CHAPTER I: INTRODUCTION

1.1. Background
A bakery is an establishment that produces and sells flour-based food, baked in an
oven such as bread, cookies, cakes, pastries, and pies. Such items are sometimes
referred to as ‘baked goods’ and are sold at a bakery. Some retail bakeries are
also cafes, serving coffee and tea to customers who wish to consume the baked
goods on the premises. The art of baking is to take several different and separate
ingredients, and combine them to make a personalized, edible masterpiece and thus,
bakery is artistic and delicate. Baking is the technique of prolonged cooking of food
by dry heat acting by convections, and not by radiation, normally in an oven, but also
in hot ashes, or on hot stones. A person who prepares baked goods as a profession is
called a Baker. There are two main types of bakers: Commercial Bakers and Retail
Bakers. A Commercial Baker works in a manufacturing facility or a factory. They use
automated equipment and machines to mass produce goods in a consistent manner.
On the other hand, a Retail Baker works in a small shop or bakery. They produce
smaller quantities of goods to serve customers. This type of baker uses smaller
machines like mixers and has a wider variety of produced goods. They can also offer
in-store baking and basic cake decoration.
Baked goods have been around for thousands of years. The art of baking was
developed early during the Roman Empire. It was a highly famous art as Roman
citizens loved baked goods and demanded for them frequently for important occasions
such as feasts and weddings etc. Due to the fame and desire that the art of baking
received, around 300 BC, baking was introduced as an occupation and respectable
profession for Romans. The bakers began to prepare bread at home in an oven, using
mills to grind grain into the flour for their breads. The oncoming demand for baked
goods vigorously continued and the first bakers' guild was established in 168 BC in
Rome. This drastic appeal for baked goods promoted baking all throughout Europe
and expanded into the eastern parts of Asia. Bakers started baking breads and goods at
home and selling them out on the streets. This trend became common and soon, baked
products were getting sold in streets of Rome, Germany, London and many more.
This resulted in a system of delivering the goods to households, as the demand for
baked breads and goods significantly increased. This provoked the bakers to establish
a place where people could purchase baked goods for themselves. Therefore, in Paris,
the first open-air bakery of baked goods was developed and since then, bakeries
became a common place to purchase delicious goods and get together around the
world.
The history of bakeries in Nepal is relatively new. Even up to 30 years ago, it was
possible to count the number of bakeries in the Valley on one's fingers. Bread was the
main fare in these establishments, while its more fanciful counterparts were yet to
appeal to the masses. Now, every major city area and even trekking centers like
Namche Bajar has at least one bakery to boast of. Even local tea-shops have taken a
liking to displaying doughnuts and fruitcakes. Older bakeries say that when they
started out, their business was sustained by foreign customers so they used to cater
mostly to foreigners but now a substantially large number of locals also prefer bakery
products.
City lifestyles are changing and so are eating habits. The popularity of bakeries has
grown further with the belief that many consider baked items a healthier snack choice
than typically deep-fried items like samosas and jalebis and heart-stopping rasbaris.
Nepalese are also becoming more adventurous as far as bread is concerned. White
bread doesn't cut it anymore since people travel and acquire a taste for a variety of
breads, and look for it. Tuning themselves to the demands of their customers, bakeries
now provide sugar-free, egg-free and wheat-free products as well. Many bakeries
provide a small seating area so customers can enjoy the croissants with a cup of tea or
coffee.
Bakery products are becoming prominent day by day. They are very popular because
of its taste and simple to digest. Bakery items are usually loved by all. Nowadays
individuals have virtually no time to invest much on making breakfast it is the bread
and bun or biscuits which had occurred instead of other sorts of stuff. Honoring any
time of pleasure is incomplete with bakery items. People of all ages are affectionate of
different bakery products, because of their taste, color and easy to digest nature. They
eat and serve different bakery products in their parties and festivals. Celebrating any
moment of happiness is incomplete without bakery products.
Numerous researches has been carried out regarding bakery sectors around the world
from past many decades and till date, huge innovations and improvements have seen
on this sector. The studies regarding health concerns on bakery products, growing
trends in bakery sector, and other different researches regarding many concept and
term, SWOT analysis, importance, problems, difficulties and challenges of bakery has
been made.
Despite many research activities are prevailing in every commercial fields including
bakeries, similar advancements have been noticed in this sector. Many changes and
developments are seen worldwide in bakery area and so consumers are immensely
involved in consumption of baked products daily. Since human nature is ever-
changing, their interests and choices keep revising and so this business also needs to
move at same pace to match their preferences at right place and at a right time. The
basic trends in bakery innovation are related to health, pleasure and convenience. In
contrast, bakery sector in Nepal is yet to settle as compared to other nations but it is in
fact slowly developing and expanding. Throughout the country, bakery lines are
appearing in an increasing rate.
The massive growth of bakery sectors around the globe has stroked Nepal as well.
Nepali bakery market is elaborated from a huge manufacturing plant to a small street
retailer. Bakery patronage has a supernormal scope in Nepali market and it is indeed
the ideal choice for fresh start-up business plants. Nepalese are also immensely
consuming bakeries as breakfast, lunch, occasional treats, and moreover they consider
it as a perfect partner with tea/coffee. Therefore, my research focuses on preferences,
buying intentions, attitude and behaviors regarding local consumers of bakery
products.
1.2. Objectives
The main objective of the study is to understand the people’s perception and purchase
intention on bakery products in Kirtipur. This research is supported by other sub-
objectives and they are listed below:
1. To understand buying behavior of people towards bakery products in Kirtipur.
2. To identify the factors affecting people’s purchase intention on bakeries in
Kirtipur,
3. To understand proper management strategy for bakery product in Kirtipur.

