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Effective marketing is the key to a successful business venture. Careful, systematic market research is essential. Rather than assume that you already know about your intended market do market research to make sure you’re on track.  The business planning process will reveal the strategies needed to penetrate the market.


Get access to over 100 industry marketing plans in the Winning Business Plans Writing and Startup Tool kit starting at $29. 

III. Market Analysis 

a. Marketplace Trends and Environment

Since 9-11 2001 U.S. consumers have become more reliant on confectionaries and sweet bread as comfort food. More than four in ten buy bakery products from specialized bakeries ...see details in the Business Writing Tool Kit

Eighty-one percent believe they can eat anything as long as they do it in moderation — up slightly from 78% in 1999

Catering to Culture

Early Spanish expeditions in Mexico record the enormous variety of foods enjoyed by nobility. The staple foods included corn and chocolate, the hot, unsweetened chocolate drink made from native cocoa beans. The Spanish Armada introduced  ...see details in the Business Writing Tool Kit

In a 1999 study published by the American Dietetic Association, researchers tracked the eating habits of Asian students before and after immigration to the U.S. Results indicated that these students consumed fewer meals, mostly skipping breakfast; more sweet- and salty-flavored snack items; and ate American-style meals.

 

Cafes – A Rising Trend

Median annual sales of stores surveyed were $333,000 while the median store sizes was 2,120 sq. ft, and the average bakery sale per customer was $12.51.

Modern Baking found that in store made sales of muffins in 2004 were $1,288 million , an increase of 6.1% from 2001.

Dunkin' Donuts leads the rankings for 2003 and 2004 with 2003 sales... see market details regarding Krispy Kreme and other Donut Companies in the Business Plan Writing and Startup Tool Kit  

 

Coffee Craze Gains Momentum

Espresso coffee industry achieved prominence eight years ago and continues to grow. Our goal is to penetrate the market of quality coffee consumers with equivalent quality baked goods.

The current coffee craze is due to shifts in consumer tastes toward more expensive, premium flavored coffee.

In 1990, only 3% of coffee was sold at a premium; today, it is over...See more details in the Business Plan Writing and Startup Tool Kit  

US is developing a European style coffee culture, with emphasis on quality rather than quantity, leading to emergence of specialty coffee chains across the US.

 

b. Market Opportunities
Ability to penetrate existing market share. We will offer graduates of our cake and pastry baking class the opportunity to open a franchise shop with a view to expanding our brand throughout Maryland.

 

c. Geographic Analysis
Baltimore City has a population of 643,000. 80% of the working population in Baltimore cities robust business district are coffee drinkers with a significant portion being pastry eaters. As income growth increases so are our coffee and pastry consumers.

Household Growth

Baltimore City has a population of 643,000. Population and Households It is important to recognize the importance of household growth, in addition to monitoring population trends, in evaluating a market. In Baltimore’s case, while population in certain neighborhoods has declined, the number of households in them actually increased. Incomes are also rising in many city neighborhoods. In neighborhoods in and around downtown and the Inner Harbor, homes that used to house lower-income families of 5, are now middle- to upper-class households of one or two people. The City is also realizing significant infill development. So, population may decline, but number of households, median household incomes, property values, and tax revenues in many neighborhoods are going up.

Baltimore ranks 8th for population ...see details in the Business Plan Writing and Startup Tool Kit.  The, large metro area is starting to resemble a ‘bulls eyes’, with redevelopment and a rising middle- and upper-class demographic in the core and in suburban areas.

Central Baltimore and adjacent streets are arguably one of the nation’s top downtowns given its dense clustering of residents, businesses, visitors, institutions, sports facilities and events as the following suggests:
1) Meets many factors that are driving national retail chain locations in top tier cities
2) District has high population density
3) Location has a high number of high income earners in the city center
4) Region is realizing a booming demand for high-end residential units
5) Target area has a high hotel occupancy rate with many new hotels in the pipeline
6) See details in the Business Plan Writing and Startup Tool Kit  The urban area is capitalizing on it’s authenticity – using historic assets, architecture, cultural offerings, and unique urban settings to create a desirable environment for residents, employers and visitors.

 

IV. Target Market

a. Business Location
Fast paste business section of the downtown Baltimore metropolitan area near hospitals, banks and business buildings. Additional clientele acquired from incoming freeway traffic.

b. Market Description
The specialty and fast-food restaurants industry is popular among middle-class America.  Many companies in the industry have existed for decades; establishing significant customer loyalty and brand identity.  They fill one of two needs for consumers: (1) the need for a quick meal on the go, or (2) the need for a hot cup of coffee with a tasty snack or treat.

