The Four Ps
One of the primary goals of a bakery is to make a profit. It is difficult to thrive as a bakery, and creating quality products is a key to success, but simply excelling at baking doesn’t necessarily equate to more business success
According to a bakery industry snapshot from 2011 by the Center for Economic Vitality, the U.S. baking industry was comprised of commercial and retail baking operations that combined to generate $33 billion in annual revenues. Standing out from the crowd, especially if you are smaller in size, requires some creativity and self-reflection.
When coming up with a business strategy, General Mills suggests using the 4 P’s. This is a marketing model that will help you gain a deeper understanding of your bakery in order to make improvements.
- Product - What are your signature products? Which are the most profitable? How can you grow your most profitable products?
- Price - How do you set prices? Does your pricing cover all relevant costs? Have you considered bundling products to drive sales or margins?
- Promotion - What do you do to promote your bakery? What tools do you use? What’s working best, and how can you do more of it?
- Place - Are there ways you can increase the appeal of your merchandising and front-of-house experience? Are there other ways you can get more products to more customers—such as delivery services?
For more information on the 4 P's, check out this video from Purely Branded:
Whether your bakery is well established or relatively new to the scene, this model can assist you in developing your business.