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STUDENT DETAILS
ID
Phone no.

26260875
0449767417

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address the College will use to communicate with you.

SUN
Given names
RUYUE
rsun41@student.monash.edu
Family name

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ASSIGNMENT DETAILS
Unit name
Marketing
Assignment title

Unit code
1
MCD2050
Assignment 2: Major Assignment: Business Report

Lecturers name

Kimble

Tutors name

Vishwa

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Monday, Friday

Tutorial time

10.30a.m.-12p.m., 12p.m.-1.30p.m.

Due date

Dec 14,2014

Date submitted

Dec 16,2014

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RUYUE SUN

Date

Dec 14, 2014

Cover Page

Organisation: Breadtop
Specific Offer: Cake

Student Name: RUYUE SUN (Serena)

Student Number: 26260875
Assignment: Marketing Assignment 2 - Major Assignment
Teacher: Vishwa
Word count: 2155
Table of Contents
Executive Summary

1.

Introduction
1.1 Purpose
1.2 Scope
1.3 Background
1.4 Assumption
1.5 Limitations
2. Background information
2.1 Industry
2.2 The microenvironment
2.2.1 Organisation
2.2.2 Suppliers
2.2.3 Intermediaries
2.2.4 Publics
2.2.5 Customer
2.3 The macroenvironment
2.4 Economic
2.5 Natural
3 Competitors
3.1 Competitor 1: Cupcake bakery Pty Ltd
3.2 Competitor 2: Brunetti
4 Product
4.1 Classification
4.2 Level
4.2.1 Core product
4.2.2 Actual product
4.2.3 Augmented product
5 Target segment
5.1 Physiological needs
5.2 Safety needs
5.3 Esteem needs
6 Evaluation of offer: Cakes
7 Recommendations
8 Conclusions
Reference list

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Executive Summary
The bread and cake retailing industry is predicted to experience a substantial increase over the
next five years. Industry revenue has grown consistently since 2011-12. The report focuses on
Breadtop Pty Ltd. And the major competitors are Cupcake bakery Pty Ltd and Brunetti. The
microenvironments mentioned in this report are organisation, suppliers, intermediaries, publics
and customers. The macroenvironments listed are economic and nature. The specific offer of this
report is cake. The core products of it are delicious taste and visual enjoyment. The actual
products are Breadtop brand name, cakes, gift boxes, plastic tableware, safety and highly quality,
cake packaging and labelling and distinctive design. The augmented products are online
shopping, free of charge returned or exchanged and holiday special offer. Household consumers
will be the target segment this report is going to discuss. There are three recommendations for
Breadtop: adding take-away food service and membership system and improving its official
website.

1. Introduction
1.1. Purpose
The purpose of this business report is to review the appropriateness of various kinds of
cakes designed and produced by Breadtop for its household consumers based on relevant
marketing theory.
1.2. Scope
This business report focuses on the Bread and Cake retailing industry in Australia market
and the whole Breadtop organisation.
1.3. Background
Over the past three years, the rising demand for premium products that attract higher prices
and profit margins has driven the bread and cake retailing industry performance. And this
premium trend will continue to benefit the industry in 2013-14. Breadtop organisation was
founded in 2002. It now has over 60 branch stores throughout Australia. Breadtop offers
more than 200 varieties of bread, cakes and other products.
1.4. Assumption
The specific offer this report focuses on (cakes) is satisfying all target segment needs and
wants.
1.5. Limitations
The useful information provided in the Breadtop official website is finite. My study on
some specific aspects such as the company's status of operation is restricted. The time
constraint is from 1998-2014.
2. Background information
2.1. Industry
6

