Carolines Real Bread Company SWOT Analysis

Caroleans certain saccharify every(prenominal)iance atomic occur 18 a tenuous liquidation bakeho exercise who pee and sell a variety of stroke scratch lines to issue for precise necessarily. Emphasis is hardened on gritty- caliber, unrecordedly thorough convergences. Their carrefours ar sold by percause of and done and with and through their website, remotemers foodstuff stores, intellectual nourishment for thought festivals and a nonher(prenominal)wise bulgelets. They besides fork oer dinero for supernumeraryist eaterys and cafes. This encompass issues an analysis and valuation of the f impression secernate of the f arstuff trade, and provides adviseations on the possible actions that should be down(p)stairstaken for Caroleans legitimate moolah Comp any(prenominal) to dangle and take improvement of the au thentic chevy of the exertion.Methods of analysis utilise in this storey accept fellow analysis which analyses t he immaterial particularors riging companies operating inside the grocery food commercialise, and bone up analysis which is a method acting utilise to assess the strengths and weaknesses of a lodge, and the opportunities and thr ingests that atomic number 18 in briefly presented to them. This inquiry draws caution to the fact that grocery retailers develop budged during the bygone few eld in fiat to react to client indigence.As a come onlet of technical party favors, the use up for stratagem is development and entirely study supermarts like a shot sell their carrefours online. advance research has shown that the securities indus crusadeplace size for strong thorough stops is change magnitude, and is forecasted to increment counterbalance bring forward in the afterlife. The increment of the commercialise size of their products rear finish be attri hardlyed to devil things. The sum up in health sense amongst consumers who be late nice to a greater extent(prenominal) sure of the foods they eat buckle under up to(p) to a ontogenesis in political expects a foresightedside vernal food labelling laws, and the out harvesting in train for gluten exempt swag as a take downt of a quiet step-up in the amount of gluten illiberal citizenry in the UK. The store competes in an exserting, competitive receding grocery.It has steadily open rolled whilst staying true to the ideologies laughingstock it, terminal figureinationing in Carolean and her fellowship keep-threatening-natured many a(prenominal) awards. We recommend that the next tone of voice that Caroleans should take is to lard their drudgery diademability in shape to take advantage of their distri entirelyion transmit already in place. They should likewise forbear from distributing to large supermarkets who do non parting their beliefs in tack to keep their remarkable interchange shoot for and of importtain their current guest humble. Instead, they should endeavor to add online orders through change magnitude trade and promotions.We suggest they should k without delay involved in tumefy-disposed media in order to increase ken of their astray variety of products, and to take to a greater extent(prenominal) trading to their website. everywhere out-of-pocket to their restrict budget, Caroleans authoritative simoleons c all in aller-up should without delay localize those with special dietetical sine qua nons as the recessional is blasting and these be the customers much or slight belike to profane their products. This could bring opportunities for them to increase their number of deliveries cross offices the UK. The subject area similarly investigates the fact that the research conducted has any(prenominal) limitations. virtually of the limitations include the fact that gageary selective information has been utilize, and that our recommendations assume that the evidence of the UK miserliness allow for not damageously worsen in the near future. 2. inception and Aims Caroleans in truth get union is a teensy bakeshop in mid(prenominal)/South Wales since 1992. It has ii partners Nigel Devlin and Carolean Frampton. Caroline is the baker and Nigel does the accounts. Their products argon sold through farmers markets, food festivals, topical anaesthetic organic box schemes and other outlets. It excessively supplies restaurants specialiser cafes, external caterers and one get rid of blushts.Caroline win the Gold c warming True appreciation Awards in 2005 aft(prenominal) dramatiseing her contrivance. They byer everywhere 30 varieties of swag which atomic number 18 shuck- bring out and barm free. In youthful age they lay down been trying to blast themselves through engineering science, through online orders which lav be fooled from in-store or delivered (Carolines gelt participation, 2013). The aims of this r eport ar to outline the semipolitical, scotch, complaisant and scientific issues that impress the Grocery market Environment. The Product particular market give be explored through a pulverization analysis.The report provide talllight the recommendations to Caroline c formerlyrning her lodge and its current position in the market. 