BUSINESS PLAN: BAKERS DELIGHT

INTRODUCTION

The demand for baked items has witnessed a steady increase in the last couple of years.

Baked items are offered customers for convenience and affordability, and the growing

demand has led to a lot of home-bakers and chefs venturing into the bakery business. As

per a report, the Indian bakery market is estimated to grow at a CAGR of 8.5% between

2021 and 2026 and is set to reach a value of USD 12.39 billion by 2026, thus making

bakeries a highly lucrative restaurant format.

Baked items have been around for thousands of years. The art of baking was developed

early during the Roman Empire. It was a highly famous art as Roman citizens loved baked

products and demanded them frequently for important occasions such

as feasts and weddings. Because of the fame of the art of baking, around 300 BC, baking

was introduced as an occupation and respectable profession for Romans. Bakers began to

prepare bread at home in an oven, using mills to grind grain into flour for their breads. The

demand for baked products persisted, and the first bakers' guild was established in 168 BC

in Rome. The desire for baked products promoted baking throughout Europe and

expanded into eastern parts of Asia. Bakers started baking bread and other products at

home and selling them on the streets.

This trend became common, and soon, baked products were sold in streets of Rome,

Germany, London, and more. A system of delivering baked products to households arose

as the demand increased significantly. This prompted bakers to establish places where

people could purchase baked products. The first open-air market for baked products was

established in Paris, and since then bakeries have become a common place to purchase

delicious products and to socialize. By the colonial era, bakeries were commonly viewed

in this way.

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EXECUTIVE SUMMARY
The BAKERS DELIGHT, will construct, develop and operate a licensed bakery shop .This

bakery will sell freshly baked products.

Revenue will be primarily from the sale of cakes and pastries and related products

consumed within Sales. Franchisees will also sell ice cream cakes, traditional gourmet

cakes, birthday cakes and frozen products. Our investment for the bakery business was 6lk

and first year Sales are anticipated to be 860,000 in the first year .We aim to increase

growth and expansion and to increase in average annual rate of each year in the first five

years of operation.

Bakers delight operates with 15 employees currently and works for 14 hours per day. The

company offers a reasonable salary to its employees .Freedom of creativity in adding new

flavors and business strategies offered to its workers. The company is currently owned by a

sole proprietor, accounts ledgers are maintained by owners finance.

Bakers delight conceptualizes a kitchen and live bakery under the same roof. It provides

wide variety of cupcakes, pastries, much flavor of mock tails (that is non-alcohol drinks.

This concept is to provide the customers with quality food items and also it will be treated

for the dessert’s lovers. The main aim is to provide good service facility, comfort dinning

and make sure to give a peaceful environment for the customers

Even we provide cakes for the birthday, anniversary and for many other occasions. We even

provide space for the customers to enjoy their special moments in our place with proper

ambience. The cake house caters to a young and vibrant crowd, as well as the family

segment. The menu offers a balanced selection of food both for when you are feeling

puckish and for those who are ravenous. A tasty selection of cakes is available

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DESCRIPTION OF BUSINESS

NAME OF THE COMPANY: BAKERS DELIGHT

Most of us have often thought of starting a business from home. But due to some issue or

another, it has always remained a plan and never been implemented. The first and

foremost step is to decide on the kind of home-based business you want to start. Make sure

that you have identified what you’re really passionate about and have the zeal to begin

your journey towards your businesses inception.

A home baker can bake any type of cake, beyond our imagination. But you don't need to

know how to do everything - some specialize in selling cupcakes from home or baking

gluten-free cupcakes, while others focus on creating amazing wedding cakes. The idea is

simple. Identify your strengths and work towards it. Being different is the key to success,

so offer something which helps you stand out from the rest.

The company name should convey a strong mental image of what the business is about

and exude a confident and optimistic connotation for the existing and potential customers

(J. Connor, 2009). In order to determine an effective company name, we did a

brainstorming but, only two of us. The reason for limiting the number of decision makers

was to avoid complex problems that may arise when multiple people are involved.

