Running head: BREAD TALK MARKETING PLAN FOR FRANCE MARKET 1

Bread Talk Marketing Plan for France Market

Denza Primananda Alfurqan (CT0275039)

Stanley Linardo (CT0267011)
Enrico Dandy (CT0276933)
Brendan Loo Yi Tong (CT0270150)
Louis William Sanjaya (CT0268881)
Zhou Junxuan (CT0250821)

Word Count: 3450 words

FT-DipComMM-32 International Marketing

Abdul Roof
Kaplan Higher Education Academy Singapore
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 2

1 Executive Summary

Bread Talk is a Singaporean brand that uses Japanese-style boutique bakery. This report

will provide the information on how Bread Talk is going to break through the French market by

introducing new product to its population. From the PESTLE and SWOT analysis it can be seen

that France is a country that has lots of opportunites and also challenges such as having a good

economy even if France is also in bad terms in its politic. Also included in this report is the

marketing strategy/STDP that Bread Talk uses to segment its market based on the place, size of

family and others and to target a specific consumer and by differentiating from other competitors

by positioning the store so that the consumer can be exposed to the brand. Finally, marketing mix

which is the 4P’s , and from the report it can be seen that Bread Talk will place the store in a high

traffic area so that the store are exposed to their target audience and using the right price so that

Bread talk can penetrate the market to raise awareness of the product and to promote Bread Talk,

Bread talk utilizes promotion such as Public relation and other tools so that people are aware of

Bread Talk and their marketing plan. Bread talk does not forget to implement and control all the

marketing strategy and marketing mix so they will be able to adjust and change their strategies in

order to be successful.

2 Company Background

Bread Talk’s founder George Quack grew up in Hogan, Singapore – a shy boy who

excelled at art. After completing his National Service in 1982, Quack headed to Taiwan to further
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 3

his art education. However, after economic reasons made him seek out a living instead, he turned

to selling the spun sugar sweet “Dragon-beard candy”. This proved popular and with a loan from

his father and some intensive marketing, he and his wife Katherine had soon set up five kiosks in

Taipei shopping malls.

George then decided to introduce Singaporean favorites “Back chord me” (minced pork

noodles) and “Fish ball noodles” to the Taiwanese market under the name “Singe”. Despite hard

work Singe had little business and had to close three months later. Undeterred, George added

“Satay” and “Chicken rice” to the menu and employed an experienced chef who adapted the

recipes to suit Taiwanese tastes. This time Singe was a success, and grew to be a popular chain

with 21 outlets.

After selling up and starting successful ice-cream parlors in Shanghai, the Kweks

returned home to Singapore in 1993 – to start up the Food Junction food-court chain with some

Taiwanese partners, offering “restaurant food at food-court prices”. The 14-strong food-court

chain earned George the title of, “The Food-court King” and he turned to creating Singapore’s

hugely successful, Japanese-style boutique bakery – Bread Talk.

Bread Talk is a singapore based food & beverage group that was founded back in July

2000 by George Quack & Katherine Lee. In the continual process of creativity and innovation,

BreadTalk's evolution and growth as an internationally recognized bakery brand over the last 16

years has been encapsulated through four distinctive generations. The company expanded rapidly

in recognition and became an award winning F&B group that made its mark on the world with

their bakery. Bread Talk's new concept aims to immerse consumers in a unique experience that

harkens back to enjoying natural goodness and the bliss of great-tasting breads. From source to

store, the new concept includes an interesting repertoire of over 50 brand new items, specially-
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 4

developed by its international Master Chefs. Bread Talk has a total of 45 outlets islandwide in

Singapore and 1000 retail outlets across parts of Asia like China, Malaysia, Indonesia, Hong

Kong & Thailand. The brand stores comprise of Bread Talk, Toast Box, Food Republic, Din Tai

Fung, Bread Society, Thye Moh Chan, The Icing Room, Carl’s Jr. and Ramen Play. Although

traces of Bread Talk are found in Asia, there are no signs of it in the western region of the world.

