Bakery Industry Analysis

Generally the concentration of competitors has been fragmented by geography. However, through recent consolidations, the emergence of regional and national chains has started to prevail along with the decline of the independent/local shops. This consolidation activity has allowed many companies to spread their fixed costs over a wider range of output, thus

Bimbo Bakeries USA, headquartered in Horsham, Pennsylvania is the United States affiliate of Grupo Industrial Bimbo, founded in Mexico City, Mexico. Though Grupo Bimbo is now a multinational corporation, it began as a single family-owned bakery in Mexico City called “El Molino”. Lorenzo Servitje Sendra worked with his father in the family bakery throughout his childhood, but when his father died in 1936 he had to take over. Lorenzo was educated and ambitious, and together with three of his family members devised a plan to increase the scope of their business. They bought five delivery vans to deliver their breads, wrapped in plastic to preserve freshness, to various small stores daily. Customers loved their product and within a few years they had increased production and were expanding outside of Mexico City.

Any business, no matter what, is going to fail if the product is not of good quality. You wouldn’t watch a poor quality movie, or eat a meal that wasn’t to your taste. So a business needs to work hard to ensure that their produce is of high quality, and Bakers Delight does so by making their products fresh and in good environments. Through quality food, Bakers Delight has stayed, and remained Australia’s most successful

Wilson’s Bakery is a friendly café business that serves great products located in Alaska. Since the climate area is usually cold, some of the products will consist of hot herbal tea, variety pastries, soups, etc. The objective of this company is to build a strong market niche in the suburban development because there is minimum experience within the market area. Presently, the area has some restaurants and a few bakery cafés. Wilson’s Bakery will serve all its customers lower, middle, and upper income by providing its products within reasonable prices and rendering services that will put a smile on the face of its customers.

The Intensity of Rivalry among Competitors in an Industry (High): Equally balanced competitors exist within the industry such as BCF and KMD; these firms also face competition from retailers and wholesalers. The growth of the industry is relatively agile in both financial and technological aspects. The intensity or rivalry is further accentuated by relatively high storage and fixed rental costs, extensive product differentiation and minimal switching costs.

Competitive Rivalry: Competitive rivalry is relatively high as seen in previous competitor analysis. There are many competitors in the local market and on the shelf within the mainstream markets.

Potential entry of new competitors is rendered low for the grocery retailing industry. Puregold, SM Hypermarkets, Rustans, and Robinsons Supermarkets are amongst the top key players in the game. The entry of new competitors could be very low because of the huge capitalization funds that this industry requires. In addition, the industry has been long time dominated by the giant players that had already well established and positioned their brands throughout the country and that they had already spread out with branches in Metro Manila and other regions.

Availability of products outside the boundaries of the same product increases the tendency of customers to switch to alternatives. In bakery industry, there are many products that can be used to replace each other. Therefore, the cost is relatively high conversion of buyers in the industry. CreaCakes overcomes these threats by offering special delivery to the customer, where the customer does not find any other substitute for our products, there is no substitute for meeting other availability . As for our products, we offer vegetarian cakes, where there is zero firm in the area that offer similar products. Therefore, the total replacement products available on the market is

Offer the same or similar products for much cheaper, due to their private in house label that people have grown extremely fond of (Lutz, 2015)

The confectionery industry while having some difficulty with consumer demands concerning health seems to be a quite lucrative industry. The food and beverage industry as a whole sustained sales and profitable growth due to improved efficiencies and new and innovative product lines. The major problem in the food and beverage industry continues to be the rising costs of raw materials and the uncertainty of being able to increase the price of their products (MergentOnline.com).

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

We begin with layout our marketing objectives for the plan followed by the situation analysis to evaluate the internal strengths and weaknesses of the bakery. We also do research on the factors that are threat for growth of the business and identify the challenges which are obstacle in the path of business and this will help us to find the proper way of segmenting and targeting the customers market according to their requirements. Further it aided us in formulating marketing mix for a better position in the market mix. Finally our marketing ends with the finding of marketing strategies and evaluating the key performance of market evaluation. We hope that this marketing plan help the “Cupcake Central” for

Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School.

Market volume for the confectionery industry is flat due to the changing trend in consumption driven by the changing age in distribution of the population. Growth is only driven by price increase at 10%. Distribution / availability and visibility are seen as important elements in influencing the sale due to the nature of its products, impulse items. In addition to this, the bargaining power of the retail trade has been shifting away from the suppliers (i.e. manufacturers like Adams) and is in favor of the

In future maintain 5% of stores as mini-supermarkets in her development target. 759 STORE did its best to conduct “lower margin with high turnover” policy. Through this 3 years effort on active developing direct import model, it was grateful that 759 STORE had not only built up supplies with food distributors and manufacturers of Japan and other countries, but also a smooth import operation with substantial procurement scale. To avoid any conflict on product price setting with traditional market players, the Group would take further step to increase the proportion of direct import and much fully exclude the supply of local suppliers who were difficult to have price negotiation with and did not allow 759 STORE to set product prices independently. Exploring new products in all angles and without limitation, our procurement team continued to source wide varieties of import product for Hong Kong residents’ enjoyment, where around 80% of them was food products and 20% of them was household and other products, hoping that our