V. Competitive Analysis
You can download the Bakery business plan template (including a full, customizable financial model) to your computer here.
Direct & Indirect Competitors
The following retailers are located within a 2 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Joe’s Supermarket is the town’s leading grocery store and has been in business for 32 years. Joe’s offers a wide array of all the products that you typically find in a grocery store.
Joe’s also has an in-house bakery. However, less than 10% of the products served in their bakery are made with organic ingredients. In addition, Joe’s offers little variety in their items. For example, they only offer 2 types of soups, 3 types of cookies, etc. [Company Name], on the other hand, offers numerous options for each product type.
Old Time Bakery
Old Time Bakery has been in business for 14 years. Old Time offers a variety of baked goods, primarily cookies and desserts.
However, [Company Name] has several advantages over Old Time Bakery including:
- Old Time Bakery offers few products baked with organic ingredients
- Old Time Bakery does not offer sandwiches, soups or salads
- Old Time Bakery does not offer customer seating
- Old Time Bakery has little parking
- Old Time Bakery is located over one-quarter of a mile from us, and, as such, is less convenient for the office workers who work next to our store.
Freddy’s Deli is located four stores to the East of us. Freddy’s has been in business for the past 21 years and enjoys great success, primarily due to its prime location (which we will also have).
Freddy’s primarily offers breakfast and lunch sandwiches and soups, some cookies and cakes, as well as a variety of packaged goods.
[Company Name] has several advantages over Freddy’s Deli including:
- Freddy’s Deli does not offer products, including pastries, sandwiches, soups and more, made with organic ingredients
- In our product categories, Freddy’s does not offer a wide variety of items.
While we expect that Freddy’s Deli will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the high-quality and organic ingredients we use and product selection.
Supermarket is the town’s leading grocery store and has been in business for 32 years. Joe’s offers a wide array of all the products that you typically find in a grocery store.
Here is the pricing of our key competitors:
|Type of food||Joes||Old Time||Freddys|
|Coffee / Tea||$2.75 - $5.75||$2.95 - $4.50||$2 $5.50|
|Breakfast||$5 - $12||$6.95 - $12.95||$8.95 - $16.95|
|Lunch||$9 - $18||$7.95 - $12.95||$12.95 - $15.95|
|Pastries||$2 - $4||$1.75 - $2.50||N/A|
|Cakes / Bakery||$2.75 - $7 / slice/piece||N/A||N/A|
[Company Name] enjoys several advantages over its competitors. These advantage include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going and leaving the train station, local office workers, and passerby’s going to local shops. We also offer adequate parking making it easy for customers to patronize us.
- 100% Natural/Organic/High-Quality Ingredients: getting 100% Natural/Organic baked goods, soups, sandwiches and more in the local market is challenging if not impossible. No other retailer offers direct substitutes or competition for most of our products.
- Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build branding and awareness of our bakery.