SUBMITTED BY:

MANSI JAIN

PARIDHI GUPTA

PAWANI SUKHLA

RITIKA JAJOO
 TOWS ANALYSIS
TOWS analysis is a tool which is used to generate, compare and select strategies. In TOWS
analysis there is a trade-off between internal and external factors. Strengths and weaknesses
are internal factors and opportunities and threats are external factors.

STRENGTHS (S) WEAKNESSES (W)

TOWS MATRIX

SO Strategies WO Strategies
 To target health-  Affordable pricing of
OPPORTUNITIES (O) conscious youngsters cakes to attract new
with affordable pricing daily footfall.
of cakes.  Combo offers to
 Premium coffee range manage inventories.
with a mix of variety  To provide soothing
and combo offers. sitting experience to
 To make ‘waste free manage higher delivery
coffee ‘as a new trend time.
for market positioning.
 To provide safe and
congenial ambience to
meet and eat.

ST Strategies WT Strategies
 Mixed strategy of low  Engage the customers
THREATS (T) cost (cakes) and with constant offers.
product differentiation  Ensure customers
(coffee). safety at the times of
 Increase market pandemic and win their
awareness to compete loyalty.
rivals.  Increase market
 Offer competitive presence by opening
pricing to get regular new outlets.
cash inflows.
 SWOT

S.
Affordable pricing as per customers’ need.
Young customers
Majority customers (56%) in favour of
regular bi-week or weekly purchase
More variety of cakes and coffee possible
due to mixed taste preferences.
Lesser wastage due to lesser product range
Bakeries are preferable destination for
cakes.
Premium on coffee pricing can give
Starbuck type advantage.
W
No. of customers buying daily <10% may
result into higher inventory.
Low pairing between cakes and coffee
necessitating extra expenditure on other
products.
Delivery time is high which means more
ques and waiting time, requiring careful
designing of sitting arrangement.
Dependence upon family & friends loans

T
O Local bakeries and other coffee shops with
Upward trend in healthy eating, vegan and established history.
gluten free cakes. Start-up cost can be higher.
Customized cakes is a growing market. Fear of pandemic may still force the visitors
Variety of Coffee not available in other indoors.
bakeries.
Sit-in-style ambience with wi-fi and music,
a good meeting place.
Waste free coffee can be a new trend.
Students and WFH (work from home)
youngsters are looking for safer outlets to
meet after the pandemic.
 The 5W1H Framework
The 5W1H method is an outstanding method to better understand and delineate a situation,
provided it is controlled properly and used wisely. It is a method that provides effective
solutions to problems which may be encountered while setting up a new outlet and it helps to
create a positive continuous improvement dynamic in the business. This framework consists
of six questions which can be applied as deeply as possible for each question

 Who are the Target customers?

Identifying the target customers is the fundamental block while setting up a new
outlet. The survey has identified that the students and younger population will be the
main customers. So, it is important to identify their needs and motivations and what
they need to know before buying. The Menu can be drawn keeping in consideration
these points.

The other thing to know is about those customers also, who are not identified as target
customers. Their reasons can also be analysed to increase the market share.

 What are their Buying preferences? What makes you unique?

If my products do not match the needs and preferences of the target customers, there
will be difficulty in making the set-up appealing. We should identify what our
customers are not looking for and what can make our strategy as talking point. Our
strategy of affordable cakes and premium coffee can blend a unique combo. The
concept of waste-free coffee can create something new which can click with the
thoughts of young generation. Variety of cakes and coffees can bring a taste of
differentiation where we can beat the rivals.

 When did they prefer to buy?

Although the survey has shown that the majority of customers prefer to visit bi
weekly or weekly, therefore we have to plan differently for the week days to keep the
inventories under control. Our city experiences both types of weather, that is, summer
as well as shallow winter which provides an opportunity to provide a variety of cold
and hot stuffs whenever the customers want.

 Where to locate and by which channel to sell?

A busy market, a college place or any such location where the customers experience
serenity or tranquillity, are the choices where do we propose to set up the bakery.
Considering the target customers, we would prefer a serene location where the
 customers get a unique outing experience of meeting while enjoying music. The rich
ambience can attract them to visit the outlet. We would prefer to sell the products at
the outlet only without going into common strategy of Home deliveries as the time
factor kills the taste and uniqueness of our place/ product.

