MARKETING PLAN PASTRY

Syndicate - II
HaidirAfesina HendraWinata MitaListyatri AndekPrabowo AprianEkaRahadi ChairunnisaMirhelina MASTER OF BUSINESS ADMINISTRATION Executive SummaryFranciscusXaveriusKresnaP EXECUTIVE 46 Agung Indri Pramantyo
MM 5008 - Marketing Plan Document PriyantonoRudito, Ph.d

29111311 29111328 29111329 29111338 29111344 29111384 29111387 29111393 April 2012

EXECUTIVE SUMMARY

Bandung is not only famous with its traditional food, but also home of homemade with international tastes. One of the industry which is very popular recently is Pastries Industries. It is because their taste and also becoming accompanied meals during free time. Regardless of their small size, but the appearance and also the price is worth for money. So that is becoming the new lifestyle. MBA ITB Bandung as a very famous business school in the region, should have it on their canteen menus. First, most of the students are those who following trend. Second, MBA ITB will generate more revenue by having pastries on their canteen. Third, MBA ITB is able to become the first school which sell Bandung`s well-known pastries product. This marketing plan covers a detailed marketing strategy to make MBA ITB gain revenue within one year ( starts May 2012 to April 2013) and reach the break even point in June 2012. The tactic is based on market research result (both of online, paper and food testing) to MBA ITB reguler and executive students. Then being a reseller is the business model that will be used. The supplier has been choosen based on their popularity in Bandung and also among the MBA ITB students. However the price is the most important factor while choosing it. It is because the main target market is within MBA ITB. Therefore Pasto Pattiserie as the name of the brand, for MBA ITB Bandung students, is the pastries that delivers one stop pastries shopping from Bandung`s well known company with affordable price.

TABLE of CONTENT

1 2

Background .................................................................................................................... 4 Situation analysis .......................................................................................................... 4 2.1 Market Analysis ...................................................................................................... 4 Customer Need Analysis .................................................................................. 4 Market Potential Analysis ................................................................................ 7 2.1.1 2.1.2 2.2

Industry Analysis: TOWS Analysis ........................................................................ 8

3 4

Marketing Objective ...................................................................................................... 9 Marketing Strategy ....................................................................................................... 9 4.1 4.2 4.3 4.4 Market Segmentation ............................................................................................. 9 Targetting ................................................................................................................ 9 Positioning ............................................................................................................. 10 Differentiation ....................................................................................................... 10 Product .................................................................................................................. 10 Product USP ................................................................................................... 13 Product Portofolio ........................................................................................... 13 Inventory Level ............................................................................................... 14 Brand Concept ................................................................................................ 14

Marketing Mix ............................................................................................................. 10 5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.2 5.3 5.4

Price ....................................................................................................................... 15 Place ...................................................................................................................... 15 Promotion .............................................................................................................. 15

6 7 8 9 10 11

Action Programs .......................................................................................................... 17 Financial Plan Forecasting.......................................................................................... 18 Controls ........................................................................................................................ 21 Conclusion .................................................................................................................... 21 Reference .................................................................................................................... 22 Appendix .................................................................................................................... 22

1 Background
As one of the famous leading business school in Indonesia, it is a must for SBM MBA ITB Bandung to have a very modern canteen. The reason is that students like to spend their time in a canteen not only to eat but also to do their assignments. One of the attractions is the food menu. MBA ITB Bandung`s canteen has a very limited choice in terms of food especially desert. As a fact, desert is type of food that people like to eat on their free time i.e. pastry. In addition, Bandung is very famous with their homemade pastries. Lots of well-known brand out there such as Harvest, Kartika Sari, Prima Rasa and also other famous home made style. Therefore, it will be a very good idea if there are pastry products at MBA ITB Bandung`s canteen. According to Wikipedia, Pastry is defined as a sweet-baked products made from dough. Most of pastries are having a beautiful appearance, colourful, great tastes and also affordable price. Even though their size is small, but it is enough to fulfil people hunger. Therefore it is become a life style for having pastries on every place in Bandung. Thus Syndicate II establishes Pasto Patisserie, so that it can accommodate students with pastries products in the canteen. This marketing plan will describes the tactical solution of bringing famous pastries products from famous brand in Bandung to MBA ITB. The tactic itself is based on questioner analysis (both of online and paper). In addition, it will define the break-even point within one year.

