Bakery Café

Marketing Plan

Kyiala Satybaeva

DeVry Online: Prof Elliot Masocha

BUSN319

March 27, 2014

Table of Contents

Pages

1- Cover Page2- Table of Contents3- Executive Summary & Company Description4- Mission Statement & Goals5- Competitive Advantage6- SWOT Analysis7- SWOT-Continued8- Industry & Consumer Analysis9- Key Influences & Market/ Product Strategies10- Market- product Strategies- continued, including chart.11- Financial Projections12- Financial Projections Continued13- References

Executive summaryThe following marketing plan is done to outline in detail a design for my Bakery in San

Pedro, CA. This is the bakery where one can come in and simply read a newspaper, sit down with a laptop, or any Wi-Fi enabled device for free, while enjoying a fresh-out-the-oven pastry along with a cup of coffee, tea or hot chocolate. The purpose of this marketing plan is to outline the business as an opportunity for locals to gather, network and socialize while keeping a traditional neighborhood feel. For the past several years our company had one cashier and one money-operating machine. There were long waiting lines due to only one cashier serving the customers. We estimated a loss of 1 million over the past several years from customers leaving because long lines. We have hire 3 more cashiers to address and correct these lost. Also, we have brought improved money operating machine in order to establish a quick check out process and no waiting in line for our customers.

Company Description Our company is confident in the quality of customer service and the quality of our

bakery. Customers appreciate the service and quality provided by our staff. Our customer return rate has been growing. Our company will expand outside of California in the next 5 years. Since we are selling high volume to our local customers, we know that customers outside of our location will enjoy the experience of Glazed Bakery Cafe.

Strategic Focus and Plan

A. Mission/Vision Statement The missions of Glazed Bakery Cafe are customer satisfaction and great quality. We put

customer first in our bakery cafe. It is a pleasure for us to satisfy every single customer that enters our store. In addition, we use the best quality for our bakery. The freshest fruits are delivered to our store with one-day delivery. All of the ingredients are the finest quality.

B. Goals

Nonfinancial goals 1. Add a new pastry to our menu every 3 months2. Win local bakery contest3. Provide every customer with our SMILE attitude

Financial goals1. Open another location in San Pedro, CA2. Increase revenue by 10% of previous month3. Increase revenue by 120% of previous year

C. Core Competency and Sustainable Competitive Advantage

Glazed Bakery Cafe has core competency. Our company will distribute high quality bakery to customers in quick time. We are able to special orders and deliver large quantity to our customers.

Glazed Bakery Cafe has sustainable competitive advantage with other competitors because of our high quality delicious treats. We give out free samples to every customer of our new upcoming products. Also, we deliver top quality bakery to our local community within 20 minutes of ordering. We also do special orders such as wedding cakes, anniversary cakes, birthday cakes, and any special events. This gives us a competitive advantage since most other bakery do not carry delivery or special orders. Our staffs are highly trained with bakery technique and great customers service.

Situational Analysis

Glazed Bakery Cafe’s SWOT (Strength, Weakness, Opportunities, and Threats) analysis shows an overview of business strengths and weakness.

SWOT Analysis

Strengths Weaknesses

Internal Forces Variety of bakery itemInexpensive bakery

Marketing costs

External Forces Great locationOrganic productNo PreservativesHealthy Alternative to public

Local competitionConsumer’s preference

Industry Analysis Our company has many cafe locations in San Pedro, Ca. We make sure our products are

organic grown in California. We receive our organic product from three agricultural farms in nearby area to ensure freshness of our product.

Competitor Analysis Our competitor are any bakery cafe located in San Pedro, Ca. Our main competitor is

Mary’s Delight Cafe because she had a first mover advantage into the market. Her cafe was open in 1988, which is 10 years before our store had open. However, Mary’s Delight Cafe does not offer delivery service. All her orders are pick up which can be inconvenient for customers. Our

company has an advantage over Mary’s Delight Cafe because we offer delivery service for our busy customers.

Company Analysis Our company will expand outside of San Pedro, CA within the next 5 years. We would

like to be located all over US; however, it does take a lot of planning and marketing to attract customers on a large scale. We are planning to spend money on advertising worth up to 1 million dollars in the next 5 years. This will attract new customers in our cafe and estimated increase in revenue by 40% from locals and outside of our local area.

Customer Analysis Our current customers are locals in the area of San Pedro, Ca. Since our location is in a

predominantly middle class area, most of our customers are middle class and can afford our more expensive bakery option.