During the session we agreed that it is very important to properly assess different names

for the business before deciding on an appropriate one because it will eventually serve as a

long-term marketing tool. Further, we were aware that once a name has been chosen, the

business owners need to invest their money in branding the company products and name

in addition to creating different marketing materials (i.e. product advertisements, public

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relations, logos, company letterhead and stationery, business cards, etc.). If by some

chance the name has to be changed at a later date, then the modification process can be a

complicated, lengthy, and expensive one.

Our conclusions were that the name should be memorable to customers and have positive

implications, it should not be complicated to spell or pronounce and should communicate

something about the company and its products.

LOCATION

No 07, 14/2, 1st main, Uttarahalli Main Rd, Canara Bank Colony, Bengaluru, Karnataka

560061.

MISSION

 To fulfil consumers’ needs for freshly baked treats for a joyfull and mouthwatering

experience

 The product is distributed by appropriate vehicles, in a nice package at the right

place, right time and affordable price.

 The company would run the business in an open and hones manner, always in the

legal framework and according to the highest ethical standards, trying to keep the

company's integrity as part of the culture.

VISION

 To become the best possible producer and supplier of baked products in the region,
easy to do business with, get everything right at the first time.
 Add value on every occasion having in consideration its positive influence in the
society.

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 To respond to the customers needs, offering excellent service and rewarding its
shareholders and employees.
 To be part of celebration in that particular locality and to provide customers worth the
money experiences.

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PRODUCT DESCRIPTION:

Bakers delight’s primary product includes delicious bakery products sold to the general

public from its retail store location which represents the its underlying philosophy of

providing bakery products which are consistently recognized as ultra-high quality at

competitive prices and which provide complete satisfaction to the end user. Additionally, its

trives to provide its bakery products in a manner which reflects the belief in the importance of

customer satisfaction and increasing sales through product improvements and the

introduction of additional product

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BUSINESS PLAN: BAKERS DELIGHT

MARKETING STRATEGY

 The key to competitive advantage is relevant brand differentiation – consumers must

find something unique and meaningful about a market offering. These differences

may be based directly on the product or on other considerations related to factors such

as personnel, channels or image.

 Tap Into Social Media -There are some bakery promotion ideas, that don’t require a

large investment, but which still work well for raising people's awareness of your

brand. This is especially useful if you plan on opening new locations or franchising

your business in the near future.

 Add more healthy options -It’s hard to find someone who doesn’t like any sweets,

chocolate, cakes, or pastries. But people often try to cut down on pastries to reduce

their daily caloric intake. Although they enjoy what they’re eating, they have to pay

the price in the gym. 

 Services is a transaction through which value is provided by a combination of

products and services in which the satisfaction of customer needs is achieved either

by selling the function of the product rather than the product itself, or by increasing

the service component of a product offer.

 Offer different portion sizes -Have you ever caught yourself thinking you would like

to eat a beautiful chocolate bun, but it’s too big. Would you want to resist buying it,

even if it’s one of your biggest guilty pleasures? This wouldn’t be a problem if you

could buy the same bun but in a smaller size instead.

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MARKETING MIX

Marketing Strategy of Bakers Delight analyses the brand with the marketing mix

framework which covers the 4Ps (Product, Price, Place, Promotion). There are several

marketing strategies like product innovation, pricing approach, promotion planning etc.

These business strategies, based on Bakers Delight marketing mix, help the brand succeed

in the market.

Bakers Delight Product Strategy:

The product strategy and mix in Bakers Delight marketing strategy can be explained as

follows:

Bakers Delight offer wide range of bakery products. Croissants- chocolate, white cob,

white dinner Rolls, Artisan collection featuring Pana di casa Vienna Loaf, Sourdough

Vienna, traditional cakes, flavored tarts like lemon, fruit mince, Brioche Loaf with flavors

like cheese & bacon, choc chip, whole meal Sourdough, Hi protein, Halloween finger bun,

apple crumble slice, choc mud scone, blueberry Danish lattice and BBQ Bonanza Pizza.

