MANAGEMENT TEAM

JOHN WASHINGTON: GENERAL MANAGER / BAKER

As the Company’s General Manager Mr. Washington’s role is
instrumental in forging the success of the Company. As General
Manager / Baker, his responsibility is to ensure high quality
products get produced and distributed while maintaining a working
environment and a profitable business.
Mr. Washington is a graduate of L’Ecole Culinary in Kansas City
and additionally spent 2 years in Paris at a local bakery. He married
a Bosnian and is very familiar with their diet and eating habits. He is
a native of Chicago, Illinois and is married with two sons.
PRODUCTS AND SERVICES
Bread Society LTD.’s primary product includes delicious bakery
goods sold to the general public from its retail store location which
represents the Company’s underlying philosophy of providing
bakery products which are consistently recognized as ultra-high
quality at competitive prices and which provide complete
satisfaction to the end user. Additionally, the Company strives to
provide its bakery products in a manner which reflects the
Company’s belief in the importance of customer satisfaction and
increasing sales through product improvements and the introduction
of additional products.
CUSTOMERS
Our plan is to have a bakery that becomes a magnet for Bosnians.
According to published sources there are an estimated 70,000
Bosnians living in the St. Louis area. These large numbers stem
from the fact that Bosnians came to St. Louis after the 1992 Bosnian
War. According to one source, this is the largest population of
Bosnians in the United States.
Bosnians are well integrated throughout St. Louis, in business and
commerce and so forth.
MARKETING AND SALES
Through effective use of resources, the Company’s marketing goal
is to position Bread Society LTD. as a leading retail bakery
company while providing consistent opportunities for growth and
increased market penetration. In order to create and market the
Company’s brand and to accomplish a leading position in the retail
bakery industry and local market, channel, we plan to use an
aggressive marketing program. This effort consists of traditional and
online marketing components.
FINANCIAL FORECAST AND REQUIRED FUNDS
Bread Society, LTD. plans to invest investment capital totaling one
hundred thousand dollars ($100,000) to fuel start-up and expansion
activities, launch and ongoing marketing efforts and ongoing
operations as identified in this plan. By investing primarily into
developing quality products and marketing and sales activities, the
Company expects to establish substantive marketshare within a six
(6) month timeframe, allowing for speed to market and preventing
additional competitors the opportunity to create counter solutions.
CONCLUSION
A stellar assortment of bakery products offering combined with a
burgeoning target market and an efficient and effective management
team provide Bread Society LTD. with the necessary tools to forge
ahead as a successful venture while securing brand equity, consumer
loyalty and profits. The information contained herein has been
provided to serve as a guide for interested parties to review and
understand the form and function of Bread Society LTD

COMPANY OVERVIEW
Bread Society LTD. is based and incorporated in Missouri. The
business was formed on July 1, 2014 and serves as a local leader in
the retail bakery foods industry channel. The Company expects to
gain a dominant market position with consumers within geographic,
psychographic and behavioral market segments.
Bread Society LTD. is a bakery managed by the Company’s owner /
baker. The owner will provide funding from savings funds to cover
start-up expenses and provide the necessary funds to ensure a
successful start-up.
BUSINESS MODEL
Bread Society LTD. business model consists of a multi-source
revenue model.
The Company derives its revenue from direct sales of products
(Direct Sales Model), combined with retail operations and online
order capability.
The Company anticipates deploying a marketing and advertising
campaign across a variety of market channels which supports the
following business model implementation.
RETAIL SALES MODEL
Bread Society LTD. uses the retailer model and sells baked good
products to the end consumer. In these instances, The
Company produces the baked goods that it sells to the general
public.
MANAGEMENT TEAM
JOHN WASHINGTON: GENERAL MANAGER / BAKER

