Analysis of trends and opportunities for new bakery shop in Sheerness

This study analyzes the trends and opportunities for a new bakery shop in Sheerness, including current trends in the UK bakery industry, growth and success opportunities, and factors affecting success. The study also recommends growth strategies for new bakery ventures in Sheerness.

Business research

TABLE OF CONTENT
TOPIC: Analysis of trends and opportunities for new bakery shop in Sheerness...........................3
CHAPTER 1: INTRODUCTION....................................................................................................3
Background of the study:.............................................................................................................3
Aim:.............................................................................................................................................4
Objectives:...................................................................................................................................4
Research question:.......................................................................................................................4
Research rationale:.......................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
Theme 1: Examining current trend in the UK Bakery industry:..................................................4
Theme 2: Analysing growth and success opportunities for new venture:...................................5
Theme 3: Evaluating Factors that affect success of new venture:...............................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
Research type:..............................................................................................................................7
Research approach:......................................................................................................................7
Research philosophy:...................................................................................................................7
Data collection:............................................................................................................................8
Data analysis:...............................................................................................................................8
Ethical consideration:...................................................................................................................8
CHAPTER 4: DATA ANALYSIS..................................................................................................8
CHAPTER 5: DISCUSSION.........................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

TOPIC: Analysis of trends and opportunities for new bakery shop in
Sheerness.
CHAPTER 1: INTRODUCTION
Bakery industry is one of the fastest growing industry of the UK, this sector worth 3.9
billion euro in the country. This industry actively contribute in the betterment of food market,
there is high demand that drive consumer towards bakery market. Bakery shop fall under SME
where corner shops provide wide range of food products to the consumer, food industry focus on
variety of item including bakery items like cake, bread, biscuit and other type of snack item that
fulfil demand of consumer (Linzalone and Lerro, 2021). Bakery shops can be found in the corner
area where, small business tend to provide fresh cake and other item. Consumer in the UK
demand more taste in bakery item, day by day changing demand of the consumer impact whole
industry and allow small business to grow rapidly. It is very clear that bakery industry is
connected with every external factor, small shop and corner stall provide wide range of bakery
item. The bakery industry of the UK is divided into three segments:
Large plant bakers that contribute 75% value in the bakery industry and actively
participate in the betterment of the food industry. Large plant bakers produce wrapped bread that
have shelf life of around 7 day or 1 week, these bread are for daily use where consumer regularly
purchase bread. Most manufacturer of bread focus on retail market, they keep eye on bakery
industry as well as retail industry to become competitive in the market.
In store bakery contribute 35% value to the bakery industry, these are small corner shop
that produce their own raw material and make cakes and other food item. This area of bakery
industry actively participate in the betterment of industry, even small bakery shop actively
contribute in the economy growth. In store bakery are solely run by individual, if a new venture
want to explore bakery industry then they have to focus on in store bakery pattern that allow
them to start at initial stage.
Background of the study:
This study is based on Celebration bakery, this is new venture planning to open their
business in Sheerness. Celebration bakery will consider market condition of Sheerness where
current trend will be capture to become competitive in the market, celebration bakery will
consider growth and succession opportunities while entering or starting in local market of
Sheerness. Celebration bakery is new business venture which means this company have to

