International Marketing Group Project: Bourke Street Bakery Analysis

This project is an in-depth analysis of the international marketing opportunities for a bakery, specifically focusing on the New York market and the potential expansion of Bourke Street Bakery. It begins with a situation analysis, evaluating the New York bakery market's size, key players, and competitive landscape. The project then performs a gap analysis to identify areas for improvement in products, services, and expansion opportunities, considering competitors, customer needs, and the company's strengths. A financial analysis is conducted, including a three-year profit and loss (P&L) forecast, along with explanations of revenue and expense calculations, covering aspects such as sales, operating costs, and advertising strategies. The project concludes by providing a comprehensive overview of the bakery industry in New York and the strategic considerations for international market entry and growth.

International Marketing Group Project
Information

TABLE OF CONTENTS
Table of Contents.......................................................................................................................2
3.0 Situation analysis.................................................................................................................3
3.2 Area evaluation of New York bakery market..................................................................3
3.7 Gap analysis.....................................................................................................................4
Gap analysis...........................................................................................................................5
6.0 Financial analysis.................................................................................................................6
6.1 Preparation of 3 year P&L...............................................................................................6
6.2 Explanation of revenue / expense calculations and forecasts..........................................7
References................................................................................................................................10

3.0 SITUATION ANALYSIS
3.2 Area evaluation of New York bakery market
A bakery business involves production and selling flour-based products that are backed using
oven like as cookies, pastries, bread, pies and cakes. In the US, there are 2800 commercial
bakeries and number of retail bakeries are 6,000. These facts reflect the size and scale of the
bakery industry. Although, there are large numbers of bakeries in the US, among which top 4
producers contribute to 35% of revenue and other 91% of total revenue is earned by
commercial producers (Felton, 2018). In New York, few bakeries are renowned as cafes that
serve tea and coffee to their customers who would like to consume baked products at the
location.
The New York’s bakery industry is vibrant and on can found in each and every corner, in the
city. The large bakery lurking is there inside a shy awning, that was at the back side of dusty
front wall, a great smell of browned butter and toasted flour can be noticed everywhere
(Nawawi et al., 2018). However, there are only some areas in New York that offers great
pastries, cakes and breads. Behind these shops, the best and true talents of pastry chefs and
bakers play a vital role, however, only best and most excellent can survive. Whereas great
flavored coffees available in New York, that facilitates huge competitive forces for new
businesses. Government rules and regulations are to be followed by the bakery companies,
even, The Food and Drug Administration and the Environmental Protection Agency are
continuously managed the bakery’s operations and new regulation also issuing, which
maximize the cost of production (Chis, 2018).
In 2019, the revenue of Bakery Products segments amounted to $69,901million. It can be
expected that the market is to grow per annum by 2.5%. As compared globally, the majority
of revenue is produced in the US. In 2019, it founds that the average per capita consumption
is at 42.7kg (Statista, 2018); on the subject of total population figures, $211.72 are per person
revenues. In addition, the customers showed an optimistic perception regarding bakeries,
baked goods and bread including products that are manufactured by other companies than a
bakery. However, consumers cannot show their keenness to pay more for bakery products as
compared to the products of other industries, while the customers demonstrate their choice
regarding baked goods (Chiș et al., 2018).

It has been noted that Australian-style cafes having on-point cafe fare and high-end coffee are
served at the same time. In upcoming decade, the market of baked products estimated to
develop just about 1% annually. The expenditure of organization might be affected by
changes in consumer choice, economic conditions and disposable income. Some huge
commercial bakeries will maintain their competition in market due to the reason that market
is considered as highly fragmented and other firms are not very large in size. Main
commercial bakeries like as Bourke Street will carry on expanding the business with the help
of obtaining regional bakeries and other brands in New York though provides bakery
products together with coffee products to their customers (Felton, 2018).
3.7 Gap analysis
The completed GAP analysis of Bourke Street Bakery is done in the direction of finding
opportunities for improvements in products and services as well as expanding its investment
opportunities.
The environment (competitors)
The existing competitors of Bourke Street Bakery are:
 Or washer’s Bakery
 Recolte Bakery
 Hot Bread Kitchen
 Sullivan Street Bakery
 Starbucks
 MacDonald’s
 Culture Espresso
 Costa coffee (Galarza, 2018)
Service and product offerings
The company offers bakery and coffee offerings artisanal breads, cake, sweets and savoury
pastries as well as beverages and coffees with an additional offer of takeaway .The existing
ambiance, accommodating and well trained staff, fantastic service, and reasonable food prices
are the attractive offerings of brand.
Needs of customers

The wants and needs of bakery customers were different from one other, and it is based on
the locality. There is a huge difference between the needs of bakery customers of New York
and the customers come as tourist regarding bakery products. It has been witnessed that there
have been various international residents in New York, and the increase of coffee culture in
NewYork will offer advantages to Bourke Street Bakery
What company does well in existing market?
In the present scenario, the company is performing very well in the field of marketing,
quality, different varieties of coffee products and in bakery items as well as convenience. The
Bourke Street Bakery makes use of technology in their service delivery, preparation of
products and employee training.
Current Condition Desired Condition GAPs
Bourke Street bakery
business established for the
purpose to provide quality
products to their customers.
They appoint friendly staff in
an organization that attracts
customers. New coffee
mixtures are constantly being
offered by the organization to
accommodate the variety of
customers that come to enjoy
products and services
(Jennings, 2000). They well-
maintained stores are also up
to mark in the aspect of
cleanness in stores for
attracting a large number of
customers. The products
offered by Bourke Street
bakery have the potential to
be extended from Australian
Bourke Street wants to be “a
community bakery in New
York at where people come
from socio economic
backgrounds and children,
adult and old aged people can
get coffee, bread and pastries
(Nawawi et al., 2018).
Service organizations are
often labour intensive,
extremely interactive and
such organizations are
executing in various
locations and are mainly
considered as vulnerable
towards the service
performance gap.
Several menus are adjusted
as per the taste of Americans.
Some new things are like as
jam croissant, sponge cakes,
Gap 1:
Increasing number of
franchises in Australian and
emerging markets
Gap 2: Lack of knowledge
international expansion
Gap 3: Service delivery and
standards such as timely
delivery, in
inappropriate physical
evidences
Gap 4: Lacking behind
having better recruitment
policy
Gap 5: insufficient
integrated Service
Marketing Communication

