Executive Summary
The analysis of the target market, the demographics of the state of Colorado, the offering of the business the Slice in the form of Cupcake, Cake and pastries is expected to have the potential to grow and expand in the next five years and open two new shops, while capturing the 50% of the 2000 population in the first year. The use of the grand opening and public relations is expected to be an effective promotion for this aim in the first year of operations. The e-commerce website will be established in the first or second year to exploit the markets outside Colorado.
Introduction to the company | The Slice
My company is a bakery. I have a very dear relationship with baked items and hold very special regard for the bakeries and the sweet treats they offer. Because one should work in the field in which one holds interest, I have opted for the opening of a commercial bakery shop. It would also include a small café for on the spot serving. The food industry is that one industry which cannot be doomed because people have to eat at least three times a day. If positioned wisely, any food business can become profitable in months. People have to spend a major portion of their income on food, and therefore it is a market which will prevail. The company will be established in Colorado, offering bakery items. The startup will initiate from the introduction of cakes, cupcakes, and pastries. The nature of the business will be entrepreneurial with using employees to help run the business. Chefs with the best experience and credentials will have to be designated as bakers. Other than this, staff would include salespersons, waiters, and a couple of employees for the smooth running of the business.
Product Description
The product range of The Slice is going to include Cakes, Cupcakes, and Pastries. Plenty of flavors are going to be introduced with variety in sizes, frostings, toppings, styles, and decorations. An important aspect of the business would be to offer products to diet-conscious customers as well. It will attract the health-conscious market as well. Cakes with gluten-free, vegan, reduced fat and naturally sweetened options will be offered. Catering service can also be considered in the future, and if demand arises immediately.
Location
We are targeting the town of Granby for the location of our bakery. The Slice would offer one of kind experiences for the population of Granby. As there is not any similar cake shop in the town, it would have the potential to attract the customers in its first year.
Environmental Analysis: PESTLE Analysis for The Slice
Political
Granby is a small town of Colorado with a very small population of around 2000 people. The political environment of the town of Granby is almost family-like with this little number of families as the resident of the town. The town is close to Denver and is close to one of the prime tourist locations like hot sulfur springs, Estes Park and Rocky Mountain National Park. With being a tourist town, the potential for a prime bakery at this location that it would offer is very healthy. Moreover, the political environment of any tourist town always demands stability, which is also very good for the businesses, hence a suitable location with not much fuss around it.
Economic
With about 600 households having 40% of their population under the age of 25 gives a healthy potential for a bakery business with less competition. The mean household income of the town is $46,000, and mean income for a family is $55,000 making about 4% of the population below the poverty line. With this amount of income levels, the disposable income is not much, but enough to spend on bakery delights (City-Data.com, 2017).
Socio-cultural
Colorado is one of the richest states blessed with natural wonders and a pool of talented people. The morale and ambitions of the people of Colorado have always been high, and their leaders and political representatives have been investing in the devising of programs and policies which can make progress for the state. The institutions of Colorado are found to be effective and responsive. The elected officials of the state are specifically concerned about the reputation of the state. The people of Colorado are doing their best in finding a balance between the preservation of their natural wonders and economic benefits. The social culture of the state of Colorado is based on the nature of the state. The state is built on the wealth exploitation of mines, and today this has become the cool outdoor spot for recreation and tourism. The music festivals, sporting events, has made the place a great place to live.
Technological
The state is known for its tourist attraction and has become a prime attraction for skiers, snowboarders, boaters, and bikers. The technology required for the bakery is not very highly advanced and thus would be easily available in the tourist state of Colorado.
Legal
The state of Colorado and town of Granby is a friendly state for businesses for its tourist nature. The town and state offer plenty of legal relaxations with the aim of promoting businesses for tourists. It would aid the bakery business as well.
Competitions
The Slice would be one of a kind bakery shop in Granby. However, there are some bakeries which can act as a major competitor for us. Other businesses in bakery and cake decorating in the grand county are our competition. Two locally owned companies are in the town of Granby, and a bakery in the city market is also considered the competitor.
Primary & Secondary Markets
The primary market for the business The Slice would be comprised of all ages from children to adults. As not being a very high-priced item, it will target all households of the Granby population except the 4% below the poverty line. The tourists of the state are also one of the markets. The winter and summer season will be the peak times as tourists visit this state during this time mostly. Thus, the primary market is going to be the residents of the county whereas the tourists and near state towns would be considered as the secondary market (City-Data.com, 2017).
4Ps of The Slice
Product
Cakes, cupcakes, and pastries are going to be the main product of The Slice. The quality of the product is very crucial for the business. The bakery would focus on the sanitation and cleanliness of the baking process and its environment. The quality of the ingredients used is very important. The bakery will offer flavors like vanilla, chocolate, red velvet, strawberry jam, carrot, walnut, blueberry cheese, and orange-chocolate cake. These would be coupled with a variety of frostings and topping options. The product of the Slice has to offer creative flavors to constantly amaze its captured market (Frost & Sullivan, 2016). The introduction of seasonal and new flavors would facilitate this purpose. Each month, the slice will offer and introduce a new flavor in the market.
