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BX3083 Strategic Marketing
Marketing Strategy Report
Growth Opportunities of BreadTalk in China
Phuvadol Uewongtrakoon 12877726
Pakorn Chotikarn 12846392
Ma Jie 12760128
Kong Qianhua 12742939
Li Qilin 12740634
Lecturer : Mrs Chuanchu Thurston

Table of contents
1.0 Executive summary 1
2.0 Introduction 2
3.0 Company/Organisation analysis 3
4.0 Product analysis 4
5.0 PESTEL analysis 9
6.0 SWOT analysis 14
7.0 Market analysis 19
8.0 Target market 24
9.0 Marketing objectives 25
10.0 Marketing strategy 25
11.0 Implementation and control 36
12.0 Conclusion 38
13.0 References 39
14.0 Appendices 45

1
1.0 Executive summary
This marketing plan projects the entry and expansion of BreadTalk in the Chinese
market. Based on the customer analysis in the report, the demand of bakery products has
remained steadily substantial, and the consumer purchasing power has remained growing in
China recently. In the meanwhile, the annual sales growth rate of the bakery industry in China
has surpassed 10% in the recent years. This could imply that the Chinese bakery industry has
entered the rapid development period and contribute the direct impact to business development
of BreadTalk in China. By comparing with main competitors in Chinese market, there are some
competitive advantages of BreadTalk; respectively are special names of bread with modern style,
innovative creations of breads, also the premium quality of products and services. Therefore, it is
recommended that BreadTalk should catch the growing opportunities and increase its
competitiveness to expand its market and business in China.
BreadTalk will target two segments in Chinese market which are the working adults and
white-collar professions who live in the 1st, 2nd and 3rd tier cities. Moreover, the secondary
target markets will be female teenagers because of the large percentage of female population in
China.
In order to operate the business in China and achieve the marketing objectives
successfully, BreadTalk uses a series of marketing strategies to promote its product. For the
product strategy, BreadTalk will provide the customised service to the customers, and promote
special bread designed such as Mickey Mouse bread and cakes. Furthermore, for the promotion
strategy, it uses the golden hour promotion, traditional moon cake promotion and talk through
breads promotion to attract more customers.

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2.0 Introduction
The BreadTalk Group Limited (BGL) is a promising company that was first established
in Singapore. The company has been expanding its businesses rapidly to local and international
markets. BGL has three product lines which are augmented around the catering business, that
include bakery, restaurant and food atrium. The corporation has also managed more than 500
boutique bakeries and 800 food atriums and chains of restaurants across 15 countries such as
China, Singapore, Indonesia and Philippines.
The purpose of this marketing report is to define the marketing strategy and influence
BGL to continue expansion and growth in overseas. The scope of the report is limited to
BreadTalk bakery product line��s expansion in China as the preliminary marketing research
indicates the home market (Singapore) is saturated and the raise of Chinese Economy presents
market opportunity. In particular, the report includes:
(1) Company analysis of the BreadTalk Group Limited including Portfolio analysis
regarding the organisation��s products offering that are categorised into three-business
units bakery restaurant and food atrium. Each business unit��s position in relation to
the market growth rate and market share possession is explored in this section.
(2) Product analysis in Mainland Chinese market including product description and
position in lifecycle.
(3) PESTEL and SWOT analysis in order to draw implications on the marketing strategy.
(4) Market analysis for BreadTalk consisting of competitor analysis (the advantage and
disadvantage about those competitors), customer analysis (consumer behaviour,
trends and their buying power) and competitive analysis in order to draw implications
on the potential target market in China.
(5) Target market for BreadTalk in the Chinese market.
(6) Marketing strategy for BreadTalk entering the Chinese market and obtaining the
market share.
(7) Implementation and control including the budget allocation and contingency plan.

3
3.0 Company/Organisation analysis
BGL was founded in July 2000 in Singapore. The company had primarily specialised in
bakery business, it had expanded to a corporation and listed on the Singapore Stock Exchange
three years later in 2003. Nowadays, BGL manages more than 500 boutique bakeries and 800
food atriums and chains of restaurants across 15 countries, such as Singapore, China, Indonesia,
Malaysia, Philippines, Thailand and, supports by 7,000 global staffs (BradTalk Group Limited,
2013). The vision of BGL is to become an international, trend-setting lifestyle company that
focus on food and beverage. Moreover, BGL aims to establish and sustain its competitive
advantage by introducing new food culture as well as improving the quality of food and beverage
industry in this operating geographic market. With the strategic intend guiding the corporation,
the organisation has established a number of brands including using the corporation��s name,
BreadTalk for its bakery, Toast Box for Singaporean style of cafes, The Moh Chan for traditional
handcrafted pastries shop, Food Republic for its food court, RemenPlay for Japanese Restaurant,
and The Icing room for shop that offers DIY cake decorative services. In addition, BGL has also
managed franchises from Taiwan��s Michelin Star recipient Din Tai Fung in Singapore and
USA��s Carl��s Junior in China (BradTalk Group Limited, 2013).
As the organisation��s product lines can be categorised into three business units, the
revenue stream of BGL can also be analysed from this angle. According the annual report of
BGL for Financial Year 2013 (FY13), more than 50% of FY13 revenue was contributed by
bakery business unit, 26.6% was contributed by food atrium and the rest was contributed by
restaurants as stated in Appendix 1 (BradTalk Group Limited, 2013). With the successful
industry, BGL is required to seek potential markets in Asia for securing the future revenue as
well as developing the brand equity and enhancing the brand experiences for the customers
behind the Singapore market within the same region.
It is worth noting that the corporation��s success in Singapore is not only the result of the
marketing effort but also its corporate strategy in pursuing investment in commercial complex
buildings. The Group invested real-estate projects in Singapore, for example S$17.49 million
invested in junior bonds, preference shares and ordinary shares to acquire TripleOne Somerset
(A commercial complex) in Singapore in 2014 (BradTalk Group Limited, 2013). These
investments not only help the Group to gain generous profits, but also provide the favourable

