PROJECT TITLE : TOP BAKER (BAKERY SHOP)

MARKETING PLAN
PRINCIPLES OF MARKETING
UFC1001
SESSION 2020 SEMESTER 1
NO. NAME MATRIC NO.
GROUP LEADER:
1. UFA 190203
AHMAD SYAHMI BIN MOHAMMAD NOOR
2. VICKNA VINAYAGAN A/L JAYABALAN UFA 190271
3. MOHD RUSHDAN BIN MOHD ISHAK UFA 190225
4. KANNISHAH A/P SEVANATHAN UFA 190267
5. SHAHIDAH BIN HASSAN UFA 190248

LECTURER’S NAME : MDM. KHAIRUNNISA BINTI BUJANG

DATE OF SUBMISSION : 6TH SEPTEMBER 2020

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ACKNOWLEDGEMENT

Alhamdulillah for the permission of Allah S.W.T. we are able to complete this group
assignment for subject Principle of Marketing (UFC1001). This assignment requires a lot of hard
work and patience. We also have tried our best to do this assignment with successful. This task
had been done with all afford by group members even though a little but problem was happened
among us while doing this assignment. Luckily, all the problem can be settled down and we were
able to adapt properly and wisely.

First, we want to thank our lecturer Associates Mdm. KHAIRUNNISA BINTI BUJANG for her
precious guidance and supervision, from the beginning until the end in guiding us on how to
complete this task and for her support and advice in complete this group assignment. We very
appreciate what have she done to explain about this assignment. May Allah reward for all her
efforts. This assignment tested our abilities mentally and physically.

We would like to extend our deepest gratitude and special thanks to all who have directly
and indirectly guided us in the writing for this assignment. We express our deepest appreciation to
our beloved parents, family, friends and colleagues for their continuous encouragement are
greatly appreciated. We also want to thank to those who has sincerely helped in quest of seeking
materials and information for this assignment especially to Mr. Zaidi, Chief Baker who has given
cooperation with us to complete our assignment.

Lastly, to all whom those were supported us in any sense and anything, hopefully that this
assignment can be used to increase our knowledge about this subject.

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EXECUTIVE SUMMARY

Awareness of high quality baked goods is on the rise. Good bread is a rare combination of
nutrition, convenience, and luxury. Today's consumer has less time to create wholesome,
handmade bread, but increasingly appreciates the nutritional and sensory benefits it
provides. Good bread provides fiber and carbohydrates in a convenient, low fat form that is
portable and delicious. Good bread never goes out of style.
Top Baker will produce and sell high quality, handmade breads to the residents and
tourists of Pantai Business Park, Jalan Pantai Baharu. The Company will focus on
European Style; naturally leavened breads and cake made with high quality ingredients.
Breads and cake will be baked and sold at a storefront facility using a 4 deck, steam
injected bread oven. Labor saving devices will allow the proprietor to run the entire
operation with the help of two part time, seasonal employees.
Top Baker 's main competition includes a health food store, three pastry shops and three
supermarkets in the Pantai Business Park area. Its advantage lies in the high quality of its
products due to specialization and artisan manufacturing. The main marketing focus will be
an eye catching sign, the scent of fresh bread wafting out of the storefront, and periodic
printed advertisements. The company will sample its products liberally.
After establishing the operation, the company will explore the possibility of making takeout
sandwiches. Delivering wholesale bread and cake baked goods to area restaurants and
specialtyretailers will also be considered.
The company is being founded by Mr. Zaidi, an artisan baker currently baking breads and
pastries for Toothsome Foods Company in Pantai Business Park area. Mr. Zaidi has spent
the last two years building the TFC program from the ground up. His wife Riana is also a
bread baker, having baked for one year at the Mamasab Bakery, Top Baker 's chief
competitor. Together they bring a wealth of practical experience and a realistic market
sense to the company.

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Contents
ACKNOWLEDGEMENT ........................................................................................................................................ ii
EXECUTIVE SUMMARY ...................................................................................................................................... iii
CURRENT MARKETING SITUATION ................................................................................................................... 1
MARKET DESCRIPTION.................................................................................................................................. 1
COMPETITION ANALYSIS .............................................................................................................................. 2
SWOT ANALYSIS ................................................................................................................................................ 3
STRENGTHS ................................................................................................................................................... 3
WEAKNESSES ................................................................................................................................................. 3
OPPORTUNITIES ............................................................................................................................................ 4
THREATS ........................................................................................................................................................ 4
OBJECTIVES AND ISSUES ................................................................................................................................... 5
MARKETING STRATEGY..................................................................................................................................... 6
1. MARKET SEGMENTATION ..................................................................................................................... 6
2. MARKETING TARGETING ...................................................................................................................... 7
3. DIFFERENTIATED MARKETING .............................................................................................................. 8
4. POSITIONING ......................................................................................................................................... 8
MARKETING MIX ............................................................................................................................................... 9
PRODUCT STRATEGY ..................................................................................................................................... 9
PRICING STRATEGY ....................................................................................................................................... 9
DISTRIBUTION STRATEGY ........................................................................................................................... 10
MARKETING COMMUNICATION STRATEGY ............................................................................................... 11
ACTION PROGRAMS........................................................................................................................................ 12
BUDGETS ......................................................................................................................................................... 22
REFERENCES .................................................................................................................................................... 25
APPENDICES .................................................................................................................................................... 26

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CURRENT MARKETING SITUATION

Food consumption growth in Malaysia and Malaysia will become one of the fastest The rise of
Malaysia 's food consumption is significantly good economic prospect and will impact on the world
food demand. Malaysia 's total spending on food and beverage has significantly increased. This
has given Top Baker a good prospect of business opportunities in choosing Pantai Business Park
as the target place to invest in. Top Baker will serve all its customers lower, middle and upper
income by providing its product with affordable prices and by rendering services that will put a
smile on the faces of its customers. It will make no discrimination between its customers and the
location is strategically located in the heart of the city and surrounded by schools, government
offices, private and also close to a residential area. Malaysians younger generation is influenced by
western culture so Top Baker uses this as an advantage. Prices, distribution channels, and
promotion can be used to crack through the target markets efficiently.

