Market Expansion Strategies: Marshfield Bakery's Durham Expansion Plan

This report provides a comprehensive analysis of market expansion strategies for Marshfield Bakery, focusing on its potential growth beyond Durham. The report begins with an introduction to market expansion as a key business strategy and identifies the organization's area of operation. A literature review explores existing research on market expansion, emphasizing the importance of analyzing the business environment. The situational analysis includes a TOWS matrix to assess Marshfield Bakery's strengths, weaknesses, opportunities, and threats. External market analysis utilizes PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors influencing the bakery's expansion. Porter's Five Forces are then applied to assess the competitive landscape. Finally, the report proposes growth strategies for Marshfield Bakery, based on the preceding analyses, and concludes with references to the cited sources. The report aims to assist Marshfield Bakery in making informed decisions to achieve a competitive advantage.

Management Report

Table of Contents
Title: Market expansion strategies out of Durham and other geographical regions by Marshfield
bakery for future development of business......................................................................................3
INTRODUCTION...........................................................................................................................3
ORGANISATION AREA INDETIFICATION..............................................................................3
LITERATURE REVIEW................................................................................................................4
Situational analysis.................................................................................................................4
External market analysis.........................................................................................................6
PORTER'S FIVE FORCES.............................................................................................................1
4Ps OF MARSHFIELD BAKERY..................................................................................................2
Risk analysis...........................................................................................................................3
GROWTH STRATEGY PROPOSAL.............................................................................................4
REFERENCES ...............................................................................................................................7

Title: Market expansion strategies out of Durham and other geographical
regions by Marshfield bakery for future development of business.
INTRODUCTION
Market expansion is a basic strategy that can assist a business for their future expansion
of operational activities in new markets. It leads to generation of huge opportunities to attain
high level of growth. It is a type of strategy is used by organizations to enter a new market place
to capture a larger market share (Sibiya and Kele, 2019). Market expansion is a business growth
strategy that has to be adopted in order to expand to a new market share. For achievement of
higher competitive advantage organisations have to make investment in analysis of the potential
market so that there can be targets that are to be set to enhance the present profitability level.
Apart from this there are different techniques and tools that have to be consider in order to make
a detailed analysis of the overall business expansion strategy. There are different types of tools &
techniques that will be used by the organisation to make a detailed analysis of the internal & the
external environment where the business is willing to expand their present operations. Further
the overall growth strategy proposal is present in this report that can assist in improvement of the
chances to attain higher competitive advantage.
ORGANISATION AREA INDETIFICATION
Present report is based on the way market can be expanded for Marshfield bakery. It was
started in the year 1984 by Paul & Lynee white as a famous in house kitchen brand and a small
village in Cotswold way that areas dealing in products to influence the main target market that
was of couples. It soon expanded with a interest in shortbreads, loaf cakes and biscuits according
to the upside of the location (Serrão, 2017). Its third site was expanded in the year 2008 by HRH
cannula Duchess of Cornwall and is continuing to thrive in the country side environment. There
has been a workforce of 50 employees that has been further increased but focus has been on
retaining of family values (Oh, Arnett and An, , 2016). The main objective of this brand has
been to easily attract new customer base by taking their venture to other different areas so that
they are able to maximize their overall revenue. For the purpose of consideration of organisation
growth there is a need to focus on capturing larger market shares to sustain in the fast changing
environment.

LITERATURE REVIEW
According to views of (Anh Tu, Sarker and Rasoulinezhad, 2020) in the present
situation most of the small business are considering future plans to grow and further expand the
business in different market areas so that there can be enhancement of profitability and sales. For
this the business have to make a in depth analysis of the future business environment where the
organisation will be able to focus on high success and growth. As with the highly dynamic
environment there is need to make a market analysis as the challenges can affect the overall
growth Strategy of the business. So there are several tools & techniques that are discussed in the
present context to make a analysis of all the scenario that are to be considered to expand the
present operations. It includes external market analysis, situationally analysis, risks analysis and
the future growth strategy. All such techniques are highly effective in making a detailed
evaluation of the the areas where business can be expanded. It will lead towards development of
a competitive advantage for Marshfield bakery as compared to other existing brands that are part
of similar industry.
Situational analysis
Situational analysis is a basic set of approaches that can be adopted to make a evaluation
of external and internal factors, it will enable the business to use the approaches of market
research so that there can be determination of future expected growth, identification of new
target base and assessment of competitors, situational analysis is going to assist in examining the
overall context of the strategy that has to be implemented to examine the context in which
business strategy will be used (ROH, YI and CHO, 2020). Some of the tools that will be used
by Marshfield bakery to achieve higher growth and success.
TOWS matrix:
For the purpose of understand the position of Marshfield bakery there has to be TOWS
analysis conducted for the purpose of evaluating various opportunities and present market
position. TOWS is determined as a framework that is different from SWOT analysis. These two
models are different from each order as SWOT is done and further based on it TOWS analysis is
completed. In present context to make a analysis TOWS matrix of Marshfield bakery has been
done as mentioned below:

Strength Weakness
Marshfield bakery is a
award winning business
that was established in the
year 1984.
Marshfield bakery is
having a wide range of
products that include
fifteen different flavours
and large variety of
biscuits and cakes.
Marshfield bakery is
dealing in handmade
cakes, biscuits, seasonal
products and handmade
snacks that is having a
limited markets share.
Opportunities Strength opportunities Weakness opportunities
There is a opportunity to
expand the market share as
with growing preference of
food with Mexican and thai
in restaurants is resulting in
higher demand for bakery
products in Europe.
There can be establishment
of joint warehouses in
some key locations that is a
critical success factor for
Marshfield bakery.
The award winning image
of Marshfield bakery can
be used for enhancing their
presence across key
locations.
Use of joint warehouses
can lead to enhancing the
present range of products
in Marshfield bakery.
Threats Strength threats Weakness threats
Present situation of
COVID 19 virus has
resulted into a negative
mind set of people across
The fifteen variety of
different products and the
key image of focussing on
home based product can
Limited market share can
be converted into a
opportunity by just having
higher focus on the limited

some locations. There is
changing shift of people
from eating out to having
preferences for home made
food.
lead to minimization of the
negative impact of threat of
COVID-19 situation.
market share of Marshfield
bakery.
External market analysis
External market analysis is regarded as a aspects to examine the environment of the
industry. There is need to considered as a objective assessment of the fast Changing environment
where business is operating (Wang, , 2017). If there is any type of change in macro environment
that is uncontrollable and dynamic at the same time. Marshfield bakery is dealing in bakery
products and now they are planning to expand in some new areas of UK to capture a larger
market share as compared to other competitor bakeries.
PESTLE analysis
It is a framework that has to be considered as tool to monitor the factors that are part of
macro environment. It is a tool that will be used by a organisation to start their functioning and
enter a new market share. The PESTLE analysis of Marshfield bakery is mentioned below:
Political: It is one of the most crucial factors that have to be consider at the time of
business expansion where the overall rules & regulations have to be followed according to the
operations of business. In UK there is a strong democratic set up that has to be considerer by
Marshfield bakery and the most easy target areas can be new-burn Durham, Jarrow Durham
where the political scenario is just similar to present markets hare of Marshfield bakery and now
is going to assist them in their future formation of expansion strategies (Wellner and Lakotta,
2020).
Economical: The estimated GDP are has been 2.777 trillion dollars in the year 2019 that
has lead to UK economy at the 6th positions. The pare capital income in year 2019 has been
41030 UK dollars that is worlds 20th highest per capital income and is leading to a future growth
perspective for Marshfield bakery in coming time period. But the risk factors can be the wide
spread of COVID pandemic that has affected different market of the world and is leading to a
risky situation of higher uncertainty for small and medium business.