4
locations for their product offerings and brands to meet the target market. In addition, their estate
investments serve as a hedge against rising rental costs as well. Hence, the Group is growing
sustainably and successfully since they keep on seeking the potential markets to develop the
organisation and implement the proper long-term strategies with the distinct insights.
4.0 Product Analysis
4.1 Portfolio analysis
In this section, BCG Matrix is used to initially classify the position of each BGL��s brands
in the current market in order to analyse and determine the appropriate marketing strategy for
each brand. In the case of BGL, the brands can be categorised into 3 key business units as
followed below.
? Bakery
BGL is currently a leading company of bakery industry in Singapore. It accounted for
50.6% of the total revenue of BGL in 2013 as illustrated in Appendix 1, which BreadTalk is the
most profitable brand among bakery business unit in the Group (BradTalk Group Limited, 2013).
Nevertheless, BGL has experienced the decline in growth rates of the Singapore market plus the
increase in wage costs due to the Government policy (OCBC, 2012). Moreover, the macro
strategy of BGL is to expand its business into Hong Kong and Mainland China (BradTalk Group
Limited, 2013). This could reflect that the bakery units of BGL in Singapore which comprise of
BreadTalk, Toast Box, Bread Society, Thye Moh Chan and The Icing Room are in the Cash
Cows. The bakery units of BGL are dominating the market in Singapore; they do not require
much of investment but can generate an excessive profit to support other BGL��s business units in
the long-run.
Therefore, BGL can sustain its bakery units in Singapore to generate profitable income in
order to support the bakery units in Mainland China as they are required a wide range of
expansions and investments to overwhelm the market.
? Restaurant
In the case of restaurant industry, the sales rose 19.1% to S$122.2 million from 2012 to
2013, it accounted for 22.8% of the overall BGL revenue as stated in Appendix 1 (BradTalk

5
Group Limited, 2013). However, the increase was mainly dominant by the performance of Din
Tai Fung restaurants which was very popular in Singapore and Thailand that relieved BGL from
the unprofitable operations in RamenPlay and Carl��s Junior (China) (OCBC, 2012). This could
imply that Din Tai Fung is currently a Star that has an opportunity to grow and generate more
profit. On the other hand, RamenPlay experienced the decline in revenue of 2.0% from 2012 to
2013, and had closed 4 non-performing outlets (BreadTalk Group Limited, 2014). It could reflect
the position of Ramen Play is in Dog that lack of market share and potential to grow even though
it has been in the market for several years. In addition, BGL has just invested in Carl��s Junior
(China) as a joint venture with Carl Karcher Enterprise since August 2013 (BradTalk Group
Limited, 2013). It could therefore imply that Carl��s Junior (China) is currently in Question Marks
that still need to find the right direction and strategy to obtain more revenue and market share or
gradually be phased out of the market.
? Food Atrium
According to BGL (2013), even stores in some countries like Thailand and Taiwan did
not perform well to reach the standard; the outlets in Singapore, China and Hong Kong were
very profitable. There was a significant increase of 29.2% in sales revenue in 2013 which
contributed to 26.6% of the total BGL revenue. And in 2012, the sales increased 18.1% form
2011 which represented 25.0% of the BGL overall revenue as illustrated in Appendix 2
(BreadTalk Group Limited, 2012). From the wonderful performances of Food Republic, it could
be classified as a Star for the overall performance that has the potential to grow and generate
more revenue for BGL.
Overall, the bakery business unit especially BreadTalk is the most profitable business
unit in BGL as mentioned above. However, the bakery market in Singapore has experienced its
saturation and BGL therefore is required to grow overseas. Mainland China is the most
promising market for BGL��s bakery business unit that has potential to grow significantly based
on the performance in 2013. Hence, this marketing plan is going to focus on BreadTalk in
Mainland Chinese market in order to expand and increase BGL��s sales and revenues.

6
4.2 Product description
As the focus of this study is the bakery business unit (brand name: BreadTalk) in this
expansion in China, the following preliminary product analysis only covers the product offerings
from BreadTalk.
BreadTalk has provided bread as its single product. The core of the product is a food to
meet customer basic needs. In additional, it has offered various kinds of breads in order to satisfy
the consumers and obtain more profit.
In the case of tangible products, bread is nutritionally which an ample source for the
grains category of nutrition. Nowadays, BreadTalk has adopted natural yeast into its breads in
order to make them distinct from their competitors (Habib, 2014). The products are also given an
exotic and popular name such as "Down2earth" and "Mount Fuji Swirl", "Spice Girl",
"Crouching Tiger, Hidden Bacon", "Moshi Mushroom", "Earthquake Cheese Loaf" (Lee, 2011).
In additional, BreadTalk already has two specialised research and development teams
(BreadTalk Group Limited, 2012), which are devoted to creating and discovering new bread
flavours and designs in order to keep them up to date for the ever-evolving consumer preferences
and taste. BreadTalk invests in the research and development teams to continuously develop new
buns for its bakery, about ten items are introduced every four months (BreadTalk Group Limited,
2012). Therefore, BreadTalk currently offers more than 150 varieties of breads, buns, pastries
and cakes.
However, bread as a food, so it can be perishable in a short time. Therefore, BreadTalk
has applied the bread improver which is one kind of food additives to enhance its products. The
bread improver has abilities to slow down the aging of bread; improve the gluten and machining
properties and the quality of bread, so that the bread��s colour, smell, taste and shape could meet
the needs of consumers (Karisfoodie, 2013).