 Why should the customers choose you?

Variety and affordability for cakes; and variety and quality of coffee will make the
customers visit our place to experience the uniqueness of freshness and tastes. As a
strategy we can hire young & skilled persons who can blend the items to bring unique
and newer tastes which the customers may not have experienced before. Such new
combinations will definitely give a refreshing feeling to the taste buds of customers.

A deepened relationship is always motivational, so customer satisfaction will be the

prime goal.

 How can the results be applied to get best practices?

The purpose of any business is to achieve economic viability as quick as possible

maintaining its values. The success will be measured by the profits and cash flows
and these will be important metrics to quantify our success.

How can we increase the market share and bring in fold those customers who were
not targeted earlier. We have to upgrade our strengths constantly to remain relevant
and this can be achieved by grabbing the new opportunities by correct appraisal and
evaluation of the situations.
 Survey on Target Consumer

https://docs.google.com/forms/d/e/1FAIpQLSddjJuK9wU_mON_p_0Zb6HATZ4bX_jOjRxccmGNi73_uu_dV
w/viewform?vc=0&c=0&w=1&flr=0

The main age group of people interested to come are from 15-25, further followed by 26-40
years of people.

Females are the most interested group who are interested in coffee and bakery shops than
other genders.
There are not high chances that people will order cake for the events every time, in some
cases they do and in same not.

1 being Very important, 5 being least important.

People need a sustainable packaging and cutlery and very less amount of population don’t
need cutleries and packaging.
Most of the people like to buy bread from a bakery rather than a supermarket. Nearby small
shops and online also have a good response of people buying behaviour.

The two most popular breads are whole wheat bread and multigrain bread. Almost 60 percent
of the people prefer that bread.
The least type of bread in the area is Brioche and Ciabatta.
1 being represented as price and 5 being represented as price.
People need quality and will pay at any cost, but quality is especially important to them.

Most of the people need chai as an option for the beverage followed by iced tea, matcha lattes
to bubble tea.

As from the chart above, we can see people would go 10 to 15 minutes far for a coffee shop
and bakery.
Since, today’s generation is being connected to social media. The population we selected also
suggests us to advertise on social medias for the café.

Being interested, 5 not at all interested

People now-a-days like to order online the food rather than to travel through the traffic.

People in general like to sit for an hour or two in the café and enjoy the food and beverages.
Maximum people want to feel freshness and authenticity in the café.

People are satisfied if we buy our products from the local farmers than from someone
specifics.
 USP of the Project

The 4 U’s to a successful business:

 Unique – Our target market covers many demographics; we use sustainable cutlery
and also provides organic baked items for health-conscious clients.
 Ultra-Specific – Our delicious products are perfect for any appetite. They are
affordable and easily accessible with our delivery service and drive through. Our
warm atmosphere and friendly customer service will keep you coming back for our
fresh treats. we accept last minute order with guaranteed quality.
 Unbeatable Proof – some of our Benefits are:
a) We have the freshest ingredients
b) We have the friendliest staff and best customer service
c) We deliver our products to the customer
 Unable to resist – our delicious treats, free delivery, like-home atmosphere and great
prices will keep you coming back for more.
Product positioning-
Our bakery focuses on cakes, coffee and various baked goods which attracts customers and
receives their high evaluation through the freshness of items, different style, perfect texture,
low cost and considerate services.
As for marketing positioning, we can satisfy the different customers’ demands by different
price and style of the coffee and baked goods meal that we create. Apart from this we focus
to fulfil the demands of customers who require customised cakes.
 PRODUCT DEVELOPMENT
There are many steps to this process, and it’s not the same path for every organization. For
our bakery, it is as follows-

 Identifying a market need—as the concept of coffee with baked goods is becoming
more and more popular, thus we decided to build our idea on that same concept.

 Quantifying the opportunity—For this idea to work, we came up with the option
where customers would be able to customise their cakes, baked items, coffees, etc. at
a much lower prices as compared to the other bakeries and coffee shops.

