Dawn Bread

Consumer Behavior Project Report

Competitor analysis

Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.

Given that competitor analysis is an essential component of corporate strategy, it is argued that most firms do not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called “informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every manager continually receives.” As a result, traditional environmental scanning places many firms at risk of dangerous competitive blind spots due to a lack of robust competitor analysis.

Competitor array

An Overview and Historical background

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 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

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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 our customers can find Dawn’s quality and freshness from the southern tip of Pakistan to the Northern city of Peshawar.

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 working conditions.

Taking 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.

We hope to continue to develop and maintain this relation in the future.

COMPETITORSBake Palour bread a major competitor of DAWN, runs neck to neck

competition, its market share all over Pakistan is almost the same as

DAWN.The reason being their heritage, Bake Palour is in market since 1926

but Dawn stills has a dominant market share only because their share inSEC A+

is exorbitant.BAKE PARLOUR in Karachi has a marketWONDER BREAD which is the 2nd most closest competitor of DAWN BREAD has a market share of 12%, VITA which almost negligible has a market share of 4%,

Different bread companies exercise different tools to boost up their sales,

DAWN for example employs a strategic alliance with UNILEVER

Pakistan, they together advertised their product i.e. Blue band and DAWN bread

showed together on different hoardings to capture

audiences attention towards consuming bread when they consume blur band.

That specific add was targeted at school kids.The sales are greatly accelerated by seasonal promotions. School and college students are the primary target market for the breadcompanies. The sales in the following period increase at substantial amount.

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Beginning August to December 15, and January 1 to May 25, sales increase by

15 to 20%. For instance Dawn’s seasonal sales

approximates to PAK RS120, 000,000 a day. Sales donor only increases, but

also decreases in off season by 25%. In RAMADAN the sales

goes down by 50%.

Bread business is a very volatile one, its very difficult to predict the right

demand. Sometimes by bread distribution, when not done properly, companies

can suffer a huge loss, because it is not only giving your bread a shelf space, but

it need to be sold, because retailers only pay or those which are sold, and the

rest are returned to the company. The average return in the industry is about 30

to 35%, which is a mere loss.According to primary research conducted, it was revealed that in low category there is very low brand loyalty, and consumer switch brand onday to day basis.

How Consumers Make Decisions for Goods and Services

Need Recognition

NEEDS

Dawn Bread is fulfilling two different types of needs of its consumers, with its wide variety of hygiene packed products.

Breakfast Snacks

BREAKFAST

For breakfast different people have different needs. Keeping in mind what consumers want, Dawn is providing the following;

Dawn Bread Dawn Buns Dawn Frozen Products (ready to eat)

SNACKS

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Our bakery operates 365 days a year to

ensure that our customers get nothing but

freshest baked loafs everyday. Setting

standards for others to follow, Dawn

continues to innovate and introduce new

breads so that our customers have a wider

choice available to suit their own life style

and eating habits.


During tea-time or any other time when you need refreshment, Dawn sweets and Dawn RUSKS are the best choices.

WHOSE NEEDS

Dawn is offering products to almost every individual, whether they are young, adult or old, everyone is important to the company. The target market is divided into two parts:

PRIMARY TARGET MARKET SECONDARY TARGET MARKET

Housewives who take the purchasing decision on behalf of their families.Expatriates. Those Pakistani living abroad.An individual who takes the purchasing decision in the family.

Indians, Bangladeshi, Sri Lankan and ArabsOther families in neighbors etc.

Information Search

Products Local Market International MarketBreads Karachi,

Hyderabad, Lahore,Faisalabad,Rawalpindi

-Buns -Sweets -Frozen United States, Canada, UK, Norway,

Germany, Switzerland, Japan, Korea, Singapore, UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, South Africa

Plain ParathaPotato Paratha

Onion Paratha -

PRODUCTDawn Bread is operation in four product segment. They are Bread, Buns, Sweets and Frozen

MULTIGRAIN BREAD

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Dawn's Multigrain bread brings you Nature's Best in a perfectly soft, grainy and textured loaf. Baked from a Special combination of imported grain full of natural flavor & aroma, this premium bread is a perfect companion to any meal, snack, and sandwich or just by itself.