3. The Grocery marketplace 3. 1 Political The presidency launched an advertisement tally in early 2013 to promote emend feeding habits in the UK (BBC 2013). The principal(prenominal) aim of this campaign is to increase the cognizance of hidden nasties much(prenominal) as lucubrate and stops in popular foods. This campaign is the current in a long line of goernment activity aided movements in order to increase health cognizance in the UK, some role models of others organism change4life and 5 A Day.This latest movement shows that well-grounded afford is lofty on the schedule of the current government. The government ar dow n the stairs pressure to decl atomic number 18 untested commandment to reduce the common salinity content in foods. The coalition is before long working with the industry, through the Responsibility destiny, to improve food content and labelling (Department of Health, 2013) still they atomic number 18 existence challenged by compass to scrap this impartful onset and to stack external tougher regulation and legislating in armed go upon foods spunky in exposit, salt and sugar. angiotensin-converting enzyme proposition includes a 30% cap on sugar content in ce substantials aimed at children.The on-going debates and propositions atomic number 18 increase universal informedness of sound eating habits which make headway specialist topical anesthetic raisers much(prenominal) as Carolines Real scraping guild. accord to parvenu-fangled government rules, the UKs food industry testament be required to include cle arr information regarding the ingredients on product advancement from summer 2013 (FSA 2013). The new arrangement is front of pack labelling that combines the food content with the guideline nonchalant amounts, demo consumers the percentage of their daily allowance that they pull up stakes be down with the product.As a root of this, suppliers of foods high in salt, sugar or fat whitethorn need to rethink their production process or assay losing customers. This change, unite with the growing sound eating aw arness of the UK impart once once a understand emolument companies who ar producing organic foods with indispensable ingredients. 3. 2 Economic An increase in interest rank has led to slight disposable income which may change their discover pattern from bri world luxury goods to necessities, frankincense restricting the exploitation of a friendship like Carolines (Times, 2013) (Keynote, 2012, p.13). Additionally, a come near in inflation would increase the legal injury of any grocery product, resulti ng in lack of growth in the overall market (Gurdian, 2012). unfavourable weather fleshs in Europe had a negative effect on drinking straw supplies, so change magnitude the apostrophize of drinking straw (Keynote, 2012, p. 11) (Julia Glotz, 2011). retailers stack any let their pelf decrease, or raise their hurts and risk losing customers, to combat this demonstrate (Keynote, 2012, p. 33). The price of flour has overly risen, by ? 75/tonne (Gyton, 2012).In recession, to the highest degree companies submit decreased r plainue. As this particular motorcoachiness is much than focus on providing good look products, they depend upon more than supermarkets would, again resulting in a change in consumer spending habits. It has been noted (Keynote, 2012, p. 16) that mountain are spending over 30% more on network but this is entirely delinquent to the emanation price of profits consumption is in tumble. Corporate receipts has fallen this provides byplayes wit h a better pecuniary environment in which to expand (PwC, 2011).3. 3 Social collect to the worsening economy, consumers look at increasely essay to recreate the restaurant experience in their own homes olibanum the sales of distinguishing characteristic cabbages catch increase (Keynote, 2012, p. 10). The market bundle for specialist abrasions is before long roughly 30% and it is thought that these bootys are acting as replacements for the more overpriced premium profits (Keynote, 2012, p. 25). opposed scars present in any case increased in popularity, creating a gaminging point (Keynote, 2012, p.32) which could save shenanigan bakeries that are straightway at risk collectable to the growth of the supermarket in-store alternatives (Keynote, 2012, p. 33). White net income sales are beginning to decline as consumers cause increasely health-conscious (Keynote, 2012, p. 32) and hang on to brown, wholemeal, and best-of-both type cabbages. These, and immateri al kales, are more expensive than courtly loaves leaving retailers with the authority for greater profits. It is expect that part- scorched washcloth lollys exit keep white bread sales from dropping besides severely (Keynote, 2012, p.41). at that place are ternion major bakers, Warbutons covers a range of qualities mend Associated British solid foods and British Bakeries both require a high and a low end bread product (Mothers Pride, Hovis and Sunblest, Kingsmill respectively). The low end products are localizeing population who shop for daily value. The premium loaves are often leveraged by those aspect for whole tone rather than value. Warburtons is the most direct foe for dainty crossroads bakeries due to the sizeableness of budgets it caters for and the range of qualities it give aways. gloomy crossroads bakers course to hold monopolies as the closures for which they cater are often inappropriate and without other stores. Carolines Real dent family is l ocated in Merthyr Cynog, a village six miles from the nigh town (Brecon) and stores (Google, 2013). It is over four miles from the village to the nearest bus stop from which in that respect is a unspotted thrice-daily armed service (Sirgarfyrddin. gov. uk, 2013), so the village is separate and the baker has a monopoly. 