consider key effective matrix including IFE matrix, EFE matrix and QSPM matrix that will
allow celebration bakery to examine key factors arrive in bakery industry of the UK.
Aim:
The aim of this study is “To Analyse trends and opportunities for a new bakery shop in
Sheerness. ” A case study of Celebration bakery.
Objectives:
To examine current trend in UK Bakery industry.
To analyse growth and success opportunities for proposed new venture in Sheerness.
To evaluate factor affecting success of new venture in the market.
To recommend growth strategies for new bakery ventures in Sheerness.
Research question:
 What are current trend in the UK bakery industry?
 What are growth and success opportunities for new venture?
 What are different factors that affect success of new venture?
 What are different growth strategies for new bakery venture?
Research rationale:
The reason for selecting this topic to provide clear understand about bakery industry of
the UK and allow SME and new venture to develop strategies to capture current trend in the
industry (Phan, 2016). There are certain other reason associated while choosing this topic, at fist
this provides effective understanding about current trend in bakery industry, secondly this topic
allows SME to understand which growth and success opportunities will be best for them in the
process. And there is personal interest in understanding this topic and explore bakery industry
and its impact on economic growth of the country.
CHAPTER 2: LITERATURE REVIEW
Theme 1: Examining current trend in the UK Bakery industry:
According to Mathuravalli, (2021), UK's bakery industry is one of the fastest growing industry
that actively contribute in the betterment of the economy. Trend in this industry keep changing
according to taste and preference of the consumer, it is very clear that sugar free bakery is
current trend in the industry where consumer are demanding sugar free item such as sugar free
biscuit and even cake, bakery and confectionery have massive growth in food area, bakery
industry is one of the fastest growing industry that have rapid growth and small scale business

related to bakery industry are generating surplus profit. Food sector of the country demand new
taste, there is high pressure on food items to meet the demand of the consumer.
It is very clear that UK have stable market mainly in food sector, every business whether
small or large enjoy stable condition of the UK (Arshad and et.al., 2017). Health conscious
people give birth to current trend in the bakery industry, for example there is high demand of
sugar free bakery item which impact whole food market and craft new sugar free trend in the
market. After health consideration, consumer demand not only sugar free bakery item, but they
are demanding yeast free bakery item as well because consumer believe yeast as leavening agent
that impact healthy diet.
Bakery item contain those ingredients that impact health process, consumer who focus on
their diet do not allow themselves to consume bakery products. Due to rapid change and rise in
current trends in the industry, demand of bakery products has up lift whole food market. Certain
factors that impact current trend of bakery industry including social factor where consumer has
adequate spending capacity that allow them to spend on bakery products and satisfy their needs.
Stability in food market give push to high demand of bakery item, current trend played vital role
where consumer keep demanding those products which become challenging for the company to
produce.
Theme 2: Analysing growth and success opportunities for new venture:
According to Linzalone and Lerro, (2021), every new venture focus on catching growth and
success opportunities that allow them to boost their sales and aware consumer about the
business. Every business organization analyse growth opportunities when standing at initial
stage, these opportunities may include market penetration, market development, product
innovation or diversification. When entrepreneur focus on entering into new market then they
have to consider success strategies that allow their new venture to survive the market condition
and become stable.
New venture in bakery industry need to identify growth and success opportunities that
allow them to survive market condition of Sheerness. There are certain growth opportunities that
allow new venture to survive in the market including merger and acquisition option, strategic
alliance with other venture with same scale and other type of option that can be adopted by the
venture in entering new market (Belc and et.al., 2019). It is very clear that new business venture

