Marketing Strategy for Bakery Industry: PESTLE, SWOT, Porter's Five Forces, STP Analysis

This article discusses the marketing strategy for the bakery industry, including PESTLE, SWOT, Porter's Five Forces, and STP analysis. It also summarizes the strategic position statement of the bakery and how generic company objectives influence the formulation of marketing strategy in a highly competitive environment.

Marketing Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
AC 1.1 Performing a Pestle analysis to understand the macro environment impact on Bakery
industry........................................................................................................................................3
AC 1.2 Evaluation of SWOT analysis to understand the internal environment.........................4
AC 4.1 Determining the Porter five force to analyse the competition........................................5
AC 3.1 STP analysis...................................................................................................................6
AC 4.1 Summarizing the strategic position statement of the Bakery.........................................7
AC 2.1 Generic company objectives influence by the formulation of the marketing strategy in
highly competitive environment.................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing strategy is all above refers to includes effective plan for customer attraction
development towards with the proper plan and continues innovation expansion for revenue
generate via uses of new advertising tools. It has power to grow business performance in
competitive market (stevani, 2022). Bakery in Warwick has speciality in wedding cakes
development. It provides different range, different design, test of cakes. It influences from the
three other bakers who also apply similar approaches designs in cake backing. This study will
develop multiple information which require for effective marketing strategy development for
bakery growth in UK are PESTEL analysis, SWOT analysis, Porter's 5 forces, STP and strategic
position statement for survive sin the competitive market.
MAIN BODY
Task 1
AC 1.1 Performing a Pestle analysis to understand the macro environment impact on Bakery
industry
The Bakery is specializing in the wedding cakes but having a many competitors in the
existing market. Before making an innovation in marketing strategy it is required to evaluate the
market internally and externally from which it can be easy for the bakery to increase their market
share. For determining the external area and environment pestle analysis can be very helpful to
get the information and data about the baking industry. The pestle analysis is a framework which
is utilized to gain the outer or external factors which can affects the baking business.
Political: The political factor includes the government interference and regulations which can
impact the bakery in definite manner (Lestan, 2020). The bakery is operating in different food
products and having a specializing in wedding cakes. The bakery organization can get the impact
from the government guidance as the authority made the rules related to the hygiene and health
safety where if the bakery business do not perform according to rules and regulation the
government has right to drop the penalty.
Economic: The economic factor refers as GDP rates, income valued and such more. Economy is
the important part of the industry who helps in making the company growth and stability
accordingly. The bakery can be affected by the modifications in taxation.

Social: Social components includes the health and safety measures, market, population and such
more. A bakery industry can be affected by the health and safety issues as the consumer wants a
well cleaned and tasty bakery products who focus on the health and safety of the public. Some
organizations do not aware of the cleanliness and hygiene which creates a problem in the product
and organizational performance. A bakery has to focus on the taste of the food products from
which they can be able to attract the new customer as well.
Technology: Technology is nowadays increasing in definite manner. With the help of internet
services the bakery can be able to spread out their products and also can advertise the products
and easily approach the consumers (Kovalainen, 2020). Utilization of digital things and
technology, it also can help the process to overcome the corruption in local economy structure.
Legal: This element includes the legal authorities, laws ad legislation. The bakery organization
is required to follow all the laws and legislation implement by the legal structures which is
essentially required to be exhibited.
Environment: The bakery industry can be affected by the environmental things and required to
keep focus on the factors. For example, a bakery is required to conduct the waste management
process in their working place and not harm the environment and also needs to put the efforts in
carbon emissions of the country (Li, Larimo, & et.al., 2021).
AC 1.2 Evaluation of SWOT analysis to understand the internal environment
A swot analysis is a tool and framework which help to understand the internal structure
or environment of the organization. Here, performing the swot to evaluate the bakery industry.
Strength: The first factor strength refers as the ability and power of the organization who helps
them to obtain the effective and beneficial results. The bakery has a qualified and experienced
staff who is able to make the baked products so delicious and qualitative. In the success of
bakery the qualified staff is playing a great role in enhancing the business. Because of the
experienced staff people like the taste of the food and products and also able to offer the big
order like wedding cakes (Bardinov, 2019). Along with this, the bakery business is also has a
unique art and design of making the cookies, pastries and cakes which increases the values of the
products.
Weakness: The weakness section includes the points and process where the organization is
needed to improve the areas of weakness. The bakery industry has a weakness of high pricing
structure as the organization is having the well-disciplined staff and provides the well-structured

