Gluten-Free Bakery Business Plan

The assignment explores the burgeoning gluten-free bakery market in Australia. It examines industry trends, consumer demographics, competition analysis, and marketing strategies for a successful gluten-free bakery venture. The provided resources include reports on the gluten-free products market, business plan templates, and insights into Melbourne's gluten-free scene.

Running Head: Law 1
BHO6505- Marketing Management
Assessment 3:
Glutenfree4U Marketing Plan
Name:
Student ID:

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Contents
Executive Summary:....................................................................................................................................3
Marketing objectives:..................................................................................................................................4
Situation Analysis:.......................................................................................................................................5
About company:......................................................................................................................................5
Customer:................................................................................................................................................5
Context:...................................................................................................................................................6
Collaborators:..........................................................................................................................................7
Competitors:............................................................................................................................................7
Marketing Analysis and Strategies:..............................................................................................................8
Segmentation:.........................................................................................................................................8
Targeting market:....................................................................................................................................9
Positioning:..............................................................................................................................................9
Tactical Planning:.......................................................................................................................................10
Products:...............................................................................................................................................10
Price:......................................................................................................................................................11
Place:.....................................................................................................................................................12
Promotion:.............................................................................................................................................12
Conclusion:................................................................................................................................................13
Appendices:...............................................................................................................................................14
References:................................................................................................................................................15

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Executive Summary:
Gluten is a type of protein which is usually found in wheat, barley, and rye. It is also present in
food which is made from grains include bran, bulgur, durum, couscous, graham flour and matzo
flour. Gluten is very nutritious because it is a protein. Gluten improves the texture of the food
and makes it tastes better. This is normally used in processed foods. However, it must be noted
that this food has disadvantages also, and some of its disadvantages are stated below:
 Gluten has potential to damage the intestinal, and it is considered as major disadvantage
of gluten. Those people who are suffering from Celiac disease eating food with gluten
which cause an immune reaction which damage the lining of their small intestines
because maximum number of nutrition’s are absorbed by small intestine and this result in
deficiency of nutrition’s.
 Gluten can be problematic for those people also who are not suffering from celiac, as this
problem is known as gluten intolerance. However, this problem is more common than
celiac as it affects 18 million adults and children’s in the United States. It must be noted
that this problem does not involve the immune system or any damage to intestinal, but it
cause digestion problem.
There are number of grocery stores which sell gluten free products in their stores, and price of
these packed products are usually higher in comparison of those products which includes gluten.
This can be understood through example; frozen lasagna which is gluten free may cost more

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dollars as compared to lasagna dinner which contains gluten. As stated above, numbers of
grocery store are there which offer products as substitute of food with gluten.
Gluten Free 4 U is the store established in Melbourne which provide gluten free bakery products,
as they also sold dairy free, soy free, egg free, yeast free and fructose free products. This bakery
is specialist for providing gluten free and nut free products. However, this bakery wants to
expand and diversify their business and for this purpose this report states the marketing plan for
Gluten Free 4U. This plan is based on the idea of Dawn Lacobucci's Marketing Plan.
Subsequently this paper is concluded with brief conclusion.
Marketing objectives:
Gluten free 4U is the bake house which provide 100% gluten free and allergy friendly products,
and this house is also specializing in providing variety of breads, cakes, savouries, pastries,
pasta’s, biscuits and other bakery products. From last few years, demand of gluten free products
has been raised by the consumers and nothing is done by the market for providing these
products.
Gluten Free 4 U is the bake house which offer gluten free and nut free products to their
consumers, especially for those consumers who are suffering from Celiac and to those also who
are not suffering from celiac but have problem of improper digestion. This bakery is providing
high quality gluten free products. The main aim of this bakery is to provide gluten free products
without compromising with the taste and these products are offering with the excellent service.

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In other words, gluten free products do not mean that the quality of the product and taste of the
product is less. For this purpose company refine its recipes on continuous basis and ensures that
they will satisfy the taste buds of their consumers. Products made by bakery are not only for
celiac patients but these products are for everyone. Other objective of this bakery is to develop
innovative and delicious range of products (Gluten Free 4U, n.d.).
Situation Analysis:
About company:
After working in traditional free bakeries, owner of Gluten Free 4 U noticed high demand of
gluten free products in bakery items. Owners also realized that expectations of consumers in this
field are not satisfied and market does not take any action for meeting the demand of the
consumers. At that time, they decide to provide 100% gluten free products and introduce this
innovative step in the market.
The main approach of this bakery is to use high quality ingredients for the purpose of offering
perfectly creates baked collection. Bakery assured their consumers by providing high quality
delicious products without gluten and consistency of products also (Gluten Free 4U, n.d.).
Customer:
Generally, company targets every type of consumer in the market, but their main aim is to
provide gluten free products to those consumers who are suffering from Celiac disease and
improper digestion. Products are offered to those consumers also who are gluten intolerant
follower or wants gluten free diet.