need capital funding to survive in the market, venture need to arrange sufficient capital that allow
them to ensure smooth success.
Linzalone and Lerro, (2021) highlighted, key area from where new venture can raise
funds and continue their business process, for example; funds from business loans, debt capital,
equity capital and other type of source of funds. For new business venture, it is beneficial to
reach angel investor for funding as they not only provide enough funding to business, but they
provide expertise that allow business to explore different area of development.
New venture should focus on product differentiation strategy that allow them to bring
innovation in bakery industry, differentiation will allow bakery shop to keep their product
different from its competitors and become competitive in the market. Small food shops including
bakery need to consider innovation as key element to become effective in the process.
Theme 3: Evaluating Factors that affect success of new venture:
Zulkarnain, Wahyuningtias and Putranto, (2018) state that, there are certain factors that impact
smooth process of new venture, every business organization mainly start get influenced with
certain factors including internal and external. When entering in new market, business need to
consider these factor as this will impact success of new venture, these factor affect growth
strategies of the company where business become unstable. New venture can only craft effective
growth strategies with the help of different model for example IFE matrix, EFE and QSPM
matrix. Bakery shop in this industry may need proper market analysis which allow them to
ensure they examine each and every element of the market.
Zulkarnain, Wahyuningtias and Putranto, (2018) highlight three model which can be used
by bakery venture to survive the market condition, at first, business should focus on IFE matrix
that allow bakery shop to analyse their internal factors. These internal factor is crucial in
examining the business internal strength, new venture may consider IFE as growth strategies.
Whereas new venture have to consider EFE matrix that allow them to analyse external factors
that might impact smooth flow. External factors may include current market condition, trends,
political involvement, economic stability and other type of factors that will affect new venture.
Condition of market play vital role when it comes to starting new venture, growth and
success opportunities may be beneficial for the company but business need to consider factors
that will impact their new venture, these factor can arrive anytime anywhere in the business and
slow down speed. For overcoming these impact, there are three effective matrix to reduce its

impact and allow company to stay active in the process of new venture. It is very clear that every
business organization need to consider key factors before entering new market but if there is new
venture then, they have to carefully examine factors as compared to growth and success
opportunities because factors might fail every strategies crafted by the business organization.
CHAPTER 3: RESEARCH METHODOLOGY
Research type:
Research type is means data which is collected by researcher to complete his study and achieve
goals set in this study (Cr, 2020). When considering different type of data, this is divided into
two group; qualitative and quantitative. Qualitative data means detail collected by researcher on
the basis of emotion, feeling and thematic form whereas quantitative data means numerical and
statistical where researcher analyse facts & figures. For the completion of this study, researcher
will conduct quantitative data research that allow them to collect and analyse numerical and
statical data.
Research approach:
Research approach is set of board assumptions for collecting and interpreting data, this is a plan
that consist of steps that will be required in the completion of the study. There are two type of
research approach, these are; inductive and deductive. Inductive research approach means
researcher will generate brand-new theory to complete the topic whereas deductive research
approach means researcher will consider existing theory that allow them to complete this study
(Kumar, 2018). For the completion of this study, researcher will conduct deductive research
approach to understand current trend in bakery industry and completion of this study.
Research philosophy:
Research philosophy means a belief or phenomenon that should be consider while collecting and
interpreting the data, certain set of belief impact data gathering. There are two type of research
philosophies, these are; interpretivism and positivism. Interpretivsm means integrated human
interest in the completion of the study or individual that shape the society's behaviour whereas
positivism means philosophy that focus on observation including measurement and believe that
society shape behaviour of individual (Pandey and Pandey, 2021). For the completion of this
study, researcher will conduct positivism where he will explore observation for effective data
collection.

Data collection:
Data collection means researcher need to collected data to complete their study, data collection is
important part in methodology. There are two data collection method, these are; primary data
collection and secondary data collection that (Snyder, 2019). Primary data collection focus on
gathering new data which is not been used before whereas secondary data collection means those
data which was collected before and have used many times by other researcher for their study.
For the completion of this study, researcher will secondary data collection where he will collect
data from published source.
Data analysis:
Data analysis is one of the most important thing in which researcher analyse the collected data
and reach to a result. It is a process of inspecting, cleaning and transforming raw data into
finished conclusion that can be used in the completion of the study, there are two type of data
analysis tools, these are: qualitative data analysis and quantitative data analysis. Qualitative data
analysis allow researcher to focus on non-numerical data and conclude facts whereas quantitative
data analysis means researcher will consider numerical data that conclude statistical figure.
Ethical consideration:
Ethical consideration is one of the most important thing researcher will consider for the
completion of this study in the process, ethics is crucial as this allows researcher to consider
those elements which do not impact or distress any important result of new or previous studies,
for the completion of this study, researcher have considered certain ethical consideration for the
study. These are:
 Before releasing data to researcher it must be de identified.
 Usage of data will not damage any result or outcome of previous studies.
CHAPTER 4: DATA ANALYSIS
Celebration bakery is the bakery industry outlet, which deals in variety of cakes,
doughnuts, pastries, breads and many more. The risk factors in the celebration is very high as
some times the cost may get fluctuate because of government decision or demand supply curve
fluctuation causing the bakery outlet to suffer. The bakery industry is very large and diverse, the
bakery business faces many types of risks some of these are as follows:- fluctuation in the price,
price fluctuation happens seasonally but some times it can be loss occuring to the business as
some products have high rate in some season and low in another, this is said as the many of the