1.3. Need and Scope of the study

There have been quite a lot researches on bakery sector worldwide and few in Nepal
as well. Because Nepal is on a stage of growth on bakery business and has covered a
wide range of market, bakery product is gradually being attached in people’s daily
lifestyles and thus offers a great scope in this line of business. The intent of this study
is to exclusively address food preferences of people; basically the bakeries in this
growing scenario of business and service commercialization. However, this study
will obviously help both bakery-business person and a consumer since this study
covers people’s buying behavior, expectations, buying concerns, major issues,
willingness, problems, innovations and purchase intentions.
1.4. Literature review
This chapter reviews literature from various sources for understanding different
concepts and terms from the viewpoint of customers in bakery sector. This review
helps to know the emphasis and direction of research, the time period of study, scope
and limitations of studies conducted and conclusions one can draw from the studies.
The review helps to identify the gaps in the earlier studies to avoid duplication of
results. Review of a few important research papers is made in the following
paragraphs with an important objective to identify the research gap that exists at
present.
Chladkova (2006) Chladkova’s paper discusses about internal environment of a
bakery and its analysis. The goal of this paper is classification and analysis of the
internal environment factor of the company using the value chain principle. The major
finding of the study showed that competitive advantages could be gained by
modernizing old operations. As per the result, for competitive advantage of a bakery
brand the most important are operations, activities associated with distributing the
products (delivery vehicles operation, order processing, scheduling) and marketing
(advertising, promotion, quoting) and sales (channel selection, pricing).
Purlis & Emmanuel (2010) in their study they presented a review regarding several
aspects of the development of browning during baking of bakery products, mainly
from an engineering point of view. As per the findings, the formation of color during
baking is due to the Mallard reaction, and caramelization of sugars. Besides the major
influence of this phenomenon on the initial acceptance of products by consumers, it is
responsible for other relevant changes occurring in food during baking, i.e. production
of flavor and aroma compounds, formation of toxic products (e.g. acryl amide), and
decrease of nutritional value of proteins.
Kenijz (2013) Kenijz’s research has focused on pectin substances and their functional
role in bread-making from frozen semi-finished products. The findings of the research
afford ground for concluding that pectin can be used as cryoprotectant in the
production technology of bakery semi-finished products. Application of pectin
increases gas-production and gas-retaining abilities of dough and has a beneficial
effect on unbound moisture distribution, thus helping to avoid formation of rough ice
crystals, which disrupt gluten structure, and consequently obtain a high-quality
product
Mallick (2013) in his paper he examined the prospects and potentiality of bakery
units in Odisha. The objective of his survey is to analyze the current marketing policy
of different Bakery units in Odisha and their bake products available in the market.
For his project different types of respondents were chosen likes, Bakery Units, Outlet
shops, customer, food processing expert and hotel management institutes for
collecting data for the project. He concluded that the trend of e-retailing of the bakery
products, aggressive expansion plans of the incumbents as well as technological and
ingredients advancement have been gaining ground in the sector and the availability
of improved raw materials, addictives, quality machinery and technological guidance
from reputed institutions, a small bakery can also produce international class bakery
products of great variety and sophistication and thus one can sustain a successful
Agro-Entrepreneur taking bakery as a commercial Agro Enterprise.
Jeong et al. (2013) in their study they examined the competition intensity in the
Korean bakery franchise industry and to identify the core competencies of the
industry are leading company, Paris Baguette.  PEST and Cross Impact analysis were
employed to investigate the industry`s external environment, and the results indicated
that ‘increased attention on corporate Creating Shared Value (CSV) activities’ is the
most influential factor among others. The analysis using the Five Forces Model found
industry rivalry and substitutes were the greatest threats. Multiple managerial
implications are suggested for practitioners in the marketing area, especially in the
saturated market environment.
Fremaux (2014) in her paper she intended to identify new market trends in the
European bakery sector. According to her paper, trends are moving towards clean-
label products. The bakers are now subjected to upgrade bakery processes, focus on
increasing health concern, declining artisans and in-store scratch baking and new
ingredient formulations. The expansion of modern retail and industrial; production are
stated as the major driving forces in this sector.
Zhou et al. (2014) In their study about introduction to baking and bakery products,
The biochemistry of the main components of wheat flour (proteins, carbohydrates,
and lipids) are presented and discussed with a focus on those properties relevant to the
banking industry. The major findings of the study states the role of water in baking
science is perhaps not fully appreciated by most of us, but all master bakers know that
water plays a major role in the art and science of baking. The bread manufacturing
process mainly consists of mixing, fermentation and proofing, sheeting, molding,
baking, cooling, and, if required, slicing.
Kiumarsi et al. (2014) in their study they worked in identifying the issues faced by
small-medium enterprise (SMEs) and provided some valid recommendations to
resolve the existing problems in bakery business in Malaysia. Its findings reveals that
SMEs have unstructured marketing strategies and needs enhancements in the area of
packaging, value add to the bakery products, focus on promotion and appropriate
advertising strategies.
Therkelsen et al. (2014) in their research they studied the energy efficiency
opportunities in the US commercial baking industry to examine energy use, using
process of energy, cost effective energy measures and energy management strategies
to improve energy efficiency in baking sector. According to the survey, energy
efficiency measures can reduce the energy costs of significant energy processes and
increase earnings predictability. This article summarizes key energy efficiency