Duties and Responsibilities

As the Company’s General Manager Mr. Washington’s role is
instrumental in forging the success of the Company. As General
Manager / Baker, his responsibility is to ensure high quality
products get produced and distributed while maintaining a working
environment and a profitable business.
Mr. Washington is a graduate of L’Ecole Culinary in Kansas City
and additionally spent 2 years in Paris at a local bakery. He is a
native of Chicago, Illinois and is married with two sons.
REQUIRED FUNDS AND FINANCIAL PLAN
Bread Society, LTD. plans to invest investment capital totaling one
hundred thousand dollars ($100,000) to fuel start-up and expansion
activities, launch and ongoing marketing efforts and ongoing
operations as identified in this plan. By investing primarily into
developing quality products and marketing and sales activities, the
Company expects to establish substantive marketshare within a six
(6) month timeframe, allowing for speed to market and preventing
additional competitors the opportunity to create counter solutions.
The Company is preparing for start-up efforts and currently strives
to be recognized as the local leader for bakery products. To this end,
the Company primarily focuses its efforts on acquiring clients,
creating and maintaining loyalty with existing clients and offering
beneficial products for our local market.
The Company is committed to using strict fiduciary principles,
commitment to our industry and our community and progressive
business philosophies to establish ourselves as a leading provider of
bakery products. Through calculated growth and expansion efforts,
the Company’s primary mission is to build a quality, customer base
while providing them with delicious bakery store products.
MISSION STATEMENT
The mission of Bread Society LTD. is to become a predominant
market leader in the bakery food products industry while
encouraging a friendly and fair work environment; all in a fiduciary
manner which supports our company, industry and community.
COMPANY HISTORY
Bread Society LTD. was conceived by Mr. Washington in 2013,
when he recognized that the Bosnian community in St. Louis is
willing to expend extra money to enjoy authentic Bosnian food. He
realized that baked goods were unavailable in the St. Louis market,
so he decided to focus on providing baked goods from its retail store
to the St. Louis market.
Mr. Washington also wanted to take advantage of rising demand
for delicious baked goods.
Mr. Washington positioned his company to take advantage of this
rapidly expanding market situation and provide bakery products to
clients with the following competitive advantages:
 Delicious, healthy, traditional, and innovative
bakery products for the local market
 Customers can place orders for custom bakery food
 Customers can register birthdays and anniversaries
and other important dates at the bakery’s web site and receive
email alerts and discounts
LOCATIONS AND FACILITIES

The planned location for Bread Society LTD.

ADDRESS:
Bread Society LTD
123 Buckingham Street
St. Louis, Missouri

PRODUCTS AND SERVICES

Bread Society LTD.’s primary product includes delicious bakery
goods sold to the general public from its retail store location which
represents the Company’s underlying philosophy of providing
bakery products which are consistently recognized as ultra-high
quality at competitive prices and which provide complete
satisfaction to the end user. Additionally, the Company strives to
provide its bakery products in a manner which reflects the
Company’s belief in the importance of customer satisfaction and
increasing sales through product improvements and the introduction
of additional products.
FEATURES
 Delicious and healthy bakery goods, menu, and
beverages for the local market
  Customers can order their bakery foods in the store
and eat there, order in the store and take out, or order online
and pick up their items at the bakery
 Customers can place orders for custom bakery food
 Customers can register birthdays and anniversaries
and other important dates at the web sites and then receive
email alerts and coupons (discounts)
PRODUCT LIST

An example of Bread Society’s decorated cupcakes

The Company’s bakery products include:
 Breads
 Brownies
 Cakes
 Cinnamon Rolls, Sweet Dough & Danish
 Cookies
 Croissants & Breads
 Cupcakes
 Donuts
 Extracts, Emulsions & Colors
 Fillings
 Frostings, Specialty Donut and Cake Icings
 Fruit Bit Concentrates
 Muffins
 Puff Dough
COMPETITORS
Bread Society LTD. provides a superior array of bakery foods and is
better positioned than the Company’s primary competitors to take
advantage of the increasing demands for bakery foods due to the
Company’s focus exclusively on high-quality bakery food products
production and distribution. In addition to current bakery products,
the Company is striving to continue its offering of unique and in
demand bakery products.
 Experience in retail store operations and
management
 Experience as a baker
 Inventory control experience
 People management experience
 Location as a Competitive Advantage
SOURCING AND FULFILLMENT
Bread Society LTD. will source its ingredients from Taura Natural,
a leading global manufacturer and supplier of quality ingredients for
baked goods. Bread Society has negotiated a workable contract with
Taura Natural, with the understanding that after 2 years of customer
loyalty, contracts can be renegotiated at a more favorable price.

