Global Marketing Report: Analyzing Baker's Delight's Sri Lanka Entry

This report provides a comprehensive global marketing analysis for Baker's Delight, a bakery franchise headquartered in Australia, focusing on its potential expansion into Sri Lanka. The report begins with an executive summary and an introduction to global marketing, emphasizing the importance of adapting strategies to local markets. It then delves into a detailed market analysis of Sri Lanka, including population demographics, market size and growth rates, and identification of market barriers and drivers. The organizational analysis examines customer behavior, the 4Ps of marketing, competitor analysis, and the company's competitive advantage. The report also incorporates macro-environmental factors using Porter's Five Forces, value chain analysis, and the BCG matrix. A SWOT analysis synthesizes the internal and external factors, leading to a conclusion that provides recommendations for Baker's Delight. The report aims to assess opportunities and challenges in the Sri Lankan market, offering insights for effective business expansion. It also provides an overview of the bakery industry and its growth potential, highlighting the importance of strategic planning in global marketing.

Global
Marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................4
1. INTRODUCTION.......................................................................................................................5
BACKGROUND.............................................................................................................................5
2.Market analysis: ......................................................................................................................5
2.2 Population.............................................................................................................................7
2.3 Market barriers and drivers:..................................................................................................8
3. Organisational analysis:..........................................................................................................8
3.1 Customer Audit and Buyer Behaviour..................................................................................9
3.2 4P’s:.....................................................................................................................................11
3.3 Competitor Analysis:..........................................................................................................13
3.4 Competitor Advantage of your Product (perhaps – the USP).............................................14
3.5 Positioning Map of Competitors ........................................................................................14
4. Macro environment...............................................................................................................17
4.1 Porter five forces model......................................................................................................19
4.2 Value Chain.........................................................................................................................21
4.3 BCG Matrix:........................................................................................................................22
5. SWOT Analysis....................................................................................................................24
6. Conclusion.............................................................................................................................26
7. REFERENCES..........................................................................................................................27

EXECUTIVE SUMMARY
The current report is about the global marketing which is a chain of activities for
adjusting the strategies in an organisation by adapting the conditions of a particular nation.
Global marketing is more than just selling of product and services in international market as it
involves adoption of practices for offering products as per the culture and manner in which they
get accepted by the customers. This report focused over Baker's delight which is headquartered
in Australia and also maintains a chain of operations in New Zealand and Canada. Now,
company is planning to expand its operations within Asian market by approaching Sri Lanka.
For this, it has performed market analysis in order to determine the challenges and opportunities
present within the market of Sri Lanka regarding setting up of bakery's delight using several
models such as Porter's five force model, Pestle analysis. From this it has been found country is
not much flexible in term of adopting technological changes and also there is a price control
policy to save economy which affect the profitability level of the companies which is a negative
factor for the organisation. In addition to this the competition is relatively higher within the
industry and buyers have high bargain power. Hence to deal with this, Baker's Delight must
focuses over improving their operations to reduce the cost of company and also must regularly
evaluate the competitors strategies so that actions to deal with this can be formulated. Despite of
this, it has been identified that Sri Lanka has greater growth opportunities for the Barker's
Delight as the suppliers power if low which make easy availability of raw material, literacy rate
is higher that make employment of staff easier and country is good in FDI that ensure easy
availability of fund.

1. INTRODUCTION
Global marketing is very much important aspect for an organisation and enables to adjust
and evaluate the marketing strategies as per the particular nation. Global marketing is very much
broad concept and includes the process of selling, creating and positioning by promoting
products in the global market. Large organisations usually perform research and development
practices before expanding into foreign market in order avoid risk factors present and gaining
knowledge regarding the market in which they are entering. This report is based on Baker's
delight which is well known brand in Australian franchise chain with local outlets in new
Zealand and Canada. That organisation was established in year 1980 and it has over 700 bakeries
in the whole world and now organisation aimed to expand its business within Asian market by
entering into Sri Lanka in order to offer Fresh baked products (ABOUT BAKERS DELIGHT,
2019). This report is based on the identification of several market opportunities and challenges
that are present in the market for expanding business. Before entering into market, evaluation of
threats are being performed along with major skills and capabilities that are required before
entering into international market. For that project, Sri Lanka is considered for expanding the
business practices of Baker's delight in Asia which is suitable country as it is considered as one
of large market and 58th most populous country in which people of all age group people lives.
But before entering into the market of Sri Lanka an evaluation over market will be performed to
determine several opportunities as well as challenges present in market so that expansion can be
performed in effective manner (Bahadir, Bharadwaj and Srivastava, 2015). For performing this
several models will be such as Porter's five force model, Pestle, BCG matrix, Value chain model
and SWOT analysis. After performing this investigation using these models for research and
development, the baker's delight will be able to take decision regarding expansion in particular
nation.
BACKGROUND
2.Market analysis:
Today, the expansion of global bakery product industry is growing at rapid pace and its is
forecasted to reach up-to 7.0% p.a. In the upcoming years. The market of Sri Lanka is also
growing fast and it has been identified that the market share of bakery product grown up to
14.8% which is very high and provide a greater market growth opportunities to the businesses

