Business Essentials Portfolio: Midtown Bakery's London Market Analysis

This portfolio assignment analyzes Midtown Bakery, a startup specializing in customized cakes and bakery products in London. The analysis begins with an overview of the business, its objectives, and partnership structure. A PESTLE analysis assesses the external environment, considering political, economic, social, technological, legal, and environmental factors. The assignment then focuses on the target market, proposing a launch event strategy to attract customers. It includes projected cash flow and income statements for the first three years, along with marketing objectives, target market identification, and marketing mix strategies. The assignment also touches upon potential marketing strategies and references relevant sources.

Portfolio Tasks: Business Essential:
Introduction
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TABLE OF CONTENTS
TASK 1............................................................................................................................................3
PART A.......................................................................................................................................3
PART B........................................................................................................................................3
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................5
Part A...........................................................................................................................................6
PART B............................................................................................................................................6
TASK 4 ...........................................................................................................................................8
Marketing objectives....................................................................................................................8
Target market ..............................................................................................................................8
Marketing mix..............................................................................................................................8
Marketing strategies for target market.........................................................................................9
TASK 5............................................................................................................................................9
TASK 6..........................................................................................................................................10
REFERENCES .............................................................................................................................12
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TASK 1
PART A
Midtown Bakery is making its presence in the markets with a view to serve larger base of
customers of London. Being a startup Midtown Bakery is finding its way to make people aware
of them in the markets. Midtown Bakery is a startup deals in the customized cakes and bakery
products with providing some amazing goodies on the rent for parties, functions, weddings, etc.
Main purpose of business is to create a large customer base and always meet their needs to the
full satisfaction. The firm is dedicated to provide new range of products and services where there
is presence of requirements. The new ventures wish to make appropriate association with its
customers, suppliers, and employees who can offer value to the business and together can make a
difference. With its unique combination of customized cakes it would facilitate every customers
choice and that eventually will develop a positive attitude towards the brand of the Bakery.
In order to get to potential customers business is planning to commence its operations
through various sources, Midtown Bakery is planning to take orders through its websites which
has been build by a reputed and ranked digital marketing company which is known for his
website building. Also Midtown Bakery is planning to open its outlet or stores in famous streets
of London which is known for its tourists attraction (Meisner, 2014). Due to technological
changes and rapid increase in the growth of digital marketing strategies in order to be successful
Midtown Bakery needs to figure out the techniques which will act for them as a golden egg. This
business idea of Midtown to get into customized cakes business is great because this will give
them an insight to actually know what customers have in their mind when they are coming to
place an order. The key competitors for Midtown Bakery are the ones who are already their at
the streets where they are planning to go to, some of they are: Hummingbird bakery, konditor &
cook, Primrose bakery, Lola's cupcakes, Etc. These other bakeries are near to providing the
quality in the bakery business but by applying innovative techniques and strategies Midtown
Bakery can bring the change.
PART B
Main objective of Midtown Bakery is as follows:
 To serve customer with utmost quality cakes,
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 Provide customers with amazing merchandise which are trending in the world , which
can be a quote, a dialogue or anything which sounds humorous.
 To offer efficient home delivery on orders via apps and websites.
Midtown Bakery is a Partnership business which is managed by its two partners who are Tom
and Dick. It is the best form of ownership because by adopting this Midtown can include as
many partners as they want in future and in addition this will enable them to increase their
finances as well. Further moving forward in 5 years time firm is focusing on offering discounts
on Merchandises and also have a vision of expanding to new places.
TASK 2
In order to assess the external environment of the firm there is greater necessity towards
carrying out PESTLE analysis for the sake of knowing range of factors affecting organizational
operations. Such tool takes into consideration important factors like political, economical, social,
technological as well as legal. Pestle analysis of Jolly's Java has been enumerated in the manner
stated as below: Political: Political factor is attached with the legal laws and regulations that needs to be
complied with by the firm in order to perform the operations within the market. Beside
this, laws relating to employment has to be followed wherein there is necessity for the
business to offer favorable environment to the personnel. The regulations in relation with
service quality has to be complied with for Midtown Bakery. Under this organization has
to maintain suitable quality within the services that are provided to the target market. At
certain point of time political laws can also be considered as barrier and because of such
they needs to be followed in an effective manner (Nunnally, 2014). Economical: The economy is already developed one in case of London. Moreover taking
into account overall economic condition it is highly beneficial for Midtown Bakery to
carry out operations within the market. Because of growth in the GDP rate there is greater
willingness among the customers to spend over the restaurant services. This is fruitful for
the firm within the market. Beside this rate of inflation is lower because of which power
to purchase is higher. In addition to it, as economic scenario of london is strong and
income level of people in the city is high it is beneficial for Midtown Bakery to build its
pricing strategies easily.
