Bread Talk Marketing Analysis Essay

BREAD TALK GROUP (Bakery) Number of brands under Bread talk group ( bakery) 1) Bread talk 2) Toast Box 3) The icing room 4) Bread Society Macro- environment: * Economic: There is a rise in income for most middle and lower income earners, making the bread sold price inelastic as it is a smaller proportion of the salary earned. Bread talk will always enjoy a demand for their bakery products. * Demographic: There is an increase in Singapore’s Population (overcrowding) from past years, more people will cause an increase in demand for such bakeries. * Culture: It is Asian’s habit to eat supper/ tea and hence selling of breads can be used as snacks during these breaks. Therefore there will always be a demand for these snacks. * Technology: Bread talk consulted top R& D teams to create more varieties of bread. 50 novel recipes conceptualized with the input of international bakery consultants within its Research & Development team. The exciting Euro bread series harnesses the taste and quality of European breads and incorporates them with a variety of Asian flavors, such as drunken longan, black sesame, spinach and sweet potato. * Competition: There are also many bakery shops that are well known such as Four Leaves, Crystal Jade, Cake History, Begawan Solo etc. which are in close vicinity of Bread talk. Consumers may choose to purchase breads in different shops according to their tastes and preferences Market: * over 600 bakery outlets in 15 territories * territories include: Singapore, China, Hong Kong and the Middle East Customer target group: * people with different range of income esp. low and middle class * no age group * the discerning customer who enjoys her daily bread * esp those living in city areas Strategy of company * Spirit of innovation: introduced new bakery model called Bread Talk Transit positioned as a quick stop for consumers on the go. Bread talk also developed a mobile application, allowing users to make purchases, locate outlets, and be informed of the latest promotions. By enabling customers to shop-on-the-go, it effectively reduces the in-store shopping time by close to 33% and led to a 75% increase in customer compliments. * Increases productivity and allows for more versatility when sourcing for retail space. * Rapid expansion of the Bread Talk brand. * Strengthened Brand presence : Build RamenPlay, Bread talk, Toast Box and The icing room together in Nex reap financial benefits through cost savings due to shared expenditure ( set up costs) * More charity work being done/ sharing their success: To celebrate 10th anniversary, BreadTalk pledged 5 cents from each Floss Bun sold to Straits Times School Pocket Money Fund, raised $50,000 for needy school children. * Marketing mix: 1) Product: bread, pastries, cakes and drinks. Always create new varieties of breads: Chilli Crab, Carlee Crab & branded its signature bun: Chicken Floss Bun. There are 50 types of bun available in each outlet. Objective: Gain revenue and to satisfy customer’s desire for snacks, especially during breakfast and tea time because most people usually take bread or pastries during this time 2) Place: 25 outlets in Singapore. Some places includes: Parco, Bugis junction, Paragon, Tiong Bahru Plaza, Novena Square, Jurong Point Shopping Centre, Marriott Hotel, Tang Plaza, Junction 8Shopping Centre, Great World City, Capitol Building, Turf City, Parkway Parade, HDB Hub (Toa Payoh), Tampines Mall etc Objective: Locating everywhere allows the customer to buy their bread anywhere! 3) Price: Min. price: $1.00.Max. price:$2.00 Objective: Priced averagely so that people can afford the bread 4) Promotion : a. Store structure: i. Each outlet bears the urban, clear glass, clean cut look punctuated subtly with detailing of contrasting colours of artworks, unique to each locale. (Zen-like concept) ii. BreadTalk signature â€Å"see through† kitchens allow their chefs to showcase their expertise upfront, sharing the preparation of the freshly browned breads and tempt the customers to have a taste of their breads. b. Advertisements/Television/Banners to attract others cheaper price during anniversary month : Bread talk campaign tagline â€Å"Breadtalk gets you Talking†, c. Use of their own brand plastic bag, pamphlet and coupons also serve as a type of promotion to attract new customers wherever and whenever the name carries it. d. Loyalty card-Spend above $5, you will get a stamp on your card. With correct no. of stamps, they are able to redeem a free bun. Flaws * Decline in sales was due to some outlets’ business not doing well, leading to revenue and profits made by other outlets to go wasted as earning cannot overcome losses made. * The popular ‘Chicken Floss Bun ´ idea was stolen by other bakery shops. Bread Talk pushed onto the losing side as competitor sells the product at lower prices price out-grew satisfaction! Improvements made: Market Penetration : 1) Bread talk can have delivery services 2) Bread talk can sell using push carts 3) Conduct more lucky draws to encourage more purchase of breads Product Development 1) Create Minis Breads like Four Leaves such that consumers get to taste and will go for the normal one if the flavours are nice 2) Create certain type of breads during festivals like CNY , Christmas Market Development 1) Open a place to sit and eat ( E.g. Cafà ©) to allow ppl to rest and interaction /not just buy and go 2) Open more shops in residential areas ( underneath HDB flats etc.) so that it is more convenient for residents | Diversification 1) Invent new bread flavours that customers like by surveying them before that Swot Analysis Strengths 1) Unique concept & branding: captures interest of consumers as it constantly develops products reflecting contemporary  lifestyle and current events. Shops gives customers a sense of friendliness 2) Wide range of products:  Bread talk offers over 150 varieties of breads, buns, pastries and cakes overall. Breadtalk constantly introduces new products to cater to customers’ changing tastes. It currently introduces approximately 10 items every four months 3) Strategic Locations : located at strategic and accessible places to attract potential customers as having high customer traffic flow (near public transport systems , retail outlets, , cinemas) Weakness 1) Pricing: products are priced higher than the products of other bakeries, which might cause customers to choose another brand 2) Selection of Products : products limited to bread and cake compared to Bengawan Solo with pastries choices Opportunities 1) Nature of Products :Bread is a commodity and can be sold anywhere in the world. There is a high potential for global growth since there is a constant consumer demand for bread expanding of business overseas 2) Other Markets: BreadTalk has forged partnerships currently in Indonesia, China (Shanghai) Malaysia, the Philippines, Taiwan ROC and the Middle East (Kuwait, Saudi Arabia, Qatar, Bahrain, Oman and UAE), India and Hong Kong. Threats 1) Product/Brand Concept Replication Breadtalk faces the threat of product/brand concept replication by other bakeries especially in regions which Breadtalk has not ventured into (eg USA). 2) Competition from Direct and Indirect Competitors: – indirect competitors include specialized bakeries like Donut Factory, which are currently both capturing increasing consumer interest.