BRAN BREAD

Add fiber to your life. Dawn's Bran Bread freshly baked for our health conscious customers. This bread contributes towards the daily intake of fiber to help maintain the right balanced diet.

MILKY BREAD

Made by the addition of milk, this oven fresh aromatic bread is made so that each slice contains the richest of texture and gives that extra taste.

PLAIN WHITE BREAD

This freshly baked and nutritious bread was one of the first products to be introduced in the Pakistani market by Dawn. Freshly baked and wholesome, this bread contributes to the recommended daily intake of essential nutrients that form a major component of a healthy and balanced diet. Made from the finest ingredients this multi purpose bread can be used for breakfast, lunch, dinner, snacks or whenever, with whatever you like.

HOT DOGS BUNS

Hot Dog Buns are growing in popularity by the day. Baked using the strictest of quality standards, our tasty product is made to be the freshest hot dog bun available in the Pakistani market.

FRUITY BUNS

An all time favorite breakfast alternative commonly known as Maska Bun, our Fruit bun still carries that distinct taste perfected by Dawn. Served with a luxuriant layer of butter or just by itself, the taste of this sweet treat will not let you down.

BURGER BUNS

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Through continued

research and

development and with the

commitment to provide

our customers with

nothing but the best,

Dawn was the first bakery

in Pakistan to go beyond

the fruit bun concept on

such a scale. Our bun

products are baked using

state of the art equipment

and internationally

recognized recipes

ensuring that you get

nothing but the best

Cakes; the artistic expressions of a baker. Dawn's cakes come in

many shapes, taste and sizes, from our cup cakes

to our mouth watering flavored loaf cakes, a

tasty treat indeed!


Our Oven fresh buns are a treat by themselves. Baked by using only the very finest of ingredients, and perfected by years of experience in the baking field, these aromatic buns make the perfect burgers. We also take pride in the fact that we are the official bakers in Pakistan for the largest fast food chain in the world.

STRAWBERRY & VANILA CAKE

Our tasty cup cakes made with only the best of ingredients. These little delights are simply a must have, good things do come in small packages.

SHORT CAKE


PINEAPPLE CAKE


MANGO CAKE


CUP CAKE

Our tasty cup cakes made with only the best of ingredients. These little delights are simply a must have.

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Whether it is Dawn's RUSKS or Cookies,

our baked products are guaranteed to

provide our customers with the Fresh

and Wholesome Goodness™ that they

have come to expect from Dawn

through the decades.

In line with Dawn's philosophy of

continues innovation, we are

proud to be the first to introduce

Dawn’s PARATHA. Our Paratha

provides the best of both worlds,

giving the same home cooked

tasted while providing the most

convenient preparation method

possible.


CHATPATA MIX VEGETABLE SAMOSA

Mix vegetable samosa is a traditional Pakistani savory pastry stuffed with spicy vegetables. This aromatic appetizer is a perfect harmony of flavor and texture. Stuffed with Potatoes, Peas, Cauliflower, Coriander and a wonderful mix of spices, these samosas are an exotic finger food choice for any occasion.

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PLAIN PARATHA VEGETARIAN

Griddle-fried flat breads are called "Parathas" and are extremely versatile. Roll up stir-fried meat or vegetables in them; quarter the breads and serve them with omelets. For a simple, rich indulgence, top a freshly made hot Paratha with a dollop of whipped butter, break off bite-sized pieces from the edge, and dip them in the melting butter.

ROGHNI KULCHA

The Kulcha is a traditional unleavened whole wheat bread baked in a clay tandoor (Oven). The distinct smoky flavor of the Kulcha is the result of the moisture dripping onto the hot charcoal in a traditional tandoor. The Naan is pressed against the sides of the pot with the use of a small pillow and is cooked by conducted heat. Incidentally, the familiar tear shape of Naan bread comes from the dough dripping down the sides of the tandoor. Good with any dish bring the tandoor to your table today.

