Bread Source Report

Introduction

This report provides a comparison between Bread Source, an artisan bakery, with its main
competitors, Crusty Corner Bakery and Easters Bakery, to evaluate the advantages and
disadvantages Bread Source has. The report also provides the results of four interviews
conducted with Bread Source customers to develop a deeper understanding of the quality of
service they provide. Expected trends for this business are also discussed. Finally, a brief
conclusion and important recommendations to improve the business are given.

Findings and Discussions

Secondary data

Table 1 (in the appendix) provides a comparison of Bread Source and its local competitors using
the marketing mix (price, product, place, and promotion) as well as other key information.

1. Bread Source’s prices are much more expensive than its competitors. This could make
customers look for an alternative bakery that sells the same products with the same
quality at cheaper prices, e.g., Crusty Corner or Easters (Zhao,2021).
2. Unlike its competitors, Bread Source introduced a recipe book consisting of all the
pastries they sell. This provides an at home experience for family and friends which is
another way they aim to promote their products.
3. From the table (see appendix A), we can see that the opening hours for Bread Source are
longer than both of its competitors. This could create and advantage for bread source as
customers would resort to their bakery when other bakeries are closed (Gradus, 1996).
4. According to the table, the distribution strategy of Bread Source is located within the city
center, ensuring easy access to their bakeries for commuters using public transport.
However, both Crusty Corner Bakery and Easters Bakery have a disadvantage compared
to Bread Source as they have a limited number of branches and are located outside of
Norwich's City Centre, with only one branch open, whereas Bread Source has 7 branches.
5. Bread sources marketing strategy is stronger comparing to its competitors, because they
benefit from customers interaction with multiple social media platforms like Instagram,
Facebook, Twitter, and their online website where they advertise and promote their
products. Furthermore, Bread Source stands out from its competitors in terms of customer
incentives. Unlike its competitors, Bread Source frequently offers regular and gift
vouchers to its customers, which encourages them to return to their establishments on a
regular basis. Online, there are seasonal offerings for example, mince pies, gingerbread
cookies, wine, and cheese amongst many other festive foods, are sold together during
Christmas season at a price of 185GBP which could serve a 100 + family and friends
gathering, making preparing less stressful.
6. Many bakeries tend to have small sections in isles of large supermarkets like Highland
Grow bakery partnering with Morrisons, a large supermarket (Gregor, 2022). This has
increased awareness of their bakery and in return, their sales have also increased. This
has also allowed franchises to be interested in investing in their bakery, which allowed
them to be a nationally spread bakery.
7. Social media has become a common tool for firms to use to advertise directly to the
customers.There are multiple ways to utilize technology to benefit the firm. A good
example of this is Bread Sources competitors have a direct phone line that allows them to
have direct contact with their customers for them to order products to their home
( Maecker, 2016).
8. To advertise their brand, Bread Source’s competitors offer catering services for parties,
weddings, conferences and any other type of social gathering. People who have
experienced their services tend to recommend them to friends and family which further
promotes their business.
9. The aspect of social ethics like corporate social responsibility is vital to consider when
starting a business as it will be beneficial for when promoting the business and its
products (Ngoc, 2022). This allows customers to take into account that their favorite
bakery, for example, are not wasteful and considerate of their impact on the environment.
Food manufacturing businesses do this by hosting charity events with promotional offers
like ‘buy 1 get 1 free” or handing out a load of bakery that hasn’t been sold by the end of
each week to local homeless shelters which can be distributed by delivery trucks. This
 can be advertised through their Instagram or Facebook page, or by hanging posters
outside each branch where customers can also contribute by donating any bakery that
they make themselves at any time.

Primary Data

 Interviews were conducted with 4 customers at one of Bread Source’s locations in the
city center. Firstly, they were asked if they are frequent customers of Bread Source.
Depending on their answers they were then asked about several questions. First, their
favored products to determine Bread Sources somewhat popular products, despite them
being a small number of participants. Second, their views about the prices and their link
to the value of the products (whether they are reasonable prices). Third, their thoughts
about how to improve services and products provided by the business (see appendix B).
 From interviews, all the customers have agreed that products are priced at an exceedingly
high rate compared to similar cafés. They believe that prices are not reasonable and need
to be lower. They have mentioned that most of the branches are located in the city center
with very short distance between them. According to the customers, the shops are tightly
compacted and very packed in general as they find it hard to move about. However,
customers love the products and find it hard to choose from.