 Conceptualizing the product—some solutions may be obvious, while others may be

less intuitive. Here’s where the team puts in the effort and applies their creativity to
devising how a product might serve its needs in a unique way. Since it would not be
so appealing if we open a bakery simply, thus we decided to give it an edge. Using
sustainable cutlery like recyclable plates, bamboo straw, etc. we can make our bakery
unique. Moreover, for our health-conscious clients, we will get all our raw materials
from local farmers which will be organic. Plus, to make our bakery different, we will
use the already used coffee to make compost. A corner of the bakery would be
dedicated to keep these packets of coffee compost so that when the customers are
leaving the bakery, they could take the packets with them for free.

 Validating the solution—before too much time is spent prototyping and design,
whether the proposed solution is viable should be tested. For this, we prepared a
questionnaire which was floated to people of different demographics. Through this we
were able to know who our customers are and what they need from us.

 Building the product roadmap—With a legitimate product concept in hand and the
results of our survey, we will be able to design our roadmap of the products we intend
to offer keeping in mind what our customers expect from us.

 Developing a minimum viable product (MVP)—this initial version of the product

needs just enough functionality to be used by customers. This would include things
which our target market prefers. Through the survey, we were able to find what the
most common baked items are and coffee our customers prefer. So initially we will
offer those products. Later on we can spend on Research and Development and invest
our time on creating something new.

 Releasing the MVP to users—Experiments can be conducted to gauge interest,

prioritize marketing channels and message, and begin testing our basic products like
cakes, pastries, breads and coffee, etc. around price sensitivity and packaging. It also
kicks off the feedback loop to bring ideas, complaints, and suggestions into the
prioritization process and populate the product backlog.

 On-going iteration based on user feedback and strategic goals—with a product in

the market, enhancements, expansions, and changes will be driven by the user
feedback being collected via various channels. Over time the product roadmap will
evolve based on the feedback which our customers will give about our coffee and
cakes and further on the basis of that we can keep evolving ourselves.
 BLUEPRINT FOR THE DELIVERY

FLOWER OF SERVICE MODEL-

INFORMATIO
N

CONSULTATI
PAYMENT ON

CORE
BILLING PRODUCT- ORDER
TAKING

BAKERY
EXCEPTIO HOSPITALIT
NS Y
SAFEKEEPIN
G

FACILITATING SERVICES- ENHANCING SERVICES-

1. INFORMATION- 1. CONSULTATION-
> about reservations > Customised order
> Asking for menu prices > Menu suggestions
> Reminder of reservations
2. ORDER TAKING- 2. HOSPITALITY-
> Table reservations > Waiting areas
> ordering Menu > Complimentary beverage/baked item
>Toilets
3. BILLING- 3. SAFEKEEPING-
> Self billing > Baggage counter
> Mail Billing > Valet Parking
> Counter Billing
4. PAYMENT- 4. EXCEPTIONS-
> Credit/Debit card > Complaints
> Check > Suggestions
> Cash handling > Compensation for unsatisfactory Services
> through UPI
 CUSTOMER PROFILE
For our bakery, so far we have conducted 2 sets of surveys. The first one was directed
towards the general audience to know whom we have to target. Then with the help of the
output of the first survey we got to know who our target audience is and thus the second
survey was focused to them.
With the help of the output from both the surveys, we were able to form the profile of our
prospective customers as follows-

DEMOGRAPHICS
1. AGE-
>Ranges from 15years to 40years

2. GENDER-
>both Females & males where females are more likely to visit our business

3. OCUPATION-
>Most common are Students, Engineers, businessman or House-wife

4. CITY-
>Delhi

PSYCOGRAPHICS
1. WHAT PROBLEMS ARE BEING SOLVED BY USING OUR
PRODUCTS/SERVICES?

Our business caters to all those who want to enjoy baked goods without worrying about their
health. This problem would be solved by us using all our raw materials from local farmers
who provide us organic materials.
Moreover, all those who worry about the entire plastic and non-biodegradable cutlery
produced by business will not have to worry as we use sustainable cutlery and bamboo
straws.
Also, our freshly brewed coffees would satisfy the needs of the coffee fanatic customer
segment who would not only be able to enjoy baked goods with their coffee but also will be
able to enjoy all this at a much lower prices that our competitors.