The Malaysian are more friendly, therefore, word-of-mouth becomes critical because they are able
to influence one another in being favorable to a brand. They are very concern about the brand so
new entrants in the market must compete with giant competitors. Person's self-fulfillment and
realization of individual prospective are genuine. Establishing this Top Baker, it uses Malaysian
artist who is already famous among the Malaysian. It is important because it helps only not to
promote the product but also educate customer about its quality.

As a new business in the market, the Top Baker will employ the competition-based pricing. To gain
the market share in the short period of time, the Top Baker will analyse the competitors’ pricing
strategies and set the products’ price according to the competitors’ price.

MARKET DESCRIPTION

As the culture of Asians, Malaysians used to dine out together with family and friends, thus
the main target markets focused by the Top Baker is the group customers including family
customers or friends gathering customers. Based on this market target, the Top Baker
needs to consider how to design its store as a suitable and comfortable place for the family
and friends to spend a whole afternoon or evening in the store.
Besides, the Top Baker will also target on serving the teenagers who like spending time by
having group studying time with their classmates. To attract this group of consumers, the
Top Baker considers to launch student package to ensure these teenagers would never find
the products too expensive.
Furthermore, the Top Baker will also target on serving the elder group who have retired and
would like to find a place for spending time. Since this group of customers may have plenty
of free time and money, the products price will not be an issue but the ingredients used for
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 production will be a major issue need to be considered because this group of consumers
might pay more attention on the food health issues.

COMPETITION ANALYSIS

Due to the strategic location of the state, restaurants and café are mushrooming in
Bangsar. The main competitors for the Top Baker include of:

Secret Recipe Cakes & Café Sdn. Bhd. Same as the Top Baker, Secret Recipe is serving
fine quality cakes for the consumers and thus it is one of the direct competitors for the Top
Baker. Facing such a competitor with more than 100 cafes throughout the region, the Top
Baker is currently in the learning stage to learn from the success story of the Secret Recipe.
Season Cake House and Café. Besides of Secret Recipe, Season is another direct
competitor for the Top Baker. Season is one of the famous breads, pastries, and cakes
producers in the Johor market. Based on its reasonable pricing and high quality products,
Season is attracting the consumers with average income. As a newly started bakery, the
Top Baker should produce the products according to Season’s strategy to gain the market
share within short period of time.

Lavender Bakery & Bistro. With the similar strategies as Season Cake House and Café,
Lavender is attracting the average income consumers by providing good quality but
reasonable price breads, pastries, and cakes. Thus, Lavender is another direct competitor
for the Top Baker to follow with its pricing strategies and product strategies. Besides of the
direct competitors mentioned above, the Top Baker is also facing indirect competition from
Station One Café, Coffee Bean and Tea Leaf, and other fast food restaurants such as
McDonald, KFC, and PizzaHut.

According to the analysis did by the Top Baker, the competitors such as Secret Recipe &
Season Cake House and Café are setting the cakes price from RM 5 to RM 12.90 per
piece, and RM70 to RM100 per full cake. Whereas the competitors such as Lavender
Bakery & Bistro are setting the price from RM4 to RM 9 per piece, and RM 30 to RM 70 per
full cake.

Thus, to success in the market, the Top Baker will set its cake price from RM 5.00 to RM
8.00 per piece, and RM 70 to RM 90 per full cake.

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SWOT ANALYSIS
STRENGTHS
a. OFFER VARIOUS TYPES OF CAKES
we are the only store that offers a wide variety of cakes to customers. With these
customers will be able to taste a variety of cake flavors of existing and new. A variety of
interesting and creative forms as a result of discussions with colleagues.

b. STRONG ORGANIZATIONAL ADMINISTRATION

Strength in business administration because each employee has been given the task to
carry out responsibilities and their role in smoothing business activities. The role that
has been informed and understood by every employee while starting a job is a key
strength in managing the business.

c. OFFER COMPETITIVE PRICES

The price offered for each product is competitive. Prices are based on the content of the
materials used and look at the current market conditions. The price offered is also the
same as the competitors in the surrounding area.

d. STRATEGIC LOCATION
Business location is strategically located in the heart of the city and surrounded by
schools, government offices, private and also close to a residential area. So, there will
always be customers to buy the products offered because the cake is one food that can
satisfy and attract customers

WEAKNESSES
a. DO NOT HAVE A REGULAR CUSTOMERS
At the beginning of the business run it is natural that customers still do not know about
the advantages of the products offered. Therefore, owners and employees need to work
harder to get customers to become regular customers.

b. LESS KNOWN
'Top Baker' is less well known compared to other competitors such as Secret Recipes,
Kings Confectionary and others. This is because it is a new business and need to be

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 actively running a promotion to attract customers in order to penetrate the market and
existing competitors.

