Mercedes García Argosy Online University Marketing Planning & Strategy Dr. Richard Leiter
Due to the global economic recession, consumers are supposed to change their habits. People will stop to visit expensive restaurants, but food will remain a basic necessity for them. Our home business company will be able to offer high quality products at affordable prices. (Bannister, A., 2008, May 14). Products will be available in 30 days. Profits will begin to flow within the next 30, 60 days. The complete market penetration is supposed to take place within the next 12, 24 months.
SWOT Analysis ( SWOT, 2009) Higher management capability Products high quality Cost advantages Favorable access to distribution lines Good production control Good quality control Good inventory control Able to operate under budget More flexible than big businesses
PERCEPTUAL MAP High Quality Low Quality Low Price High Price Home Baked Goods, Inc. (HBG)
SIC 2051 Bread and Other Bakery Products, Except Cookies and Cra 2052 Cookies and Crackers NAICS 2007 Manufacturing Wholesales Retailers Bakery products for retailers 31181 Bread and Bakery Product Manufacturing 424490 Bakery products (except frozen) merchant wholesalers. 445291 Baked goods stores, retailing only (except immediate consumption) 44529 Retailing bakery products not for immediate consumption made elsewhere. 424450 Cheese confections (e.g., curls, puffs) merchant wholesalers 311821 Cookies Non-store Retailers 454 – This subsector includes mail-order houses, vending machine operators, home delivery sales, door-to-door sales, party plan sales, electronic shopping, and sales through portable stalls. <ul><li>Due to the business structure, various classifications apply. For tax-payments purposes – IVU & state commercial taxes – it is acceptable to use the Bread & Bakery Manufacturing general classification (31181). It is requested, however, to attach a detailed report to the tax filings for the general census benefit. </li></ul><ul><li>By January 7, 2009 the Office of Management and Budget issued a special notice document announcing possible changes for the 2012 North American Industry Classification System (NAICS, 2009). This document does not alter any of the included classifications. </li></ul>
COMPETITION <ul><li>There is no detailed information about puff pastries sales. </li></ul>Number of bread & baked goods sellers. 56 Number of puff pastries sellers 4 <ul><ul><li>Total market share </li></ul></ul>21.1 % Wholesalers market share 3.3 % Number of establishments with E-Commerce 55 Total sales $16,172,710. E-Commerce sales percent relating to total sales 0.4 %
POTENTIAL ENTRANTS <ul><li>Any enterprising housewife . </li></ul>PRODUCTS SUBSTITUTE Some sugar free products. POTENTIAL BUYERS Adults and children of both sexes and incomes. POSSIBLE SUPPLIERS Wholesale food suppliers Suppliers by Internet Other local suppliers