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 Social: The social factor is attached with changes in the requirements of the target market
based upon the services which are required to be provided to the customers. Moreover
there is need for Midtown Bakery to develop understanding in relation with target market
in order to provide them with the best service in the town. Customer retention is the key
for small businesses, so it is for Midtown Bakers too. Technological: The market where Midtown Bakers would carry out operations is highly
advanced and is a tourist destination and because of such it is important for the firm to
make utilization of the place. There is no doubt that here cost is involved in making
adoption of new technology but the end result will be favorable for the business by
applying these strategies. Legal: This factor is associated with the rules and regulations that new businesses has to
comply with. In general, Midtown Bakers has to follow its legal restrictions attached with
paying off the duties as well as taxes. Moreover other kind of laws needs to be complied
with like employment generation, etc (Pinson, 2008).
 Environmental: Overall the operations that are being conducted by firm negatively
influence the surroundings and because of this reason regulatory authority has developed
certain guidelines in order to prevent the environment from these practices. Thus
Midtown Bakers needs to make sure that their operations should not impact the
environment in a negative way. Midtown Bakers should use tool of recycling has in order
to protect environment.
Thus there is presence of some key factors which influence business productivity upto a
certain extent and in turn, firm needs to take corrective actions to improve performance of the
operations of businesses.
TASK 3
Customers are the key towards the success of an organization. There is a large customer
base of people who strive for bakery products in London and this need is increasing day by day.
Providing quality and fresh cakes is what customers demand and Midtown Bakers as per its
approach are ready for that demand. Analyzing its target market in the locality is important for
Midtown Bakers as it will help the firm in survival for longer duration.
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Part A
Midtown bakers with its objective of providing quality services through delivery of
customized cakes and merchandises on rent will surely want t make an impact on the mind of its
potential customers on the very first day of its launch. As a manager of Midtown Bakers to
launch its product in the market i will take certain steps to gather more people around the store
on its launching event, here is what a launch event look like in my leadership.
As it is the first official presence of Midtown Bakers in the market so it needs to be big
and attracting for the potential customers as well. In order to get customers attracted towards the
products and services offered by Midtown they have to keep a flat discount on the cakes which
will be 15% and on the first of order of merchandise it should be 10% cashback. This strategy
will encourage more and more people to visit the event. Launch event will be packed with family
friends, colleagues, relatives, etc. Event will be going to take place the store only since people
getting attracted to the offer provided will come to see the place and eventually this will lead to
orders. So it is important to conduct the event at location only. Also a live cake will be prepared
by Midtown's staff to make customers know that proper hygiene level is maintained during the
cake preparation. Talking about the merchandise those will become the center of attraction for
the event. All those activities will make Midtown's Launch event a success in terms of gathering,
lead generation, etc.
PART B
Cash flow
Cash flow statement Pre-Operating year (£) Year 1 (£) Year 2 (£) Year 3 (£)
Opening Balance 130000 163340 236219
Cash Sales 324000 388800 466560
Owner's capital 500000
Bank Loan 200000
Total Cash Inflow 700000 454000 552140 702779
Cash Outflow
Fixed Assets 100000
Market Research 15000
Utilities
(electricity/water/phone) 20000 21000 22050
Legal help and permits 25000
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Printing and Packaging 10000 30000 36000 43200
Promotion and
advertisement 20000 22000 24200 26620
Working Capital 350000
Rent on premises 16200 19440 23328
Interest 15260 11445 7630
Insurance 30000
Web Maintenance Costs 5000 5000 5000 5000
Tax 48600 58320 69984
Salary 123600 131016 138877
Miscellaneous Expenses 15000 10000 9500 9025
Loan Repayment 50000 50000 50000
Total Cash Outflow 570000 290660 315921 345714
Closing Balance 130000 163340 236219 357065
Income statement
Income statement Year 1 (£) Year 2 (£) Year 3 (£)
Revenue
Sales from Products and services 324000 388800 466560
Less: COGS (10%) 32400 38880 46656
Gross Profit 291600 349920 419904
Operating Expenses
Market Research 15000
Utilities (Electricity/water/telephone) 20000 21000 22050
Printing and Packaging 30000 36000 43200
Promotion and advertisement 22000 24200 26620
Working Capital 350000 0 0
Rent on premises 16200 19440 23328
Insurance 30000 0 0
Salary 123600 131016 138877
Web Maintenance Costs 5000 5000 5000
Miscellaneous Expenses 10000 9500 9025
Depreciation 10000 10000 10000
Less: total operating expenses 631800 256156 278100
Operating Profit -340200 93764 141804
Less: Interest 15260 11445 7630
PBT -355460 82319 134174
Less: Tax 48600 58320 69984
Net Profit -404060 23999 64190.04
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TASK 4
Marketing objectives
The manager of Midtown have developed set of objectives that are related with
marketing. This has greater assistance in attracting the target market. The manager of marketing
will lay emphasis of fulfilling the marketing objectives that are as under:
The marketing objectives includes building greater awareness among the customers. This
would be through use of promotional tool that leads to enhancement in the awareness with the
target market. Further the aim is also towards increasing the relationship with the customers.
This can be done by the means of offering customized cakes at right point of time whenever
needed so would assist in building stronger relationship which increases the customer base to a
greater extent (Abrams, 2003). By offering high quality of product the customers can be
provided with products in accordance with their expectations. The marketing objective of the
firm is towards becoming market leader which can be done through creating more awareness so
that greater number of customers are attracted which build sound image of the firm in the
market.