2. WHAT ARE THE MAIN CONCERNS THEY HAVE FROM OUR BUSINESS?

The main concerns that our customers would have are regarding the raw materials and the
freshness of our products i.e. the sources from where we acquires our raw materials plus the
shelf life of the goods.
Also, the time taken for delivering either the customised cakes or home delivering our
product would be a matter of concern.
3. WHAT ARE THE POTENTIAL TURN-OFFS THAT WILL MAKE THE
CUSTOMERS NOT RETURN TO OUR BUSINESS?

Late deliveries, stale tasting products, slow services and unhygienic and unfriendly
atmosphere of the bakery are the major turn-offs that will create a negative impact for our
business.

4. WHAT WOULD MAKE THE CUSTOMERS RECOMMEND OUR BUSINESS TO

OTHERS?

Tasty and fresh product, fast delivery and customer services along with friendly and hygienic
store atmosphere would encourage our customers recommend our business to others.

5. HOW MUCH ARE THEY WILLING TO SPEND ON OUR PRODUCT?

Most customers are willing to pay as follows:

Per coffee- Rs250-Rs400/-
For Baked goods- Rs250-Rs400/-

ACTIONABLE INSIGHTS

1. WHAT WAYS ARE THE BEST TO REACH CUSTOMERS?

As our target segment consists of the younger generation, thus mostly they prefer social
media as the best way to reach our customers.
Customers are neutral for other ways like newspaper, magazines, billboards and direct
marketing.

2. WHAT TYPE OF PROMOTIONS WOULD ENGAGE OUR CUSTOMER?

By providing seasonal discounts according to the availability of fresh raw materials, we

can attract our customers. For doing so we can introduce new items according to the
seasons, which will be limited for that season only.
Apart from this, we can create meal packages of coffee and baked goods and provide
offers on these meals.

3. WHAT NEW PRODUCTS WILL INTEREST OUR CUSTOMERS?

Apart from our current basic menu, we can add healthy cakes, such as makhana cakes,
banana mug cakes, carrot mug cakes, whole wheat cake, honey-oats cake, or option of
teas like-chai tea, iced tea, matcha tea, bubble tea, etc.
 ANSOFF MATRIX

The four strategies of Ansoff matrix for the bakery are-

1. MARKET PENETRATION-

In this strategy, firm uses its products in the existing market. In our bakery business, it could
be done by:
By decreasing the prices and keeping it slightly lower from the competitors (other bakeries
and coffee shops), we could be able to attract new customers.
By increasing our promotional efforts through online advertising and by increasing our
distribution efforts through home delivery system.

2. PRODUCT DEVELOPMENT-

In a product development strategy, the firm develops a new product to cater to the existing
market.
Once the Bakery opens and we know our customer’s requirements thoroughly, then we can
start investing in R&D to develop new products to cater to the existing market. Adding new
flavours, experimenting with different baked items, etc. all will be involved in the process.
Acquiring a competitor’s product and merging resources to create a new product that better
meets the need of the existing market. We can take inspiration from our competing bakeries
and coffee shops and add our touch to them.

3. MARKET DEVELOPMENT-
In a market development strategy, the firm enters a new market with its existing product.
Catering to a different customer segment. In the beginning our main focus is to cater the
wider market segment of young generation with the popular products like coffee and cake.
Later, we can start focusing on the higher age group people, offering them different styles of
tea and rolls or baklava.
Entering into a new domestic market (expanding regionally). Our first bakery will be in Delhi
but as our business will grow, we can extend our branches to cities like Mumbai and
Bangalore, and later all over India.

4. DIVERSIFICATION-
In a diversification strategy, the firm enters a new market with a new product. Although such
a strategy is the riskiest, as both market and product development are required, the risk can be
mitigated somewhat through related diversification.
So our focus would be on related diversification only.
Initially our focus is on biscuits, cookies, cakes, bread, coffee, tea, etc. but as our business
will start growing, we can offer our customers other products which we see often see in café
menus. We can start offering appetisers using our produces itself, like- Pizza, pasta, etc. for
savoury items and for sweets we could add items like brownie sizzler, chocolate fountains,
etc.
So our main focus would be to keep our main items as the base for the new products so that
we can cater to the needs of the new market using products related to our bakery.