OVERVIEW

Marketing for Bread Society’s products will focus on our high quality, Bosnian style baked
goods.
 

These are items we plan to focus on for our bakery, in order to make it
successful. It is only a partial list. Note: This list stems from our conversations
with experienced bakery owners, own our observation, and countless hours
of research.
 Become legal by setting up the legal business structure and get appropriate
identification number from the U.S. government.
 Get a local business license.
 See what high quality but used equipment is available to purchase.
 Get our bakery name in as many phone directories as possible.
 Meet with possible vendors and suppliers and speak with their customers.
Find out how things are handled “normally” as well as when there are
emergencies, such as when you have an equipment failure that impacts
production.
 Speak with the husband of our cousin who is a Human Resources vice
president and ask for his help so that we recruit, hire, and train properly.
 Crank up the advertising, including the many small items such as coupons
and flyers. Complete details on the referral program that will be used to get
new customers.
 Join the local neighborhood association.
 If funds permit, sponsor a table at neighborhood events.
 Try to get a free picture in the local newspaper that shows that
neighborhood association leaders are meeting there.

POSITIONING

Bread Society LTD. provides a superior array of bakery foods and is better
positioned than the Company’s primary competitors to take advantage of the
increasing demands for bakery foods due to the Company’s focus exclusively
on high-quality bakery food products production and distribution. In addition
to current bakery products, the Company is striving to continue its offering of
unique and in demand bakery products.

 Experience in retail store operations and management

 Experience as a baker
 Inventory control experience
 People management experience
 Location as a Competitive Advantage
 PRICING

Pricing for Bread Society LTD. products will be higher on average than similar
bakeries within the St. Louis area. This is because our pastries and bread
products will require special ingredients and less efficient cooking
methodology in order to create authentic Bosnian baked goods. As a result,
our products will not be competitive on a pricing level. However, we feel that
our goods are nonetheless priced fairly, and are affordable to the average St.
Louis resident. In addition, we feel that we can rely on customer loyalty from
the Bosnian community who will crave our authentic baked goods.

PROMOTION

Bread Society LTD. has designed a series of marketing and promotional

strategies designed to persuade new potential customers and ongoing
customers to acquire the Company’s bakery products and to:

 Create Awareness
 Boost Consumer/Customer Confidence for the Bread Society LTD. Products
 Leverage Needs and Emotions of People Who Like Bakery Foods
 Make our business and product name familiar to the public
 Create goodwill and build a favorable image
 Build relationships with our customers

PRESS ADVERTISING

Bread Society LTD. plans to implement this commonly used form of general
advertising, including local newspapers.

WEB SITE

Bread Society LTD. plans to use a visually appealing, easy to navigate, and
effective web site aimed at visitors and customers. It will contain the usual
type of information one would expect at a company’s web site. People can
sign up so that they receive special announcements. People can sign up and
register birthdays and anniversaries and then receive email notices
(reminders) and coupons (discounts). People can use the web site to place
orders, but they will pay in the store and/or pay online.

LOCAL SHOWS, FESTIVALS, AND EVENTS

Bread Society LTD. plans to use local shows, festivals, and events as a
method to advertise our name and introduce our bakery products to the
community.

FLYERS

Bread Society LTD. plans to use flyers to promote its bakery and products.

ONLINE ADVERTISING

The Company intends to use a variety of online advertising mediums in an

effort to reach the target audience. Generally considered inexpensive, Bread
Society LTD. can reach a wide audience for a small fraction of traditional
advertising costs and can appeal to consumers in a medium that can bring
results quickly.

Online marketing efforts also provide The Company with the advantage of
measuring market statistics easily and inexpensively; almost all aspects of an
Internet marketing campaign can be traced, measured, and tested, in many
cases through the use of an ad serverand through the use of a variety of
methods, such as pay per impression, pay per click, pay per play, and pay per
action.  In doing so The Company can determine which messages are more
appealing and the results of the Company’s campaigns can be measured and
tracked immediately.

