Sarah Mooiweer Marketing Plan 2014 The Oakland Bakery and Market The Oakland Bakery and Market 3925 Fifth Avenue Pittsburgh, PA 15213 (412) 383-7072 The Oakland Bakery and Market opened in the fall of 2013 on the first floor of Amos Hall, a University of Pittsburgh Residence Hall with an entrance on Fifth Avenue. The Bakery features items consisting of, but not limited to, freshly baked cakes, donuts, pastries, bread, organic and gluten-free snacks, specialty drinks, and lunch items. The Bakery also creates customized cakes for any celebration. As a take-out and dine-in facility, the Bakery accepts standard meal plan Dining Dollars along with Panther Funds, cash and credit cards. Page | 1 Table of Contents 1. Mission Statement ........................................................................................................................ 3 2. Vision Statement ........................................................................................................................... 3 3. Oakland Bakery and Market ..................................................................................................... 3 a. Current Market .......................................................................................................................... 3 b. Seasonality................................................................................................................................... 3 4. SWOT Analysis ............................................................................................................................... 3 5. Competition..................................................................................................................................... 4 a. Industry Trends ......................................................................................................................... 4 b. National Companies ................................................................................................................. 6 c. Local Businesses ........................................................................................................................ 7 6. Target Market................................................................................................................................. 8 a. University Students .................................................................................................................. 8 b. University Faculty and Staff ................................................................................................... 9 c. UMPC Presbyterian/Local Employees ............................................................................... 9 d. Adult Residents .......................................................................................................................... 9 7. Goals and Objectives .................................................................................................................... 9 a. Awareness ....................................................................................................................................... 9 b. Customer Experience................................................................................................................. 10 8. Slogan and Logo ........................................................................................................................... 10 9. Promotion Mix ............................................................................................................................. 10 a. Currently Implemented Activities..................................................................................... 11 b. Potential Activities ................................................................................................................. 12 10. Appendix A: Window Display Examples ............................................................................. 18 11. Appendix B: Potential Logos ................................................................................................... 20 12. Appendix C: Potential Business Cards ................................................................................. 21 13. Conclusion ..................................................................................................................................... 22 Page | 2 1. Mission Statement The Oakland Bakery and Market’s mission is to provide products of great quality and variety in a friendly and clean environment to the University of Pittsburgh and the Oakland community at large. 2. Vision Statement Our vision is to become the premiere Bakery of Oakland and surrounding neighborhoods in Pittsburgh. 3. Oakland Bakery and Market The Oakland Bakery and Market opened in the fall of 2013 on the first floor of Amos Hall, a University of Pittsburgh Residence Hall with an entrance on Fifth Avenue. The Bakery features items consisting of, but not limited to, freshly baked cakes, donuts, pastries, bread, organic and gluten-free snacks, specialty drinks, and lunch items. The Bakery also creates customized cakes for any celebration. As a take-out and dine-in facility, the Bakery accepts standard meal plan Dining Dollars along with Panther Funds, cash and credit cards. a. Current Market The majority of the Bakery’s current consumer market consists of the on-campus community. With few market strategies in place presently, University students and employees are attracted to the fast, easy meals and transactions that are made available at the Bakery through Dining Dollars and Panther Funds. Because the Oakland Bakery and Market offers pastries, coffee, and donuts as well as cakes, breads, and lunch items, it can be classified in the Bakery Café industry. b. Seasonality Being located on the University of Pittsburgh’s campus, the Oakland Bakery and Market has seasonality factors to consider in regards to sales and products. During winter, spring, and summer vacations, the majority of undergraduate student residents will not be on campus. In contrast to the student market not being present, the holidays on such months will present the opportunity to attract more local residents to the Bakery. By offering an array of limited time, holiday products such as winter yule logs or Valentine’s Day cakes, local residents and workers in the Oakland, Shadyside, and Squirrel Hill areas will be more likely to purchase products from the Bakery. 