A bakery (or baker's shop) is an establishment which produces and sells flour-based food baked in an oven such as bread,

cakes, pastries and pies.[1] Some retail bakeries are also cafs, serving coffee and tea to customers who wish to consume the baked goods on the premises. Many other bakery shops provide services for special occasions such as weddings, birthday parties, or even business affairs. Bakery shops can provide a wide range of cakes designs such as sheet cakes, layer cakes, tiered cakes, and wedding cakes. marketing What does the term Marketing involve? Many people believe that marketing is the same as selling and advertising. Others believe that marketing is a store display, getting the price right or establishing a brand. Marketing, in fact, encompasses all these activities and more.

Marketing is a perspective or attitude that ultimately has the goal of customer satisfaction. In order to pursue this philosophy, marketers use a set of activities that can all be described as marketing. They are:
1. 2. 3. 4. Anticipating and satisfying customer needs. To create mutually beneficial exchange processes To outperform competitors by being more effective and profitable By establishing an efficient management strategy

Each of these marketing activities will be discussed in more detail below.

Anticipating and satisfying customer needs

Customers are satisfied with a product or service if it has met, or exceeded their expectations. However, companies cannot simply rely on customers to compliment or complain, because many consumers simply do not make use of an inferior product or service again, rather than air their opinions. Thus, it is necessary for companies to actively seek information about customer satisfaction, by developing a measuring program which is a permanent and ongoing process. Keeping customers satisfied and responding to their concerns or compliments, will often lead to loyal customers. Every company should strive to create loyal customers, as they hold several benefits to a company. A few of these benefits are listed below:

Lower acquisition cost companies with a loyal customer base need only to remind their customers of their product or service, unlike companies with a new product or service that have to invest heavily into advertising, sales calls, needs research etc.

Referrals word of mouth is the most powerful marketing attribute, and satisfied/loyal customers tend to recommend a good brand to others.

Less price conscious customers loyal customers who have become used to a good products value, will be less price conscious than new, wary customers, and will probably spend more.

To create mutually beneficial exchange processes

A market exists if there are consumers and sellers, who want to exchange something of value. Consumers with needs and wants, and the means to satisfy these with money, will look for an opportunity to fulfil their needs. Basic needs are hunger, thirst and the need for shelter. Marketers cannot, however, create needs, but they can create wants. Marketers cannot make consumers thirsty, but they can attempt to create an association with thirst, and a satisfying cold drink that they promote.

The exchange of value thus leads to benefits for both the consumer and the marketer the need/want satisfaction for the consumer, and income for the seller/marketer.

Outperforming competitors with the Marketing concept

The marketing concept suggests that consumers do not buy a product just for the sake of having it, but to fulfill certain needs or wants. Different consumers have different needs, for example: Some people buy cake simply for the basic need of having normal food, some people buy cake to present for friends, yet other people buy cake to feel good or to make an impression for birthday or wedding occasion. Firms that follow this philosophy, understands that making a sale depends on a thorough understanding of a customers needs, and they will try to position their product to target a specific need. This philosophy will help them to establish a competitive advantage, to offer something special to potential buyers that no other firm offers. A competitive advantage is the reason consumers choose to buy from that company instead of another. This is the reason

why consumers choose one value and brand over another, their reason for buying. This reason for buying is a strategy that marketing orientated companies follows to differentiate their company and their products.

Establishing an efficient management strategy

Many people still confuse the terms sales and marketing. Companies with a sales strategy will focus on mass production, aim their product at the general public and have the main goal to increase sales. Companies with a marketing strategy will target a specific group, aim their product at this groups needs and have the main goal to satisfy the target groups needs.

A company that has a good marketing management strategy will carefully analyse the market and will segment it into different groups of people with the same characteristics and needs. They will develop products or services to satisfy the individual needs of the different groups. See our article on market segmentation for a more detailed discussion of this topic.
finance

Many small businesses applications for loans fail because of their lack of realistic financial goals. The business plan plays a crucial part in determining the financial needs of a new small business, and the entrepreneur should spend enough time on the business plan to ensure that becomes a valuable tool for strategising, getting funding, attracting investors, and eventually sell the business. Not only the financial plan is important to determine financial needs, but also the complete business analysis, the market analysis and the type of products that the entrepreneur will supply. All of these aspects will give a thorough indication of what lies ahead for the business, and how the entrepreneur plans to achieve the financial objectives.

Planning ahead will require forecasting of the future financial needs of the business. The following steps can be helpful for doing this:

Compile a realistic sales forecast that is based on previous experience or based on industry information. Calculate the monthly operating costs and other expenses that may be involved. Again, this must be done based on solid information.

Estimate the levels of investment in current and fixed assets that are necessary to sustain the anticipated sales.

It is important to keep in mind that budgets and financial plans are merely estimates, and forecasting that is not done properly can lead to harmful financing and investment decisions which can bankrupt the firm.

