Market Segmentation and Retail Pathway for Bakery Industry

This report discusses about the concepts of market segmentation as well as the retail pathway in the particular context of a product related to the bakery industry. It covers the philosophies and values used by the company for the quality control of the bread, quality attributes of the bread, and a flow sheet which will discuss about the quality parameters which will be used for the bread.

Running head: STRATEGIC QUALITY AND SYSTEM MANAGEMENT
Strategic Quality and System Management
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This report will discuss about the concepts of market segmentation as well as the retail
pathway in the particular context of a product related to the bakery industry. The report will
begin by introducing the product and the market segmentation process used by the company.
The report will also discuss about the concept the philosophies as well as values used by the
company for the quality control of the bread. The report will also discuss about the quality
attributes of the bread. Finally, the report will provide a flow sheet which will discuss about
the quality parameters which will be used for the bread.

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Table of Contents
Introduction................................................................................................................................3
Product.......................................................................................................................................3
Philosophy and Values...............................................................................................................5
Quality Attributes.......................................................................................................................6
Flow-sheet..................................................................................................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
The “business world in the present times has become much more competitive than it
was a few decades back” and in addition to this it is seen that “every year thousands of new
business organizations enter the business world which has further enhanced the level of
competition faced by the business organizations” who are already operational in the same
field of business (Chakrabarti-Bell et al., 2014). It is a reflection of this particular fact “that it
has become very important for the various business organizations” related to the different
industries in the present times to not only follow the strategy of product differentiation but
also of cost leadership (Chakrabarti-Bell et al., 2014). However, more important than that it is
important for the “various business organizations of the contemporary to take into
consideration the diverse needs as well as the requirements of the customers effective so as to
design and make the products or the services as per the needs and the requirements of the
customers” (Chan, He & Wang, 2012). Therefore, it is very important for the concerned
business organization to have a target customer base in mind so that they can not only focus
on the demographics of this particular customer base but also design their products as well as
services as per the requirements of this customer base (Chan, He & Wang, 2012). In addition
to these it has also become very important “for the various business organizations in the
present times to follow the various quality parameters” given by the various governmental
authorities (Wilson & Gilligan, 2012). This report will discuss about the market segmentation
as well as the retail pathway for a particular bread product.
Product
The product under consideration here is a particular kind of bread which is distinct
from the other breads offered by the other business organizations in terms of the moistness,
springiness as well as softness. Furthermore, the bread will be manufactured from a better

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quality of grain which is likely to further enhance the taste as well as quality of the bread
under consideration here (Chan, He & Wang, 2012). Moreover, the bread under consideration
here will be score very low on the cholesterol and therefore the people belonging to different
age groups will be able to consume it. It “is significant to note that the business organization
under consideration here” will offer different flavors of bread to the customers in a bid to
have a much customer base for the product under consideration here (Armstrong et al., 2015).
Therefore, it can be said that people from different age groups as well as different regions of
the nation will be able to consume it. The business organization under consideration here has
specifically designed the bread for consumption during breakfast however as the breads
would be manufactured in different flavors as well as taking into consideration the different
dietary requirements of the customers therefore it can be said that the targeted customer base
can consume the bread not only during breakfast but at other times of the day as well as per
their eating requirements and habits (Armstrong et al., 2015). It is “significant to note that the
bakery industry is one of the most saturated industries of the world and it is generally seen
that” there are many bakery companies operational within a very small area (Armstrong et al.,
2015). Therefore, the business organization under consideration is also likely to face a high
level of competition from the other bakery companies operational in the bakery industry (De
Pelsmaeker et al., 2015). The product under consideration here will be a new one and
therefore the business organization under consideration here will try to keep the price of the
bread as low as possible while maintain a high quality standard (De Pelsmaeker et al., 2015).
As already mention the business organization under consideration will try to follow the
strategies of product differentiation as well as cost leadership in a bid to mitigate the high
level of competition which it is likely to face in the business market (Chakrabarti-Bell et al.,
2014). The “business organization under consideration here will also take the help of various
kinds of effective promotional methods in a bid to reach out to larger number of customers

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from the different parts of the same region” (Wilson & Gilligan, 2012). It “is significant to
note that the product under consideration here” will also try to take the help of the various
effective strategies which have been successful in the context of the other business
organizations.
Philosophy and Values
In the “present times it is generally seen that the various business organizations”
especially the ones which are launching new products as well as services into the market are
often confused as to whether they should focus on the concept of quality or quantity
(Gellynck et al., 2009). However, “it is often seen that the most of the business organizations
of the present times end up focusing on the concept of quantity” rather than focusing on the
concept of quality and this factor significantly influences their future prospects in a
significant manner (Gellynck et al., 2009). In the opinion of experts if a particular business
organization focuses on the concept of quality rather than on the concept of quantity then it is
more likely to earn the loyalty of the customers on the score of the better quality products as
well as services which it is providing to the customers (Linnemann et al., 2006). This
particular factor in turn will enable it to maintain a stable customer base that will in turn help
it have stable revenue (Linnemann et al., 2006). Therefore, the focus of the concerned
business organization regarding this particular product will be to focus on the concept of
quality (Linnemann et al., 2006). In the opinion of many experts the primary expectation of
the customers from a particular new product is that it will provide them quality service and
that too at very affordable prices (Chan, He & Wang, 2012). The vision “of the business
organization under consideration is to become the largest bakery organization of the nation of
Australia”. The mission of the business organization, on the other hand, “is to provide the

