Assignment 3: Part C: Your Marketing Plan Due Week 9 and worth 280 points For this assignment, you will conclude your marketing plan by developing your hypothetical company’s pricing and distribution

Running head: VALENTINES CAKE HOUSE MARKETING PLAN 1

Valentines Cake House Marketing Plan

Emmanuel Diei-yoa

Marketing Management (MKT 500)

7/21/19

Background information

Valentine Cake House is a chain of cake cooking and designing business that was established in 2005. The business’s main branch which acts as the headquarter to other branches was established in New York and over the years, other branches have been established in different strategic locations in New York and other US states like California, Boston, Maryland, and North Carolina. The idea behind the establishment of the business was to fill a gap that the shareholders noted in the baking department of food and beverages sector. the shareholders realized that in baking there is a lot of potential because there are a lot of occasions that people celebrate and they need a mouthwatering and beautiful cakes to make the ceremony appear complete and elegant. Apart from cakes, the shareholders identified increasing demand of quality and healthy snacks like biscuits a product that the company serves the clients as a substitute product to the cakes which are the primary product that the business specializes in.

During the establishment time, the shareholders pooled resources together that totaled to approximately $200,000. This is the amount that was used to set up the first outlet in New York and within 3 three years, the shareholders had managed to get back the invested amount. It was in 2008 when two other branches were established in New York to reach out to more clients and by 2010, the company managed to start targeting other potential US states as well as more outlets in New York. Currently, the business has a total of 39 outlets where baking orders are collected and all services offered within the premises. The business has also embraced technology where online orders are taken and delivered as per the wish of the clients.

Currently, the business is estimated have assets worth $1.5 million and at least $2.5million in cash. In all the 39 outlets, the business has an employee capacity of 595. The present workforce makes it possible for the business to design to supply the market with modest, unique, and quality cakes and biscuits that comes in different size and shapes as per the needs of the clients. Valentine Cake House is among the famous cake baking businesses in the United States due to quality and reliable services due to its different marketing strategies and to retain the position, the business needs to review its marketing strategies and develop a better marketing plan. This marketing plan shall feature the various aspects of the Valentine Cake House that impacts its marketing and also provide recommendations on areas that need improvement.

Mission statement

The Valentines Cake House has a mission that it intends and works towards achieving which is to enthusiastically re-invent the way the customers enjoy the collaborative expression of unique, eloquent, and “outside the box” thinking in bakery designs that supersedes customer expectations. However, the mission of the company has been made realistic and possible to achieve due to the company vision which the company applies all the time. The business’s vision is to collaborate and work closely with the customers in the creation of customized, fashionable, and unique cakes that brings satisfaction bringing happiness and excitement to each customer. The business hence makes use of effective communication with the clients to get to understand their specific needs and apply creativity and innovation to modify the clients desires and wants leaving clients happy and contented with the services and the products.

Goals

Goals are important for any business as they help the business to remain committed and focused in all its operations. Goals help a business to utilize available resources effectively, realize growth and development and also target more markets (Wu, et al., 2016). Valentines Cake House is aware of this and have set a number of goals and also set a specific timeframe within which the set goals must be achieved. As a matter of reality, the success of the company is determined by set goals achievement ability. Failure to achieve the set goals within the stipulated time is meant to mean that the company is not heading towards the right direction and something needs to be done. Importantly to note is that the company goals are diverse and they need different timeframes for them to be realized. Some need a short time while others need a much longer time. It is for this reason that the business has categorized its goals into two; short and long term goals.

1. Short term goals

1. To increase customer base by at least 5% on annual basis in regards to the number of customers served by the end of the previous year

2. To increase annual sales by at least 8%

3. To establish at least one new outlet in the already established market but in a strategic location within six months to one year

4. Within every three to four months, to come up with at least one healthier cake recipes that would meet the needs of clients thereby leaving the business with diverse recipes that would meet each and every client’s needs

5. Come up with new marketing strategies at least after every six months that would be used to create the right brand awareness and attract more clients

6. To conduct an cake gallery after every six months in order to allow clients have a taste of the different cake flavors as a way of marketing the business and also learning more from the clients.

1. Long term goals

1. To establish at least 2 new outlets within unexplored US market in the next 2-3 years

2. To go international within the next five years starting with neighboring but potential markets for instance Canada and Mexico

3. Buy at least a property within a span of two years that would be used for business expansion purposes and also upgrade business worth

1. Long and short term goals metrics

There are different ways that the Valentines Cake House uses to measure the success achievement of every goal set. The more reason is that for every goal, there is an expected outcome that the business looks out for to determine whether or not things worked as expected. For the percentage of customer base improvement made at the end of the every fiscal year, the company uses market share and the number of clients served in all outlets in the entire year (Moslehpour, Aulia, & Masarie, 2015). A comparison is done between the previous year rating and the current ending year to determine whether the 5% increase has been realized or the percentage has been exceeded or even missed. For sales increment, market share and company sales are also used to compare the previous and current ending year performance. for the goals that are related with establishing new outlets in already ventured into market, unexplored market, and also international, the business at the end of the set timeframe checks whether a new project has been established as expected and whether it is fully operational to determine the success achievement of these goals whether long or short-term.

On the effectiveness of marketing strategies, the company uses different metrics to determine the level of impact for instance, number of visitors visiting the company website, making online orders, number of deliveries made, and also sales are also used to determine (Moslehpour, Aulia, & Masarie, 2015). The more reason an effective marketing strategy is known for attracting a high number of clients. The ability of the business to overcome and remain ahead of competition is a metric used to determine the success of a marketing strategy as well as the impact that new and healthy cake flavors and designs have on clients. For the cake gallery, increased levels of customer engagement, increased profit margins, and increased customer base are constantly used metrics.