that are trying to enter in market of Sri Lanka (World Bakery Product Market, 2019). This is
because demand is higher among customer regarding the bakery product which support
businesses in getting easy acceptance with in the market. In addition to this, the market potential
rate of Sri Lanka in terms of bakery product is around 0.15%. But despite of all these positive
factors regarding the Sri Lanka bakery market, these also brings up several tough competitions
from the rivalries that are already operating in country. This includes perara & sons which is a
big giants in market of Sri Lanka. This country is an upper middle income nation which is
located in the south Asia and it is one of most suitable for the marketers to establish in that
market because it is one of income and population based organisation. It has 88.7 billion dollar
GDP and Per capital income is 4100 billion dollar in year 2018.
2.1 Size of market and growth rates:
The potential market size of that industry or organisation that are GDP at constant price
in the first quarter of 2018 recorded USD 13115.84 million that is very much potential for
organisation to deliver one of best value to the ultimate consumer base. With the economic
growth rate in the first quarter in year 2018 estimated as 3.2% in comparison to the other nations
(Food & Beverage market in Sri Lanka on high growth path, 2014). From the last decades the Sri
Lankan food and beverages industry and their outputs grown rapidly.
(Source: Bakery Industry Market growth rate in Sri Lanka, 2019)
Sri Lanka is a developing city which covers a wide range of urban areas and the growth
rate of Bakery industry is rapidly increasing, which represents that the business expansion in Sri
Lanka related to Bakery industry has wide future growth. The increasing interest of people
related to bakery products will support the market growth. In the market of Sri Lanka the
Illustration 1: Bakery industry market growth rate in Sri Lanka

demand of bakery product is high as there is major population is lies over consuming bakery
products, so the growth of bakery industry is high in Sri Lanka.
2.2 Population
Sri Lanka is an island country in South Asia which is located in Indian Ocean. As per the
population analysis of the report of 2019, the estimated population of Sri Lanka is around 21.32
million which is less than the population of 2013. Sri Lanka is also a developing country which
covers most dense areas that are lying on urban cities (Beck, Chapman and Palmatier, 2015). Sri
Lanka hosts a impulsive age structure which involves a wide age bracket of 25 to 54 years old
people who are basically dominating the country. In Sri Lanka around 42.6 percent of the
population is lying in the age bracket of 25 to 54. The wide part of the Sri Lank us lies on the
working population, so the idea of Baker's Delight to expand in Sri Lank will be effective for the
firm in attainment of higher growth and success, thus in the market of Sri Lanka working
population is high which could be resulted in developing opportunities for the business (Sri
Lanka Population 2019). The population of the Sri Lanka in 2018 is 20,950,041 that is one of
large proportion of the people resides in the whole world.
2.3 Market barriers and drivers:
For an industry while entering into new market they have to closely understand the
market barriers and drivers to remain always competitive by giving best products and services
(Griffith & Hoppner, (2013). In context of Baker's Delight they conduct the through research
and development to evaluate the major factors that hinders or foster the market while enter with
the Products of Baker's delight to remain always competitive that are as follows:
The Drivers:
The major drivers of the market of Sri Lanka are the high rate of GDP that helps to
enhance the per capita income of consumers to purchase one of best products and services. With
the support of World bank the government of Sri Lanka can be able to get the fiscal reforms,
improve the financial management and helps to enhance the both public and private support. In
context of Baker's Delight with the help of growing and high ratio of income of people they can
be in best manner operates in business environment to achieve desirable outcomes (Horner and
Swarbrooke, 2012). Apart for the tariffs, duties and taxes that are responsible to importer that
includes the excise duties, national building tax and special commodity levy and value added