Trends

Based on the primary and secondary data collected in this report, for sustainable profitability, it
is expected that in the future Bread Source will lower their prices to maintain competitiveness,
due to their prices being way more expensive than their competitors. Due to their popularity
gradually increasing, they might open more branches outside the city center and renovate their
shops to be bigger, so customers are free to move about without feeling overwhelmed. However,
Bread source market share might be increasing due to quality and quantity of their products
comparing to its competitors. This expectation is based on the following chart, that shows higher
spending growth on bakers’ products particularly morning + Snack bakery (KANTAR, 2023).
Conclusion

This report has analyzed the Bread Source business in terms of its competitors, current market
conditions and trends. To develop a deeper analysis of the quality of service and environment the
business provides, primary data was collected through interviews with customers as well
secondary data consisting of information about its competitors and the marketing mix to get a
better understanding of Bread Source as a whole. Recommendations will be mainly based on
how Bread Source can improve its way of promoting their products, having suitable prices and
overall achieving a good customer satisfaction.

Recommendations are now given based on the primary and secondary data collected in this
report. First, to increase Bread Source market value, it is recommended that they partner with
delivery companies like Just Eat and Uber Eats as this will make a sizable portion of people
aware of this company, making their name have a compelling reputation. This can be done by
Bread Source reaching out to these delivery companies and coming to an agreement to do so
after gaining popularity.

By lowering their prices to match their competitors (as discussed in trends), Franchisees will be
attracted to invest in Bread Source like large supermarkets e.g. Marks and Spencer and Waitrose,
who are known for their high-quality products, where Bread Source could sell their bakery
goods. This will ensure higher sales and in return higher profit margins.

Second, to increase Bread Sources' market share and outstrip their competitors, providing a
catering service for schools, universities, conferences, hospitals, and weddings, can be
considered. This should strengthen the marketing strategy of the business and increase people’s
awareness of their products which can be advertised through their social media platforms and
website where customers can easily access the option to order a catering a service.

Bread Source should make it easier for customers to purchase their products using Instagram
rather than their main website (Appel et al, 2020). Bread Source should take advantage of the
internet and high technology (as discussed in the findings), like most businesses do, to make
interactions with customers easier. This can be achieved by creating an app where customers can
customize cakes, track their deliveries, and get updates on any new offerings and discounts
(Byron, 1997). Using this app, digital loyalty cards can also be used to make customers return
frequently. Making them electronic can prevent customers losing them or destroying them by
accident. This should ensure higher sales and profits (Boyd et al, 2019).

Fourth, due to the finding of the link between business success and its Corporate Social
Responsibility (Ngoc, 2022), Bread Source should consider donating a certain number of pastries
at the end of each week to different homeless shelters in the area by their delivery trucks.
Furthermore, charity events being held at least once a year where profit made is donated to food
and water deprived countries should also be a key factor in Bread Source being socially
responsible. Eventually, after publicizing these large-scale donations via social media adverts,
news will circulate and will most likely result in an increase of customers. This will make
customers be satisfied and appreciate the dedication of Bread Source which will make them loyal
customers and continue to support them.

Reference list:

Appel, G., Grewal, L. & Hadi, R. et al (2020). The future of social media in marketing. J. of the
Acad. Mark. Sci. 48, 79–95 (2020). Available at: https://doi.org/10.1007/s11747-019-00695-1

Boyd, D. Kannan, P. & Slotegraaf, R. (2019). Branded Apps and Their Impact on Firm Value: A
Design Perspective. Journal of Marketing Research, 56(1), 76-88. Available at:
https://doi.org/10.1177/0022243718820588

Bread source (2023) available at: https://www.bread-source.co.uk/about-us

Byron S. (1997), “Loyalty programs and their impact on repeat-purchase loyalty patterns”,
International Journal of Research in Marketing, Volume 14, Issue 5, 1997, Pages 473-486, ISSN
0167-8116, https://doi.org/10.1016/S0167-8116(97)00022-0.,
(https://www.sciencedirect.com/science/article/pii/S0167811697000220)