Now, Bread Talk plans to target their market in France specifically.

The reason why Bread Talk aims to target the French market is because they are also very

popular when it comes to bakery. In fact, it is one of their main dishes. Their most popular source

of bread is the “French Stick” or better known as “Baguette”. It is a long thin crusty loaf and

weighs 250 grams. It comes in three slightly different forms; the ordinary baguette - with its crisp

golden-brown crust; the "moulded baguette" (baguette moulée), which is often a baguette

manufactured by an industrial bread-oven, and can be recognised by the fine lattice pattern on all

the underside; and finally a floured baguette, or baguette farinée, which is paler in colour, as the

crust is covered with flour before cooking. From any given bakery, the three types will be very

similar - the crust often being thinner on the moulded baguette than on the other two.. And for

BreadTalk’s case, their signature dish is the floss bun. Its a mix of western-style sweet cream-

filled bun coated with a generous layer of the Asian ingredient pork floss proved very popular –

one is sold every 10 seconds worldwide. Our new product is combining the floss and ordinary

Baguette into 1 perfect meal.

The reason why this is this is our choice of a new product is because it is a good mix of

ingredients from both cultures. From the crispy crust of the Baguette to the sprinkled sesame

seeds and vegetables on top to Bread talk’s signature floss & sauce ingredients innards, this

bread is sure to suffice both culture’s taste buds.

BREAD TALK MARKETING PLAN FOR FRANCE MARKET 5

3 Analysis of Business Environment

3.1 PESTEL Analysis for Bread Talk France

3.1.1 Political

France is led by president. The current president of France is Francois Hollande. Ahead

of the president election that will be held in 2017, France has an unstable politic condition ahead

of them. Therefore, this condition will be a threat for Bread Talk to open their branch in France.

Since unstable politic condition of a country could led to potential riots, this will be a

disadvantage of opening in France. With riots probability in France, therefore Bread Talk

operation cannot be optimized. Since their outlets will close down. (GRI, 2016).

Politic has a big influence and one of the important role in opening a business in new

country, therefore it should be a big concern and many considerations to make for investors and

Bread Talk. Moreover, Francois Hollande, France president stated repeated promise to avoid the

rise in unemployment rate.

3.1.2 Economic

For the first quarter this year, France’s GDP has been expected to achieve growth on

0.4%. The increase in GDP means, there has been increased in production of good and services

this quarter. This is a positive impact on company, if the GDP grows, means customers will have

more buying power. (RTT, 2017).

BREAD TALK MARKETING PLAN FOR FRANCE MARKET 6

Moving on to next important indicator, Inflation. France’s inflation slowed down to 1.2%

from 1.3% on January. If inflation goes down, the price of goods and services will also go down.

Therefore, Prices of goods and services didn’t rise sharply and Bread Talk can take this

opportunity to extend their branch in France. ("France | Inflation rate in France rose by 1.2% in

February on YoY basis", 2017)

3.1.3 Social

France is also known for their breads. They have their own unique way to enjoy a

piece of bread. Despite on eating it straight away, they would tear the bread and eat it. Also, they

use the bread to wipe of sauce on the plate. This habit will have a big influenced on Bread Talk.

Bread Talk usually use plastic to pack up breads inside the plastic, which is not the same way

with France tradition. (Frederic, 2016).

“French like to eat bread frequently. They eat for dinner, breakfast with coffee”. So,

eating bread can be said as a culture in France. Therefore, since there are a lot of family who are

bread eaters, consumer can try breads from bread talk, which are different then their traditional

bread.

3.1.4 Technology

France has an increased investment this year in term of technology advancement.

On 2016, France was third place on most significant Europe tech hub. This advancement in

technology will ease the use of high level of technology in the company, since the equipment
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 7

will help Bread Talk to increase their services and yet, their production rate and quality. (Hoang,

2017).