and quality products. Even, in the covid19 pandemic the industry has to make the services of
supply and deliveries from which the company has to increase the cost values. In addition, the
new market is also a weakness as for managing the business takes a lot of time and have to
approach the loyal customers to win the trust and confidence by giving the facilities as per their
needs.
Opportunities: The bakery industries have an opportunity to expand their business by utilizing
the skills and knowledge accurately. As, it has been known that the bakery is having a good staff
and effective working process but if the company puts more effort, they can be able to convert
the bakery into the bakery institute where they can teach the people or trainees can work for free
and can learn the baking works and process. Even they also have an opportunity where they can
provide the healthy diet plan to the customers and can make the products with low calories and
no sugar which will attract the dieting customers (Endriyanto, & Hidayat, 2019).
Threat: The bakery has a threat of not getting the sale and productivity due to the covid19
pandemic which makes the people unemployed and also impacted the organizational sale. Also,
the bakery industry have a big and tough competition in the market where the competitors are
putting their best efforts and developing new strategies. The origination of new organization is a
threat for the bakery and can be able to obtain the market shares at large amount.
AC 4.1 Determining the Porter five force to analyse the competition
The porter's five force model is utilized by the organization to determine the competition in the
market and their competitive strategies from which a company can be able to differentiate their
services and strategies accordingly. This model has been consisted of five components which are
described below:
Threat of new entrance: The bakery business has a threat of new entering bakery business in
the market as the new generation people have a new ideologies and innovation to implement in
their organization and can overtake the growth and particular bakery. The innovation and
technology has given the new business people to utilize their knowledge indefinite manner and
lead the business at higher level. The new entering companies are the threat and risk for the
existing bakery organization.
Threat of substitution: In the studies it has been founded that many of the bakery organizations
are get replaced by the another bakery and food industries and giving the great competition in the

market (Grub, Kim, and et.al., 2020). The above mentioned organization is also having a threat
of being substituted by the another company and can shut down the business for long years.
Negotiation of buyer: The people who buy and purchases the goods have an ability of
negotiation and a power from which they are able to get the product at lower prices. In the
bakery industries, there are many other competition has been developed in regular basis where
the organization has to give the products as the buyers command otherwise, they can go to
another competitive place and can purchase their requirements.
Power of supplier: The bakery has a power as they are having the effective suppliers and supply
chain management from which they can be able to expand their business in another market. As,
the existing bakery has a well-experienced staff in their company they are able to have the
uniqueness in their product and can put the pricing range according to them.
Competitive rivalry: In today world, the bakery business has covered with big market in the
society and providing the different tastes, products and services to approach the people at
maximum number (Cuevas-Vargas, Parga-Montoya, and et.al., 2019). It has been founded that
there are many small and big bakeries who are giving the different prices, differentiation and
relationship with consumer which affects their business widely and able to obtain the effective
results.
AC 3.1 STP analysis
Effective marketing strategy of business product is effectively managed and possible to
develop customer attraction towards with goods or services when management team or
marketing department highly concern of STP analysis (palmatier and crecelius, 2019). Because
its useful for develop new strategic plan for customer attraction development towards with the
product and services are as follows,
Segmentation: It includes organization when produce or launch product they mainly concern
towards identification of age group, lifestyles, genders which category of people mainly prefer to
buy this specific goods and services (song and et.al., 2021). So Bakeries in Warwick mainly
faces issues from other competitive industries which also decides to provide similar type of
services into wedding with application of similar design, pattern or colours which is very
challenging term for this business. So idea of this term their management authority has duty to
involve new practices in market segmentation like which customer mainly prefer uses of quality
of brand, and they do have potential to attract other propel as well. Therefore, its clear that