2 Situation analysis
Pasto Patisserie is starting to operate in May 2012. Its products have been well accepted based on random testing to MBA students. Therefore the marketing plan will be the key to develop the brand and the product awareness.

2.1 Market Analysis

2.1.1 Customer Need Analysis Paper based on online questioners are being used in order to analyze need and wants from MBA ITB students regarding pastries products. The questioner is being taken from

April 13th,2011 April 17th, 2011. The total papers based are 32 and 38 for online. However, not all questioners answer are being followed to the instruction in each questions.
Table 1. Quesioner's Result

No . 1.

Question/Answer How often in a week you go to the MBA ITB canteen? a. 1 b. 2 c. 3 d. 4 e. 5 f. >5

Number Choosen

14 15 13 1 1 21

2.

How much is the maximum budget to buy a pastry? a. <= Rp 10,000 b. Rp 10,001 - 20,000 c. Rp 20,001 - 30,000 d. Rp 30,001 - 40,000 31 35 4 1

3.

Choose three (3) of the following pies that you prefer a. Apple strudle b. Banana Chocolate c. Banana d. Banana Cheese e. Bolen Banana Cheese f. Banana Cheese Chocolate Pizza g. Sausage Pizza 32 25 9 25 25 17 29

4.

Choose two (2) flavors of the following macaroon that you prefer a. Green Tea 29

b. Coffee c. Chocolate d. Raspberry e. Manggo f. Pistachio 5. Choose three (3) of the following slice of cake that you prefer a. Blueberry Cheese b. Chocolate Cheese c. Strawberry Cheese d. Tiramisu 6. What kind of pastries that you like from the following products? a. Pie b. Macaroon c. Slice cake 7. If you purchase for a souvenir, which packaging that you like? a. Paper bag b. Box Karton c. Plastic bag d. Styrofoam 8. What is your favourite pastry shop in Bandung? a. Harvest b. Prima Rasa c. Soes Merdeka d. Home Made
* The one in bold is the highest choosen answer

30 36 10 13 12

41 31 36 49

18 8 43

43 25 2 0

28 35 2 5

Here is the guidance in order to set up the plan based on the above results; a) Product price range is not more than Rp 20,000,b) Pastry flavour;

Table 2. Flavor for each kind of Pastry

Name Pie Macaroon Slice Cake

Flavour Apple strudel, Sausage Pizza Chocolate, Green Tea Tiramisu, Blueberry Cheese, Chocolate Cheese

c) Product priority among three kind of pastries; 1. Slice cake 2. Pie 3. Macaroon d) Paper bag is being chosen for packaging (take away). 2.1.2 Market Potential Analysis MBA ITB students in 2011 and 2012 are our market potential, including the next future students from 47 batch (middle 2012) and 48 (beginning 2013). From the data below, the students is always increasing in every batch.

Figure 1. MBA Students Trend

Source: MBA SBM ITB Bandung academic

Below is the complete data of each batch at MBA SBM ITB Bandung
Table 3. MBA Students

Year 2009 2010 2011 2012

Regular R40: 42 , R41: 85 R42: 55 , R43: 58 R44: 60 , R45: 106 R46: 64 X40: 25, X41:25 X42: 34, X43:31 X44: 29, X45:39 X46: 37

Executive

Source: MBA SBM ITB Bandung academic

2.2 Industry Analysis: TOWS Analysis

The following TOWS analysis captures threat and opportunities facing Pasto Pattiserie and also the key strength and weaknesses within MBA ITB Bandung`s canteen products. TOWS is being choosen to make us focus with the growth of the product in the future, by seeing opprtunities. Therefore it is future oriented.

