Report on Business Opportunity: Flavored Banana Nut Bread in USA

This report assesses the business opportunity for Clinton Street Baking Company to introduce flavored banana and nut bread in the competitive US bakery market. It describes the product's unique attributes, including gluten-free and low-fat options with natural sugars, and explains how it meets unmet consumer needs by offering a premium-quality, innovative product. The report identifies the target market as regular buyers of branded bakery products and discusses a premium pricing strategy supported by premium packaging and a mobile application for brand awareness. The analysis includes the size of the target market, estimated at 43.0 kg average per capita consumption in 2019, and emphasizes the company's differentiation through quality ingredients and economically priced products. The report concludes that the product has the potential for significant market popularity due to its uniqueness and superior taste and quality, projecting increased demand for such flavored breads among American consumers.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Content
Introduction................................................................................................................................2
Describing the products planned to sell.....................................................................................2
Explaining how the product meets an unmet consumer need or problem.................................2
Assessing the target market or consumers.................................................................................3
Point of Differentiation for the firm...........................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
This research report is a comprehensive evaluation of potential business opportunities
as well as competitive advantages of flavoured banana and nut bread of Clinton Street Baking
Company (Lovelock and Patterson 2015). It has been identified that bakery industry in USA
has been competitive in nature. Thus, it is essential for Clinton Street Baking Company to
approach the market with unique product to gain competitive advantages.
Describing the products planned to sell
The innovative product that Clinton Street Baking Company will be attempting to sell is the
Banana and Nut bread. The bread will be having an eggless category also. It is gluten free
and a low fat product, in spite of its appeasing sweet taste and use of natural sugars and grade
food seasoning and colouring agents (Clintonstreetbaking.com 2019). Since the product is
innovative and new in the market, the company has planned of a premium pricing strategy.
No other big bakery brands in the US market have thought of innovating flavoured breads,
other than b. patisserie of Chicago (Clintonstreetbaking.com 2019). However, they did not
use natural extractions in their product which makes the bread smell fresh and the sugar
content in their bread was higher. Clinton Street Baking Company uses natural sugars in
their breads and muffins and that is why this can be considered as an innovative product in
the American market. The product is supposed to be priced at $3.5 USD for 500 grams. The
family pack of the product is supposed to be priced $10 USD (Kotler and Armstrong 2015).
As this product is innovative and is based on selective flavour, the company will
release new flavours of the same bread product also in the upcoming months.

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Explaining how the product meets an unmet consumer need or problem
The product that has been developed by Clinton Street Baking Company is innovative
because the consumers of American confectionary industry has not seen flavoured breads of
such premium quality before. However, the taste of the customers are changing constantly
and this product will be uniquely promoted in the American market also. The product will
target only the regular buyers of the branded bakery products as they are the ones who would
be enticed to buy this bakery product more profusely tan the occasional buyers. In spite of the
uniqueness of the product, the premium pricing might pose some barriers for increasing sales
in the American market (De Mooij 2018).
In order to counter the challenges brought about by premium pricing, the company is
planning strategies like premium style packaging to market the product. The company is also
launching their own mobile application, which will help the customers to get idea about the
variety and price of the new and existing products of the Clinton Street Baking Company.
Since most of the American people are heavy mobile users, this strategy is supposed to
arouse the brand awareness which will in turn create awareness about the new product.
Assessing the target market or consumers
Business to Business/ Business to Customer
The Clinton Street Baking company tends to deal with the Business to Customer
client segment. The Baking Company serves directly to the different clients as present. The
company has a large variety of café dishes to offer to its customers who are generally
families, officegoers or college students (Kotler et al. 2015). The premium offer which is
made by the brand is limited to the different customers.
Consumer segment

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The customer segment which the firm serves cannot be stated to be belonging to a
particular segment but instead serve a multi segment consumer base. This means that, the
Clinton Street baking company serves customer segments as per demographics, where the
customers belong to all ages, as per the occupation, which involves businesses and
professionals as well as students. With respect to the income, the baking company serves the
Middle income to Upper incomed group.
Size of the Target Market
The size of the target market for the Nut and Banana bread can be stated to be huge.
This is because, this product not only attracts those consumers who are the regular visitors of
the baking company but also attracts those consumers who are health conscious and avoid
having anything sweet. Hence, the target market size of the firm can be stated to be large and
estimated to be 43.0 kg (average per capita consumption) in 2019 with per person revenue of
US$212.88 generated in 2018 (Statista.com 2019).
Customer needs and expectations
The customer needs which the business aims to fulfill can be stated to be that they
would like to have fresh products which are good in taste and health conscious as well.
Product and customer needs
The Nut and Banana bread will be baked twice a day, making the product fresh.
Additionally, minimum quantity of sweet will be used for the product which makes it healthy
and meets the customer needs as well.
Quantity and frequency of purchase

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It is estimated that the customers will be purchasing around 1 loaf of bread around
twice a week which can be stated based on the estimation 43.0 kg (average per capita
consumption) in 2019.
Point of Differentiation for the firm
The point of differentiation which the firm aims to cater can be stated to be the quality
of the goods being provided (Clintonstreetbaking.com 2019). The Clinton Street baking
company provides the best quality baking products which are economically priced but with
the best ingredients and hence is of good quality and healthy.
Conclusion
In conclusion, it can be mentioned that the proposed product of Clinton Street Baking
Company is supposed to gain enormous market popularity due to its prime nature and
uniqueness. Moreover, the taste and quality of the product is higher than any relative brands
in the sector. It can be projected that demand of such flavoured breads will increase at rapid
pace as customers demand innovative bakery products. Majority of the Americans love
consuming bakery products and this a significant opportunity for Clinton Street Baking
Company.

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References
Clintonstreetbaking.com 2019. Clinton St. Baking Co. & Restaurant [online]. Available at:
https://clintonstreetbaking.com/ (Retrieved on: 5 Mar. 2019).
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Kotler, P. and Armstrong, G., 2015. Principles of Marketing-Global Edition. Pearson.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Statista.com 2019. Bread & Bakery Products [online]. Available at:
https://www.statista.com/outlook/40050000/109/bread-bakery-products/united-
states(Retreived on: 5 Mar. 2019).