Sunshine Bakery will be specializing in visually attractive cupcakes and cakes. There has been a significant increase in demand for whimsical, overindulgent and visually stimulating cakes, and Sunshine Bakery will target special events such as weddings, birthdays, christenings, bachelorette parties and stork teas.
Sunshine offers a wide range of speciality cakes. All the flavours will be available in both cupcakes or cakes. The different flavours on offer are: vanilla, lemon, strawberry, chocolate, cheesecake, cherry cream and blue berry.
Sunshine will focus on three distinct customer segments.
The first group is the wedding group. This segment is growing at 15% a year with 32,000 potential customers. The second niche is the parties group. This segment is also growing at 15% with 14,200 potential people. The last group is the individual buyer (walk-in) group. This niche also is growing at 15% with 48,000 possible customers.
Recognizing the importance of human capital, Sunshine has assembled a strong management team. The team is led by Merlin Hull.
Merlin comes to Sunshine with 10 years of baking experience. In addition to her industry specific experience, Merlin has had 2 years of management experience. Robert Morgan brings financial skills to Sunshine after a 15 year CPA career. Marlene Hendricks will lead the marketing efforts having participated in her own PR firm. Lastly, Debbie Reitz will be on the team as an assistant baker with over five years of experience.
To establish a working storefront for Sunshine Bakery.
To develop the strong presence in the community needed to support sales goals.
To develop a full menu by the end of the second quarter.
Sunshine Bakery aims to be a cornerstone in the community creating a neighbourhood atmosphere where customers feel comfortable and become instant regulars.We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.
Sunshine Bakery will be located in downtown Mellville in a historical building. This downtown district is a very popular destination because of the historical architecture for weekenders and tourists.
Currently Sunshine Bakery is a sole proprietorship owned by Merlin Hull. Eventually, as the company becomes established, Sunshine Bakery will apply to be incorporated.
The primary expense to establish the Sunshine Bakery is the mortgage loan estimated at R1,750,000 to purchase the vacant space on 7th street. The building was previously used as a bakery and we plan to buy the used equipment along with the space. This cost is also calculated into the loan estimate. Merlin Hull intends to invest R70,500 of her savings to cover the other cost of start-up.
These costs include:
Bakery accessories, i.e. paper bags, cartons, etc.
Sunshine Bakery provides specialized cakes and cupcakes at premium prices for special occasions. The following flavours will be available vanilla, lemon, strawberry, chocolate, cheesecake, cherry cream and blue berry.
Market Analysis Summary
Our focus will be to target weddings, birthday parties, Easter celebrations, bachelorette parties and stork teas.
Our target market consists of three groups:
The Wedding Group
The wedding industry is booming and Sunshine bakery will focus on this group for whom a premium price can be charged for specialized and custom made cakes or cupcakes.
The Parties Group
This group will probably pre-order a variety of flavours, and it is not such a labour intensive order, because they will probably go for the less expensive option of choosing our standard products.
The Individual Buyer or “Walk-in” Group
Sunshine’s premises in the Bellville area, is a very popular destination because of the historical architecture for weekenders and tourists, which makes this segment a lucrative option. We will focus on window display to attract passersby.
Target Market Segment Strategy
In our target market, we will mainly focus on the “wedding group” since they will spend the most per order. We expect that the “parties” and the ‘”individual buyer” group will make up a smaller portion of our customers. We are specifically filling the speciality cakes needs of the “wedding group”, so we expect the most business from this group.
Sunshine Bakery competes in the Food Services Industry. In addition to competing with other specialized cakes bakeries, it competes with all restaurants, delis, bakeries and supermarkets for a share of its customers’ food expense. Sunshine is most concerned with competitors who differentiate their products and services with a creative and arty focus. Because this group is so large, Sunshine has chosen to limit its analysis to other specialized cakes bakeries.
Competition and Buying Patterns
Currently there are two bakeries in town that provide specialized cakes:
Cupcakes from Heaven
Strengths: Stocks freshly baked cupcakes and cakes. Well- established bakery in town. Sells cakes in local grocery stores. Weaknesses:
Does not provide a wide selection of flavours. Furthermore the texture and flavor of their cakes is very dense and lacks zest.
Life is Beautiful Patisserie
Strengths: Makes cakes and brownies every day. Will make custom-ordered non- gluten cakes.
Weaknesses: Does not produce a wide selection or large quantity of cupcakes. Their main focus is traditional flavour large cakes.
Strategy and Implementation Summary
Our strategy focuses on serving a niche market with quality goods. We are determined to become a part of the community—an establishment that becomes as much of the community as a church or local grocery store. To achieve these goals, we will provide the following: Friendly, neighbourhood-feel atmosphere
Quality baked goods for everyone to enjoy at a fair price
Visually attractive cakes and cupcakes
Coffee sales will be higher in winter months, and for summer months sales of sodas Competitive Edge
Our competitive edge is our quality of goods. We use only products of the highest quality that create incredible feathery cakes that can’t be matched. We also focus mainly on whimsical and modern flavours and designs. The other bakeries in town focus on traditional flavours.
Our strategy focuses on building a customer base by providing good customer experience. With the addition of the coffee bar and lunch menu in early spring, we hope to have customers make the bakery their one-stop destination for breakfast or lunch. In the summer, when we open the outdoor patio, more and more customers will make the bakery a destination for their lunches more often since the atmosphere will be so pleasing.
Our sales forecast assumes the following changes:
Cake sales in the summer months will be slightly higher since the wedding season is at its peak during summer months. Coffee sales will increase during winter months.
Please insert a Sales forecast graph here, indicating the projected sales for 12 months.
Merlin Hull is the founder of Sunshine Bakery. She brings to the bakery her experience as a baker and as an entrepreneur. She has worked as a baker for over 10 years including two years as an apprentice in a well-known Paris patisserie. As a teenager she helped her parents at the family’s general store, both in sales and marketing. For her last two years at her family’s store, she was the general employee manager. Her duties at the bakery will include employee hiring and training, head baker and store management. Robert Morgan has run his own successful CPA consulting firm for 15 years. His duties will include the bookkeeping, inventory management and stock fulfilment. Marlene Hendricks runs her own PR company and will be assisting the Sunshine Bakery in its marketing campaigns on a part-time basis.