39805860-Cakes-and-Bakes-Strategic-Marketing.doc

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CAKES AND BAKES

ORIGIN

A grand inaugural ceremony of first outlet in October 1995 was the first milestone

towards the development of Cakes & Bakes branches network !ince then a continuous

increase in product range and "uality is under process for achieving the satisfaction level

of their valuable customers

HISTORY

#aving the largest variety of cakes & bakery products provided big boost to Cakes &

Bakes in $akistan Currently the network is based on 5% retail bakery outlets across

$akistan A continuous increase in the chain of outlets is under process hey provide

market conditions to the customers and believe in long term relationship with respected

suppliers' leading towards growth and new business opportunities

Cakes & Bakes $roducts line is based on cakes' snacks' biscuits and sweets An

uninterrupted improvement in products and increase in product range is underway since

last 1( years $roduction and )&* departments are under the supervision of +oodechnologists' who choose the finest ingredients and are always looking for better

opportunities across the glob for betterment of their Business


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VISION STATEMENT

,o provide our customers oven fresh bakery products

in the shortest span of time withe-cellent service level and "uality.


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MISSION STATEMENT

,o make Cakes & Bakes an essential part

of daily diet for our valuable customers.


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GOALS & OBJECTIVES

/stablish and maintain high standards of baking

/-hibit a strong foundation of baking methodology

/-hibit nutritional awareness and implement food0for0life principles

/-hibit a solid foundation of techni"ues for food preparation' presentation' and

service' including competence in baking and pastry production' and line work

se problem solving techni"ues in maintaining kitchen morale and building a

team spirit

Communicate clearly' both verbally and in writing

Conform to established codes of ethics


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MICRO ENVIRONMENT

MEDIA

EMPLOYEES COMPETITORS

SUPPLIERS

CUSTOMERS

CAKES

&

BAKES


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CUSTOMERS ANALYSIS

Questio!i"e

I# Ho$ %!i'i!" !"e (ou $it) T)e C!*es & B!*es+

II# Ho$ %"e,uet'( -o (ou .isit T)e C!*es & B!*es+

III# I% (ou /"e%e" t)e C!*es & B!*es /"o-u0t1 t)e $)(+

IV# 2)i0) ites -o (ou 'i*e t)e ost !t T)e C!*es & B!*es+

V# A"e (ou s!tis%ie- $it) t)e ,u!'it( o% T)e C!*es & B!*es P"o-u0t+

CAKES & BAKES 2

NAME 3O/tio!'45 666666666666666666666666666666 AGE5 6666666

Note5 Ki-'( 0)oose o'( oe o/tio#

Taste Economical pricing Atmosphere

Product Availability Accessibility dontprefer.

Know extremely well Know fairly well Know a little

eard about it !ever heard of

Everyday "#$ times a wee% ' times a

wee%

(nce a wee% )ess than once a wee% !ever

*a%es snac%s +weets ,a%ery items !othing

-ery satised somewhat satised /issatised


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VI# A"e (ou s!tis%ie- $it) t)e t!ste o% T)e C!*es & B!*es +

VII# 2)!t !7out t)e /"i0es o% T)e C!*es & B!*es+

VIII# A"e (ou s!tis%ie- $it) t)e %"es)ess o% /"o-u0ts !t T)e C!*es & B!*es+

I8# 2)!t -o (ou t)i* !7out t)e 0o-itio o% 0'e!'iess i T)e C!*es &

B!*es+

8# Ho$ -o (ou 9"!-e t)e 0oute":se".i0es !t T)e C!*es & B!*es+

8I# Do (ou t)i* T)e C!*es & B!*ess 7"!0)es !"e !tt"!0ti.e 3out'oo*;

/"eset!tio4+

8II# A"e /!"*i9 s/!0es e!si'( !.!i'!7'e outsi-e T)e C!*es & B!*e"s 7"!0)es+

8III# Ho$ -o (ou %i- T)e C!*es & B!*es !s ! $)o'e+

8IV# C! (ou !00ess T)e C!*es & B!*ess 7"!0)es e!si'( %"o !($)e"e i

L!)o"e+

8V# Ho$ -o (ou "!te T)e C!*es & B!*es !o9 ot)e"s+

Tasteless 0oderate /elicious

-ery economical !ormal Pricey

1E+ !(

Poor Average -ery good

Poor Average -ery good

1E+ !(

1E+ !(

Poor ,elow normal !ormal

2ood Excellent

1E+ !(

,etter !ormal !eeds 3mprovement


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8VI# Su99estios "e9!"-i9 i/"o.eets