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As per the company’s statement these products are not only for those who diagnosed celiac but
for everyone who wants high quality and delicious taste.
Context:
Bakery business is considered as very tricky business because it requires expertise and other
factors such as accurate market, loyal customers, etc. it is necessary to establish unique taste for
getting success in the market. In this part we conduct SWOT analysis of Gluten Free 4 U:
 Strength: strength of this bakery is that it provides large number of products which are
offered to large number of consumers for the purpose of meeting their needs. Another
and most important factor of this bakery house is that it provides gluten free products
which are accompanied with excellent services.
These products are offered to especially those consumers who are diagnosed celiac and
suffering improper digestion. While providing gluten free products bakery does not
compromise with the quality and the taste of the baked products.
 Weakness: the main weakness of the gluten free 4 u is the other bakeries which are
offering gluten free products, and these bakeries pose challenging to the gluten free 4 u
by already own saturated bakery business in Melbourne. Other weakness of this bakery
house can be its chosen location. Some of these cafes are Seedling Cafe – Melbourne
CBD, Spudbar – various Melbourne locations, etc (The Coeliac Plate, 2014).
 Opportunities: opportunities available to bakery are not limited, as there are number of
consumers who love baked products but not able to consume them because of the gluten
present in the products such as patients of improper digestion and celiac diagnosed.
Gluten Free 4 u provides gluten free products to such consumers without compromising
the taste and quality of the product.

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 Threat: threat for business is established competitors who are running their business
from many years in the Melbourne and earned loyal consumers. Other threat for business
is new competitors who are also launching similar business at similar location because
these new competitors are also offering their products with innovative techniques and
better tastes. However, another area of threat is changing government policies regarding
food standards (profitable Venture, 2017).
Collaborators:
Gluten free 4U conduct very hard work for reaching the position on which they are right now
standing, and now they want to expand their business into Regional Victoria and Interstate for
which bakery is looking for an options. They are looking for passionate and driven people who
want to help the bakery by expanding the business, products and reputation of Gluten Free 4 U.
however, it must be noted that right now there is no franchisee and collaboration of business
(Gluten free 4u, n.d.).
Competitors:
Now, number of cafes and bakeries are there which offer gluten free products to their consumers
with excellent services and some of these bakeries and cafes are:
 Gluten Free Swiss Cakes and Bread.
 Mister Nice Guy's Bakeshop.
 Black Ruby Bakeries.
 Caffe Strada.
As stated above, some new competitors are also entering into the market which can be accessed
as threat for the Gluten Free 4U (Yum gluten free, n.d.).

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Marketing Analysis and Strategies:
Segmentation:
Segmentation of market is designed for the purpose of analyzing the most profitable segments of
market for the business. However, this analysis is also done for understanding the needs of the
consumers. Market segmentation of gluten free products is stated below:
In 2015, global market of gluten free products was valued at $3,126 million, and experts also
make expectation that amount of this market will reach $5,279 million by 2022. This market
expands almost at CAGR of 7.5%. Diet of gluten free products is necessary for those people who
are suffering from celiac and improper digestion as it cause problem in small intestine of human
body. This food also helps the people in improving their cholesterol level, energy levels, and
digestive systems. Usually, these foods are considered as healthy foods and help in weight loss
by making right combination with other foods (Satsangi, 2016).
Growth of the market of gluten free products is expected by experts in near future because of
increase in number of celiac patients. However, market growth is also driven by millennial,
improvement in marketing activities, and improved distribution channels. The impacts of these
drivers are expected to increase if small and medium sized manufacturing units increase their
investments in this market. The global gluten free food market is expected to witness high
growth in near future.
Markets of gluten free products are based on type and geography. By type, market segments
include more range of bakery products which are gluten free, baby food which is gluten free,
ready means which are gluten free, and continental dishes which are gluten free. On the basis of
geography market of gluten free products is segmented into North America, Europe, Asia-

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Pacific, and LAMEA. This can be understood through diagram stated in Appendices (Diagram
1).
However, this market is also segmented on the basis of distribution channel and on the basis of
source. As distribution channel includes conventional sources, hotels & restaurants, educational
institutions, hospitals & drug stores, specialty services and on the basis of source oilseeds &
pulses, rice & corn, dairy & meat products, and other crops (Markets and Markets, 2015).
Targeting market:
As stated above, in near future market of gluten free products will expand because of which it
becomes necessary that company change their strategy while targeting their consumers. Some
changes are already occurred in the strategy of companies such as now companies mainly
targeting the consumers suffering from celiac disease (Thomas, 2013).
Similarly, companies can also target those peoples who are concerned about their health. As peer
one research third category of people is also there who wants to buy gluten free products because
of their nutritious value. Some people preferred gluten free products because of their urge to lose
their weight. Therefore, companies can target those consumers who are conscious about their
health and suffering from celiac and improper digestion (The Gluten Free agency, n.d.).
Positioning:
Positioning analysis is considered for the purpose of showing how the current brand of the
company is perceived by its market place. In this while identifying the target market
opportunities, it is necessary to compare the way brand of the company is perceived with the
targeted market needs.