taxes that are major factors to open new businesses in the market of Sri Lanka to compensate the
needs and wants of consumers in best manner.
The barriers:
While entering into new market organisation faces some kinds of challenges or barriers
that are as follows:
In Sri Lanka the inconsistent and unpredictable rules and policies that includes the
taxation, rules and customs with regulatory approvals while enter into the market of Sri Lanka
(Kolk, 2014). The another major issue that they probable faces that are lack of supply of
labour that hindrances the operations in the market of Sri Lanka as qualified workers majorly
lacks. Many business representatives states about the rigid labour laws that creates problems to
adjust the staff size and their composition to get right kind of outputs in an organisation.
3. Organisational analysis:
This report is based on the Baker's Delight which is an Australian owned franchise chain
of outlets that are locally operated in the new Zealand and Canada. It was established in the year
1980 as an single bakery store and now it has over 700 bakeries in all over the globe. They
always focus on producing products and services as per the consumers needs and focus on
enlarge the business opportunities in market of Sri Lanka to evaluate the each and every aspect
before operating in that market so that one of best opportunities can be reaped in positive
manner.
3.1 Customer Audit and Buyer Behaviour
The customer audit is one of the most crucial concept which helps in providing a
complete and real picture from the customer point of view (Berthon, Pitt, Plangger and Shapiro,
2012). Through this, the Baker Delight will be able to study the different perspectives and
requirements of the customers which will ultimately help them in introducing new fresh baked
product in Asian market particularly in Sri Lanka.
Criteria Explanation
Who The primary occupants of the new fresh baked products are the
children ranging between age group of 6-17, adults from age group
of 18-40.
The new Fresh baked products will be purchased by parents because

their children will going to love such food products and also
working people and youth who are involved in loving food.
The products of competitors are purchased by parents and working
people only because either they find superior quality in their
products or the prices may be low compared to Bakers Delights
products.
What The customer will get the benefit of healthiness as Baker Delight
will bring fresh baked product which will free from oil and deep
fries.
The factors which particularly influences demand include hygienic
and healthy products which will be good for health for all age group
people (Boone and Kurtz, 2013).
The function performed by new fresh baked product is that it
provides the benefit of healthy food which has low or no oil in it.
The important buying criteria relates to the quality and price of the
products.
The basic criteria which is to be used for comparing the product is
price.
The customer expects that they must know all the ingredients and
usefulness of the new fresh baked product.
Where The decision for buying the product has been selected as an offline
store of the Bakers Delight in Asian market specifically in Sri
Lanka.
The customers can get information on internet and official website
of the company as well.
The product will be purchased from store of Bakers Delight.
When The first decision which has been made to enhance the purchase of
the products has taken place when various people were becoming
health conscious and leaving the deep fried and oily bakery items.
The products was repurchased when it was liked by customers and

with their reference and word of mouth, more customers came to
purchase the product.
Why Customers buy these products because they are familiar with the
brand and have faith in the products because of higher quality of
products.
The customers are involved in selecting one brand over the others
because they consider that brand suitable for themselves and have
loyalty in the ingredients, hygienic and quality of that product.
How Customer buy such products by considering their manufacturing and
expiry dates, ingredients, packaging, etc.
This buying process last for 10-15 minutes.
The marketing mix has four different elements where product is a
fresh baked product which influences customers to become health
conscious. Pricing strategy is competitors pricing where the
customer is influenced as price of the product is kept lower than the
competitors (Casswell, 2012). The place is concerned with physical
store which influences customers that the products are really fresh.
The promotional tool will be advertisements on social media and
internet because customer uses that very much and they can easily
get information about the product over there.
Customer uses the product when they have to consume something
good with healthy ingredients.
The fresh baked products fits into their lifestyle when they will
become health conscious and start consuming only healthy items.
They are willing to spend on this product below compared to their
competitors.
In actual sense, they do spend less but when they get loyal to the
product then they can even spend more for this product.

3.2 4P’s:
The 4Ps of marketing consist of the factors involved related to the marketing of the goods
and services. In that includes the product, price, place and promotion of product and services to
remain always competitive in marketplace (Cavusgil and Cavusgil, 2012).. In context of Baker' s
delight they aimed to expand in market of Sri Lanka with the bakery products by enlarge
business opportunities in positive manner.
Product:
Product refers to the good or service that offer by the organisation to their consumers that
ideally should be build as per the consumers needs and demands in proper manner. In context of
Baker's delight the main product range of that brand are fresh baked goods. In their other
products includes the savoury, sweet, pastry, grain, artisan, white bread and fruits that helps to
satisfy the consumers needs and wants at broad level (Berthon, Pitt, Plangger and Shapiro,
2012). The key idea of expansion in Sri Lanka is based on the product range of fresh baked
goods in which the company is relays on daily production as the Barker Delight is concern over
launching new items that are fresh and will be distributed at regular basis.
Price:
Price is the total value spent by the customer to the seller against the good and
services they buy from the market. It is determined through adding the cost and expected
profit by the entrepreneur. They fixed prices that are affordable for families but on other hand
the prices are not at their lowest level. In expansion of business in Sri Lanka, the penetration
pricing tool will be effective as with the help of this strategy Barker Delight has keep low prices
at initial level and than increase the price after reaching at the higher position within market.
This strategy will support the firm in attainment of higher growth and also assist in attaining
competitive position within new market area. With that product become more lush and exclusive
in front of consumers by targeting products demographically basis to remain always competitive
in marketplace.
Place:
In context of Baker's delight has establish their channel of distribution channels for the
wholesale suppliers by giving base material that are used in the production process (Kreutzer,
2013). . Their stores of bakery are very much attractive and enchant their consumer base in
positive manner by giving proper knowledge and information regarding the products and