Social: The social factors include the changing nature of population, UK has been
world's biggest consumer markets. Many different industries have been able to achieve a higher
share because if higher personal disposable income of customers. The only factor that has
affected the preferences of people in present situation has been the COVID impact as now people
are not willing to spend more
Technological: UK is a country that has able to achievement higher position across
world as they are having large number of leading research intuitions (Baxter, 2019). The new
invention & developments are continuously making contribution towards the development of
economy. The new food applications can be considered as a opportunity to expansion by
Marshfield bakery, further the digital media sources can be attractive sources of promotion of
brand as it is cost effective and at same time can possess a long term influence over the new
target market of customers.
Legal: There are several legal requirement that have to be properly adhered by the
management of Marshfield bakery it includes the employment act 1996, minimum ages
requirement, holiday pay, paternity leaves, for their workforce, apart from the equality act 2010
and all the legal provisions related to specific foods and safety standards are to be complied to
avoid nay type of future penalties or legal litigations in the new target market (Lewis, 2017).
Environmental: There are some of the external environmental issues that have to be
adhered to deal with the prevailing threats, such as environmental issues related to use if plastic
or the pollution, recycling of generated waste and the eco friendly products are some of issues
that have to be focussed by Marshfield bakery. Apart from this with the COVID virus the
hygiene conditions have increased and now organisations have to comply with some specific set
of rules in order to deal with the widespread negative impact of this pandemic.
According to above discussed pestle analysis there are different threats that are part of the
macro environment that have to be considered on order to minimize the negative impact and
maximize the available opportunities that are part of this fats changing macro environment.