raw material that is being used in the bakery product such as the price fluctuation in wheat can be
40% same can happens in LPG and other natural gases.
The increase in the reveue of the bakery industry
Causing the firm to decrease it's margin and increase the cost o product. There is the
limited opportunities for the bakery business to grow in the United Kingdom as there is high
competition in the bakery market. Every bakery outlet have speciality in some of the product and
they catch the total market of that product which is harmful for the new outlet to make a stand in
bakery product in the cut throat market. Health and safety is the only thing after taste that the
consumer want, the new outlet must have to show that they are taking care of hygiene to let the
consumer trust them, without winning the trust of consumer's on the health methods running
business can be very risky (Ekin. Kutlu,Meral, Ceylan, Cavidoglu,2021).

Like any kind of business the bakery business will also remain competitive all the time,
it's not a seasonal business it's the full time yearly business which runs every year offering the
products to the consumer at favourable price. All over in the celebration bakery the main factor
of risk that may affect the smooth functioning is the revert back of the pandemic the pandemic
that has gone may come back and to solve this issue the bakery should keep the long living
products which can be used even after many days without any worry.
With the development in this bakery industry it has let develop many more trends
influenced by the popular people that the normal people follow, it has let the bakery industry to
move forward and started its own trend, some trends in the bakery industry are as follows- the
sugar free or reduced sugar products — in the last five six years the bakery products with
reduced sugar have seen a great demand and sell, half of the consumers in the UK bakery
industry wants the sugar less products from bakery and by reducing the sugar the firm can also
follow the health and wellness campaign, Longer life — after the pandemic situation that has
been in the country from last two years causing the people to fight for food,
as of this the people's of the country are demanding long shelf live of the bakery products
which can be stored for long time, home baking – these are the products that the consumer
wants the most as these products were natural and less processed products which contain less
harmful products and it is also good for the health. The wants of the home baking cookies and
chocolates are increasing significantly, emotional well-being- the recent changes in this industry
regarding the products which can be made according to the event and want of customer , leading
the consumer to create emotional well-being towards the bakery products (Cullinan, Sigsgaard,
Jeebhay, Raulf, Tarlo, 2021).
The huge profit earning opportunity that the bakery industry have given to the owner's of
the bakery when the pandemic has occurred in the country leading the people to take huge stock
of the bread in high rates. It has a huge benefit to start a bakery who sells naturally processed
products without using any other supplement or colour will attract the customer's towards the
bakery also the wide spread of sugar free and glutton free culture is also regarded as the
opportunity to achieve a great height in the bakery industry. The main challenge that come in
front of bakery industry or any of the outlet is that these products are totally based on