OPPORTUNITIES
a. BUSINESS OPPORTUNITIES FOR COMMERCIALIZATION
'Top Baker' is also expected to be commercialized like other businesses in the market. It
is related to the cake that is in demand by many regardless of class and age. Business
image will be introduced to the public to attract customers.

b. DIVERSIFY PRODUCTS
The products offered will be added such as further diversifying the type of cake and
adding products such as bread, cupcake, and frozen food such as instant curry paste
and so on. By diversifying the product selection will further increase the profits earned.

c. DEVELOPMENT OF ONLINE
The growing online business is an opportunity for businesses to continue to grow.
Customers can browse the website provided for them to make a quick order or view the
latest products on offer.

THREATS
a. NEW COMPETITORS
This business will also compete with new markets if these markets exist and are
successful. New competitors entering the market are a threat to business. Various
strategies should be established to ensure 'Top Baker' remains the first choice of
customers.

b. POWER AND STRENGTH OF THE COMPETITORS

Competition with businesses that produce similar products is a threat. Competitors who
have already been in the market has a variety of strategies to strengthen their business.
The well-known business name has caused intense competition for ‘Top Baker’ to enter
the existing market.

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OBJECTIVES AND ISSUES

As a newly opened bakery, the marketing objectives of Top Baker is to gain 20% of market
share in Bangsar within first operating year and slowly improving its market share in the coming
five years. To achieve these objectives, the Top Baker is striving to attract consumers to try the
products and build up customers’ loyalty by making the customers feel respected and different
in the market.
Top Baker can increase its revenue through advertising and promotions such as offering
deals on specific items on different days of the week. Top Baker can add to sales totals by
carefully monitoring and adapting to demand, paying attention customer flow as well as sales
patterns. Many changes that bring in additional revenue require little or no monetary outlay,
such as adjusting your hours to be open when you are likely to be busiest or creating
displays that tempt customers to buy additional product. Bakeries stabilize revenue through
repeat business. Promotional offerings bring new customers in the door but monthly revenue
targets are more easily met by encourage return visits. Excellent customer service and
rewards/referral systems are major revenue drivers.
Because the bakery business model of selling optimally fresh offerings creates so much
potential for waste, bakeries should closely monitor profit margins, or the percentage of sales
that exceeds operating expenses. Shop around for low prices on ingredients, but not
compromise quality for the sake of price if customers hold to a high standard. Introduce
efficiencies that enable Top Baker to produce more in less time, such as consolidating
processes, eliminating bottlenecks and achieving economies of scale. Maintaining margins is
critical to any business model.
Building a strong reputation is essential to a bakery's objective of attracting a loyal clientele
and generating a consistent sales volume. Build up reputation by producing high-quality
products and maintaining excellent customer service. Although it is tempting to sell product
that are less than perfect to minimize waste, these sales may cost more in the long run by
compromising Top Baker's reputation. Develop a specialty, and practice until we become an
expert. Build our reputation through social media, community events and local promotional
opportunities. Creativity and positive customer interactions/reviews will boost business in the
long run.

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MARKETING STRATEGY

A marketing strategy is a written plan that includes marketing topics like product development,
promotion, distribution and pricing approach; identifies you company's marketing goals; and explains
how you will achieve those goals. Marketing strategies can help you identify strengths and
weaknesses of your company and your competitors so you know where to focus your marketing
tactics. There are several important components of a marketing strategy that you should include
when writing the document. In basic terms, a marketing strategy analyzes all aspects of your sales
activity and combines it in a way so that all departments know what it going on. Hence, a marketing
strategy is the process that allows the organization to focus on available resources and utilize them
in the best possible manner to boost sales and gain leverage over competitors.

The main mission of our Tap Baker bakery is to offer high & premium quality bakery products at a
competitive price to meet the demands of low level, middle level & high income customers. Top
Baker bakery will focus on four main strategies which is market segmentation, market targeting,
differentiation & positioning in order to achieve the company’s vision & mission.

1. MARKET SEGMENTATION

Market segmentation is the research that determines how your organization divides its customers
into smaller groups based on characteristics such as, age, income, personality traits or behaviour.
These segments can later be used to optimize products and advertising to different customers.
Market segmentation helps you get to know your customers, identify what's needed in your market
segment, and determine how you can best meet those needs with your product or service. An
approach known as target marketing is gaining where companies identify the market segments and
then focus in developing products and marketing program. We Top Baker focus on all four main
market segmentations which is Geographic segmentation, Demographic segmentation,
Psychographic segmentation & Behavioral segmentation to provide top quality bakery products to
our customers according to their preferences.

GEOGRAPHIC SEGMENTATION

Geographic segmentation is a process of grouping customers based on where they live. Companies
segment their target market geographically when needed to focus on a specific area.
Geographic market segmentation tends to optimize the marketing strategies of a business by
matching products and services to different regions, cities and countries where the customers live.
Using population estimates from the latest census and information on the competitive structure from
the local chamber of commerce, our Top Baker bakery can estimate the number of potential
customers and plan its operations accordingly. By putting up an online order-entry system and
contracting with part-time delivery people, it may also be able to supply custom cakes and other
products to locations outside its normal geographic area.