4. SWOT Analysis Strengths: Location --- The Bakery’s storefront faces Fifth Avenue and is across from a Port Authority bus stop. The location is surrounded by University of Pittsburgh Residence Halls and is close to many UPMC and UPMC-affiliated buildings. Page | 3 Distribution distinction --- Because the Bakery is affiliated with the University, the Bakery can function as their bakery supplier. The Bakery can work directly with Pitt Facilities as part of Sodexo to provide baked goods, snacks, and lunches. Product mix --- The Bakery offers a wide array of baked goods, lunch options, snacks and drinks. Many of the products cater to health conscience consumers such as goods which are organic, fresh, and gluten-free. Ease of transactions --- The Bakery accepts the University’s Dining Dollars, Panther Funds, cash, and credit cards. Weaknesses: Brand Image --- The Bakery lacks a strong brand image and is positioned as a University of Pittsburgh food service. This brand image is not appealing or welcoming for local residents in the area. Customer Base --- The Bakery does not yet have a strong base of returning customers. This problem is due to the lack of a brand image as well as the fact that the Bakery is new to the area. Location --- The Bakery only operates one location in Oakland. More locations could increase sales. Opportunities: Sodexo --- The relationship with Sodexo could help to spread awareness of the Bakery throughout the University as well as provide funding for promotional activities. Expansion --- Growth of the product mix and bakery locations in the future could interest more consumers and produce higher revenues. Location --- Because the Bakery is located on a heavy-traffic street, it has the opportunity to attract impulse purchases by students and off-campus residents alike. As the only bakery in Oakland, the Bakery has the potential to use its positioning as Oakland’s premiere bakery to become Pittsburgh’s premiere bakery. Threats: Competition --- The competitors from local and chain bakeries and cafes in the area could have more resources and stronger customer relations. Reviews --- Unfavorable reviews have the potential to manipulate consumers’ views of the Bakery. Trends --- Change in food preferences and health trends can make some products in the product mix undesirable or out-of-date. 5. Competition a. Industry Trendsi The following information on “Industry Trends” can be found on the IBISWorld website in “The Bakery Café Industry (OD4319)” report. The Bakery Cafes industry is growing as consumers warm to the idea of moderately priced, high quality menu offerings. Bakery cafes specialize in serving flour-based baked goods and food items such as sandwiches, salads and soups. The industry has moved forward since the recession and has outperformed the overall food service sector, driven largely by changing consumer preferences. Consumers are increasingly demanding healthy, gourmet and custom-made cuisine at affordable prices. Page | 4 The industry has undergone heavy consolidation over the past eight years as major chains such as Panera Bread, Einstein Bros. Bagels and Tim Horton’s have expanded rapidly. The franchise model most of the major players operate under has accommodated the rapid growth in establishments as operators require less capital and take on lower risk while growing market share. A number of small, independent bakery cafes which have traditionally serviced local markets have been pushed out of the industry, unable to compete with the geographic reach and marketing spend of the major chains. However, many savvy independents have made profitable businesses with niche, high-end offerings such as cupcakes or macaroons. The industry is expected to continue on a growth trajectory over the next five years as many of the same trends that have influenced the industry continue. Economic fundamentals such as consumer spending and disposable income are anticipated to perform strongly over the outlook period, creating a favorable operating environment for bakery cafes. To avoid price-based competition and protect profit margins, operators are expected to target markets with greater potential for growth, such as the breakfast crowd. The breakfast market has traditionally been less competitive, and bakery cafes are expected to bolster sales by offering a greater range of breakfast sandwiches, bagels and coffee. Over the five years to 2018, industry revenue is expected to grow at a healthy 5.9% per year on average to $9.5 billion. The industry has been most successful over the past decade targeting the lunch crowd, with most operators deriving well over the 50.0% of their daily revenue and profit during the hours of 11:00am to 4:00pm. While this will remain the most lucrative period for bakery cafes, many will continue to aggressively target the underserviced breakfast market. This strategy will help operators avoid pricebased competition in an increasingly competitive industry. Operators will attempt to attract consumers with extended breakfast menus and early-morning deals. Chains such as Einstein Bros. and Corner Bakery Cafe have already introduced breakfast sandwiches and have started to make it a greater priority to include healthy breakfast