measures relevant to industrial baking. Case study data from bakeries and related
facilities worldwide are used to identify savings and cost metrics associated with
efficiency measures.
Larive (2015) Larive’s paper has examined business opportunities in Thai bakery
sector. This report is done in cooperation with and commissioned by the Embassy of
the Kingdom of the Netherlands in Bangkok. Through the research, it has estimated
that the market grew at least ten percent per year during the past few years and will
continue to enjoy annual double digit growth of ten to fifteen percent in the short to
medium term as a result of increasing number of in-store bakery shops and retail
outlets. The study also presents the Thai bakery sector’s business opportunities in
three groups-trade opportunities, investment opportunities and technical cooperation
opportunities.
Moslehpour et al. (2015) in their research they examined the influence of product
characteristics, perceived services cape, perceived price, and perceived quality on
purchase intention. The total number of 400 Indonesians was sampled and data’s were
collected through questionnaire method. They used various statistical tools for data
analysis and measurement through which they found out those Indonesian consumers
gave more importance to product characteristics and perceived price. Their research
clarifies that most important factors that positively influence consumer perceived
quality and purchase intention are product characteristics (such as taste, texture, smell
and color) and perceived price.
Ratinger et al. (2015) in their research they investigated economic, social and
institutional factors which affect consumption and wastes of bread and bakery
products in the Czech Republic; if there are tendencies of the shift toward a more
sustainable consumption (reduction of wastes), and which role play producers,
retailers and consumers themselves in it. It is an explorative research to provide
information on the challenges in the investigation of sustainable food consumption
and food waste. Their research indicates that bakery product wastes are rather low
where bread was stated as the most wasted food by respondents.
Souki et al. (2016) in their study they aimed to understand the behavior of bakery
customers as well as their purchase decision process. A survey was carried out in two
stages. The first was a qualitative approach, based in interview involving 10 managers
of bakeries and 10 consumers based in Belo Horizonte, State of Minas Gerais, Brazil.
The second stage consisted of a quantitative and descriptive characterization. A
survey was also performed involving 465 bakery consumers.
Nashat et al. (2016) in their study on quality evaluation of bakery products they
summarized that  grading is an integral part in the bakery-producing industry and the
quality assurance methods used in the food industry only involved human visual
inspection so the decision is highly variable and the process is tedious, labor
intensive, and subjective. The advent of computer-based technologies, such as
machine vision, backed by powerful artificial intelligence has led to more automated
inspection and improved process control. This chapter discussed powerful artificial
classifiers and robust feature reduction techniques for the inspection of bakery
products.
Wang et al. (2017) their study tried to identify recent developments in gluten-free
bread baking approaches because baked items using gluten has proved to cause severe
health disease: A celiac disease; regarding human intestinal, malabsorption disease.
Their research has found that over the past decade, various alternative products has
been used to replace gluten, including cassava, potato, rice starches, cereals like
maize, rice or sorghum flours, and other innovative functional materials such as
pseudo cereals, legume, seeds, nuts and fruit-based ingredients .
Welch & Francesco (2017) their project argued coalition of partners led by regional
governments that work to promote and implement projects designed to produce local
economic and environmental benefits in the form of reduced energy consumption and
greenhouse gas emissions; strong local economies; improved public health; and new
green jobs. The initial objective of their project was to help underprivileged rural
communities in the Kisarawe district of Tanzania, by implementing a solar bakery.
The project has led to the creation of an MSME (Micro, Small and Medium
Enterprise) known as Kazimzumbwi Eco Bakery, which provides direct and indirect
employment to Kifuru society addressing women and youths. The woman’s are being
able to generate a stable income while preserving the environment and maintaining
their health. The implementation of solar bakery has saved 150 tons of wood
annually, which results in the reduction of 277 tons of greenhouse gas annually.
KC (2017) in his study he has examined the scenario of Nepali bakery market of then
and now. He claimed that about 95% of their customers used to be foreigners. But
now, about 60% of the customers are Nepali. He said that Kathmandu’s bakery
culture has been rising among locals in recent years, coinciding with a change in food
habits among Nepalese, who are starting to eat more western-style food. He added
that the consumption of wheat in Asia has grown up about 15% in the last three years.
Nascimento et al. (2018) in their study they search for a better way to extend the
shelf life of bread by using ecologically preservation techniques as alternatives to
chemical additives. Considering all that was presented in the study, bread
manufacturers have been increasingly producing “clean label products” which fit this
healthier lifestyle of customers. Food labels of such products have claims such as “no
preservatives” or “natural” and thus the inclusion of 'clean label' continues to drive
health-focused new product developments
Bhattacharya et al. (2018) in their study they analyzed assessment of physical and
psychological parameters among the male and female bakery workers from Palpa
district of democratic Nepal. This study was conducted in the Palpa district of Nepal.
78 male and 44 female bakery workers aged between 30-39 years were chosen for the
study. The result suggested that both male and female bakery workers showed
abominable conditions, especially the female bakery workers. Hence, there must be
some acts to save them by introducing some occupational aids or planned work
designs for sustainable economic development.
1.5. Research Methodology
Research methodology is the technique used to identify select, process and analyze
information about the topic. 50 respondents’ i.e. local people of Kirtipur are selected
on the basis of purposive sampling method that lies under non-probability sampling.
The structural as well as semi-structural questionnaire was prepared with both closed
and open-ended questions to gain information on mentioned objectives.