7
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
BGL Bakery Sales
BGL Bakery Sales
4.3 Product lifecycle
The single product that BreadTalk offered has very short life cycle due to the nature of
food and beverage sections. Bear in mind that the actual product offered to the customer by the
group is augmented with the customer service-physical contact as well as the d��cor of the outlet.
With the regular update of the menu or bakery product, and if to view the whole organisation��s
product offering as a single product mix and to place it in the product life cycle, it can be argued
that the entire product mix is in the growth stage of the product life cycle according to the
increasing in sales every year as illustrated in the Figure 1.
Figure 1: BGL Bakery Sales
(Source: BreadTalk)
The growth stage is the period during which the product eventually and increasingly
gains acceptance among consumers and the wider general public as can be seen in the picture
below. During this stage, the BreadTalk product becomes accepted in the bread industry market,
as a result sales and revenues start to increase and create profit for the company.

8
4.4 Strengthening product position
The extended markets are demanded for BreadTalk to strengthen its business. Chinese
market should be considered primarily due to the growth potential. The constant innovation of
the products to lead the trend should also be maintained as mentioned above that BreadTalk has
already invested in R&D team to improve its products. Likewise, BreadTalk should keep giving
a creative name and interesting story for its breads to attract attentions from the customers. D��cor
and presentation of BreadTalk outlets could be renovated every 3-5 years in order to keep the
stores modern and up-to-date as well as matching the outlets in Singapore and overseas to be in
the same design. In addition, the point of contact is orientated approach which could be adopted
to acquire more customers.

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5.0 PESTEL analysis
As this research is focus on the expansion of BreadTalk in China, the following analyses,
target market and marketing strategy only cover for BreadTalk in the Chinese market.
? Political
China has governed and controlled by one party system since in the past in order to
reduce the conflict of each province which leads to the cohesions of leadership and the domestic
stabilities. Nowadays, Chinese government are governed and dominated by the paramount leader
Xi Jinping who has been promoted to be the president of China since in 2013 (Franklin, 2013).
The stability of Chinese politics has significantly affected BreadTalk in order to enter the
Chinese market. The foreign organisations which aim to enter the Chinese market will be
developed steadily by the government stability. In terms of stable political environment in China,
the foreign organisations will not be threatened by the political disorder and tensions; they
therefore could be able to operate their businesses smoothly in Chinese market.
In addition, The China-Singapore Free Trade Agreement (CSFTA) was signed on 23
October 2008 in Beijing. This is the first comprehensive bilateral FTA that China has signed
with Singapore, including trade in goods, trade in services, rules of origin, trade remedies, and
sanitary measures, technical barriers to trade, customs procedures, economic cooperation and
dispute settlement, among others. With this FTA, there will be the long-term standing
relationship shared between China and Singapore, which build a stable foundation for investing
and establishing businesses in China. It also benefits and increases the Singaporean
organisations�� competitiveness in China (International Enterprise Singapore, 2012).
Additionally, during the annual APEC meeting in Beijing in 2014, the Chinese President Xi
Jinping has told the Prime Minister Lee Hsien Loong that Sino-Singapore ties have always been
one step ahead of China's ties with ASEAN countries (The Straits Times, 2014).
In short, the stable political system, and bilateral free trade agreement between Singapore
and China indicate that BreadTalk entering China is a favourable move in the political
perspective.

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2010 2011 2012 2013 2014
Singapore Dollar (SGD)
to Chinese Yuan
Renminbi (CNY)
4.96 4.9 6.3 4.78 4.73
0
1
2
3
4
5
6
7
CNY
1 Singapore Dollar (SGD) to Chinese Yuan Renminbi
(CNY)
? Economics
According to the CCTV News (2014), Chinese Premier Li Keqiang declared that China
has determined to target their Gross Domestic Product (GDP) growth rate at 7.5% in 2014 as
same as the last year, and will maintain the consumer inflation rate at around 3.5% (Li Keqiang,
2014). The economic growth is anticipated to continue expand in 2015 since China has
attempted to revamp their maturing economy and move it towards slower but better-quality
growth. Furthermore, more than 10 million urban jobs expected to be created in order to ensure
the registered urban unemployment rate will not rise above 4.6%. The employment would be the
key factor that the state taking into consideration with the economic condition in the future
(CCTV News, 2014).
In addition, the interest rate, currency exchange and stability of exchange rate should be
taken into account for foreign businesses to enter the Chinese market. As Singapore and China
has signed the Free Trade Agreement which leads to the lower trade barrier, so the stability of
exchange rate is very significant for the trade between Singapore and China. However, with the
increase of GDP and consumer inflation in China, the Chinese currency (RMB) is appreciated
over the years; in contrast, the Singapore Dollar is depreciated as illustrated in the table below.
The depreciation of Singapore currency implies that investors in Singapore have to pay more in
Singapore dollars to all its value chain members which evitably increase its operational cost in
China. Because of the better quality of economic growth, BreadTalk therefore can have a
positive future in China; however, the appreciation of Chinese currency should be primarily
taken into consideration, and securing a future forward contract therefore is recommended in
order to minimise loss.