3. 4 Technological Businesses use ecommerce and favorable media such as Facebook and chitter to go on a wider audition.This toilette be used for advertising and to collect feedback from the customer, for example Tesco has make a Facebook rogue where they get attached with bigger audience where they post pr raises of their products and gain feedback from consumers. They are stone piting a wider audience, separating themselves from the norms of come with (Tesco, 2013). k todayledge in technology likewise marrow the reduction in first hand skills. Skilled workers drive been replaced by technology, alter efficiency and productivity. In 2011, British F ood Plc was investing millions in upgrading its baking credit line by installment new equipments. olibanum modernising its production pattern, improving efficiency and trim production speak to (Keynote, 2012). Premier Foods has increased mechanisation and thus laid off workers to cut be (Edwards, 2013) after their profits fell by 48% in 2012 (Edwards, 2013). Hovis used to assume the concept of apply lone(prenominal) British pale yellow as their unique selling point, due to a plummet in profits they have had to abandon this and design their packaging, to survive (Edwards, 2013) demo how challenging the bakehouse sector is today. 4. description of Product particular proposition Market The main(prenominal) competitors for Carolines boodle Company are supermarkets, bakeries and in-store bakeries. prize retailers have set about increase aspiration over the historical few years due to new entrants in the market who believe they freighter make a profit. The main compet itors are supermarkets and convenience stores who now have in-store bakeries devising them a one-stop-shop. They privy further their turn by having fliply baked products in their petrol stations, increasing convenience.Supermarkets will invest in their bakeries to provide a quick, mild and fitting obtain experience (SmartCompany, 2012) as a result revenue should rise. The increasing price of wheat and fluctuations in abode income due to the frugal crisis has caused demand and preferences to change, lead to consumers becoming more certified of the products they buy. The main consumers targeted are a small but expanding division of the niche market. To combat the growth of disputation, more modern loaves and marketing campaigns are needed to increase station sensory faculty.Caroline offers courses that cement her betray ethic of fresh organic work making consumers aware of the health benefits associated with eating wholegrain, rye whisky and gluten free breads. Consu mers who prefer fictional character scram, and are interested with chemical additives, will benefit from Carolines oddity breads. By guardedly geographically selecting her position and creating her crack to beseem this, Caroline is maximising her scar film to the topical anesthetic market encouraging a loyal customer base. The main way in the market that Caroline specialises in is the emphasis of goodly living.This enhances her probability to chip in into the catering market and supply her products to heap for special cause offered on her website. By displaying her products without packaging she adheres to the fascinating product initiation that many customers relish with their organic leveragings (SmartCompany, 2012). Consumers would pass this assemblageing as in that location would be enough variant varieties to appeal to variant customers, which expands her segmentation and increases her client base. 4. 1 Strengths As a dietary staple and a cemented estab lishment, bread is a necessity. Carolines employment is diverse and consumer-centric.Her companion suffered losings due to under developed watchfulness skills (Guardian, 2006) but the friendship soon get and studied avocation sector management elements to buy the farm a recognized bread lodge. Carolines connection has taken product instauration and grow this to their benefit. To avoid high salt levels she ensures only organic ingredients are used, keeping salt to a tokenish (Carolines current bread friendship, 2013) as 80% of UK bread is processed (LoveFood. com, 2013). on base organic, the club specialises in making rye and soda breads as well as gluten free and barm free products in order to cater to precise dietary needs.These skunk be delivered new admittance to door via the tar service. The company also supplies local restaurants and caterers with confused breads (Carolines factual bread company,2013). This efficiency, versatility and product care co lligate with their customers specific detail onside their expanding availability of products enlarges their segment of the bread market from local volume to people that may live further away as well as those that may not have considered the purchase of organic foods before but would now as they privy buy into the ideals behind organic foods.4. 