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In the Gluten Free 4 U is already established its offered products in the market by mainly
concentrate on the integrity of the product. Product integrity of Gluten Free 4 U includes:
 Bakery provides high quality of texture, taste and structure in their products.
 Products served by Gluten Free 4U are 100% gluten and nut free, and they are allergy
friendly also.
 Their products are manufactured in total gluten free environment.
 Products have capacity of being freeze and thaw stability (Gluten Free 4U, n.d.).
Tactical Planning:
Perception of consumers as gluten free products can be considered as key driver which increase
the growth of the industry in next few years. Unique strategies are adopted by the manufacturers
for increasing their sale and expanding their business such as in store cooking demonstrations,
shelf tags indications etc. as stated, gluten free play key role in increasing the demand of their
consumers (Dublin, 2017).
Products:
Product strategy can be considered as product life cycle and also the execution plan for further
development. This strategy allows the business to concentrate on product attributes. Gluten Free
4 U can launch new products for the purpose of expanding their business and for also increase
their market penetration. Gluten Free 4 U is already offering bakery products to their consumers
but now they can also offer gluten free baby food, gluten free pasta, ready means which are
gluten free because these products attract the consumers at global level. There are number of
manufacturers such as Pinnacle Foods, Inc., Hain Celestial Group, Inc., General Mills, Inc., and
Kellogg Company are increasing their market portfolio by introducing these products with high

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nutrition value. This can be understood through example; recently gluten free chocolate was
launched by Udi's in UK, and the two categories of these chocolates that are milk chocolate and
raisin clusters, plus milk chocolate and caramel clusters attract the large number of consumers
(future market sights, 2017).
Price:
Gluten Free 4 U can adopt two strategies for the purpose of expanding their business and
launching their new products:
Value based price is the strategy which is used by company for pricing their product at initial
stage. This strategy is not used exclusively by the company, and value of the product is
calculated by considering estimated value of the product to the consumer rather than the actual
cost of the product or historical pricing. This can be understood through diagram 2 stated in
appendices (Dholakia, 2016).
In this strategy, Gluten Free 4 U can make their pricing strategy by considering the experience of
their consumers and present value of the products offered by them.
Other strategy is market penetration strategy which can be used by organizations for pricing their
products. In these companies set low price at initial level of the product. The main aim of this
strategy is to attract the new consumers on the basis of low cost of the product. This strategy is
effect for the purpose of increasing the market share and sales volume by reducing the
competition in the market.
Gluten Free 4 U can use this strategy for launching their new products stated above and for
attracting the consumers for new as well as existing products. By using this strategy they can
reduce the competition at market level (Business dictionary, n.d.).

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Place:
Place strategy is considered as key strategy in the marketing mix related to any product and
service. This strategy outlines how and where company should place their products and services
for the purpose of gaining for the purpose of gaining market share and consumers.
Gluten Free 4 U can place their products near the education institutions, fitness centers, and
institutions where celiac patients get their treatment. However, they can also distribute and sell
their products in grocery stores because in these stores high number of consumers can be gained
by providing them everything under one roof.
Bakery can target educational institutions and fitness centers because in these places because in
these laces there are number of consumers who are fitness freak and health conscious.
Promotion:
Next and last strategy of tactical planning is promotion strategy, and this is considered as the
stage when business decided to introduce its products in the market. It includes choice of
communication they want to include in their marketing plan. For this purpose business conduct
detail market research, segmentation of market, and decide their budget. Generally, large
companies choose national campaign especially in those cases when brand is already familiar to
the consumers. On the other hand, small companies have very limited options to promote their
products. Sometimes, small business chooses direct selling of their products because of budget
restriction (Universal Class, n.d.).
Following are some options which can be used by gluten free 4U for promoting their products:

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 Bakery can launch their product by using more creative format, because creative things
always attract the consumers.
 Bakery can distribute free samples in the fitness centers and education institutions.
 Advertisements are the best way to make the people know about any new product.
 Social platforms can also be used for introducing the new product (Zucker, 2017).
Conclusion:
After considering the above facts, it is clear that Gluten free 4 u can expand their business by
using the above stated strategies. Brief summary of these strategies are:
Company can segmented their market on the basis of type and geography such as by type include
more range of bakery products which are gluten free and geography market of gluten free
products is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Companies can also target those peoples who are concerned about their health and people of
third category also who wants to buy gluten free products because of their nutritious value.
Marketing planning of company include four factors that are:
 Product: it includes launching of new products.
 Price: it includes value based strategy and penetration strategy
 Place: it includes those places where consumers can be gained such as fitness centers,
grocery stores, etc.

