Porter’s Five Makes analysis is advantageous when planning to understand the competitive environment facing a backery industry. It entails looking at interior competition, obstacles to entry, the profit-appropriating power of the two purchasers and retailers, as well as substitutes to the goods produced. Placed on the food handling business industry it shows a typical net income that commonly does not cover the cost of capital due to low barriers to entry, easy production and ease of entry to ingredients. The Threat of Substitutes and Porter’s Five Forces

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Inner Rivalry

There are plenty of players in the bakery industry in Kuantan, Kemaman and Pekan.

The industry can be characterized by a large number of small bakeries, but there has been a recent craze towards loan consolidation and economies of range. Businesses compete on value, quality, difference and interactions with important suppliers.

Limitations to Entrance

Barriers to entry in this industry will be low. Financial systems of range are useful, but are not required for market success. As a result, small businesses can enter the market with a comparatively small amount of capital.

The 2 main determinants of a fresh company’s achievement is the leaders’ ability to get sufficient syndication channels to protect operating costs and their ability to build up company recognition and loyalty. Division channels commonly involve stores, such as grocery stores and supermarkets, and they may be more easily bought if the food handling business has an proven brand or maybe the marketing assets to create 1.


Potential buyers of the food handling business industry’s products, such as supermarkets, grocery stores, hotel chains and convenience stores, can appropriate much of the industry’s revenue due to the large number of small bakeries that are almost all vying to find outlets for their products. Consequently, buyers have the ability to command affordable prices and volume level discounts. This will cause the gains are little because they need to keep placing the product together with competitors from your same industry.


Suppliers do not have very much negotiating electrical power in the bakery business as a result of well developed markets for their companies the commoditized nature of what they are offering. Bakeries could be affected by cost swings with the raw inputs, but the improvements are a response to global supply and require determinants instead of suppliers’ discussing power. The majority of suppliers of bakery merchandise on the East Coast is more expensive when compared to large metropolitan areas such as Kuala Lumpur, Melaka and Ipoh. This causes the price of the cake to be expensive because of higher natural material costs.


Many substitutes can be found for bakery products. Lunch break cereals, rice and potatoes are all practical alternatives and individuals may also make each of the baked goods they really want at home. Bakeries rely upon cost and convenience to keep individuals switching to a substitute or baking the actual need at your home.


4. you Market Segmentation

Marketing Segmentation is the process of analyzing and classifying customers in a given market to create smaller, more precise goal markets. FadRizals Cakes provides identified their overall market to include people who have a higher level of discretionary income to indulge in and appreciate the delightful creativity and flair in order to extraordinary cakes that not only taste great but great at the same time. Geographically, their industry will start within the Kuantan place and broaden to adjacent states within the next 3 years.

Psychographically, their focus involves figuring out people who enjoy art of cake design and style and love the luxury taste of the products. Their trendy company highlights its marketing efforts towards the Baby Boomers (those born 1946-64), Generation By (born 1964-74), Generation Con (born 1975-95) and Era Z (born 2000-2021). Between potential customers recognized to be a element of their target market we have discovered special events that will involve those customers such as:

• Anniversary get-togethers

• Baby tub areas

• Birthday get-togethers

• Bon Voyage

• Bridal tub areas

• Congratulatory get-togethers

• Graduations

• Holiday seasons i. electronic., Hari Banda, Chinese Beginning of the year, Fathers’ Working day, Mothers’ Day, Valentine’s Day, and so forth

4. two Target Market Part Strategy

Target Market Section Strategy is the identification of target marketplaces and willpower of marketing combine choices that focus on these markets. FadRizal Cakes features identified the above listed market segments so that they can be adaptable in order to people, as well as the occasions that they enjoy partying.

4. a few Marketing Mixture

1 . Product: Their particular product is a high-quality, unique that is extremely adaptable to both special events. In addition , our company will give a percentage of its net profits to The Conservation Finance to help support our world-wide environmental goals.

2 . Price: The price of the cupcakes can be $4. 00 each consisting of the product, the seeds and delivery of product to consumers within just Connecticut. 3. (Place): Tranquility of Dessert will industry its products’ adaptability and its particular utility flexibility in a place of different online and offline approaches including:

[Online]…. electric press releases, site, e-mail marketing campaign, web video ad, message boards, online catalogues, etc .