PORTER'S FIVE FORCES
The porter five forces are defined as the set of action which is help to understanding the
competitiveness of the organisation environment and help in identification of new strategies to
get the potential profit. This model is useful for firm in which the forces are going in
organisation which may be affect the profitability of firm. And by this, firm adjust their theme
and aim by making strategies (Devila and Ma’mun, 2017). Also is is useful in analysis of
industry attractiveness and profit margins which work as the high rate of profitability. Porter
forces keep the eyes in the market in aspect with competitors, new entry and other dimension
which may affect business profit.
In this context, Marshfield bakery, a bakery house which is maximum number of
customer, they have many quality of product, they deal with cookies, cake and lots of thing. The
strength of this organisation is they prepare the product by handmade method. The firm focus on
the health consideration, which create the bad impact in UK and other countries, the major
problem is generally faced by many is obesity and they trend to diet plans.
Competition rivalry: every business have their own level of competition (Dyck, and Greidanus,
2017). The organisation must keep the eye on opposition firm to know about their strength and
weakness. It help in making new strategies in market. Total analysis of competitors help to drive
in new plan which is possible when the firm know about the weakness of competitor, after that
new strategies have chance of effectiveness in market. In the context with selected organisation,
the rivalry arises when the competitor enter in market with same strategies or with new concept
by many promotional action which attract the customer, further it lead to minimise the profit.
Supplier power: supplier power is low in the case of selected organisation. Where goods and
raw material supplier are more in case of bakery industry. They prepare their product by self
made and by chief (Gikonyo, 2020). So the availability of raw material for the product is more in
the context with this industry.
Buyers power: the buyer power is also low in this case, the selected firm deal with natural and
handmade cookies and their strength is their preparation patten which is reliable good in that
particular regions. The quality of product is good and generally it get maximum review so buyer
must to came and accept the pricing decision of organisation.
Threat of new substitution: Marshfield bakery have many product which is manufactur by
many of bakery. Product are generally driven biscuit, coffee and others many more. Their are
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local and other firm which is dealing with this product. So the threat of substitution chance are
more in the case of product.
Threat of new entry: the new entrant chance are low in the case of bakery industry, because of
the higher maintenance cost and due the regular service policy. The bakery is all depend of
product and their taste. The customer visited again due to taste and the product goodness. So the
threat of new entry is low in this scenario.
4Ps OF MARSHFIELD BAKERY
The marketing mix is defined as the model of businesses which include product, place,
price, and promotion. The total objective of this is that it is marketing tool that the enterprise
uses to pursue its marketing goal in the target market. Moreover, the marketing mix refers to the
broad concept of marketing decision like product, price, place and promotion. The marketing
mix help to develop strength and ignore the weakness (Hamouda, 2016). The strengthen the
competitiveness and adaptability of organisation. Which also explain about the enterprise work
with closely together.
Product: In the context with Marshfield bakery, the organisation is famous for their
product which is generally handmade such as cookies, biscuits, cake, and many more. The
signature product of firm is cookies and biscuits. The hand made biscuit are more profitable for
the organisation which have specific an unique in taste. These product are go widely by their
taste. Customer taste are filled with the product in the reference of product. The bakery have
many of significant product and lots of customer. For any firm the product is base, and in the
bakery the taste of that particular product is essential to gather the customer.
Price: the pricing decision is set sometimes, on the basis of competition and sometime
the service based charge are applied and that turns into the pricing decision-making techniques.
Pricing decision are taking like that which gather all the cost of product while in manufacturing
to delivery. organisation fix their sales profit in every product and service which is take from the
customer.
Promotion: the challenging task of any organisation is attract the customer for their
product, for that the organisation go through the techniques of promotion. Which is set of
activities in which different techniques are followed to advertise the product direct and indirect
marketing promotional tools. In the context with selected firm, bakery must do their promotion
by advertising it will be online and offline which is helpful in promotion of bakery. The
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promotion of bakery include the images of product and service related brief which help to give
appropriate information to customer about how the organisation make differ product than other
and what type service they try to give to customer (Mahadevan and et. al., 2018). So, this tools
help in the organisation to increase the sale as well as brand awareness in customer and others.
Place: Physical shop of any organisation help the customer to identifying them. The
customer go with the physical shop to take experience about the food and product. While in the
context with Marshfield bakery, the bakery have number of firm in local and they have higher
revenue and maximum of the product are generally available in the store, so customer just visits
the shop for their product.
Ansoff Matrix:
It is also known as product matrix and market expansion grid that is used by an
organisation in order to plan as well as analyse strategies for future expansion and growth as
well. In addition to this, it is significant for an organisation to make use of effective strategy in
order to attain growth in an appropriate manner. This matrix involves four main strategies which
will used by companies to grow & analyse the risk attached with each of the strategy. The four
strategies is defined below in relation to Marshfield bakery:
Market penetration: Herein, an organisation uses its existing product within the existing
marketplace. In addition to this, the company is aiming to enhance market share with the help of
market penetration strategies. This strategy can be implement by various ways that is decline
price to attract large number of customer, acquiring a rival within the same marketplace,
enhancing promotion as well as distribution efforts.
Product development: In this strategy, the organisation create a new product in order to
approach the existing marketplace. In addition to this, it consist of research & development as
well as enhancement of product range of organisation. It is determined that such form of strategy
is applied when company have knowledge about current market and has the ability to produce
something innovative that fulfil customer requirements prevailing at existing marketplace.
Market development: Herein, an organisation enters inti new market with the same
offering or existing product as well. It is analysed that such strategy is more successful when an
organisation own proprietary technology which can easily leverage into the new market and the
potential customer prevailing at new marketplace are profitable. One of the effective approach of
market development is entering into a foreign market or catering to various customer segment.
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Diversification: In this strategy, a business entity develop new offerings and then enter
into new marketplace. It involves high risk and both product as well as market development is
needed. It is analysed that such strategy may provide high potential for raising revenues and
strengthen market performance of company.
From the above discussion, it is stated that Market development strategy is beneficial and
