Pink’s Doughnut HolesTim Jones, Ali Jones, Jessica Korneff, Emre Ergun, Ma Nan

Desire for western goods

Growing middle class

They enjoy sweet food

Snacks are finger food

Building on traditional Indian experiences

Coffee Shops

Barista

Cafe Coffee Day

Grocery Stores

Big Bazaar

Food Bazaar

Reliance

Roll out process

Challenge: 40% of population is vegetarian

Solution: Sunflower oil

Challenge: 30% of population doesn’t consume eggs

Solution: Egg substitute

Challenge: Higher rate of low income population

Solution: smaller doughnuts, less cost

Challenge: Increasing competitive landscape (Dunkin’ Donuts)

Solution: Our product will be more available, and our product will be placed in already popular locations.

Similar in taste and look to popular Indian snacks: Gulab Jamun

Enhancing the growing coffee culture

Portrayed as premium snack food, while keeping it affordable

Desire premium products

It adds to their perception of Western culture

Colorful and unique

American flavors

Traditional Indian flavors

Presented on a plate, or

Packaged

Product: Doughnut Holes, creative and unique to spark interest

Price: Two for $1, 44.4 Rupees

Place: Cafe Coffee Day, Barista, Big Bazaar, Food Bazaar, Reliance

Promotion:

Colorful billboards

Professional posters

Word-of-mouth

Sales promotions for the first few weeks.

Unique and environmental friendly packaging

Local Snack Food

Murukku (top)

Various Indian sweets(lower left)

Typical Coffee Shop

Muffins

Regular sized doughnuts: Only one option provided, the Choco Doughnut(lower right)

People ages 16-22

Fun, unique, American snack food

Young professionals

Quick, on the go, likely to utilize packaging

Family experience

Sweet food for the kids, and parents will enjoy

Form a joint venture: Bakeman’s Industries Limited

65% vs. 35% equity

What are we providing in this partnership?

Brand

Reputation

Recipe and Ingredient Contracts

Money

What are they providing in this partnership?

Production and distribution of our product

Legal:

Essential Non-Compete Clause

Joint Ventures are preferred form of FDI; there are no separate laws, treated as domestic companies

HR Plan:

Polycentric Staffing Policy: One U.S. manager oversees the project and hire local sales rep to market our product to possible partner chains

Biscuit Flour: Satara Roller Flour Mills Ltd., located in Maharashtra

Sugar: Shikha International, located in New Delhi

Sunflower Oil: Godrej, located in Maharashtra

Utilize Bakeman’s strong distribution centers to get product to end consumer

Bakeman’s distributes their products to the local distribution channels of the two coffee shops and three grocery stores

Goal is to get product to local distribution centers where the stores would otherwise be collecting products from

Targeting Coffee Shops: consumption and production of coffee is increasing by 61.5% out to 2015

Coffee Chains are growing in India, with an increased interest from foreign investors

Growth in food consumption

Confectionery sector has long-term growth potential, 72.8% out to 2015

2010 2011 2012 2013 2014 2015

Coffee Production ‘000 60 kg bags

4,793.48e

5,141.38f 5,242.89f 5,356.49f 5,495.27f 5,639.89f

Coffee Consumption ‘000 60 kg bags

1,731.51e

1,863.10f 2,020.49f 2,198.51f 2,403.86f 2,618.46f

e: BMI estimates, f: BMI forecastsSources: India Coffee Board, BMI

Every sector is increasing steadily out to 2015

Original price=0.5/donut hole

Price and cost change subject to a 16% annual inflation rate

Expecting fix cost for 2012 is $104,960

Expecting sales for first quarter is 84,000 units, quarterly sales growth rate implemented is 5%

Expecting Quarter Sales and Breakeven

Q1 Q2 Q3 Q4 Annual

Sales $42,000.00 $45,423.00 $49,124.97 $53,128.39 $189,676.36

Profit $3,760.00 $8,327.25 $11,103.73 $14,106.29 $37,297.27

Expecting Quarter Sales and Profit

Conclusion