Retailers in this industry sell a range of bakery items including bread, cakes, pastries and
biscuits (ISIB World, 2014).
The industry is predicted to experience a substantial increase over the next five years.
Industry revenue has grown consistently since 2011-12. Industry revenue is forecast to
grow at a compound annual rate of 1.8% over the five years through 218-19, to reach
$868.2 million. Major players in this industry are retail Food Group Limited (RFG) which
has a market share of 26.4% and other companies. Breadtop Pty Ltd and the Cupcake
Bakery Pty Ltd occupy 4.8% and nearly 1.0% market share respectively. Bakers Delight
holds a healthy 12.7% market share while Brumbys bakery occupies 7%.
2.2. The microenvironment
2.2.1. Organisation: Breadtop Pty Ltd
Breadtop Pty Ltd was founded in Box Hill in 2002 and has expanded to over 60 stores
nationally. Its rapid growth boosts Breadtop's development so that it reaches almost 5%
market share in only 10 years. Breadtop provides various products which focus on Asian
cuisines. Breadtop stores also sell products suited for westerners.
2.2.2. Suppliers
Centralised production factories in Victoria, New South Wales, Queensland and South
Australia supply products to franchises. Breadtop's central food processing factory in
Melbourne was first accredited by HACCP for its hygiene and high food safety standards.
2.2.3. Intermediaries
Resellers for Breadtop include Box hill shopping centre, Chadstone shopping centre,
Clayton shopping centre, Glen Waverley shopping centre and so on.
2.2.4. Publics
2.2.4.1. Media publics
Australian, The Australia newspaper has an actual impact on Breadtop's operations.
Because the articles published on it would have a potential influence on consumers. For
example, the article "Breadtop strikes deal over underpayments" published on January
23th, 2014 would affect Breadtop's reputation (Australia newspaper, 2014).
2.2.4.2. General publics
Breadtop set up its facebook homepage and twitter homepage to publicise its latest
information such as Breadtop fabulous cakes for this Christmas to encourage publics to
interact with them.
2.2.5. Customer
2.2.5.1. Consumer market

According to the bread and cake retailing industry report (IBIS World, 2014), household
consumers demand bread as part of their staple diet. And consumers demand cakes as part
of their weekly shopping purchases.
2.2.5.2. International market
Breadtop harbor bigger ambitions, including expansion of the franchise overseas. Breadtop
had already registered its trademark in Vietnam and was doing the same in the United
States and New Zealand.
2.3. The Macroenvironment
2.3.1. Economic
Martin (2010) suggested that bakeries have traditionally weathered recessions well, but the
drawn-out recovery will continue to be a drag on the bakery industry. In 2010, the
economy will be the most influential factor affecting bakery businesses, but bakers will
need to watch and adapt to several other trends in the marketplace to retain and attract
customers. These trends will affect the bakery industry as a whole, from large commercial
bakeries to small retail bakeries.
2.3.2. Natural
According to Kotler et al., (2013, p.133-134) environmental concerns have grown over the
past two decades. Wheat, flour and sugar are key inputs in most bread and cake items.
Domestic wheat prices largely depend on rainfall. Likewise, the domestic price of sugar is
heavily affected by weather fluctuations. As a result, the prices of wheat, flour and sugar
have increased which have contributed to rising purchase costs for bread and cake retailers
over the past five years.
3. Competitors
3.1. Competitor 1: Cupcake bakery Pty Ltd
The cupcake bakery was founded in 2006 by husband and wife team. The first store was
opened in 2007 in Sydney. They have been working on building their company and brand
ever since. Now the company is expanded into Melbourne, Sydney and Brisbane and the
market share is nearly 1%.
3.1.1. Competing offer: Cupcakes
There are 20 basic cupcakes produced by Cupcake bakery. The designs and patterns try to
satisfy consumers' needs and wants better. For example, the fruit- flavor cupcakes (lemon
and poppyseed cake, vanilla strawberry cake, banana cake, etc.) are more for females.
There are also different flavoured cakes suit for younger generation, such as chocolate
cakes, cheese cakes, vanilla flavoured cakes and so on. The most attracting about these
cupcakes is that consumers can order and design their own cupcakes whether they plan to
8

promote business, celebrate a company milestone, organise a business function or need to

make a sale pitch. Cupcake bakery can create edible images on each cupcake which is sure
to make the right impression. In addition, the company provides delicate gift boxes to wrap
up a little bit of sunshine to properly celebrate some special occasions. All products
Cupcake bakery provided can order online.
3.2. Competitor 2: Brunetti
Brunetti began trading at the Faraday street location in 1985. Over the years, Brunetti has
become so popular that in April of 2005 another Brunetti caf opened in Melbournes City
Square, followed by a caf in Camberwell (October 2007) and another in Myer Melbourne
(October 2010). With Brunettis expansion across Melbourne, an international location
opened its doors. Tanglin Mall, Singapore, welcomed Brunetti in September 2011.
3.2.1. Competing offer: Cakes
There are four different kinds of cakes in Brunetti: celebration cakes, special occasion
cakes, children's cakes and wedding cakes. The celebration cakes occupy the largest part.
They are in distinct shapes, patterns and sizes and cover almost all flavours for different
consumers. The name or words customers want to put on special occasion cakes can be
designed by themselves. And they are also given a gift boxes which can also be
customised. Children's cakes are produced into popular cartoon figures in bright colors. As
for wedding cakes, they are available in mud cake, sacher torte, fruit cake, opera cake, and
torta di arancia. They are different-tiered and are decorated with flowers like roses and
orchids.
4.

