Bakery Business Plan Chapter II

CHAPTER II MARKETING PLAN MARKETING PLAN The company expects to use a variety of marketing tools including web advertising, affiliate programs, public relations and key strategic alliances to drive traffic. The company believes that it is extremely important to use word of mouth marketing campaigns especially in the early phases of the launch. The company has also been placing banners ads with major portal sites to increase awareness whereby it automatically serves when someone any keyword during a web search. This effort will focus on both online as well as print media in many towns. We have been offering new viewers debates and free subscriptions as an added advantage to purchase from the sitewww.jaybiebakery.ac.ke. CLASSIFY CUSTOMERS RETAIL The market segmentation for the retail is divided into two physiological groups: celebrators and soccer moms. The group represents people sharing similar behavioral patterns and reasons for supporting Jaybie Bakery. These groups purchase either pre-made or made-to-order products. Celebrators are people that have reasons to do just that, celebrate: Birthday, anniversaries, graduation, valentine’s day and Christmas among the most occasions of many holidays or special occasions that family and loved ones celebrate encompassing a variety of people including the young, middle aged, old and both men and women. Soccer moms encompass not just moms but all family members and it serves as a place where family feels both welcome and comfortable. WHOLESALE Our wholesale customers will be successful businesses in the food industry and we are focusing our attention in the following customers and expand to a broader list as the company grows. CAFES AND COFFEE SHOPS RESTRAUNTS AND HOTELS MARKET Broadway cafe Acoma Front street Hummingbird café War bonnet 64 Junction Jupiter coffee house Derby Bus stage Park street café Land of favor Street 004 Jailhouse coffee shop Glory centre 96 Highway Season cafe Joy king mansion Middle centre In addition we also focus on seasonal wholesale customers for example summer weddings, holidays and other photographers, caterers. MARKET SHARE Our organization has some of the projects that are income generating that is through leasing of our equipments and our qualified person being requested by other companies for motivational talks and workshops. COMPETITION Nationwide, supermarket chains dominate the baked goods market in Mlipuko town. These grocery stores are locally owned, operated and their products are of poor quality often mass produced at an outside location and simply baked in the actual store. The ingredients are processed thus lowering the quality and taste of the product in order to sell the item at a lower cost. Town Talk Bakery is a locally owned bakery specializing in donuts, cakes and other treats are also sold at this location but are not made with high quality ingredients. The cake choices are very limited and icing is made with shortening and low quality for a low cost. Jaybie Bakery is set apart from the competition in four main ways: Each of our products contains extra detail to set it apart from the competition. We ensure that our products appeal to the eye as well as to the stomach. The sky is the limit when developing a pastry design and we cater to the wants and needs of our customers in every way possible. Customers’ service is our number one priority where we ensure that each customer is treated with kindness, respect and warm welcome on each visit. In an era where food is becoming chemistry, we focus on raw, natural and sometimes organic and local ingredients to create its product. Thus our products taste better and better for you. METHODS OF SALES PROMOTION AND ADVERTISING Word of mouth and public perception are immensely important in both aspects of the business. Customers must understand that our products are made with high quality ingredients and thus taste better than many of our competitors. The word of mouth will be created when someone experiences for example a cake at a party. The cake will be enjoyed by many and thus the word of mouth seed for the bakery aspect of the portion will be created. The students who had passed in our company earlier on will spread word of mouth in two ways: experiencing the enjoyment of the class and encouraging others to take the class and also developing a trust and relationship with Jaybie Bakery and therefore recommending the business to others. We branded our vehicles and designed posters in different forms, adverts on television or the electronic and print media that is Facebook, Google+, and OLX among others. We designed also business cards that we have been distributing in different occasions that we have really seen the impact on our business and brochures has been a helpful tool and also on newspapers. PRICING STRATEGY Due to high quality of ingredients made from scratch products carefully and at times customized decorated goods, the pricing will be slightly higher than that of the typical grocery store bakery. The table below illustrates the initial mark-up of the bakery products based on the cost of goods sold. Depending on the detail of special orders, the margin may increase for that specific item. ITEM Cookies Cakes Cupcakes Pies Wedding cakes Beverages MARGIN 3X 4X 4X 4X 5X 5X SELLS TACTICS OR STRATEGY The company has entered into many strategic relationships in order to quickly build credibility as well as traffic to its brand web site. This includes partnerships with major search engines, magazine publishers, high retailers and international community Web sites. Our layout and design is user friendly and cutting edge in the eyes of our audience to attract repeat users. We have a strong branding message that will extend to all aspects of the site and truly provide the best experience for our customers. Since we started marketing, we have employed a number of selling methods for example personal selling whereby nearer customers come on the bakery and in the whole town there are agents who help us in the marketing the products and we have been motivating them by giving them allowances and commissions among others. DISTRIBUTION STRATEGY We have developed a number of ways of distributing our products that is retail products may be picked up at the retail location by the customers or delivered for a nominal fee depending on the distance. Wholesale products are delivered to the wholesale locations with the fee included in the product pricing and the customers will come to the retail location for the classes.