Supply Chain

Management
Monginis- the Cake Shop

Submitted To- Ms.Harleen Sahni

Submitted By- Manali Thakkar

Upasana Singh
INTRODUCTION

Monginis traces its roots

back to its humble
beginning, to a time when it
was a favourite with the
Europeans in Mumbai. Little
excuse was needed for the
Englishman to pick up a
Monginis cake whenever
there was an occasion in his
family. A birthday, an
anniversary, a wedding or
even tea-time would not be
complete without Monginis.
The shop, located in
Mumbai's Fort area, was a favourite with Europeans. Run as it was by two Italian
brothers, Monginis was a must at every celebration. Even then Monginis cakes,
pastries and savouries were baked to perfection and were in great demand.

In the 1960s, Monginis was bought over by the Khorakiwala family and after that
history was made. By 1971, the
idea of having a nationwide
franchise network and reaching
out to customers in their
neighbourhoods was born.

Today: The 42,000-sq-ft HACCP

certified headquarters of Monginis
is the place from where all the
yummy stuff emerges from. It is
the nationwide headquarters, to
which all manufacturing and cake
shop franchisees report. It is the fountainhead of ideas that are good enough to eat.

The Monginis headquarters is also a model bakery with state-of-the-art

manufacturing facilities designed to produce a wide range of cakes, gateaux and
pastries, tongue-tickling savouries and a variety of any-time snacks. Here quality
assurance steps at each and every stage of the manufacturing process ensure
world-class soft n fresh cakes, snacks and baker's ware.

Monginis headquarters has a well-equipped lab and has gained the HAACP
certification since past 2 years for maintaining and assuring best of the Hygiene and
quality standards of our products and for our customers.
Core Vision : Every organization operates itself with a vision in their mind so
that the activities of each and every person involved with the organization leads to
same direction. The core vision of Monginis is as follows:

1. To help people celebrate their happiness and make those moments memorable in
their lives.

2. All Monginis products and services shall be offered with the same love, care
and affection as if; they were meant for the most beloved person (or a family
member).Creating value-for-money products without compromising on quality in
terms of taste or appearance.

3. Good intentions in dealing with one another amongst the stakeholders

(shareholders, suppliers, employees, franchisees, dealers and consumers) breed (or
yield) good products and services.

4. Our vision is to become a national cake company with one thousand Monginis
cake shops through forty manufacturing franchisee units spread over the metro cities
of India.

Core Purposes : “To help people express their happiness in a memorable way.”

Assist customers in conveying happiness to their loved ones in memorable and

personalized ways.

Core Values : Monginis follows a simple "doughnut principle" whereby the

customer remains that valued creamy centre around whose satisfaction all activity
revolves.

1. We shall make products, keeping in mind the feelings of the end consumer in
mind, be it son, daughter, father, mother and make the products with the same love
and affection as it were made for a family member. We strongly believe that good
intentions breed good products.

2. Value for money: We shall offer consistently value for money products.

3. Fairness: We shall be fair in all dealings with the stake holders (shareholders,
suppliers, employees, franchisees, dealers, consumers).

4. Monginis shall constantly strive to build strong relationships based on

understanding each other and mutual cooperation;
5. We shall value and respect the contribution of all Monginites from workers to
senior level managers, suppliers, service providers, franchisees and dealers.

6. Excellence: We shall constantly innovate and maintain excellence in our day-to-

day work and in the quality of the goods and services we provide.

Monginis is a major Indian pastry, cake and general bakery chain, based in 11 Indian
cities like Mumbai, Kolkata, Hyderabad and Cairo, the Capital of Egypt. The
Monginis brand name originated over 100 years ago, when 2 Italian brothers set up
a catering firm in south Mumbai.

Monginis catering service including

cakes, pastries and savouries were in
great demand. To the last detail,
complete with a wedding cake it was
Monginis that breathed life and fun into
the European wedding in Mumbai. After
it was bought over by the Khorakiwala„s
in 1960„s, the brand has remarkably
grown to become the national leader in
cakes.

In 1971, for the first time in India, a plan of having an exclusive franchise cake shop
was conceptualized. Mr. H.T. Khorakiwala, the founder president of national
association if bakery industry, who spear headed the operations, realized that to
grow it was necessary to focus on production standards and distribution. The retail
management was best left to the shop owners who were in a better position to offer
personalized services to the customer.

