Consumer First Choice Study

For
Cakes & Bakes
Prepared for
Ms. Nida Khan
Director of Marketing
Cakes &Bakes

Prepared by
Sana Ifthikhar
Consumer Consultant

Market research, Inc.

66 National Highway
Rehman Building
Mo 0300456783
January 15, 2013

Cakes & Bakes

20 Jasmeen lane

Lahore city, MO 0300-5567832 Tel.(0423)5478690

Fax (0423)778800

October 3, 2011

Ms.Sana Iftikhar,consumer consultant

Market Research,Inc
66 national highway road
Rehman Building
Mo 0300456783
Dear Ms.Sana
Subject: Authorization for Consumer first choice Study
You are authorized to study consumer first choice for cakes and bakes in Lahore city. The purpose of
your study is:
1. To provide a description of cakes and bakes consumers.
2. To analysis consumer perceptions of cakes and bakes as compared to the competition.
3. To determine if the present cakes and bakes variety of eatables is satisfactory for consumers.
I suggest that you survey shoppers who are entering large supermarkets chain stores in Lahore city.
Your sample should be randomly drawn.
As we have agreed a consulting fee of 50,000 Rs will be paid to Market Research Inc, on the
successful completion of this study and the submission of an acceptable report.
Your report should be submitted by January 30 2013. Please contact me if you need any further
information or guidance from cakes and bakes.
Sincerely,

Nida khan
Director of Marketing

Market Research,Inc
66 National Highway, Rehman building
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Cakes & Bakes

Mo 0300456783
Tel. (0423)55678800,Fax 789045

January 15, 2013

Ms. Nida khan

Director of Marketing
Cakes and Bakes
20 Jasmeen Lane
Lahore city, Mo. 03005567832

Dear Ms. Nida khan:

Here is the report you requested on consumer first choice for cakes and bakes in
the Lahore city.
We survey 150 randomly bakeries shoppers to determine who buy cakes and
bakes, how consumers perceive cakes and bakes as compared to competition
,what opinions consumers have on cakes and bakes packaging, and how cakes
and bakes increase its market values.
The survey results show that cakes and bakes are purchased predominantly by
college and school going students. Consumers who tried cakes and bakes think
that it has high quality and good taste. Consumers who disliked cakes and bakes
said that its price is too high.
Based on these survey findings, we recommend a strengthened marketing
strategy, increased television source of advertising.
Thank you for the opportunity to complete this market research for cakes and
bakes. I hope that you find the results valuable and that you will authorize
additional, similar studies in other market areas.
Cordially,

Ms. Sana Iftikhar

Consumer Consultant

Cakes & Bakes

Contents
EXECUTIVE SUMMARY............................................................................................ 5
I-Introduction......................................................................................................... 6
Background:....................................................................................................... 6
Statement of problem:........................................................................................ 6
Purpose of study:................................................................................................ 6
Scope:................................................................................................................. 6
II-Related literature:............................................................................................... 7
III-Procedures:........................................................................................................ 7
IV-Findings:............................................................................................................ 7
Cakes & Bakes consumers.................................................................................. 8
Competitors........................................................................................................ 8
V-Analysis:............................................................................................................. 8
VI-Conclusions and recommendations:............................................................................. 9
Conclusions:....................................................................................................... 9
Recommendations:............................................................................................. 9
APPENDIX-----STUDY QUESTIONNAIRE..................................................................10
Bibliography............................................................................................................ 11

Cakes & Bakes

LIST OF ILLUSTRATION

Figures
1. Cakes & Bakes consumers7
2. Competitors.......8

Cakes & Bakes

EXECUTIVE SUMMARY
To study consumers first choice Cakes and Bakes requested that Market Research, Inc
conduct a consumer preference survey in the Lahore City. The study was designed to describe
cakes and bakes consumer, analyze cakes and bakes consumer first preference, to determine
the adequacy of cakes and bakes packaging, and recommend improvements in cakes and
bakes media vehicles and advertising strategy. One fifty consumers entering supermarkets
were randomly selected and interviewed.
A related literature review showed that household incomes of cakes and bakes
consumers increased more higher in between 1996 to 2000, indicating the development of an
upscale market.
The survey revealed that cakes and bakes consumers predominantly were school and
college going students. Of the consumers who had eaten cakes and bakes, those who liked it
thought it had good taste and good value. Those who disliked it thought its price was too high
and too sweet.
In addition, the survey found that cakes and bakes consumers preferred more
enhanced packaging. Cakes and bakes should advertise with the help of television and media.
The analysis of findings revealed that (1) Consumers are pleased with the current
variety and food, (2) cakes and bakes had good taste and value, (3) advertising should target
the upscale market, and (4) television and print are the most successful media.
Based on the conclusion, it is recommend that cakes and bakes marketing strategy
should focus on the superior taste and quality of its sweets, cakes and bakes advertising
should be directed at the upscale market, the advertising should be primarily on television.
Cakes and Bakes packaging should be more enhanced and with a modified cakes and bakes
logo.

Cakes & Bakes

I-Introduction
This introductory section includes the background of the problem, statement of the problem,
purposes of the study and scope of the study.

Background:
Every company working on any scale has some background. This background includes the
company history and this history is all about how company started, at which scale it was
operated and how it got bigger. Any company report without its history is considered
incomplete.
Like any other company, Cakes & Bakes has its own background. The company was started
in 1974 with not as a chain but as a single bakery. At that point, it wasnt known as Cakes &
Bakes. This bakery was kept in operation until 1979 when the owner decided to go into
production as well. So, in 1979 a production company named Ajmer Foods was launched.
The main operations of this company were to prepare the food products mainly used in
bakery e.g. bread, patties, biscuits etc. and to distribute it in the other industry sectors where
they would buy it on bulk basis.