1.5.1. Research Design

Research design is the set of methods and procedures used in collecting and analyzing
measures of variables specified in the research problem. It is in fact a framework that
has been created to find answers to research questions. The design of a study defines
the study type that can be descriptive, correlation, semi-experimental, experimental,
review, meta-analytic etc. Among the approaches, descriptive research method is
applicable in this study and under descriptive methods; survey method is used to find
the answers to research questions.

1.5.2. Study Area and Sources of Data

The study area of this research is at Kirtipur which lies at the south-west of the
Kathmandu city. This area is selected to know the people’s purchase intention,
awareness and behavior towards growing commercial bakery sector. The picture of
study area is pasted below:
 Figure 1: Study Area
Enclosed by the study area, this study uses method of primary data collection to meet
the objectives of the study. Primary data source is used for the collection of data as
the study is concerned with the purchase intention of people regarding the bakery
products which is by nature dynamic and which cannot be fulfilled with secondary
data.

1.5.3. Population and Sample

The population of this project represents all the people who are involved in
consuming the bakery items. From a mass of population, 50 respondents are selected
who are bound by the study area, Kirtipur. These 50 respondents are the sample of the
study and their responses are valuable information for this study and thus we consider
all the gained information through sample is on behalf of whole population,
representing the whole population.

1.5.4. Sampling Procedure

Sampling procedure accumulates probability sampling technique and non-probability
sampling technique. In this study, we select purposive sampling techniques under
non-probability sampling. Purposive sampling is also termed as judgment, selective or
subjective sampling.
1.5.5. Pretesting of questionnaire
The questionnaire was pre-tested on five respondents of Kirtipur in order to check its
solidity and validity before the main survey (actual data collection) among fifty
respondents were executed. The prior reason behind survey pre-testing was to avoid
ambiguity on some survey questions. From the pre-test, it is obtained that some of the
question’s answer options could have more than one appropriate answer. So, some of
those questions are made accessible for multi choice options. Questions are only
edited in terms of requirements and so there is no case of removal of any questions
from the survey questionnaire after pre-testing them. As per the responses driven out
from pre-testing of questionnaire, some questions were revised and edited to bring out
the actual final questionnaire.

1.5.6. Method of Data Analysis

The study uses primary sources of data and the questionnaire was divided into four
sections:-
Section A: Information regarding research and researcher
Section B: Buying behavior of people
Section C: People’s purchase intentions
Section D: Proper management strategies.
Questions were structured with regard to the objectives to effectively meet the
required aim of the study. The surveyed data was initially recorded into excel and
then analyzed as per the need and necessary coding, recording, adding and
calculations of variables was done in excel and then the information was represented
in this report in the form of statements, bar diagrams, table, pie charts etc. The
processed data were then categorized into contents, sub-contents and finally
summarized to give this report a meaningful shape.
 CHAPTER II: DESCRIPTIVE ANALYSIS

2.1. Socio-Economic Characteristics of Respondents

The socio-economic character relates with the interaction of social and economic
factors to better understand how the combination of both influences something. The
degrees to socio-economic factors of respondents are demonstrated based on
following measures:
Gender
From the study among fifty respondents, nineteen respondents are female and thirty-
one of them are male. It seems that males are often used to consuming more bakeries
than female because maybe male are more kind of outgoing like going to cafes and
hangouts after a tiring day or works than female. The contrast among male and female
in the study is represented in the bar diagram below:

35

30

25

20

15

10

0
male female

Figure 2: Gender

Age group
Majority of youths are found consuming baked products maybe because of tight
schedule of their professional life or maybe because they have their own pocket
money and they are usually outgoing in this age group of 20-30’s. The young age
grouped ones are found to be more curious about new innovations even on food; its
taste and appearances. The degree of age group of respondents of the study is shown
by the table below:
Table 1: Age Group
Age (years) Tally Frequency (f)

10 – 20 |||| |||| |||| 15

20 – 30 |||| |||| |||| |||| |||| ||| 28
30 – 40 || 2
40 – 50 |||| 4
50 – 60 0
60 – 70 | 1
Total ∑f=50
Source: Survey Data 2018

Level of Education
Hundred percent of the respondents are formally educated and so they seek healthy
baked products that are reasonable and fresh. When people are educated, they can
differentiate between what is right and wrong and what is good and bad with regard to
their personal hygiene, health, safety, quality and costs. The level of education of the
respondents is portrayed in the figure below:

25

20

15

10

0
Secondary Higher secondary Bachelors degree Masters degree
 Figure 3: Level of Education
Vocational Training
Quite a few respondents have received vocational trainings regarding the use of
bakery products as per the figure shown below:

yes; no.; 5; 10%

yes
no
no; no.; 45; 90%

Figure 4: vocational training

The special trainings regarding proper consumption of bakery products are seemed to
be inappropriate for consumers because the influence of Medias like television, social
sites etc. have immensely helped consumers to be in touch with modern trends,
innovations, benefits and brands. So, even without trainings consumers today are able
to choose and refer products wisely.