3.1.5 Legal

To open Bread Talk branches in France, There must laws and regulations that

must be followed by Bread Talk. In old article 57 of Code General des Impots, therefore, there is

limited transfer pricing and indirect transfer profit abroad. The pricing of Bread Talk products

must follow the France’s rules and regulations, since it’s a multinational company, pricing will be

different in different countries. (Cuadrado, 1994).

3.1.6 Environment

Based on the French law, From July 1st 2016, plastic bag has been banded by the

government. The transparent plastic bag and also the bio-degradable and hand-handled plastic

bag is banned in France. Therefore, to open branch in France, Bread Talk consider to change

their plastic and packaging to satisfy the environment rules in France. To encounter this, Bread

Talk can also consider to change their plastic to paper bags and re-usable plastic bags. ("What

you need to know about France's ban on plastic bags", 2016).

3.2 SWOT Analysis of Bread Talk

3.2.1 Strength

Strong Brand

Bread Talk, a distinctive Singapore brand, had already received the praising of

the customers and appealing of the international. Top brand in Singapore, five star

diamond brand awards, World retail awards, Singapore service class (S-class) status
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 8

which is the guarantee of Break Talk breakthrough the French market.[CITATION

Bre15 \p 18 \l 18441 ].

Layout design

The layout of Break Talk retail outlets design is to create a work space that

transparence which is the view of chefs and bakers at work to show customer the

production process. In the same way, the distribution of retail outlets in French also can

bring the closely and warm atmosphere to customers. [CITATION Bre15 \p 25 \l 18441 ]

Experienced Management

The management of Bread talk group Oh Eng Lock is the CEO of the group, he

is already have experienced in managing United Overseas Bank and DBS. And the

director “Mr George Quack, the managing director, has been in the F&B business for

more than 20 years”[CITATION Mic09 \p 3 \l 18441 ].

3.2.2 Weakness

Licensing overseas

On one hands, Break Talk exist franchising business that’s to say licenser must

gain access knowledge of French condition first. On the other hands, licensee might

operate independently when gain enough from licensor which will affect the Break Talk

brand image.

Pricing

Break Talk as a new player, the price of its product are correspondingly higher

than other bakeries, this is not conducive to attract customer in French.

BREAD TALK MARKETING PLAN FOR FRANCE MARKET 9

Loyalty

Break Talk doesn’t have enough loyal customers in overseas’ market due to lack

of direct management

3.2.3 Opportunity

More Profit

Bread Talk can make more profit since euro are also strong for S$1 is 0.67

euro[ CITATION the17 \l 18441 ] even if Bread Talk must also follow the rules and

regulation of French and also a new Regulation in France(Cuadrado,1994) that the

bakery shop can close any time they want to close[CITATION TIM15 \l 18441 ], as long

as Bread Talk does not close they can sell more bread than any other their competitors.

Innovating new way

Since Bakeries in France are now facing a decline because of the business that

makes French people does not have the time to go to buy the bakery and because of

French Young population preferring to buy biscuits and French people buy sandwiched

that already been made[ CITATION Eur141 \l 18441 ] and because of this change Bread

Talk can make new product by making biscuits or package the bread so that French

people can buy it immediately.

Geographical advantage

The European Union is highly integrated, people also have strong purchasing

power. French is geographically located in the heart of the EU market. Hence, Break

Talk enter French market is equal to enter the EU market.

BREAD TALK MARKETING PLAN FOR FRANCE MARKET 10

Advanced Technology

By having an advanced technology by having the third place on most significant

in Europe tech hub (Hoang, 2017). Which is the reason Bread Talk can take advantage

so that it can be more efficient and effective at managing business.

3.2.4 Threat

Declining sales

Since the bakeries, “Industry are in a declining state even if it’s only 1% in

2014”[ CITATION Eur141 \l 18441 ], and because of the busy French Population that

does not have the time to go buy to bakery shop which makes this as a challenge for

Bread Talk.