SOCIAL NETWORK ADVERTISING

Bread Society LTD. acknowledges the power, ease and efficiency that social
network advertising (e.g. Twitter, FaceBook) provides the Company. Through
display advertising and messaging distributed through individual and
commercial social networks, advertising can take the form of direct display
 ad buys, self-serve advertising through internal ad networks and ad serving
on social network applications through special social network application
advertising networks.

DISTRIBUTION

The Company’s products will be distributed from our storefront, with plans
to cater events in Y2 or Y3 depending on finances.

MILESTONES

 Y1 M1: Open storefront

 Y2 M12: Total sales reaches nearly ~$300,000 annually
 Y3 M12: Begin planning for a second location

SWOT ANALYSIS

The SWOT analysis provides concise information on the strengths and

weaknesses about the Company as well as the opportunities and threats it
faces. This information is important in crafting the marketing strategies of
Bread Society LTD. as they give direction to which the strategies must be
focused.

STRENGTHS

 Product differentiation from our competitors.

 Distribution distinctions. We offer catering to businesses and homes.
 We are located in the Financial District, near many different businesses,
giving us easy access to our target market.
 Bread Society LTD. is associated with green measures. We intend for every
aspect of our business to partake in conservancy measures.

WEAKNESSES

 We have not yet established our brand name, or a customer base.

 We do not yet have any other locations besides the one in the Financial
District.

OPPORTUNITIES

 Ability to serve different groups. We attract a variety of consumers, which

yields opportunities for larger profits.
 Opportunity for expansion of product lines. We offer a variety of products,
from regular baked goods to those specially made (low-sugar, vegan,
vegetarian, etc.).
 Potential for growth. We are a small business as of now, and this gives us the
opportunity to expand into a chain in the future.

THREATS

 If the economy continues in its current state, our prices may be considered
too high and consumers may bypass healthy choices for less expensive ones.
 Lower prices of competitors. The quality of their products is not up to par to
ours, but consumer choices are often driven by price and not quality.
 Cost of production. Our green measures give us a positive image, but they
are costly. If these increase, it might pose a threat.
 In the event of a severe economic decline, the demand for bakery products
may decrease, which may cause the revenue generated by the business to
level off or decline. However, the Company’s high quality products combined
with its traditional and online advertising programs have proven to be very
popular and should support consistent growth and relieve unwarranted
changes in the macro environment.

Not sure how a SWOT analysis can benefit your business? Read our article
on How to Perform a SWOT Analysis.

COMPETITIVE EDGE
 Bread Society’s high quality baked good products are key to retaining a competitive advantage.
 

Bread Society LTD. is positioned to experience rapid growth and outperform

in a challenging marketplace for the following reasons:

 Products: The Company’s products are included in a burgeoning and rapidly

expanding market

 Management: The Company’s senior management has insight, creativity and

experience which are relevant and transferable within operations, marketing
and finance in the retail bakery industry.

 Marketing: The Company has created a marketing plan to position Bread

Society LTD. as a superior baked goods company using aggressive marketing
strategies combined with unique marketing skills and experiences.

Moreover, Bread Society LTD. provides a superior array of bakery foods and
is better positioned than the Company’s primary competitors to take
advantage of the increasing demands for bakery foods due to the Company’s
focus exclusively on high-quality bakery food products production and
distribution. In addition to current bakery products, the Company is striving
to continue its offering of unique and in demand bakery products.

 Experience in retail store operations and management

 Experience as a baker
 Inventory control experience
 People management experience
 Location as a Competitive Advantage

KEY ADVANTAGES

 Bread Society LTD. has designed its personnel plan with cost efficiency and
flexibility as factors. An emphasis is placed on sales and marketing staffing
and strategies to enhance revenue growth.

 The Company offers baked goods which are in high demand in the local
market place.

 The Company’s management has designed its strategic growth and operating
plans to be scalable which also provides for enhanced revenue growth.