8VII# You" t)ou9)ts !- su99estios $ou'- 7e )i9)'( !//"e0i!te- 7t?s

due to their competitive strategies that are to provide parking on every outlet as well as

accessible is very easy because of availability is always on posh areas and main roads so

that customer can easily get gourmet? every where

8hereas' !hean is at decline stage having market share of 13' due to low "uality but it

has more products then the others because itself !hean is a group of company' producing

its own products and selling their products through other retailers +or e-ampleD pickle'

Euices and many other products are available also in departmental stores

)ahat bakers are newly in market having market share of about 1> but they are also

providing the "uality products

+or Cakes & Bakes it is a big challenge to compete with its competitors by providing

"uality products at reasonable price As compare to !hean bakers & )ahat bakers' Cakes

& Bakes is in good condition having market share of (5

MACRO ENVIRONMENT


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POLITICAL ENVIRONMENT

$olitical environment has a strong influence on cakes and bakes 7n $akistan' there is no

political stability $akistani government insisted on gradually increasing standards for

dairy products As milk is the core ingredient of Cakes & Bakes that is why any

legislation or laws that are made will affect it One another maEor reason is that they are

importing raw material from international suppliers which costs them more in political

crises and instability

GOVERNMENT POLICY

TECHNOLOGI

CALENVIRONMENT

SOCIO:

CULTURALENVIRONMENT

ECONOMICENVIRONMENT

POLITICALENVIRONMENT

CAKES

&

BAKES


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Before starting any business any company has to register themselves from the regulatory

body of that industry he regularity authority of Cakes & Bakes is ,All Pakistan Bakes

Association.

As a registered business' Cakes & Bakes have to pay 15 sales ta- on the average sales

of )! 5>'>>> per day per outlet Other than the sales ta-' Cakes & Bakes also have to

pay holding a- at the rate of F5 on the raw material' which they buy from their

suppliers

ECONOMIC ENVIRONMENT

*ue to political instability the economic conditions of $akistan and rest of the world are

instable Global recession is affecting every industry in a negative manner he increasing

inflation rate results in the increase in per unit cost of finished product $akistan is a

developing country and unemployment is maEor issue that?s why labor and material for

production is costly

SOCIO:CULTURAL ENVIRONMENT


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$akistan is a country where people from different races' cultures and religions are living

together hey celebrate all the festivals and special days Giving gift is a normal practice

and people like to wish and celebrate events with bakery products On such days the sales

abruptly increases 6oreover' lifestyle patterns and taste also affects the sales of cakes

and bakes

TECHNOLOGICAL ENVIRONMENT

As in current era of technological advancement' every business uses latest technology to

make their production plant more efficient and use their process in productive manner'

Cakes & Bakes is not using new machinery' the e-isting machinery does not help in

producing "uality product

MARKETING STRATEGY


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Cakes & Bakes? 0$?s are product' price' place distribution:' promotion and people

Although' this appears to suggest that each of these elements of the marketing mi- is

discrete' they should not be regarded as independent entities /ach works on the others'

and changes in one element will almost certainly re"uire changes in the others

PRODUCT

PLACE

PROMOTION

PRICE

PRODUCT

CAKES

&

BAKES


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Cakes & Bakes product line is based on four maEor categories ie Cakes' !weet' !nacks

and Biscuits hese all categories are produced in their own factories

CAKES

+resh cream cake

o +ruit Cake

o Chocolate cake

Black +orest Cake

7ce cream cakes

o !trawberry

o Hanilla

o $ineapple I Cherry

Butter Cake

PRICE

$rices of cakes are high due to high production and manufacturing cost his is the reason

that high priced products are effecting on the sales of other products in the portfolio

$ricing strategy' which Cakes & Bakes is using that isD cost-plus pricingstrategy

his is the main reason that prices of cakes are higher then its competitors


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PLACE

*istribution strategy is based on the channel of distribution

CHANNELS

here are no wholesalers and no agents' Eust their own retail outlets here are total 5%

outlets' from which > are franchisees & 1% are their own

PROMOTION

As $romotional strategy' Cakes & Bakes is using ;$ull !trategy?' which involves

promoting heavily to end users and consumers to create a demand that will pull the

product through the distribution channels Currently' advertising agency working for

