Introduction
The case introduces how a small family-owned bakery, Delicious Bites Bakery, attempts to promote itself while facing competitors. Sara, the owner, recognizes the need to continue developing and studying customer preferences to remain thriving. The bakery offers a range of goods, from bread to cookies. However, the high quality of products and services is not enough to keep clients attracted. As a result, she surveys one of the customers to learn how to improve her business.
Improvement Strategy
Client Considerations
The primary criterion is demographics, as it provides a better understanding of clients’ tastes and values. The table shows that the majority of the bakery’s visitors are young adults aged 25–34. This group of people is highly concerned with consuming ecological and healthy products.
Therefore, based on the interview with Emily, who suggests introducing gluten-free items, it is evident that Sarah is attempting to diversify the product range. This can also lead her to collaborate with the local bloggers who promote a healthy lifestyle. Finally, Sarah could also cooperate with healthy brands to advertise their products and use them in baking.
Pricing
What is more, Sarah will have to adjust her pricing strategies, as monthly sales fluctuate due to different pricing policies. For several months, she did not need to raise prices due to the introduction of a new gluten-free line. In this case, cost skimming will be efficient, as it entails pricing new products at the maximum amount consumers are willing to pay up front, with progressive reductions over time. In addition, product bundling, which implies vending packages of items at a lower price, can help sell more goods and increase revenue.
Distribution Channels
The other thing to consider is the development of distribution channels. At the moment, in-store sales outweigh them, as people know the bakery well and come by often. Meanwhile, online sales account for one-third of total sales, indicating this channel is underdeveloped.
It can be improved, however, by buying advertisements from local brands and bloggers. To increase wholesale sales, it is vital to reach more shops and create offers for customers. It will be easier when the new gluten-free line is launched, as people are concerned about what they eat today.
Product Development
Product development leverage is a key part of the cycle, as it allows one to gauge how well the product is performing. When it comes to gluten-free items and seasonal pies, there should be a loyalty program that rewards customers with one free product upon purchasing a specified amount. In addition, seasonal pies should be offered in combos with drinks at a lower price, thereby increasing sales at the bakery. Finally, Sarah should track which pastries are mostly purchased to create special prices for them.
Conclusion
Finally, given the customer feedback, Sarah should focus on improving several factors. Primarily, the price can remain unchanged, yet special offers need to be introduced. Moreover, the new products should be created and tested in sales. This will help Sarah decide what is good and what needs improvement. Additionally, more wholesale stores are to be attracted to promote Sarah’s produce. Ultimately, it is indispensable to collaborate with individuals leading healthy lifestyles to promote a new line.