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? Social
China is the world's most populated country, with a population of over 1.35 billion
(World Bank, 2012). Accompanying with the increasing density of population in the urban areas,
the demand of goods therefore steadily increases, and so as the consumer consumption rate.
According the academic report of bakeries industry in China, it stated that the eating habit has
been changed during the past 10 years because of the tight working schedule among Chinese
urban middle class. A great number of new generations choose to eat baked goods (e.g. bread,
pastries and cakes) rather than traditional Chinese food. Additionally, the demand of baked
goods in China has increased from 3.7 billion RMB to 7.8 billion RMB (Jessop, 2010).
The changing of Chinese consumer behaviour in the urban areas has stimulated the
increase in baked goods demand which illustrates the great opportunity for BreadTalk to enter
the Chinese market.
? Technological
For the technological factors comprise of the spread of social network site technology
and the availability of Internet access. The internet has been used extensively all over the
country, which has brought China to become the world��s largest Internet network following.
There were about 564 million internet users by the end of December 2012. Nowadays, Wi-Fi
Internet access has become more popular, a lot of public places have free Wi-Fi services for their
customers, especially in big cities such as Hangzhou and Shanghai. In Hangzhou, free outdoor
Wi-Fi is available in most urban areas. In Shanghai, there are free Wi-Fi services available in
public places like Shanghai Museum, the Bund and shopping malls. In addition, Chinese mobile
network providers have added about 5.4 million 3G subscribed users and over 15.6 million 4G
subscribed users in the period from July to August of this year (Trefis Team, 2014). These data
have shown that Chinese people are very keen in using internet as supported by the increasing
amount of Chinese internet users as stated in the graph below.

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(Lawton, 2012)
BreadTalk should therefore utilise this market condition, incorporate to its marketing
campaign in particular the communication strategy in order to reach the mass number of its
target market.
Furthermore, transportations and infrastructures in China have experienced major
expansions and growths in the recent years. According to the research, China has made huge
strides in the high-speed train-manufacturing sector and has been developing an extensive high-
speed rail network across the country in the past half-decade. China has become one of the
largest manufacturers of high-speed trains currently in the world and has planned to become the
world��s largest high-speed rail network (Manipal University, 2013). Therefore, this would be
another plus point for BreadTalk��s in operating supply chain from the warehouses to the stores.
? Environmental
The idea of being green or environmental friendly has become more popular in Chinese
society nowadays. According to China daily (2010), an international green industry expo have
been held in Beijing in November 2010 in order to educate about environmental friendly and
exhibit the domestic corporations. Foreign companies are also likely to explore Chinese green
market to develop a green economy in China such as emission reductions, low carbon

13
technology and clean energy. Nevertheless, the Chinese rapid industrial developments cause
serious negative impacts on environments including decreasing natural resources and increasing
pollution. Some research estimate pollution costs hold the Chinese economy from 7% - 10% of
GDP per year (The Encyclopedia of Earth, 2012). Therefore, China has prevented supermarkets
and retailers from giving shoppers plastic bags for free. The customers have to pay for the plastic
bags if they want it when shopping in the supermarkets or any other retail stores. China
prohibited the sale, production and use of ultra-thin plastic bags which are less than 0.025
millimetres thick. These rules took effect nationwide in China since 1st
June 2008 (Upton, 2013).
BreadTalk��s current practice is that not only use one bag for one piece of bread when the
customers take their tray of bread to the cashier but also put it all goes into a bigger plastic bag
after packaging the breads into a series of small plastic bags. As a result, this creates more
pollution to the environment as well as more cost for purchasing inputs. The recent changes of
banning plastic bag in China therefore have direct impact on BreadTalk��s operation in China, the
implications here is to reconsider the packaging of the product from plastic bag to paper or
reusable packaging.
? Legal
The state council of the People��s Republic of China adopted the regulations on the
Administration of Commercial Franchise and scheduled to take effect from 1st
May 2007
onwards (Wageman, 2014). In recent years, China has revised its franchising policies in order to
facilitate investors and create environment friendly for investing in franchising. The foreign
operators can launch their franchising operations in China either by setting up an enterprise in
China or through cross border franchising. All franchising operations in China whether domestic
or with a foreign component, they must comply with the regulations of the Administration of
Commercial Franchising (Tam, 2013). In addition, one of the key requirements of the franchising
regulations is that required franchisors to operate a minimum of two directly owned stores or
retail outlets for at least one year within the territory of China in order to gain the franchising
license. This requirement is usually called the ��2+1 Rule��. In the case of ��2+1�� Rule, one of the
important issues is the new filing measures are also required, franchisors need to provide some
evidences that they comply with the ��2+1�� rule in China.

