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. Since then a continuous

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

of their valuable customers.

HISTORY

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

Bakes in Pakistan. Currently the network is based on 58 retail bakery outlets across

Pakistan. A continuous increase in the chain of outlets is under process. They provide

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

suppliers, leading towards growth and new business opportunities.

Cakes & Bakes Products line is based on cakes, snacks, biscuits and sweets. An

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

last 12 years. Production and R&D departments are under the supervision of Food

Technologists, who choose the finest ingredients and are always looking for better

opportunities across the glob for betterment of their Business.

VISION STATEMENT

“To provide our customers oven fresh bakery products

in the shortest span of time with

excellent service level and quality”

MISSION STATEMENT

“To make Cakes & Bakes an essential part

of daily diet for our valuable customers”

GOALS & OBJECTIVES

Establish and maintain high standards of baking

Exhibit a strong foundation of baking methodology

Exhibit nutritional awareness and implement food-for-life principles

Exhibit a solid foundation of techniques for food preparation, presentation, and

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

Use problem solving techniques in maintaining kitchen morale and building a

team spirit

Communicate clearly, both verbally and in writing

Conform to established codes of ethics

MICRO ENVIRONMENT

MEDIA

EMPLOYEES COMPETITORS

SUPPLIERS

CUSTOMERS

CAKES &

BAKES

CUSTOMER’S ANALYSIS

Questionnaire

I. How familiar are you with The Cakes & Bakes?

II. How frequently do you visit The Cakes & Bakes?

III. If you prefer the Cakes & Bakes product, then why?

IV. Which items do you like the most at The Cakes & Bakes?

CAKES & BAKES ?

NAME (Optional): ______________________________ AGE: _______Note: Kindly choose only one option.

Taste Economical pricing Atmosphere

Product Availability Accessibility don’t prefer….

Taste Economical pricing Atmosphere

Product Availability Accessibility don’t prefer….

Know extremely well Know fairly well Know a little

Heard about it Never heard of

Know extremely well Know fairly well Know a little

Heard about it Never heard of

Everyday 5—6 times a week 2—4 times a week

Once a week Less than once a week Never

Everyday 5—6 times a week 2—4 times a week

Once a week Less than once a week Never

Cakes snacks Sweets Bakery items NothingCakes snacks Sweets Bakery items Nothing

V. Are you satisfied with the quality of The Cakes & Bakes Product?

VI. Are you satisfied with the taste of The Cakes & Bakes ?

VII. What about the prices of The Cakes & Bakes?

VIII. Are you satisfied with the freshness of products at The Cakes & Bakes?

IX. What do you think about the condition of cleanliness in The Cakes &

Bakes?

X. How do you grade the counter-services at The Cakes & Bakes?

XI. Do you think The Cakes & Bakes’s branches are attractive (outlook+

presentation)?

XII. Are parking spaces easily available outside The Cakes & Baker’s branches?

Very satisfied somewhat satisfied DissatisfiedVery satisfied somewhat satisfied Dissatisfied

Tasteless Moderate DeliciousTasteless Moderate Delicious

Very economical Normal PriceyVery economical Normal Pricey

YES NOYES NO

Poor Average Very goodPoor Average Very good

Poor Average Very goodPoor Average Very good

YES NOYES NO

YES NOYES NO

XIII. How do you find The Cakes & Bakes as a whole?

XIV. Can you access The Cakes & Bakes’s branches easily from anywhere in

Lahore?

XV. How do you rate The Cakes & Bakes among others?

XVI. Suggestions regarding improvements

XVII. Your thoughts and suggestions would be highly appreciated]

Customer analysis is based on price, place, cleanliness, quality, availability, taste etc.

According to our survey, 67% of people prefer Cakes & Bakes. Familiarity of Cakes &

Bakes is fairly well among customers and they used to visit it once in a weak. Bakery

products are most favorable then sweets & cakes due to freshness, quality, & taste. Most

of the customers are not satisfy with the parking and branch attractiveness. After doing

the whole customer analysis we came to know that Cakes & Bakes need much

improvement overall.