Product

4.1. Classification
Cakes are consumer products which are bought by final consumers for personal
consumption (Kotler et al., 2013, p.279). Cakes are also convenience products. According
to Kotler et al. (2013) convenience product are consumer goods and services that people

usually buy frequently, immediately, and with a minimum of product comparison and
buying effort.
Household expenditure survey from 1998 to 1999 (Australian Bureau of Statistics, 2000)
found that in the 12 months to June 1999, Australian households spent an average of $699
each week on goods and services. Average household expenditure on bakery products,
flours and cereals was $15 per week, the largest components being bread ($6), cakes, tarts
and puddings ($3) and biscuits ($3). That proves the frequent purchase and little shopping
effort of cakes.
4.2. levels
4.2.1. Core product
For cakes in Breadtop, the core benefits are the delicious taste and visual enjoyment for
different cakes. People who buy cakes are less interested in keeping the physical cakes
and more interested in enjoying the fantastic appearance and then tasting them to satisfy
their need.
4.2.2. Actual product
For cakes in Breadtop, the actual products are Breadtop brand name, cakes, gift boxes,
plastic tableware, safety and highly quality, cake packaging and labelling and distinctive
design. Because of the long history of Breadtop, the Breadtop brand name is powerful.
Breadtop use brand strategy which is establishing this brand imagery with the peculiar
font and combination of Chinese and English for a long time to reinforce the consumer
loyalty and result in customers demanding this brand. And "Breadtop" will be written on
chocolate slices topped on some cakes. Breadtop also consistently offer higher-quality
cakes at a given price. There is a board on every franchise wall that reads "every product
is produced today." There are many kinds of ice cream cup in Breadtop, such as green tea
ice cream cup, mango sorbet ice cream cup and so on which are specially packaged. They
produce the special container and wrapper with brand name, flavours explanation and
beautiful pictures printed on.
4.2.3. Augmented product
10

For cakes in Breadtop, the augmented products include online shopping, free of charge
returned or exchanged and holiday special offer. There is online shopping service on its
official website homepage. And the company promises they are totally responsible if
there's a quality problem with their products. They will also release some special activity
during every Chinese and western holiday. Breadtop set up its facebook homepage and
twitter homepage to publicise its latest information such as Breadtop fabulous cakes for
this Christmas to encourage publics to interact with them.

Free of charge
returned or
exchanged
Breadtop brand name
Cakes

Online
shoppin
g

Cake
packagi
ng and
labelling
Gift boxes

Delicious
taste

Visual
enjoyment
Safety
and highly

Distincti
ve
design
Plastic
tablewar
e

Holida
y
special
offer

quality

5.

Social website
homepage

Target segment
The target segment for Breadtop cakes could be described as household consumers.
This segment is aged between 16-49 years old and is within young, single and young,
married, with children family life cycle stage. Given the price of the cakes, the income range
would be between under $15000 or $15000-$50000. The occupation of this segment would
range from students, housewives, white collar, retired, administration and managers. The
values they hold are based on basic needs and healthy eating. They are mainly traditional
family life and conventional family life. The benefits they seek from the cakes include
quality, safety and convenience. Their loyalty status is medium and their attitudes towards

cakes are enthusiastic and positive.

The key needs of the segment include physiological needs, safety needs and esteem needs.
5.1. Physiological needs
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The main function of cakes is to solve people's hunger problem.

5.2. Safety needs
Making healthy products and finding ways to eat better and promote a healthier lifestyle are
on the top of consumers' to-do lists (Lauren, 2012). Lauren (2012) also explained that
consumers are paying more attention to labels and ingredients, so clean labels are more
prevalent. Clean labels are also a prime opportunity to tout the nutritional benefits of
ingredients.
5.3. Esteem needs
According to bread and cake retailing industry report (IBIS world, 2014), When consumers
are confident about their future income, they are more willing to spend their current
disposable income. Poor consumer sentiment negatively affects demand for non-essentials,
such as cakes and pastries. Therefore, buying cakes is a hint of consumers' positive
6.

sentiment which results in recognition and status seeking.