14
Therefore, BreadTalk could enter smoothly to Chinese market since cross border
franchising in China was allowed for according to the regulations on the Administration of
Commercial Franchise. As for the ��2+1�� Rule, BreadTalk are required to operate more than two
bakeries for at least one year and provide the evidences in order to obey the laws in China so as
to expand the bakeries more sustainable in the future.
6.0 SWOT analysis
6.1 Strength analysis
BreadTalk would be able to deliver better value to customers by enhancing these
competitive advantages by the following issues:
? International recognised brand
There are a wide range of alternatives in bakery industry but brand is the key to success
for the company in order to differentiate from competitors. BreadTalk��s evolution and growth as
an internationally recognised bakery brand over the last 12 years has been encapsulated through
three distinctive Generations with over 600 bakery outlets overseas (BreadTalk Group Limited,
2013). Therefore, its robust brand creates loyalty and advocacy of consumer as well as attracting
new customers.
? Innovative bread flavours and designs
BreadTalk has differentiated itself from the traditional bakeries with sleek looking store
facades and an open-concept design (BreadTalk Group Limited, 2013). It allows consumers to
view the bakers at work and attracts a lot of consumers�� interest in its productions. In addition,
BreadTalk has given its buns a creative and story-telling name to guide its consumers about the
taste.
Innovation has always been an important performance measure for food industry.
BreadTalk already has two specialised research and development teams (BreadTalk Group
Limited, 2013), which are devoted to create and explore new bread flavours and designs to keep
up to date of the ever-evolving consumer preferences and taste. Thus, before full implementation
into the outlets, some prototypes are provided to consumer for developing undergo test on the

15
market. With such strong commitment to creative innovation, BreadTalk has carved up a
reputation of being a trendsetter, and is able to command a higher premium as compared to other
bakeries. It also prevents brand boredom and creates a variety of bread in bakery industry where
consumer tastes tend to change frequently.
? A wide range of product offerings
BreadTalk has invested in research and development team to continuously develop new
buns for their bakeries. About ten items are introduced every four months (BreadTalk Group
Limited, 2013). Therefore, BreadTalk currently offers more than 150 varieties of breads, buns,
pastries and cakes. Due to the size of the bakery outlet, every bakery can offers 40 to 60 different
items daily (BreadTalk Group Limited, 2013). Thus, it has set BreadTalk apart from its
competitors.
? Strong partnership network in Asia
BreadTalk already has a presence in 16 countries spread across Asia and the Middle East.
Its global network of estate managers builds strong relationship with supply chains and
international partners (BreadTalk Group Limited, 2013). In August 2013, BreadTalk has been
partnership with Japan��s Sanrio Company, and launched an exclusive range of Hello Kitty cakes,
buns, cupcakes and doughnuts complete with specially designed packaging at all of BreadTalk
outlets in Singapore (Jazpster, 2013). Therefore, BreadTalk has the competitive advantages in
order to further expand its business in very strategic locations.
6.2 Weakness analysis
? High cost of productions
Since BreadTalk position itself as an innovative bakery company that provides premium
quality of breads, it causes BreadTalk lots of money in terms of research & development of the
products and high production costs. This would have a negative impact on net profit of
BreadTalk. In addition, BreadTalk is using high price strategy in positioning; this leads to the
loss of large amount of customers who have high-level price sensitivity.

16
? A few direct control over overseas operations
BreadTalk has mostly utilised a franchise model system to expand the BreadTalk brand
name (BreadTalk Group Limited, 2013). This system in which semi-independent business
owners pay fees to BreadTalk in return for the right to become identified with its trademark.
However, it leads to a few direct controls over overseas operations. Some inefficient franchisees
may ruin BreadTalk��s brand in the market, and some may turn into future competitors.
? No loyal customer base in Chinese market
BreadTalk entered the Chinese market in 2003 (BreadTalk Group Limited, 2013), and its
franchised store has established in a few main cities such as Shanghai, Beijing, Guangzhou etc.
accounting for 40 ones. However, BreadTalk has not directly provided Chinese customers with
information which is tailored to their needs and interests. Therefore, lack of direct control of its
franchisees, it is difficult to increase the loyalty and maintain long-term relationship with
customers.

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In addition, the opportunities and threats for BreadTalk in the Chinese market are drawn
directly from the above PESTEL analysis and summarised in the SWOT analysis table below.
Table 1: SWOT analysis
Strengths
? Successful business model
? Strong financial stability
? Experienced management team
? Strong research & development team
Weaknesses
? High cost of productions
? A few direct control over overseas operations
? No loyal customer base in Chinese market
? Lack of expertise in Chinese market
? Difficulty in maintaining standard quality over
the outlets
? Price-sensitivity of customers
Opportunities
? Further growth and expansion in China
? Long staying period for Singaporean business
persons
? Growing baked goods demand in China
? Increasing of potential customers
? Substantial number of internet & social media
users
? Expanding of transportations and
infrastructures in China
? Friendly franchising policy in China
Threats
? Intense competition in bakery industry
? Over saturation in china bakery market
? Rising of food and labour costs
? Innovative products can be easily replicated
? Fluctuation of currency exchange rate
? Plastic bags policy in China

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6.3 Strategic focus
A few strategies are formed after matching between strengths and opportunities, refers to
Table 2, SWOT matrix; the strategic focus of BreadTalk is growth and expansion.
Table 2: SWOT matrix, S-O strategies
Strengths
? Successful business model
? Strong financial stability
? Experienced management team
? Strong research & development team
Opportunities
? Further growth and expansion in China
? Long staying period for Singaporean
business persons
? Growing baked goods demand in China
? Increasing of potential customers
? Substantial number of internet & social
media users
? Expanding of transportations and
infrastructures in China
? Friendly franchising policy in China
S-O strategies
? Expand the customer base
? Expand the channel of selling, i.e. strategic
partners, social media, delivery services
? Enlarge the business scale, recruit more
human resource and increase the number of
outlets

