Introduction To Business And Canadian Product/Service - Bakeology

Discuss about the Introduction to Business and Canadian product or Canadian service. The innovation in the bakery market is considered an important driver of sales volume. The increase in the demand of dietary product is found as an important innovation trend in the bakery market of Canada. 

Overview of the Bakery Industry in Canada

In Canada, bakery industry constitutes a total sales values of $8.6 billion i.e. 1.2  million tonnes in the year 2011. This segment is considered to be the second largest segment in the category of packaged food products and it represents 17.6% of the total sales volume. The innovation in the bakery market is considered an important driver of sales volume. The increase in the demand of dietary product is found as an important innovation trend in the bakery market of Canada. This paper will highlight a business plan for Bakeology and the associated internal as well as internal factors that play an important role in the expansion of this business firm (Fogliasso, 2016).

Business concept – An exclusive bakery 

Name – Bakeology

In Canada Bakery market consists of the 8.6 Billion dollar value sales in 2016 as registered. Therefore, it has grown rapidly compared to other countries (Consumer Trends - Bakery Products in Canada - Agriculture and Agri-Food Canada (AAFC), 2018). It also includes frozen bakery market. The growth was stagnant during the time 2006 – 2011.The products that were sold during this time, were gluttonised. But with the awareness of dietary food needs in the customers, it has become imperative that the companies starts considering that in their main business model. Though there had been major innovation in the food products, low fat as well as gluten free products were not produced. The whole grain products and environmentally packages and natural products were avoided due to more sales return in the frozen and baked goods.

Therefore, Bakeology will concentrate on the fresh baked, gluten free products with all natural ingredients, keeping the customers of healthy and wealthy. It will also diversify among the baked goods with time. At the initial stages it will sell frozen bakery and desserts of all kinds, sourced directly from the home baker’s of Canada. It will also hire chefs of international reputation and train them about the main motive of Bakeology (Sarsangi et al., 2015).

Main motive of the work would be to concentrate in the environment friendly packaging which will help in increasing the social image of the Bakery(Bryman& Bell, 2015). Marketing campaign for promotion will be held in the company utilising the social media as well as other means of promotion. The purpose of the media would be to promote as well as get feedback from the target customers. The major differences will be shown to the customers. The prospective customers will include the all ages and lifestyle of people. The health conscious as well as sweet lovers of Canada. All sorts of sweet tooth includes the demography of the customer segment. Online and counter service will be available(Nguyen, 2015).

The pricing of the baked goods will consider the competitive pricing. Canadian bakery industry have a larger market as well as giant competitors like Loblaw’s, Sobeys and Kellogs. In the initial stages promotional pricing will also be used. Later stages of product life cycle, the competitive pricing and value pricing will be used (Radnejad &Vredenburg, 2015).

Overview and Description of the Industry

Bakeology's Business Plan

The bakery market in Canada includes desserts and frozen bakery products with a registered sale of $8.6 billion in 2011. The total sales volume of the bakery industry is also considered to be 1.2 million tonnes according to the consumer trends of bakery products in Canada. The bakery segment is considered to be the second largest segment among the total packaged food market in entire Canada. The proportional sales of this category has has been declining gradually with the passage of time compared to the other sectors between the time period 2006-2011. It can be said that the Canadian market has tried to reach a fair value of growth and this growth was considered to be stagnant and constant. In some categories such as biscuits, this industry has experienced negative  growth volume, but it has continued to increase after a certain time span i.e, after 2011-2016.  According to the report to EuroMonitor (2011), the volume of growth will increase after the increase in the sales volume of high value bakery products that offers nutritional and other health benefits to the customers. The innovation in the bakery market has become an important driver in boosting up the sales of the company for different dietary products. There was also increasing number of new products containing flour and other items that are associated with flour. Despite the decrease in the volume of consumption as well as value of the products, there were innovation and introduction within the frozen market of Canada. Majority of the new frozen desserts and bakery products were pastries, cakes and other sweet products. The major leading companies in Canadian market must have suitable and established sub-categories that will try to boost up the sales and growth of the company. The bakery market in Canada is considered to be highly fragmented with many players and products. The top companies represented only 28% of the launches and the other 938 companies introduced more than 3397 new products during the period 2006-2012. The cookies and the different categories of sweet biscuits are the most active launches in these product categories. The product claim for the varied bakery products will focus on natural ingredients, dietary suitability as well as no reduced elements. For most of the bakery product categories, the common favour was generally plain or unflavoured. On the other hand, in the category of sweet products i.e. sweet biscuits, pastries , cakes and frozen desserts  are considered to be the most popular flavour. These products also use a blend of different categories of flour and the most common type of flour may be considered as wheat flour. There are many new bakery products that needs to be reformulated or developed to increase the nutritional value using flour, grain and ingredients that has been introduced in the market recently (Fogliasso, 2016).