Marital Status
The study shows that unmarried people are more likely to consume bakeries. Since
they are unmarried, they are open and free to make their own choices and without any
influence of others like husbands, in-laws etc. in making decisions. However, even
after marriage bakery products are still preferred but less as compared. It might be
possible because after marriage, normally people are more concerned about their
family expenses and for bakery products, they may be consuming it only on some
occasions or celebrations.
 Unmarried

Married

0 5 10 15 20 25 30 35 40 45

Figure 5: Marital status

2.2. Buying behavior of people
Buying behavior is the decision processes and acts of people involved in buying and
using products. In case of bakery product, time has played valuable role in
consumption behavior of buyers. In Nepal, people have habit of having tea/coffee
once in the morning and also in the evening. Since people treat bakeries as a best
friend to tea/coffee, many are used to consuming baked items in morning and
evening.
 doesn’t matter; Series1;
17; 30% morning; Series1;
26; 46%

morning
midday
afternoon

evening; Se- evening

ries1; 8; 14% doesn’t matter
afternoon; Series1; 4; 7% midday ; Series1; 2; 4%

Figure 6: Bakery consuming time in a day

Besides consuming bakeries in different times of a day, the table below represents the
consistency of buying such baked goods:

Table 2 : Consistency of buying baked goods

Consistency Tally Frequency
Everyday |||| |||| ||| 13

Couple times a week |||| |||| |||| | 16

Once a week |||| |||| |||| |||| 19

Once a month 0

Occasionally |||| |||| |||| |||| |||| |||| 29

∑f=77
Source: Survey Data 2018

The question is multiple choices and hence the total exceeded fifty in the above table.
However, even people consume bakery products daily or weekly, most of the people
are consuming bakeries on occasions. It seems that people consume normal bakeries
on regular basis and consume extraordinary bakeries on occasions which is
comparatively expensive than regular ones. The western culture have highly
influenced Nepalese and they are adopting and revising the actual culture basically in
the case of celebrations and treats and so does the influence and attractions towards
bakeries. Massive consumption of baked goods are on occasions because western
culture have influenced Nepalese and thus they prefer baked goods like cakes,
pastries, cookies, pies etc. on occasions like birthdays, anniversary, engagements,
marriage functions, baby shower, farewell for friends, graduations etc. The modern
culture have ignored the use of egg, fish, meats etc. for ‘sagun’ and have replaced it
with bakery items like cakes and cookies.
The study also shows that the respondents choose a bakery product based on freshness
and price more than its appearances. Some other important factors while choosing
bakery product is said to be ingredients and brand of the item. As per variety of
choices on bakery product, the price also differs and so the per month spending of
respondents on bakery product are summarized in the table below:

Table 3: Per month spending on bakery products

Rs. Tally Frequency(f)

0 - 1000 |||| |||| |||| || 17

1000 - 2000 |||| |||| |||| ||| 18

2000 - 3000 |||| |||| 10

3000 - 4000 |||| 4

4000 - 5000 | 1

Total ∑f= 50
Source: Survey Data 2018

The table above shows that many of the respondents normally consume around
Rs.1000-2000 per month of bakeries where eighty percent of the respondents do not
find any difficulties while locating and purchasing the bakery products. The twenty
percent of them have mentioned the difficulties due to reasons mentioned below:

● Lack of quality and proper hygiene

 ● Product freshness

● Costly

● Lack of sufficient quality retailer

2.3. Purchase Intention of People

Purchase intention is described as the possibility that consumers will plan or willing
to purchase certain product or service in future. Intention constitutes a willful state of
choice where one makes a statement as to a future course of action. Costumer’s
willingness to buy a bakery product is highly affected by its prices because bakery
product uses various materials that are usually costly and usually baked goods comes
off a bit high charges for fewer quantities. Most of the respondents are however
satisfied with the price of bakery product as per what they get because they
understand and know the reason behind it.
30

25

20

15

10

0
Satisfied Not satisfied

Figure 7: Consumer satisfaction based on price and quantity of bakery product

According to the survey, the major reason behind charging high prices on bakeries is
due quality bread and expensive materials requirement to prepare bakery as per order
and preference of customers. The availability of variety of choices has made people
choosy in the matter of their product preferences. The various types of baked products
preferred by the respondents are shown in the diagram below:
 low on alories; no.;
12; 19%

normal bread; no.;

sugar less; no.; 7; 28; 44%
11%
normal bread
gluten free
eggless; no.; 8;
wholegrain
13%
wholegrain; no.;free;
gluten 5; no.; 4; eggless
8% 6% sugar less
low on alories

Figure 8: Types of preferred bakery item

The pie chart shows that nearly half of the respondents prefer normal bread and
remaining also prefer bakery items that are low on calories, sugarless, eggless,
wholegrain and gluten free. The consumer today has been more concerned towards
their health and fitness and hence they tend to control their daily diets. Before
consuming any product, people has leaned on ingredients of the product rather than
the appearance and appealing products. People prefer normal and healthy products
over those that contain calories, sugar; fats etc. which would hamper their fitness and
diet plans. More than the product type, consumers also stick towards a trustworthy
brand or bakery shops as well. Furthermore, the types of bakery manufacturer
preferred by the respondents are summarized below:

Table 4: Types of preferred bakery manufacturer

Large baking In-store bakeries Street retails It doesn’t matter
companies
5 18 5 22

Source: Survey 2018

As far as the preferences of bakery items and manufacturers, most of the respondents
are consuming bakeries from anywhere they get them as per their need whereas many
of them also consume from in-store bakeries. In-store bakery is a place where bakers
prepare and sell bakery products so freshness and hygiene of the product is always
conditioned. So, more people are willing to buy from in-store bakery since they could
get fresh and healthy baked goods.
2.4. Proper Management Strategy
The study shows that bakery stores should focus on proper management strategies;
better marketing and supplier’s chain improvement in order to optimize the growth of
bakery business. The role of government is also found to be equally important since it
helps to guide and regulate firms through constitution (law and acts) and also
punishes the law breakers. Similarly, the responses of the survey about better
management strategies for enhancing bakery consumption are seen in the following
ways:

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Cost convinence variety in flavor variety in taste health concerns

Figure 9: Better Management Strategy for Enhancing Bakery Consumption

Moreover, other factors to improve in these sectors are said to be a proper knowledge
management, self awareness, new ideas, quality control checks, proper
communication, consumer satisfaction and profitable government policies.
2.5. Major Findings and Discussions
Data presentation and analysis are done on socio-economic characteristics of
respondents, people’s buying behavior, people’s purchase intention and proper
management strategy for bakery products. Among these, the major findings and
discussions are highlighted below:

● 62% of the respondents are male.

● The highest age group of respondent is 20 – 30 years occupying 56% of the total

respondents.

● None of the respondents are illiterate.

● 78% of respondents are unmarried.

● 90% of the respondents have not received any of the training regarding use of

bakery products.

● 58% of respondents buy baked goods for occasions and celebrations.

● 60% of respondents consume bakery items in the morning and evening.

● None of the respondents are found to be buying bakery items online.

● 70% respondents choose to buy from local bakery stores.

● 64% of the respondents choose freshness on bakery product.

● 90% of respondents do not find any difficulties in locating and purchasing bakery

products.

● 40% respondents are not satisfied with the price of bakery product as per the

product quantity.

● 44% respondents prefer normal bread.

● 26% respondents have no particular reason for consuming bakery product.

● 36% respondents choose in-store bakeries to buy baked products.

● 42% respondents drag major health concerns on bakery consumption.

● 22% and 18% respondents like variety in flavor and taste of bakeries respectively.

● 26% respondents are likely to preorder baked goods.

 CHAPTER III: SUMMARY AND CONCLUSION

3.1. Summary of the study

A recent study has placed bakery line of business in a growing stage and in a state of
greater potentiality. In Nepal, Bakery products are becoming prominent day by day.
They are very popular because of its taste and simple to digest. Bakery items are
usually loved by all. Nowadays individuals have virtually no time to invest much on
making breakfast it is the bread and bun or biscuits which had occurred instead of
other sorts of stuff. Honoring any time of pleasure is incomplete with bakery items.
People of all ages are affectionate of different bakery products, because of their taste,
color and easy to digest nature. They eat and serve different bakery products in their
parties and festivals and recently, celebrating any moment of happiness is incomplete
without bakery products.
The main objective of the research is to understand the people’s perception and
purchase intention on bakery products in Kirtipur and specific aim of it is to identify
the factors affecting people’s purchase intention and buying behavior towards bakery
product followed by the objective to understand the proper management strategy for
bakery products in Kirtipur. To achieve the research objectives, a questionnaire has
been formed that could serve best to fulfill the research objectives. The target sample
was 50 respondents and primary sources of data have been used in the study. Primary
sources were used to collect the information from the respondents through survey
questionnaire method. The questionnaire was pre-tested on respondents of Kirtipur to
check and identify their reliability and validity before the main survey is held. It is
done just to avoid the ambiguity of some of the questionnaires content.
Data presentation and analysis are done on socio-economic characteristics of
respondents, buying behavior and purchase intention of them along with the proper
management strategy to enhance bakery product and business in Kirtipur. From the
data analysis, it is found that sixty-two percent of them are male and thirty-eight
percent are female. The highest age group is 20 – 30 years occupying 56% of the total
respondents and the lowest is the age group of 50 – 60 years with no respondents.
Thirty-nine respondents are unmarried and eleven are married and thus none of the
respondents are divorced or widowed. 90% of the respondents have not received any
of the training regarding use of bakery products
From the study of buying behavior, it is found that majority of the respondents eat
bakery items in the morning and evening. It is found that thirty-five respondents buy
bakery items from local bakery stores and sixteen respondents buy from retails and
only one respondent buys from a factory. None of the respondents are found to be
buying bakery items online. Similarly, 64% of the respondents consider freshness,
12% consider price, 11% consider ingredients, 6% consider brand and 4% consider
appearance as the major important factor while choosing a bakery product. The
highest amount spent by the respondents on the bakery product is found to be Rs.
1000-2000. Forty out of fifty respondents do not find any difficulties in locating and
purchasing bakery products.
From the study of purchase intentions, it is found that nineteen respondents are
satisfied with the price and thirty-one respondents are not satisfied with it. Majority of
the respondents prefer normal bread and in store bakeries and from the study of
proper management strategies, 42% respondents think that major health concerns
would be the better management strategy for enhancing bakery consumption laid by
other strategies like variety in flavor, variety in taste and cost convenience.
According to the respondents, for the growth of bakery business, bakery stores should
focus on fresh, hygiene, variety, quality and affordable baked goods. Customers
should focus on proper choices and be self aware about the quality, hygiene,
ingredients and packaging of baked products. For solving various problems hindering
in this sector, as per the respondents, bakery stores should focus on better marketing,
quality control check, proper storage, brand establishment, self awareness,
consumer’s satisfaction and feedback.
3.2. Conclusion
As per the research and findings, it is concluded that the popularity of bakeries has
grown severely and is being empathic day by day among many of the Nepalese. With
these remarkable influences of bakery business in Nepali market, bakery stores and
bake line businesses should focus on proper hygiene and quality management
strategies by promoting environmental and social obligations. Offering reasonable
price, quality and safe product, creating awareness among people etc. are also the part
of corporate being socially responsible. Bakery businesses should not only focus on
its product and consumers, but also should focus on enhancing profitable and good
relationship with its suppliers and retailers. Hence, businesses also should keep eye on
improvement of supply chains, knowledge management, consumer satisfaction, action
feedback, government policies and most importantly the environmental and social
factors.
As far as lifestyles and living standard of people are changing, the direct impact digs
on the eating habits. So, bakery businesses would be remunerative if it continuously
concentrate on new ideas, new tastes and flavors without disrupting the quality and
hygiene of the product. Better marketing, promotion, advertising and proper
packaging can drive the business more effectively.
3.3. Research Gap
This research is done in Kirtipur with 50 respondents. If the research area and the
sample size would increase and be diverse, more absolute and necessary information
can be obtained which would make research more valuable. In the future, further
investigations and research could be focused on the discovery and application of more
innovative ways for cultivation and commercialization of safe and sensible
ingredients for baking used by bakery product makers since people now have become
more anxious about personal hygiene, health, and environment and surrounding.
 REFRENCES

