HOMER’S DELI & SWEETHEART BAKERY Marketing Plan Lindsay Aiello Melody Williams Amber Lorenzen Ivan Chino

HOMER’S DELI & SWEETHEART BAKERY

ANNUAL INCREASE IN REVENUE

HOMER’S DELI “To create high- quality deli products at reasonable prices for the satisfaction of customers, …

SWEETHEART BAKERY ………. and to be the leading competitor in providing fresh bakery goods to clientele.”

GOALS FinancialNon-financial  Generate income  Increase profit  Increase equity by 3-7%  Use increased funds to manage second location  Increase revenue through catering  Maintain total advantage in employee satisfaction  Quality customer service  Expand the reputation of Homer’s Deli & Sweetheart Bakery  Schools  Community events

BASIC PRICE LIST Homer’s Deli: Sandwiches- $3.39-$5.55 Bowl of Soup- $2.59 Cup of Soup- $1.99 Pasta- $1.30/ dish Sweetheart Bakery: Cookies- $0.45-$1.19 Blarnies- $1.09 Brownies- $0.85 Cake- $20.95-$36.95 Dozen Doughnuts- < $10.00 Pie- $9.99-$13.99

CUSTOMER ANALYSIS Upper Middle-Class & BusinessesCollege Students Reason:  High-priced products  Weddings  Graduations Reason:  Satisfying, wholesome meal  Dessert  Quiet setting for studying

Market Segment Products BakeryDeli CookiesDonutsCakesBunsLunchMid-DayDinner Age Age Age Age Age Party Planners (Graduation/Wedding) Businesses MARKET PRODUCT GRID

MARKET PRODUCT GRID & INCENTIVE Customers 0-25:  Student ID = 3 free cookies  Weekly night discount Customers 25-60:  Time constraints = Increased efficiency behind counters to offer quality fast. Customers 60+ :  Quiet atmosphere  Affordable meal  Senior Discount?

End of growth stage Maturity Now Introduction stage Marketing mix strategies Expansion

Product: Fresh & No artificial flavors Price: Variety; Depends on kind Promotion: Radio; website; samples; Sunday afternoons, Church-goers Place: Lion’s District; Expand to Camanche; Evaluation Marketing Mix

Services Packaging  Other products include: Beverages, cookies, candies, breads, soups, salads, pies, etc.  Other services include: Delivery and set-up offered Shipment of certain bakery goods Open, quiet seating arrangement Decorating of cakes/cookies to customer’s preference Bags Boxes Core Product Sandwiches Donuts Cakes

Inventory Inseparability Inconsistency Intangibility Delivery and Set-up Clean & Organized Dining Area Training Regular Work Schedule Cake decorator on request Cater meals Manageable hours with weather conditions Personal service Timely

Customer arrives/calls Receive Customer’s calls Collect Customer’s products Prepare customer’s order Determine Price Customer orders for a later date Receive information CUSTOMER CONTACT AUDIT

Determine Price Collect Payment Constomer leaves Charge to business Business sends check Continued

PRICING OBJECTIVES VS. PRICING CONSTRAINTS  Pricing objective 1. Adding value and quality to price 2. Managing for long-run profits a. Ordering in advance b. Seeking lower costs  Pricing constraints 1. Costs cannot outweigh price 2. Price cannot exceed 15% above competitors’ price 3. Promotion strategy may reduce income through advertisement expense

Break-Even Point PriceCalculation Break-Even Point $ ,000/ ( ) = 79, sandwiches $ ,000/ ( ) = 70, sandwiches $ ,000/ ( ) = 64, sandwiches

TYPES OF INVENTORY 1. Ingredients (food) 2. Table service 3. Packaging 4. Cleaning supplies Ways to reduce inventory costs: 1.Order non-perishable items in advance 2.Train employees to use rational amount of supplies 3.Investigate other distributors with lower prices.

Dependability Convenience  Loyalty Cards  Coupons  High-quality  Friendly service  Future Developments: a. Two serving lines b. Improve efficiency behind counter c. Increase open business hours

PROMOTION OBJECTIVES  10% increase in customer college students weekly  Promotion budget = 30% of advertising budget  Use of Percentage of sales budgeting strategy  Networking with local colleges—promotion price discounts implementation within third quarter of annual year

WEBSITE Improvements  Content Element: Wedding music and theme when customers view wedding cakes  Community Element: initiating a chat room with customer experience and opinions  Customization Element: Interactive Choiceboard where users design and decorate cakes online  Commerce Element: Online Order forms for convenience & efficiency

Gantt Chart Homer’s Deli & Sweetheart Bakery

ENJOY A DONUT ON US!