Le-cakery Business Plan Report: Competitive and Market Analysis

This business plan report details the strategy for Le-cakery, a new cake bakery in the UK. The report begins with an overview of the business idea, focusing on personalized, sugar-free, and eggless cakes to attract a wide customer base. It then conducts an external analysis using the PEST framework, considering political, economic, social, and technological factors in the UK market. A competitive analysis compares Le-cakery to existing bakeries like Forge Bakehouse and The Almond Thief, highlighting its unique selling propositions, such as product variety and pricing. The plan also includes a detailed segmentation, targeting, and positioning (STP) analysis, identifying target demographics, geographic locations, and positioning strategies to maximize market reach and customer acquisition. The report concludes by summarizing key findings and recommendations for Le-cakery's successful launch and operation.

Business plan report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview of new business idea...................................................................................................1
External analysis.........................................................................................................................1
Competitive analysis...................................................................................................................2
Segmentation, Targeting And Positioning..................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business plan is that document which describe the nature of a business, sales and
marketing strategy, financial background. Further, the current business plan is based upon new
business idea i.e. cake. The name of a business is Le-cakery where new variety of cakes are
provided to the customers. Thus, the business plan will describe an proposed overview of new
business ide, evaluation of the external environment i.e. PEST. Further the discussion of
competition is done through competitive analysis and then describe the target market using STP.
Overview of new business idea
Le-cakery wants to introduce its new business in cake in UK that will help to attract the
range of new customers. Also, the main idea of the bakery is to provide best quality of the cake
to the people so that they will easily attract towards a business. Further, the quoted bakery
wants to start a business of personalized cake, sugar free cake, eggless cake. This uniqueness
helps to catch the eye of range of customers towards it. Further, by offering new variety of cake
will assist to provide a new opportunity to the people so that they will easily attract towards it.
Moreover, the owner of the company also hire the innovative workers so that they will easily
meet the demand of customers (Garcia and et.al., 2019). Also, the new business idea has its
unique selling price such that it will not offer the cake in high price at initial stage so that they
will also attract their customer easily. Also, bakery will also start using new and advance tool of
marketing when it get completed such that it post on social media such that Facebook, Twitter in
order to attract range of customers towards it. Thus, this unique idea will help to enhance the
overall productivity and profitability.
External analysis
In order to determine the external analysis, it is recommended to use PEST so that it
will assist to examine the macro factor which may also affect the overall business in negative
manner. Further, this is as mention below:
Political factor: This factor deals with the government rules and political stability of the
country. As UK is one of the political stable country and as a result, this is further helps to
support the business. Therefore, the company should make sure that it comply with all the laws
and legislation (Walker, 2018). On the other side, it company increases the tax, then at that time,
company have to increase the rates of the offered products, otherwise it will affect the overall
business in opposite manner. Further, company should also make sure that they us healthy
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ingredients so that it will easily attract the range of customers towards it. At this situation, Le-
cakery may only face issue with regards to rising price of the company products and must
comply with authority regulations.
Economic factor: This factor deals with the economic condition of the country such that
inflation rates, exchange rates etc. As the country has stable economy which means Le- cakery
may easily establish and introduce its products. Further, when there is any fluctuation in the
country’s economic condition then company have to take immediate action (Amante, Fante and
Pires, 2019). Such that when there is an inflation rate, then company may offered the same
product to their customers and also offer them some discount products that will assist to attract
range of new customers towards them. Also, Le- cakery have different and unique products
which means it may easily attract the range of customers that directly helps to improve the
overall performance of the company in positive manner.
Social Factor: It means the social beliefs of the people. Such that now a days, all the
people are health conscious and that is why, they all prefer to eat healthy and less calories food.
As people of UK are quite obese and that is why, they prefer to have a healthy diet (Kovalchuk
and Verhun, 2020). Therefore, in order to introduce new bakery in the country, it is quite
essential for a firm to use sugar free cake, eggless cake so that it will easily attract range of
customers. Also, this will help to cope up with the problem in better manner.