Once the financial needs have been established, the entrepreneur can start thinking about whether financing will be necessary, and if so, what kind of financial support will suit the business best. Short-term finance: Trade Credit Trade credit can be obtained by doing a credit application with your suppliers. The supplier will verify the creditworthiness of the applicant and will also do credit checks with the bank and other trade creditors. If the credit application is successful, the applicants account will be subjected to credit limits and credit terms (30 days, 60 days or 90 days). Short-term finance: Bank credit Bank credit can be obtained in the form of an overdraft facility. This is regarded as short-term finance because it needs to be renewed once a year. An application for an overdraft facility will be considered more favourably when it is supported by a business plan. Medium-term finance: Instalment sale transaction Instalment sale transactions (also called hire purchases) are a popular means of finance among start-up businesses as well as established business. This type of financing is typically used to finance machinery, equipment, furniture and vehicles, it is a credit sale in which the agreed upon purchase price has to be paid in instalments. The seller/supplier will remain the owner until the full purchase price has been paid. Pest

Features of PEST

PEST is a type of analysis used in strategic management that takes into account Political, Economic, Social and Technological factors. PEST analysis is a useful tool for understanding market demand/decline, current business position and potential opportunities/obstacles. The factors it analyzes should not be solely at the company level. Rather, these external factors must be examined at a company, national and global level.

1. History and Use

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PEST is a type of analysis used in strategic management which takes into account Political, Economic, Social and Technological (PEST) factors. The term "PEST" was first coined by Francis Aguilar in his 1967 book, "Scanning the Business Environment." The analysis also often includes Legal and Environmental factors, thus creating a PESTEL analysis. The "EL" was added by Liam Fahey and V.K. Narayanan in their book, "Macro-environmental Analysis in Strategic Management," published in 1986. Frequently combined with Michael E. Porter's Five Forces Model and Albert Humphrey's SWOT analysis, PESTLE analysis is a useful tool for understanding market demand/decline, current business positions and potential opportunities/obstacles. The factors it analyzes should not be considered solely at the company level. Rather, these external factors must be examined at a company, national and global level.

Political Factors
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This can be seen as the degree by which government legislation impacts the company. Some examples include tax policy, trade restrictions and tariffs. Less obvious examples include inter-country relationships, political trends, types of government, war, terrorism, treaties and currency.

Economic Factors
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While closely related to political factors, the economic factors analyzed by PESTEL analysis focus more on the monetary impact created thereby. Examples include exchange rates, interest rates, inflation, import/export levels, consumer confidence, capital markets and job growth rates.

Social Factors
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The social factors considered (also called socio-cultural factors) refer to those factors that result from society's changing tastes, preferences and demands. Examples include disposable income, age distribution, population growth rate, education, diversity, living standards and cultural attitudes.

Technological Factors
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Technological factors include those within the company, such as research and development, and those of complementary companies and competitors, such as

new innovations and advancements. Other technological factors include transportation, communications and the Internet.

Environmental Factors
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Environmental factors include climate change, climate and weather, as well as attitudes toward the environment.

Legal Factors
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Legal factors to be considered, both domestically and in regard to any country in which the company does business, include antitrust law, consumer law, employment law, health and safety law, and corporate law.

1. Buyers
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Buyers of the bakery industry's products, such as supermarkets, grocery stores, hotel chains and convenience stores, are able to appropriate much of the industry's profit due to the large number of small bakeries that are all vying to find outlets for their products. As a result, buyers are able to command low prices and volume discounts. Only large players, such as Kraft, Kellogg, Yamazaki Baking and Grupo Bimbo, have the power to level the playing field and achieve a more balanced share of the profits.

Suppliers
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Suppliers do not have much negotiating power in the bakery business due to the well developed markets for their products and the commoditized nature of what they are selling. Bakeries can be affected by price swings of the raw inputs, but the changes are a result of global supply and demand determinants rather than suppliers' negotiating power.

Substitutes
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Many substitutes exist for bakery products. Breakfast cereals, rice and potatoes are all viable alternatives and individuals can also make all of the baked goods they want at home. Bakeries rely upon price and convenience to keep individuals switching to a substitute or baking what they need at home.

External environment factors | PESTEL analysis

External environment factors

PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration.

