Caroline's Real Bread Company SWOT Analysis

Topics: Organic food, Bread, Organic farming Pages: 12 (4369 words) Published: February 28, 2014
Executive Summary
Caroline’s Real Bread Company are a small village bakery who produce and sell a variety of niche breads to cater for specific needs. Emphasis is placed on high-quality, fresh organic products. Their products are sold through their website, farmers markets, food festivals and other outlets. They also provide bread for specialist restaurants and café’s. This report provides an analysis and evaluation of the current state of the grocery market, and provides recommendations on the possible actions that should be undertaken for Caroline’s Real Bread Company to expend and take advantage of the current state of the industry. Methods of analysis used in this report include PEST analysis which analyses the external factors effecting companies operating within the grocery market, and SWOT analysis which is a method used to assess the strengths and weaknesses of a company, and the opportunities and threats that are currently presented to them. This research draws attention to the fact that grocery retailers have changed during the past few years in order to react to customer demand. As a result of technological advantages, the demand for convenience is increasing and all major supermarkets now sell their products online. Further research has shown that the market size for fresh organic bread is increasing, and is forecasted to increase even further in the future. The growth of the market size of their products can be attributed to two things. The increase in health awareness amongst consumers who are slowly becoming more conscious of the foods they eat due to a growth in political campaigns alongside new food labelling laws, and the increase in demand for gluten free bread as a result of a steady increase in the amount of gluten intolerant people in the UK. The store competes in an expanding, competitive niche market. It has steadily grown whilst staying true to the ideologies behind it, resulting in Caroline and her company winning many awards. We recommend that the next step that Caroline’s should take is to expand their production capacity in order to take advantage of their distribution channels already in place. They should also refrain from distributing to large supermarkets who do not share their beliefs in order to keep their unique selling point and maintain their current customer base. Instead, they should aim to increase online orders through increased marketing and promotions. We suggest they should get involved in social media in order to increase awareness of their wide variety of products, and to generate more traffic to their website. Due to their limited budget, Caroline’s Real Bread Company should directly target those with special dietary needs as the niche is expanding and these are the customers most likely to buy their products. This could bring opportunities for them to increase their number of deliveries across the UK. The report also investigates the fact that the research conducted has some limitations. Some of the limitations include the fact that secondary data has been used, and that our recommendations assume that the state of the UK economy will not severely worsen in the near future.

2. Introduction and Aims
Caroline’s Real Bread Company is a small bakery in Mid/South Wales since 1992. It has two partners Nigel Devlin and Caroline Frampton. Caroline is the baker and Nigel does the accounts. Their products are sold through farmer’s markets, food festivals, local organic box schemes and other outlets. It also supplies restaurants specialist cafés, outside caterers and one off events. Caroline won the Gold Welsh True Taste Awards in 2005 after expanding her business. They offer over 30 varieties of bread which are wheat-free and yeast free. In recent years they have been trying to expand themselves through technology, through online orders which can be collected from in-store or delivered (Carolinesbreadcompany, 2013). The aims of this report are to outline the Political,...

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