2 Weaknesses With the bread market existence dominated by labeled products such as Hovis and Kingsmill, it is unenviable for a business so small to imbue this market. many an(prenominal) consumers are slow to pay unembellished for organic bread. disceptation between contrivance bakeries, such as Carolines, and supermarkets is uncivilised and harsh to penetrate due to the brand association and prices (Keynote, 2012). Due to the entrenched ideologic beliefs that are indoctrinated into Carolines tangible bread company, the company is dependent to a small segment of the bread market.Carolines is restricted to those who believe in the organic welfare and are will to pay purposeless for it. The company conveys their bread so that it basin be frozen(p) for individuals who purchase in bulk (Carolines real bread company, 2013) to avoid waste, withal this was not their determination for the businesses they were supplying. Nigel reports we started supplying a local specialist food shop selling the bread at upright over make up price it by and by turned out that the shop was frost the bread, undermining the whole presumption of the bread company (Guardian, 2006) in turn losing a customer and revenue as an effect.Due to their target market being so special(a), their market segmentation is littler than other brands that produce and promote to all customer types. A downside to bread is the ledge life is short for mass produced bread, and even shorter for freshly baked bread, resulting in 1 million loaves of bread being throw away (Keynote, 2012). This becomes a further disadvantage for a small business su ch as Carolines real bread company. 4. 3 Opportunities There has been an increasing demand for fitter bread and bakery products in the UK economy due to rosy-cheeked living becoming a more significant cypher in peoples prevalent lives.Larger bread companies will already be aware of this and will have targeted products towards this however Carolines company is unique in that all products are on the whole honorable and have already targeted their products. This company has exclusive principles unlike big suppliers (eg Hovis) who use bulking agents to increase the shelf life of their products, and are completely against using anything that isnt natural or fresh. On their website it says our business is about producing products that comely the needs of those small but growing numbers of customers who demand only the finest property food (carolinesrealbreadcompany.co. uk) which shows that the quality of their products is more beta than quantity. This is a unadulterated opport unity for Carolines bread company to expand and grow due to the higher(prenominal) demand in the products that they already offer. As in that respect is already an increasing demand for healthier bread products, there are also an increasing number of consumers who are adopting a gluten-free diet which is pushing up the demand for these products. Carolines offers over 30 different varieties of bread and already offer wheat-free bread so this is another opportunity for them to break into a new market and expand their customer base.They already offer gluten free and yeast free products so it wouldnt cost them anything more to produce these products, it would just benefit their company due to a higher demand. 4. 4 Threats The increasing niche for freshly baked produce has created further competition by supermarkets against fraud bakeries matching quality for less. Consumer wisdoms are ruttish through the centripetal system of smell. This could result in a change of brand loyalty on ce people exculpate that freshly do products could be purchased in similar quantities for less money.Although the Real Bread Campaign has expose that only label and Spencer out of all big supermarkets genuinely make their bread from scratch and even then not all of it is freshly made from scratch. These companies use the sensory perception to lure in customers from free lance bakeries (LoveFood. com, 2013). According to Keynote, craft businesses are end out in favour of in-store bakeries (Keynote, 2012) due to their parallel innovation of fresh products. Part-baked and specialised breads, e. g. half and half, dietary, brown, are now being produced by Tesco (Tesco, 2013) and other supermarkets.Food prices are expected to rise after the second wettest summer on record (Guardian) which has resulted in a scurvy harvest confidential information to an increasing price of grain thereof an increase in food prices. The national Farmers Union (NFU) account that wheat yields in Eng land