MGT382 Su Xingyue 11527349
Now people more and more high to the requirement of food, many businesses will satisfy the customer, and then select the right opportunity to enter the market, in-depth study on the enterprise has been in existence for a long time, pursuit, make the let customers more satisfied with the food. Or are still in the initial small pastry shop, through constant development, affect the good the forehead shop.
1.4.4 Potential entrants, substitutes to win business and strengthen the existing competition among enterprises.
Cake as dessert, already does not take the place of staple food, but it has many substitutes, such as fast food, household bread machine and so on, are powerful alternative
1.4.5 The power of suppliers is refers to the suppliers of inputs by price negotiation ability to squeeze profits from their customers.
Pastry, bread, food price elasticity is low, so reduce the price to attract consumers and is very special, but the competition is intense, if higher price, the supplier is likely to lose the market.
1.4.6 Buyer power refers to the customer in the purchase price for negotiation ability, through the negotiation ability to reduce seller's profits
Defense capability of the buyers bargaining power is effective, the key is to seize the different tastes of different consumer, teenagers like relative tastes sweeter western-style pastry and older pay attention to eat a balanced diet and less sugar cakes, prefer traditional Chinese cakes.
2．Company analysis
2.1 backgrounds
The limited company of Yunnan JiaHua food was established on August 8, 1988. It consists of JiaHua cake house, JUSTHOT and JiaHua flower cake. Since its inception, the company has been adhering to the “honest practical work” as its standard of behavior. Its product theory won universal praise. It is the best bakery brand in Yunnan province.
2.2 Use SWOT analysis to evaluate JiaHua food
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MGT382 Su Xingyue 11527349
2.2.1Strength
a) JiaHua has good financial status; it has sufficient financial resources to develop the business. JiaHua food was rated as large taxpayer consecutively three years.
b) JiaHua has strong brand name. Many people around of me will choose to buy a birthday cake of JiaHua to celebrate their birthday with friends and relatives. JiaHua flowers cakes are very famous; a lot of the provincial school classmate will choose to buy JiaHua flowers cake as a gift to their teacher.
c) Product innovation ability. Recently, JiaHua food launched many new flavors of cake. I like JiaHua food is a creative, it's a big birthday cake consists of different flavors of cake. Every traditional Chinese festival, JiaHua food introduce pastries to celebrate festival. Such as the Mid-Autumn festival, it will launch a different flavor of moon cakes. During the dragon boat festival, it will launch different flavors of rice dumplings. In the lantern festival, it will launch Tang Yuan.
d) Product quality is better than its competitors. JiaHua pastry with moderate sweet taste, I most like the butter that taste is very good but it doesn't feel greasy. JiaHua has its own rose garden can guarantee the quality of materials.
e) Good customer service skills. JiaHua sales staff is very warm. When you ask for help, them can give you help and keep patience. JiaHua’s order can be able to finish it on time. I go to take the cake has never been waited. At the same time, Shop decoration is very good.
2.2.2 Weakness a) Small market range
It can be seen from the number and distribution situation of enterprise's shop has 82% of the stores in Kunming market, only 18% of the stores in other cities and provinces
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MGT382 Su Xingyue 11527349
b) Management not deep enough
First, I find different JiaHua cake shop has different taste and different appearance. In the central area, its cookies taste better and look better.
Secondly, do not pay attention to details in the launch of new products. The staffs of JiaHua food try to persuade passerby to taste new pastry. But the pastry cut up small pieces looks ugly. Lots of passerines have not desire for eating it.
c) Unique product is less
JiaHua flowers cake is unique but unique products are too little. Most of product can be copy by another cake shop easily. When consumer can buy same product everywhere, the product of JiaHua will not attract consumer, JiaHua will lose market gradually.
2.2.3 Opportunity
a) JiaHua is a wide variety of pastries, sugar content is different. It can meet different consumer demand. For example, Children prefer the sweet, the old and the girl who lose weight like to buy less of the sugar content such as multigrain bread and whole-wheat toast.
b) Market development space is large. Jiahua cake house has been opened in some second-tier cities, the increased market share and increased awareness of the company.
c) Customer loyalty degree is high, the 39% of consumers as respondents of Kunming said they would choose JiaHua in ordinary consumption. A great amount of students choose JiaHua food as breakfast.
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MGT382 Su Xingyue 11527349
2.2.4 Threats
a) Brand more competitive strength
There are a great mass of company in the pastry industry. Different company has owner characteristic and trade promotion. Different company has different taste and price schedule. Every company try them best to fight for market share, but no one can ensure they can still attractive consumer.
b) Alternative products
Almost all of the food can instead of cake especially when consumers feel hunger. It is hard that cakes still keep warm, and if consumers eat so much cake, they will feel thirsty. But rice nodules can deal with the drawback.
c) Rising prices, raw material price increase. a cake include a good deal of raw material, raw material price increase, the company do not sure rising how much will not let the consumer feel unhappy.
d) New industrial threats (DIY cake)
It is no double that the meaning of cake is more important than the taste and
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MGT382 Su Xingyue 11527349
appearance. So consumer prefer to DIY cake to show their wishes.
3. My advice about how to let JiaHua food run well.
3.1 Increasing the number of stores outside Kunming market seek cooperation with similar companies nationally known, to the domestic market development.
3.2 In the name of the enterprise take an active part in or sponsoring all kinds of public activities, expand the market influence. for instance, it can sponsor basketball game or marathon race.
3.3 Enhance the brand's popularity in new markets:
3.3.1 it can learn from the marking program of MengNiu. The company called MengNiu rents some land in the Northern provinces, enterprise own raw materials such as wheat, let consumers know the brand in the region. JiaHua can rent some land to plant rose to let mainlander know JiaHua food more..
3.3.2 JiaHua can take strategy of wall to wall marketing. It can sponsor scholarship for other provinces university with plenty of students. It also can sponsor other activities in the university. This behavior can expand brand awareness in students from other provinces, and spread to the provinces and cities.
3.4 consumers pay some money and under the guidance of staff to enjoy the happiness of yourself making a cake. Every 3 months, JiaHua cake house choose some special DIY cake, giving consumers who DIY well souvenirs. JiaHua food should have a regulation on one day each month, in the case of new products; ensure that every month to the customer different taste sensations.
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