Figure 2. TOWS Analysis

3 Marketing Objective
The aim of this marketing plan is to propose pastries product as MBA ITB Canteen menu. The objectives are; To offer MBA students a unique food alternative with affordable prices and luxury taste To achieve profit by Rp. 91,030,004 (35.4 %) in May 2013 To make MBA Canteen as a preferred place for pastries

4 Marketing Strategy
4.1 Market Segmentation
The segmentation is MBA ITB students (both of executive and reguler) along with Civitas (alumni).
Table 4. Market Segmentation

Class Executive Regular Civitas ITB X40 25 42 X41 25 85 Total 50 127 2010 X42 34 55 X43 31 58 Total X 65 113 2011 X44 29 60 X45 39 106 Total 68 166 2012 X46 37 64 Total 37 64 All Total 220 470 X Source: MBA SBM ITB Bandung academic

Years 2009

4.2 Targetting
Targetmarkets focus on regular students of MBA ITB, with the total up to date (April 2012) is470.Regularstudentshavegreat potentials ithas an intensitygreaterpresenceoncampus rather than the executive. Regular students have their class from Mondayto Friday, while Executive only Fridayafternoon andSaturday. Then the average regular students under 30 years old that have a better knowledge and preference regarding pastries products.

Table 5. Targetting MBA ITB Students 2010-2012

Civitas MBA ITB Total

Eksekutif 170

Regular

All Total 513

343

Source: MBA SBM ITB Bandung academic

4.3 Positioning
The canteen has not provided a pastry on their menu yet. In contrast with MBA students lifestyle nowadays. Therefore they need something like snacks while enjoy their time in canteen, not only relax time, but also doing their class assignment. So that, for MBA ITB Bandung students, Pasto Pattiserrie is the pastries the real campus pastry outlet that delivers Bandung`s well known pastries product with affordable price and luxury taste because only Pasto Pattiserrie is the only MBA ITB student`s choice.

4.4

Differentiation

We offer three types of pastries. They are slice cake, pie, and macaroon. Our primary product is the slice cake as it isthe most avorite menu according to the survey. Slice cake will be produced by Green Cake which is a cake store with a high sense of imagery according to the survey result of slice cake. The flavors are Tiramisu, Blueberry Cheese, Chocolate Cheese. Then we do also have product from El Cielo (a homemade brand) as another value.

Marketing Mix

Pasto Pattieserie`s marketing mix comprises the following approaches to four P`s (product, price, place and promotion).

5.1

Product

According to Wikipedia, Pastry is defined as a sweet-baked products made from dough. Pastry, a type of food that is light and commonly serve as a dessert. There are lots of pastry types in the market. However, we mainly focused on cookies, slice cakes and pies. Then, we provide two types of flavor i.e. sweet and savory.

Table 6. Pastry Flavour

No 1. 2. 3.

Kind of Pastry Pie Macaroon Slice Cake

Flavour Apple strudle, Pizza sosis Chocolate , Green Tea. Tiramisu, Blueberry Cheese, Chocolate Cheese.

Based on quesioners result:

Figure 3. Pie Chart from Quesioner's Result for Pie

Figure 4. Pie Chart from Quesioner's Result for Slice Cake

Figure 4. Pie Chart from Quesioner's Result for Macaroon

There are 4 suppliers, which has been chosen for getting the product. They are Prima Rasa, Green Caf, Soes Merdeka and El cielo (homemade).The reasons for choosing those suppliers is becaus it represents three segmentation base on surveys result that indicate the rank of willingness to buy also their preference.
Table 7. Pastry Supplier

No 1. 2. 3.

