Antz - the Bread Factory Marketing Plan

Pamantasan ng Lungsod ng Maynila
College of Management and Entrepreneurship

MARKETING PLAN FOR ANTZ – THE BREAD FACTORY

In Partial Fulfillment of the Requirements for the Subject
Retail Marketing

By: de Dios, Rizcel B.
Dizon, Maralon S.
Duhaylungsod, Ram Joseph M.
Fabi, Francis Jayvincent P.
Gabriel, Aira Migelle
Igcasenza, Nestine N.
Medallo, Renz Harvey M.
Parallag, Jemeremiah I.
Rivera, Sear Jan L.

Professor Angelo Alfonso Abejero

March 2012
I. Company Information A. Trade Name of Retail Business
Antz - The Bread Factory

B. Nature of Business
Antz - The Bread Factory is a self-service bakeshop, engaged in offering freshly baked breads. And last year it launched its new branches with a new business concept of “BAKESHOP ON WHEELS”, which is a limited service bakeshop offering Antz’s certified original breads.

C. Corporate Address
AHD Foods Corporation
2nd Floor Dolmar Gold Tower,
#107 C. Palanca St. Legaspi Village
Makati 1200, Philippines

D. Date/Year of Establishment
AHD Foods Corporation opened the first store branch of Antz - The Bread Factory in February, 2008.

E. Number of Branches and Locations
Antz - The Bread Factory has five operating branches: 1. SM Sta. Rosa, Laguna ( mall branch, bakeshop with dine-in) 2. SM Hypermart, Las Pinas (mall branch) 3. Bluewave, Macapagal Ave., Pasay City (bakeshop on wheels) 4. DLSU, Vito Cruz, Manila (bakeshop on wheels) 5. Pioneer Centre, Mandaluyong City (bakeshop on wheels)

II. Environmental and Market Trends A. Socio-economic Changes
Bread is one of man’s earliest foods. Today it is considered a staple food and part of the diet of almost all people all over the world. Commercial baking and other industries supporting it became big businesses and now constitute a large slice of the food industry.
The industry is highly competitive; making it very difficult to start a new bakery, especially in cities. An entrepreneur might consider buying an existing business or locating in a rural area.
One of the fastest growing areas in the bakery business is the specialty franchise store, producing everything from donuts to complete product lines.
Many bakers are incurring significant losses because of their inability to adjust bread prices because if they increase their prices, it might lead to a drop on sales.
Philippine Association of Flour Millers had explained that it takes three months from purchase date for wheat to become flour due to shipping time from the United States. The Philippines buys its wheat mostly from the United States, so despite of the downward trend in wheat, flour still increases its price.
Consumers perceive that small bakeries offer convenience, personal service, and fresher, better quality products. In general, bakery sales increase when consumer’s average incomes increase.

B. Consumer Buying Behavior Affecting the Business
Buying power or purchasing power of consumers depends on the changing environment and economic situation. More people prefer to eat out of home (OOH) because of busy working schedule and for their convenience. Customers, especially those who are employed, tend to choose and buy ready-to-eat foods that can satisfy their need in a quick manner, just like what is being offered in every bakeshop.
Nowadays, majority of the populace are value maximizers; people want to ensure that every cent in they pay for the product is worth it —low price at the same time good quality products. There is a high demand for breads because of its affordability and the satisfaction it gives to its consumers. On site baking of some bakeshops became an edge because people are looking for freshly made breads.
But there is a buying behavior that cannot be detached to Filipinos, this is impulse buying. People tend to buy products with appealing looks or packaging even though they do not intend and plan to buy those items. Offerings that capture the attention of potential buyers can make it to the top.