alternatives such as granola, fruit and yogurt on their menus. Traditionally, breakfast is the meal most commonly consumed at home; however, consumers will increasingly eat out for their first meal of the day as their disposable income grows. Bakery cafes provide a variety of flour and wheat products to consumers, most notably loaves of bread, sandwiches, croissants and bagels. Industry operators have increasingly expanded their offerings to include gluten-free and healthy alternatives to wheat products. The increasing health consciousness of US consumers and the importance of high quality products has many industry operators scrambling to expand their offerings to meet consumer demand for these products. Because many bakery cafes rely on word-of-mouth marketing to generate a strong reputation for quality, this segment of products is the most important for industry operators to be successful. By offering a wide variety of high-quality products, bakery cafes can more effectively compete against other breakfast and lunch establishments. Bakery cafes also sell various types of pastries, pies and cakes. Of this segment, IBIS World estimates that pastries account for 12.5% of industry sales and that pies and cakes account for about 7.5% in 2013. As consumers grow increasingly health conscious, bakery cafes are expected to introduce healthier pastry and cake products. Additionally, bakery cafes offer various miscellaneous items for purchase, including snacks, such as fruit, and several other food options, like soup and salads. Over the next 3 years, these segments are expected to decrease as a share of revenue as operators place higher emphasis on beverage and bread sales. Ability to attract local support/patronage: Many bakery cafes are local, small establishments that thrive on word-of-mouth marketing and local patronage. If an industry operator is able to develop a strong Page | 5 reputation for quality and service, it can operate successfully in a crowded marketplace. Attractive product presentation: Bakery cafes commonly attract customers via window displays of baked goods, so having an attractive product presentation enables operators to attract more walking traffic into their stores. • Please see Appendix A for window display examples. Proximity to key markets: Industry operators that are located in high traffic areas are able to attract more first time customers into their store, which can be a competitive advantage. Access to high quality inputs: Having access to high-quality inputs allows industry operators to produce higher quality goods, which in turn leads to developing a reputation of high quality. In a crowded marketplace, this can be essential in attracting customers via word of mouth. b. National Companiesii 1. Panera Bread Company Panera Bread Company, located locally at 3800 Forbes Ave, is currently the largest operator in the Bakery Cafés industry with about 53% of the market share. Panera’s strategy is to create affordable and high quality products using ingredients like antibiotic-free chicken, whole grain bread and organic and all-natural ingredients. The average meal costs less than $10. Because a Panera location is located on the University of Pittsburgh’s campus, they can be seen as a direct competitor in the Bakery Café industry. However, The Oakland Bakery has the competitive advantage as a local business specializing in the pastries and baked goods niche market. The Bakery also has more room to develop and change the product mix because the Bakery is not a franchise or owned by a larger corporation. 2. Einstein Bros. Bagels Einstein Bros. Bagels, owned by Einstein Noah Restaurant Group, has two locations on the University of Pittsburgh campus: Posvar Hall and Benedum Hall. Einstein’s serves 10 bagel variations daily as well as deli sandwiches, cookies, pastries, fruit, and soup. Einstein’s has a market share of 6.8% in the Bakery Cafés Industry. As competition, Einstein’s does offer the same purchasing options of meal plan Dining Dollars, Panther Funds, credit cards and cash. By having two locations inside campus buildings, the company has the competitive advantage of convenience for the student market. The Bakery in comparison has the competitive advantage of longer operating hours as the Bakery is open on the weekends, unlike Einstein’s, which implies that the Bakery can service a broader range of markets including students, residents, and local employees. The storefront on Fifth Avenue also provides a competitive advantage in attracting off-campus residents. The Bakery also has a greater amount of healthy, organic, and dietfriendly options available than Einstein’s. 3. Starbucks Coffee Company Starbucks currently holds 36.7% of the market share in the Coffee and Snack Shop Industry according to IBIS World. Starbucks is located locally at 3618 Forbes Avenue, 417 S Craig Street and 200 Lothrop Page | 6 Street. Starbucks offers a range of specialty coffee drinks as well as baked goods, pastries, and lunch items. The Bakery has the competitive advantage of offering a full range of healthy snacks, prepackaged food, loaves of bread, and baked goods. Starbucks does not carry such a large health product line or full cakes and bread loaves as they specifically concentrate their efforts on coffee. The Lothrop Street location has the potential to offer coffee and baked items to UPMC employees, but they do not offer cakes or a large lunch selection. 4. Dunkin’ Donuts Inc. Dunkin’ Brands Inc. holds a market share of about 24.6% of the Coffee and Snack Shop Industry according to IBIS World. Dunkin’ Donuts is an international donut, coffee and ice cream retailer that sells these products under its Dunkin' Donuts and Baskin-Robbins brands. Dunkin’ Donuts is located locally at 3907 Forbes Avenue. The Oakland Bakery has the competitive advantage of fresh, specialty baked goods as well as a full product line of healthy snacks, lunches, and drinks. Dunkin’ Donuts does have lower price points on donuts and coffee, yet the Bakery produces goods of higher value. 