Poor Below normal Normal

Good Excellent

Poor Below normal Normal

Good ExcellentYES NOYES NO

Better Normal Needs ImprovementBetter Normal Needs Improvement

EMPLOYEES ANALYSIS

Employing the correct staff and keeping these staff motivated is an essential part. In

Cakes & Bakes, sales men are offering services to public. Workers of Cakes & Bakes do

not use of gloves & Caps. Their is no training of employees regarding business ethics.

Another week point in their front line people is that their communication skills are not up

to the standards. Moreover, no proper uniform for sales persons allocated.

SUPPLIERS ANALYSIS

Suppliers are also essential for Cakes & Bakes. Raw materials (chocolate, cream, bread,

cheese etc) are needed to complete the finish product. Their suppliers are world's leading

companies as.

Cadbury for Chocolate

Riches for Cream

Dutch, Saffor for Yeast

Olpers & Nestle for Milk

Adam's for Cheese of 10 types

The bargaining power of supplier is much higher due to their well repute in the market.

However, normally Cakes & Bakes have a contract with their suppliers on annual basis.

MEDIA

Cakes & Bakes is using 'Pull Strategy’, 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 ‘X2O’. They are

promoting through outdoor, which include billboards, banners, fliers, hording, and free

sampling. Cakes & Bakes is not as much using 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 to those customers who want to taste it.

COMPETITORS

The big competitors of Cakes & Bakes are

Disney Bakers

gourmet’ Bakers

Shezan Bakers

Rahat Bakers

From above all, gourmet’ is at the top now days, because they are also producing their

own dairy products that are much profitable for gourmet’. Its market share is 40%. It’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.

Whereas, Shezan is at decline stage having market share of 16%, due to low quality but it

has more products then the others because itself Shezan is a group of company,

producing its own products and selling their products through other retailers. For

example: pickle, juices and many other products are available also in departmental stores.

Rahat bakers are newly in market having market share of about 10% but they are also

providing the quality products.

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

quality products at reasonable price. As compare to Shezan bakers & Rahat bakers, Cakes

& Bakes is in good condition having market share of 25%.

MACRO ENVIRONMENT

POLITICAL ENVIRONMENT

Political environment has a strong influence on cakes and bakes. In Pakistan, there is no

political stability. Pakistani 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 major reason is that they are

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

crises and instability.

TECHNOLOGICAL

ENVIRONMENT

SOCIO-CULTURAL

ENVIRONMENT

ECONOMICENVIRONMENT

POLITICAL ENVIRONMENT

CAKES&

BAKES

GOVERNMENT POLICY

Before starting any business any company has to register themselves from the regulatory body of that industry. The regularity authority of Cakes & Bakes is “All Pakistan Bakes Association”.

As a registered business, Cakes & Bakes have to pay 15% sales tax on the average sales

of RS. 50,000 per day per outlet. Other than the sales tax, Cakes & Bakes also have to

pay holding Tax at the rate of 3.5% on the raw material, which they buy from their

suppliers.

ECONOMIC ENVIRONMENT

Due to political instability the economic conditions of Pakistan and rest of the world are

instable. Global recession is affecting every industry in a negative manner. The

increasing inflation rate results in the increase in per unit cost of finished product.

Pakistan is a developing country and unemployment is major issue that’s why labor and

material for production is costly.

SOCIO-CULTURAL ENVIRONMENT

Pakistan is a country where people from different races, cultures and religions are living

together. They 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. Moreover, 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 existing machinery does not help in

producing quality product.

MARKETING STRATEGY

Cakes & Bakes’ 4-P’s are product, price, place (distribution), promotion and people.

Although, this appears to suggest that each of these elements of the marketing mix is

discrete, they should not be regarded as independent entities. Each works on the others,

and changes in one element will almost certainly require changes in the others.

