Bakery: Marketing and Cakes

Date: 12th October, 2012 Name: Momina Saeed 01-111102-108 Sana Khan 01-111101-113 Mian Muhammad Sajawal Marketing Plan 01-111101-157 Section:BBA 6-C â€Å"ENTREPRENEURSHIP† „BAKELICIOUS? MARKETING PLAN Point of differentiation (Pod): ? We will offer customized product to the customers. ? We will bake cakes according to the preferences and requests of the customers. ? These cakes are made up of organic ingredients which are nutritious. Unique Selling Proposition (USP): ? Our unique selling proposition is our family recipe for cakes. Segmentation: ? We will sell our product to Elite and Upper Middle class. Objectives: To create awareness. ? To specialize in cakes which are different from any other cakes available in the market. ? To establish a strong presence in the market as a unique bakery. ? Spreading happiness through taste. ? Completing important moments of your life. Data Gathering: Primary sources: ? Direct Interviews from customers. ? Direct Interviews from home b akers. ? We will also get information through questioners filled by the customers. Secondary sources: ? Internet ? Social websites Analysis of data: ? We will analyze the data from filled questionnaires and after conducting interviews. Marketing Mix:As Bakelicious is a service so we are using 7p’s of marketing. Product: ? Cake, cupcakes, cookies and muffins. Price: I. Cost: ? Our price will vary on the size and ingredients used for baking cake. II. Customer: ? For customer we will decide how much customer is willing to pay. ? As we are targeting elite and upper middle class so our cost will be some for both. III. Competitor: ? As we are starting new business so our cost should be less than other competitors. Place: ? We will make our items at home and also do online selling. We will place stalls in funfairs in school, college and universities etc.Promotion: We will do promotion through: ? Fliers ? By creating Facebook pages Positioning: ? Bakelicious will be positioned as a h ome based bakery that will provide home-baked goods. ? The focus will be on quality and freshness. ? It will be a fun and inviting alternative to mass market companies. ? We will offer highly customized products such that customers will be able to make the treats that they would bake if they had the time. People: ? Momina,Sana and Sajawal Process: ? People can place their orders through Facebook and through Telephone. SWOT ANALYSIS: Strengths: ? A cake business is fun.Most people need cakes for special days or events so what better way to make someone smile. ? Low startup costs. Since it does not require rent some space, then rent can be taken off the budget list. ? High mark-up for cakes. Since cakes are easy to make, we can price them according to their worth. Some are worth more than others but either way, it’s going to make a nice profit. ? Each cake represents a person or a relationship or a celebration by them. So, like each individual or his/her relationship with other s, the cakes are unique. ? The cakes are creative, and each is a piece of art.There maybe thousands of bakeries out there, but there are only a handful of bakeries that make as creative cakes like Bakelicious. Weaknesses: ? Bakeries products are perishable items hence need to be sold as soon as possible to gain maximum benefit. The customers also prefer fresh products. ? Our bakery has introduced few bakery items from the possible product lines. This limited menu can be seen as a weakness. ? When dealing with art, a single problem lies in every field, there are not many artists available out there to help us. ? Depending on the size of the kitchen, it needs extra storage space for supplies.This may require purchasing an extra cabinet or rearranging kitchen. Opportunities: ? Expansion of the Product Line in the future with the introduction of more bakery items. ? Bakery Industry is growing at a fast speed and demand for quality food is never ending. ? Changing consumer tastes have gi ven rise to â€Å"artisan† or gourmet cakes. Smaller bakers like Bakelicious with flexible production facilities can capitalize on such. ? In the recent years, customers are becoming more and more health conscious and prefer home-made goods made with quality ingredients and customers are also willing to pay a high price for that.Bakelicious produces just that. Threats: ? Raw-material and energy costs volatile: The costs of major raw materials, such as wheat, vegetable oils, fuel for delivery can change rapidly. The volatility in prices of raw-materials cannot affect the end-product price, thus shrinking the profit. ? Competitors: Current and potential competitors are major threats for Cakes Tell Stories. BUDGETING: After analyzing the prices of the Home Bakers we are going to price our products as follows: ? Ingredient cost for cake Rs 20. 000 ? 2 delivery boys salary Rs 20. 000 Rent of bikes (2) Rs 4. 000 per month ? Bikes fuel Rs 18. 000 per month. IMPLEMENTATION: ? After a ll this marketing research we will then follow this marketing plan, all of the group members will organize and apply this marketing plan thoroughly. MONITORING: ? One of the group members will oversee the operations in terms of material, delivery system, advertisement and maintenance if required. ? Other two of them will bake the cakes as required. SALES PLAN OVERALL SIZE OF TARGET MARKET: Islamabad Total Population: 1. 15 million SECTION: A Elite 7% BUpper Middle 15% C Middle 33% D Lower Middle 35% E Lower 20% Total Population = 1. 15 million Percentage of Targeted Section = x 0. 22 Targeted Section = 2. 53 Lacs Average Member in a Family = ?5 Total Families = 50,600 Families Prefer Home Made Cakes = x 0. 20 Total Targeted Families = 10,120 ATAR: Fliers (15%) = 12000 Brushers (10%) = 8000 Social Website (70%) = 2000 Number of Targeted Families Initially = 10120 x 0. 15 x 0. 10 x 0. 70 = 106 Families Years Pessimistic Realistic Optimistic 2013 100 110 130 2014 120 140 160 2015 150 1 80 200 2016 200 230 260