5. Supermarket Bakeries The in-house bakeries attached to IGA Market on Forbes Avenue as well as to Giant Eagle in Shadyside are significant competitors. It is easier for customers to pick up their Bakery items while doing weekly shopping and the prices are usually lower. The Oakland Bakery has the competitive advantage of customers who are looking for items they cannot find at a grocery store bakery such as organic, gluten free, and customized items. c. Local Businesses 1. UPMC Presbyterian Cafeteria and Cafesiii The UPMC Presbyterian Cafeteria is located on the 11th floor of the hospital and is open daily from 6:30 AM to 2:30 AM. Coffee and snacks are also available for purchase on the ground level of UPMC Presbyterian from 7 AM to 1:30 PM on weekdays, and at the Café on Seventh at UPMC Montefiore from 10:30 AM to 8 PM weekdays. Although the UPMC Cafeteria and Cafes have the competitive advantage of convenience for UPMC employees as well as visitors in their location and opening times, the Oakland Bakery holds many more advantages. The Oakland Bakery in comparison to the UMPC Cafeteria and Cafes is able to serve fresher pastries and offers a wider range of products including healthy snacks and lunches and customized cakes. 2. Allegro Hearth Bakeryiv The Allegro Hearth Bakery is located on Murray Avenue in Squirrel Hill and holds a competitive advantage in their diverse and inexpensive product line as well as distribution times. Allegro Hearth specializes in baking fresh European bread, and also offers pastries, pies, cakes, cheeses, grocery items and sandwiches, all of which are created without artificial flavors, preservatives or coloring. Price points are relatively inexpensive with pastries around $2, pies around $11, and bread around $4-5 a loaf. They are open every day from 7 AM until at least 7 PM. Page | 7 Competitive advantages of the Oakland Bakery in comparison to Allegro Hearth Bakery include its centralized location and affiliation with the University of Pittsburgh. The Bakery is located on Fifth Avenue, directly across from a popular bus stop for UMPC and University of Pittsburgh employees. The Bakery also caters to students and faculty at the University by accepting Dining Dollars and Panther Funds. 3. Crazy Mocha Coffee Companyv Crazy Mocha currently is open in more than 30 locations in Pittsburgh, including locations in Shadyside, Oakland, and Squirrel Hill. The chain specializes in coffee and also offers baked goods and sandwiches. The price for a sandwich is around $4 and a slice of cake ranges from $3-$5. Although the Bakery’s prices and products are similar to Crazy Mocha, the Bakery does have the competitive advantage of its location on Fifth Avenue, the capability to accept Panther Funds, as well as a broader range of healthy lunch options. 4. Prantl’s Bakeryvi Prantl’s Bakery is located in downtown Pittsburgh as well as Walnut Street in Shadyside. The Shadyside location has been operated by Prantl’s for over 100 years. The Bakery focuses on pastries and cakes, specifically wedding and holiday cakes. Prantl’s offers online ordering for in-store pickup and shipped goods. Cupcakes and pastries are priced between $1 and $3, while cakes can be purchased for $18-$22. Customized half sheet cakes are priced between $40-50 and full sheet cakes are between $80 and $100. Because Prantl’s does not offer a dine-in area in Shadyside, the Oakland Bakery holds the competitive advantage of offering substantial lunch items, coffee and drinks, and baked goods which can be enjoyed in-house. More positive advantages for the Oakland Bakery include the lower price points for customers, and the easily accessible location for students, faculty, UPMC employees, Oakland businesses, and commuters on Fifth Avenue. 6. Target Market a. University Studentsvii There are a total of 28,649 students enrolled at the University of Pittsburgh on the Pittsburgh Campus, including both undergraduate and graduate students. 25,069 are full-time students, while 3,580 are part-time. The majority of students, about 89%, both undergraduate and graduate, are enrolled fulltime. 64% of all students are from Pennsylvania, leaving 36% who came from out-of-state. 2,812 of these out-of-state students are international students, originating from foreign countries, the top of which being China, India, the Republic of Korea, Taiwan, Saudi Arabia and Brazil. The market of undergraduate students includes those enrolled in the University of Pittsburgh working towards their bachelor’s degree. There are 18,615 undergraduates, 3,739 students are first year freshmen and 97% of these freshmen live in college-owned, -operated, or –affiliated housing. 44.2% of undergraduates or 8228 students live in these university housing options which are spread across the Oakland campus and Shadyside neighborhood. Of these undergraduate students, 1,157 students live in the residence halls in the Schenley Quadrangle. The Bakery is located on the bottom floor of one of these residence halls, Amos Hall. Page | 8 b. University Faculty and Staff There are a total of 11,342 full-time and 1,185 part-time faculty and staff employed at the University of Pittsburgh, Pittsburgh campus for a total employment of 12,527. 4,981 are faculty, 951 are research associates and post-doctoral associates, and 6,595 are staff. Of the 4,981 faculty members, 4,163 are full-time, and 818 are part-time employees. 