Integrated Model of a Successful Business

It is important to consider the most important things before starting up a new business entity or a successful business venture. Similar is the case with Bakeology. The top ten things that Bakeology must consider before establishing itself into a successful business entity are:

1. Strong Business Plan

Top Ten Things to Consider Before Starting a Successful Business

 A successful business owner must have a strong business plan and it is vital to search everything over the internet. Therefore, it is important to have a proper document that will contain the aims and objectives of the business as well as the milestones and goals so atht it will be easier to track the progress of the business.

2. Marketing Strategy

It can be said that a good marketing strategy is considered the backbone of a business and this will help in the success as well as failure of the business entity. In order to create a better and strong marketing plan, it is important to consider the indirect as well as the direct competitors of the particular company. Moreover, it is also vital to choose which type of traditional or contemporary advertising will help the company to reach to the targeted customer base of the company.

3. Customer Engagement and Focus

It is important to know the clients and customers in a better way and then invest accordingly in the business. When it comes in investment in a  new product or service, it is better to get a better idea of the targeted customer base and then invest accordingly in the market. The customers are also considered to be at the heart of every business decision and their engagement in the form of payments or other methods are considered vital (Kyshenko & Pankov, 2016).

4. Cash management

There might be problems with the cash flow and this is considered to be one of the most common reason of every business. Without cash, it is not possible to invest in the stocks and thus put the marketing plan into practice, invest in any other equipments and pay proper wages to the employers. Moreover, it is also important to manage the business plan wisely keeping a close watch on the income and expenditure of the company.

5. Management of finances

It is vital to effectively manage the finances of a company and this is considered to be a critical idea. Moreover, forecasting the cash flow as well as sales of the company will help in proper monitoring of profit and loss. It is also vital to declare the income to the particular tax office of a country. Further, a sound management skill will help in running the business profitably and therefore protect the financial investment.

6. Communication and negotiation

It is important to communicate effectively with the suppliers and the potential investors, employees as well as customers. A proper and written verbal communication skill will help to build a better and good working relationship. Therefore, it can be said that communication is important for the successful working of the business entity.

7. Learn from competition

The owners who wants to establish or run a successful business must learn from their competitors. There are several important things that needs to be considered and thus gained from the competitors. Although setting the correct price is considered to be difficult, it gives a quick and better snapshot of how much the businesses will charge for the same category of products or services. Moreover, the business entities must also know how they will demonstrate their products and services in the market. The customers can also share their good and bad experiences in different search engines and this will help to get a better idea to start a business entity (Hamilton & Webster, 2015).

8. Operation Plan

This plan is considered to be the most crucial part of running a successful business. It includes the entire operational processes of the business as well as management of the equipments as well as finances, list of equipments that will be used, scheduling of activities as well as the entire layout of the business. It also gives an idea of the processes that is involved in the business as well as the management of business quality.  

9. Risk Analysis

It can be said that risk are considered as a natural part of the entrepreneurial activity. This area will help in identification of the risk that is associated with the business activity as well as it will help in the dealing with the different contingencies in a much better way. The major risks that are involved includes the risk associated with industry, operational risk, technological risk, reputational risk as well as personal risk of the organisation.