The success of the first franchise cake shop sparked off a getting up of a chain of
franchise cake shops all across India, which is nearing the 500 mark. Monginis has
emerged as one of the largest food store in India. At the sprawling 150,000 sq. feet
combined manufacturing facilities in Mumbai and its twin city Thane. The
organization today owns the state of art manufacturing facilities to produce a whole
range of cakes and bakery products both Owen fresh and supplied daily to all cake
shops.
MONGINIS CORPORATE CLIENTS:
Few of valuable and prestigious clients:

1. Indian Railways 13. Glenmark Pharmaceuticals

2. Titan industries 14. Kores India Ltd.

3. Wipro 15. MGL

4. Tata Group 16. CGSL – Citi Group Services Ltd.

5. GTL 17. Big 92.5 FM

6. Pantaloon Retail India Ltd. 18. Erica Pharmaceuticals

7. TCS 19. Saifee Hospital

8. Alkem Laboratories 20. Mahindra inter trade

9. Tata Teleservices 21. SAMSUNG electronics

10. Aditya Birla Group 22. LG ELECTRONICS

11. Patni Computers 23. ICICI prudential life insurance

12. WNS 24. Life style international

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities and Threats involved in a project or in a
business venture. It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are favourable and
unfavourable to achieve that objective. A SWOT analysis may be incorporated into
the strategic planning model.

Strengths:
1) Monginis Foods Pvt. Ltd. has been there for a long time almost for 4 to 5 decades.

2) It has good coverage; it has around 500 retail stores all over India.

3) Has acquired a name in the world of bakery, food processing and packaged foods
industry.

4) It has recently started offering home delivery and online booking and delivering
system.
5) Prices of their products are quiet reasonable as compared to its competitors.

Weakness

1) Monginis has fewer varieties in the range of cakes as compared to its

competitors.

2) There have been cases of lack of consistency in quality because of Monginis

being a franchise business.

3) Being a franchise business it has limited control over the location of the store.

Hence some of its stores are not strategically located.

Opportunities

1) There is an opportunity for Monginis to make its presence felt in the malls which

now-a-days becoming a strategic location for such kind of products.

2) Getting more varieties in their product range by proper market research.

3) More services can be added to boost sales further and make the brand name

stronger in the mind of the customers.

4) Promoting the online system properly by targeting corporates, NRIs, etc.

5) Getting in more customization options would be good for the customers.

6) Using the tag line what are you celebrating today? More effectively.
Threats

1) Monginis has threat from its competitors such as Buttercupp, TGB, 7 violettes,

Kabhi B, DangeeDums etc.

2)Cadburys and McDonalds are also a threat to it because they are also

positioning their products on the lines of celebration.

LIST OF COMPETITORS:

Kabhi B

ButterCupp

Blackone

Upper crust

Gwalia Sweets

Black One

Dangee Dums
MARKETING MIX OF MONGINIS

Product:
Monginis has wide range of products; their main product being fresh cakes for all
occasions. Monginis also has chocolates, pastry and cake and chocolates combo in
their product line. It also sells packaged cakes which are available at their stores and
also at other retail stores. Monginis also has different kind of breads and a variety of
snacks for dine-in customers in veg and non-veg variety. It has also started home
deliveries and online booking and gifting system.

sEvery area has a new hangout, a cake shop! The cake shops differ in variety,
quality, price and more. The oldest known brand of cakes is Monginis. This is brand
which owns the maximum
number of outlets in the city.
Some of the flavours of
Monginis include: Black
Forest, Dutch truffle,
Butterscotch and Pineapple
are some of the popular
choices. The range starts
from Rs.150 for half kilo
cakes and so on. There are
a variety of cakes one could choose from for their kid‟s special day. To mention a
few cakes, of fancy shapes like alphabets, numerals and cartoons.

The other famous cake shops are Buttercupp, TGB, KabhiB, BlackOne, Upper crust,
. The cakes can range from a minimum of Rs.150/ and go up till an approximate of
Rs.1500 too. A kilo of blueberry cheese cake is a total hit the season. For kids,
cartoon characters like Mr.Bean, Doremon, Ben10 etc are charged somewhere in
the same figures. They have the most delicious array of cream cakes, fresh fruit
cakes and a variety of fancy cartoon-shaped cakes. At Rs.400 a kilo for the fancy
cakes, it definitely is value for money. The new fantasies of personalised cakes are
'Photo Cakes'.

Monginis sells itself as "The Cake Shop ", producing ready-made as well as order-
made cakes for catering and carry-out. Individual cake slices are also kept in
Monginis stores for dine-in customers. Be it chocolate cakes or cakes in general,
Monginis has mastered the art of making cakes over a period of time. A specialist in
making cakes begins right from selecting right quality ingredients in precise
quantities, blending them together to the best of knowledge and baking to the level of
perfection. The soft and moist sponge so made is then sumptuously layered and
coated with cream flavored with dark chocolate or milk chocolate or with various fruit
flavours.

The chain sells both Indian and Western savouries including samosas, cutlets,
puffs and doughnuts. Apart from these, snack foods and breads are also sold at
Monginis shops. Monginis has a product line for diabetics, and offers themed
products during Diwali, Christmas, Easter, EID and other festivals.