Their target customers are the semi urban and urban families and anyone with sweet tooth.

Bakers Delight is also targeting the health-conscious customers by planning to come up

with healthier versions of breads like gluten free bread.

Bakers Delight Price/Pricing Strategy:

Below is the pricing strategy in Bakers Delight marketing strategy:

The price of Bakers Delight products ranges from 50rs to 1000rs where rolls are around

65rs to 90rs while pizza is priced at 150rs.

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BUSINESS PLAN: BAKERS DELIGHT

There several loaf combos offered which costs around 220rs to 650rs. It has competitive

pricing with respect to its competitor like Woolworths, Brumby’s Bakery, the prices of the

products are affordable for the target customers.

Bakers Delight Place & Distribution Strategy:

Following is the distribution strategy in the Bakers Delight marketing mix:

Bakers Delight has over 17 bakeries in india. Its located at airports, malls and individual

bakeries. Most of the bakeries are over the counter shops and there is not sitting place

provided for the customers to sit. Usually customers order food on counter. It is a

franchise kind of business.

To increase their sales, Bakers Delight can collaborate with schools and colleges to serve

their products in the canteens.

Bakers Delight Promotion & Advertising Strategy:

The promotional and advertising strategy in the Bakers Delight marketing strategy is as

follows:

Bakers Delight has a good online presence with a classic website, sharing recipes of the

dishes on display and featuring the star product with nutritional information. Online

puzzles on their products and social media campaigns on Instagram like #MyBakers

Delight where people can share their delightful moments, Facebook page, Taglines like

“We are for Real” and print media has been some of their strategies. Virtual bakery that

displays their core product that replicates a bakery environment including a sales staff.

The company has a YouTube channel and they show interesting way of baking like baking

unreal bread. There has been a $6 million investment to reposition the brand image into a

company that focuses on freshness of bread and advanced baking technique and that all

products are handcrafted.

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BUSINESS PLAN: BAKERS DELIGHT

MARKET ANALYSIS:

The Indian bakery market reached a value of US$ 10.2 Billion in 2021. Looking forward,

IMARC Group expects the market to reach US$ 19.3 Billion by 2027, exhibiting a CAGR

of 10.94% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are

continuously tracking and evaluating the direct as well as the indirect influence of the

pandemic. These insights are included in the report as a major market contributor.

MARKET TRENDS

As we grow, we may pursue a strategy that other bakery businesshave used, which is to

emphasize foods for immediate eating, such assoups, salads, and sandwiches. In other

words, as the economyimproves and as “convenience” continues to be important

toconsumers, selling items in the bakery in addition to “baked products ”seems to be a

smart business strategy.Another trend we will keep our eye on is the trend of eating

healthy .We will determine as we grow exactly how to address or not address this trend.

We could address by having our baked products that are adapted to healthier ingredients

and promote these items for health conscious patrons. This trend and our adapting to the

trend could include offering gluten-free products that would appeal to a percentage of

customers. Overall, we will still be a bakery withmany traditional items, but we may add

items for our health-conscious customers.

SEGMENTATION:

Geographic: delicious bakes target customers are individuals and businesses located in the

following geographic locations:

Demographic: Demographics define what buyers commonly need.Market segments from a

demographics point of view, include

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 Age- all ages

 Gender -female and male

 Income Level- all income levels

Psychographics: The typical consumer to be targeted by the bakery industry has these

characteristics:

 Interests- eating, socialization

 Activities- eat at home, family and personal eating, celebrations,

 Values- eating healthy (for some), give yourself and others a little pleasure

Behaviour: Bread Society expects the target market consumer to rank above the average

individual for:

 Usage Patterns-a range of irregular to regular

 Price Sensitivity- higher prices will be a barrier to some, other customers will pay for what

they want

 Brand Loyalty-  if customer is happy, they will be brand loyal and will tell their friends

STATUTORY AND GOVERNMENT APPROVALS

It is mandatory for the bakeries to acquire licenses from FSSAI, GST, Local Municipality,

Police Eating House, Fire Department and State Pollution Control Board. Out of these, the

FSSAI, GST and local Municipal Health permits are of priority before starting the unit.

