Golden Carrot Marketing Plan

The Golden Carrot Bakery
Marketing Plan
Research Completed by
Students in Advertising November, 2012
The following document contains both sections requested by the Golden Carrot Bakery: The Market and Competition. All research, analysis, and recommendations were completed by University of Iowa students within the student organization Students in Advertising. It concludes with a few suggestions from the students that are unrelated to the prior two sections.
Table of Contents
The Market....3 Who is the Market.3 What is the Geographic Area3 Competition Non-Price Analysis..4 Price Analysis..8 Recommendations/Conclusion..9
The Market
Who is the market?
The target market of the Golden Carrot Bakery consists of a variety of different consumers, all of which seek the product for entirely different reasons. Though the majority of the consumers will be Iowa City Residents, they come from very different backgrounds and are all currently in very different times in their lives. In total, the Golden Carrot Bakery target market consists of graduate students, business men and women, and individuals with refined pastry tastes. Students throughout the country are continually drifting towards coffee shops whether it be for their morning wake up or a quiet place to study. At the University of Iowa, however, on campus or near campus living is where the vast majority of undergraduate students reside. This eliminates the Golden Carrot Bakery as an immediate destination as there are multiple coffee shops within walking distance from downtown Iowa City. It is common for graduate students, on the other hand, to live further from campus and drive to campus on a regular basis. It is these students that the Golden Carrot Bakery wishes to attract with their high scale, yet comfortable atmosphere. Business men, business women, and corporations as a whole are a very important part of Golden Carrot Bakerys target market in that they represent the catering aspects of the business. The products offered by Golden Carrot Bakery are often purchased for meetings and conferences in corporate settings, and with Iowa City being a very busy commercial metropolitan area, there is a great need for catered events. In addition to the commercial businesses, the University of Iowa, University of Iowa Hospitals and Clinics, and Kirkwood Community College further enlarge this target market in that these institutions frequently host catered events as well. The final target market for Golden Carrot Bakery consists of individuals with refined tastes in baked goods. These products are made from scratch with all locally bought ingredient and are prepared by a French inspired chef. The products are expensive, but the consumer gets what they pay for. For the middle and uppermiddle class, Golden Carrot Bakery could become the go-to bakery for all of their bakery needs.
What is the Geographic Area?

The Golden Carrot Bakery will be located at 1806 Boyrum Street, Iowa City, IA, just a six minute drive from downtown Iowa City. This location is across the street from the Waterfront Hy-Vee and within half of a mile of other businesses including banks, healthcare institutions, and other commercial establishments. Though it is located in a commercial area, this area is in turn surrounded by a large residential area. 3
More importantly, Iowa City is home to the University of Iowa, University of Iowa Hospitals and Clinics, and Kirkwood Community College. The population of Iowa City is around 68,000 during the academic school year and around 40,000 during the summer times when the majority of students leave for home, internships, or full time positions. It is a dense city with businesses on every corner.
Competition
Non-Price Analysis
Golden Carrot Bakery

Products Bakery Items
Carrot Cake Strawberry Dream Cake Traditional crescent Cranberry croissant Turtle croissant Plan scone Cranberry scone Turtle scone - Black Magic Chocolate Cake - Caramel Pecan Upside-Down - Chocolate croissant - Strawberry croissant - Cheddar/bacon croissant - Chocolate scone - Spinach, bacon, asiago scone - Cheddar, bacon, onion scone
Other
Quiches Fresh Fruit - Muffins
Specialty & Expertise - High quality, local/homemade - Personable, delivery service ($1) - Making croissants (chefs specialty) Appearance - Website is bland, needs more pictures and color - Facebook equally as unexcited Company reputation - N/A, new business Sales Method - Delivery - Catering Advertising - Web site, Facebook page, phone number Other Notes 4
Reliable, promise to deliver baked goods to customers doorstep Locational weakness; off-campus/main drag; out of his home The Golden Carrot Bakery has key ingredients to be a successful business, but needs a new location, more employees and a better way to advertise their company/products
Panera Bread
Products Bakery Menu - Pastries: cookies, brownies, bars, scones, muffins, rolls, braids, French croissants - Breakfast assortment: oatmeal, yogurt, fruit, sandwiches - Bread, Bagels Caf Menu - Salads - Panini - Select pasta Specialty & Expertise - Bread and sandwiches Appearance - Chain establishment - Comfortable environment to lounge Company Reputation - VERY well-known and popular - Great customer reviews Sales Methods - In-store ordering - Catering offered Advertising - Commercials - Magazine/newspaper - Social media - Website - Billboards - Sandwiches - Soups - Coffee, smoothies, frozen drinks iced drinks, espresso
MOLLYS CUPCAKES
Products - Cupcakes (classic, center-filled) - Pies - Cheesecake 5 - Cookies and bars - Ice cream - Eclairs
Beverages (coffee, etc.)
- Chocolate covered strawberries
Specialty & Expertise - Center-filled cupcakes Appearance - Very cute/inviting. Colorful and comfortable Company Reputation - One store in Chicago and one in New York - High quality pastries in a young, playful environment Sales Method - In-store - Catering - Delivery Advertising - Facebook, Newspaper articles, Cupcake wars winner
DELUXE CAKES AND PASTRIES