services to remain always relevant into marketplace. Sri Lanka is a developing nation which
mainly covers urban areas and the plan of Barker Delight to business expansion is effective in Sri
Lanka as the country has wide population which is beneficial for the firm in attainment of higher
growth and success. The company has planned to expand its operations in the area of Colombo,
thus it is the urban area which has wide population around 5,648,000 of Sri Lanka. This
particular area is more favourable for opening the bakery business as here demand for the offered
products by bakers pride will be more.
Promotion:
Promotion includes the advertising, public relations and promotional strategies to reach at
large no. of consumers to remain always competitive in marketplace. In context of Baker's
delight, the business has planned to expand its operation in new area and in this promotion is
required to gaining attention of people towards the firm or its offerings. In this particular
expansion the company is applying social media marketing tools to promote their facilities
within global market. With the help of television, radio and internet to target a particular base in
positive manner to build the brand name of the respective organisation to making the attractive
business purchase for a successful entrepreneur (Casswell, (2012) On other hand the community
and stores itself plays very major role of self advertising to gain the reputation by attending and
helping the charity organisation to reach at large no. of consumer base by contributing in CSR
activities that helps in create trust in front of consumers to remain always competitive in
marketplace. In that regards to promote and to reach at large no. of consumer base they use
various sources and tools to enlarge business opportunities. In context of Baker's Delight they
aimed to expand in market of Asia in Sri Lanka for that they primarily use the sales promotion to
draw the attention of consumers and then use advertising and promotions to enlarge business
opportunities in positive manner.
It can be said that marketing mix is one of most important tool to evaluate important
aspects in taking major decisions regarding while introducing or bring new features in the
existing product so that desirable objectives should be achieved in proper manner.
3.3 Competitor Analysis:
Competitors analysis refers to the evaluation the major strategies to determine the
strength and weaknesses related to the product and services of a specific organisation. The major
competitors of Baker's Delight that are Woolworths, coles, Brumby's and Banjo's that operates in

majorly all parts of the world by acknowledging the taste and preferences of consumers. The
fierce is the biggest competitor of Baker's Delight which majorly focus over satisfying the needs
and wants of consumers by offering product at lower prices. In addition to this it also work on
the all aspects of service practices in order to improve the shopping experiences of customers.
The competitive strength of Coles that is another competitor of Baker's delight which is they
have multitasking work force that is one of most valuable asset of them. By that factor they can
deliver one of best value to their consumers by accessing their needs and wants of consumers in
positive manner ( Lipsman and et.al, 2012). Another player from which the Baker's delight get
higher competition is 'The Cake Factory' which is one of the finest baker that capture higher
market share and customer base that can be a risk factor for the company. The positive factor
about The cake factory which provide it a competitive advantage in market place is that it has
majority of staff who are working from the beginning of this firm, hence the quality will remains
higher and equal in its product (The Cake Factory, 2019). Despite of this, it bake cake from
scratch using wholesome ingredients using loom recipes where the quality of food at baking is a
key. These are the basic factors which supported them in achieving the competitive edge at
marketplace. Hence, this competitors strengths must be consider by the Baker's delight before
entering into market so that proper strategies can be formulated for achieving sustainability and
market success.
3.4 Competitor Advantage of your Product (perhaps – the USP)
Competitors advantage is one of most important aspect for a business to remain always
competitive by giving one of best products and services as per consumer's choice and
preferences. The major strength of the Baker's delight is, they are unique in term of offering their
products and services within whole marketplace along with operating it in market of New
Zealand and Canada. This support them in occupying the largest market and profitability ratio to
get optimal outputs in positive manner. They have the unique method to bake and expertise in
that particular field that helps to be differ from their fierce competitors (Lasserre, 2017). The
Baker's Delight uses virtual bakers to showcase their core products which replicates the bakery
environment of sales staff visual to stay competitive in business world. The Baker's delight is
currently working over a strategy that help in enhancing the USP value of its products in which it
arrange a campaign every month where they promote a different type of item or a bread in their
stores. In addition to this it also offer free reward cards where with every purchase people spend