Fast food Snacks include more than 50 items like Burgers, Pizzas, Patties,
Cornato (bread cone with garlic chicken), Cornizza (veg version), Hotdog & so on.

Monginis produce more than 30 different gateaux primarily in round, square and
heart shape both in egg and eggless category. Monginis has cakes in regular,
premium and super premium segments in which Black forest, truffle Dutch premium
Shimmer and premium Zanzibar are most popular cake family among customers.

2. Price
Price of Monginis cakes is reasonable as compared to its competitors. The prices of
cakes vary on their size. On an average a half kg cake would cost something around
200 and it goes up to a 1000 depending on the size and the flavor.

3. Place
Monginis cake shop is present in 12 major cities in India. It has around 500 retail
outlets or franchise all over India. All the cities have a production unit from which the
goods are supplied daily. Goods which are unsold are taken back by the company
and are given away in charity if in consumable condition or else destroyed.
Manufacturing Franchisee Network

CITY Year of Establishment No. of Cake Shops

Mumbai 1972 165

Kolkata 1991 115

Pune 1995 48

Hyderabad 1996 7

Rajkot 1998 10

Nasik 1999 10

Goa 2000 29

Baroda 2000 24

Ahmadabad 2003 19

Surat 2004 14

Orissa 2005 5

Now Monginis, after launching its 4th successful Bake Shop in Hyderabad is all set
to open the same in other cities. In the Bake Shop, customers will be able to view
freshly baked products coming out of the oven and cakes decorated in their
presence.

4. Promotion:
Monginis has used media such as TV, print, web, hoardings, etc. to advertise its
products. It regularly comes out with offers on festive occasions.

Recently to promote its cakes and chocolates it came out with a range of a special
cakes and chocolates for all those SSC (Xth Standard) students who passed out this
year. It has also planned for chocolate baskets for the boys and girls. The successful
boys can be gifted with a blue coloured basket filled with assorted chocolates and
decorated with a Doll (Boy). And, similarly the girls can be gifted with a pink coloured
basket filled with assorted chocolates and decorated with a Doll (Girl).
LOGISTICS MANAGEMENT

Logistics is the management of the flow of goods, information and other resources
between the point of origin and the point of consumption in order to meet the
requirements of consumers (frequently, and originally, military organizations).
Logistics involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging, and occasionally security. Logistics
is a channel of the supply chain which adds the value of time and place utility.

Logistics management is that part of the supply chain which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods,
services and related information between the point of origin and the point of
consumption in order to meet customer and legal requirements.

The backbone of any business is logistics. Monginis receives orders from the retail
shops in the night a day before and all the products are manufactured
throughout the night and the shops are supplied through company vans by early
morning. All the products need to be delivered within a span of 1 – 3 hours‟ time and
they follow the rule ferociously. All their vans are insulated and even carry insulated
shippers.

Some of the vans are refrigerated, which ply on the long routes. A single van
generally covers 3 to 4 Monginis shop`s orders so that they can deliver the orders
on time without any delays.

They have a set of guidelines for logistics and their staff in the shops. They are well
trained on these aspects and these guidelines are strictly followed. They also
conduct surprise audits, just to ensure that the quality of the supply chain is
maintained.

ORDERING SYSTEM

Initially Monginis retail shops had to follow the telephonic ordering system.

In this method they were provided a telephone help line number. The head of the
retail shop have a checklist of items which contained all the items which Monginis
prepares. The person has to place orders in different categories of cakes, pastries,
savories, and namkeens etc. as per their requirements for the next day.
This required manual efforts and was very time consuming method of order placing
as the person has to name each and every item he requires. Also there were
chances of mistakes being committed because of certain communication barriers
which could lead to losses both to the bakery and the retail shop. To replace this
method they came up with the fax system for placing orders. The fax system of
placing order was practiced for a long period when the need for more innovation was
required now with increasing use of technology and innovation in every sector,
Monginis has also come with a modern method for placing orders called as E-
ordering, this method involves placing orders through net. It involves use of the most
popular and appreciated way of communication that is internet. This method can be
much relied upon for quick placements of orders and does not involve any tedious
task.

Under this method, every Monginis retail shop has to load a Dealer Software
provided by Monginis in their computers. This software provides all the necessary
facilities for placing order like for example the time of order, any particular shape for
a cake, proper weights available in each category etc.

FRANCHISE MANAGEMENT
The success of Monginis may largely be attributed to the franchisee management
skills, starting from selection to servicing. The shops speak of its quality and brand
image. Monginis is the only bakery store which doesn‟t have its owned showroom,
their all outlets are franchised.

It starts from selection of the shop. The company looks into the location of franchise
shop, since it is considered as prime factor for driving sales.

Prime requirement for franchising includes minimum carpet area of 200 square feet
and a frontage of 10 feet.

Over all investment for franchise shop is 0.5millions along with which 10% per
annum is paid by the company.

