Launching a Student-Centric Bakery: Inspired by 85 Degrees C

We want to open a bakery likes 85 degrees C in the Songjiang University Town around our school.

First, we will introduce 85 degrees C.It is Taiwan-style catering company, mainly engaged in supplying coffee and dessert. Its name means that "coffee tastes best at the temperature of 85 degree centigrade " , and it’s set up on the basic of five-star chef and banquet’s specified top-level coffee .This shop is a new form of creative, it makes shop more bright with elegant lamplight , and suits with brand image, so that it can bring the consumer different feeling in the bright open space, at the same time the consumer can enjoy the sense of beauty and temptation from the delicious dessert, which will makes your sight、smelling and tasting feel brand new.

85 degrees C is created in 2004, and at present, 85 degrees C has became a chain of enterprise, and has more than 340 stores in Taiwan, annual operating income is more than RMB 1.5 billion, has exceed more than 200 Starbucks in Taiwan area.

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Over the years, it is becoming more and more popular among consumers, especially among the young. There are a large number of students in the Songjiang University Town, it can meet the demands of the students’ need. So if we open a store like 85 degrees C, it will have a big market.

We aim to offer our high quality products at a competitive price to meet the demands of the university students. Our bakery managed by our four partners. There are Peach, Helen, __ and I.

Each of us has a different responsibility.

Peach is in charge of the sales, marketing and supply chain, and I am in charge of the administration and finance. Helen is interested in bakery, so she is in charge of the quality of our products and purchase. And ** is in charge of the customer service.

Our bakery also intends to hire two full-time pastry bakers whose duty is making bread and we also have two part-time staff to handle customer service and day to day operations.

Products and service

We offer a broad range of milk, tea, coffee in high quality, and also provide freshly prepared bakery and pastry products at all time. We cater to all the students’ demands by providing each student high quality products. And make our products suit the customer’s taste, down to the smallest detail.

Our bakery provides freshly prepared bakery and pastry products at all times during business operations. Moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. Especially in the morning, we will provide the fresh, healthy, delicious bread and milk for all the students to let them have a better breakfast.

We provide a comfortable place for students to have rest. We also provide free WIFI, you can come and have fun in surfing the Internet if you take your PC or mobile phone which WIFI allow.

Competitor Analysis From the research we can see that there are several bakery shops around us, such as Lillian Cake Shop、Christine bread house, but we can find some problems with them. On the one hand, it has a very high cost. On the other hand, the environment there is too crowded. The most important reason is that there is no special bakery near our school, so we can open a bakery around. Main Competitions

We may meet the following risks. First, the threat of potential entrants. Second, competition in this industry. Third, the threat of alternative products. Fourth, the buyer’s bargaining power is very strong. Keys to Success and Promotion 、market penetration

Keys to success for our bakery will include: 1. Providing the highest quality products with personal customer service. 2. Competitive pricing. 3. Features of our products. 4. Advertisements and colorful activities. 5. Atmosphere Because we think that our student is not only like delicious food but also looking for high quality and fresh products in a relaxing atmosphere where they can chat with their friends, relax themselves, read some books and review their homework. We also provide free WIFI, you can come and have fun in surfing the Internet .

Our promotion and market penetration Promotion strategies will include three parts. Including Advance publicity、Later publicity and activities. Advance publicity will be large-scale, high strength and invest more. Later publicity will pay more attention to the customer relationship management. In addition to these, we will hold some specific activities planning and organization, such as sponsor the school party, in order to promote our bakery, at the same time we can also remind customer’s awareness through the activities. For the holidays, we will carry out targeted promotion strategies such as send leaflets and give some discounts to the customer.

Market Segmentation

Our bakery wants to establish a large regular customer base, and we will therefore concentrate our business and marketing on Songjiang university students, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business.

Market analysis

The dominant target market for our bakery is university students. Personal and expedient customer service at a competitive price is the key to maintaining the local market share of this target market. Because the students in Songjiang University Town have a higher demand on food, they always like fresh and good-tasted food and they also want a comfortable place to have rest. We provide fresh baked bread. You can always see our Baker in the continuous production of bread. We also provide delicious mike tea and coffee all days, especially on the breakfast time and dinner time. And the comfortable place for you and your friends is always available. Financial Considerations

Our bakery shop expects to borrow about $500,000 from you. Mainly used for the purchase of raw materials, the loan, staff training, market promotion. We anticipates sales of about $614,000 in the first year, and $814,000 in the second year, of the plan. We should break even by the fourth month of its operation as it steadily increases its sales. So the company does not anticipate any cash flow problems.