Statement of problem:
The focus of this study was to determine (1) selected attributes and consumer first choice (2)
improvements that could be made in Cakes & Bakes promotion and product packaging.

Purpose of study:
The purpose of your study is:
1. To provide a description of cakes and bakes consumers.
2. To analysis consumer perceptions of cakes and bakes as compared to the competition.
3. To determine if the present cakes and bakes variety of eatables is satisfactory for
consumers.

Scope:
The scope of this study included analyze of consumers first choice eating habits and Cakes
& Bakes competition. The study was limited was limited to Lahore city.

Cakes & Bakes

II-Related literature:
The literature on studies of consumer product preferences is extensive. Although this broad
expanse of research was generally helpful, two recently studies of consumers were found to
be valuable for this study.
In 2000 study by Adil Mirza, it was found that Cakes & Bakes have not use advertisement
and they didnt positioned themselves as their competitors did. His conclusion was that cakes
and bakes should target more of advertising to increase their market value and their sales
In 1996, Faisal Aziz surveyed consumers preferences on the packaging of products of cakes
and bakes. And they found the packaging should be more enhanced.

III-Procedures:
A survey was conducted using sampling technique to ensure randomization in the
respondents. It was determined statistically that a sample of one fifty bakery shoppers. The
procedures included these :
1- A questionnaire was developed that contain simple multiple choice questions
2- Teams of interviewers were stationed at three large super markets chain stores located
in Lahore city.
3- Interviews were conducted over a weekend.
4- The results were analyzed by a team of Market Research consumer consultant and this
report prepared.

IV-Findings:
These findings are presented using the study objectives as a framework. The section were
prepared describing consumer first choice of cakes n bakes to the competition, consumer first
choice of packaging and information on market and media.

Cakes & Bakes

Cakes & Bakes consumers

Cakes and bakes consumers

School going
students
55%

College going
students

45%

Competitors

Competitors
Cakes and Bakes

15%

Gourmet
45%

Doce

40%

V-Analysis:
Cakes and Bakes consumers in Lahore city area tended to be educated and belong to families
of good income. A very small amount of them are those having household income less than
30.000 Rs. The study found that the instant bake facility installed in 15 shops in the major
areas of city and when customers were made aware that the probability of getting instantly
baked products has rose up to90%, it has helped Cakes & Bakes in increasing their sales.
Cakes & Bakes are highly stressing on their quality and for them quality is all that matters.
Therefore they have come up with such a check and balance system that after every 8 hours
their bakery products are replaced with the fresh stock. It has helped Cakes & Bakes in
building brand equity as well as customer relationship.
In addition, this study shows that Cakes & Bakes didnt advertise when they came into the
market. They survived in the market because at that time advertisement wasnt considered a
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Cakes & Bakes

major source of attracting customers. But later on as new competitors entered the market like
doce and advertised heavily then it attracted the customers and hence bakeries felt that
advertisement in this sector is also very important. It had a major impact on the Cakes &
Bakes because they were failed to do so in the first hand.
Finally both this study and Adils study shows that in order to create a strong image of the
brand in the minds of the people, Cakes & Bakes should do substantial promotions on TVs
and Print Advertising. With the on growing popularity of web, the Internet advertisements are
taking rapid pace and this is the reason most of the companies are focusing on their online
presence and advertisements.

VI-Conclusions and recommendations:

Conclusions:
1- Cakes & Bakes consumers in Lahore city are from average income households.
2- Cakes & Bakes is considered to have good taste and to be a good value. Its prices are
reasonable.
3- Television and internet are the most successful advertising media for Cakes & Bakes.
4- More attention is required towards advertisement.

Recommendations:
1- As Cakes & Bakes emphasize a lot on their cakes thats why it is also a part of their
brand name. According to them they have cost leadership as well as specialty in that
particular sector. For that reason Cakes & Bakes should give the opportunity to the
customer to design their own cake on Cakes & Bakes website. Cakes & Bakes will
bake the desired cake for them and it will be delivered to them within 24 hours.
2- Cakes & Bakes should promote their best products by doing so they will promote
their strengths which will create a pull and customers will be attracted towards their
products. This will help Cakes & Bakes in making strong brand image.
3- In order to create a strong image of the brand in the minds of the people, Cakes &
Bakes should do substantial promotions on TVs and Print Advertising. With the on
growing popularity of web, the Internet advertisements are taking rapid pace and this
is the reason most of the companies are focusing on their online presence and
advertisements.

Cakes & Bakes

APPENDIX-----STUDY QUESTIONNAIRE
1- For each of the following characteristics, how would you describe Cakes & Bakes
Characteristics
A. Tasty
not tasty
tasty
B. Nutritional value
healthy
not healthy
C. Price
Inexpensive
expensive
2- Have you ever a Cakes & bakes product?
A. Yes
B. No
3- Have you ever seen or heard Cakes & Bakes advertisement?
A. Yes
B. No
4- If your answer to question 3 is yes, where?
A. TV
B. Radio
C. Other ___________

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Cakes & Bakes

Bibliography
Anon., n.d. Cakes & Bakes. [Online]
Available at: http://cakesandbakes.com
Anon., n.d. Cakes & Bakes Facebook Page. [Online]
Available at: http://www.facebook.com/CAKESnBAKESonline
Anon., n.d. Rozee. [Online]
Available at: https://secure.rozee.pk/company-details.php?compid=37019

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