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best quality services to the customers who take the help the products offered by the business
organization under consideration here”.
Quality Attributes
In the “present times it is seen that the various business organizations take the help of
the strategy of product differentiation in a bid to enhance the prospects of the products as well
as the services offered by them to the customers” (Chan, He & Wang, 2012). Therefore, it is
with this particular objective that the product under consideration here will provide some
added benefits to the customers which the other products related to the other business
organizations do not provide to the customers (De Pelsmaeker et al., 2015). Thus, with this
view the bread has manufactured in such a way that it is more moist, springy as well as soft in
comparison to the breads offered by the other business organizations. Furthermore, the bread
will be very low on the cholesterol level taking into consideration the health requirements of
the customers of the present times. The intrinsic qualities of the bread will be the above
mentioned qualities which have already been enumerated. The extrinsic qualities of the bread
under consideration here will be the strategy of cost leadership as well as the product
differentiation which the concerned business organization will follow for the bread (De
Pelsmaeker et al., 2015). Furthermore, the bread under consideration will score high on the
credence section as the customers will be able to see the benefits of the consumption of this
particular product within a very short time. The bread under consideration here will be
manufactured “taking into consideration the various health factors as well as requirements of
the customers”. Furthermore, the product will take the certification from the various quality
measurement agencies. The product will also take into consideration the various legal
parameters for the process of its manufacture.

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Flow-sheet
The below given figure gives the “Flow sheet which describes the expected
production process, identifying and explaining the expected critical control points and other
key inspection points”-
Figure 1: Flow Sheet
Source: (Created by the Author)
The product will be called by the name of “Diggers Dough” and the method used for
the manufacture of this particular product will be prepared through natural means.
Furthermore, the product will not take the help of any artificial chemicals for its production.

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The packing material used for the packing of this particular bread will be a recyclable one
and will be made up of paper (De Pelsmaeker et al., 2015). This will be done in response to
the current trend seen among the various customers regarding the concept of ethical
consumerism (Boys & Wilcock, 2014). One of the most important intrinsic qualities of the
bread under consideration here will its softness in comparison to the other breads offered by
the other business organizations. This particular attribute can easily be measured by
comparison with the other products offered by other similar companies. The extrinsic quality
of the product will be the method of cost leadership followed by the business organization for
the marketing of the bread under consideration here (Boys & Wilcock, 2014). This particular
factor can be measured by the comparison of the similar kinds of breads offered by the other
business organizations with the bread offered by this particular business organization. It is
“significant to note that these factors are likely to play a significant role for the future
prospects of the product under consideration here” (Boys & Wilcock, 2014). In the “present
times it is seen that various business organizations offer the same kind of products to the
customers” and therefore these features outlined above will act as the distinguishing features
of the product under consideration here and will help it succeed in the competitive bakery
industry of the nation of Australia (Wilson & Gilligan, 2012). Furthermore, the use of
effective quality control policies is likely to further enhance the “quality level of the product
under consideration here”. Moreover, “the business organization under consideration here can
also take the help of various kinds of ISO measurements” and others for the regulation of the
quality of the product under consideration here (Wilson & Gilligan, 2012).
Conclusion
To conclude, “the business world in the present times has become much more
competitive than it was a few years back and therefore the various business organizations had

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to take the help of various kinds of innovative as well as new strategies” in a bid to sustain
themselves as well as the products offered by them to the customers. It is “a reflection of this
particular fact that the various business organizations in the present times” offer the same
kind of products to the customers with a little variance among them. Thus, it is generally seen
that the “various business organizations in the present times often take the help of the method
of cost leadership as well as product differentiation in a bid to mitigate the high level of
competition” faced by the “products as well as the services offered by them to the
customers”. Another important dilemma which the majority of the business organizations
face in the present times is whether they should focus on the concept of quality or quantity. It
is significant to note that most of the business organizations in the present times tend to focus
on the concept of quantity “in a bid to enhance the amount of annual profit gained by them”.
However, it “is significant to note that these business organizations fail to sustain themselves
in the business world” for a very long time. Therefore, the “various business organizations in
the present times” have started to focus on the concept of quality which will help them to not
only earn the loyalty of the customers but also to sustain themselves in the business world for
a long time.

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References
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