Target market
The target market of the new bakery business would be the customers of London. Young,
middle aged and old age customers will be the target market. In more specific manner young
people who like to innovate and health conscious people are the major part that forms that target
market for the new business. The bakery would possess the ability to cater the requirements of
all the ages.
Marketing mix
The new business would offers online services and also has outlet so that customers can
be offered with the products as per their expectations. Here the product would includes
customize cakes as well as bakery items. Such would be as per the need of the target market.
Along with this the policy of pricing that would be used by the organization will be penetration.
This is because at initial level the firm would keep the prices low in order attract the customers to
a greater extent. Moreover it has been assessed that place for the distribution would be online
and outlet where the customer can avail the services and get advantage from using the products.
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Along with this promotion would be done by the means of local newspaper and magazines which
would create awareness in the market.
Marketing strategies for target market
Under the marketing strategy the organization would pay huge emphasis towards the
promotional marketing strategy. This is significant to create awareness regarding the product that
would sold by Midtown Bakery. Economic pricing as well as concept of customize case would
be the main aspect of such marketing strategy. In relation with the target market it has been
planned towards making adoption of varied promotional mix. This will be comprised of print
media, distribution of pamphlets as well as brochures etc. the firm would also take assistance
from social media sites in order to make communication of uniqueness of the present business.
Promotional strategy would affect the customer towards visiting the bakery as well as make use
of innovative concept related with bakery.
TASK 5
It is considered as the section which includes operational, tactical as well as strategic
business decision which organization is required to take. The decision such operational are
associated with carrying out analysis in relation with the location. Such act as an aid in gaining
knowledge regarding whether the particular location is effective in relation with offering greater
attraction to the customers in relation with the outlet. This has been determined that new venture
at initial level will hire premises on rental basis in London. This is regarded as the perfect
location for the business as it is considered as the centre of the particular country. In addition to
this it is surrounded by the office, corporate, retail shops and other that would offer it greater
advantage. Further it has effectiveness for all the kind of business to gain bakery items and
customized cakes at economical prices. The importance of location is greater and it facilitates in
determining whether the plan has potential towards attracting greater mass or not.
Another type of decision that is needed to be taken is referred to as tactical one. It
involves the decision making with respect to what is required to be produced. This has suitable
role in providing attracting to large base of customers to greater extent. This has significant role
in providing greater attraction to huge base of customers. There is greater importance towards
conducting market research in order to gain insight to the demand of the customers in an
effective manner (Davis, 2011). This possess importance in terms that suitable products and
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services are offered to the target market. In the present business plan it has been assessed that
hygienic and health consciousness aspect are required to be taken into account while developing
the product. Therefore such aspect possess importance in determining the type of product which
the business is desiring to develop.
Strategic business decision have important role as through this execution of the strategy
the firm is able to gain desired goal in minimal time span. For the present business the
organization is required to develop strategy with respect to marketing so that it is able to create
awareness in the target market. In this relation several strategies are taken into account that is
comprised of word of mouth publicity, print media so that awareness can be created among the
customers with respect to type of services that would be offered by new venture. Such decisions
possess effectiveness in enhancing the return of the organization to a significant level.
TASK 6
The distribution system is considered as chronological flow of process, systems as well as
activities that are devised as well as linked in order facilitate as well as monitor the movement of
the good as well as services from the source to the target market. The process that is related with
distribution is regarded as tool for the organization which assist in product movement from
where it is developed to the customer or market or the point where sales would be made. In the
marketing of the product the distribution is conducted by two kind of channels. This includes
direct as well as indirect channel. The Kitchen will be regarded as the site the will provide
bakery items to the customers. The new venture will sale through the technique of direct selling.
Under this the delivery would be made directly to customers will little or no role played by
intermediaries. The Midtown would open outlet at several locations. Further it will provides
customers with the services to order from their homes and offers in order to satisfy their need.
This is suitable in offering greater satisfaction that results in increasing the sales and profitability
of the new venture in an effective manner. The business will possess its own warehouse and
would sale product on directly. The feedback will be taken by the firm from the customers so
that delivery procedure can be enhanced to a greater extent. Along with this other strategies
would be executed after certain years of operations while the firm would attain the stability
point.
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In the present era there is huge significance of the distribution channel as it assist in
offering huge convenience to the target market. It is significant that channel of distribution is in
accordance with the requirement of target customers. As such the sales is done directly thus such
would act as an aid in minimizing the cost which is borne by the firm. The distribution would be
done by the means of home delivery.
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REFERENCES
Journals and Books
Abrams, M. R., 2003. The Successful Business Plan: Secrets and Strategies. The Planning Shop.
Davis, D. D., 2011. How to Start a Home-Based Bakery Business. Rowman & Littlefield.
Meisner, T., 2014. How to Start a Bakery (baking Main Activity) Business (Beginners Guide).
MicJames.
Nunnally, D., 2014. How to Start a Bakery Products (wholesale) Business (Beginners Guide).
MicJames.
Pinson, L., 2008. Anatomy of a Business Plan: A Step-by-step Guide to Building the Business
and Securing Your Company's Future. Aka associates.
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