It is essential to preserve a proper balance between product, price, place, and promotion to set the foundation for the success of a bakery business. The following are some potential recommendations.
Product: Zihan should be consistent with its quality measures to make the cookie recipe different from those of its rivals in the market. The intention must be to make the product portfolio extensive instead of just concentrating on a single cookie recipe. Zihan can recognize the unique selling point, such as delicious taste with affordability, to validate differentiation (Holt, 2022).
Price: The pricing strategy should adhere to the unique selling value (identified above). The company should come up with a penetration pricing strategy. The objective is to keep the prices low compared to its rivals to acquire customers and increase sales. After meeting the initial sales targets and customer acquisition, the firm can change it into a competitive pricing strategy. The combination of these pricing strategies can make this bakery brand relevant and competitive in the bakery business (Schindler, 2011).
Place: acquiring customers to meet demand and expectations is imperative, and it will be possible by recognizing the location. Zihan should prefer an urban area as far as the probability of the target customers is concerned. The most important thing is to make the product available and visible to customers. Direct channels (bakery) are apparent, but Zihan can build partnerships with local cafes and online platforms to augment sales and make the brand accessible (Lancaster & Massingham, 2010)
Promotion: This small-scale business can prefer a digital marketing strategy instead of focusing on traditional marketing techniques. For instance, management can use social media channels, such as Facebook, Instagram, and YouTube, to enhance the visibility of positioning and attraction. These social media channels are the best options for sharing behind-the-scenes customer feedback and video campaigns. Local influencers can also play a vital role, as they can share their experience and association with this brand to create influence at a wider level (Kim & Kim, 2022).
References
Holt, K. W. (2022). Differentiation Strategy: Winning Customers by Being Different. Taylor & Francis.
Kim, J., & Kim, M. (2022). Rise of Social Media Influencers as a New Marketing Channel: Focusing on the Roles of Psychological Well-Being and Perceived Social Responsibility among Consumers. International Journal of Environmental Research and Public Health, 19(4), 2362. doi:https://doi.org/10.3390/ijerph19042362
Lancaster, G., & Massingham, L. (2010). Essentials of Marketing Management. Routledge.
Schindler, R. M. (2011). Pricing Strategies: A Marketing Approach. SAGE.
Simulated Business Scenario:
Zihan is a baker who is planning to start her own business and open a bakery in her hometown in Connecticut. She has spent a lot of time and effort perfecting the cookie recipe, which she has been making over the years from a family recipe.
Zihan is concerned that she is spending too much time and effort on the actual cookie recipe (product) and not enough time on the remaining 3Ps. In order to ensure a successful launch of her new business, Zihan hired you to help with the bakery’s grand opening. She asked you to prepare a report detailing what the bakery can do to deliver customer value.
Questions:
What would you recommend Zihan do to create a proper balance between the 4Ps (integrated marketing mix) for her bakery? In other words, what would you advise Zihan create a balance with all 4Ps:
