John Alson - January 22, 2020
from 3 reviews
Your bakery business will grow and nudge you a bit to step outside of your comfort zone.
I want you to think about where you can take your bakery in the coming years. My goal is to prove how the basic principles of marketing can be applied to your bakery in order to increase your sales.
A chart that complicated doesn't exactly shed light on the science of marketing but does it I promise.
Many Baker's look at their display case as a form of marketing and that's absolutely right. In fact the appearance of the entire bakery store is one form of marketing that will draw customer's attention.
The bakery marketing strategy involves making a choice to perform actions that are different from your competitors. The bakery marketing strategy is the creation of a unique value position based upon those differentiated activities and it should be understood the strategy will involve trade-offs it means you must not only choose what to do but you must also choose what not to do to.
Better understand your bakery's opportunities you could perform your own marketing analysis. You would do this by first looking at a marketing model called the 5 C's. You first assess your strengths as a company what are you good at.
Next, you look at your customers. Who are your current customers and how can you better serve them.
Can you identify new potential customers and ways to reach them?
You'll study your competitors and measure your strengths and weaknesses against them. Think about collaborators are there other businesses or community organizations you could partner with to reach more customers such as fundraisers or cooperative marketing efforts.
Finally, the 5 C's model examines contexts that are products or lifestyle or demographic trends which you could use to your advantage to promote your bakery business .The key is to settle on a marketing strategy that allows you to choose something you're good at addresses customer needs and one that sets you apart from the competition.
The 5C really it sounds like a fancy marketing framework kind of thing but really it's just about connections.
How do you connect with your customers and your collaborators in your area?
For instance if you think about other businesses where people might go to buy greeting cards at the greeting card store or if they're going to the party store for party supplies, these are natural collaboration opportunities for you to help grow your business because as people are going out to celebrate an occasion.
They're gonna naturally make stops at these places so if you give them your business card and they give you their their business card too You're gonna be able to row each other's businesses and capture customers. Otherwise might not have walked through your front door. So that's just one example of a way that thinking about the offline networking can really help you grow your business and succeed long term
There are many social networks that you can use to bring more customers to your bakery and communicate with them.
Segmentation targeting and positioning are all part of the jargon marketers use to further narrow the approach during the analysis. Process segmentation is looking differently at customers with different needs. For example could you tailor an offering especially for bakery customers knowing.
Targeting is determining which customer segments your bakery can best serve and positioning involves looking at what customers think of your bakery. This is your brand image and what you wish customers to think of your bakery.
Your brand identity don't try to be all things to all people. You must decide first who your customers are whether it's soccer moms commuters or tourists. Decide which customer group is most important to you and then position your bakery to best fulfill those needs. These could be simple things to be effective. For instance if your target customer segment is moms with kids, you might need a slightly more kid-friendly set up in your bakery.
If the majority of your sales and profits come from wedding cakes, think of different ways to reach that target audience how else can you get to engaged couples on a personal note. I was just married several months ago and prior to the wedding my fiance and I had to go to a pre-marriage retreat at our church. There was a local bakery that donated a couple of cakes to that event. They wrote their name on the cake and they had signage business cards available to folks. As a result of that there were over a hundred engaged couples looking to arrange their wedding that knew all about that bakery. A number of them followed up with that bakery and used their cakes for the wedding and I personally bought my cake from that bakery.
An analysis of the marketing mix can help you serve your customers needs for this. We look to the marketing model called the 4 Ps. Take a hard look at your bakery product what are your signature products. What are your most profitable products and how can you grow your most profitable products.
Does your pricing cover all relevant costs have you considered ?
Any bundling of product to drive sales or margins for this ?
Think value meals or meal combo ideas such as selling coffee with a doughnut and so on.
Promotion is the next P. What do you do to promote your bakery, what tools do you use,what's working best and how can you do more of it and finally place which is really about distribution think of ways you might increase the appeal of your merchandising in front of bakery store.
Profit ties into price you've got to take into account all of the input costs going into your product and that's not just commodities. If you're looking at an environment where historical highs on commodities you look at the prices of wheat you look at the prices of oil corn dairy sugar etc. and if your price is the same as it was 18 months ago you're really putting your business at risk. You've got to factor in those inputs on an ingredient side also take a look at labor take a look at the talent that it takes you to put together these beautiful baked goods. Don't charge the same thing that they're charging at the Super Center down the street. You can't compare yourself to those folks, they purchase on a massive massive scale and you're not gonna charge the same thing. Instead of a Chevrolet as you would for a BMW just because they're both cars focus on your specializations both focus on what's unique about your products.
Hopefully by now this marketing process flow diagram is starting to make more sense when you've examined and developed your marketing strategy.
Think about customer acquisition. What tactics are you using to sell to new customers.
Customer retention: what are your tactics for keeping customers and selling them more and finally profits you can grow profits by either increasing revenue or by decreasing your costs examine creative ways. You could decrease your costs through back-of-house efficiencies. You'll find markets can be expanded by discovering and promoting new uses for your products.
According to the study, conducted by OnePoll in conjunction with Sabra an average American eats dry breakfast cereal three mornings each week. As a cereal manufacturer General Mills could grow by finding a way to promote cereal eating on other occasions. For instance as a snack. This insight led to the creation of the breakfast cereal bar category bakeries which can benefit by promoting such things as savory bagels or fluffy croissants as a lunch alternative or by offering single servings of very decadent desserts for the small-scale special occasion.
I think it's important for Baker's to really think about marketing strategy because it really gives them a fresh perspective on how they can grow their business. I know some bakeries that have been open for a lot of years in a really long time, people might think oh it's too late for me to think about marketing strategy or to change my business. I've been around for years and years but when you think about it, really mature companies out there use marketing strategy to change their business all the time. Think about McDonald's, their menus gotten healthier, they're open later hours and they've really adopted their business model to fit consumer needs and I think Baker's have the same opportunity. They have a really special place of business that people really enjoy coming to because they're coming in to celebrate a special occasion.
So if you just understand what customer needs are, how you can change your business to really serve those needs. You'll find much more success for years to come and so I think marketing strategy frameworks give you an opportunity to really sit back and think about ways that you can grow your business. So you can find success for years to come.
Hopefully I've provided some basic background for you now that will assist you while growing your bakery business.