Business Plan For Bakery Chain Of YY Company

With the living standard continues to improve in China, purchasing power also increased tremendously, pastry/bakery is one of the product that is well received by the general public and penetrated to family level. Bakery is also consumed by the younger generation daily. In the past few years, China bakery business has been developing in extreme speed, many foreign brands have joined this emerging market and developing fast and wide. With the huge consumer base in China, bakery business is far from saturation. Based on market leading research institute report: Until end 2012, bakery business revenue in China is RMB188.6billion with growth of 13.6%, by 2013, the sales revenue increased to RMB220.2billion. As estimated by the institute: By 2017, the sales revenue will grow to RMB465.8billion and by year 2020 shoot even further up to RMB550 billion.At the moment, China market is huge but most of the bakeries are focused in commercial area like shopping mall, transportation hub and tourist area, it is not fully extend to the living area. Those living area equipping with bakery are also not branded and are small setup. With this situation and gap, it accelerated the room of growth for YY company to service the community by bringing the delicious, healthy, trendy bakery/pastry product to the consumer.YY Company is a franchise chain running bakery business, their business plan is expanding within 5 years to 8 franchise bakeries. Their main business is providing bakery final product, ingredients, baking equipment and creative design service etc. to their customers. Bakery final product included: bread, cakes, pastries/cookies and drin k etc. Price range for Bread and Pastries/cookies are RMB5-15, Cakes is RMB90-400, Drinks RMB4-15. Baking ingredients mainly consists of flour, additive, grain, condiments. Baking equipment mainly consists of measuring cup, scale, flour sieve, egg beater, mold for bread, mold for cake, oven tray, baking oven, mixer, mold for cookie, fermenting oven, bread cutter, cake shaping blade etc. Creative design service mainly consists of Do-It-Yourself baking, Personal order service, Baking class, parent & child baking class. At the moment, the main business strategy is to cover the new high/medium class living vicinities. When business grow with good reputation and recognition from the general public, penetrating to old and established high/medium class living vicinities will be second phase.This business proposal is focus on analyzing YY company bakery franchise chain internal capability and external business aspect, it reckon the consumers ar e mainly focus on health, life style and convenience. With the city development and rapid expansion of middle class, the community need of bakery in their area in extreme. This provide s business opportunity for YY Company due to economic growth and high consumer demands for these kind of services. The threats to YY Company are operations and material cost, existing competitors in the market. The competitive edge of YY Company is their nurturing of new high/medium living area, rich assortments of product lin es, advance baking equipment and technology, ability of providing creative design service, the down side of the company internally is relating to the lack of experience to their brand new products. The company business situation is high in opportunities as they have prominent advantages to fulfill their overall business expansion strategy.YY Company surveyed their target consumers and used statistical data analysis to analyze and understand the main factors that influence buying decision, motive of purcha se and consumer needs. Analyze YY Company against their competitors by using market position strategy and combination of 4P sales strategy, it developed YY Company franchise chain business strategy for product, marketing, price and channel development thro ugh thorough understanding their competitors' situation. Business plan detail described company YY bakery franchise chain how they build management team, next 5 years business development target and resources in operation, at the same time build the relevant accessing system.The last part this thesis is illustrate YY Company bakery franchise chain's 5 years financial estimate and analysis in order to show the risk and possible mitigation. The thesis will also conclude execution plan with final comment.