Good Report On Marketing Strategy Report

Executive Summary

This report presents the marketing strategy and the marketing mix for James Baxter Bakery. James Baxter's bakery will classify its target market according to geographic, psychographic, demographic and behavioral characteristics. The bakery's target market shall be residents and personal customer service and competitive prices are keys to maintaining the bakery's share of the local market in Australia. The bakery will offer good quality products at affordable and competitive prices and it will focus on taste, flavor, design and beauty of its products and it will not use preservatives in its products but will emphasize on the freshness of its products. James Baxter’s Bakery will attain a competitive advantage through competitive prices for its products. The bakery will focus on offering good customer service and high-quality product in a bid to gain competitiveness in the industry. The cost leadership strategy will increase the bakery's competitiveness in the market. Differentiation strategy will attract more customers by introducing value-adding features in the cakes and breads. The bakery's core products will be high-quality products and a good brand name and the consistency of the product quality shall be maintained in all baking processes and its core products will be bread and cakes. The bakery will introduce new bread and cake recipes with a unique combination of ingredients and it will guarantee all customers that its products will meet the customers’ expectations on healthy issues. The bakery will offer the cakes and breads in both wholesale and retail and will sell its cakes and breads to gourmet grocery markets and it shall have its retail centers. The bakery will cater for niche markets for example birthday cakes and wedding cakes.

Executive Summary 2

1.0 Introduction 4
2.0 Marketing strategy 5
2.1Target market 5
2.2. Positioning and Competitive Advantage 6
2.2.1Positioning 6
2.2.2 Competitive advantage 7
3.0Marketing Mix 8
3.1Product strategy 9
3.2Pricing Strategy 10
3.3Distribution Strategy 11
4.0Summary of Recommendations 12
5.0Conclusions 15

