bakewell Biscuits. (2016). Company Profile. Bakewell Biscuits Pvt. Ltd. Retrieved from: https://www.bakewellbiscuits.co.in/company-profile.htm
Business Jargons. (2016). Brand Resonance. Business Jargons. Retrieved from: https://businessjargons.com/brand-resonance.html
Itapu, S. (2017). Health-consciousness & increased awareness driving soy growth in India. Food & Beverage News. Retrieved from: https://www.fnbnews.com/Top-News/Health-consciousness–increased-awareness-driving-soy-growth-in-India
Kaveeshwar, S.A., and Cornwall, J. (2014). The current state of diabetes mellitus in India. NCBI. Retrieved from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3920109/
Malik, R. (2016). India is the diabetes capital of the world. The Times of India. Retrieved from: https://timesofindia.indiatimes.com/life-style/health-fitness/health-news/India-is-the-diabetes-capital-of-the-world/articleshow/50753461.cms
Mascarenhas, A. (2016). World Health Day: India among top 3 countries with high diabetic population. The Indian Express. Retrieved from: https://indianexpress.com/article/lifestyle/health/diabetes-cases-422-mn-worldwide-india-no-2-who-lancet-world-health-day/
Ries, L. (2016). Here is How to Position Your Product as a Premium Brand. Entrepreneur India. Retrieved from: https://www.entrepreneur.com/article/270935
The Biscuit Doctor. (2016). Management of new product development. Manley’s The Biscuit Doctor. Retrieved from: https://www.thebiscuitdoctor.com/home/153-new-product-creation/developing-a-new-product/534-management-of-new-product-development
Value Notes. (2014). Biscuits And Cookies Industry In India 2015-19. Valuenotes.biz. Retrieved from: https://www.valuenotes.biz/insights-publications/publications/biscuits-and-cookies-industry-in-india-2015-19/
Whitehead, R.J. (2015). Biggest biscuit consumer set for fast growth and premium charge. Food navigator-Asia. Retrieved from: https://www.foodnavigator-asia.com/Markets/Biggest-biscuit-consumer-set-for-fast-growth-and-premium-charge
Wood, L. (2016). India Biscuits Market Growth of 6% CAGR by 2021 – Analysis, Technologies & Forecasts Report 2016-2021 – Key Vendors: Anmol Biscuits, Parle Products, Unibic Foods India – Research and Markets. Business Wire: A Berkshire Hathaway Company. Retrieved from: https://www.businesswire.com/news/home/20160810005553/en/India-Biscuits-Market-Growth-6-CAGR-2021
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