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7.0 Market analysis
First of all, the customer behaviours are associated with the developed trend of Chinese
bakery industry. According to the Huidian Research (2013), it stated that the annual sales growth
rate of the bakery industry in China has surpassed 10% in recent years, which was absolutely
higher than the average growth rate of food industry. The bakery market in China is expected to
grow significantly, especially in the 2nd
and 3rd
tier cities. In the next 5 years, the growth rate is
projected to increase and remain at around 30%. Additionally, there are numerous of recognised
foreign brands that have entered the Chinese market vigorously which lead to high competitions
in the Chinese market. Many major brands have accelerated their R&D to improve their products
and strengthen their marketing efforts in order to obtain the market share of bakery industry in
China.
This research data have shown that the Chinese bakery industry has entered the rapid
development period; bakery products have become more popular in China. On the other hand,
this could imply the increasing in the demand of bakery products in recent years, which
contribute the direct impact to the entry of BreadTalk.
7.1 Competitor analysis
In principle, the demand of constant updating the baked goods on offer is driven by the
intense competition in China (Gao, 2012). Hence, BreadTalk need to perceive and analyse its
competitors so as to expand and operate its business continuously in China. BreadTalk has direct
and indirect competitors ranging from huge bakery franchise brands to individual bakery outlets
in China.
? Paris Baguette
Key international competitors like Paris Baguette from South Korea which is a sister
brand of Paris Croissant. It currently has operated about 80 outlets in China and planned to
establish more than 100 outlets in overseas markets in order to become more global. Paris
Baguette uses its premium brand to differentiate itself and target the upper class in comparison
with other bakery brands in China (Ryu, Jang, & Cho, 2014). Most of the outlets have
established in some first-tier cities such as Beijing, Shanghai and Hangzhou. The caf�� offers light
brunch dishes such as sandwiches, pancakes and salads, while the bakery section is filled with a

20
great variety of cookies, cakes, snacks and breads. Besides, Paris Baguette looks very trendy and
modern with its interior design. However, the price of breads, cakes and pastries are more
expensive compare to other bakery stores.
? 85�� Bakery
85�� Bakery and Caf�� is one of the powerful national brands from Taiwan and developed
rapidly in China. It opened its first store in Shanghai and currently runs a total of 385 stores in
Mainland China, 4 stores in Hong Kong and over 450 stores in Taiwan. Those stores in Mainland
China are also opened in the big cities like Hangzhou, Suzhou, Beijing, and other locations
nationwide. 85-Degree Bakery ranks first in terms of sales among foreign baking companies and
it plans to open a total of 1000 stores within six years in main cities such as Chongqing and
Shenzhen so as to keep its current status (China Briefing, 2013). 85�� Bakery Cafe mainly sells
cakes, breads and drinks in its stores such as sea salt coffee, vanilla cafe latte, cappuccino, half-
moon sponge cakes, and coconut custard. 85�� Bakery has more than 70 different types of breads
with prices ranging from about 8 to 15RMB. Its interior design is not as good as Paris Baguette
but it provides a comfortable atmosphere and it is a 24-hour caf�� style.
? Christine
Christine is also one of the key home grown competitors and it started business in
Shanghai, China. It currently owns about 800 stores in the Yangtze River Delta area and operates
one of the largest retail chains selling bakery products in China both in terms of revenue and the
number of retail outlets (Christine International Holdings Limited, n.d.). There are some main
cities and provinces that located in the Yangtze River Delta region including Jiangsu and
Zhejiang provinces. The retail network of Christine primarily consists of good neighbour stores,
flagship stores, subway stores and European style fresh-bake stores and each targeting different
customer groups. Furthermore, it offers more than 2200 varieties of cakes, moon cakes, pastries,
breads, and other certain products with many new products launched monthly in order to meet
different customer demands. In addition, Christine was the first company that obtained a
certification of ISO9001 for quality management and Critical Control Point (HACCP) for food
safety (Christine International Holdings Limited, n.d.).