STRATEGIC EXPANSION

The Company expects after the initial launch, revenues will aggressively
expand during the following 1-3 years of operation. The Company intends to
implement a diverse marketing strategy throughout the identified target
market segments (geographic, psychographic, behavioral) and expanding to
a variety of other markets effectively targeting a new and existing customer
base.

The Company anticipates using the following expansion strategies to provide

for growth and increased revenues.

BOOTSTRAP EXPANSION

The Company anticipates utilizing a Bootstrap Expansion model,

experiencing growth from its own profits.

The primary advantage to bootstrapping for Bread Society LTD. is the

flexibility it provides in directing the initial growth of the Company. Once The
Company is profitable enough to create a capital pool to reinvest and has
clear indicators which areas provide the highest chance of successful growth;
a bootstrap plan can be formed on actual, tangible results, which is the best
information to go on when determining which ways to expand.

The core requirement of the Company’s bootstrap expansion, is a willingness

on the part of management and share owners to reinvest excess capital.

SALES FORECAST

SALES FORECAST TABLE

Year 1 Year 2 Year 3

Unit Sales  
Baked Goods 22,597 33,900 44,064
Sweets and Pastries 13,133 19,692 25,608
Catering 75 120 156
Price Per Unit  
Baked Goods $5 $5 $5
Sweets and Pastries $4 $4 $4
Catering $380 $380 $380
Sales  
Baked Goods $112,985 $169,500 $220,320
Sweets and Pastries $52,532 $78,768 $102,432
Catering $28,500 $45,600 $59,280
Total Sales $194,017 $293,868 $382,032
Direct Cost Per
 
Unit
Baked Goods $1 $1 $1
Sweets and Pastries $1 $1 $1
Catering $125 $125 $125
Direct Cost  
Baked Goods $37,285 $55,935 $72,705
Sweets and Pastries $17,335 $25,993 $33,802
Catering $9,405 $15,048 $19,562
Total Direct Cost $64,025 $96,976 $126,070
Gross Profit $129,991 $196,891 $255,961
Gross Profit % 67% 67% 67%
SALES BY MONTH

PERSONNEL PLAN

PERSONNEL TABLE

Year 1 Year 2 Year 3

General Manager / Baking
$40,000 $42,000 $44,000
Manager
Baking Assistant $25,000 $26,250 $27,500
Sales Support $0 $25,000 $26,250
Sales Support $0 $0 $25,000
Administrator $25,000 $26,250 $27,500
Total $90,000 $119,500 $150,250
BUDGET

BUDGET TABLE

Year 1 Year 2 Year 3

Expenses  
Salary $90,000 $119,500 $150,250
Employee Related Expenses $13,500 $17,925 $22,537
Utilities $1,500 $1,500 $1,500
Insurance $650 $650 $650
Legal and Accounting $5,000 $5,000 $5,000
General and Administrative $1,600 $1,600 $1,600
Loss and Breakage $1,600 $1,600 $1,600
Miscellaneous $1,000 $1,000 $1,000
Rent $2,400 $2,400 $2,400
Total Expenses $117,250 $151,175 $186,537
Long-term Assets  
Total Long-term Assets $0 $0 $0
Other Current Assets  
Total Other Current Assets $0 $0 $0
Dividends and Distributions  
Total Dividends and
$0 $0 $0
Distributions
EXPENSES BY MONTH

CASH FLOW ASSUMPTIONS

CASH FLOW ASSUMPTIONS TABLE

Cash Inflow  
% of Sales on Credit 10%
30 days
Cash Outflow  
% of Purchases on Credit 0%
Avg Payment Period (Days) 0 days
Inventory  
Months to Keep on Hand
Minimum Inventory
Purchase
LOANS AND INVESTMENTS

LOANS AND INVESTMENTS TABLE

Year 1 Year 2 Year 3

Washington  $7,500 $0 $0
Total Amount
$7,500 $0 $0
Received
STARTING BALANCES

Sales  
Sales Last Month $0
Sales 2 Months Ago $0
Sales 3 Months Ago $0
Sales 4 Months Ago $0
Sales 5 Months Ago $0
Sales 6 Months Ago $0
Assets  
Cash $0
Accounts Receivable $0
Inventory $0
Other Current Assets $0
Long-Term Assets $0
Accumulated
$0
Depreciation
Liabilities  
Accounts Payable $0
Sales Taxes Payable $0
Capital  
Paid-in Capital $0
Retained Earnings $0
 