market to US markets. peanut butter, a pumpkin tart
and pecan pie will be newly
added to the organisation will
be placing such products in
the US ( NewYork)
However, in Australia, Meat
pies are very famous; but for
New York people, it had
been mixed and only served
on special events like as on
holidays.
Action plan: Various kinds of products and make large space for coffee stations are a few
ways that are new and innovative for a bakery, so it would be helpful to maintain the apparent
inside the bakery business. This business entity can offer customized bakery products. To fill
such gaps Bourke Street Bakery can offer customized bakery products in New York and may
acquire large space for coffee stations to beat the existing competition. A new environment of
bakery with Coffee Products will fill in the gap of Bourke Street Bakery. It must offer
trainings to employees for expanding business in a culturally diverse market.
The current conditions of Bourke Street bakery shows that it offers quality as well as
hygienic product to their customers. For the purpose to attract large number of
customers, Bourke Street bakery hires friendly and helpful workforce and constantly trying to
provide new flavoured coffee to their customers and also takes care about the need of existing
and potential customers. Several existing menus are adjusted as per the taste of Americans, so
it would be great to capture the market share in New York and eating habits of Americans are
as same as New York people, it need to add some customized bakery products in New York.

6.0 FINANCIAL ANALYSIS
6.1 Preparation of 3 year P&L
Profit and loss forecast Year 1 Year 2 Year 3
Sales $250,000.0 $275,000.0 $300,000.0
Cost of goods sold $100,000.00 $110,000.00 $120,000.00
Gross profit $150,000.0 $165,000.0 $180,000.0
Expenses
Accounting fee $1,800.0 $1,875.0 $1,950.0
Advertising fee $15,000.0 $15,000.0 $15,000.0
Bank fee $3,975.0 $3,375.0 $3,000.0
Bank interest $18,000.0 $18,000.0 $18,000.0
Utilities $20,000.0 $22,000.0 $24,000.0
Telephone $4,725.0 $5,100.0 $5,250.0
Rent $5,000.0 $5,000.0 $5,000.0
Vehicle expenses $11,400.0 $11,850.0 $12,000.0
Stationary $2,400.0 $2,475.0 $2,400.0
Insurance $7,500.0 $7,500.0 $7,500.0
Wages $8,000.0 $8,800.0 $9,680.0
Maintenance $4,000.0 $4,000.0 $4,000.0
Total expenses
$101,800.0 $104,975.0 $107,780.0
Net profit $48,200.0 $60,025.0 $72,220.0

6.2 Explanation of revenue / expense calculations and forecasts
Revenues
In the United States, the commercial sector side is focused; the leading 50 companies produce
approx 75% of the sales (Jablonski, Perez-Burgosand Gómez, 2016). On the other hand, there
is fragment growth in the retail sector side; the leading 50 companies produce approx 20% of
the sales. The sales of the company are $250,000.0 in year 1, $275,000.0 in year 2 and
$300,000.0 in year 3 respectively.
Operating costs
Payroll
Employees will be recruited and retained employees will be recruited and retained according
to work and budget and they will be provided with the wages of $8,000 at initial year, and
this will be further increased by 10% each year.
Rent
Currently, the bakery will pay rent of$5,000 per annum.
Utilities
Bills for heat and electricity will be major expense due to excessive use of equipment. The
oven will be operated for approx 4 hours on busy baking days. A total figure of $20,000.0 in
year 1, $22,000.0 in year 2, $24,000.0 in year 3 is a reasonable estimated average.
Advertising
Total expense of advertisement will be $15000 each month. The best way for advertisement
is News Review and at the same time it will be beneficial for the company in terms of
publicity and advertisement. Business will consider advertisement initially at the social media

and by brochure distribution in colleges. Further advertisements will carried out on Labor
Day weekend. The expenses of advertisement will be kept to minimal in the in the fall, winter
and spring. The company will be totally based on community service features, WOM (word
of mouth) and liberal sampling for reaching audience and targeted customers.
Repair and Maintenance
The assumption of maintenance cost for initial year is $4,000 and then it gradually reduces to
for the next years. Aftermath of the opening year, the estimation of maintenance will be
budgeted to $4,000.
Insurance
The policy of the business owner inclusive of contents, income loss and liability will be
costing for $7,500 the company, as stated. The company will bear the expenses of insurance
for $7,500, inclusive of all Workers’ Comp, health insurance and general insurance.
Taxes and Licenses
Initially there is no such requirement for licenses and tax will be 30% on the profits.
General Supplies
The general supplier will be inclusive of primarily bread bag and the cost of the same will be
covered under utilities. The cleaning and maintenance costs will also be included in the
utilities.
Further, the material of bag that impacts the crust quality in storage will be selected by the
consumer only, so the prices have been attached with the cost of sale of every bread loaf.
Professional Fees

The professional fees will be kept at a minimum basis after the startup. All the needed
documents and bookkeeping will be conducted by the property, excluding the year end filing
as well as depreciation calculation.

REFERENCES
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