Cakes & Bakes is @(O? hey are promoting through outdoor' which include billboards'

banners' fliers' hording' and free sampling hey use neither electronic media' nor

internet marketing According to marketing manager of Cakes & Bakes' they do free

sampling of newly launched products in their retail outlets only' and for those customers

who want to taste it

SEGMENTATION1 TARGETING AND POSITIONING

Cakes & Bakes uses demographic segmentation strategy for cakes with age as the

parameter he main target segments are young house wives' children and business

people


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CUSTOMER PERCEPTION AND CUSTOMER E8PECTATION

Customer perception is a key factor affecting a product?s success 6any cakes offered by

cakes and bakes have failed simply because of their inability to build a healthy perception

about themselves in the customers? minds his is due to lack of promotional activitiesand advertisement campaigns

NEGATIVE E8PECTATION O= CUSTOMERS

Customers e-pect it to be hygienic and a little stylish brand that respects their

values

hey e-pect the brand to enhance their self0image

Customer responses confirmed the fact that they do not connect strongly with

their cakes


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PRODUCT LI=E CYCLE

he re"uirements of customers change over time and thus Cakes & Bakes?s product

offering has to be changed accordingly 8hat is the style today may be out of market

within few weeks hus continuous innovation is re"uired

o counter these changes Cakes &

Bakes with due time introduces new

products and has phased out the old

ones which were at the decline stage

of their product life cycle he

introduction is timed such that the

new product does not cannibalie the

product already in the maturity or

growth stage

E8AMPLE

he cakes has been an important partof the Cakes & Bakes menu But

now it was in the stage of decline

and was actually not generating

proper return due to its competitors

7n an attempt to renovate it' a new

variant was introduced namely sugar

free cake#


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COMPETITIVE EDGE

Cakes and Bakes do not have any sustainable competitive advantage

Cakes & bakes have more outlets than its competitors do 7t has 5% outlets as

compared to gourmet? and !hean

Cakes & Bakes is going to do an agreement with a leading company )ichs #ouse

of Cakes' 8est 7ndies 7n coming days' people will easily access the products of

)ichs at the outlet of Cakes & Bakes 7t will be a big good advantage too

CORPORATE SOCIAL RESPONSIBILITY

At the moment cakes and bakes is not participating in corporate social responsibility

Because the financial conditions of the bakeries are not good enough to contribute toward

environmental issues 6oreover the waste material of Cakes and Bakes is not recycled

instead it is wasted or dumped somewhere outside the city *aily the waste van comes to

al most each and every outlet and collects waste

CAKES LI=E CYCLE

PRICE V>S QUALITY


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JA=C#7=G O+ $)O*C

COMPANY NAME DISNEY BAKERS

LOGO

PRODUCT CAKES


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VISION STATEMENT

,8e are committed to being recognied

locally as a reputable Bakery business based on our

superior levels of customer and four legged client services.


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GOALS & OBJECTIVES

$rovide good and healthy food

$romote healthy eating habits for kids

Bring playtime for children and families of all ages

Creative process of baking styles

)emove stress and earn profit by generating interest in people

o achieve 5>03> market share

o achieve (> return on capital invested

7ncrease awareness in the market

All the obEectives will be !6A)

o Specific

o Measurable

o Achievable

o Realistic

o Timed


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MICRO ENVIRONMENT

MEDIA

COMPETITORS

SUPPLIERS

CUSTOMERS


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CUSTOMERS ANALYSIS

Our customer will be of any age' gender and income group

SUPPLIERS ANALYSIS

!uppliers will be an important part 8e will make contracts with local suppliers from

whom our competitors are in linked with 6ore over' the raw material will be purchased

by locally

MEDIA

$roper advertisement of cakes will be done on newspapers' internet' television and cable

network 6ore over marketing will also be done through emails in offices

COMPETITORS

he big competitors will be

gourmet? Bakers

!hean Bakers

)ahat Bakers

Cakes & Bakes

7n introduction stage it will be challenging to compete with them but by gradual

awareness among public it will be easier for us to generate more profits as compared to

our competitors


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MACRO ENVIRONMENT

POLITICAL ENVIRONMENT

$olitical environment will affect the sales as $akistan is politically instable country and

people do not encourage to spend e-tra amount on food and entertainment these days

Government is increasing standards and prices for dairy products he government policy