Politics influence

Expanding employment and reduce unemployment is an important part of French

government’s economic development policy and employers have no rights to lay off

employee at will. When the company’s business goes up, employee must be rewarded

as a premises. On the contrary, the business goes down, it is hard to support a

company without a good turnover.

More competitors

The fresh bread is such a staple food in the French mind and has a certain

number of bakeries open in a certain radius that will be a challenging for Bread Talk to

compete.
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 11

4 Development Marketing Strategy

4.1 Segmentation

We had segmented France market into three different segmentations, Geographic

segmentation, Demographic segmentation and Psychographic segmentation. In Geographic

segmentation, we segmented the market into urban and suburban area based on consumer living

area. In demographic segmentation, we choose age and family size as demographic segmentation

statistic. We segment the age into 3 group which is the young adult, aging between 15 - 24 years

old, adult aging between 25 - 64 years old and seniors aging between 65 years above. In family

size statistic, we segment the family size into family size consist of 2 until 4 member of family

based on the average size of the household in France. In psychographic segmentation, we

segment the market into 4 social class, upper class which is the super-rich people, middle class

who has the average income, working class who is struggling and lower class which is

considered poor.

4.2 Targeting

In the demographic segmentation, we target the age group youth aging between 15 – 24

years old and adult aging between 25 – 64 years old as both of this age group are the group that

often go to the bakery and grab something to eat. French household has an average of 2.38

person per house hold, and for that reason, we are targeting the household that consist of 2 – 3

member of family. We also targeting people living in the suburban area as these places are

commonly found the residential area and urban area where most of the adult often grab a breads
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 12

or roll for breakfast before they work and the youth came to enjoy our pastries. In psychographic

segmentation, we targeting the lower class to the middle class people.

4.3 Differentiation

We differentiate our company and other bakery by the location of our outlet and the

concept of the outlet. we always choose strategic location such as shops near subway or bus stop

so that customer can grab something and go before they heading to their workplace or heading

home after some activities. This also help customer to find our outlet easily as they will pass our

outlet before going into the subway or bus stop. The second keys for our differentiation are the

open kitchen concept which we let the customer see how we process our product and guarantee

cleanliness to our customers.

4.4 Positioning

We position our-self in the mind of the consumer as the cleanest bakery and the most

convenient bakery. As our kitchen is an open kitchen concept where consumer always picture the

open kitchen concept on their mind and think the hygiene of our bakery. Our outlet is available

all over France located near the busway and bus stops which made the consumers remember our

location of our outlet as they are doing their daily activity such as work or going to school, they

will walk pass our outlet. Diagram below shows positioning map of Breadtalk bakery in France
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 13

5 Development Marketing Mix Strategy

5.1 Marketing Mix Strategy (Product, Place, Price, Promotion)

5.2 Product

Product strategies of Bread Talk for France market will got some modification style of

bread to fit the market in France. Start from introduce the three levels of our product to this new

market. Break Talk core product has been immersed consumers in a unique experience that

harkens back to enjoying natural goodness of great-tasting breads. “France popular breads such
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 14

as croissant, opera cake, macarons, mille-feuille, etc” (Moore, 2014). would be Bread Talk actual

product and then Bread Talk augmented product would be any form form of after sales service

such as customer service and in-store service. Bread Talk also will use product standardization

and product adaption in order to facilitating the development of a product as a global brand and

fulfills the needs and expectations of France customers.

5.3 Place

In International Marketing refers to the availability of the product to the customer at the

same time and the clarion where it is desired and also the channels of distribution that connected

the producers and the costumers. As a bakery business that wanted to give freshness bread to

France consumers, Bread Talk will focus in using directly method on their channel of distribution

by opening their own bread store in France. Bread Talk will sell directly their products to

costumers through every concept store. This method is aim to reduce any term of third party such

as distributor or agency that will handle the business. Furthermore, by using this method it will

be affected to the sales and also the revenue of the company in the future because we do not to

share our profit to any third party.