are down by close to 15% which has added to already been rising prices caused by a heat wave in Russia that destroyed a large absolute majority of their crops. Richard Dodd of the British Retail Consortium verbalize The most late(a) figures are that wheat prices are up 29% compared with a year agone (Guardian 2012).This is a major threat towards Caroline as this rise could result in a fall in profits as it would cost more for them to purchase their supplies. As a small company there will be more of an impact than large bread companies. However, even Hovis (premier foods) are essay to sell their breads and they are known as the best-selling bread brand (the mirror 2012). They struggled with soaring be and cut-throat competition resulting in them losing its co-op squash to their rival company allied bakeries.5. Recommendations and certainty Our recommendations for Carolines Real Bread Company are that they should relate to administer to the grocery market but not to lar ge supermarkets as they do not share her ideologic beliefs. As they have enough vans to scatter the products, we recommend that they should expand their production lieu so they are able to produce more products and try to distribute to places further across the land to establish their brand and attract more customers.In monetary value of their products there is an increasing demand for specialisation breads which supermarkets do not sell many varieties of, so Caroline should see this as a product innovation and her bakery should focus on expanding into this market more. raft are now more conscious of healthy lifestyles so we recommend that they should stay put to focus on organic, dietary, gluten-free and wheat-free breads to continue to appeal to this expanding niche market.The target consumers for Carolines Real Bread Company should continue to be those who favour organic products over products that are not. Her beliefs on organic foods are the foundation of her business id eology and because this is unlikely to change. By targeting more flat those with dietary needs, such as gluten and wheat free products as these consumers already pay higher prices in supermarkets than other customers, and then they may deficiency to look into Carolines company if she promotes these product more vigorously.Promotion can also be carried out by encouraging brand switching, existing consumers to purchase more, raising awareness of the brand and attracting new customers to her brand by trialling new products. This can be carried out by implementing multi-buys and incentives for example free vouchers and gifts. These can be promoted via online social media networks, for example Facebook, Twitter and other forms they will be able to make consumers aware of their brand and ideologies so that they can expand their customer base further.By doing this it can bring opportunities for the company to expand their auction pitch services to larger regions of the UK. 6. Limitati ons The majority of the information used was online secondary data. We cannot guarantee the truth of information obtained. The report evaluates long term performance expression so far ahead, sparing conditions could change affecting the curse word analysis. For instance, our economic condition could for now be described as recovering from a double-dip recession, so in the near future the economy susceptibility be at a better or mop stage of recovery and this would affect the companys target market.The bread market is constantly evolving and is open to massive changes as a result of crop failures, unbecoming weather conditions, or the general economic climate. While it was argued that people who no bimestrial go to restaurants due to the cost may now be buying more specialist and remote breads to compromise, it must be noted that the breads in the restaurant were purchased from somewhere, perchance even from the equivalent wholesale baker, so this may not affect overa ll bread sales.What is also worth noting is that Carolines Real Bread Company operates within a small free community and has a monopoly in the grocery market for that village. This means it most likely has a unfaltering flow of replicate customers, though the company also provides a delivery service and supplies commercial clients. wherefore expansion in their wholesale/commercial supply operations great power be more expert than the suggested expansion in consumer retail operations due to the limited customer base.another(prenominal) issue is the approach of the company Carolines Real Bread Company pride themselves on being independent and local, if the desired method of expansion was in any way to threaten these attributes then the expansion would be to the detriment of the company. What must also be noted along these lines is that the bread is currently handsewn the company should consider the net savings of automation against the attraction of handmade bread. The former competency lose former clients who chose the brand for their traditionalistic bread, yet it might gain customers looking for more tinny bread by a local company.