company marketing department experts firstly concern on segmentation which is different range,
unique pattern of cake which attract children to old age people. It can be also possibles when
bakers concern on sugar free cake which useful approach for old age customer attraction
expansion.
Targeting: Successful marketing strategy can be effectively managed when company concern
towards with the selection of specific group or evaluation customer that they do have interest in
buying this specific goods. Bakeries in Warwick management has duty to influence target
audience attraction towards with the discount application and trust development towards with the
goods (mahendra and sanica, 2020). And when it provides wedding cakes, so they do have duty
to target adult who interested in wedding and it can be easily managed with utilization of
technology application because its useful for attract audience attraction.
Positioning: This term is all above refer to develop variation in individual mindset with brand
effectiveness creation which means unique brand name has power to attract audience (mcdougal
and et.al., 2021) So its important term that Bakeries in Warwick develop their specific brand so
when individual decide to buy cake they firstly analyse that this brand cake is one of most
effective brand which has quality of products and different options in cake design as well.
Having this brand image is one of the most effective tools to influence customer attraction
towards with the goods and services.
AC 4.1 Summarizing the strategic position statement of the Bakery
A strategic positioning is a brief or description of the particular product and service
which helps to understand the strategies the company has utilized. Bakery industry is providing
the different products like cookies, baked food items, pastries and such more but having a
speciality or expertize in making the wedding cakes. They target the people who are performing
the occasions and events like wedding ceremonies where they provide the delicious services and
products to the customers and let them enjoy the taste (Eddy Akmar and et.al., 2021). The bakery
is having an expertize and experienced staff and chef who are able to make the cakes and pastries
so delicious from which they are able to get or approach the consumer at high level.
Bakery offers the cakes and their products to increase and enhance their productivity and
also can be able to overcome the threats and competition in the market so that they can be able to
get the effective outcome. A well-trained staff and their supply chain management accelerates
the bakery to obtain the excellent results and creates a uniqueness in their services and products.

Along with this, their pricing strategies and range are quite impressive from which they are able
to approach the consumer in definite manner and able to make the position in the market at
higher level (Dakouan, 2019).
Task 2
AC 2.1 Generic company objectives influence by the formulation of the marketing strategy in
highly competitive environment
Generic company mainly refers to companies which has their no specific brand name,
label or logo and it mainly concerns on pricing decisions. This type of company generate very
simple or basic product packaging because they do have low prices goods (Onufrey and Bergek,
2021). This type of company object is to attract audience attraction towards with delivery of
quality of goods and effective goods which provide satisfaction to customer. Having this term
that audience has great knowledge or idea of product company product not get affects from this
activity. But the major challenges which influence substantiality of generic company object is the
competitive industry or their unique and attractive marketing strategy like social media tools,
continues try to resolve customer issues, online delivery of goods or survives, brand name with
low price, effective packaging and many more aspects impacts and influence formation of
marketing strategy in competitive market. Knowledge of competitive market its important term
to involve or engage appropriate and sustainable marketing strategy approaches for long term
growth because individual entrepreneur when decide to develop new business set-up they
recognize various aspects of business. Because having this environment in business marketing
strategy has power to connect more audience and it influences people attraction towards with the
company as well.
Company object is mainly refers to achievement of goal with effective decision-making
or planing. New marketing strategy like social media applications, different websites, content
writing marketing and many more aspects has major reason which badly affects on generic
company objective (Vermunt and et.al., 2019). Because this type of company mainly concern on
product delivery its not has power to provide label or create brand name because of financial
issues. But the major things is for the effective marketing strategy and survives in the
competitive market small size or large size business which means almost every type of business
has duty to consider and refer to engage appropriate marketing strategy. Also, generic company

when not able to develop this strategy for marketing they do have duty to provide quality of
products and unique design which attract audience attraction and when customer decide to by
specific product their first concern is this specific company products. Formulation and
identification of all the marketing strategies its very clear that generic company get badly
influence from other business who concern on unique or attractive marketing strategy
application. So from the above study that marketing strategy formulation effect generic business
object its import term to involve new practices for effective marketing strategy.
CONCLUSION
It has been summarized from the above study that Bakeries in Warwick their different
cake bakers has duty or responsibility to attract audience attraction with application of different
marketing strategic tools. This study has been identified that when three bakeries which nearby
of this vary area they do have to develop uniqueness, creativity in cake design and more
interesting structures or patterns of cake which beneficial for attract audience attraction. It's been
also evaluated from the above study that SWOT, PESTEL, STP and Porter's 5 forces has power
to develop effective marketing strategy because both the model mainly develop attraction
towards with the new features also application of technology tools useful for advertising which
mainly attract audience attraction.

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