921 of the research associates and post-doctoral associates are full-time employees, and 30 are part-time. Out of the 6,595 staff employees, 6,258 are employed full-time and 337 are employed part-time. There are approximately a total of 5,490 male employees and 5,852 female employees at the Pittsburgh campus. As faculty employees, 2,510 are male, and 1,653 are female. There are 510 male research associates and post-doctoral associates, and 411 female. 2,470 staff associates are male and 5,852 are female. c. UMPC Presbyterian/Local Employeesviii At UPMC Presbyterian, there are a total of 1,016 daily employees, and 789 daily patients including inpatients, outpatients, and research subjects. UPMC Presbyterian employs more than 6,000 people including specialists and faculty. There are currently 975 employed physicians and dentists, 3,138 registered nurses, and 46 licensed practical nurses, all of which work full-time. Part-time staff consists of 948 registered nurses and 2 licensed practical nurses. d. Adult Residentsix According to the 2010 United States Census Bureau, the neighborhood in the 15213 zip code of Pittsburgh has a total population of 30,844 with a median age of 21.6 years old and a median household income at $22,508. This data does include students living off-campus. The total number of family households is 2,344 or 21.5% of the population. There are a total of 713 households with children under 18 years old. The Bakery is located in Central Oakland where the total population is 6,086 people. 54.1% are male and 45.9% are female. 95.2% of the population is 18 years old and over. 69.9% of the population is 21 years old and over. Total resident counts in surrounding areas are as follows: Central Oakland: 6,806 South Oakland: 2, 969 North Oakland: 10,551 West Oakland: 2, 604 Squirrel Hill: 26, 473 Shadyside: 13,915 There are 306,821 living alumni of the University of Pittsburgh, 83,574 of which live in Allegheny County. 7. Goals and Objectives a. Awareness Page | 9 The Oakland Bakery and Market’s main objective as a new business in the area is to increase total customer awareness, specifically with off-campus residents. In order to do so, we hope to build a strong brand image as a local, fast, and healthy bakery and market. b. Customer Experience Once a strong customer base is established, the Bakery’s objective will be retaining these customers and driving repeat business. Through excellent customer interactions, an array of products, exclusive promotional activities, and a responsive product mix, the Bakery plans to enhance customer loyalty. Over this fiscal year, the Bakery’s goal is to build an 80% retention rate, with a focus on off-campus residents. 8. Slogan and Logo The current logo for the Oakland Bakery and Market is shown below and the current slogan is “Oakland’s Only Bakery”. Critiques: Logo: plain, asymmetrical, lacks slogan and relevance to the brand Slogan: does not communicate the quality and array of products offered, can easily be made untrue if competition opens in Oakland, not an outward-looking concept Potential ideas for updating: Please see Appendix B for potential logos. Slogan: o “Oakland’s Best Gourmet Bakery” o “Oakland’s Premiere Bakery” o “Oakland’s Favorite Bakery” o “Oakland’s Taste of Home” o “Oakland’s Sweet Spot” A survey of these potential ideas would be the best way to prove their relevancy and effectiveness among the Bakery’s target markets. To reach students and faculty, a survey sent to Pitt emails could produce a wide range of responses. 9. Promotion Mix In order to accomplish the goals and objectives set above, the Oakland Bakery and Market will require promotional activities. Page | 10 a. Currently Implemented Activities 1. Social Media A strong presence in social media allows target markets to connect with the Oakland Bakery and is a quick, convenient way to communicate information to a large majority of students. The Oakland Bakery and Market currently operates a Twitter and Facebook page as well as Pinterest and Foursquare pages. On Twitter, @OaklandBakery currently has more than 75 followers and approximately 60 tweets. Some giveaway opportunities have been posted here including “Birthday Tweats”. The Bakery will continue to grow its following in this environment by posting photographs, discounts, specials, and new products exclusively through the social media accounts. On Facebook, The Oakland Bakery and Market Page currently has 65 “likes”, 8 check-ins, and 24 photographs posted. The Bakery will continue to post photographs of products and promotions as well as encourage more likes, check-ins, and reviews on the Facebook page. If special events do occur at the Bakery, the page can create Facebook events to promote them. On Pinterest through the Pitt Dining Page, the Bakery posts recipes and photographs of their baked goods. The Bakery will continue to post recipes and photographs with an emphasis on seasonal treats. The Oakland Bakery and Market on Foursquare currently displays the hours of operation, address, and short description of items offered. The Bakery can enhance this outlet by posting more pictures and promoting more customer check-ins and tips in order to improve visibility on this website. An opportunity to promote more check-ins could be a “Check-In Special” like “$5 back on an order of $15”. The following is a list of additional promotional competitions which can be posted on social media outlets: First 20 songs posted with the word “chocolate” or “vanilla” in the lyrics get a free ____ Design that ____--- customer design a sandwich/donut/cupcake and the menu item is named after them, the winner receives a gift card Secret flavor postings--- customers mention flavor and receive it for free Photo contest--- the Bakery selects a customer’s photo from Twitter or Facebook and uses it as the Bakery’s cover photo for a week, fan wins baked goods Polls/surveys--- give every poll taker a 20% off coupon Fishbowl of business cards on counter--- choose one monthly and promote that local business on Facebook and Twitter, award the office with a supply of baked goods and a stack of the Bakery’s business cards The Oakland Bakery social media sites have been promoted through the Pitt Dining and the Panther Central Facebook, Twitter, and Pinterest pages. In the future the Bakery can ask other campus organizations pages like the Pitt News, Pitt Student Affairs, and Pitt Program Council to promote the brand through their social media pages. 