5.4 Price

As our company is new in France, we will use market penetration to attract new potential

customer, let them try our product with an open kitchen concept and overtime we will change our

pricing strategies to competition based where we set the price based on what our competitors are

doing. The bakery in France will adapt the polycentric pricing where there is no coordination

with the headquarter and set price based on the environment in France itself.
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 15

5.5 Promotion

5.5.1 Advertising

We will advertise Bread Talk company in social media such as Facebook, Twitter,

Instagram and other social media platform to increase our company awareness in France. We will

also advertise in billboard placed in the subway, bus station where commonly found adult worker

and youngster.

5.5.2 Sales Promotion

As our product are all freshly baked, 2 hours before the closing of our outlet, we will give

price reduction of all our product to our customer to initiate impulse buying as our company

didn’t keep leftover product to sell it in the following day.

5.5.3 Public relations

We will establish a good image of our company by donating bread to the orphanage,

donating to charities and build a good relation with our customers by greeting them when they

enter and exit our outlet.

6 Implementation and Control Strategies

6.1 Implementation

Implementation and control in marketing plan has been “the process of execution the

strategic plan that already set by organization” (Cooper, 2000). It would be involves preparing

the comprehensive list of activities for Bread Talk in France in order to achieve the marketing

goals. Controls take charge in monitoring and evaluation of the marketing activities for Bread

Talk. Furthermore, it would be very useful to take decision of the organization in the future based
BREAD TALK MARKETING PLAN FOR FRANCE MARKET 16

of implementation and control. There are five steps for Bread Talk in order to achieve marketing

plan control process which are setting values for marketing performance indicators, determining

tolerance ranges for values, measurement of actual values, comparison of actual values to

planned values and preparing implementing actions and activities to eliminate deviations.

6.2 Control

There are three types of controls that will be used by Bread Talk in order to control in

marketing plan implementation. Control of the annual plan, control profitability, and control of

efficiency (Davids & Newcomb, 2003).

6.2.1 Control of The Annual Plan

Annual plan control methods will focus on analysis of sales, financial indicator of the

country and market share of bakery industry in France for Bread Talk products in French. This

control will be performed by Bread Talk mid-level management.

6.2.2 Control Profitability

Profitability has been the major purpose of business in order to keep survive, in this case

of Bread Talk it would be any form of profitability of the products in France market, customers

segment, store location, etc. and this method would be under control of marketing manager of

Bread Talk in France.

6.2.3 Control Efficiency

Efficiency will be performed by marketing auditor and top level management of Bread

Talk in order to keep monitor an overview of the social and ethical responsibility of the Bread

Talk enterprise in France and also control the effectiveness of marketing strategy for this new

country. Furthermore, they are the person to take in charge of audit the marketing performance

and company stability in this new market.

BREAD TALK MARKETING PLAN FOR FRANCE MARKET 17

7 Conclusion

As the world’s first bakery industry listed company, BreadTalk is not only good at setting

the rhythm of bread baking, but also for the time and speed of moving into France step by step.

France is a big market for breads, the return is very generous. At the same time, the pursuit of

quality bread is also high, which is undoubtedly a challenge for BreadTalk. If BreadTalk can

successfully enter the local market, there has a lot of help and prestige for the expansion into

many other countries. Through the analysis of SWOT and PESTEL, BreadTalk has the ability to

segment the market, grasp the market opportunities to quickly understand the tastes of French

and lock the target masses. With the further deepening of the market, the future product line may

be subdivided. It would be beneficial for BreakTalk to target the lower income groups and

middle income groups and finally expand further. Though BreakTalk will face a large number of

problems because bakery culture is very high in French. BreakTalk will have to come up with

something unique which interests the people and hence could be successful in capturing French

market. Breads are the important part of their diet and BreakTalk will have to make a serious

attempt to conquer and match the markets in French.

BREAD TALK MARKETING PLAN FOR FRANCE MARKET 18

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