Technological factor: It refers to the advance techniques which are used in the company
to grab attention of many customers. Therefore, to attract customers, Le- cakery must introduce
its website where it can take online orders from customers and also post related to discount so
that it will help to let people know about new opening. Further, they may also use new cooking
products which will save time and increase productivity as well (Wardhana and Hariwibowo,
2020).
Competitive analysis
Particulars Le-Cakery Forge Bakehouse The Almond Thief
Products It offers personalised cake,
sugar free cake and eggless
cake as per the demand of
customers. As people are
quite conscious for their
The bakery provide 20
different types of bread
products that will helps
to attract range of
customers. It also offer
The bakery offer slow
fermented sourdough
at home and also offer
range of pastries to
their customers with
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healthy diets and that is
why, Le- cakery start
offering this products
food along with a large
range of sourdough,
long fermented bread
and pastries.
unique presentations.
Price It uses penetration pricing
strategy in which it offered
the low price product to
their customers in order to
enter into new market
The bakery uses
skimming price strategy
that is also known as
competitive pricing
strategy that helps to
gain revenue advantage.
The bakery uses
economy pricing
strategy so that it
will easily attract
range of customers.
Under this price,
company will keep
their price sensitive to
force customer to
purchase from this
bakery (Oluwaseyi,
Elizabeth and
Olaoluwa, 2020).
Promotion Company uses social media
and modern form of
promotional strategy that
will assist to attract range
of customers towards it
(Delicato and et.al., 2020).
Also, company will keep
posting new offer so that
they will let know customer
about new product
The firm uses both
traditional and modern
form of promotional
methods so that it will
easily attract range of
customer. Such that
newspaper, social media
like Facebook, Twitter
etc.
The company did not
invest huge money for
promotion and that is
why, it only display
new offers outside its
shop and during
season time, it offer
buy one get one free
offers as well.
USP The company deliver the
products within 2 hours and
as a result, company will
attract customers.
Long sourdough is the
speciality and it provide
20 flavoured bread
products to their
The bakery mostly
use short sourdough
that helps to attract
range of customers. s
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customers, which none
other company offer
(Khillari, 2020).
Therefore, in order to gain high competitive advantage, Le- cakery offer the personalized
cake items with range of designs and also deliver the product at short range. Further, company
also uses healthy ingredients for cake making and that is why, it is able to attract the customer
easily because none of the other company uses the same. Also, its high quality with low price is
also able to attract range of customers towards it.
Segmentation, Targeting And Positioning
SEGMENTATION: Market segmentation is considered to one of the effective process which
helps in dividing market associated with potential customers which mainly comprise of segments
and groups. The segments are created which in turn off composed of customers (Schlegelmilch,
2016). They intend respond to similar marketing strategies who in turn shares similar interest,
locations, needs, traits. Le Cakery tends to target various range of demographic. They tend to
target people of each age group which in turn helps in meeting the needs and requirements of the
customers. Younger customers tend to order pastries, cookies, cupcakes from the bakery. On the
other hand family members order bread and rolls and various other fast foods. Cakes are also
ordered by adults at various special locations. Market segmentation is an effective tool which has
the company in clearly determining the customers within the specific location. Geographic
segmentation includes climate, population density, locality and region. Le cakery tends to locate
their business where they can target large number of customers from the specific region or
locality. Le cakery also focuses on putting up the online order system which in turn is considered
to be very useful in targeting various range of customers in a systematic and efficient manner
(Andaleeb, 2016). They also tend to focus on providing custom cake to various location of the
business. Le cakery also tends to offer gluten free cakes and pastries which in turn helps in
mitigating need of the customers who maintain a specific level of lifestyle.