Political factors, or how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

Technological factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Environmental factors include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance.Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new markets and diminishing or destroying existing ones. Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

Train your chef to excel in the art of making exotic pastries. Enroll him or her in baking school conducted by AIB International, or other food industry groups.
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Check that you adhere to local safety regulations and sanitation norms, which are mandated by the federal government, before initiating any operation. Get a guideline from your local food department.
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Make a list of ingredients and equipments that you will need as well as potential suppliers. You must compare the ingredient quality with prices. Get the best quality of material that your budget can afford.
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Be creative when decorating the bakery. Use your imagination to come up with themes that create a pleasant ambiance for customers.
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Manage your bakery with computerized programs, which can be easily downloaded. These programs help you track inventory, including machinery, raw materials and employee attendance, on a daily basis.
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Promote and market the bakery before its opening date. Advertise in all local newspapers, magazines, radio programs, television stations, etc. Also, put up posters, distribute pamphlets, brochures, business cards and flyers in the neighborhood. You also want to consider an online marketing strategy. Get a business loan. Setting up a bakery is expensive. If you are not taking over the location of a former bakery, you may have to set up a kitchen from scratch by purchasing ovens, mixers, counters, display stands, stoves, refrigerators and so on. Work with a loan officer to make sure you get the proper amount of financing to get your bakery started.
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Get a business license. Figure out the type of business you are going to run and get the appropriate paperwork to register your food establishment. Many bakeries have owners that are sole proprietors, have a partnership with another person or are a limited liability corporation (LLC). Talk to local and state government authorities to make sure you have the correct paperwork to get a proper business license for your bakery. File the appropriate paperwork and pay the necessary fees to acquire your license and register your business with the state. Visit your county government offices to get a food handlers card, if necessary, and submit a health permit application. County health inspectors will visit your bakery to make sure it does not pose a threat to public health, is sanitary and does not have any fire risks before issuing a permit.
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Purchase bakery equipment. Go through a commercial restaurant and bakery wholesaler to purchase items for your kitchen at a good price. If you are not already familiar with reputable vendors, ask the American Bakers Association or the American Society of Baking for recommendations.
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Purchase business insurance appropriate for a bakery or food-serving establishment. Work with an insurance agent to set up a commercial insurance policy for the bakery that covers losses in the event of a fire, natural disaster, water damage, theft, bad publicity (such as news coverage about your customers getting sick from food-borne illnesses after eating food from your establishment) or power outages that can cause food to spoil.
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Market your bakery. Get customers in the door by appealing to their needs and wants (needs: a good price; wants: tasty food), reaching them with an offer they cannot refuse (for example, offer three cookies for the price of one) and letting them know when you will be open for business. Consider having a grand-opening open house where you invite local business owners to network

and offer free treats to the public. Then, continue with a grand opening week where customers can receive special discounts on your baked goods so they will be more likely to purchase a variety of your goods and come back for more.

Business marketing practices work to attract consumer attention to a company's products. As different firms often market to the same types of consumers, they must design strategies to draw their customer base. The advantages of competition between companies provide consumers with desired products, while keeping prices within a certain cost range.

1. Consumer Driven
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The overall goal of a business is to sell enough products to offset operating costs while generating a profit. To sell products, a company must offer something the consumer wants or needs. When two or more companies provide the same type of product line, they must compete to gain the customer's business. According to the Encyclopedia of Business, competition can take the form of offering special services, such as warranty contracts, or making a product appear more desirable. Consumer needs and wants determine the types of products offered and drive a company's marketing strategies. In effect, the advantage of competition between companies benefits the consumer by making needed products and services available.

Price Controls
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Product pricing factors often play a significant role in how companies compete for the customer's business. Ultimately, a product price covers the cost of stocking the product and generating a certain degree of profit. To do this, companies must determine how much a customer will pay for a particular product and what price will attract the most business. According to the Encyclopedia of Business, competition between companies helps to keep price offerings within a reasonable range, which works to attract customers. Supply and demand factors also play a part in controlling prices in terms of a product line's availability versus the number of interested customers. Price controls are more likely to affect two or more companies marketing readily available products, such as paperclips or socks, than companies offering unique products high in demand, such as designer clothing or imported foods.

Market Diversity
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Competition between companies sharing the same customer base can drive businesses to expand or accessorize their product lines to attract more sales. Niche and specialty markets target specific segments within a customer base by providing special products catering to a certain type of customer, according to the Encyclopedia of Business. Likewise, companies that market easily accessible items can include additional services or "freebie" offerings with a product purchase. In effect, competition forces companies to develop and market a diverse array of products to meet customer demand, or create customer demand by offering a unique product.

B2b In sales and marketing parlance, the term business-to-business, also called B2B, is a way to describe the transactions that take place from one company conducting commerce with another company. B2c The consumer in these trades is always another business. When a company sells its products and services to the individual consumer, it is referred to in marketing-speak as B2C, or business-to-consumer

Through groups such as the local chamber of commerce and national trade group associations, B2B firms often look to give and receive business from each other. They are on a more even playing field, opening the door to relationship selling that can prove more effective to long-term sales success.

b2c

Business to consumer, or B2C describes a transaction, product or service, or business strategy as targeted to the consumer market rather than the business market. In contrast, if the target is the consumer, the term business to consumer, or B2C, applies. A business to consumer sale means a sale to a consumer, even of a product normally sold to businesses. For example, bakery mini shop sell bread and cakes to people who in a business to consumer sale. Similarly, a business to consumer product is one targeted toward consumers rather than businesses.