Market Product Focus

A. Marketing and product objectivesOur marketing objectives are to market new customers ranging from all ages that enjoy

sweets. We hope through marketing that new customers will increase by 10% per month. Our product objectives are high quality products without pesticides and harmful

chemicals. Our entire product will be organic and no preservatives.

B. Target markets Our target markets are locals in the community for right now. We hope to expand our

target market to all areas of San Pedro, CA. We would like our customers to look causal, educated, and middle class. However, we will service all customers and will not discriminate.

C. Point of differenceThis is what makes us different from other competitors: 1. No preservatives - as our society gravitate toward a healthy market, our

company is providing this healthy market with a choice of sweetness yet healthier version.

2. Environmentally friendly package - our society now is aware of the impact of overusing our resource and the damages caused by it. By offering environmentally friendly package, we are helping our environment to be a better place.

3. Customer service- our company offer excellent customer service by greeting every single customer in our store and asking our customers questions to direct them to their optimal choice. We care about our customers here and we listen to our customers.

E. PositioningOur entire product will always be stock and easy access for customers. We will

have clear display glass, so our customers can see the product. All our display will be well presented and clean.

Marketing Program

A. Product Strategy

Product line: We offer various different flavor and size of cupcakes and cookies. Our cupcakes range from chocolate, vanilla, red velvet, lemon, and other flavors. We offer customers the opportunity to create their own cupcakes and cookies by choosing different flavor. Customers can combine the different flavors of cupcakes and we will make it. Our cookies range from chocolate chip, mint chocolate chip, peanut butter, sugar, and other flavors.

Packaging: Our entire products are packaged in environmentally friendly packages. It has a simple design with our logo on the package. Product quality: No preservative, no fructose corn syrup, no processed ingredient, no MSG, no trans fat. All our products are natural from the earth and organic.

B. Price StrategyOur company will use a pricing strategy of monopolistic pricing where marginal

revenue equal marginal cost. This will increase our profit more than charging at a competitive price where price equal marginal costs. At the monopolistic price, we can afford to produce less quantity at a higher price for consumers. We believe our products are high quality and consumers are willing to pay for organic products at high price. However, we will still have inexpensive bakery items for consumers only willing to pay at low price. We will price small cupcakes at 3 dollars each and larger cupcake at 7 dollars each. We will price our cookies at 5 dollars each. This is a realistic price for consumers who are more willing to pay high or low dollars amount for our organic cupcake.

Organizational Structure

At the Cafe, we will have store manager, assistant manager, team leaders, and cashiers. All employees will be trained how to make the entire bakery. The store manager’s main responsibilities are to maintain a good working environment, schedule worker’s hours, and customer service. Also, the store manager manages disputes from customers and employees. The assistant manager’s responsibilities are to assist the store manager in scheduling and maintain a good working environment. Also, when the store manager is not available, then the assistant manager will take on the role of the store manager. The team leaders are responsible for leading a team of employee and providing excellent customer service. Our cashiers will also provide excellent customer service when checking out customers.

Implementation

We have schedule new projects for this year to be implemented:

Projects: Dates:

Research Consumer’s new preference and tastes

March 2014- April 2014

Develop a new product based on consumer’s new preference and tastes

May 2014 - June 2014

Promote new product through advertisements, samples, and flyers

July 2014 - August 2014

Customer surveys about our products August 2014 - October 2014

Redo our product based on customer’s surveys

November 2014 - December 2014

Evaluation and Control To monitor successes and failure, we will have a team of accountant and financial analysis to make sure all the numbers add up to the correct number. Any number below our estimated expected forecast would raise a red flag. This will initiate all accountant and financial analysis to recalculate those numbers. If our number has been drastically going down, then we will implement a team of experts to all our cafe location and conduct a research. Our research team will find out what are causing the drastic decrease in revenue numbers. This could be the location, the current staff, or consumer’s preferences have change. Once the research team has accurately find the problem, then we will send in another team either to promote a new product or hire an entire new staff at the cafe location.

References

Arsham, H. (1994). Break-Even Analysis. Retrieved March 26, 2014, http://home.ubalt.edu/ntsbarsh/Business-stat/otherapplets/BreakEven.htm

Heizer, J.H., & Render, B. (2014). Principles of operations management: Sustainability and supply chain management (9th ed.). Pearson College Div.

Lusch, R. F., Dunne, P. M., Gebhardt, R., & Lusch, R. F. (1993). Retail marketing. Cincinnati, Ohio: College Division, South-Western Pub. Co.