Reference List 17

1.0 Introduction
This assignment discusses the marketing strategy and the marketing mix that is appropriate for James Baxter Bakery. The bakery’s reputation and success shall be attributed to the provision of good quality products and the bakery will educate all employees on all changing trends in the industry. The cost focus strategy will increase the bakery’s competitiveness by enabling it to concentrate on a specific niche market. The bakery will offer augmented products to increase the value of the actual product. The augmented products will strengthen the customers' purchase decisions and they include a guarantee, customer service and accessibility. James Baxter’s bakery will ensure that the products are affordable and of high quality. The everyday low price strategy will offer a constant price and eliminates the need for price changes and discounts on the bakery’s products. The bakery will use its website to display images of the bakery’s products. The website will have an order page that will allow customers to specify the design for their cakes and the bakery will offer delivery services for customers upon request. The market strategy is discussed in part one of the report and the marketing mix is in the second part of the report. The summary of recommendations is presented in the third part of the report whereas conclusion is presented in the last part of the report.
2.0 Marketing strategy
The market strategy focuses on the target market, positioning and competitiveness of the bakery. James Baxter’s marketing strategy will focus on offering products of the best quality at competitive and fair prices in a bid to meet the demands of low-income earners, middle-income earners and high-income earners. The bakery will strive to be the leading bakery and will be competitive in the market by providing healthy products. The marketing strategy will aim at meeting the needs of the target market. Additionally, the bakery will adopt positioning and competitive advantage strategies that will increase its share of the market.
2.1Target market
James Baxter’s bakery will classify its target market according to geographic, psychographic, demographic and behavioral characteristics. Segmentation of the market classifies the market by grouping them according to specific characteristics and market segmentation is crucial for the bakery because it will help the management to comprehend the needs of each segment. Under geographic segmentation, the bakery shall classify its customers to residents, tourist and travelers. The bakery’s focus shall be on local residents because it will be located there and the local residents will offer a large customer base and it will be source of consistent and healthy revenue for the business (Bogue & Sorenson 2011). Residents will ensure that the bakery is stable in its operations and other geographic segments include tourists visiting Australia and travelers passing through Australia. Tourists will generate 25 % of the bakery’s business whereas the travelers will generate 20% of the bakery’s revenues. The bakery will offer competitive and high-quality products in a bid to capture the tourists and travelers segments. The bakery's target market shall be residents and personal customer service and competitive prices are keys to maintaining the bakery's share of the local market in Australia. James Baxter shall use three main demographics namely education, social classes and gender to classify its customers. The bakery will target customers from all social classes and all genders (male and female).Additionally, the bakery will reach out to customers aged between 10 and 50 years and their education levels will be above 35% (Mittal 2014).
2.2. Positioning and Competitive Advantage
2.2.1Positioning
James Baxter’s Bakery will position itself as a customer-oriented, competent and innovative bakery. The positioning strategy will aim at offering a variety of bakery products that will attract many customers. Additionally, the positioning strategy will aim at retaining customers by giving them offers and discounts for large amounts of purchases. The bakery position will be enhanced by free delivery of goods to various retail outlets (Bogue & Sorenson 2011). James Baxter Bakery will work towards being the leading bakery in Australia thus, it create a good brand image that will enable it to be positioned strategically within the market. The bakery will improve its position in the market by penetrating into newer markets and it will create its desired position in the market by formulating strategic plans to attain its desired positioning in the market.
2.2.2 Competitive advantage
James Baxter’s Bakery will attain a competitive advantage by offering competitive prices for its products. The bakery will focus on offering good customer service and high-quality product in a bid to gain competitiveness in the industry. The cost leadership strategy will increase the bakery’s competitiveness in the market and the bakery will attain cost leadership by being the lowest provider of cost for its products. The cost leadership strategy will enable the bakery to achieve economies of scale and the bakery will achieve economies of scale by producing high volumes of breads and cakes. Economies of scale will increase the bakery’s competitiveness by increasing the employee’s productivity, facilitating division of labor and saving expenses by buying baking ingredients in large amounts and giving the bakery greater ability to offer the cakes and breads at competitive prices (Bogue & Sorenson 2011). The cost focus strategy will increase the bakery’s competitiveness by enabling it to concentrate on a specific niche market. For instance, the bakery will introduce cakes that will be suitable for specific niches such as birthdays and weddings. Alternatively, the bakery may choose to cater for specific niches by using vegan and organic products in the baking of the cakes and breads. The cost focus strategy enhances competitiveness of bakeries by making it cost-competitive within a specific niche. For example, if James Baxter’s bakery prepares wedding cakes in it product portfolio, it will aim at selling the cheapest wedding cakes within that specific market niche (Ginevičius, Podvezko & Ginevičius 2012).
Differentiation strategy will attract more customers by introducing value-adding features in the cakes and breads. The bakery will differentiate its cakes and breads by improving the quality of the cakes and the breads and introducing special recipes for the breads and cakes. Other factors of differentiation that will contribute to the bakery’s competitiveness include production of customized breads and cakes, introduction of rush services and delivery services. The differentiation focus strategy will enable the bakery to focus on specific segments of the market. Accordingly, James Baxter’s bakery may use the differentiation focus strategy by introducing delivery services for its organic breads and cakes in bid to differentiate itself in the market niche that consumes organic breads and cakes (Mittal 2014).
3.0Marketing Mix