The company has standardized format regarding the decor, principal colors,
infrastructure like display counters, air conditioner, micro oven and refrigerator.

The outlet is allowed to keep soft drinks and ice creams of companies having tie ups
with Monginis.
DISTRIBUTION
The distribution system of monginis for franchise shops is such that outlets should
have product replenishment atleast once or twice. Monginis provides for delivery
atleast twice daily, to franchise shops.

The second delivery is done so that the shop remains well stocked through the
whole day. The first delivery starts at 6:30 a.m. and ends at 8:30 a.m. and the
second delivery is done in the afternoon if needed. The second delivery ensures to
replenish the sold out ones and return the excess unsold stock.

Monginis assures its franchised outlet 100% return of unsold stocks. As such it
developed a forecast system to ensure right amount of production and low amount of
returns. Generally stock return of 3.4% to 5% is acceptable.

The company has never given any sales target to any shop. A monitoring system
has been developed to check that the outlets do not order for quantities that they
cannot sell.

The production department of Monginis is based on the sales forecasted. The

production department works in three shifts, i.e. general shift, afternoon and night
shift. Night shift bridges the gap between in the orders received from the outlets.

The below given flow chart shows the distribution process followed by Monginis.
PAYMENT
Payment is generally done every alternate day by franchisee, as they receive
payment in cash. For Payment on Internet Gateways are used.
We conducted an Interview with the owner of Monginis Ahmedabad. Below is the set
of questions that were asked.

Store Location-

Mrs. Deval Pathak

Monginis The cake shop

G-5, Ratnadeep Complex

Opp.Prernatirth Derasar

Satellite, Ahmedabad

Tel. No.- 079-40069990

1. What all services do you provide?

ANS: We provide services like „gift-a-cake‟ online, home delivery of cakes and
birthday party celebration assistance.

2. What kind of market have you found in India as far as chocolate, cake and
bakery products are concerned?

ANS: So far as cakes market is concerned, it is still growing, and there is a lot of
potential for further growth also. So far as chocolate market is concerned, we are
into boutique chocolate segment. As far as bakery products are concerned, we
always keep our focus on cakes.
3. Who are your target customers?

ANS: strong lower-middle class client base who are very loyal.

4. Which are the all-time favourite product?

ANS: butter cream and Black Forest.

5. Do you need replenishment during the day? Generally which products?

ANS: Yes. The pastries and other bakery items like Bread, Toast, Packaged cakes,

do get sold by Late afternoon. The new stock comes by evening.

6. Which products generally go unsold, that are send back?

ANS: Sometimes the Cakes that we make of 1 kg or 2 kg often remain unsold by
the end of the day. Reason being , People like to order in advance for the same with
their requirements. But Its needed to keep the stock ready for the customers who do
not place orders in advance.

7. What all training and support did you receive from the company as
franchisees?

ANS: Training was provided before the shops starts. Generally more of on the job
training is provided in the model shops. The technical assistance for the product
knowledge is generally given by the company‟s technical team. Also lot of support is
provided after the shop starts.

Our training needs more of on-the-job training which is provided in our model shops,
where most of our successful franchisees train the new franchisees. Our sales team
provides directions throughout the training programme and keeps providing
additional inputs wherever required. The technical sessions like product knowledge
are conducted by the company‟s technical team. Apart from extensive training to our
franchisees before the shop opens, we also provide a lot of support after the shop
opens till it stabilises, in terms of operations.

8. What type of Ownership you have?

ANS: It‟s a Franchise Store.

9. Which is the more successful business online retailing or shop retailing?

ANS: Online Retailing as it caters the market at larger space.

10. Do you Charge Extra for the Online Cake orders for deliveries ?

ANS: Product price mentioned is inclusive of delivery charges, local taxes and
transaction fees. Hence, no additional charges are applicable to the product.

11. What is the Lead time for Deliveries for Online Orders?

ANS: Lead time for deliveries is 3 working days.

12. Do you Deliever in all the cities In India?

ANS: NO. We deliver cakes only in our defined cities shown in the store locator.

13. Do you Refund Money in case of cancellation of order or if order is not

delivered on time?
ANS: Yes we refund if delivery is not on time. There will not be any refund of money
in case of incorrect recipient's shipping address / telephone number.

On account of unforeseen circumstances like floods / natural calamity / etc. The

delivery service may be withdrawn.

14. What is the delievery time around the day?

ANS: All deliveries are made during 12:00 to 6:00 Pm.

15. Where are products manufactured in Ahmedabad?

ANS: We have a factory in Naroda, Ahmedabad which supplies products to all

stores in Ahmedabad.

Siddharth Foods Pvt.Ltd

Div.Shikaarpuri food Products, Shed No. C-2

A/8, Plot No. 183/1, GIDC, Phase 1

Naroda, Ahmedabad.