Kind of Pastry Slice Cake Pai Macaroon

Supplier Green cake and Home made (El Cielo) Soes Merdeka Prima Rasa

1) Green Cake Strawberry

2) Green Cake Chocolate Cheese 3) El cielo Tiramisu

4) Prima Rasa Macaroon 5) Soes Merdeka Apple Strudle 6) Soes Merdeka Sausage Pizza Source: Green Cake, El cielo and Soes Merdeka

The size for slice cake is 6 cm (length) x 4 cm (width) x 2 cm ( height). Then for the macaroon is 3 cm for diameter, and for tiramisu is 150 gr nett weight per cup. Students testimoni on food testing: Slice Cake, flavor Apple Strudle Savory, sweet and mint sensation by Andek Macaroon, flavor Chocolate The softest chocolate I ever taste!! by Hendra Pie, flavor Pizza Sossis The sausage is tender and so yummie. by Mita 5.1.1 Product USP Tiramisu homemade is the USP in our product. It is a product that become a trademark or specialization in ours. Tiramisu is becoming the usp not only because of homemade but from its taste, ingredients, size and flavour. The size is 150 gr nett weight per cup along with luxury unique taste i.e. low sugar added with some organic ingredients. The taste become luxury as the one who made the product is pastry chef who has worked at international five start hotel in Dubai i.e. Al Burj arab. Therefore after many years overseas , he collected all the best recepies of tiramisu combine with Indonesian taste. Then for those who would like to have it deliveried, it can be done exclusively for tiramisu homemade from Elcielo.

5.1.2 Product Portofolio The product categories are slice cakes, pies and macaroon. These are taken based on survey results. However, the opportunity for having more varieties are high. It is because the supplier that we choose are able to give other product such as Gelato homemade from Elcielo. In the meantime, we are focusing on these three products.

5.1.3 Inventory Level To control our inventory level approach to the real demand, the forecasting is really important. Therefore it based on the future condition (peak or low season) and historical selling data. We try to make the inventory level is not below from the real demand and prefer to little excess. It is because our inventory infrastructure called refrigerator and pastry product can be stocking in 3 days maximum to maintain the quality and freshness. Therefore a refrigerator has an important role in our inventory system.

5.1.4 Brand Concept Pasto Patisserie is the name that the product will be marketed. The meaning of it is pass your story everytime you have the pastries, as here the only place that people can find a variety of pastries products from well-known brand in Bandung in campus society. Logo

Purple is being choosen for the color to describe the elegant of the company. The logo is a picture of tiramisu in a cup and the line is continously to descrbing that the taste of product is ever lasting. We believe that the cost effeciency when it goes to banner and packaging in terms of color and difficulty level.

Tagline Pass Your Story is being choosen to encourage people, they share and tell family and friends about our delicious pastries at MBA ITB after eating our pastries.

5.2 Price
Based on questioners results, maximum price is Rp 20,000,-. As a reseller, there will be a higher price compare with the store. However, the value based pricing is our concept. Thus with the amount that people play, they will find their favourite products at our outlet. In addition, there is also the free of charge delivery service for those who order Elcielo product i.e. Tiramisu.

5.3 Place
The place will be at MBA ITB campus. The space will be taken at canteen.

5.4 Promotion

Below the line advertisement is the strategy to be used in order to promote the product. Not only because it is easier but also for cost efficiency. The promotional output will convey the clear message that Pasto Pattiserrie at MBA SBM ITB canteen is the right place to have pastries for students with luxury taste from well known brand and affordable price. The media campaign is using internet and also actively presence in any ITB activities. So that students are aware with our presence.

Table 8. Promotion Media

Media Internet Magazine Publicity

Example ITB website, Facebook, Twitter, Blog, Civitas Email MBA ITB Business Review ITB Radio, ITB`s event

6 Action Programs
Below is the timeline of Pasto Pattiserie's action programs for the first year;
Table 9. Action Plan Time Line

YEAR 1
Brand Awareness
Facebook,twitter,Blog Advertising Civitas Email Advertising Banners on MBA Entrance Product Banner at MBA-ITB Special Event eq. Graduation Campus Magazines Bussines review