James Baxter’s Marketing mix strategy focuses on the product, pricing and distribution strategies. The bakery will produce a core, actual and augmented products. The objectives of the marketing mix will be to increase the bakery’s sales and its marketing efficiency. The bakery shall formulate measurable, attainable, realistic and tome-bound marketing objectives by using the main elements of the marketing mix. James Baxter bakery will adopt the Everyday Low Price pricing strategy in a bid to retain its customers. The bakery will offer its products in both wholesale and retail and will sell its cakes and breads to gourmet grocery markets and it shall have its retail centers.
3.1Product strategy
The main levels of product that will be offered by the bakery include augmented, core and actual products. The bakery’s actual products will be the bread, birthday cakes, wedding cakes and cookies. The bakery’s core products will be high-quality products and a good brand name. The bakery will ensure that the products are of high quality and the consistency of the product quality shall be maintained in all baking processes. The product’s quality performance will be facilitated by lack of defects, high performance and consistent taste. The bakery's brand name shall be Baxter and it will help the customers to identify the products easily and the brand name will pass the information concerning the consistency and quality of the bakery’s products. The bakery’s brand name will be the basis of the bakery’s whole story and will be built around the company's products. The bakery will offer augmented products to increase the value of the actual products. The augmented products will strengthen the customers’ purchase decisions and they include a guarantee, customer service and accessibility (Bogue & Sorenson 2011).
The bakery will guarantee all customers that its products will meet the products’ expectations on healthy issues. Excellent customer service will help the bakery to retain its customers and accessibility of the bakery products will improve the customers’ perceived value concerning the products. The key factor that will contribute to James Baxter’s bakery is the ability to forecast on the customer’s preference for the cakes and breads. The bakery will monitor trends by analyzing bakery trends in trade journals and website journals. The bakery will introduce a rollout strategy that will introduce new products and it will introduce new bread and cake recipes with a unique combination of ingredients. The bakery will conduct surveys on customer through emails and in-store interviews to help in understanding the customer’s preferences for cakes and breads. James Baxter’s bakery will differentiate its cake and bread menu from those of competitors. The bakery will comply with the current trends of healthy cakes and breads by producing gluten-free breads and cakes (Ginevičius, Podvezko & Ginevičius 2012).
3.2Pricing Strategy
James Baxter’s bakery will charge prices that will be on average, 5% higher than the process charged by its competitors. The high prices will be necessitated by the good quality of ingredients that the bakery will use in the purchase of its ingredients and the bakery’s small scale of production. The management believes that customers will accept the higher prices due to the value they bring their environment and their health. James Baxter’s bakery will ensure that the products are affordable and of high quality. The bakery will ensure that the customers get quality products for the prices they will pay. The bakery will reduce the baking costs in a bid to improve its efficiency and baking process and reduce the prices of the final products (Bogue & Sorenson 2011). The bakery’s pricing policy will increase the product’s perceived value by fixing reasonable and affordable prices on them. James Baxter bakery will adopt the Everyday Low Price pricing strategy in a bid to provide high value to customers and to eliminate the customers’ need to look for other deals from other bakeries. The everyday low price strategy will offer a constant price and eliminates the need for price changes and discounts on the bakery’s products. The factors that James Baxter Bakery will consider before fixing prices on its products include fixed costs, competitors’ prices, variable costs, the bakery’s objectives, the positioning strategies and the target market’s willingness to purchase the products( Mittal 2014).
3.3Distribution Strategy
The bakery will offer the products in both wholesale and retail. The bakery will sell its cakes and breads to gourmet grocery markets and it shall have its retail centers. The bakery will cater for niche markets for example wedding caters and it will use its website as a complement of the retail centers and the website will display images of the bakery’s scrumptious breads and cakes. Additionally, the website will have an order page that will allow customers to specify the design for their cakes in terms of decorations, frosting, ingredients, style and size. The bakery will offer delivery services to customers upon request and will allow other customers to pick their cakes from the retail centers. James Baxter’s bakery will sell its products directly to retailers and restaurants. The restaurants and retailers will be the bakery’s regular customers and they will be buying large quantities of the products. The restaurant and retailers will buy the products at reduced costs and since they will be buying the products outright they will give their specifications of the products (Ginevičius, Podvezko & Ginevičius 2012).
4.0Summary of Recommendations
5.0Conclusions
In conclusion, this report has discussed the marketing mix and the marketing strategy for James Baxter Bakery. The market strategy discusses James Baxter’s target market, positioning and competitiveness. The marketing strategy will focus on offering products of the best quality at competitive and fair prices in a bid to meet the demands of all market segments. The bakery will be the leading bakery and will be competitive in the market by providing healthy products. The marketing strategy will aim at meeting the needs of the target market and the bakery will adopt positioning and competitive advantage strategies that will enhance its competitiveness in the market. James Baxter’s Marketing mix strategy focuses on the product, pricing and distribution strategies and the bakery will produce both core, actual and augmented products. The bakery’s marketing mix will increase the bakery’s sales and enhance the bakery’s marketing efficiency. The bakery shall have measurable, attainable, realistic and tome-bound marketing objectives and adopt the Everyday Low Price pricing strategy in a bid to retain its customers. The bakery will offer its products in both wholesale and retail and will sell its cakes and breads to gourmet grocery markets and it shall have its retail centers. For this reason, if James Baxter Bakery implements the marketing strategy and the marketing mix, it will achieve its business, marketing and financial objectives.
Reference List
Bogue, J., & Sorenson, D. 2011. The marketing of. Gluten-Free Cereal Products and Beverages, pp. 393.
Ginevičius, R., Podvezko, V., & Ginevičius, A. 2012. Determining the effectiveness of enterprise marketing based on the 4P’s model. In Proc. of the 7th International Scientific Conference on Business and Management’2012 (pp. 10-11).
Mittal, A. 2014. Role of Marketing Mix for Indian Marketers. Global Journal of Finance and Management, 6(3), pp.191-196.