Specific niche market bakeries dissertation

Category: Food and drink,
Published: 01.04.2020 | Words: 1963 | Views: 148
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Niche bakeries are becoming very popular though the previous few years. These types of bakeries specialize in a particular type of snacks and highlight them for his or her customers as well as having other types of more common baked goods available. This can be a type of business that I would generate. My market bakery could specialize in specific cupcakes and pies as well as baking bigger cakes and pies to order. Neighborhood customers will certainly consist of area residents, business owners and pupils that can conveniently walk over to the bakeries location while on lunch break or after university and function to purchase what they want, and with the Net available, I could expand my own consumer base and deliver my goods all over the United states of america.

Customers may place their orders on the web, and I can ship the product to their door.

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The area by which I are living does not have a sort of bakery such as this. We currently have a Wal-Mart and a Kroger’s Food if we want to acquire baked goods.

While they are good plus they are also low-cost considering all their product, my bakery will offer a fresh home baked quality of product that can offer them a lot of competition. I might say in this field, my market bakery would be a monopoly market as that it would be the just one in this site. I would be able to set the costs for my own product but would continue to need to take into account that if the price are too high, my personal potential customers should go back to purchasing their goods from the food chain bakeries.

Looking at a broader region as with the world wide web, I could declare I i am in a monopolistic competition. Every niche bakery that sells baked goods such as this have comparatively the same pricing, no one organization sets the price for the various other businesses. It is still a smaller industry yet there are others in which I have to compete for business. So marketing and a highly made web page will figure prominently in showcasing the products I am selling inside the best possible lumination.

Elasticity of demand in a bakery is vital to know. In the event the price of ingredients increases, the bakery owner need to adjust in this increase. The higher the price elasticity from the product the less volume of the product which will be output, if for instance the need for the merchandise was remarkably elastic, then it wouldn’t seem sensible to increase the price of the product. The company would drop business for that reason.

Below in figures 1A and 1B is info that has been extracted from the Bureau of Monetary analysis by three different industries which have been related to the niche food handling business business. Between the years of 2007 to 2011, there displays a reduction in the earlier years but an enhance within the year of 2011of growth inside the food service and foodstuff and refreshment industries. The retail industry has demonstrate a sharp increase and decrease during these years.

Taking into consideration the growth in each of the meals industries nevertheless, I can associated with assumption that is a organization that could grow and expand with the right form of marketing, campaign, and revenue products. In looking at this sort of business pertaining to my area, I have spoke to some with the local occupants and have identified that they had been amenable to a new specialised bakery inside the area. This impromptu study showed the residents in the area indicated an interest in purchasing baked goods that were of homemade top quality rather than mass produced market products.

Increasing Earnings

In order to increase revenue from this business, there are several things that would be necessary. Underneath are charts and tables regarding costs and revenues showing where breakeven points happen to be and in which profits could be made. Nevertheless , one way to enhance revenue, is to offer anything the bigger superstores in the region are not. Make the product jump out by creating those particular items like fresh fruit compote filled cupcakes, unique flavors not normally proposed by the larger shops like Lemon flavored cookies. Even offering some gluten free and vegan types of snacks can bring in increasedrevenue. Another way to increase earnings is to give free examples; welcome buyers in with an endearing smile and offer these people a free test of a number of the products offered.

By doing this, the customer can get a good idea and a taste in the product of course, if they like it they may turn into a return customer and provide others with them. Likewise, offering a loyalty software can help to keep repeat consumers coming in. By using a stamp credit card that offers a totally free product after so many purchases is one such loyalty software that different bakeries possess used in the past that have proved helpful. And in a tiny town area such as the 1 I stay in, being a area of the community might be a long way which will get the name of my business out there and creating a customer base that may increase my revenue. People are more likely to purchase items from an individual they find out in order to help support businesses in the community.

Income maximizing

Determining the profit increasing quantity shows the gradual changes in income for a industry’s product. In calculating the money maximizing volume I will require the sales and expense reports for my own proposed organization. From this is definitely can gather the profits each and every level of sales. These numbers can then be calculated to show the marginal revenue for each pregressive change in revenue. The little profit is described as the enhancements made on profit for every additional product sold. We are able to then make use of this information to look for the maximizing variety. This is the sum that can be offered before the little profit begins to recede in to the negative. Using this method I can work out how much of a low cost I could offer on my goods if these people were bought in a bulk set. For example in the event someone wished a many dozens of cupcakes or smaller pies to get a party.

Little Costs and Marginal Earnings

Marginal costs and revenues are used to find out how much it will cost to merchandise additional units of goods for any company. I could use this in order to figure out my total costs I would need to produce a item in my bakery. For instance below in Determine 1C I use created a graph and or chart to compute the total earnings, marginal earnings, marginal cost and income of different volumes of one kind of cupcake. Just for this data I actually used a fictional total expense of 0. 91 cents. This is what I realized it would cost to make just onecupcake. After that I was in a position to calculate each of the columns making use of the formulas in Figure 1D.

Figures 1E shows the startup costs and the believed monthly costs of running a niche food handling business of this kind. Figure 1F and 1G show the total fixed costs, total changing costs, the entire cost and total revenue as well as the profits to be manufactured in a stand and a graph. The chart and graph likewise show the breakeven point. This can be a point in which that the production of a certain quantity of cupcakes enables me to be able to even and after that after that be able to show money. The breakeven point to get the quantity of cupcakes is 6th. 5 cupcakes which means money will start showing at 7 cupcakes having a profit of 31 pennies.

Prices and Non-pricing Strategies

Pricing strategies which i could use intended for my bakery would be to offer lower prices on my website to customers which i will be delivery my item to, in location I could keep my prices competitive with other bakeries that are in larger cities. As a way to stay waste down I can present goods which have been left over to the next day at half the original selling price. This was a thing I saw since a child at a nearby doughnut store. The proprietor offered your day old merchandise at a fraction of any price. He was still making money, but likewise there was much less unnecessary waste because people would buy these up quickly. Intended for non-pricing strategies I would count on advertising of my merchandise as one that may be made with quality ingredients. As well as letting the customer base know that each of the goods available are produced from scratch.

I actually do not believe a obstacle can be made or improved because the food handling business business has been in the market for several years. Also, since it is a niche bakery, it is a department off the classic type of food handling business.

Product Differentiation

Some strategies to introduce product differentiation is always to make my own product with seasonal products and local generate. Where I live we now have raspberry and strawberry facilities as well as apple, and other fruits. It would be simple to have the produce shipped to the store mainly because it was in season from the community farms, or even picked up to create fillings, jellies, and other manifold items that I can sell during my bakery for the local residents.

Cost Minimization

Cost minimization would be hard to do in this instance, because I want to retain a quality product from top quality ingredients. I could minimize price by purchasing my personal ingredients in bulk. This would give me a lower cost per unit of assess. I could also purchase entry level products. Yet , if I would be to purchase entry level products just like margarine rather than real chausser, this would be an important drop in cost; however it would also be a significant drop in quality. I believe reducing cost might not be feasible provided the quality of the item.


Creating a business is actually a large effort not to become thought upon lightly. There are many avenues to pursue in order to figure out and find the data required to find out if the organization a person wants to make is the appropriate one for their site and satisfies the demands of their community. If they certainly create a organization, there are various ways to figure out the right way to keep revenue coming in and finding methods to create more revenue. Each of the sections of this proposal allowed me for taking a better glance at the type of business I would consider opening.


Bureau of Monetary Analysis. (2012). Retrieved coming from


Enveloppes, M. (2012). Guide to the Bakery Organization. Retrieved coming from http://smallbusiness.chron.com/guide bakery-business-2400. html

Isidro, My spouse and i. (2009). Starting a Food handling business: Success inside the Niche Foodstuff Business. Recovered from http://www.powerhomebiz.com/blog/2009/10/starting-a-bakery-success-in-the-niche-food-business/ Kimmons, R. (2012). Pricing Vs . Nonpricing Strategies. Gathered from http://smallbusiness.chron.com/pricing-vs-nonpricing-strategies-14166.html moffatt, M. (2012). Little Revenue and Marginal Cost Practice Problem. Retrieved fro http://economics.about.com/od/coststructure/ss/revenue_costs.htm