2. Promotions and Discounts Page | 11 Currently, the Bakery is engaging in a couple promotional activities including tastings and community discounts. A free tasting was implemented at the Bakery which included sample sizes of fall favorites like pumpkin pie and pecan cranberry bread. This is a great way to effectively introduce the new products, create instant demand for those goods, and acquire new customers. By promoting these tastings once a season on the social media pages, the Bakery can increase sales of seasonal items as well as gain new customers. Oakland Restaurant Week is a 5-day event promoted by OBID, the Oakland Business Improvement District, which offers $5 lunches at selected eateries throughout the community. The Bakery participated this year and offered a different $5 lunch every day and this menu was posted on the Oakland Restaurant Week website. By participating in this community event, the Bakery was promoted through various outlets including the “Only in Oakland” and the “Visit Pittsburgh” websites. b. Potential Activities 1. Flyers and Business Cards The most immediate marketing action that can be utilized is the production and distribution of business cards and flyers. From the mailing list created the Bakery is able to send flyers to multiple target markets. The list of medical and health employees in Oakland, Squirrel Hill, and Shadyside would receive a promotional flyer with the tagline “A Treat for You for Treating our Community”. The promotion would feature a free baked item or drink when the employee shows medical identification. In order to promote this to all UPMC institutions and affiliates, the Bakery can send it to their Perks Promotion contact who would feature the promotion in the UPMC newsletter for a specified amount of time. This flyer will enhance awareness and get more community workers in the Bakery. To contact UMPC’s Perks Promotion: upmcperks@upmc.edu Generic flyers can also be sent out to local businesses in the Oakland, Squirrel Hill, and Shadyside area which spread awareness of the Bakery. These flyers could feature a certain percentage discount when physically brought in to the Bakery. In addition to flyers, business cards can also help spread awareness. Having a stack in the Bakery will be an easy way to connect with customers. They can also be used as rack cards at local businesses. By leaving a stack of cards at relative businesses like flower shops, gift stores, and salons, the market of local residents can be reached. When the Bakery drops off the rack cards, it can also take promotional materials from those businesses to show in the Bakery and online, thus promoting local professional relationships. Please see Appendix C for potential business cards. FedEx Kinko’s prices are as follows: o One-sided, color flyers: Page | 12 o o o $.75/copy $650.00/1,000 copies $2,750.00/5,000 copies $4,500.00/10,000 copies 1-2 color, matte business cards: $19.99/250 cards $39.99/1,000 cards $59.99/2,500 cards Full color, matte business cards: $29.99/250 cards $49.99/1,000 cards $63.99/2,000 cards To order online: http://www.fedex.com/us/office/ University of Pittsburgh’s Copy Cat prices 2. Window Displays If possible, displaying cakes and other baked goods in the window will most effectively attract walk-ins. Other easy, low-cost ideas could involve window paint pens to draw seasonal scenes or paper cut-outs of snowflakes and flags. For new creative ideas, the Bakery could engage with the University of Pittsburgh Studio Arts or Architecture students with display competitions. The students could add this project to their portfolios while the Bakery gets a new creative, attractive display seen by commuters on foot, transit, or in cars. • Please see Appendix A for window display examples. 3. Local Advertising In order to reach the majority of the target market of the Bakery, Oakland off-campus residents, the Bakery can start working with the Oakland Business Improvement District under the Only in Oakland website. By becoming a member of OBID, the business can receive benefits like promotion to more than 1,500 Oakland stakeholders through OBID’s Noteworthy News weekly email as well as promotion in a monthly newsletter distributed to an audience of more than 450 OBID members and stakeholders. In addition to these mailers, the Bakery would be promoted to a network of more than 2,000 people through OBID’s social media channels, including Facebook, Twitter, Pinterest and Flickr. OBID also connects with greater Pittsburgh residents through a few events like “A Taste of Oakland” in the Spring, the “Oakland Farmers’ Market” which runs June through November, and “Oakland Restaurant Week” which occurs in the Summer and Winter. For more information on OBID visit: http://onlyinoakland.org/contact/ Another simple way to connect with the community is hanging 2-3 bulletin boards inside the Bakery for flyers regarding community events. This addition to the space will make the Bakery seem more local and warm. When asked which newspaper they read weekly, 91% of students chose The Pitt News, 35% chose The Pittsburgh Post-Gazette and 13% chose the Pittsburgh City Paper. Out of the Faculty and Staff at the University of Pittsburgh, 81% said they read The Pitt News weekly, while 60% and 28% chose The Page | 13 Pittsburgh Post-Gazette and the Pittsburgh City Paper respectivelyx. The