Evaluation of offer: Cakes
Household expenditure survey from 1998-1999 (Australian Bureau of Statistics, 2000)
revealed that average household expenditure on food and non-alcoholic beverages was $127
per week. The most significant items of food expenditure were bakery products, flours and
cereals ($15), the largest components being cakes, tarts and puddings ($3). Certainly, cakes
satisfy household consumers' physiological needs. There are numerous public policies to
promote a healthy diet. Studies conducted to analyse the existing measures to promote
healthier eating counted 121 policy interventions in 2011 (Capacci et al., 2012). Breadtop's
central food processing factory in Melbourne was first accredited by HACCP for its hygiene
and high food safety standards. So quality assured cakes provided by Breadtop satisfy
consumers' safety needs. There has been a good deal of work trying to categorize consumers
according to their food-related lifestyle (Brunso and Grunert, 1998; Grunert et al., 1997,
2001a), which is defined as the general pattern of how consumers use food to fulfill basic
motives or attain life values, and of which quality perception is an important component.
Therefore, cakes are one kind of the food household consumers can use to satisfy their

7.

esteem needs.
Recommendations
Breadtop should increase the level of augmented product. They should add delivering takeaway food service. And this service should reflect both in every franchise and on official
website homepage. Breadtop should also set up membership system. They should release the

12

V.I.P. cards to regularly customers. Finally, Breadtop should improving its official website to
8.

make it more comprehensive for the products and the company's introduction.
Conclusions
In conclusion, Breadtop is responding to the ever-changing marketing environment flexibly.
It uses specific marketing strategies to survive and compete in the industry. Therefore,
Breadtop can make an impressive progress in the future.

Reference list
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2013). Marketing (9th ed.).
Frenchs Forest, Australia: Pearson Australia.
Martin, K. (2010). Bakery industry forecast: How it all adds up. Baking Management, 14(1),
n/a.
Lauren, R. H. (2012). Teeing up in the bakery market. Snack Food &Wholesale Bakery,
101(6), p.16-17.
Grunert, K.G. (2007). How consumers perceive food quality. Understanding Consumers of
Food Products (pp. 181-199).
13

Marotta, G., Simeone, M., & Nazzaro, C. (2014). Product reformulation in the food system
to improve food safety. Evaluation of policy interventions. Appetite, 74, 107-115.
Tonkin, B. (2014). IBISWorld Industry Report: Bread and cake retailing in Australia
(Inquiry Report No. G4129). Australia. Retrieved from http://www.ibisworld.com.au.
Breadtop, (2014), Fresh bread, cakes, biscuits & pastries Australia. Retrieved from
https://www.breadtop.com.au/
Brunetti, (2014), Cakes. Retrieved from http://brunetti.com.au/
The cupcake bakery, (2014), Welcome to the cupcake bakery. Retrieved from
http://www.thecupcakebakery.com.au/
The Brumby's Story, (2013), Brumby's bakery. Retrieved from http://www.brumbys.com.au
Healthy eating, (2014), What we bake, Retrieved from http://www.bakersdelight.com.au

MCD2050; Marketing 1
Assessment 2: Major Assignment: Business Report
Marking guide

14

CRITERIA

Ver
y

Poo
r

Avera
ge

Goo
d

Very
Goo
d

Poo
r
Content (50%)
Description of the industry ,micro and
macro environment, market
and product category

10
5

Identification and evaluation of major

competitors
Description of the specific offer with
reference to, the type of offer, the three
levels of the offer, the brand, packaging
and labeling
Description of the target segment
including their defining characteristics
and their needs and wants in relation to
this product category
Analysis of the current offer in
relation to the needs and wants
of the target market

10

Recommendations for
adjustment

10

10

Cognitive skills (30%)

Ability to judiciously apply
marketing theory, concepts and
models within the assignment

10

Ability to source appropriate

sources of information

10

Critical analysis of information

with relevance to the topic
area / model

10

Structure and Style (20%) 15% to be allocated to the other sections

Literacy standard
Develops clear argument and
direction
Follows suggested formatting including
executive summary & introduction
Referencing correctly, technical
accuracy
Appropriate and adequate use of
references Please note that using fewer
than 5 references from recognised
academic sources will prevent a
student from receiving a mark higher
than a Pass!
Evidence of wider reading

15

Comments

Grade:

Marker:

Double Marker (if applicable):

Comments:

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