TARGETING: Targeting in turn is considered to be an effective advertising mechanism
which is useful in targeting various customers from across the globe. It is an effective strategy in
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targeting customers with the help of social media platforms, email marketing strategies
(Camilleri, 2018). This helps increase in the customer base for the company which eventually
leads to higher profitability and growth. Targeting those customers who are attracted towards
bakery products helps in increasing the sales of the company is targeting can be done with the
use of social media platforms such as Instagram, YouTube, LinkedIn, Facebook, Pinterest, et
cetera. These social media platforms helps in attracting large number of customers. Creating a
blog and writing articles related with the products offered by the company is also one of the
effective means of marketing and targeting customers. Le cakery in turn identify and target is
potential customer with the help of this marketing strategy (Schlegelmilch, 2016). This in turn
leads to higher profitability and growth for the business. Targeting is one of the most attractive
procedure which in turn is considered to be very useful in attractive right customers by using
appropriate marketing tools and techniques. Attracting people by offering them innovative range
of bakery products in turn helps in attracting more and more customers towards bakery. Le
Cakery focuses on offering various range of products to different age groups for attaining higher
customer base.
POSITIONING: Positioning in turn is considered to be one of the effective approach
which is very useful in selecting the most appropriate location to perform various functions in
order to excel in the particular area. An appropriate positioning strategy is considered to be
effective which is useful in strengthening the position of the Le Cakery within organization. Le
Cakery will position their business in high street of United Kingdom which in turn helps in
attracting large number of customers from the specific region. This is an effective measure which
is very useful in positioning the business in an efficient manner and gain higher customer base.
The business will be positioned at a place which is easily accessible by the customers (Andaleeb,
2016). Le cakery will also provide online services where they can order bakery products from the
personal website of the company. This helps in making goods available at the doorstep of the
customers. This in turn eventually adds value proposition and leads to higher degree of sales for
the Le Cakery. This company will also position the business at the mall in order to attract higher
end customers which in turn helps in increasing the sales on the daily basis. Positioning the
business at the right place adds value to carry out the operations of the business.
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The company must demonstrate key features, range of products and services and quality which
they in turn offer to the customers. This way it leads to higher sustainable growth for the Le
Cakery.
CONCLUSION
By summing up above it has been concluded that by analysing the macro environment factor, Le-
cakery will easily introduce its business. Further, trough competitive analysis, company also
understand the strategy that will helps to stay it ahead in the competitive market. Further, the
USP of Le- cakery also shows that company is able to attract range of customer because it offer
unique products and less delivery time as compared to its competitor. Lastly, report concluded its
target market is youngsters and high and middle class people who can afford the product.
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REFERENCES
Books and Journals
Amante, P. R., Fante, C. A. and Pires, R. L., 2019. Use of Transglutaminase in Bakery
Products. Journal of Culinary Science & Technology, pp.1-11.
Andaleeb, S.S., 2016. Market segmentation, targeting, and positioning. Strategic Marketing
Management in Asia, pp.179-207.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Delicato, C. and et.al., 2020. Consumers’ perception of bakery products with insect fat as partial
butter replacement. Food Quality and Preference. 79. p.103755.
Garcia, M. V. and et.al., 2019. Incidence of spoilage fungi in the air of bakeries with different
hygienic status. International journal of food microbiology. 290. pp.254-261.
Khillari, S., 2020. Food Colour Market Analysis| Recent Industry Trends Report, 2026.
Kovalchuk, T. and Verhun, A., 2020. Improvement Of The Method Of Analysis Of Asset
Management Efficiency. Baltic Journal of Economic Studies. 5(5). pp.61-66.
Oluwaseyi, K. O., Elizabeth, A. and Olaoluwa, O. E., 2020. Profit Maximization in a Product
Mix Bakery Using Linear Programming Technique. Journal of Investment and
Management. 5(1). pp.27-30.
Schlegelmilch, B.B., 2016. Segmenting targeting and positioning in global markets. In Global
marketing strategy (pp. 63-82). Springer, Cham.
Walker, J., 2018. Development and marketing of a bakery (Doctoral dissertation, California State
University, Northridge).
Wardhana, D. Y. and Hariwibowo, I. N., 2020. Sustainability Analysis of Family Based Culinary
Industry in Indonesia. Review of Integrative Business and Economics Research. 9. pp.465-
479.
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