21
? Holiland
Holiland is the major key home grown competitor and it is one of the largest bakery
chains in China. Its business is mainly in Beijing, it controls more than 1000 cake shops in 70
medium and large-sized cities including Beijing, Shanghai, Shenyang and Chengdu. Holiland
specialises in breads, dim sum and cakes and control about 85.7% of the market which is
dominating the Chinese bakery market nowadays (China Daily, 2010). Moreover, it has focused
on aggressive store expansion according to the principle that customers do not travel long
distances to purchase the breads and cakes. It has developed into a company that produces cakes,
bread, moon cakes, western snacks, Chinese snacks and Tang Yuan. The average price of
Holiland bread is inexpensive compare with other bakeries such as 85�� Bakery Cafe and Paris
Baguette. Holiland aims to target the lower middle-class customers by selling the breads at
around 3 to 8 RMB. Besides, it is also a leading company in domestic baking industry which has
thousands of high-talented employees (Tianjin TEDA Trade Promotion Centre, 2014).
All of these competitors may keep expanding to surrounding areas and their bakeries can
be found at various hotels, neighbourhoods, shopping street and shopping mall in China such as
those first-tier cities like Beijing, Shanghai, Hangzhou and Guangzhou. These competitors also
offer some similar products with lower competitive prices to compete with BreadTalk in China.
Currently, BreadTalk competes against its competitors in China mainly on location choice,
exquisite d��cor and constant innovation of bakery goods on offer in order to overwhelm those
competitors. Besides, there are still more competitors that need to be considered such as the local
sole, family business and small-scaled bakeries in China as well. Overall, these non-branded
competitors located at neighbourhoods usually offer limited product varieties but much lower
price than the larger bakery chains.
Overall, the competitors of BreadTalk bakery use their own unique commercial strategy
in order to compete against BreadTalk. For example, the major competitors such as Paris
Baguette, they compete against BreadTalk by the high quality, style, diversification, and
localisation of the bakery as stated in the market-positioning graph below. The indirect
competitions such as non-branded bakeries compete against BreadTalk by its availability in the
residential community and their consumers�� loyalty rather than in retail hotpot for high foot
traffic.

22
7.2 Customer analysis
Regarding the IBIS World Industry Report of Bread & Bakery Product Manufacturing in
China, it reported that the demand of bread and bakery products has remained steadily
substantial. Bakery products have become daily necessities for many people, especially for
students and workers in urban areas. With the intensive government food regulations, there has
been an increase of demand for high-quality bread and bakery products, more customers pay
great attention to the quality and nutritious attributes of bread and bakery products. Therefore,
the consumer habit and behaviour for the daily food consumption has been changed nowadays.
The customers are not only first considering the bread flavour, but the nutritious and qualities of
bread are also the key factors that customers taking into consideration (IBIS World, 2011).
In addition, the customers�� purchasing power has remained growing in China recently.
According the statics from the World FactBook of Central Intelligence Agency, it was shown
that the gross domestic product (GDP) of China has been raised from $11.54 trillion US dollars
to 13.39 trillion US dollars during 2011 to 2013 (CIA, 2014). Moreover, The International
Monetary Fund has announced that the purchasing power parity surpassed that of the United
States to become the world's largest (Schiavenza, 2014).
BreadTalk
Price
Quality
Paris Baguette
Holiland
85��
Christine

23
With the increasing purchasing power, it could therefore stimulate the consumption rate
of food and bakery in China to continue to increase. Hence, BreadTalk should promote its
products with higher price than the other bakery brands in China��s market, since the higher price
and position are associated with higher food quality and safety in the consumer perspectives.
7.3 Competitive analysis
In the case of BreadTalk, it has utilised the differentiation strategy to gain the competitive
advantages in order to compete in mass market. Regarding BreadTalk (n.d.), it has totally
changed the way customers enjoyed bread. BreadTalk has presented the art of bread-making
through the novel creations and given names of its breads with the modern style of its outlets. A
wide range of new innovative creations of breads have been launched to differentiate itself from
competitors. As can be seen in the Euro bread series, that combines the taste and quality of
European breads with a variety of Asian flavours, such as drunken longan, black sesame, spinach
and sweet potato. Moreover, BreadTalk pays lots of attentions towards the on-going of healthy
trend by introducing a series of healthy breads that has been currently awarded for the Healthier
Choice Symbol by Singapore��s Health Promotion Board (HPB).
With the refreshed store concept and engaging platform plus a variety of unique and
innovative breads that no one is not yet offering or unable to do so as its competitive advantages,
BreadTalk therefore has been successfully differentiated itself from other competitors and
become leader of the market in many countries, especially in Singapore.

24
8.0 Target market
Segmentation base Selected variables Description
Geographic Density 1st
, 2nd
and 3rd
tier cities
Demographic
Income Above 4000 Yuan per month
Age 18-40 years old
Psychological
Social class Middle class and over
Lifestyle Rush and hasty
Behavioural Benefits sought Premium quality
BreadTalk has primarily targeted working adults and white-collar professions who live in
the 1st
tier cities. These people are rush and hasty all day because of their working-life in the
urban areas, they do not have much time to cook or eat. Fast food like breads that are convenient
for carrying on the way, therefore would likely be the most suitable breakfast for their lifestyle
instead of the proper meal (Zi, 2013). Moreover, the target markets are expected to be in the
middle class or over and have more than 4000 Yuan monthly income due to the price and quality
of BreadTalk are higher than the average of other bread shops (Carrie, 2005).
In order to expand and increase the market penetration, working adults and white-collar
professions in the 2nd
and 3rd
tier cities, likewise, higher-end and more affluent clienteles in the
urban areas who seek premium quality of breads could be targeted as the primary targets for
BreadTalk.
In addition, the secondary target markets would be female teenagers. In China, the female
teenagers represented 23% of the whole population (Chen, 2011). It reflects a large market for
BreadTalk to earn more profits and increase its market share. As young females are perceived as
a group that is more adventurous in experiencing new flavours, BreadTalk therefore would be
their ideal breads because it offers a various taste of bread by using natural ingredients and