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 DEMOGRAPHIC SEGMENTATION

Demographic segmentation divides the market into smaller categories based on demographic
factors, such as age, gender and income. Instead of reaching an entire market, a brand uses this
method to focus resources into a defined group within that market. We Top Baker bakery use
demographic segmentation to provide cakes & pastries to all categories of customers according to
their age, gender, income and so on. Younger customers may order pastries from our bakery, while
families may drop by for breads and rolls. Orders for tiered cakes for birthdays and other special
events may come from high-income households.

PSYCHOGRAPHIC SEGMENTATION

Psychographic segmentation is when you break your customer groups down into units as it pertains
to their beliefs, values, and reasons for being. The psychological aspects that influence consumer
purchase behavior such as lifestyle, social status, opinions, and activities. Some customers may
believe in the importance of a gluten-free diet, while others might be interested only in high-fiber
breads and rolls. During periods of distress and uncertainty, some may turn to cupcakes or crullers
as comfort food. Customers who are looking for very specific items may be willing to pay a premium
price, which could represent higher profits for our bakery. We Top Baker bakery are specialized in
all types of bakery items including high fiber breads and also all types of cakes.

BEHAVIOURAL SEGMENTATION

Behavioural segmentation divides consumers into groups according to their reactions, responses,
knowledge and attitudes towards a product based on variables such as occasion, benefits sought,
application, usage rate, user status and brand loyalty. Example, Valentine day, mother’s day &
father’s day are a few of the special occasion where customers would want to purchase cakes &
pastries to celebrate the event. We Top Baker bakery will provide good discounts and offers on these
special occasions to attract more customers. We also provide deliveries with very little charges to
the nearby residents so that they can avoid the traffic jam to reach our destination to purchase our
products.

2. MARKETING TARGETING
A market is segmented using age, gender, income, education, lifecycle, social status, social class
and many more. After identifying segmentation few segments are selected to reach target
customers. This process of evaluating and selecting market segments is known as market targeting.
Target market consists of a set of buyers who share common needs or characteristics that the
company decides to serve. Top Baker will serve all its customers lower, middle and high income by
providing its highest of quality products with affordable prices and by rendering services that will put
a smile on the faces of its customers. Top Bakers will not discriminate its customers.

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 3. DIFFERENTIATED MARKETING

Differentiation in marketing means creating specialized products that gain competitive advantage
with a particular segment of the market. In other words, Differentiation is a marketing strategy that
businesses employ to make their products unique and stand out from competitors. Differentiation is
a non-price strategy. Instead of gaining customers by offering them the lowest price, you will attract
them with value-adding features. It is the typical strategy for industries for which multiple competitors
produce identical or very similar products. We Top Baker decided to use differentiated marketing
strategy to differentiate our self from other competitors so that we can shine in a unique way and
become a global famous bakery just like Tartine in San Francisco, USA or Patisserie Sadaharu
Aoki in Tokyo and Paris. In Top Baker, our ingredients are top quality and specially developed
recipes for best a good quality of taste. As mentioned earlier, We also sell customized cakes
according to customer preference and we do deliver our delicious products to your door step so that
you can sit down in your house and enjoy our cakes & pastries.

4. POSITIONING

In marketing and business strategy, market position refers to the consumer’s perception of
a brand or product in relation to competing brands or products. Market positioning refers to the
process of establishing the image or identity of a brand or product so that consumers perceive it in
a certain way.

The positioning of a brand or product is a strategic process that involves marketing the brand or
product in a certain way to create and establish an image or identity within the minds of the
consumers in the target market. Market positioning of a brand or product must be maintained over
the life of the brand or product. Doing this requires ongoing marketing initiatives intended to
reinforce the target market’s perceptions of the product or brand. Branding your bakery is like
baking a cake. No kidding, In Top Baker, We do different layers of awe-inspiring brand stationery
followed by an icing of marketing to complete the perfect dessert to present to our target market.
From our logo to the label on our bakery’s door knob, everything defines our Top Baker’s brand’s
image. We also use social medias such as facebook, whatsapp & instagram as one of our main
platforms to advertise our products. As mentioned earlier, to be successful we need to create a
brand awareness so that our Top Baker brand can become global famous just like the other
famous brands.

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MARKETING MIX

Top Baker believe in delivering quality product at affordable prices and of course delivering them
with outstanding customer service. In order to archieve these objectives Top Baker invest a great
deal of time and money in training, product development, and future design to ensure that Top Baker
is the best bakery brand around. Top Baker regularly touted as one of best pastry shops in the city
with extensive selection of, cake, chocolate, breads and pastries all made to exactingly high
standards.

PRODUCT STRATEGY

Top Baker are the key product of Bakery Cafe, and product quality is essential for the
success of the business. In order to ensure product quality, this bakery will emphasize cleanliness
and sanitation, use quality ingredients, and will always be sure all cupcakes are properly baked.
Innovations are also an important factor in the growth and success of the company. This bakery
will start by offering a variety of options, from simple flavours like chocolate and vanilla, to more
decadent ones such as red velvet and German chocolate cake as well as different kinds of
frostings, and numerous decoration styles for all types of occasions.

However, to grow as a business, it is important for Top Baker to innovate their product. To
do so, the bakery will continually work to develop and test new recipes for new flavours of
cupcakes and icings. Doing so will allow the company to have more variety to offer and possibly
attract new customers. Along with this, Top Baker will create a couple of seasonal cupcakes,
such as pumpkin during the months of autumn or coconut lime throughout the summer, which
will only be available during certain times of the year. Doing this will give consumers something
to look forward to in upcoming months, as well as increase business as customers splurge on
cupcakes, they enjoy that are only around for a limited time. By creating new product flavors, Top
Baker will not only grow as a business, but will also increase sales.