Bhattacharya, K., & Bradbury, D. (2018). Assessment of physical and physiological

parameters among the male and female bakery workers from Palpa district of
democratic Nepal. International Journal of Research in Pharmaceutical
Sciences, 9(1), 226-235.

Chládková, H. (2006). Internal environment of a bakery and its analysis. Zemedelska

Ekonomika-Praha-, 52(2), 83.

Do Nascimento, K. D. O., Paes, S. D. N. D., & Augusta, I. M. (2018). A Review

‘Clean Labeling': Applications of Natural Ingredients in Bakery Products. Journal of
Food and Nutrition Research, 6(5), 285-294.

Fremaux. A. (2014). New Market Trends in the European Bakery Sector (25). Cape
Town, South Africa: IAOM Mildeast and Africa District Conference.

Jeong, J. S., Jeong, H. N., Ko, K. H., Moon, J. H., & Kang, H. G. (2013). Success
Factors of Paris Baguettes Bakery Franchise Business. Asia Marketing Journal, 15(2),
1-27.

KC, Nirmal (2017, March). Cakes and community. Nepali Times. Retrieved from
http://archive.nepalitimes.com

Kenijz, N. V., & Sokol, N. V. (2013). Pectic substances and their functional role in
bread-making from frozen semi-finished products. European Online Journal of
Natural and Social Sciences, 2(2), pp-253.

Kiumarsi, S., Jayaraman, K., Isa, S. M., & Varastegani, A. (2014). Marketing
strategies to improve the sales of bakery products of small-medium enterprise (SMEs)
in Malaysia. International Food Research Journal, 21(6).

Larvie. (2015). Business opportunities study in Thai bakery sector. Banhkok,

Thailand: Embassy of the Kingdom of the Netherlands.
Mallick, S. R. (2015). Prospects And Potentiality Of Bakery & Confectioney Units In
Odisha (Doctoral dissertation).

Moslehpour, M., Aulia, C. K., & Masarie, C. E. (2015). Bakery product perception
and purchase intention of Indonesian consumers in Taiwan. International Journal of
Business and Information, 10(1).

Nashat, S., & Abdullah, M. Z. (2016). Quality Evaluation of Bakery Products.

In Computer Vision Technology for Food Quality Evaluation (Second Edition) (pp.
525-589).

Purlis, E. (2010). Browning development in bakery products–A review. Journal of

Food Engineering, 99(3), 239-249.

Ratinger, T., Tomka, A., & Boskova, I. (2016). Sustainable consumption of bakery
products; a challenge for Czech consumers and producers. Agricultural
Economics/Zemedelska Ekonomika, 62(10).

Souki, G. Q., Reis, V. C., & Moura, L. R. C. (2016). The behavior of bakery
consumers. Organizações Rurais & Agroindustriais, 18(1).

Therkelsen, P., Masanet, E., & Worrell, E. (2014). Energy efficiency opportunities in
the US commercial baking industry. Journal of Food Engineering, 130, 14-22.

Wang, K., Lu, F., Li, Z., Zhao, L., & Han, C. (2017). Recent developments in gluten-
free bread baking approaches: a review. Food Science and Technology, 37, 1-9.

Welch, D, & Francesco, D.D. (2017).Tanzania solar bakery project. [Case study].
https://regions20.org/.../2017/.../Tanzania-Solar-Bakery-Case-Study_Edited-final-
versi...

Zhou, W., Therdthai, N., & Hui, Y. H. (2014). Introduction to baking and bakery
products. Bakery products science and technology, 1-16.
 APPENDICES
Appendix: I
Research Questionnaire
Survey Questionnaire
Hello Sir/Madam,
My name is Manisha Maharjan. I am undergraduate student at Quest International College,
Pokhara University Nepal. At the present time, I am doing Research Project work under the
title ‘People’s perception on bakery in Kirtipur’. The main objective of this study is to
identify the local people’s insight about bakery items around Kirtipur. In order to meet this
objective 60 Respondents have been selected and you are one of them. Your participation is
completely voluntary. This information is being collected for academic purposes only and any
details related to your privacy will be kept confidential. The interview will take
approximately ten minute, but with your cooperation it can be done quicker.
May I have your permission to undertake this interview?
Yes = Proceed with interview
No = Thank the person and look for next respondent

Part A: Personal Information

General Information

General Information
Name of respondent:
…………………………………………….. Contact No.: ………………..

