M Garcia Mod2 Assign2

Mercedes GarcíaMercedes GarcíaArgosy Online UniversityArgosy Online University

Marketing Planning & Strategy Marketing Planning & Strategy Dr. Richard LeiterDr. Richard Leiter

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Due to the global economic recession, consumers are supposed to change their habits. People will stop to visit expensive restaurants, but food will remain a basic necessity for them. Our home business company will be able to offer high quality products at affordable prices. (Bannister, A., 2008, May 14).

Products will be available in 30 days. Profits will begin to flow within the next 30, 60 days. The complete market penetration is supposed to take place within the next 12, 24 months.

SWOT SWOT Analysis Analysis

((SWOT, 2009)SWOT, 2009)

Products high quality

Cost advantages

Favorable access to distribution lines

Good production control

Good quality control

Good inventory control

Able to operate under budget

Higher management capability

More flexible than big businesses

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WeaknessesWeaknesses

SWOT SWOT Analysis Analysis

((SWOT, 2009)SWOT, 2009)

Opp

ortu

niti

es

Opp

ortu

niti

es

ThreatsThreats

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8

9

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PERCEPTUAL MAP PERCEPTUAL MAP

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High QualityHigh Quality

Low QualityLow Quality

Low PriceLow Price High PriceHigh Price

Home Baked Goods, Inc. (HBG)Home Baked Goods, Inc. (HBG)

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SIC 2051 Bread and Other Bakery Products, Except Cookies and Cra 2052 Cookies and CrackersNAICS

2007Manufacturing Wholesales Retailers Bakery products for retailers

31181Bread and Bakery Product Manufacturing

424490Bakery products (except frozen) merchant wholesalers.

445291Baked goods stores, retailing only (except immediate consumption)

44529Retailing bakery products not for immediate consumption made elsewhere.

424450Cheese confections (e.g., curls, puffs) merchant wholesalers

311821Cookies

Non-store Retailers

454 – This subsector includes

mail-order houses, vending machine operators, home delivery sales, door-to-door sales, party plan sales, electronic shopping, and sales through portable stalls.

Due to the business structure, various classifications apply. For tax-payments purposes – IVU & state commercial taxes – it is acceptable to use the Bread & Bakery Manufacturing general classification (31181). It is requested, however, to attach a detailed report to the tax filings for the general census benefit.

By January 7, 2009 the Office of Management and Budget issued a special notice document announcing possible changes for the 2012 North American Industry Classification System (NAICS, 2009). This document does not alter any of the included classifications.

COMPETITIONCOMPETITION

Number of bread & baked goods sellers. 56

Number of puff pastries sellers 4

Total market share 21.1 %

Wholesalers market share 3.3 %

Number of establishments with E-Commerce 55

Total sales $16,172,710.

E-Commerce sales percent relating to total sales 0.4 %

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There is no detailed information about puff pastries sales. There is no detailed information about puff pastries sales.

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POTENTIAL ENTRANTSPOTENTIAL ENTRANTS

• Any enterprising housewifeAny enterprising housewife.

PRODUCTS SUBSTITUTEPRODUCTS SUBSTITUTE

Some sugar free products.Some sugar free products.

POTENTIAL BUYERSPOTENTIAL BUYERS

Adults and children of both sexes and incomes. Adults and children of both sexes and incomes.

POSSIBLE SUPPLIERSPOSSIBLE SUPPLIERS

Wholesale food suppliersWholesale food suppliers

Suppliers by InternetSuppliers by Internet

Other local suppliersOther local suppliers