Products - Cakes - Pies - Biscotti - Bars - Scones - Donuts Cupcakes Cookies Macaroons Biscuits/Muffins Bread Croissants
Specialty & Expertise - Specialty Cakes (custom designs) Appearance - House structure - Minimal seating inside - Small patio area outside Company Reputation - Few college students know of it - Mixed review across the board on quality, reliability, and service on review sites. Some customer service issues, wrong orders, bad service.
Sales Methods - In-store orders, call-in & online orders - Custom and general products Advertising - Website - Blog
SWOT of GOLDEN CARROT

Strengths - Very professional - Top of the line croissants - Owner has lived in France and cooks authentic pastries - Goods prepared from scratch, homemade, local Weaknesses - Location not close to downtown - Small budget, 1 employee - Limited space - Lack of marketing presence Opportunities - Catering is very popular in Iowa City Area - Coffee shops are trending in college students of all ages - Cities promoting the buying of local products Threats - Competition continually increasing - Health conscious society turning from too many pastries
Price Analysis
Company Pastries Golden Carrot Bakery Cakes Croissants Scones Muffins Pastries (Dozen) Panera Bread Scones Cookies Brownies Bars Muffins Rolls Braids Molly's Cupcakes Cupcakes Cookies Bars Pies Cheesecake Strawberries Eclairs
Pastry Prices $20.00-$35.00 $2.00-$3.00 ??? ??? $15.00-$22.00
Other Products Quiche Fresh Fruit
Product Prices $3.00-$4.00 $3.00
$3.00-$4.00 $0.50-$0.81 $2.50 $18.00-$32.00 ??? ??? ???
Salads Paninis Pasta Sandwiches Soups Coffee Smoothies Ice Cream Coffee
Deluxe Cakes and Pastries
DeLuxe
Cottage
New Pi
Cakes Cupcakes Pies Cookies Biscotti Macaroons Bars Biscuits Muffins Scones Bread Donuts Croissants Scones Biscuits Sticky Buns/Rolls Donuts Croissants Muffins Scones Sticky Buns/Rolls Croissants Muffins Scones Sticky Buns/Rolls Muffins
$25.00-$75.00 ??? $18.00-$32.00 $0.50-$0.81 $1.25 $1.25 $2.50 $2.00-$3.00 $2.00-$3.00 $2.00-$3.00 $2.00-$3.00 $2.00 $2.00 $2.50 $2.00 $2.50 $2.00 $2.50 $2.25 $2.00 $2.00 $2.00 $1.00 $2.25 $1.99 $1.69
Recommendations & Conclusion

The current price in-shop for the Golden Carrot Bakery specialty croissants are $2.00-$2.50 per croissant. We suggest that this price be subject to a possible $0.50$1.00 increase. The Golden Carrot Bakerys croissant is prepared the traditional, artisan way and is of premium quality. DeLuxe, a top competitor of the Golden Carrot Bakery, is currently charging $2.50 for their croissants; croissants that are of obvious lesser quality. A second price that we suggest be subject to change is the pricing of any pastry offered with added flavors such as fruit or meat. These pastries could become known as premium prices, raising the price of meat pastries an additional $1.00 and the price of fruit pastries an additional $0.50. For all sales to co-ops, we suggest raising the price of delivery to accommodate the size of the order. A $1.00 minimum charge is a great selling point for small orders, but for larger orders we suggest raising this price per pastry. Delivery fees are the type of fees that are looked past when charged and when not charged. The greater public expects to be charged for delivery. We suggest prices regarding retailers should be subject to change as well. Though the pastries are one day old, these pastries are of much higher quality than any other pastry most of these retailers will have the ability to sell. If the Golden Carrot Bakery market their product in a way that truly presents its quality as well as the fact that they are all 100% local, we believe retailers will agree to a small price change. Our last suggestion is to make sure to move at a pace that is wise and comfortable for you. Expansion can considerably raise a companys net worth and create a higher revenue stream, but it can also be detrimental to a business. Too much expansion too quickly is a common mistake in small businesses. We suggest expanding into coffee and other drinks, but waiting to expand into a full deli until the company creates a larger, regular stream of revenue. We also highly suggest forecasting costs of expansion in order to determine what quantities of each item would be necessary to break even. If these quantities are feasible numbers, then perhaps consider the appropriate level of expansion. That said, only the Golden Carrot Bakery can decide what is best for itself in the end.

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The Golden Carrot Bakery

Students in Advertising November, 2012

What is the Geographic Area?

Golden Carrot Bakery

Beverages (coffee, etc.)

- Chocolate covered strawberries

DELUXE CAKES AND PASTRIES

SWOT of GOLDEN CARROT

Pastry Prices $20.00-$35.00 $2.00-$3.00 ??? ??? $15.00-$22.00

Other Products Quiche Fresh Fruit

Product Prices $3.00-$4.00 $3.00

$3.00-$4.00 $0.50-$0.81 $2.50 $18.00-$32.00 ??? ??? ???

Deluxe Cakes and Pastries

Recommendations & Conclusion

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