effective for Marshfield bakery as it help in entering into new market and approaching new
customer by the existing product. In addition to this, it help company to make use of its existing
resources in an optimal manner and enhance its performance. Moreover, such strategy assist in
enhancing customer base level that impact positively on the profitability and revenue level of
Marshfield bakery. All this will lead to attainment of higher growth & development and
strengthen of marker performance in an appropriate as well as effective manner.
Risk analysis
Risk assessment is a basic technique that can allow a organisation to further manage all
the possible challenges that can hinder the business activities, so there is a need to conduct a risk
analysis so that there can be further assessment of the future profitbailit6y of the business. There
are different types of risks factors that can be faced by Marshfield bakery for their future
expansion of business activities in new markets. By analysis of the different risks factors there
can be elimination of the negative impact of these risks can be minimized. Some of the risks that
have to be considered by Marshfield bakery are mentioned below: Global environment risk: The changing global environment of business leads to creation
of both threats and opportunities for business organisations. As there is requirement to
focus on the overall changes are part of the environment and the requirement of future
uncertainties that are experience at the global level (Christodoulou and Cullinane, 2019).
A organisation can focus on its improvement by managing of all such uncertainties. Such
as the global pandemic has resulted into a situation where the preferences and the buying
behaviour of people gas complete changed. Financial risk: One of the major risks for a business organisation when they are willing
to expand to a new area is related to the operational cash flow that is a critical aspects to
be considered to obtain new finance. Marshfield bakery has to consider diverse funding
channels where they have to make a detailed analysis of the different funding options
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according to the size of this entity and the way diverse sources can lead to minimisation
of associated risks & costs. The most suitable sources in the present situation is to use
bank loans or the financial institutions as a source to generate funds. It will lead to
optimisation of their capital strategy.
 Employment risk: employing staff ta the new lactation is a difficult task and the
management of teams in such area is also is easy (Perera, 2017). So marsh filed bakery
has to focus on use of some of the models that are related to intercultural differences that
can lead to overcoming of all the difficulties by the newly hired staff member's so that
they are able to adopt to the internal culture of marsh-filed bakery.
By making a detailed evaluation of all the above factors that has to be considered by
Marshfield bakery while the business organisation is willing to expand their future functions.
GROWTH STRATEGY PROPOSAL
Growth strategy is a action plan that can allow a business organisation to achieve higher
rate of success. It is important cation plan that will assist the business organisation to capture a
higher market share and the growth of a business organisation. It is necessary that there has to be
timely analysis of all the trends and situation with a objective to develop a proposal of the way
strategy can be expanded and the future expansion of commercial activities in new market
places. There are may opportunities that are part of the external market and have to be
considered or utilised to get a competitive advantage as compared to other respective competitors
in the market.
In the present situation there is adoption of porters generic strategy in order to make a
detailed evaluation of the future growth strategy that can be operated by Marshfield bakery to
launch their expansion programs in some new market segments (Chaouk, Pagliari and Moxon, ,
2020). There are some of the specific strategies that are part of the porters generic model and can
be utilised according to the suitability of a business organisation. Some of such strategies as part
of external environment analysis that can be used by Marsh-filed bakery is mentioned below:
The Differentiation strategy: It is necessary that each business organisation that is
willing to launch themselves in a complete new area must posses some differentiation advantage
so that they are able to attract customers based on this differentiation. In case of marsh-filed
bakery the main differentiation advantage for this brand can be of the wide range of high quality
products that are manufactured.
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The Cost leadership strategy: It is a strategy where there can be acquisition of a new
share of market by focussing on the situation of low cost as a tool. This strategy is basically a
expansion of the price penetration strategy in which a business organisation can achieve higher
growth rate by offering higher quality products or some set standard of quality according to t he
expectation of the customers but the price range is lower which leads to attainment of wider
market share (рюков, , 2020).
The focus strategy: It is a strategy that is based on developing a main focus in ether the
differentiation feature of a product or focus on the pricing strategy of a business. It is going to
further assist marsh-filed bakery in development of insights for their overall workforce about the
major emphasis in the new target market.
From above made discussion of the associated strategies of market growth the moist
suitable strategy for marsh-filed bakery being a small enterprise is that to achieve a higher
market share by focussing on manufacturing of handmade cakes, snack bars, seasonal products
that are of higher quality. The new launches have to be based on a objective to capitalist th new
market shares (Satalkina and Shpak, 2018). They are already distributing their product across
different parts of UK now there can be more focus on development of a long term project to
achieve a higher growth rate in the new market regions.
Partnerships and alliances is also a strategy that can be used by Marshfield baker6y for the
purpose of expansion of their market share in which there can be alliances formed with the existing
bakeries so that there is wider markets hare that can be obtained by use of accepted brand name of any
other established organisation of the same industry. According to views of chris smith who is the
director of Marshfield bakery there is requirement of support to look at different aspects to
prioritise the ideas and achieve higher anticipated growth rate.
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CONCLUSION
From the above made analysis it can be summative that for the purpose of
implementation of effective growth there is need to expand the market share by use of suitable
strategy. The strategies are determined according to specific market needs. There is need of some
specific strategies that can further assist in meeting of the market needs and overall demands of
the markets. Organisations have to make a detailed analysis of the target market in order to
establish themselves in such markets. There are many different tools and frameworks that have
been used in order to make a evaluation of the scenario of both external and internal environment
along with a critical situational analysis. The main objective is to expand to achieve a higher
market share by use of strategies such as using of market entry modes in order to have a proper
legal framework that has been used to establish successfully in the new markets. According to
the internal strength of a business organisation there has to be evaluation of the risks associated
with proper evaluation of risk analysis that includes the supplier risks, market risks, economic
risks that are to be considered to ensure optimum utilisation of present resources with the
organisation. According to such growth strategies there is need to select a particular specific
strategy that will lead to selection of the best possible strategy of the business for this porters
generic model has to be considered as effective strategy.
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