PROFIT AND LOSS STATEMENT TABLE

Year 1 Year 2 Year 3

Revenue $194,017 $293,868 $382,032
Direct Cost $64,025 $96,976 $126,070
Gross Profit $129,991 $196,891 $255,961
Gross Profit % 67% 67% 67%
Operating Expenses  
Salary $90,000 $119,500 $150,250
Employee Related Expenses $13,500 $17,925 $22,537
Utilities $1,500 $1,500 $1,500
Insurance Expense $650 $650 $650
Professional Fees $5,000 $5,000 $5,000
Office Supplies $1,600 $1,600 $1,600
Repairs and Maintenance $1,600 $1,600 $1,600
Miscellaneous $1,000 $1,000 $1,000
Rent Expense $2,400 $2,400 $2,400
Expensed Portion of Other Current
$0 $0 $0
Assets
Depreciation and Amortization $0 $0 $0
Total Operating Expenses $117,250 $151,175 $186,537
Operating Income $12,741 $45,716 $69,423
Other Expenses (& Other Income)  
Loss (or Gain) on Sale of Asset $0 $0 $0
Interest Expense $0 $0 $0
Total Other Expenses (& Other
$0 $0 $0
Income)
Income Before Income Tax $12,741 $45,716 $69,423
Income Taxes $2,548 $9,143 $13,884
Net Income $10,193 $36,573 $55,539
Net Income / Sales 5% 12% 15%
GROSS MARGIN BY YEAR

NET PROFIT (OR LOSS) BY YEAR

BALANCE SHEET TABLE

Starting
As of Period’s End Year 1 Year 2 Year 3
Balances
Cash $0 $15,611 $51,817 $106,621
Accounts Receivable $0 $2,081 $2,448 $3,183
Inventory $0 $0 $0 $0
Other Current Assets $0 $0 $0 $0
Total Current Assets $0 $17,693 $54,266 $109,805
Long-Term Assets $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0
Total Long Term Assets $0 $0 $0 $0
TOTAL ASSETS $0 $17,693 $54,266 $109,805
Accounts Payable $0 $0 $0 $0
Sales Taxes Payable $0 $0 $0 $0
Short-Term Debt $0 $0 $0 $0
Total Current Liabilities $0 $0 $0 $0
Long-Term Debt $0 $0 $0 $0
TOTAL LIABILITIES $0 $0 $0 $0
Paid-in Capital $0 $7,500 $7,500 $7,500
Retained Earnings $0 $0 $10,193 $46,766
Profit and Loss – Current
$0 $10,193 $36,573 $55,539
Period
TOTAL OWNER’S EQUITY $0 $17,693 $54,266 $109,805
TOTAL LIABILITIES & EQUITY $0 $17,693 $54,266 $109,805
CASH FLOW STATEMENT TABLE

Year 1 Year 2 Year 3

OPERATING ACTIVITIES  
Net Income $10,193 $36,573 $55,539
Depreciation and Amortization $0 $0 $0
Gain or Loss on Disposal of Asset $0 $0 $0
Change in Accounts Receivable $(2,081) $(367) $(734)
Change in Inventory $0 $0 $0
Change in Accounts Payable $0 $0 $0
Change in Sales Taxes Payable $0 $0 $0
Change in Other Current Assets $0 $0 $0
Net Cash from Operating Activities $8,111 $36,205 $54,804
INVESTING & FINANCING ACTIVITIES  
Long-Term Assets Purchased or Sold $0 $0 $0
Investments and Contributions $7,500 $0 $0
Received
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $0 $0 $0
Dividends and Distributions $0 $0 $0
Net Cash from Investing & Financing $7,500 $0 $0
Cash at Beginning of Period $0 $15,611 $51,817
Net Change in Cash $15,611 $36,205 $54,804
Cash at End of Period $15,611 $51,817 $106,621
CASH FLOW BY MONTH