PRICING STRATEGY

After Cup of Top Baker first opens, its key objectives will include strong market share,
survival, and return on investments. Achieving these aspirations will eventually allow the
business to become profitable. Keeping these goals in mind, the company will choose prices
which are competitive with the industry. Doing so will help Cup of Top Baker stay in business
with prices that are not high over competitors, which would likely turn customers away. Yet by
not being immensely below the market price, the business will still be able to receive as much
possible income while remaining competitive. As these prices result in the strong market share
and survival of Top Baker Café, the company will then be able to use income to pay returns on
investments, and in time, receive profits.
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 DISTRIBUTION STRATEGY

The following are the distribution strategies will be followed by the Top Baker :

1. WALK IN CUSTOMERS

Walk in customers will be served by the waiters. To reduce the impatient of

waiting line, the bakery promised to serve each customer within 15 minutes once
the customers found a seat in the bakery.

2. ONLINE ORDER AND DELIVERY

Consumers may check the menu of the products from the company website and
place online order by credit card. However, only the delivery for minimum
expenses RM 70 will be free of charge. The delivery will be handled by the
waiters of the store and special packaging will be the strength for this service.

3. PHONE ORDER AND DELIVERY

Consumers may call in to place order. However, only the delivery for minimum
expenses RM 70 will be free of charge. The delivery will be handled by the
waiters of the store and special packaging will be the strength for this service.

4. SPECIAL PACKAGE CUSTOMERS

The special package service is the special services that we will provide for pre-
booking customers. In certain events, the customers may think about sending
their best wishes to their beloved with their personal made cakes, and this
package is a ‘hands-on class’ which allow the customers to be involved in the
cake making process. However, the price for this service will be varied depends
on the requirements of the customers.

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 MARKETING COMMUNICATION STRATEGY

Promotion objectives of Top Baker will consist of creating consumer awareness, generating
interest and desire, and moving the customer to make the purchase. Strategies for making
consumers aware of the bakery will include advertising and hosting a grand opening. Offering free
samples of the tasty treats at the grand opening may lead to both consumer interest and desire.
As customers try the delicious delights, they will be less hesitant about making a purchase. By
simply building customer awareness, interest, and desire, consumer purchases will increase,
raising company sales.

Being located in a small town, public relations will also be important for the business.
Community involvement will be an extremely valuable method of addressing this. Doing so will not
only help Top Baker receive more business from locals, but will also increase the company’s
chance of referrals in the community. A few ways Top Baker will utilize public relations is through
community involvement such as taking part in community activities, sponsoring local events, or
donating gift certificates or baked goods for fundraisers. This will show the company’s desire to be
involved and help out the community, which is extremely appealing to community members. It will
also provide positive exposure for the company. Public relations will be essential for Top Baker to
be successful.

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ACTION PROGRAMS

1. Advertising Attention Action Plans

a) Specials for Customers

Objective: Reward repeat customers by offering special discounts.

Targeted Group: Former customers wanting to feel valued.

Description of plan: The Customer Special program is meant to reward returning customers by
giving them discounts based on their collected member points. Customers will be able to redeem
points using a member card provided to them at Top Baker. Every 500 points, customers can
redeem one of their favorite cake for free in our bakery.

Steps:

• Find a membership card template

• Format membership card using the template

• Print membership cards through a professional printer

• Create a unique ID through a system to be used to label cards

• Post a sign offering the customers the opportunity to ask for the card and offer the card
during checkout at the bakery cashier

Responsible Party: Cashiers would be responsible for checking customer cards to approve
redemptions.

Timeline: 6 months. This action plan should begin when the bakery opens its doors.

Estimated budget: The printing of cards and the distribution of free goods would be primary
costs.1000 cards will cost RM 350 total. Product cost will vary.

Measurable success: The success of this action plan will be causally related to the number of
return customers who visit Top Baker.

b) Generate a brochure

Objective: To design a Top Baker’s brochure conveying high expectations, quality goods and
dedication to the wellbeing of the customers.

Targeted group: All people interested in Top Baker’s product line and services.
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Description of Plan: A well-planned brochure will help convey what makes Top Baker a unique and
worth frequenting. The brochure should include information about dietary standards, commitment
to ecological responsibility and placing custom orders.

Steps:

• Collect necessary images and generate copy

• Import images and copy into InDesign

• Organize content into a visually pleasing and professional brochure

• Export to PDF

• Bring to Procopy or another professional printer to have materials printed from the PDF files

Responsible party: Top Baker owner would be responsible with this operation.

Timeline: 6 months. The action plan should be on going distribution after the bakery opens.

Estimated budget: Pricing would depend on the number of necessary copies, the service provider
and the current ink price. A rough estimate for 1,500 copies currently would be RM 1,750.

Measurable Success: The effectiveness of this action plan will depend on the number of custom
orders produced, along with the brochures' customer opinions.

c) Develop Website

Objective: Create a simple website to offer customers general information about Top Baker and to
accept online custom order requests.

Targeted group: Anyone online who is searching for information about the bakery.

Description of Plan: People use the internet to research businesses on a regular basis, and if they
cannot find information about your business, they will generally count it against you. Top Baker will
gain a great benefit from being digitally open and available, thus improving the professional
reputation and brand value of the bakery.

Steps:

• Purchase a domain name and host space

• Use either a web designer or a do-it-yourself website builder to create a basic website

• Include photos of the products, location and photos of the bakery, positive customer
testimonials, de tailed contact information and an easy form for customers to request custom

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orders. If feasible, link to social media presences for the bakery on Facebook, Twitter, and
Instagram.

• Assign managers to monitor incoming requests and e-mail and respond accordingly

Responsible party: Top Baker’s web designer, managers.

Timeline: 3 months. This action plan should be introduced before the opening of the bakery but
does not need to be complete before opening the doors. Updates to the site can take place all year
round, focused on seasonal deals and events.

Estimated budget: Cost will vary based on web domain cost, hosting rates and whether a designer
is used.

Minimum expected cost for 2 years should be about RM 3000.

Measurable success: The website's true value is not that it attracts customers, but that it prevents
them from being turned away by lack of information and online presence.

d) Local Event Planner Partnership

Objective: Build an opportunity for local event planners by providing preferential rates,
complimentary facilities, or referrals in response to referral orders to the bakery.

Targeted group: Local event planners

Description of Plan: In turn, event planners will be "courted" by the bakery and offer referrals,
promotional services, and/or exclusive pricing in return for referring clients to the bakery or
themselves becoming regular customers.

Steps:

• Research to create a list of local event planners, both corporate and consumer

• Contact event planners by sending a handwritten note and free sample offer

• Invite event planners to visit the bakery to learn about the product line and to sample the
products themselves

• Follow up every few months to offer assistance

Responsible party: Top Baker owner

Timeline: 6 months to complete initial research and to distribute handwritten cards. This will be an
ongoing project.

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Estimated budget: Posting, vouchers, and free product samples will be the primary expense, but
the total cost will vary depending on the number of targeted event planners.

Measurable success: The effectiveness of the strategy will be measured by the number of event
planners who will become loyal Top Baker customers and brand ambassadors, as well as the
number of referrals earned.

2. Management Commitment Action Plans

a) An organizational training program

Objective: Growing attention to customer service and the development of quality goods.

Targeted group: All employees.

Description of Plan: This action plan is structured to ensure workers provide excellent service and
high-quality goods to their customers. It is important to have specific guidelines for dealing with
customers and quality standards for the products Top Baker creates. RestaurantOwner.com
provides models for training manuals for staff, which will be included in this action plan to help
improve the training program.

Steps:

• Find templates for training manuals for chefs, cashiers, managers, etc.

• Create guidelines for acceptable treatment of customers

• Create guidelines for acceptable quality of products

• Fill in templates to reflect guidelines

• Distribute employee manuals for review

• Discuss guidelines with employees to ensure retention of the information

• Reward high-quality service and production with recognition of employees’

Responsible party: Top Baker’s owner and managers

Timeline: 3 weeks. This plan should start and finish before the Bakery's Grand Opening.

Estimated budget: Time will be the one expense associated with this initiative.

Measurable success: The effectiveness of this strategy will be measured by the degree of positive
customer experiences and overall customer satisfaction, but also by personnel reviews by
managers.

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 b) Cleanliness strategy

Objective: Meet and surpass expectations of cleanliness in food preparation.

Targeted group: Top Baker’s staffs.

Description of Plan: In the food service industry cleanliness is important. Employees have to be
qualified to follow food safety requirements and ensure good hygiene. Several food safety
courses are available on the market, such as SERV Safe and the Essential Control Point Hazard
Analysis program.

Steps:

• Choose a cleanliness program to implement in the bakery

• Provide managers with materials to learn and teach the program to staff

• Distribute learning materials to staff to study

• Schedule a training meeting to go over and assess retention of cleanliness materials

Responsible party: Top Baker’s owner and managers.

Timeline: This action plan must be implemented immediately upon hiring of new employees and
should be repeated on a regular basis to refresh and update practical knowledge.

Estimated budget: Since staff must be paid during training meetings, their wages will be the
primary cost associated with this plan. Other lesser costs may include supplies for education,
printing, and evaluation.

Measurable success: The success of this plan will be contingent upon passing health
inspections, meeting cleanliness goals outlined in Top Baker’s Mission, Vision and Values
statement, and in customer satisfaction levels.

c) Grand opening

Objective: Hold a special event which will formally open the new business venue.

Targeted group: Potential customers.

Description of Plan: Grand openings are perfect advertising opportunities to make a venue formally
open to the public. The grand opening will take place about 6 weeks after the soft opening, which
would allow the bakery time to iron out some "kinks" before welcoming them all at once in a huge
crowd. Promotional material will be circulated nationwide, promoted online and published in local

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newspapers. In order to attract new customers, promotional promotions will be available, and
promotional signs will also be printed to hang outside the building to draw passing traffic.

Steps:

• Set a grand opening date 6 weeks after soft opening

• Advertise grand opening in local papers on the website

• Design and print out fliers to distribute in local residential areas

• Create and distribute a press release to inform local media

• Purchase appropriate promotional signs for event day

Responsible party: Top Baker’s owner and managers

Timeline: 6 months preparation through the soft opening, including time to create fliers, a press
release, and advertisements.

Estimated budget: Costs for production will be small, as the owner would produce fliers and
advertisements. Printing costs, including signage, would likely total about RM 2000.