Environmental analysis

The Valentines Cake House business has an active environment in which the business conducts its business and has managed to achieve some short and long-term goals since its establishment. However, the environment is diverse as it is comprised of the economic, political, legal, technological and social forces. These forces impact the business in different ways as described by this analysis.

1. Political

The political aspect of the business environment at Valentines Cake House is one of the sensitive aspects as it has a direct impact on the way business is conducted on a day to day basis. The political aspect has to do with government regulations and decisions being made by the legislature in different US states of operation and international levels as well. In the US, the government is stable from the national and the county governments. There are also constant tax laws which make it possible for the business to be sure of the specific taxes to remit to be allowed to operate the business legally. Moreover, it is a good thing that trade unions are independent bodies which the government does not interfere with. One of the challenging aspects is the marketing regulations put in place when it comes to making adverts. The adverts are required to convey a message that is not too manipulative especially when it comes to children as they might not make the right decision. This affects the business because some advert target children and hence the business has to apply precaution.

1. Economic

Economic factors are diverse and they have an impact on business operations. Some of these diverse economic factors that need to be considered include; credit availability, interest rate, monetary policies, inflation rate, exchange rate, cost of labor, and stock market trend. At the company, economic factors are considered as they are used to make important business decision (Chládková, & Kudová, 2008). For instance, during inflation or an expected inflation, the business tries to avoid excess expenditure as it might be hard to recover the invested resources. The cost of products is also deterred by the cost of production which means that caution must be applied to retain quality and at the same time avoid prices from escalating. The more reason is that the prices of different cake types and snacks are a vital marketing tactic for the business.

1. Sociocultural

The products that the business deals in have a lot to do with social factors. The more reason is that it is products that re meant for a light moment that one can have as an individual, as a group, or as a family (Moslehpour, Aulia, & Masarie, 2015). On social factors, the business considers factors like buying behaviors, family size, levels of income, disposable income, price consciousness, customer’s interest and needs. The consideration of social factors makes the business to design and prepare cakes and other pastries that meets all clients’ needs.

1. Technological

Technology has become an integral part of current day life to the extent that it is almost impossible to do anything without the help of technology. Technology has also been embraced and heftily used by the business in all operations. For instance, the business has put in place information systems and equipment used to bake and pack the products. Technology is also used to effect online business and deliver the products to clients conveniently. As a matter of reality, technology since its used in all areas of operation has been behind the ability of the business remain competitive in the market especially because it makes it possible for the business to stand out when it comes to marketing the products.

1. Legal

There are a lot of laws surrounding the baking department that the business needs to observe at all times to avoid facing lawsuits. Some of the legal factors that the business is always cautious about including the marketing rules that have been established and implemented by different state leadership (Moslehpour, Aulia, & Masarie, 2015). There are also employees’ acts that must be complied with and quality standards which make the products suitable for public consumption. Meeting the legal factors makes it easy for the business to operate without challenges as by meeting all legal factors makes the business legal.

SWOT and Needs Analysis

1. Strength

• The business has a strong and reliable leadership that helps in effectively managing the business and also promoting innovation and creativity

• The business has a reliable and accountable marketing team that has helped the business products and brands to be more known

• The business has a stable financial status which makes it possible for the business to embrace technology and make the best out of it

1. Weaknesses

• The business has a long structure which makes decision making and communication to take long therefore causing some inconvenience

• The research team is not aggressive and well-formed and this makes it hard for the business to identify strategic locations for establishment as well as keep up with ever changing customer needs. This weakness leaves loopholes that competitors use to suppress the business.

1. Opportunities

• There are a lot of unexplored potential markets something that possesses an opportunity for the business to target new and bigger markets

• Technology is advancing every day and this is yet another opportunity that the business can take advantage of to promote growth and development.

1. Threats

• There are a lot of upcoming and existing brands that compete for the same target market hence making competition stiff.

• Some potential markets that the business has already ventured and others that it targets are sometimes faced with economic and political challenges that threaten the future of the business in these areas.

1. Needs analysis

The Valentines Cakes House targets a diverse target market due to the nature of products that the business specializes in. the products are suitable to people of all ages, gender, culture, beliefs, and religion but the challenge being that all these diverse markets have different needs and wants. The more reason is that there are some ingredients that some clients may need and others may not need. Understanding customer needs is of absolute importance when it comes to the cake and snacks business (Chládková, & Kudová, 2008). The more reason is that the health and safety of the client should be the priority of the business. It is recommendable that the business should continue engaging clients the more in order to understand their diverse needs and prepare products that suits the specific needs of the clients. This is the only way that the business can retain its relevancy in the market and attract a high customer base thereby leading to the achievement of the business mission, vision, long and short-term goals.

References

Chládková, H., & Kudová, D. (2008). Situation analysis of the external environment of a bakery company. Agricultural Economics–Czech, 54, 301-306.

Moslehpour, M., Aulia, C. K., & Masarie, C. E. (2015). Bakery product perception and purchase intention of Indonesian consumers in Taiwan. International Journal of Business and Information, 10(1).

Wu, Y., Lu, H., Tan, Y., Yang, Q., & Cheng, X. (2016, May). Research on Experiential Marketing Strategy Based on the Sale of Baking Products. In WHICEB (p. 66).