Business Plan Report: Customised Cake and Bakery Products Analysis

This business plan outlines the key elements for a customised cake and bakery products business, focusing on vegan and healthy options. It covers the business concept, vision, objectives, and goals, along with a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The pl...Read More

Introduction to Business
Operations and Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
About Business............................................................................................................................3
Background and expertise............................................................................................................4
Swot Analysis..............................................................................................................................4
Understanding of market.............................................................................................................5
Marketing plan.............................................................................................................................6
Investment needed.......................................................................................................................7
Financial opportunities................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business plan is a plan that outlines important details about the business and provides
idea about what are business and its important elements. This business plan involves information
about what are business and its vision, objectives and goals. In addition to this, business plan
also involve background and expertise and Swot analysis of the business. Followed by this plan
will also include marketing mix that outlines marketing strategies of the business and lastly plan
will involve investment needed and financing opportunities. This involves creating a budget for
new business and determination of sources for funding or finance.
MAIN BODY
About Business
Business is customised cake and bakery products business. For this business on the basis
of special orders for cake as well as other bakery products will be taken and on the basis of this
cakes and bakery products will be prepared for customers. Customisation includes design and
flavour customisation including providing healthy alternative for cake and bakery products. In
addition to this, all the products of the business including cake and other bakery items will be
vegan. This idea is based on increasing demand for vegan products and people are looking for
vegan and healthy alternative in every type of product and this is also basis for its market
viability.
Vision
“To become first choice for those who wants health along with taste”.
Objectives
 To achieve breakeven point within 6 months of starting business
 To achieve 5% market share by 2020
 To develop basis for loyal customers for long term and sustainable growth of business
Goals

 To provide high quality products to customers
 To provide innovative product offerings to customers
Background and expertise
Regarding business there is no specific background except interest in baking. Expertise
required for the business includes professional knowledge and skills for baking and ability to
effective manage business organisation. In order to gain knowledge Diploma in Baking and
Confectionary has been done to gain knowledge for business.
Swot Analysis
Strengths
 Product Offerings- Health and tasty product offering is one of the strength of business
 Customisation- This is also strength because business is provides products as per specific
need or desire of the customers
Weaknesses
 Price- Because products are of high quality and also customised and this is why their
price is comparatively higher than regular bakery products
Opportunities
 Increasing consciousness towards health- This means that people are becoming more
health conscious and this is an opportunity for Customised cake and bakery products’
business because it offers high quality and healthy food and bakery food choices.
 Increasing demand for vegan products- Demand for vegan products is increasing and this
is also an opportunity for Customised cake and bakery products’ business
 Increasing demand for bakery products like cake and pastries- Customised cake and
bakery products’ business mainly sales cake and products like pastries and this is why its
main opportunity for Customised cake and bakery products’ business.
Threats
 Increasing competition- Competition in baking industry is very strong and this is why it
is a threat that can affect performance of Customised cake and bakery products’ business.

 Recession and economic conditions leading to reduction in purchasing power
Understanding of market
Target market
Segmentation- Segmentation for customised cake and bakery business has been done on the
basis of demographic segmentation and psychographic segmentation. Demographic
segmentation involves developing customer persona on the basis of age, gender, income
profession and education. Psychographic segmentation involves identifying and developing
persona on the basis of personality and emotions of potential buyer along with behaviour and
lifestyle that determine their product choices.
Targeting- Targeting strategy for customised cake and bakery is differentiated targeting in which
on the basis of customers demand and choice they will be offered customised and personalised
products and services.
Positioning- Positioning strategy for the business includes attribute positioning. This is because
attribution of customisation differentiates it from its competitors and is also a value that it
provides to its customers.
Competition
Competition for this business can be analysed through application of Porters’ Five Forces Model
and this is as follows-
Threat of new entrants- This is a threat is associated with organisations that enter into industry
and bring new resources and processes and increase competition for existing firms in industry.
Threat of new entrants gets affected by barriers to entry and these barriers to entry include
resources and capital required to enter, skills and expertise required to enter into industry. Threat
of mew entrant is strong for Customised cake and Bakery products’ business because resources
and capital required is limited.
Threat of substitute- This is concerned with threat from the products that can be used in place
of a given product. Customised cake and Bakery products’ business have several substitutes that