Pitt News promotional options include bundles of print ads, sticker note ads, tweets, TPN Mobile App ads and online ads. Through The Pitt News, the Oakland Bakery will be able to reach current students, alumni, parents, faculty and staff. Pricing for The Pitt News multimedia campaigns for 2013-2014 can be found at: http://bloximages.newyork1.vip.townnews.com/pittnews.com/content/tncms/assets/v3/editori al/e/2a/e2aebd9a-560d-11e3-887e-001a4bcf6878/5293af642ac23.pdf.pdf The Pittsburgh Post-Gazette is the largest daily newspaper in the Pittsburgh area and reaches an audience of approximately 1 million people every week through print and online. For an exact quote and marketing package, contact the advertising department (412) 263-1100 or visit their Media Kit online at: http://pgmediakit.com/ The Pittsburgh City Paper has a print readership of more than 300,000 people and around 413,535 readers including the online paper in the Western Pennsylvania Area. The median age of their demographics is 38 years old and 63% between 21-54 years old. In the “city” area of Pittsburgh, which includes Oakland, Shadyside, Squirrel Hill, Bloomfield, and Lawrenceville and carries 40% of readership, the City Paper delivers to 214 street boxes. They focus on local art, music, and food. Ad rates can be found at: http://posting.pghcitypaper.com/pittsburgh/AdvertiseContact/Page The Pittsburgh Magazine is a lifestyle magazine which has a monthly distribution of 47,979 and reaches about 258,014 Pittsburghers, 30,018 of which are business owners and CEO’s. Prices for advertising range from $510 for 1/12 of a page printed once to a ½ of a page repeated 9 times at $3,640. For a full list of ad prices: http://www.pittsburghmagazine.com/Pittsburgh-Magazine/pmmk10/2014_MediaKit_Final3.pdf 4. Event Catering By working under the University of Pittsburgh affiliates, the Bakery has a unique opportunity to work with Heinz Chapel and the University Club. By becoming a sponsor for the Heinz Chapel, the Bakery’s information will be posted under Vendor Resources on the Chapel’s website. This exposure can help add new customers in need of specialty event cakes. Similarly, the University Club can also become a resource to promote the Bakery as a partnering University entity. This venue holds banquets, weddings, and conferences which would also help gain exposure of new customers to the cakes, pastries, and snacks offered at the Bakery. Other event spaces and event planners can be contacted in the area as well to help spread awareness of the Bakery. Leaving business cards and flyers at these places is an easy way to promote the Bakery and contact specific customers who would be looking for special, customized cakes and baked goods. The following links lead to the contact pages on related websites: Bellefield Presbyterian Church: http://www.bellefield.org/contact_us.php Heinz Chapel: http://www.heinzchapel.pitt.edu/about/contact-us University Club: http://www.uc.pitt.edu/banquet/ Page | 14 Shadyside Presbyterian Church: http://www.shadysidepres.org/contact-us First Unitarian Church of Pittsburgh: http://www.first-unitarian-pgh.org/FindAndContactUs.html Rodef Shalom Congregation: http://rodefshalom.org/about-rodef-shalom/facilities Mansions on Fifth Hotel: http://mansionsonfifth.com/contact-us/ Bigelow Conference and Reception Center: http://www.bigelowcenter.com/page1_012.htm The Event Group: http://www.eventgroupproductions.com/about-us/contact/ 5. Email Marketing A mailing list is an easy way to collect contacts of customers who would like to receive promotional emails, newsletters, and surveys. By keeping a sign-up list on the counter, contact cards on the tables, and email sign-ups on social media, the Bakery can compile a list of customers. To help convince visitors to sign up, the Bakery can ask for their birthday and send out an email for a complimentary item on that day. Possible problems which could occur would be alienating customers by emailing them too frequently, not being able to send segmented market emails (to students or UMPC workers for example), or customers giving multiple emails in order to receive multiple special promotions. Some helpful strategies would be keeping emails clean in a one-column layout so they can translate on to mobile devices easily. Pre-built templates can also help the emailing process faster as anyone can just drop in core content. In addition to these strategies, email addresses can be split up by first crosschecking names to find duplicates then separating University email addresses from other obvious group server email addresses. 6. Loyalty Stamp Cards Loyalty programs can easily keep customers coming back to the Oakland Bakery. It costs a business about 5-10 times more to acquire a new customer than to sell to an existing one, and current customers spend an average of 67% more than a new one. A simple loyalty card will be able to keep these customers returning. The Bakery could use a paper card which would keep track of the customer’s purchases. Their spending could be tracked by, for example, stamping the card for every purchase over $5 or for every purchase of a pastry. After 6-10 stamps, the customer can receive an item for free. In addition to this promotion, the customer can also have their birthdate written on the card to receive a free treat on their birthday. Some possible problems involved with this marketing strategy could be customers stamping or punching holes in their own cards, misplacing or forgetting the card, or people using other customers’ cards. To counteract these problems, a plastic card might be more efficient for customers yet more expensive for the company. Another option would be using an electronic card linked up to mobile devices through programs like StampMe which would keep track of customer purchases, yet this option