Date: ………………………..… Start time: ……… Stop time: …………

Study Area: Municipality/ V. D. C

District: Ward:

Personal Information

Personal Information

S. Questions Answers
 N.
Gender of the respondents 01 = male
Q.1
(tick the appropriate answer) 02 = female
Q.2 How old are you? …….. years
01 = Yes
Q.3 Do you have formal education? 02 = No
* If No. Please go to the (Q.
5)
01 = Primary
02 = Lower Secondary
03 = Secondary
Please, mention the level of education you have 04 = Higher Secondary
Q.4
achieved. 05 = Bachelor Degree
06 = Master Degree
07 = Other (specify)
……..
01 = Yes
Q.5 Have you received any training regarding use of bakery 02 = No
* product? If No, Please go to the (Q.
7)
………………… years
Q.6 If yes, how long?
………………… months
………………… years
Q.7 How long have you lived in this community?
………………… months
Please mention the number of people in your
Q.8 …………….
Household?
01 = Married
02 = Never Married
Q.9 What is your marital status? 03 = Divorce
04 = Widowed
05 = Other (Specify) ……

Part B: Buying behavior of people

 01=Morning
During what time of the day would you eat bakery 02=Midday
Q.10 products? 03=Afternoon
(you can choose more than one option) 04=Evening
05=Doesn’t matter
01=Everyday
02=Couple times a week
03=Once a week
Q.11 How often do you buy baked goods?
04=Once a month
05=Occasionally
06=Others …….
01=Factories
02=Retails
Q.12 Where do you usually buy your bakery items? 03=Online stores
04=Local bakeries
O5 = Others …….
01=Brand of the item
02=Appearance
What factors are important for you while choosing a 03=Freshness
Q,13 bakery product? 04=Ingredients
(you can choose multiple options) 05=Price
06=Others
………………………
How much are you spending per month on bakery
Q.14
product? Rs…
01=Yes
Do you find any difficulties in locating and purchasing
Q.15 02=No
bakery products?
(If no, please go to Q.17)
Q.16 What are the difficulties you usually face while buying 01=No choices for
bakery products? available bakery item
02=Costly for extra
toppings
03=Open exposure of
 bakery products
04=Others……………….

Part C: People’s purchase intentions

01= Yes
Q.17 Are you satisfied with the price of bakery product as 02=No
* per what you get? If no, please go to
(Q.no.19)
01=Quality bread
What are the reasons behind charging high prices on 02=Handmade
Q.18 bakery product? 03=Expensive materials
(you can choose multiple options) 04=Product as per order
05=Other………………
01=Normal bread
02=Gluten-free
03=Wholegrain
Q.19 What types of baked products do you prefer?
04=Egg-less
05=Sugar less
06=Low on calories
01=Large baking
companies
Q.20 What type of bakery manufacturer do you prefer? 02=In-store bakeries
03=Street retails
04=It doesn’t matter
01=Inexpensive
02=smells appealing
What would make you more likely to shop and buy a 03=Home-made
Q.21 baked good? 04=Occasions/ celebration
05=Good appetite
06=No particular reason
07=Others …….
Q.22 How do you prefer in getting the bakery product? 01=Preorder
02=Whichever is available
 03=As per situation
04=Others……..
01=Saves time
What is the reason for purchasing bakery products as 02=Accessible
Q.23 per its availability? 03=Immediate need
(you can choose multiple options) 04=Price benefit
05=Others………….
01=Yes
Do you think purchasing bakery products without
Q.24 02=No
preordering affects the quality?
(if no, go to Q.26)

Q.25 If yes, in which way does it affect? …………………………

………………………….

Part D: Proper management strategies

01=Cost convince
What do you think is the better management strategy for 02=Variety in flavor
Q.26 enhancing bakery consumption? 03=Variety in taste
(you can choose multiple options) 04=Health concerns
05=Others……………….
What do you think bakery stores could do to increase …………………………
Q.27
the potential growth of bakery business? …………………………

What do you think is better strategy for overcoming

Q.28 …………………………
such above mentioned problems?
……………………........
01=Manufacturers
02=Suppliers
Who do you think is responsible in solving such
03=Retails
Q.29 problems?
04=Customers
(you can choose multiple options)
05=Government
06=Others……..
Is it possible and applicable to implement the suggestion 01=Yes
Q.30
you made? 02=No
 What are the factors to improve in order to make it …………………………
Q.31
possible? …………………………
Appendix II
Pre-testing questionnaire

S.N Questions Alternatives

.
Q.1 Did you get any questions which are vague, unclear and 01=Yes
non-understandable while solving above question? 02=No
Q.2 If Yes, please mention the question no. you felt difficult Q.N____Q.N____
in understanding? Q.N____Q.N____
Q.N____Q.N____
Q.3 In your understanding, are there any additional 01=Yes
questions that should be included to meet the objective? 02=No
Q.4 Is Yes, what are those questions that should be added? ………………………….
………………………….
Q.5 If you have any suggestions regarding the improvement ………………………….
of questionnaire, please mention in this space aside. …………………………..
Appendix III
Photo Gallery

Student responding to survey questionnaire. Bakery retail store at Kirtipur.

The respondent’s effective participation during survey.

 The respondents filling up survey questionnaires.

The shopkeepers as a respondent doing survey questions at Kirtipur