Price
The pricing of the products would be kept as per the affordability of the population. The cupcake would be offered at $ 3.00 per cupcake. A one-pound cake would be offered at $ 42 per pound. A pastry will be marketed at a price of $ 4.00 per pastry.
Place
In the state of Colorado, in Grand County, in the town of Granby, the first shop of The Slice will be opened. Granby is known as the heart of the state of Colorado. We are starting from a very small town and small bakery shop, but the business aims to grow and expand continually. For this, we will plan to open more stores in the nearby areas. The Slice is fully aware of the potential of the internet and online e-commerce. It will be initiated after one year of operations when the company would have enough potential and resources to establish an e-commerce business.
Promotion
For the promotion of the business of The Slice, local advertising, grand opening of the store, and offering of free samples on the day of the grand opening would be effective. Public relations would be the most effective promotional tool as the company is located in a very small population-centric town. Through sponsoring public events, and donating complimentary gifts, and participating in various other community activities, The Slice will capture its market.
5Cs of The Slice
1-Company
The vision of the company is to offer its baked delights to the US population and share “the slice” with everyone. The company wants to promote a culture of sharing, and community development. It will be made sure by donating a portion of our revenue, profits to community development each year.
2-Customers
The customers of the slice are going to belong to every age group, and with families of income group of more than $40,000 a year. We are targeting the resident as well as a tourist market of Granby, Grand County and Colorado in the short and long run. The 2000 population of Granby is targeted to be captured in less than two years with strong public relations strategy (Census.gov, 2017).
3-Competitors
The company-The Slice does not have any tough competitors in the current region, however, after expansion of its business, we would be facing tough and well-developed competitors in the market of Colorado and Grand County.
4-Collaborators
The suppliers of the company and the initial team who would work in the bakery would be the crucial mix for the success of the company. The e-commerce website and the delivery network would affect the success after its initiation as well. The Chefs would be the prime focus for the success of the company.
5-Climate
The political, socio-cultural, technological, and legal environment of the town, county and state is very pro-business and will aid the bakery business (Boone & Kurtz, 2011).
Future Goals of The Slice
One Year Goals
The Slice is committed to capturing at least 50% of the market of Granby in its first years. Moreover, the introduction of a new flavor in each month would be making sure as well. The success of at least ten new flavors in the first operating year as per the performance metrics established would be considered as an achievable goal.
5 Year Goals
In the next five years, The Slice is expecting to establish two new stores at nearby places in the state of Colorado. For this purpose, it would be necessary to conduct market analysis for the nearby places in the first year. Moreover, these markets can be tested in the first year by establishing stalls for promotional basis, and the response can predict the future potential.
Performance Measures
One measure to analyze and measure the performance of the company is in regards to the creative flavors. For measuring this aspect, the sales revenue collected from the featured products has to be assessed. The success of the new flavored product would be assessed. The seasonal flavors added to the product range would also be assessed with the same matrix. Another form of performance measure would be to assess the feedback of customers by customer surveys. The information about the customer service will also be gathered by conducting occasional surveys of the customers (Hutt & Speh, 2012). The increase in the market share will also predict the performance of the company.
SWOT Analysis of The Slice
| Strengths: | Weakness: |
| · Innovation and creativity in the form of new flavors each month. | · Reliance on a small population |
| · Lower competition | · Seasonal nature of business because of tourists |
| · Higher political and economic stability of the state | · Slow expansion opportunity because of less population in startup town |
| · Strong Public relations | |
| · Efficient use of resources | |
| · Effective Customer service | |
| Opportunities: | Threats: |
| · Expansion into nearby areas | · Competitive nature of business outside Granby |
| · Growing demand for new flavors | · Slow economic progressions of the state |
| · Ripe market for online bakery industry | · Government regulations |
(Sarsby, 2016)
Need Analysis
The state of Colorado and specifically the town of Granby with having no specialized bakery in its location has the gap to offer potential benefits for sweet and savory bakery items. The business with friendly customer-oriented focus and product range with a variety of flavors has a ripe potential for the bakery business. The need analysis and SWOT analysis show that the business of The Slice has a very prime potential for bakery delights.
References
Boone, L., & Kurtz, D. (2011). Contemporary Marketing (2 ed.). Cengage Learning.
Census.gov. (2017, December 21). Colorado. Retrieved from https://www.census.gov/programs-surveys/popest.html
City-Data.com. (2017, November 9). Granby, Colorado. Retrieved from http://www.city-data.com/city/Granby-Colorado.html
Frost & Sullivan. (2016, September 27). Strategic Assessment of the U.S Bakery Industry. Retrieved from http://s3.amazonaws.com/zanran_storage/hdcglobal.com/ContentPages/105980746.pdf
Hutt, M., & Speh, T. (2012). Business Marketing Management: B2B (11 ed.). Cengage Learning.
Sarsby, A. (2016). SWOT Analysis. Business Education.
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