Measurable success: The effectiveness of this strategy will be measured by the amount of new
business that the new bakery would have created.

3. Organizational Structure Action Plans

a) Written Standard Operating Procedure

Objective: Standard Operating Procedures strive to achieve efficiency, quality production and
performance uniformity while reducing miscommunication and noncompliance with industry
regulations.

Targeted group: Top Baker’s Employees

Description of Plan: Set a collection of step–by-step instructions that an entity has assembled to
help staff execute complex routine operations.

Steps:

• Set a collection of step by step instructions

• Prepare a softcopy handbook for all the employees

• Send the softcopy to each employee via email

Responsible party: Top Baker’s managers

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Timeline: 3 months’ time to figure out the suitable guideline for the employee

Estimated budget: Writing policies and procedures takes time and effort.

Measurable success: Well-written Standard Operating Procedures not only make the job simpler
for employees in Top Baker but they also take the guesswork out of how to perform a job.

b) Organizational chart

Top Baker’s Business Owner

Opening/Day Manager Afternoon/Closing Manager

Head Chef Cashier

Sous Chef Busser

Dishwasher/Cleaning
Baker Decorator

4. Local Advertisement Action Plans

a) Placements in Local Publications

Objective: For the bakery to boost traffic and sales, create positive publicity.

Targeted Group: The local population.

Description of plan: Obtaining local newspaper, magazine, and television placements would mean
ads in both the print and internet media outlets versions. This coverage would help drive bakery
demand, raise awareness, and create brand identity. Approval by third parties is one of the most
successful ways of acquiring reputation, which would be highly beneficial to Top Baker and its
exclusive product line.

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Steps:

• Develop press releases which present Top Baker’s story from several different angles

• Distribute the releases to the appropriate local food and business reporters

• Follow up with local reporters

• Coordinate interviews and tours as necessary to facilitate coverage

• Collect any articles or videos which are run to post to the website (this will serve as third
party endorsement and may help drive custom orders placed through the website)

Responsible Party: Top Baker’s business owner.

Timeline: 6 months. This action plan should begin 2 weeks before the soft opening of the bakery.

Estimated budget: The only downside to this initiative is time.

Measurable success: The effectiveness of this action plan would be measured by the amount and
importance of media attention received, as well as the short- and long-term impact of that publicity
on the revenues.

5. Competition Action Plans

a) Promoting the Niche Product

Objective: Draw in niche customers to build relationships with them since they will be more likely to
become loyal patrons if other bakeries cannot meet their dietary needs.

Targeted Group: People who seek organic products, follow a vegan lifestyle, and/or choose to
restrict gluten consumption.

Description of plan: The use of a variety of mediums to promote specialty products will help ensure
that customers are aware these products are available. This initiative aims mainly through
specialized publications and social networks to address the subjects of specialty diets.

Steps:

• Develop a press release highlighting the specialty product line

• Share the information with local publications targeted towards alternative, healthy lifestyles

• Follow up with reporters to offer an interview

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• Seek out local bloggers who support alternative lifestyles and invite them to visit the bakery
to sample products

• Research local groups that support alternative lifestyles and offer them information about
the bakery

Responsible Party: Top Baker’s business owner.

Timeline: 6 months. This action plan will be an ongoing process but should be started
approximately a week before the opening of the bakery. Some of the research involved can be
extremely time consuming, and the building of relationships can take longer depending on the
attitudes of the involved bloggers and local groups.

Estimated budget: Time is the only expense associated with the action plan.

Measurable success: The effectiveness of this action plan would be measured by the amount of
consumer attention received and the amount and notoriety gained from media reports. Hopefully
these factors would have a positive influence on both the short- and long-term revenues.

b) Public outreach of safe eating workshops in schools / community centers

Objective: By giving back and getting active build a positive picture in the community.

Targeted Group: The community in general.

Description of plan: Top Baker can build an image for itself as an active and valuable member of
the community by participating in health education locally. This initiative will create a presentation
designed to facilitate healthy eating, positive body image and environmental activism for youth.

Steps:

• Research dietary recommendations specifically for teens

• Develop an interactive presentation for teens focusing on eating healthfully, being kind to
your body and using dietary changes to help the environment. Some issues include balanced
indulgence, selecting fewer processed goods to minimize waste and Meatless Mondays to promote
lower food in the food chain

• Seek out local schools and community centers to offer the presentation

• Follow up and make the actual presentations

Responsible Party: Top Baker’s business owner.

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Timeline: 3 months. This action plan will be released some 6 months after the opening of the
bakery. Connecting to communicate with local schools and community centers may be challenging,
which is why completion of this plan can take as long as a month.

Estimated budget: The cost of this plan would be limited to time, travel expenses and likely sample
costs, whether the school or community center requires samples.

Measurable success: The effectiveness of this action plan will be decided by the positive
connections and opinions formed by the community about Top Baker and the impact these
opinions have on the sales of bakeries

c) Partner with Delivery Service for Festival Seasons

Objective: Drive custom orders during the festive seasons by making it easy for customers to send
Top Baker’s products as festival gifts.

Targeted Group: Top Baker’s customers.

Description of plan: Baked products are traditional presents for the festival holidays. Top Baker
should use that to its benefit by making it simple and convenient to deliver the baked goods to
family and friends. Top Baker will significantly boost custom order sales by providing an in-store or
online system for taking custom orders to be delivered during the festive seasons.