III. Competitive Environment
The diagram will show the different key competitive factors that make a business thrive in the industry and market. It also shows the evaluation of the strategic group’s performance based on the key competitive factors. Key competitive Factors | Retail Brands | Store Layout/ Design | Competitive Price | Merchandise Offerings | Operation | Type of Promotion | Accessibility of the store | Goldilocks | >blue/yellow>visible menu boards and advertising materials | -low price level | -organized-easily accessible merchandise-wide variety of pastries and cakes | -mall hours-non-mall based stores, flexible hours | Media:>TV, Radio, Newspapers, Magazines, InternetNon-Media:>Flyers, Billboards> Effective promotion | >many operating branches In and out of malls>stores are located in high traffic areas | Red Ribbon | -red/black-dimmed light> its design provides a romantic and peaceful mood | -higher price compared to other bakeshops | -easily accessible merchandise-wide variety of pastries and cakes | -mall hours-non-mall based stores, flexible hours | Media:>TV, Newspapers, Magazines, InternetNon-Media:>Flyers> Effective promotion | >many operating branches in and out of malls>stores are located in high traffic areas | Bread Talk | -traditional bakeshop-sleek-space age | -high priced | -40-60 different items daily | -mall hours | >Word of mouth | >many operating branches in malls>stores are located in high traffic areas | Antz – The Bread Factory | -giant loaf bread store-unique storedesign | -mid-price level | -theatre style-see-through kitchens-enticing design of breads | -mall hours-non-mall based stores, flexible hours | Media:-Magazines-NewspaperNon-Media:-Flyers> Less promotional effort | >stores are located in high traffic areas |
IV. Company’s Current Strategies

A. Target market
The profile of the Antz - The Bread Factory customer consists of the following geographic, demographic, psychographics, and behavior factors:
Geographic:
The geographic market would be urban dwellers in key cities in Mega Manila.

Demographic:
The primary target customers are those individuals (male and female) who belong to SEC B and C from all ages.

Psychographic:
The psychographic market would be busy, on-the-go.

Behavior factors: * Looking for delicious varieties of breads (savory or sweet in taste) * Want to eat something different from greasy fast foods * Seeks healthier versions of quickly served foods * Searching for a bakeshop offering freshly baked breads

B. Positioning * Positioning Statement
To urban dwellers in key cities in Mega Manila, from all ages from SEC B – C, who are always busy, and on-the-go looking for delicious varieties of bread, want to eat something different and healthier version of fast foods, and searching for a bakeshop offering freshly baked breads. Antz - The Bread Factory is a (limited service) bakeshop is the Philippines’ fastest rising bakeshop and fast food that is first to introduce a bakeshop on wheels in Asia with its unique “Big Loaf Bread” store layout offering unique, healthy, and delicious flavored breads with internal man power composed of highly trained nutritionists/dieticians, culinary experts, chefs and bakers. * Positioning Strategy
Antz - The Bread Factory offers a variety of healthy, tasty, affordable, freshly-baked breads to help our customers find refuge in today’s greasy fast food. C. Marketing Mix Strategies 1. Product and Merchandise Mix
There are varieties of breads offered by Antz - The Bread Factory: * Loaves * Muffins * Fiesta Buns * Floss * Wraps * Ensaimada * Cluster * Other Breads

2. Pricing
LOAVES
Loaves | Price | Choco Loaf | Php 57.00 | Ube Swirl Loaf | Php 57.00 | Monggo Loaf | Php 57.00 | Raisin Loaf | Php 49.00 | Pandesal Loaf | Php 49.00 | Plain Loaf | Php 49.00 | Wheat Bread | Php 49.00 |

MUFFINS Muffins | Price | Strawberry Muffins | Php 30.00 | Choco Pepermint Muffins | Php 30.00 | Orange Choco Muffins | Php 30.00 |

FIESTA BUNS Fiesta Buns | Price | Coffee Bun | Php 26.00 | Choco Bun | Php 26.00 | Ube Bun | Php 26.00 |

FLOSS Floss | Price | Majestic Pork Floss | Php 40.00 | Spicy Pork Floss | Php 40.00 | Chicken Floss | Php 40.00 | WRAPS Wraps | Price | Ham Wrap | Php 25.00 | Hotdog Wrap | Php 25.00 |

PIZZA Pizza | Price | Mayon Pork BBQ | Php 52.00 | Braided Pizza | Php 49.00 | Hawaiian Pizza | Php 49.00 | Mini Lasagna | Php 35.00 | Mini Baked Mac | Php 29.00 |