PLACE

PROMOTION

PRICE

PRODUCT

CAKES&

BAKES

PRODUCT

Cakes & Bakes product line is based on four major categories i.e. Cakes, Sweet, Snacks

and Biscuits. These all categories are produced in their own factories.

CAKES

Fresh cream cake

o Fruit Cake

o Chocolate cake

Black Forest Cake

Ice cream cakes

o Strawberry

o Vanilla

o Pineapple / Cherry

Butter Cake

PRICE

Prices of cakes are high due to high production and manufacturing cost. This is the reason

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

Pricing strategy, which Cakes & Bakes is using that is: cost-plus pricing strategy.

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

PLACE

Distribution strategy is based on the channel of distribution

CHANNELS

There are no wholesalers and no agents, just their own retail outlets. There are total 58

outlets, from which 40 are franchisees & 18 are their own.

PROMOTION

As Promotional strategy, Cakes & Bakes is using 'Pull Strategy’, 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 ‘X2O’. They are promoting through outdoor, which include billboards,

banners, fliers, hording, and free sampling. They 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.

SEGMENTATION, TARGETING AND POSITIONING

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

parameter. The main target segments are young house wives, children and business

people.

CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION

Customer perception is a key factor affecting a product’s success. Many cakes offered by

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

about themselves in the customers’ minds. This is due to lack of promotional activities

and advertisement campaigns.

NEGATIVE EXPECTATION OF CUSTOMERS

Customers expect it to be hygienic and a little stylish brand that respects their

values.

They expect the brand to enhance their self-image.

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

their cakes.

PRODUCT LIFE CYCLE

The requirements of customers change over time and thus Cakes & Bakes’s product

offering has to be changed accordingly. What is the style today may be out of market

within few weeks. Thus continuous innovation is required.

To 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. The

introduction is timed such that the

new product does not cannibalize the

product already in the maturity or

growth stage.

EXAMPLE

The cakes has been an important part

of the Cakes & Bakes menu. But

now it was in the stage of decline

and was actually not generating

proper return due to its competitors.

In an attempt to renovate it, a new

variant was introduced namely sugar

free cake.

COMPETITIVE EDGE

Cakes and Bakes do not have any sustainable competitive advantage.

Cakes & bakes have more outlets than its competitors do. It has 58 outlets as

compared to gourmet’ and Shezan.

Cakes & Bakes is going to do an agreement with a leading company Richs House

of Cakes, West Indies. In coming days, people will easily access the products of

Richs at the outlet of Cakes & Bakes. It 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. Moreover the waste material of Cakes and Bakes is not recycled

instead it is wasted or dumped somewhere outside the city. Daily the waste van comes to

al most each and every outlet and collects waste.

CAKES LIFE CYCLE PRICE V/S QUALITY

LAUNCHING OF PRODUCT

COMPANY NAME DISNEY BAKERS

LOGO

PRODUCT CAKES

VISION STATEMENT

“We are committed to being recognized

locally as a reputable Bakery business based on our

superior levels of customer and four legged client services”.

MISSION STATEMENT

“We are committed to providing

our customers with consistent high-quality

bakery products and responsive customer services”

GOALS & OBJECTIVES

Provide good and healthy food.

Promote healthy eating habits for kids.

Bring playtime for children and families of all ages.

Creative process of baking styles.

Remove stress and earn profit by generating interest in people.

To achieve 50%-60% market share

To achieve 20% return on capital invested.

Increase awareness in the market

All the objectives will be SMART

o Specific

o Measurable

o Achievable

o Realistic

o Timed

MICRO ENVIRONMENT

MEDIA

COMPETITORS

SUPPLIERS

CUSTOMERS

CUSTOMER’S ANALYSIS

Our customer will be of any age, gender and income group.

SUPPLIERS ANALYSIS

Suppliers will be an important part. We will make contracts with local suppliers from

whom our competitors are in linked with. More over, the raw material will be purchased

by locally.

MEDIA

Proper advertisement of cakes will be done on newspapers, internet, television and cable

network. More over marketing will also be done through emails in offices.