WHOLE WHEAT PARATHA

Regular consumption of fiber is associated with risk reduction of coronary heart disease. In general, soluble fiber (of which oats are a good source) is the dietary fiber most linked to a reduction of cholesterol levels. Dawn's Whole Wheat Paratha is prepared with the finest of whole wheat flour, oat bran and margarine to give you the same great tasting Paratha, but better suited to a healthy lifestyle.

CHAI PARATHA

Capture the spirit and essence of the Peshawari Chai Paratha as made by Pathan dhabas (cafés) all over. This regional delicacy has been prepared as per the original recipe using only the very finest of ingredients to give you an authentic mouthwatering experience. The original aroma and taste! Takes only minutes to serve.

CHATPATA POTATO SAMOSA

Potato samosa is a traditional Pakistani savory pastry stuffed with spicy mashed potatoes. This aromatic appetizer is a perfect harmony of flavor and texture. Stuffed with potatoes, Onions and wonderful spices, these samosas are an exotic finger food choice for any occasion.

PURI

Puri is thin flat bread which after deep frying turns into a crispy golden brown bread. Puri can be served with pickles, spicy potato and chickpea curry or any other meal of your choice.

SHEERMAL

Sheermal is sweet flat bread baked in clay ovens which gives it a unique aroma and texture. It can be eaten plain or with any curry of your choice.

MARKET SHARE

MARKET SHARE OF DAWN AND COMPETITORSMARKET SEGMENT

DAWN BREAD

BAKE PARLOR

WONDERBREAD

HARRY'S OTHERS

(PRODUCT) 2002 2005 2002 2005 2002 2005 2002 2005 2002 2005

Breads 37% 39% 17% 19% 12% 15% 10% 12% 24% 15%Buns 65% 67% 8% 11% 8% 9% 14% 10% 5% 3%Sweets 30% 37% - - 10% 12% 12% 9% 48% 42%Frozen 30

%76% - 2% - 8% - 3% 70% 11%

Pre-purchase and Evaluation of Alternatives

DISTRIBUTION STRUCTURE

INDUSTRY DAWNChannel 2002

Turnover Share

2005 Turnover Share

2010Turnover Share

2002 2005 2010

Retailers 50% 43% 45% 55% 45% 42%General/Superstores 35% 35% 31% 30% 35% 30%Panshops - 2% 2% 0.5% .5% 1%Fast foods etc. 15% 18% 19% 14% 17 21%Exporters - 2% 2% 0.5 2.5 5%

Bakery-café 1% 1%

Outlet Coverage

No. of outlets covered by Dawn

Total outlets covered by Industry

DAWN BREAD 52.24

INDUSTRY 47.76

DAWN BREAD INDUSTRY

Outlet Coverage

Market Reach

Channels No. of outlets

Dawn's Outlets

Outlet coverage

Sale of Dawn's Outlets

Sale of Total Outlets

(Rupees)

Retailers 16185 5771 36% 2885500 8092500General/Superstores 21515 11833 55% 4733200 8606000Pan Shops 480 177 37% 35400 96000Fast-Food 9520 7140 75% 5712000 7616000Total 47700 24921 52.24% 13366100 24410500

Retailers Rs.500/dayGeneral/Superstore Rs.400/dayPan shop Rs.200/day

Fast food Rs.800/day

Average Shelf Share

INDUSTRY

31%DAWN BREAD

69%

DAWN BREADINDUSTRY

36.04 63.9

Market Share

Shelf Share * Outlet Coverage

Purchase

CUSTOMER BUYING CRITERIA

Non price attributes Weight DAWN BAKE PARLOR

ASHRAFI FOODS

Product RelatedTaste 35 34 30 23Flavors 20 17 15 12Packaging 10 8.5 7 6Product Design 5 3.5 3 2.5Ingredients 30 29 25 23Customer rating 100 % 92 80 66.5Performance gap 8 20 33.5Total 100% 100% 100 100Service RelatedFreshness 35% 34.5 34 30Advertising 10% 8.5 9 5Availability 55 54 53 47Customer rating 100% 97 96 82Performance gap 3 4 18Total 100% 100 100 100

Bread, Buns, Paratha, and Cakes which are consumed by al age groups. Companies are committed to providing branded products which consistently offer value in terms of price and quality.