ENSAIMADA Ensaimada | Price | Plain Ensaimada | Php 27.00 | Ubesaimada | Php 27.00 | Macasaimada | Php 27.00 |

CLUSTERS Clusters | Price | Monggo Cluster | Php 60.00 | Ubesai Cluster | Php 60.00 | Plain Ensai Cluster | Php 60.00 | Ube Cluster | Php 59.00 |

OTHER BREADS Other Breads | Price | Beefy Bread | Php 37.00 | Chicky Bread | Php 35.00 | Porky Bread | Php 30.00 | Ham Cluster | Php 30.00 | Cheesy Cupcake | Php 30.00 | Tuna Bun | Php 27.00 | Cream Cheese Bun | Php 26.00 | Garlic Bread | Php 20.00 | Double Choco | Php 17.00 | Pan de Pandan | Php 17.00 |

3. Placement
Antz - The Bread Factory does not only focus on having mall branches. Some outlets which are 50-120 sq. meter in commercial space are located at strategic, high foot traffic areas such as central business districts and commercial hubs.

4. Promotion
AHD Food Corporation uses both media and non media approaches to advertise and promote Antz - The Bread Factory. Promotions are used to encourage and capture franchisers, at the same time to inform people about their enticing bread offerings.
ADVERTISING
* Print ads - newspaper and magazines, tarp * Packaging * Audio-visual materials * Symbols and logos SALES PROMOTION * Gifts
PUBLIC RELATIONS * Sponsorship * Events

5. Service Strategy a. People Training * Antz - The Bread Factory gives its employees Management Development Programs and continuous training to make sure that its employees perform their best.

b. Store Layout * Antz - The bread factory malls located branches have beautifully designed dine-in area and spacious counter with hip music and experiential services provides our customers an atmosphere of fun and exciting place to shop and dine. * Antz - The Bread Factory’s “bakeshop on wheels” branches are designed like a giant loaf of bread with 50-120 sq. m. commercial space.

c. After-sales & Customer Service Strategy * Antz - The Bread Factory offers Delivery services, free bread on next visit of customers or thank you messages on bulk orders.

V. Company Analysis

A. Threats
1. There are many existing bakeshops in the Philippines making it difficult to start a new bakery especially in cities.
2. Inability to adjust bread prices due to the price hike of the bread’s main ingredients like flour, sugar.
B. Opportunities
1. There is a big demand for bread here in the Philippines because bread serves as their secondary alternative for rice.
2. Filipinos are fond of sweet foods.
3. There is a large bracket of target market because bread is for a wide range of age, male or female.
C. Strengths
1. Antz - The Bread Factory offers products that is unique and can only be found in the store.
2. Our Research and Development team compose of highly train individuals namely; nutritionist/dietician, culinary experts, chefs, and bakers.
3. The products are presented theatre style where the kitchen’s SEE-THROUGH design allows the customer to feel the freshness of each bread being made and served.
4. Branches in bakeshop on wheels have flexible operating hours.
5. The store layout of Antz - The Bread Factory bakeshop on wheels is well executed in a big loaf bread design.
6. Antz - The Bread Factory has a strong franchise relationship as member of the Philippine Franchise Association (PFA).
D. Weaknesses

1. Antz - The Bread Factory is not well established. The bakeshop is not properly advertised.

2. We offer a product that is already available in the market.

3. Customers have to travel further to get in our stores because we have fewer branches.

4. The products we offer are not durable and can be easily blemished; it is the reason for some leftover.

5. Innovative products can be easily replicated.

6. The operating hours of bakeshop on wheels have no fix operating hours.

7. External employees of Antz’s franchises do not provide proper accommodation to the customers.

VI. Marketing Objectives

* To increase the number of franchised stores by 15.

* To introduce new products to the market.

* To increase annual sales by 10% per year

* To increase the number of customers by 5% per year

VII. Proposed Marketing Strategy A. Target Market
Our proposed target market would be the same as the current target market of the company which are busy, on-the-go and health conscious individuals, but this time we will emphasize as our primary target market are the health conscious individuals and other urban dwellers as the secondary target market.