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Promotion: it includes creative launch of product, free samples, etc.
Appendices:
(Diagram 1)
(Source: Satsangi, 2016)
Diagram 2

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(Source: Adams, 2014)
References:
Adams, I. (2014). How to Shift From a Cost-Plus to a Value-Based Pricing Strategy. Viewed at:
http://www.optimizationgroup.com/how-to-shift-from-a-cost-plus-to-a-value-based-pricing-
strategy/. Accessed on 30th September 2017.
Business dictionary. Market penetration pricing. Viewed at:
http://www.businessdictionary.com/definition/market-penetration-pricing.html. Accessed on 30th
September 2017.
Dholakia, U. (2016). A Quick Guide to Value-Based Pricing. Viewed at:
https://hbr.org/2016/08/a-quick-guide-to-value-based-pricing. Accessed on 30th September 2017.
Dublin, (2017). 2017 Report – Global $33+ Billion Gluten-Free Products Market Analysis 2014-
2025 – Research and Markets. Viewed at: https://www.aboutpharma.com/blog/2017/06/21/2017-
report-global-33-billion-gluten-free-products-market-analysis-2014-2025-research-and-markets/.
Accessed on 30th September 2017.
Future Market sights, (2017). Gluten-Free Products Market: Global Industry Analysis and
Opportunity Assessment 2015-2025. Viewed at:
https://www.futuremarketinsights.com/reports/gluten-free-products-market. Accessed on 30th
September 2017.
Gluten Free 4 U. about Us. Viewed at: https://glutenfree4u.com.au/about-us/. Accessed on 30th
September 2017.

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Gluten Free 4 U. Product Integrity. Viewed at: https://glutenfree4u.com.au/productintegrity/.
Accessed on 30th September 2017.
Gluten free 4U. Business Opportunities. Viewed at: https://glutenfree4u.com.au/business-
opportunity/. Accessed on 30th September 2017.
Gluten Free 4U. home. Viewed at: https://glutenfree4u.com.au/. Accessed on 30th September
2017.
IBIS, (2017), Cake and Pastry Manufacturing in Australia. Viewed at:
https://www.ibisworld.com.au/industry-trends/market-research-reports/manufacturing/food-
product/cake-pastry-manufacturing.html. Accessed on 30th September 2017.
Markets and Markets, (2015). Gluten-Free Products Market by Type (Bakery Products, Pizzas &
Pastas, Cereals & Snacks, Savories, and Others), Source (Oilseeds & Pulses, Rice & Corn, Dairy
& Meat Products, and Other Crops), & by Region - Global Trends & Forecast to 2020. Viewed
at: http://www.marketsandmarkets.com/Market-Reports/gluten-free-products-market-738.html.
Accessed on 30th September 2017.
Profitable Venture, (2017). Bakery Business Plan – SWOT Analysis Sample. Viewed at:
http://www.profitableventure.com/bakery-business-plan-swot-analysis/. Accessed on 30th
September 2017.
Satsangi, S. (2017). Gluten-free Products Market by Type (Gluten-free Baby Food, Gluten-free
Pasta, Gluten-free Bakery Products, and Gluten-free Ready Meals) - Global Opportunity
Analysis and Industry Forecast, 2014-2022. Viewed at:

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https://www.alliedmarketresearch.com/gluten-free-products-market. Accessed on 30th September
2017.
The Coeliac Plate, (2014). 100% gluten free Melbourne. Viewed at:
http://thecoeliacplate.com/melbourne-100percent-gluten-free/. Accessed on 30th September 2017.
The Gluten free agency. Gluten-Free Market Trends. Viewed at: http://thegluten-
freeagency.com/gluten-free-market-trends/. Accessed on 30th September 2017.
Thomas, J. (2013). Gluten free: The marketing and regulatory environment. Viewed at:
https://www.just-food.com/management-briefing/the-marketing-and-regulatory-
environment_id123021.aspx. Accessed on 30th September 2017.
Universal Class. Marketing Strategies: Promotion, Advertising, and Public Relations. Viewed at:
https://www.universalclass.com/articles/business/marketing-strategies-promotion-advertising-
and-public-relations.htm. Accessed on 30th September 2017.
Yum gluten free. A guide to the latest gluten free bakeries. Viewed at:
http://yumglutenfree.com.au/products/gluten-free-food/a-guide-to-the-latest-gluten-free-
bakeries/. Accessed on 30th September 2017.
Zucker, M. (2017). Marketing Healthy Food: Strategies To Make Discovery Easier. Viewed at:
https://www.forbes.com/sites/matzucker/2017/02/22/marketing-healthy-food/#13f9603b62e8.
Accessed on 30th September 2017.