transportation any lack in transportation will become a hurdle to industry and may create
problems to the industry.
No brand recognition is also regarded as the challenges as the bakery industry doesn't
have a big brand on which the customer's can really rely on. Poor cash flow can also be regarded
as the biggest challenge for the bakery industry may cause the bakery to wind up. the outlet who
have the best culture and taste in food products also face some challenges but it's not like it only
have some challenges but it also have some of the opportunity to face and grow even after facing
the challenges, the big challenge that most of the people doesn't want ot lie in the market of the
bakery industry is that it doesn't have a good career option but the opportunity is that it create a
good environment for the established business and ensure the creativity.
The biggest challenges that the bakery industry is facing in United kingdom is that it is of
conservative thinking, but the opportunity for this challenge is that beginning to open for the new
solution, using the alternative approaches in the business and working with the new suppliers in
the market (Castro,Posada, 2019). the main opportunities in the bakery business is that it has a
low barriers to entry, it may give high profit in the huge traffic location also it is very easy in the
bakery business to create the loyal base of the customer's.The customer satisfaction is very
necessary in any kind of business hence to make customer satisfy the new business must have to
run according to the needs of the customer's.
CHAPTER 5: DISCUSSION
It has been evaluated from the above, as current trends in the market can be understood as
audience’s preferences, many of the customers are looking for the product which meets the
nutritional values and consists of good diet, free from any chemicals and inorganic things. Thus
for the bakery most of the food items consists of the heavily amount of the sugar which gives the
adverse effect on health (Ou, J. and et.al 2019). Thus customers are diet conscious they are
demanding for the product which consists of zero sugar and other processed ingredients. As to
meet the demand of the customer is creating lots of pressure on the manufacturer, they are facing
challenges in order to make the product nutritional as well as to consider the taste of customer. It
is also found that customers are not only looking for the cutting of sugar from bakery product but
they are also demanding for yeast free product, which is challenging for the bakery firms.
From the above description it is also evaluated that for the new business venture it is most
important to come up with the potential strategy to stand or established in the market. Market

research always plays a significant role in streamlining the functionalities, otherwise new
business might have to face the vulnerable situations (Mishra, Chakravarty and Mandavgane,
2021). It is found that for the bakery, it discuss the methods for entering into the market, as they
can collaborate with the same scale company or can proceed with other strategic alliance and
acquisition option.
The new venture can be able to raise the financial support for their business and can
develop the Bakery organization at definite growth. The funds can be collected by different
sources from where they can easily get the appropriate amount of capital which can benefit the
business to invest and can earn from the new venture (Woomer and Adedeji, 2021). There are
many bakery organization takes place where now consumer is demanding the differentiation
which can grow and develop the new venture at definite level. Product differentiation is one of
the best strengthen factor which will enable the successful growth and development and can
bring the innovation in the business world.
Along with this, identifying the negative factor which can impact the new venture has to
be done accordingly to support and overcome the issues. Analysing the internal and external
environment of the new venture bakery business can help to understand the factors and situations
which can ensure them to put heir efforts in overcoming the negative impacts. For a new venture,
understanding the market area is important from where they can easily take the decision which
can benefit the new venture. For overcoming the negative impacts the business of bakery can
adopt the different strategies which can support them to overcome the factors and can enter in
new market with appropriate understanding and education (Chhanwal, Bhushette and
Anandharamakrishnan, 2019). Understanding these all areas can deliver the effective results to
the company can bring the demand in the market with the implementation of different strategies
and methods.
CONCLUSION
This study as discussed Bakery industry in the UK and provided details how this impact
economic development of the country. It is very clear that bakery industry is rapidly growing and
fulfilling the demand of the consumer, there are current trends in the industry including, sugar
free bakery item, gluten-free item and yeast free food products manufactured by bakery shop in
the market. Later this report has discussed background of the study where introduction to
industry and company have been provided, this study focus on bakery industry and its growth in

the market. Later this report has discussed literature review where viewpoint of author have been
provided in which each author had their own viewpoint on bakery industry and how to survive in
new market and grow/success opportunities for new venture.
Later this report has discussed research methodology that allow researcher to collect data
and analyse it for completion of this study, this may include type of research, approach, methods,
philosophy and ethical area researcher need to consider while completion of this study. Later this
report has discussed data analysis which provide analysis of collected data and condition of
industry for establishment of new venture. At last this report has discussed discussion where
overview of industry have been provided and discussed key element company need to consider
in the process.

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