COMPETITORS

The big competitors will be

gourmet’ Bakers

Shezan Bakers

Rahat Bakers

Cakes & Bakes

In 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.

MACRO ENVIRONMENT

POLITICAL ENVIRONMENT

Political environment will affect the sales as Pakistan is politically instable country and

people do not encourage to spend extra amount on food and entertainment these days.

Government is increasing standards and prices for dairy products. The government policy

TECHNOLOGICAL

ENVIRONMENT

SOCIO-CULTURAL

ENVIRONMENT

ECONOMICENVIRONMENT

POLITICAL ENVIRONMENT

will be same as that for competitors but paying high taxes and duties will expectedly not

have much effect on over sale of cakes.

ECONOMIC ENVIRONMENT

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

high quality for our product so that more and more customers attract toward our product.

With all that the attraction of cartoons character will INSHALLAH work well to gain

market share.

SOCIO-CULTURAL ENVIRONMENT

The multi culture of Pakistan will help us in generating high profits as people like to give

cakes as gifts on different occasions.

TECHNOLOGICAL ENVIRONMENT

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

quality and time saving service. New machines will be installed with reference to make

cakes in new designs, features and taste.

MARKETING STRATEGY

SEGMENTATION VARIABLES

DATA

GEOGRAPHIC

World Region Asia

Country Pakistan

Cities All major cities of Pakistan but start with Lahore

Density Urban areas

Climate All weathers

DEMOGRAPHIC

Age No age limit

Family Size Any size

Family Life Cycle Married - unmarried

Income Rs. 7,000 +

EducationSchools, colleges, universities, business institutions, and welfare institutions

PSYCHOGRAPHIC

Social Class From middle class or upper class

LifestyleActualizes, fulfilled, believers, achievers, strivers, experience makers and strugglers

BEHAVIOURAL

Occasions Parties, birthdays, regular occasions.Benefits Quality, taste, entertainment

POSITIONING

We will position our cakes in customer mind by the best quality, best service, best

styling. Rests of the competitors are not offering the ways we are promotion our cakes.

The unique 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. The name Disney will also

help us in this regard. It will attract and bring customers mind that they are offered with

some thing special.

4 P’S

PLACE

PROMOTION

PRICE

PRODUCT

PRODUCT

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

expectation and desires. These all categories will be produced in our own bakery kitchen.

More over we will also provide pastry cakes which will be in pieces. So there is no need

to cut down and deshape the cake

CAKES

Fresh cream cake

o Fruit Cake

o Chocolate cake

o Cartoon cake

Black Forest cake

Two in one cake

Ice cream cakes

o Strawberry

o Vanilla

o Pineapple / Cherry

Butter Cake

PASTRY CAKES

Fruit trifle cup

Real chocolate pastry

Fresh cream pastry

Black forest pastry

Pineapple pastry

Fudge pastry

PRICE

Prices of cakes will be same as that of our competitors. We will use competitive base

strategy. The pricing strategy will also include promotion and discount for customers.

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

price to high price, depending upon the use and targeted customers.

PLACE

Decisions with respect to distribution of cakes are focused on willingleness of customer

buying behavior. Depending upon the kind and style of cake we will select an appropriate

dealer

Direct Channels

- Direct sales to customers on the outlet.

- Personal selling

Indirect Channels

- Telemarketing

- Online selling

- Free home deliveries

There will be approximately 3-5 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.

PRODUCT LIFE CYCLE

THE COMPETITIVE EDGE

Following are the competitive edges of our cake against our competitors which we think

are sustainable too.

- Strong brand name

- Social responsibility

- One of its own kind

- Timeless entertainment that could be enjoyed by the whole family.

- “Warm, safe, and family” feeling.

- Copyrights protect Disney from having competitors copying their

characters.

CORPORATE SOCIAL RESPONSIBILITY

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

of Pakistan. We recognize that an educated, healthy society is Pakistan is key to ensuring

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

For example:

- We will encourage our customers to grow more and more trees.

- To keep the environmental neat and clean.

- Do not smoke