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BUSINESS PLAN: BAKERS DELIGHT

OPERATIONS PLAN

Equipment

Essential Bakery Equipment List

Bakeries are artisanal businesses that require fine-tuned equipment. Investing in restaurant

equipment for your bakery will ensure that you can produce the quality products that you

expect to deliver to your customers. 

1. Ovens

2. Ranges, Grills, and Ventilation

3. Microwaves

4. Freezers and refrigerators

5. Food prep surfaces

6. Food prep equipment

7. Safety equipment

8. Sinks

9. Dishwashers

10. Restaurant point of sale system

11. Kitchen Display System (KDS)

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ORGANIZATIONAL STRUCTURE:

Chief executive
officer

Chief baker

Assistant bakers

Admin and
personal
manaager

Sales officer

Accounta Drivers/ Security cleaners

nt/ cashier distributor officers
s

FINANCIAL REQUIREMENTS

Delicious bakes plans to invest investment capital total to eighty to ninety lakhs to fuel

start-up and expansion activities, launch and on-going marketing efforts and on-going

operations as identified in this plan. By investing primarily into developing quality

products and marketing and sales activities, it expects to establish a market share within a

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six (6) month timeframe, allowing for speed to market and preventing additional

competitors the opportunity to create counter solutions .The bakery is preparing for start-

up efforts and currently strives to be recognized as the local leader for bakery products. To

this end, it primarily focuses its efforts on acquiring clients, creating and maintaining

loyalty with existing clients and offering beneficial products for our local market. Star

bakery is committed to using strict fiduciary principles, commitment to our industry and

our community and progressive business philosophies to establish ourselves as a leading

provider of bakery products. Through calculated growth and expansion efforts, the

primary mission is to build a quality, customer base while providing them with delicious

bakery store products

Initial investment:

Advance deposit (rent) Rs 1000000

Machineries and equipments Rs 1500000

Infrastructure Rs 800000

Licencing Rs 200000

Total Rs 3500000

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FIXED EXPENSES:

Salaries Rs 300000

Utilities Rs 50000

Insurance Rs 2000

Legal and accounting Rs 10000

General charges Rs 20000

Loss and break Rs 10000

Advertisement Rs 20000

Monthly rent Rs 100000

Total Rs 512000

Expected sales Rs 4000000

Income Rs 1000000

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BUSINESS PLAN: BAKERS DELIGHT

INDUSTRY ANALYSIS:

SIZE OF THE INDUSTRY

The Bakery industry is expected to grow to over $46 billion in the next five years.

Consumers are increasingly demanding healthier ingredients in bread and desserts.

Successful operators will, therefore, need to offer a greater variety of whole-grain, all-

natural or gluten-free products in order to capitalize on these trends. Moreover, changing

preferences and increasing disposable income levels are encouraging consumers to choose

more premium and specialty varieties over conventional private-label products.

Bakery items tend to be discretionary purchases so the revenues will also benefit from

rising per capita disposable income and consumer confidence, both of which are

anticipated to continue to grow over the next five years.

Market Segments

The products that make up the bakery market are as follows:

 Bread: 32 percent

 Rolls: 19 percent

 Cakes: 15 percent

 Retail bakery products: 10 percent

 Soft cakes: 8 percent

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 Pies: 2 percent.

Barriers to Entry

Becoming a major commercial bakery takes a large amount of capital to purchase

equipment, and you'd face stiff competition from the existing well-known brands.

Opening a small, retail bakery requires less equity and is easier to start. Smaller bakeries

can establish themselves with specialty products, such as whole-grain breads, and

develop a loyal following of local customers.

Threats to the Market

As consumers become more health conscious, they will demand more gluten-free, low-

carbohydrate, whole grain, organic and paleo diet products. Buyers also substitute baked

products with nuts, yogurt and fruit bars.

Government regulations will continue to weigh heavily on the industry. The

Environmental Protection Agency and the Food and Drug Administration are constantly

overseeing the operations of bakeries and issuing new regulations that increase the costs

of production.