2012 May June July Aug Sept Oct Nop Dec Jan Feb

2013 Mar Apr

Knowledge
Pasto Patisserie In MBA-ITB website Facebook,twitter Official Page Article Poster at MBA-ITB Event

Actual Purchase
Special price and service for Idul Fitri, Xmas
Food Stall or Special Display in MBA-ITB Events Special Price for B'day and function

7 Financial Plan Forecasting

This is the financial overview of Pasto Pattiserrie related to marketing activities. We address break even analysis, sales forecast, expense forecast and indicate how these activities link to marketing strategy.
Table 10. Financial Plan Forecasting
Month

No
I

Description
Revenue (Sales) Apple strudle pizza sosis Macaroon slice cake Total Revenue

Sales

Unit
Sold/(pieces/ month)

1 May
Rp./month

2 June
Sold/(pieces/m onth) Rp./month

3 Jul
Sold/(pieces/month) Rp./month

4 Aug
Sold/(pieces/ month) Rp./month

5 Sept
Sold/(pieces/m onth) Rp./month

6 Oct
Sold/(pieces/m onth) Rp./month

7 Nov
Sold/(pieces/mo nth) Rp./month

8 Dec
Sold/(pieces/m onth) Rp./month

9 Jan
Sold/(pieces/ month) Rp./month

10 Feb
Sold/(pieces/ month) Rp./month

11 March
Sold/(pieces/ month) Rp./month

12 Apr
Sold/(pieces/m onth) Rp./month

TOTAL

90%

90%

30%

60%

100%

130%

100%

90%

80%

100%

100%

130%

7,500 8,000 6,000 17,000

Rp./piece Rp./piece Rp./piece Rp./piece

864 756 648 432

Rp/day

6,480,000 5,670,000 4,860,000 3,240,000 20,250,000

864 756 648 432

Rp/day

6,480,000 5,670,000 4,860,000 3,240,000

Rp/day

288 252 216 144 281,250

2,160,000 1,890,000 1,620,000 1,080,000 6,750,000

576 504 432 288

Rp/day

4,320,000 3,780,000 3,240,000 2,160,000

960 840 720 480

Rp/day

7,200,000 6,300,000 5,400,000 3,600,000

1,248 1,092 936 624

Rp/day

9,360,000 8,190,000 7,020,000 4,680,000

Rp/day

960 840 720 480

7,200,000 6,300,000 5,400,000 3,600,000

864 756 648 432

Rp/day

6,480,000 5,670,000 4,860,000 3,240,000

768 672 576 384

Rp/day

5,760,000 5,040,000 4,320,000 2,880,000

960 840 720 480

Rp/day

7,200,000 6,300,000 5,400,000 3,600,000

960 840 720 480

Rp/day

7,200,000 6,300,000 5,400,000 3,600,000

1,248 1,092 936 624

Rp/day

9,360,000 8,190,000 7,020,000 4,680,000 29,250,000 256,968,750

843,750

843,750 20,250,000

562,500 13,500,000

937,500 22,500,000 1,218,750 29,250,000

937,500 22,500,000

843,750 20,250,000

750,000 18,000,000

937,500 22,500,000

937,500 22,500,000 1,218,750

II Expenses Food Cost Apple strudle pizza sosis Macaroon slice cake Other Cost Equipment expense (avg.) Fix Cost Direct labouR Depreciation Profit Saharing 3rd Party Total Expenses III Net Profit