can be used in place of these. This threat gets affected by number of substitute and high number
of substitute creates strong threat of substitute and weakens position of an organisation.
Bargaining power of suppliers- Limited suppliers, supplying important inputs and material for
business that is rarely available increase bargaining power of suppliers. Strong bargaining power
of suppliers enables them to increase in price of input that leads to increase in price of output.
Input and material required for customised cake and Bakery products’ business is easily
available and this is why bargaining power of suppliers is weak.
Bargaining power of buyers- Bargaining power of buyers enables them to reduce the price of
product they are buying. This power gets affected by number of buyers as well as number of
sellers. Regarding customised cake and Bakery products’ business there are limited number
sellers compared to number of buyers. Because of this new business have strong power in this
force of competition.
Industry rivalry- Regarding industry rivalry there are several forms operating in baking
industry and this is why there is strong rivalry within baking industry.
On the basis of this, competition for Customised cake and bakery products’ business is
there however, its different concepts and value can help it in effectively overcoming challenges.
Marketing plan
Product- This is concerned with offering the business and product offering of the Customised
cake and baking products’ businesses includes high quality, vegan and healthy cake and bakery
products. These cakes and other bakery products are prepared on the basis of needs and
requirements of customers and all products are specially customised for customers. Quality and
innovation are important elements that are focused in products of Customised cake and bakery
products’ business. In products offerings of Customised cake and bakery products’ business
sugar free, gluten free and different variables in terms of flavour are available to cater different
demands of customers.
Price- Price is the element or exchange value for the products that are sold to customers. Price
strategy adopted for Customised cake and bakery products’ business is premium price strategy.
This is because products are of high quality and are make specialised and this is why cost of

production for these products is high, this requires setting premium price so that business can
maintain adequate profit margin for the products. Another reason for premium price of products
is that premium price of the products communicate high quality and value for customers.
Place- Place is concerned with point where buyer and seller meet each other. In addition to this,
it also involves distribution of the products and products of Customised cake and bakery
products’ business will be sold at the shop or bakery. This means that bakery is the only point
where products will be sold especially in starting of business. However to make customised
order customers can use website of the bakery or can make order directly over phone and will
required to collect their products from bakery.
Promotion- Promotion refers to act through which organisation make efforts to encourage
potential customers to buy products or services offered by a business. This involves
communicating to target market customers regarding value that is offered by business to them.
Promotion can be done through several channels and promotion for Customised cake and bakery
products’ business traditional as well as modern channel will be used. Traditional channel
includes promoting through print media and billboards. In addition to this, social media channels
will also be used for promotion of Customised cake and bakery products’ business. This will
allow Customised cake and bakery products’ business to reach to mass audience whilst
maintaining balance in marketing cost of the business.
Investment needed
Investment needed for Customised cake and bakery products’ business involves different
requirements for starting a business. This involves getting initial material and input, rent of the
place, buying machinery and equipment, salary of staff and promotional cost. This has been
outlines in following budget for Customised cake and bakery products’ business.
Expenses Estimated budget required
Legal expenditure £100
Buying machinery and equipments £1200
Buying material and input £300
Salary of staff £3000
Computer £800
Rent for bakery £150

Total investment required £5550
Financial opportunities
Financial opportunities are ways through which one can finance starting of new business.
There are several ways through which Customised cake and bakery products’ business can be
financed and these includes partner financing, venture capitalist, Bootstrapping, Bank Loans,
Microfinance Providers and government programs offering start-up capital. Details of these are
as follows-
Partner financing- This is a strategy in which new business can get finance from another
business or organisation operating in industry. Strategic partner financing involves access to
products, staff, distribution rights and ultimate sale. Customised cake and bakery products’
business can share their new processes and gain partner financing.
Venture capitalist- This is one of the very important opportunity for financing new business and
venture capitalists are outside group that take part in ownership of the business in exchange of
capitalist. However success of this opportunity is based on idea of new business and its
presentation to venture capitalist organisation. Venture capitalists provide capital on the basis of
valuation of the company and financing through this way also help business through knowledge
and industry connections.
Bootstrapping- Bootstrapping also known as self-funding, this means that entrepreneurs invest
their individual capital in starting business. This is very important when business is being
starting for the first time, because at that time it is very difficult to get funding from outside
parties because there is no evidence for success of the business.
Bank Loans- This is also an very important opportunity for funding in which business are
funded by loan through bank. This is one of the most popular opportunities for financing
business. Bank provides two types of loan that includes capital funding and working capital
funding or loan. Starting new business requires capital funding and Customised cake and bakery
products’ business can get loan from bank. However this includes several challenges as this is a
long process.

Microfinance Providers- This is also an opportunity for financing new business in which when
new business cannot get loan from bank and do not have access to conventional banking
services. Microfinance providers can help those businesses in getting loan and capital for starting
new business. This way of financing does not involve meeting legal requirement for the banking.
Government programs offering start-up capital- There are some government programs that
provide capital and funding to start new business and this is why help from these programs can
be taken to start new business.
CONCLUSION
On the basis of above discussion it can be concluded that in present social environment
Customised cake and bakery products’ business is a viable business idea. Business plan included
identifying and determining target market and customers. Plan also involved competition that
Customised cake and bakery products’ business will require to face and marketing strategy that it
will adopt for success of business. Marketing strategy were discussed through developing
marketing mix for new business. Lastly, plan included investment that Customised cake and
bakery products’ business will require for starting and followed by this, financial opportunities
were also discussed. Financial opportunities include opportunities through which business can
get finance.

REFERENCES
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