Outlook for the Future

The market for baked products is expected to grow around 1 percent per annum in the

coming decade. Consumption is affected by changes in disposable income, consumer

preferences and economic conditions.

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Large commercial bakeries will continue to dominate the competition in the market,

because the other firms are small and the market is highly fragmented. The major

commercial bakeries, such as Grupo Bimbo, will continue to grow by acquiring other

brands and regional bakeries.

JOB ROLES AND RESPONSIBILITIES:

1. Chief Executive Officer – CEO:

 Responsible for providing direction for the business

 Creating, communicating, and implementing the organization’s vision, mission, and

overall direction – i.e. leading the development and implementation of the overall

organization’s strategy.

 Responsible for the day to day running of the business

 Responsible for handling high profile clients and deals

 Responsible for fixing prices and signing business deals

2. Bakery Manager:

 Responsible for managing the daily activities in the bakery

 Ensures that the bakery facility is in tip top shape and conducive enough to welcome

customers

 Interfaces with third – party providers (vendors)

 Reports to the Chief Executive Officer

 Attends to Customers complains and enquiries

3. Chief Chef:

 Responsible for preparing different flavor and style for all our bakery products

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 Make lists and budget for bakery supplies

 Oversees the entire bakery process

 Responsible for training new bakers

 Makes sure that quality in maintained at all times

4. Sales and Marketing Officer:

 Responsible for marketing the company’s products and services

 Responsible for promoting the company

 Responsible for creating marketing and sales strategies, etc.

 Represents the organization in some strategic business meetings

 Ensures that our wholesale Customers get supplies of our products as at when due

 Any other duty as assigned by the Chief Operating Officer / Bakery manager

5. Accountant / Cashier:

 Receives payments on behalf of the bakery

 Issues receipt to customers

 Prepares financial report at the end of every working week

 Handles all financial transaction on behalf of the bakery

 Interfaces with our bankers

 Responsible for payment of tax, levies and utility bills

 Any other duty as assigned by the CEO / manager

6. Distribution Van Drivers:

 Delivers customer’s orders promptly

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 Runs errand for the organization

 Any other duty as assigned by the sales and marketing executive / bakery manage

7. Security Officers

 Ensures that the facility is secure at all time

 Controls traffic and organize parking

 Gives security tips to staff members from time to time

 Patrols around the building on a 24 hours basis

 Submits security reports weekly

 Any other duty as assigned by the manager

8. Cleaners:

 Responsible for cleaning the facility at all times

 Ensures that toiletries and supplies don’t run out of stock

 Cleans both the interior and exterior of the building

 Any other duty as assigned by the manager

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SWOT ANALYSIS:

STRENGTHS

 Product control

 Creativity

 Our environment will differ from any other bakery

 Customized wedding cakes

WEEKNESS:

 Very new business

 Heavy saturation of bakeries in india

 New in the market

 Confusions

 Some products have shortages

OPPORTUNITIES:

 Expansion

 Self-employment

 Great way to get your name out

 Reasonable prices

 Educated /degree owners

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THREATS:

 Area is very competitive

 The new business trends

 Our competitors have better advertising skills

CONCLUSION:

Our business goal as a community based cakes, breads, desserts etc baking and retailing

business is to become the number one choice of residence in the whole of the communities

where we intend to retail our products. We are extremely creative, which is why we will

come up with products in different designs, different variants, different themes, and

different flavors and of course different packaging just to appeal to our target market

Our strongest selling point at delicious bakes is the unique taste of the different flavors of

items that we sell. There is hardly any customer that will taste our items who would not

want to come back and make more purchase – we take delight in welcoming repeated

customers over and over again.

Our plan is to position our bakery business to become the leading brand in the bakery line

of business in the whole state. This might look too tall a dream, but we are optimistic that

this will surely come to pass because we have done our research and feasibility studies.

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BIBLIOGRAPHY:
1) Word News Report.
2) www.Wikipedia
3) www.cakel.services
4) www.KMbakery

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