• Health conscious individuals- consists of athletes, parents who want to give their children healthy foods, those who want to maintain their physically fitted body and even those who are not physically fit but want to.

• Other urban dwellers- this segment pertains to all other on-the-go individuals, students, professionals, all community dwellers who want something different from greasy fast foods and seeking healthier version of quickly served foods.

B. Positioning Strategy
Antz – The Bread Factory offers a variety of healthy, tasty, affordable, freshly-baked breads to help our customers find refuge in today’s greasy fast food.

C. Core Marketing Strategy 1. Product and merchandising mix Loaves | Loaf Plain | Pandesal Loaf | Raisin Loaf | Wheat Bread | Choco Loaf | Ube Swirl Loaf | Monggo Loaf |

Muffins | Strawberry Muffins | Choco Pepermint Muffins | Orange Choco Muffins |

Fiesta Buns | Coffee Bun | Choco Bun | Ube Bun |

Floss | Majestic Pork Floss | Spicy Pork Floss | Chicken Floss |

Wraps | Ham Wrap | Hotdog Wrap |

Pizza | Mayon Pork BBQ | Braided Pizza | Hawaiian Pizza | Mini Baked Mac | Mini Lasagna |

Ensaimada | Plain Ensaimada | Ubesaimada | Macasaimada |

Cluster | Monggo Cluster | Ube Cluster | Plain Ensai Cluster | Ubesai Cluster |

Other Breads | Tuna Bun | Ham Cluster | Double Choco | Creamcheese Bun | Cheesy Cupcake | Garlic Bread | Pan de Pandan | Beefy Bread | Chicky Bread | Porky Bread |

*NEW PRODUCT LINE* Fruit & Veggie Breads | Strawberry Glazed Bread | Melon Glazed Bread | Pineapple Glazed Bread | Banana Glazed Bread | Mango Glazed Bread | Malunggay Bread | Squash Bread | Carrot Bread |

*BREADS IN BUNDLE*
Antz - The Bread Factory will also offer breads in bundle. It will be the assortment of seven (7) breads and it’s the customers’ choice of what bread they put on the bundle.
2. Pricing

LOAVES Loaves | Price | Choco Loaf | Php 57.00 | Monggo Loaf | Php 57.00 | Ube Swirl Loaf | Php 57.00 | Pandesal Loaf | Php 49.00 | Rasin Loaf | Php 49.00 | Plain Loaf | Php 49.00 | Wheat Bread | Php 49.00 |

MUFFINS Muffins | Price | Muffins | Php 30.00 | Strawberry Muffins | Php 30.00 | Choco Pepermint Muffins | Php 30.00 | Orange Choco Muffins | Php 30.00 |

FIESTA BUNS Fiesta Buns | Price | Coffee Bun | Php 26.00 | Choco Bun | Php 26.00 | Ube Bun | Php 26.00 |

FLOSS Floss | Price | Majestic Pork Floss | Php 40.00 | Spicy Pork Floss | Php 40.00 | Chicken Floss | Php 40.00 | WRAPS Wraps | Price | Ham Wrap | Php 25.00 | Hotdog Wrap | Php 25.00 |

PIZZA Pizza | Price | Mayon Pork BBQ | Php 52.00 | Braided Pizza | Php 49.00 | Hawaiian Pizza | Php 49.00 | Mini Lasagna | Php 35.00 | Mini Baked Mac | Php 29.00 |

ENSAIMADA Ensaimada | Price | Plain Ensaimada | Php 27.00 | Ubesaimada | Php 27.00 | Macasaimada | Php 27.00 |

CLUSTERS Cluster | Price | Monggo Cluster | Php 60.00 | Ubesai Cluster | Php 60.00 | Plain Ensai Cluster | Php 60.00 | Ube Cluster | Php 59.00 |

OTHER BREADS Other Breads | Price | Beefy Bread | Php 37.00 | Chicky Bread | Php 35.00 | Porky Bread | Php 30.00 | Ham Cluster | Php 30.00 | Cheesy Cupcake | Php 30.00 | Tuna Bun | Php 27.00 | Cream Cheese Bun | Php 26.00 | Garlic Bread | Php 20.00 | Double Choco | Php 17.00 | Pan de Pandan | Php 17.00 |