In 1999 886,338 tons of coffee were sold in the US. Soluble coffee accounts for 9.1 % of the total market and fresh coffee 90.1%.

Fresh coffee is the faster growing... 

See more details in ...the Business Plan Writing and Startup Tool Kit 

More coffee now is being consumed away from home accounting for 57% of the total market. This is reflected in declining supermarket sales of both soluble and fresh coffee.

Growth Opportunities

Cafe Deluthe & Gourmet Bakery will reach out to the community to secure it’s place in the local market and make growth from there in the following ways:

Host an educational tour of the bakery to show school children how baked goods and cake decorating is done.

Support high school home-economics programs and vo-tech baking or cooking programs in your area with product or cash donations.

Hold seasonal cake baking classes

Hang a community bulletin board in the bakery to foster communication about local issues and events.

Donate cookies, sweet rolls and other items to be served at PTA, school board, city council meetings, etc. Besides building goodwill, it’s a great sampling opportunity that exposes more people to baked goods.

Donate breads and rolls for fundraising dinners sponsored by local hospitals, nursing homes and community service groups.

Donate or provide at cost baked goods that schools, sports teams, dance clubs and other groups can use to raise money for their organizations.

Arrange to have local food shelves or homeless shelters collect unsold baked goods for their clientele.

Donate flour, salt or other ingredients preschools and elementary schools can use to make play-dough, paper mache and other crafts.

Brighten a sick child’s day by bringing treats to young patients in the hospital.

Host a continental breakfast in local hotels.

 

V. The Competition

Increased profitability in the industry suggests that people are becoming more dependent on fast food and specialty restaurants than they have ever been.

a. Who They Are
 See details of this report in the Business Plan Writing and Startup Tool Kit 

b. Market Share Distribution
13% of consumer’s annual expenditures goes to food consumption. That’s the largest expenditure below housing costs. 80% of adults in the US drink coffee. That’s 8 out of 10. We will access these coffee drinkers and baked goods consumers using precision placed storefronts, menu handouts and coupons by mail to all businesses in area.

Consumer Expenditures

Distribution of total annual expenditures by major category,

Assess Growth Potential

Demand for coffee is rising at a rate of  ... see the Business Plan Tool Kit for Details 

Business facilities are growing in the Baltimore metropolitan area with building of commercial buildings, hospitals and additional parking facilities increasing. This increased traffic will facilitate the need for more coffee houses and bakery shops that specialize in on-the-go foods and fast service. Our ability to pass down acquired competencies to succeeding cohorts by training cake bakers/decorators, team managers and other bakery staff will enable strong business outgrowth with the view of opening bakery shops throughout Maryland.

 

d. Product Matchups

Deluthes Coffee  - Starbucks Coffee
Deluthes Cakes – Giants and Superfresh Cakes
Deluthes Candies – Virtually No Existing Market In Area
Deluthes Patries – Penera Bread Pastries

 

VI. Marketing Plan

a. Meeting Customer Needs
Our customers require fresh quality coffee and pasty on the go. Our system for establishing customer needs is based on the product offering of our competitors. We will maintain honesty and request input. We will allow customers to take monthly surveys in exchange for discounts on doughnuts and pastries. This will give insights into what customers desire and create customer loyalty

b. Quality vs. Quantity
Americans on the go tend to compromise with respect to quality unless it has to do with their Starbucks coffee, gourmet bagel or pastry. Hot and fresh sells. Therefore quality is everything. Baking staff are trained regarding quality preparation, food service, storage and holding equipment with a view of producing a superiorly prepared fresh product consumers will come back for time and again.

c. How We Will Sell
Word of mouth advertising via quality output has proved our strongest selling point. Advertising in local papers and glossy local magazines. Occasional community donations and product gifts to active community figures. We will take the product to the consumers and let them ...(continued)

d. Ability to Penetrate Market
Our 20 years experience in baked goods preparation and quick delivery along with a fine reputation for high quality products will answer the demand for a fast, fresh, tasty menu of quality coffee and pastry products. Our ability to deliver solutions to meet special and unique cake design requests enables us to penetrate new market segments while holding niche positions.

The Cafe Deluthe & Gourmet Bakery will take the bakery cafe to the customer! By using the community support program TDP is instituting, arrangements will be made to visit a high school, college campus, or a corporate campus once or twice a month (Even visit these facilities for special games, tournaments, recruiting events, or corporate open houses). And, for every cup or baked good sold, a portion is ...(continued)

 

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