Crusty Corner Bakery (2023) Crusty Corner Bakery in Norwich. Available at:
https://www.crustycornerbakery.co.uk/
Eastern Daily Press (2020) “Bread Source named in Britain's best artisan bakeries ” Available at:
https://www.edp24.co.uk/news/23296555.bread-source-named-britains-best-artisan-bakeries/

Easters Bakery Ltd (2023) Available at: https://www.facebook.com/Eastersbakery/

Ghani, M., Hanafiah, M., Isa, R. & Hamid, H. (2022) “Preliminary Study: Exploring Franchising
Growth Factors of Franchisor and Franchisee”, 8(138), 1-22. Available at:
https://www.sciencedirect.com/science/article/pii/S2199853122007399/pdf

Gradus, R. (1996). “The Economic Effects of Extending Shop Opening Hours”. Journal of
Economics, 64(3), 247–263. Available at: http://www.jstor.org/stable/41794545

Gregor W. (2022) “Highland bakery Harry Gow trials partnership with Morrisons supermarket
chain”. Available at:https://www.northern-times.co.uk/news/harry-gow-trials-partnership-with-
morrisons-supermarkets-296520/

KANTAR (2023) “Total Bread and Morning Goods”. Available at: https://www.fob.uk.com/wp-
content/uploads/2023/06/Federation-of-Bakers-Kantar-2023-Update-8.6.23-reordered.pdf

Maecker, O., Barrot, C. & Becker, J.U. The effect of social media interactions on customer
relationship management. Available at: https://link.springer.com/article/10.1007/s40685-016-
0027-6#citeas

Ngoc T. (2022) “Impact of corporate social responsibility on customer loyalty: Evidence from
the Vietnamese jewelry industry”, Cogent Business & Management, 9:1. Available at:
https://www.tandfonline.com/action/showCitFormats?doi=10.1080%2F23311975.2022.2025675

So which Norwich local businesses did you say were among your favorites?". Available at:
https://go.gale.com/ps/i.do?p=HRCA&u=googlescholar&id=GALE
%7CA641052704&v=2.1&it=r&sid=sitemap&asid=faa4e6fa

Wales, B. (2022) “Bread Source founder lifts lid on companies' success” Available at:
https://www.edp24.co.uk/news/23679135.bread-source-founder-lifts-lid-companys-success/
Zhao H, Yao X, Liu Z, Yang Q. (2021) “Impact of Pricing and Product Information on
Consumer Buying Behavior with Customer Satisfaction in a Mediating Role”. 12: 720151
Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8710754/

Appendix

(Appendix A)Table1

Bread Source Crusty Corner Bakery Easters Bakery

Prices (£)
Coffee 3.45 1.45 No coffee
Muffins 2.80 1.45 1.20
Sausage £3.20 2.25 1.20
rolls
Products  4 diverse cakes  Variety of cakes  Cake
 Various kinds of  Cake customization customization
pastries  Hot food,  Pastries,
 No customization sandwiches, cold bread,
 Recipe Book for drinks cupcakes
how to make bread
and pastries.
Opening every day: 8am to 6pm Mon – Fri: 8am to 2pm Mon - Thurs: 7 to 4
hours Sundays: 9am to 4pm Sat: 8am –12pm Fri – Sat: 7 – 3
Sundays: closed. Sundays: closed.
Place  City Centre  Outskirts of Outskirts of Norwich
 In store collection Norwich City City Centre

 home delivery Centre In store only

  Offer teaching  In store only
courses.  Catering service

7 branches 1 branch
1 branch
Promotion  Online gift  Facebook  Facebook.
vouchers  Seasonal offers
 Seasonal Offerings  And meal deals
 In store vouchers
that are either 10,20
or 50 pounds
 Instagram,
Facebook, twitter
Source: information about Bread Source prices can be found on their website https://www.bread-
source.co.uk/shop. Information about Crusty Corner and Easters bakery prices was obtained
through a phone call from the shop. Other Information about Crusty Corner and Easters bakery
products can be found on their website https://www.crustycornerbakery.co.uk/ and
https://www.facebook.com/Eastersbakery/

(Appendix B) Chart 1: Participant Responses

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Employee Service Quality of Products In shop service Social media interaction Prices

Satisfied participants Unsatisfied participants

Source: Collected by the researcher

(Appendix C) Bread industry trends

Source: (KANTAR, 2023)