*NEW PRODUCT LINE* Fruit & Veggie Breads | Price | Strawberry Glazed Bread | Php 43.00 | Melon Glazed Bread | Php 40.00 | Pineapple Glazed Bread | Php 40.00 | Banana Glazed Bread | Php 38.00 | Mango Glazed Bread | Php 38.00 | Malunggay Bread | Php 35.00 | Squash Bread | Php 35.00 | Carrot Bread | Php 35.00 | *BREAD IN BUNDLES*
Bundle pricing involves selling distinct multiple items offer together at a special prize. For Bread in Bundles, we will give ten (10) percent discount for a minimum of seven (7) breads purchase

3. Placement Strategy
Since Antz - The Bread Factory is a member of the Philippine Franchise Association (PFA) we propose to locate our franchised stores near the anchor stores to accumulate high traffic and to generate sales. D. Integrated Marketing Communication Strategies
1. Creative theme
Nowadays people are exposed to greasy and unhealthy food especially those children who are fond of eating fast foods. They choose unhealthy foods over vegetables and fruits that can give positive effects in their body. Fruits and vegetables are packed with essential nutrients that strengthen the body, heal and repair damage, ward off sickness and fight diseases. “Antz, the provider of fresh and healthy breads” is the campaign for the year 2012. Antz will deliver vegetables and fruits infused breads that can satisfy the need of health conscious customers.
Antz will not only offer freshly baked breads but also the nutrients that you can acquire from the vegetables and fruits. Vegetable and fruit breads are the newest offering of Antz that can give delicious experiences to a healthy diet.
2. Integrated Communications Program
Based on the company analysis, Antz - The Bread Factory needs to improve its promotional effort to establish the company well in the market. And the following promotional mix will be used to position the company on the bread industry.
Advertising

* Print Ads (Flyers and posters) – The flyers and posters contains the 2012 campaign which is “Antz, the provider of fresh and healthy breads.” The flyers and posters will be distributed and posted in high traffic areas and the existing branches of Antz - The Bread Factoy. * Audio Visual Materials (Jingle and Internet advertising) – The jingle will be played in every store branches to capture the attention of the customers. While in the internet advertising, audio visual presentations will be posted on our website and Facebook fanpage to regularly inform the target market about our campaign and new products.

Public Relations

* Sponsorship (For health oriented events and TV programs) – Antz - The Bread Factory will sponsorship health related events and programs to create a good publicity that will ignite the emotions of the market. * E-mail and Telemarketing - we will send a personal message through email for the potential prospects, to inform them about new offerings and events that will be held

3. Media Plan

ACTIVITY | TIME FRAME | BUDGET | Distribution of flyers and posters | Every third month | Php 960,000.00 | Releasing audio-visual materials | End of the year | Php 16,000.00 | Sponsoring health-oriented events and TV programs | Every quarter | Php 360,000.00 | Inviting and informing potential prospects through internet | Every month | ----------- |
*applicable for 2 years Total: Php 1,336,000.00

4. After-sales and Customer Service Strategy
1. People * Antz - The Bread Factory will provide a service training program that includes one (1) day orientation, three (3) days store management and marketing training, ten (10) days baker mastery, two (2) days cashier service training. * Antz - The Bread Factory will create a proper store dialogue that will surely attract more customers.

2. Store layout and design * Antz - The Bread Factory will improve store façade by adding more designs like glass, mirror and lights. We will also add music in the store so the customers will feel more comfortable. We will also create a unique scent to develop a somatic marker to our valued customers.

3. After sales and customer service strategy * Antz - The Bread Factory will give loyalty cards to our customers that give discount. * Antz - The Bread Factory give free breads for those who buy bulk orders. * Antz - The Bread Factory will impose a free delivery for bulk orders.

Appendices
Appendix A

Sketch of the Veggie and Fruit Breads
Appendix B

Side view sketch of the proposed packaging
Appendix C

Top view sketch of the proposed packaging

Appendix D

Front view sketch of the proposed packaging