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Biscuit Industries Case Study

1098 Words5 Pages

Situation Analysis/Critical Issues –

Kanpur Confectioneries Private Limited (KCPL) is family owned business running from decades with high morals and principles. There is emotional attachment as well among the family members who wants to pursue the dream of founder to be the leading national brand. At present the business line is biscuits manufacturing under the brand name of MKG.

The main characteristics of biscuit industries are easy entry criteria due to low initial investment, requirement of less skilled labours, easy availability of raw materials, but due to this factor there was heavy competition as well. Competition has increased after the entry of unorganized players who are eating into the market share of organized big players.

KCPL was popular brand in northern region and is known for quality, crispness and affordable prices, it is mainly popular among middle class and semi urban families. It is among the leading brands in North India. …show more content…

So it was incurring a loss of “-----“, also it’s not possible for KCPL to increase prices as its not having a premium image even though the prices of raw materials and labour are increasing. Also absenteeism was major issue which affected production. In past few years competition has increased substantially due to entry of big players and unorganized players due to which KCPL is incurring losses due to which KCPL had to close down its candy unit in 1985. One other important factor for losses are that KCPL is always know to follow market trends rather than being proactive by reading market needs and

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