Question

Describe the demographics, preferences, needs, buying behavior, as well as any competition for the market of cinnamon rolls. Explain the differences between this baked good compared to other similar products of competing bakeries.

Answer 1

Geographic segmentation criteria include region, climate and population density. A small bakery in a suburban community may serve just the local residents. Using population estimates from the latest census and information on the competitive structure from the local chamber of commerce, the bakery can estimate the number of potential customers and plan its operations accordingly. By putting up an online order-entry system and contracting with part-time delivery people, it may also be able to supply custom cakes and other products to locations outside its normal geographic area.

Demographic segmentation criteria include age, gender, family status and income. Younger customers may order pastries from a bakery, while families may drop by for breads and rolls. Orders for tiered cakes for birthdays and other special events may come from high-income households. The product mix and pricing strategy would depend on the location and the competitive environment. For example, a bakery in an upscale neighborhood may decide to offer more pastries and custom cakes in its stores than breads and rolls, which should mean higher margins but lower volumes. In a working class neighborhood, a bakery may offer more bread, rolls and other items in the low end of the price range than pecan pies, custom cakes and other expensive items. The margin on each item may be less, but the bakery should generate high profits if it sells enough items.

The main difference about this baked good and other similar product is that no a days people are more inclined towards being fit and healthy,in such a senario more customers will prefer baked rather than others.