MKT380 U5IP Final Assignment

Distribution Strategy

The Ono Kine Bakery aims at being an all-round baking business that does wholesale and retail distribution of bread and cakes. The bakery intends to distribute cakes and bread in bulk supply to other shops, supermarkets, and coffee shops in South Virginia. They intend to also function as a retail business where they sell both ordered and already made bakery products to customers directly at affordable costs. The bakery aims at selling their products to other consumers who are far from their main location through online distribution whereby consumers order with specifications of the size, decorations, frosting, and style and then the goods are delivered upon request. The business aims at having several distribution options to help it to make more sales since the popularity of the new bakery will grow in the market as time goes by.

The Pricing Strategy

The bakery intends to price the bakery products in accordance with the size, flavor, designed décor, the type, and the labor costs. The bakery intends to price products that are similar to that of their competitors at a slightly lower price to attract more customers than their competitors. This would help them to increase their sales during the first year of operation and also to gain popularity. The cakes are intended to be made in a very new style that will be priced according to the decorations and amount of labor used to make it. The flavors will also play a major role in determining the price. Products that are bought in bulk will be slightly cheaper than the standard price. The ones that are ordered online will be priced higher than the standard price so as to cater for the additional cost of transport.

Marketing Communications Plan

The Ono Kine Bakery aims at using various communications models when it comes to advertising its products. It aims at taking advantage of the technological advancement of the business to advertise its cakes and bread types through various social media platforms, media such as magazines, events and free sampling, and through direct mail. The direct mail will be used when the company wants to use a formal means of communication to potential contract companies like supermarkets and hotels that might require a formal mode of communication. In direct mail, the main purpose of this mode of communication is to directly request potential customers who may require wholesale services to get bakery products for their businesses. It is a descriptive way of contacting directly and then getting feedback faster than other modes of advertisement. The contacted customer can also freely inquire and get personalized feedback.

The social media is also another way of advertising that can be used when the targeted market is the young people who are more popular with social media platforms like Facebook. It is aimed at helping the company to boost sales since it is a good platform where pictures of sample cakes are posted and added to the notification of potential targeted customers. In this advertising method, I would indicate the uniqueness of the decorations as per the customers desired design. It is used due to its visual capacity that attracts customers better than just using words to describe the products and services offered by the company. The Facebook users can be able to follow the bakery’s Facebook page by just liking the page and then they can get updates on the new cakes type that are being made.

Marketing Research and Sections from Week 1-3

The bakery is intended to be positioned at South Virginia where the population consists of high and middle level incomes. The company targets high-income and middle-income persons who take bread on a daily basis for breakfast. It also targets people who desire to get specified and high quality decorations for birthdays, weddings, and graduations. I believe that the company will develop competitively considering the high levels of competence, technology advancement and high professionalism will boost its brand. It might be a challenge to become popular at the beginning, but setting slightly low prices is aimed at attracting more customers than their competitors so that they also boost their sales. The company location is very key in ensuring the success of the bakery following the political stability and peaceful nature of South Virginia. The technology is viewed as an added advantage to the business that will help in maintaining consistency in production of bread and cakes, and ensuring that the products are delivered to the points of distribution.

The coming business year, the business aims to be able to have received a profit of more than 20%, to have acquired professional chefs who are key in producing quality baker products, to have cleared 50% long term and short term liabilities of the company, and too have attained the popularity in the market that is enough to classify them as one of the most popular bakeries in South Virginia.

References:

Ingene, C. A., Dant, R. P., & Brown, J. R. (2019). Handbook of Research on Distribution Channels. Edward Elgar Publishing.

Kim, H., & Yokoyama, W. H. (2014). Nutritional Attributes of Bakery Products. Bakery Products Science and Technology, 409-415. doi:10.1002/978118792001.ch23