10. Understanding the queries of the customers

The main aim of the organisation is to satisfy the needs of the customers as well as solve their queries and problems accordingly. It is vital for Bakeology to understand the concern of the customers and deliver them quality service. This will also help the company to improve the quality of product and deliver proper service. A negative criticism will affect the organisation as well as it will demotivate the customers to purchase the required product from their store accordingly (Farage et al., 2017).

PESTI Analysis

The continuous global economic recession has affected the macroeconomic environment where Bakeology will operate in. These recession has affected the purchasing power of the customers. The market research indicates that Bakeology can insist the customers to buy quality products from there store at a much lower price. The company must also try to take further steps to expand their market and this is possible through the expanding the sources of raw materials. It is also the responsibility of the company to adhere to the environmental as well as social norms. The company must also try to give importance to fair trading practices. The political factor can also possess risk and major loss to the organisation. Therefore, it is important to understand that the political factor has the power in changing the results of the organisation. This can also affect the local as well as federal level. Bakeology must be able to deal with these changes at the international as well as local level and therefore understand the outcomes of these policies (Quiroga Souki, Costa Reis & Cunha Moura, 2016).

The changes in the policies of the government can be related to social, legal as well as economic issues. It can be said that the political environment of Canada can be referred to as the least predictable element in the entire business environment. The political system in different areas of Canada might vary and the impact of these factors also changes accordingly in different industries of Canada. The intervention of the government in the political economy of Canada is very high and it is the responsibility to the government to encourage the entrepreneurs to set up new business enterprises and thus help in the expansion of the global business environment. The increasing number of international trade agreements and lower level of trade protection will also affect the bakery industry. The resulting regulation and the evolving environmental status will also pose a significant impact on the industry. The new international trade agreement will help Bakeology to export  more processed products to the developed as well as developing country. There will also be an offset in the import of raw materials from other countries. It is also vital to explore the different opportunities and the challenges that arises from imports as well as exports. This will vary according to the different sectors of the economy and it is important to understand the global market accordingly. There will be regulatory pressure within the home market and this is also considered to be one of the major factor affecting Bakeology. Moreover, political awareness and activism in Canada is also considered as an essential factor in these case. The other important factors are employment laws and the tax policies of Canada (Cornelli, 2016).

It can be said that lack of political stability in a country will also affect the operation of Bakeology. This is true in case of all industries and the companies that operates internationally in different location. The political risk insurance plays an important role in these case. The companies that operates internationally must follow these policy and therefore reduce their risk exposure. The stability of a political system will affect the local market and it is the responsibility of the government to view that this business organization must be considered as an important vehicle of social reform. The government must also pass the legislation and thus this will impact the relationship between the business organisation as well as the suppliers, customers and between different companies. There must also be increase or decrease in the taxation policy and this will lay direct impact on Bakeology as well as affect the monetary transaction that is associated with this business. Government intervention as well as direct intervention will also be associated in such a way so that it will affect the demand situation of a particular country (Fitriana, Saragih & Luthfiana, 2017).

The levelling of growth rate in the developed country as well as the increasing growth rate in the country will have some effect. This can be couple up with the increasing level of investment and the production infrastructure in many developing as well as developed countries. Therefore, it can be said that this will put more pressure on the Canadian food companies and lead to closure of many industries. It can be said that Canadian economy is the 11^th largest economy and the free trade agreement in this country will help in the creation of more marketing opportunities and thus help in the establishment of new business entity. Moreover, the government of Canada has tried to revise the negative export trend from 4.5% to 2.5% and this can be stated because of major business transactions as well as boosting the business. Moreover, many big establishments are collaborating with the bakery industry and thus this is the responsibility of the bakery industries to maintain proper cash flow in the business.  The baking industry is Canada is highly competitive because most of the bakeries are small or medium producers and thus they try to serve a fragmented market. The competition among the key players in this industry depends upon quality, price, differentiation as well as nutritional value. There are many major players in these industry and each of them are trying to compete with the small and the medium sized bakeries (Nguyen, 2015).