would be more expensive than a plastic card. StampMe prices are as follows: Basic--- Free. This uses a QR code for validation of the transactions and awarding the loyalty stamps. You get your listing and offer on the Stamp Me app. Display templates and some marketing materials are provided electronically. You keep the QR code at the register and customers scan with the app when they make a qualifying purchase. Page | 15 Standard --- $45/month and $35 setup fee. This option uses a secure method for validation called “Stamp Mate” and gives full access to all usage, the customer database including email and birthdate, and an integrated campaign email platform. The marketing pack included has hand out cards and printed displays with the company’s logos and details. For more information --- http://www.stampme.com 7. Tabling with Samples on Campus In order to reach the student market, the Oakland Bakery could table on campus (in the Litchfield Towers Lobby, at the William Pitt Union, or at Sennott Square) with free samples of goods offered at the Bakery. With this tactic, the Bakery can receive immediate feedback about the products as well as get students interested in the business. Social media can also be enhanced through this tactic if students are asked to “like”, “follow” before trying the goods or write a review on the Oakland Bakery’s pages on Twitter, Facebook, or Yelp after they sample a product. Being able to taste the products will help acquire new customers and the social media following will add more contacts to who the Bakery can promote products. Potential problems could arise involving health codes, keeping the items fresh, not enough diversity in samples, or with students unfollowing the social media pages after they receive their sample. In order to counteract these problems, tabling sessions should be relatively short at peak times throughout the day, the Bakery should offer a range of healthy to sweet items, and the representative tabling should be able to communicate the benefits of following the Bakery’s social media for promotions, pictures, and recipes. 8. Campus Video Screens Student Affairs Digital Signage system was designed “to promote events, programs, and services sponsored by the University of Pittsburgh departments and certified student organizations that enable Pitt students to fully engage in campus life.” Through the use of LCD TV screens, the Oakland Bakery can submit slides and videos to be shown on these screens found in the William Pitt Union, the Cathedral of Learning ground floor, and residence halls. The form to submit these requests can be found at: http://www.studentaffairs.pitt.edu/sites/default/files/PDFsandForms/StudentLife/TVScreenSub mission.pdf This service should be utilized to spread awareness to the Pitt students, faculty, and staff. Bakery advertisements could show “behind the scenes” videos of how the baked goods are made and the healthy lunch and snack items also offered. Students can be interviewed and their testimonies can also be integrated into the video. 9. Basic Website Although potential customers are likely to search for a local Bakery on Yelp, Google Maps, or other third party search engines, a business website is still the best place to post inventory, share an events calendar, provide testimonials, and offer order forms. This is the most efficient way to provide information on customizable cakes and let customers order online from selected options. On the website, the Bakery could enable a pop-up form for customers to input their information for the Bakery’s mailing list. A website can be easily created for free on providers such as: Page | 16 http://www.weebly.com http://www.wix.com http://www.yola.com A custom domain can be acquired through the purchase of most starter packages at around $5/month, but is not necessary for the business’s site. 10. Donations The Bakery has a unique opportunity to work on corporate social responsibility with local organizations. The Bakery will be able to create benefits for the company and to the community through donations. Between donating cookies and cupcakes to local bake sales in the Pittsburgh Public School Systems and giving bread and cakes to local food drives, the Bakery can engage with the community and potentially new customers as well as differentiate the brand from other bakeries in the area. Page | 17 10. Appendix A: Window Display Examples Page | 18 Appendix A: Window Displays Continued Page | 19 11. Appendix B: Potential Logos (To view larger images, CTRL+click each logo.) Page | 20 12. Appendix C: Potential Business Cards (To view larger images, CTRL+click each card.) Page | 21 13. Conclusion i Brennan, Andy. Bakery Cafés Industry Report. Rep. no. OD4319. N.p.: IBISWorld, 2013. IBISWorld US. Web. 8 Feb. 2014. <clients1.ibisworld.com/reports/us/industry/default.aspx?entid=4319>. ii Brennan, Andy. Bakery Cafés Industry Report. (See endnote i) iii "During Your Stay at UPMC Presbyterian." UPMC.com. UPMC, 2013. Web. 8 Feb. 2014. iv Allegro Hearth Bakery. N.p., 2012. Web. 5 Feb. 2014. <http://allegrohearth.com/>. v Crazy Mocha. N.p., 2014. Web. 5 Feb. 2014. <https://www.crazymocha.com/>. vi Prantl's Bakery. N.p., 2010. Web. 5 Feb. 2014. <http://www.prantlsbakery.com/>. vii Office of Institutional Research. University of Pittsburgh Factbook 2014. Fact Book, Office of Institutional Research, University of Pittsburgh, Pittsburgh: University of Pittsburgh, 2014. viii "UPMC-University of Pittsburgh Medical Center." US News. U.S.News & World Report, 2014. Web. 12 Feb. 2014. ix x "City of Pittsburgh: Neighborhoods." Pittsburgh City Planning. N.p., 2013. Web. 12 Feb. 2014. The Pitt News. 2013-2014 Advertising Media Kit. ThePittNews. N.p., 25 Nov. 2013. Web. 5 Feb. 2014. <http://www.pittnews.com/pdf_e2aebd9a-560d-11e3-887e-001a4bcf6878.html>. Page | 22