TECHNOLOGI

CALENVIRONMENT

SOCIO:

CULTURALENVIRONMENT

ECONOMICENVIRONMENT

POLITICALENVIRONMENT


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will be same as that for competitors but paying high ta-es and duties will e-pectedly not

have much effect on over sale of cakes

ECONOMIC ENVIRONMENT

he economic power of consumer is lower that is why we are offering low prices with

high "uality for our product so that more and more customers attract toward our product

8ith all that the attraction of cartoons character will INSHALLAHwork well to gain

market share

SOCIO:CULTURAL ENVIRONMENT

he multi culture of $akistan will help us in generating high profits as people like to give

cakes as gifts on different occasions

TECHNOLOGICAL ENVIRONMENT

here is huge investment on technological advancement which will result in providing

"uality and time saving service =ew machines will be installed with reference to make

cakes in new designs' features and taste


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MARKETING STRATEGY

SEGMENTATION

VARIABLESDATA

GEOGRAPHIC

8orld )egion Asia

Country $akistan

Cities All maEor cities of $akistan but start with Jahore

*ensity rban areas

Climate All weathers

DEMOGRAPHIC

Age =o age limit

+amily !ie Any sie+amily Jife Cycle 6arried 0 unmarried

7ncome )s 4'>>> K

/ducation!chools' colleges' universities' business institutions'

and welfare institutions

PSYCHOGRAPHIC

!ocial Class +rom middle class or upper class

Jifestyle Actualies' fulfilled' believers' achievers' strivers'e-perience makers and strugglers

BEHAVIOURAL

Occasions $arties' birthdays' regular occasions

Benefits Luality' taste' entertainment


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POSITIONING

8e will position our cakes in customer mind by the best "uality' best service' best styling

)ests of the competitors are not offering the ways we are promotion our cakes he

uni"ue selling style of our cakes will have very good impact on consumer?s mind which

will compel them to buy our cakes again and again he name *isney will also help us in

this regard 7t will attract and bring customers mind that they are offered with some thing

special

? PS

PLACE

PROMOTION

PRICE

PRODUCT


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PRODUCT

he cakes provided by us will be of different style and designs which will meet customer

e-pectation and desires hese all categories will be produced in our own bakery kitchen

6ore over we will also provide pastry cakes which will be in pieces !o there is no need

to cut down and deshape the cake

CAKES

+resh cream cake

o +ruit Cake

o Chocolate cake

o Cartoon cake

Black +orest cake

wo in one cake

7ce cream cakes

o

!trawberryo Hanilla

o $ineapple I Cherry

Butter Cake

PASTRY CAKES

+ruit trifle cup

)eal chocolate pastry

+resh cream pastry

Black forest pastry

$ineapple pastry


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+udge pastry

PRICE

$rices of cakes will be same as that of our competitors 8e will use competitive base

strategy he pricing strategy will also include promotion and discount for customers

Customers directly relate price with "uality so we will sell the cakes at moderately low

price to high price' depending upon the use and targeted customers

PLACE

*ecisions with respect to distribution of cakes are focused on willingleness of customer

buying behavior *epending upon the kind and style of cake we will select an appropriate

dealer

Direct Channels

- *irect sales to customers on the outlet

- $ersonal selling

Indirect Channels

- elemarketing

- Online selling

- +ree home deliveries

here will be appro-imately F05 vehicles on each outlet' depending upon the area for

services

PROMOTION

As promotion is the key element of marketing program proper advertisement will be done

through outdoor' that will include billboards' banners' fliers' hording' internet marketing'

and free sampling


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PRODUCT LI=E CYCLE

THE COMPETITIVE EDGE+ollowing are the competitive edges of our cake against our competitors which we think

are sustainable too

- !trong brand name

- !ocial responsibility

- One of its own kind

- imeless entertainment that could be enEoyed by the whole family

- ,8arm' safe' and family. feeling

- Copyrights protect *isney from having competitors copying their

characters

CORPORATE SOCIAL RESPONSIBILITY


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8e believe in playing an active role in supporting the community and social development

of $akistan 8e recognie that an educated' healthy society is $akistan is key to ensuring

sustainable development and we do our best to give back to the community we operate in

For example:

- 8e will encourage our customers to grow more and more trees

- o keep the environmental neat and clean

- *o not smoke

39805860-Cakes-and-Bakes-Strategic-Marketing.doc

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