The purpose of this research is to understand the current operations and marketing strategies of Chiu Chen Nan Orient Bakery through literature review and case studies, as well as to gain a consistent suggestion on marketing strategy through the professionals¡¦ opinions. The result reveals that the trends in the development of bakery market are as follows:
1. The amount of order is decreasing
Because of the change of social structure, families and personal relationships were not as close as before, which led to the trend that the single order of bride cake was decreasing in bakery industry. Moreover, most of the foreign brides do not have the custom of using bride cakes. The increasing percentage of those foreign brides through the years contributes to the drop of the order amount.
2. The new products are available faster than before.
Nowadays, there were more new products available in the market at a much faster speed. After analyzing the factors of old cost, competition in the industry, and ability of invention, these new products emphasized on innovation, variation, service, and the research ability in producing new products and packages.
3. Multi-sales channels, cross-industrial alliance and multi-angled business
The new products were packaged in a different way to enter the convenient stores and wholesales stores. Also, they allied with related industries, including wedding gifts, wedding photography, jewelry, hotels, and tourism in order to develop new customers beyond the way of selling in the past.
4. Discount and market segment
In one hand, many companies started to make discount in order to compete with each other and occupy the market. This discount war has made the profit of the industry decreasing tremendously. On the other hand, some companies began to develop high-priced, well-packaged, and multi-styled and multi-combinational products to segment and differentiate themselves from other competitors.
5. The number of retail stores of wedding bakery chains is decreasing.
Because of the bad economy, some wedding bakery chain stores started to experience deficits. Plus, the change of business districts in many areas deteriorated the loss of business. Therefore, some wedding bakeries started to close the retail stores suffering from bad profits.
6. Various combinations of bride cake gift box are available to satisfy the different customers.
In the traditional Taiwanese customs, there should be 6 or 12 gifts for wedding. The ¡§Six Gifts¡¨ is the traditional wedding custom and ¡§the Twelve Gifts¡¨ is the more daintier one, which include the big cake, also named the Han-styled bride cake. Because many customers still followed the old customs, many western bakeries started to enter the Chinese bride cake market.
The main results from the professionals¡¦ interviews are listed as below. Regarding the development of marketing strategy for Chiu Chen Nan Orient Bakery, their viewpoints are very consistent:
1. Product strategy
Use the current best-selling products to rebuild the store reputation and penetrate the market. Develop new markets with exclusive products or new products. This can be further incorporated with modern and cultural design elements to stimulate the five senses as a direction for new product development in the future. Moreover, related products, such as tea, can be developed to promote the sales of bakery. The company should run the business in a more multi-dimensional way by initiating new product lines and sales channel to increase its competitiveness in the market.
2. Price strategy
The severe price war of bakery industry will result in damaging the market price in the end. The middle high pricing can remain the profits and image of high-quality and delicacy. The consuming cultural differences will make the consumers question about the price recognition. The price difference can not solve the problem because it will make the consumers question about the quality of the product. Therefore, a higher pricing is a better strategy in segmenting the market.
3. Channel strategy
Although wholesales and convenient supermarkets have a lot of retail stores, the traditional bakery shop is not able to produce the amount which is demanded. In addition, these channels will lower the profits or even the price after the products being bought, which will further confuse the consumers by the different prices between retail stores and wholesales channels. On the other hand, the stable department stores and retailing stores are still the main resources of income. However, different contributes of consumers with varioius product lines should be considered. The channel of internet shopping will be a major trend in the future. To hire designated staffs, pay attention to the web safety, as well as to provide home deliver service and maintain the stability of the website are some important subjects needed to be taken care of.
4. Promotion Strategy
To make promotion activity more refined is more important than to have more promotions. The first step of a good promotion is to streamline the strategy and to set the promotional goal. Then, the effective promotion tactics should be selected. From the past experience of Chiu Chen Nan Orient Bakery, the most effective promotions included making discount and buy-one-get-one-free in anniversaries. Public relations activities had better outcome if they were cooperated with more well-known groups. About strategy of making alliance, the communication problems in cooperation should be solved in order to exchange the resources between each other and achieve the effect of cooperation.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0727105-102436 |
| Date | 27 July 2005 |
| Creators | Lee, Eric |
| Contributors | none, none, none, none, none, none |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0727105-102436 |
| Rights | not_available, Copyright information available at source archive |
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