Steps:

• Create five gift package options for customers to choose from, being careful to exclude
items that would not fare well during transport

• Find a reliable shipping service to transport goods and approximate cost to send each of
the five gift package options

• Place a gift order form both in-store at the counter and on Top Baker’s website

Responsible Party: Top Baker’s business owner.

Timeline: 6 months. This action plan should be implemented occasionally, just before the start of
the festive season. This will give customers time to notice the gift order forms, so they will know the
option is available before they begin festival celebrations.

Estimated budget: The cost of this plan will depend on the amount of paper order forms provided
for each festival season but should be of minimal cost as delivery and shipping costs will be
transferred to the client.

Measurable success: Increasing the custom orders placed during the festive season would decide
the effectiveness of this action plan.

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BUDGETS

A budget is an estimation of revenue and expenses over a specified future period of time and is
usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a group
of people, a business, a government, or just about anything else that makes and spends money.

Start-up Costs

Description Value (RM)

Security Deposit 5,000.00

Construction 30,000.00
Start-up Inventory 2,550.00
Registration (SSM) 1,000
JUMLAH 38,550.00

Monthly Expenses

Description Value (RM)

Rental 4,000.00
Utilities 3,000.00
- Electricity
-Water
-Telecommunication
-Internet
Staffing 10,000.00
Insurance 5,000.00
Total Amount 22,000.00
Total for 1-years 264,000.00

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 a) Estimated capital (fixed assets & store equipment)

As for our company we already have a fixed asset or store equipment with a capital of RM35,550.
The following is an estimate of the capital that has been used:

Items Value (RM)

1. Store structure 15,000.00
2. Oven 3,000.00
3. Mixer 2,000.00
4. Cash machine 500.00
5. Work Desk 1,000.00
6. Trolley 1,000.00
7. Fridge 5,000.00
8. Tray 500.00
9. Induction stove 1,000.00
10. Bakery Ingredients 2,550.00

11. Others 4,000.00

Total Amount 35,550.00

b) Estimated purchase of materials within a year.

Next, is the estimated purchase of bakery ingredients within a year, that is:

Ingredients Estimates per month Estimates per

(RM) year (RM)
Wheat Flour 150.00 1,800.00
High Protein Flour 200.00 2,400.00
Sugar 250.00 3,000.00
Butter 700.00 8,400.00
Egg 200.00 2,400.00
Ovulate 50.00 600.00
Others materials 1,000.00 12,000.00
Total Amount 2,550.00 30,600.00

Facing the competition from several famous bakery. Top Baker needs to ensure that it may
at least achieve certain level of sales to break even. The following table above shows the financial
results need to be achieved. To break even, the Top Baker needs to sell at least 250 pieces of
cake per day by assuming the cheapest cake RM8 per piece are sold, total of RM 2,800 per day.

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 To achieve the goals of Top Baker, Top Baker cannot depend only on achieving the break
even on every day, but also must think about the goodwill for the business. To survive and success
in the market, the founders of Top Baker are expecting to own at least 20% of the market share in
new outlets within the first operating year, and expecting to slowly improve the market share
owning in the next five years.

Break-Even Analysis includes running costs of production. These are fairly low since we
manufacture all of our goods at a low cost to us. Here are the items included in the average
percent variable cost are ingredients, payroll, mortgage and utilities.

Fixed Cost .
(Sales per price per unit – Variable cost per unit)

RM 368,700 .
(RM 8 per unit – RM 2 per unit)

= RM 46,085.50

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REFERENCES

1. Ark Bauer, J. B. (1995). The McGraw-Hill guide to writing a high-impact business plan: A
proven blueprint for entrepreneurs. New York: McGraw-Hill.
2. Barrow, C., Barrow, P., Brown, R., & Net Library, I. (2008). The business plan workbook
[electronic resource]: The definitive guide to researching, writing up and presenting a winning
plan (6th ed.). London; Philadelphia: Kogan Page.
3. Ivy Hughes. (2010). A simple plan. Retrieved Oct. 7, 2010, from
http://www.entrepreneur.com/magazine/entrepre-neur/2010/august/207578.html
4. The Small Business Encyclopaedia, Business Plans Made Easy, Start Your Own Business &
Entrepreneur Maga-zine. (2010). An introduction to business plans. Retrieved Oct. 7, 2010,
from http://www.entrepreneur.com/
5. Entrepreneur Staff. (2010). Starting a business: The idea phase. Retrieved Oct. 7, 2010, from
http://www.entrepre-neur.com/article/217368
6. Dwyer, B. (2010). Market analysis: Celiac age and demographics. Retrieved March 17, 2011,
from http://bruced-wyer.com/market-analysis-articles/85-celiac-age-a-sex.html

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APPENDICES

The following pages present detailed financial projections for Top Baker over the next five

years. The specific tables to follow include:

• Startup Costs

• 5 Year Annual Income Statement

• 5 Year Annual Balance Sheet

• 5 Year Annual Cash Flow Statement

• Quarterly Income Statement for First 3 Years

• Quarterly Balance Sheet for First 3 Years

• Quarterly Cash Flow Statement for First 3 Years

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Startup Costs

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5 Year Annual Income Statement

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5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

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Quarterly Income Statement for First 3 Years

Quarterly Balance Sheet for First 3 Years

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Quarterly Cash Flow Statement for First 3 Years

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