The bakery industry is also considered to be homogenous and it can be said that product differentiation is important to separate these from the competitors. The marketing initiatives must try to increase the demand of these industries and brand recognition is another key factor that affects this industry. The consumers must also try to pay more for the well-recognised brand and if Bakeology will produce quality products, the consumers will be ready to pay higher prices for the product. It can be said that this industry has also experienced a slow growth in the last few years and there might be changes in the economic downturn as well as consumer preferences (Wang & Zhou, 2017).

The sales and annual growth rate also affects the economic conditions and thus these will be rising with the passage of time. There are certain big companies that have grown exponentially in the last few years and thus were only possible because of mergers and acquisitions.  It can be said that more than 99% of the households consume the baked goods and this will lead to diversified as well as giant customer base of the company. This will also make the recession come to an end and the people of Canada will be ready to spend more and purchase the baked goods from the supermarkets and other outlets that is opposed to the consumption of baked goods. The companies that are associated in these industry has experienced the challenge of keeping with the constant changing health trend of the consumers. Moreover, the consumers have become health conscious and the preference value of their nutrition level are constantly changing. These pressure has led the companies to increase product differentiation such as low carbohydrate, low calorie as well as the whole grain products. The firms that are associated in this bakery industry are trying to use vertical integration policies. This is because the producers are trying to seek help from other suppliers for the creation of sugar as well as dairy products and they do not adopt backward integration. The commercial bakeries has also adopted extensive distribution network and they do not try to sell the product directly to the final consumers. Therefore, they try to distribute these product the supermarkets, food stores and other convenience stores and this will help in the growth and increase of revenue. The access to these downstream market is important for the success of large enterprises or firms in this particular industry. It can be said that vertical integration has many drawbacks as well as benefits for this bakery industry. This will also help in improving the supply chain framework for the large as well as small organisation. Moreover, the supply and the demand conditions have also tried to synchronize with the vertical integration and there is a downside of using these integration policies in relation to the cost. Therefore, establishing, developing as well as maintaining a proper distribution network will require monetary capital as well as time and thus help in the development of these  industry (Levitt, 2014).

It can be said that businesses do not exist with the rules and regulations that are set up by the management committee of the particular industry. It is vital to be aware of the changes in the society as well as culture in which the business enterprise is operating. As the culture and the society changes, it is the responsibility of the business entity to adapt the changes and stay ahead of the competitors. This must also be relevant in the minds of the consumers. Similar is the case of Bakeology. A major socio cultural aspect that will affect this industry and influence the preferences as well as the business decisions are the changing tastes of the customers towards any particular goods or services. The consumers might not prefer the products that were sold in the bakery industry in the past few years in this era. Moreover, changes in demography are also considered as an important factor in this business world. There might be changes in the demands of the consumers because the bakery products are demanded  by the youth and the child population and it is very difficult to understand their  mindset with the passage of time. Moreover, interaction with the customers of a particular company is also an important factor and it affects the sales and profitability volume of the company. The structure and size of the family is also a vital area on which the business of a bakery depends. The bakery industry will have to adopt different marketing strategies based on this particular approach. The attitudes of the customers towards quality product are also concerned factors that help in the extension of bakeology and it will be considered as an increment in the sales process (Hair, 2015).

Advertising also helps in influencing the customers to get attracted towards a particular product and it will be easier for the company to adjust to the needs of the customers . Social class is also an important factor for enhancing the business level. There are people from different age group and class and therefore their tastes and preferences vary accordingly. There might be variation in the genres of people, these people come from different financial background, and thus they will not have the preference towards the same category of bakery products. Therefore, it can be said that bakeology must try to apply different marketing strategies and this will help the company to gather social attention as well as differentiate the product from the other industries (Bryman & Bell, 2015). 