CASH FLOW BY YEAR

FINANCIAL RATIO TABLE

Projected
As of Period’s End Year 1 Year 2 Year 3
Liquidity Analysis  
Net working capital $17,693 $54,266 $109,806
Current ratio 0% 0% 0%
Quick ratio 0% 0% 0%
 
Profitability Analysis  
Gross profit margin 67% 67% 67%
Operating profit
7% 16% 18%
margin
Net profit margin 5% 12% 15%
 
Debt Ratios  
Debt to assets 0% 0% 0%
Debt to equity 0% 0% 0%
 
Investment
 
Measures
ROI 58% 67% 51%
 
MARKET OVERVIEW

This summary provides a review of the attractiveness of the bakery industry

market and better analyzes and provides an understanding of the evolving
opportunities and threats as they relate to the strengths and weaknesses
of Bread Society LTD.

The bakery market in St. Louis appears to follow many of the same United
States trends. Demand can be high for baked good because so many people
have no time to bake at home so therefore the convenience factor impacts
growth and sustainability of this market segment. Stores that demonstrate
product innovation often become popular not only in their neighborhood,
but their name becomes known throughout the area. Some people seem to
hunger for white bread products – people even joke about this while eating
breads and pastries.   And on the other side of the coin, there are people
who do not eat white flour products for health reasons.

In the greater St. Louis area, there are more than 30 bakeries, excluding
bakeries inside grocery stores.

MARKET NEEDS

Our plan is to have a bakery that becomes a magnet for Bosnians.

According to published sources there are an estimated 70,000 Bosnians

living in the St. Louis area. These large numbers stem from the fact that
 Bosnians came to St. Louis after the 1992 Bosnian War. According to one
source, this is the largest population of Bosnians in the United States.

Bosnians are well integrated throughout St. Louis, in business and commerce
and so forth.

There is a neighborhood south of St. Louis called “Little Bosnia” because of

the concentration of Bosnians.

Our plan is to open in one of three areas in “Little Bosnia.”

 Bevo Mill (1.37 square miles, with about 12,000 people)

 Affton (4.4 square miles, with about 20,000 people) 

Based on a survey we conducted, the bakery that we envision would be well

received in their Bevo Mill or Affton, both of which neighbor on each other.

MARKET TRENDS

As we grow, we may pursue a strategy that other bakery companies have

used, which is to emphasize foods for immediate eating, such as soups,
salads, and sandwiches. In other words, as the economy improves and as
“convenience” continues to be important to consumers, selling items in the
bakery in addition to “baked goods” seems to be a smart business strategy.

Another trend we will keep our eye on is the trend of eating healthier. We will
determine as we grow exactly how to address or not address this trend. We
could address by having Bosnian baked goods that are adapted to healthier
ingredients and promote these items for health conscious patrons. This
trend and our adapting to the trend could include offering gluten-free
products that would appeal to a percentage of customers. Overall, we will
still be a bakery with many, many traditional items, but we may add items for
our health-conscious customers.
 MARKET GROWTH

Currently, the economic market condition in St. Louis, Missouri is in late

stage recession which has impacted sales growth in recent quarters within
the bakery products industry. Most economists are now reporting analysis is
pointing to a steady recovery period with a rapidly expanding base of sales.

KEY CUSTOMERS

 Geographic: Bread Society’s target customers are individuals and businesses

located in the following geographic locations:
o LouisDemographic: Demographics define what buyers commonly need.
Market segments from a demographics point of view, include:
 Age – all ages
 Gender – female and male
 Income Level – all income levels

 Psychographics: The typical consumer to be targeted by the bakery industry

has these characteristics:
o Interests – eating, socialization
o Activities – eat at home, family and personal eating, celebrations,
o Values – eating healthy (for some), give yourself and others a little pleasure

 Behavior: Bread Society expects the target market consumer to rank above

the average individual for:
o Usage Patterns – a range of irregular to regular
o Price Sensitivity – higher prices will be a barrier to some l, other customers
will pay for what they want
o Brand Loyalty – if customer is happy, they will be brand loyal and will tell
their friends