4,000 7,500 5,000 13,000 50 1,200,000

Rp./piece Rp./piece Rp./piece Rp./piece Rp./piece Rp./month

864 756 648 432

3,456,000 3,024,000 2,592,000 1,728,000 135,000 1,080,000

864 756 648 432

3,456,000 3,024,000 2,592,000 1,728,000 135,000 1,080,000

288 252 216 144

1,152,000 1,008,000 864,000 576,000 45,000 360,000

576 504 432 288

2,304,000 2,016,000 1,728,000 1,152,000 90,000 720,000

960 840 720 480

3,840,000 3,360,000 2,880,000 1,920,000 150,000 1,200,000

1,248 1,092 936 624

4,992,000 4,368,000 3,744,000 2,496,000 195,000 1,560,000

960 840 720 480

3,840,000 3,360,000 2,880,000 1,920,000 150,000 1,200,000

864 756 648 432

3,456,000 3,024,000 2,592,000 1,728,000 135,000 1,080,000

768 672 576 384

3,072,000 2,688,000 2,304,000 1,536,000 120,000 960,000

960 840 720 480

3,840,000 3,360,000 2,880,000 1,920,000 150,000 1,200,000

960 840 720 480

3,840,000 3,360,000 2,880,000 1,920,000 150,000 1,200,000

1,248 1,092 936 624

4,992,000 4,368,000 3,744,000 2,496,000 195,000 1,560,000

700,000 Rp./month 101,667 Rp./month 0%

700,000 101,667 0 12,816,667 36.7% 7,433,333 36.7%

700,000 101,667 0 12,816,667 7,433,333 28.8%

700,000 101,667 0 4,806,667 1,943,333 34.7%

700,000 101,667 0 8,811,667 4,688,333 37.1%

700,000 101,667 0 14,151,667 8,348,333

700,000 101,667 0 18,156,667 37.9% 11,093,333

700,000 101,667 0 14,151,667 37.1% 8,348,333 36.7%

700,000 101,667 0 12,816,667 7,433,333 36.2%

700,000 101,667 0 11,481,667 6,518,333 37.1%

700,000 101,667 0 14,151,667 8,348,333 37.1%

700,000 101,667 0 14,151,667 8,348,333 37.9%

700,000 101,667 0 0

18,156,667 156,470,000 11,093,333 91,030,004

Table 11. Investment Cost

Investment Cost Etalase fridge cooler Equipment (Knife,spoon,bin) Catalarise Total Investment Cost

3,500,000 2,000,000 100,000 500,000 6,100,000

The break even analysis indicates that Rp. 22,500,000 will be required in monthly sales revenue to reach the break-even point and get profit after one year operation at 35.4%.

8 Controls
Marketing control is the process of monitoring the proposed plans as they proceed and adjust where neccessary. Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control marketing plans. Control involves setting standards. The marketing manager will then compare actual progress with the standards. Corrective action (if any) will be taken. If corrective action is taken, an investigation will also need to be undertaken to establish precisely why the difference occurred. The following areas will be monitored to gauge performance; Revenue: monthly and annual Expenses: monthly and annual Milestone calender Customer satisfaction New product development

9 Conclusion
There are three points to be consider before launching new product. First STP (Segementation, Targeting, Positioning) should be clearly defined by any company. So that the product will be correctly targeted to the customer, in this case is pastries for MBA ITB Bandung students. Second, a well understanding of customer need analysis is needed to choose kind of product to be offer to customer. Therefore market research has an important role . Third, a business model that the company would like to choose has to be analyze. Pasto Pattiserrie use a a reseller busines model for MBA ITB canteen. The reason is not only for cost effeciency in terms of production and advertising, but also as a differentiation for both of MBA ITB and supplier.

10 Reference
Ghauri, P and Cateora, P (2006) International Marketing, New York: McGraw-Hill Education Kotler, Philip, Keller, Kevin Lane, Ang, Swee Hoon, Leong, Siew Meng and Tant, Chin Tiong (2009) Marketing Management: An Asian Perspective, Singapore: Prentice Hall http://www.mplans.com/organic_bakery_marketing_plan/marketing_vision_fc.php http://twitter.com/#!/el_cielo189 http://www.soesmerdeka.co.id/?call=katalog http://duawarnapaperbag.multiply.com/journal/item/5/Tabel_Ukuran_dan_Harga_Paper _Bag http://en.wikipedia.org/wiki/Pastry

11 Appendix

Paper Bag

Fridge Cooler Etalase

Kuesioner Survey Online