 It can be said that the production capacity of the bakery products has been growing moderately over the past few years and there is a steady increase in the growth of export. There is also a strong demand for different varieties of products in the bakery industry. The recent health trend have also encouraged the consumers to lower their consumption of wheat products. It can be said that over the next five years, there has been drastic shift in the preferences of the consumers as well as the health consciousness and this will affect the product mix of the company. The revenue of this industry is also projected to increase at a much lower annualized rate over the next few years. The economy of Canada relies on the export of raw materials as well as oil prices and these are considered to be the major factor affecting the business of this particular industry. The Canadian government must also take part in the decision making process of different enterprises and the revenue earned from small and medium enterprises will increase with the passage of time. This thread chin will continue to boost the different actions that are to be taken and thus this will increase the GDP of a particular country. The global trade policies will also try to protect Canada and this will be beneficial in carrying out the external affairs of different countries. The rise of the emerging market and the entire European economy can be considered as an important reason for the creation of more business opportunity in these sectors. Therefore, for this reason it can be said that the operation of bakery will be considered as a good choice for the businessmen. The bakery industry in Canada was also affected to a large extent by the recent price rise and the manufacturers has raised the price of the baked items suddenly to  large extent. It can be said that baked goods are considered to be one of the largest sectors among the three sub sectors within the bakery industry. Moreover, there is continuous ups and down in this industry over the last five years and thus has affected the growth of these industry. The sale of retail volume of bread is considered to be 38.2% and this is likely to increase within the next few years. This is also closely followed by the sale of pastries by 36.9% and cakes by 24.9%. On the other hand, it can be said that cakes are considered to be the dominant segment and it constitutes more than 50.4% of the sales volume of total baked goods because of the relatively high price in these sector, followed by pastries i.e. 31.6 and bread 17.9%. It can be said that the domestic players in the bakery industry account for more than 50 % of the total market share and thus this has led to the expansion of the bakery industry.

Bakeology is set up in Canada and this is considered to be one of the most influential factor that will help in the development of the bakery industry to a large extent. The political factors are considered to be one of the most important aspect and an external factor that affects the bakery business. Moreover, it can be said that for the establishment of a bakery in any country, there must be some legal rules and laws that must be followed while setting up the business. The second aspect will deal with the economic aspect of the particular country and this will help in the development of the business. It can be said that the economy of a particular nation depends on the money and material and thus this will help in acceleration of the business and development of better relationship with the relationship. Better change management and increased revenue is considered to be an important as well as necessary perspective for the development of bakery business. The international market will have a great impact on the business establishments of this nature and it will be easier to deal with the legal as well as economic transactions that are controlled by the policies of different countries. Moreover, globalization will be considered as an important aspect and thus it will help the company to reach to the targeted section and also strengthen the trade issues.

Information Technology

It is important to incorporate information technology in the bakery industry. This will provide better growth and establishment of this industry. Social media and technology are inter-related with each other and thus the customers can check the company’s website and check the products that are provided by Bakeology. Technological aspect is also considered to be an important aspect and this is also applicable in case of the bakery industry. These type of information is considered important for the development as well as advertisement of this kinds of industries. There will also be discounts and attractive offers on the bakery products and this will boost up the sales of the company. Moreover, with the help of information technology, the process of sales volume and automatic monitoring will become easier. The temperature and time are the important factors in the bakery and thus it is important to keep a track of these factors and its proper functioning. It has been found that the experienced bakeries use wireless sensors to detect correct time and temperature and this will help in gathering the information that is to be transmitted to the employees who will carry out the different functions in an effective way. Although, these process is considered to be expensive, the automated sensors  will be of great use and this will be important for the different firms to stay ahead of competition. Both the suppliers and the consumers will be benefitted in this case and thus it will help the suppliers in the fresh produce of goods in proper time and standard. The bakeries must have proper ovens, fryers and mixers and these are considered as an essential equipment in all small or large bakeries. These process will become easier with the help of different technologies that will be used in the bakery industry to make the process faster and easier.

Conclusion

Therefore, it can be said that the bakery industry in Canada is one of the flourishing and developing industry that has grown within a certain time frame. The Government has taken several initiatives for the development of these industry and thus provide the customer with quality and processed food. The process of technological innovation has also helped in the growth and development of the bakery industry and thus this will be easier for bakeology to capture the entire Canadian market.

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