[Offline]…press release, leaflets, menus, normal mail, television spot, radio advertising, business cards.

4. (Promotion): Our current promotional programs include but are not restricted to:

• Guerilla posting to blogs adding company communication with unsecured personal file

• Make online and offline press releases to expose new business

• Car radio commercials

• TELEVISION SET featured story on Good Morning ConnecticutPeace of Cake, LLC 1


4. Promoting Mix (Promotion…. continued)

• Displaying products at CT bridal shows

• Facebook, Facebook, Blogger, Delicious, Digg, GoogleBuzz, Linked In, Reddit, StumbleUpon

• Ads on Google, and sites like WedAlert. com

• Voucher offers, both online and offline

• Monthly premiums, giveaways, incentives, contests

• Selections (offline)

• Journal and paper ads

• Nearby mall kiosks

• Normal mail

4. 4 Market Trends/Growth

Through the entire last few years, the market for cookies has greatly expanded. Will no longer are they only a fun birthday celebration treat that may be purchased at any grocery store or bakery. They have expanded to turn into a multi-million dollars industry with specialty models to adjust to any occasion. Serenity of Pastry joins this specialty industry with something new and different to supply its consumers. Not only is definitely our product adaptable to a wide variety of occasions and niche events, but we expect to grow tremendously over the next few years due to each of our adaptability to our clients’ diet needs.

four. 5 Competition Research

In a competitive market, you will discover already rate of interest cap that have a firm hold available in the market place. One among our best competitors is definitely Nora Cupcake Company, located nearby in Middletown, COMPUTERTOMOGRAFIE. They have a recognised Facebook webpage with several positive review postings. Thankfully, their customer base is local to only Middletown. They do make a vegan and gluten totally free cupcake, but only help to make one of each. There is no delivery and you are unable to order on the web. Another competitor is Paliza Cupcakes. They as well are primarily based out of Connecticut, tend to be less well known than Nora Cupcake Company. This makes these people less of the threat when compared with our Company and its particular strong marketing strategies. Peace of Cake, LLC 1


Neither company gives nor has any unique deals intended for quantity purchases. The third competitor is The Cupcake Truck located and providing in the Better New Destination area. They deliver ONLY in Fresh Haven and are also available on a small basis depending on the truck prevent schedule. All their cupcake offerings are restricted to daily special offers. Our 5th biggest competitor is Nice Maria’s Bakery in Waterbury. Their cupcakes go for $5. 50 every and there is a 2 time advanced detect for individual cakes and multiple cupcake instructions up to 2 dozen. They have limited hours and do not deliver. Online buying is unavailable. Frosted Premium located in Southington is a great upscale food handling business that caters to high-end customers. They contact themselves a premier cupcake boutique and carry a wide variety of specialty cupcakes similar to Serenity of Wedding cake.

Their rates are a tad higher than ours, but the product is comparable. Orders can be placed on-line and they deliver, but simply to the Greater Hartford area. However , they do not cater to those with particular dietary needs like vegetarian, gluten-free, or perhaps sugar free. Frosted Premium seems to be each of our biggest competition, however they will be limited in their delivery place as well as their adaptability to support those with unique dietary needs. It is important to also be aware that they are Not really a nut-free food handling business, whereas Peace of Cake differentiates alone by having a nut-free preparation kitchen area. This important factor can help us to adapt to those customers who have nut allergies.

four. 6 Sustainable Competitive Positive aspects

Based upon our main competition mentioned previously, Peace of Cake truly has a number of competitive advantages which include VERSATILITY:

1 . Our price structure continues to be competitive

2 . Our selection of cupcake designs is more diverse

3. Were adaptable to our customers’ diet needs giving

a) Vegan cookies

b) Gluten-free cupcakes

c) Sugar-free cupcakes

d) Nut totally free cupcakes

4. We are able to adapt virtually any cupcake design and style to any specific occasion

5. We all deliver

6. Our cupcakes feature seeds to nourish the planet earth

six. In an effort to help save the environment a portion of our net profits see a Conservation Pay for.


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