55 %45 %

DAWN BREAD INDUSTRY

Sale of all products

Sale of dawn’s products

Market Share

The companies are subject to strict checks from the health inspectors as they come to check the health and safety standards of the production facilities.

Consumers rate the product on the basis of availability, taste, advertising and the flavors the companies are offering. DAWN BREAD is focusing more on new product development so that they offer consumers with a wide variety of breads, buns, parathas and cakes. DAWN BREAD has an edge over its competitor as it is differentiating itself with more product segments in the market.

Consumption

Channel Policy

Objective per Channel:

RETAILERS: Some retailers sell any brand of bread based on their own choice to the customer; Dawn should maintain strong relation with retailers so that they promote Dawn’s product more then those of the competitors.

GENERAL/ SUPERSTORE: Dawn should cater more general and superstore. They should increase their number of vans so that they can reach more superstores and make their product available at every general/ superstore.

FAST FOOD: Currently Dawn is in contract with McDonalds for using their buns. Dawn should build more contracts with other restaurants and capture the market.

EXPORTERS: Dawn can also enter into more international regions and introduce their products where people are not aware of such kind of meals.

BAKERY-CAFÉ: Dawn can plan to open its own bakery-café, where people can enjoy the environment along with the Dawn’s products that are oven fresh.

Channel Key ProductRetailers Bread, BunsGeneral/Superstores Bread, Buns, Cakes, Rusk, ParathaPan shops BreadFast-food BunsExporters Frozen ParathaBakery café Baked goods, sandwiches, soups, salads.

Consumption

Channel Policy

Objective per Channel:

RETAILERS: Some retailers sell any brand of bread based on their own choice to the customer; Dawn should maintain strong relation with retailers so that they promote Dawn’s product more then those of the competitors.

GENERAL/ SUPERSTORE: Dawn should cater more general and superstore. They should increase their number of vans so that they can reach more superstores and make their product available at every general/ superstore.

FAST FOOD: Currently Dawn is in contract with McDonalds for using their buns. Dawn should build more contracts with other restaurants and capture the market.

EXPORTERS: Dawn can also enter into more international regions and introduce their products where people are not aware of such kind of meals.

BAKERY-CAFÉ: Dawn can plan to open its own bakery-café, where people can enjoy the environment along with the Dawn’s products that are oven fresh.

Channel Key ProductRetailers Bread, BunsGeneral/Superstores Bread, Buns, Cakes, Rusk, ParathaPan shops BreadFast-food BunsExporters Frozen ParathaBakery café Baked goods, sandwiches, soups, salads.

Divestment

Consumers may have several motives for divestitures.

First, a consumer may divest (sell) product that are not part of its core operations so that it can focus on what it does best.

A second motive for divestitures is to obtain funds. Divestitures generate funds for the consumer because it is selling one of its products in exchange for cash.

A third motive for divesting is that a product’s "break-up" value is sometimes believed to be greater than the value of the product as a whole. In other words, the sum of a product's individual asset liquidation values exceeds the market value of the product's combined assets. This encourages firms to sell off what would be worth more when liquidated than when retained.

A fourth motive to divest a part of a consumer may be to create stability.

A fifth motive for consumers to divest a part of the company is that a division is underperforming or even failing.

WE HAVE UNDERTAKEN A SURVEY ON COMPETITOR ANALYSIS OF DAWN BREAD WITH OTHER BRANDS OF BREAD

S. no.

Attributes Weight age

Dawn bread

Bake parlour

Wonder bread

others

1 Quality 0.25 4.2 3.0 1.5 1.302 Freshness 0.20 4.0 2.5 2.0 1.503 Softness 0.12 3.5 2.7 1.3 2.504 Taste 0.08 6.2 2.4 1.2 0.025 Customer

focus 0.05 4.0 3.1 1.3 0.07

6 Availability 0.08 4.5 3.2 2.0 0.037 Price 0.05 2 2.8 3.2 2.008 Variety of

product0.08 4.8 3.2 1.8 0.02

9 Packaging 0.03 3.2 3.8 2.0 1.0010 Hygiene 0.06 4.0 3.9 1.6 0.05

Total 1.00 40.4 30.6 17.9 8.49

Documents

Dawn Bread