25
processes to meet the demand of sweet tastes of the female teenagers, such as Floss bread,
Brown sugar toast and French country pumpkin (Lim, 2013).
9.0 Marketing objectives
? To raise awareness of BreadTalk in China by 20% within 1 year
? To increase sales of BreadTalk in China by 15% within 1 year
? To obtain more market share in the Chinese bakery industry by 3% within 1 year
10.0 Marketing strategy
The bakery market in China is very intense because of the large amount of local and
international competitors in the market. Thus, in order to gain more revenue and awareness from
customers among those competitors, the product and service differentiation are required. Firstly,
BreadTalk is needed to maintain the high quality standard of its products to reflect its image as a
premium brand in order to differentiate from the competitors. Secondly, a wide range of product
offerings should be maintained and developed continuously by launching or improving 10 items
every 3 �C 4 months based on R&D team��s recommendations to gain more preferences and
awareness from the customers. Thirdly, in the case of services, normally a local bakery store
does not provide high quality standard of services. By providing premium services through well-
trained employees and comfortable atmosphere in the outlets, BreadTalk could be able to achieve
high level of customer satisfaction and stand out from its competitors in the market.
10.1 Product
Creative given name
This is one of the product strategies that BreadTalk has successfully utilised it to gain
more customer attention and awareness. A creative and interesting name is given to each
BreadTalk��s bread in order to convey the story and taste of the bread to customers as . The name
allows the customers to learn about the bread before purchasing. Therefore, BreadTalk should
continue this product strategy because it could be able to increase the possibility for the
customers to purchase more bread and cakes while spending more time in the outlets by
considering each bread name.

26
Customised service
It is a service that allows customers to create their own bread or cakes through
BreadTalk��s creative patterns provided. The customers can mix and match the types of bread,
flavours and toppings; they also can write some messages on their bread or cakes. This service
will be offered with a minimum purchase 6 items of bread or 1 pound of cake for each design
plus an additional 10% of service charge. By doing so, BreadTalk could differentiate itself
significantly from the competitors by providing unique experiences to the customers, as well as
gain more awareness and preferences from the target audiences.
Mickey Mouse bread and cakes
The first Disneyland in Mainland China, Shanghai Disney Resort will be located in
Pudong, Shanghai. It comprises of Shanghai Disneyland, 2 themed hotels, a large retail venue.
The resort is scheduled to open in 2016 (Shanghai Disney Resort, n.d.). This could be a
promising opportunity for BreadTalk to associate with Shanghai Disney Resort in order to create
and launch bakery products in Mickey Mouse or other cartoon designs in Shanghai Disney
Resort and BreadTalk��s outlets as can be seen in Hong Kong Disneyland that the bakery is
offered in cartoon design in the outlet (Disney Parks, n.d.).

27
In order to entice Disneyland to have BreadTalk on site, BreadTalk may purpose to return
Disneyland with royalty fees and 40% operating profits of all the BreadTalk outlets in Shanghai
Disney Resort.
10.2 Price
The Premium pricing strategy should be adopted. This pricing strategy intended to
exploit the tendency for buyers to assume that expensive bread enjoy an exceptional reputation
or represent exceptional quality and distinction (Gettings ,2002). BreadTalk therefore should
maintain the price of its products around 10% - 15% higher than the industry average in order to
reflect its premium brand image and encourage favourable perceptions among the target markets.
10.3 Place
Supply Chains
China agriculture ranks first in the world in terms of the production of cereals, cotton,
fruit, vegetables, meat, poultry, eggs and fishery products (Ministry of Agriculture, n.d.). Hence,
BreadTalk does not demand to import ingredients because it could have ingredients in a cheaper
price in China comparing to Singapore. However, a logistic system in China to transport the
agriculture products is lack of safety and not very effective because of pollution, effects of
exhaust emission, traffic congestion and wastage exist in agriculture products in the logistic.
Since BreadTalk demand good quality of fresh ingredients to produce and serve fresh
bakery, it should partnership with an experienced and reliable company to supply and deliver
ingredients in each region. As can be seen in Huadong region (East China), The BreadTalk
Group has been partnership with Ajinomoto Bakery to develop a joint venture facility to produce
frozen dough for bakeries (BreadTalk, n.d.).
Diverse distribution channels
BreadTalk do not require outbound products from the main company because every piece
of bread is baked freshly every morning and served in a store. By this way, BreadTalk still need
to deliver ingredients every day. BreadTalk therefore should have a warehouse like a central
kitchen to store and prepare the ingredients from its suppliers before delivering to each

28
BreadTalk outlet in an area. The warehouse will be located in each 1st
tier cities of Chin that
BreadTalk has opened its outlets such as Shanghai, Beijing, Tianjin and Chongqing. With these
warehouses, BreadTalk could be able to improve the logistic system in order to deliver fresh
ingredients daily. Likewise, it could be able to provide improvement for its product quality
standard by conducting the quality checking for the ingredients from its suppliers before deliver
to the BreadTalk outlets.
Store locations
BreadTalk will mainly expand its outlets through franchising. By doing so, BreadTalk
could reduce risks and investments in expanding the outlets. According to the target markets, the
expansion of BreadTalk outlets will primarily be located at large community malls, business
centres and MRT stations in 2nd
and 3rd
tier cities due to high potential to attract attentions for the
target audiences.
As mentioned above about Shanghai Disney Resort, BreadTalk should also purpose as a
partnership to open its outlets in the Disney Resort. According to Travel China Guide (n.d.),
Shanghai Disneyland is projected to have around 7 �C 17 million annual tourists visiting. Thus,
this could be good opportunity for BreadTalk to widen its market and increase sales.
? Franchise
The franchisee will be selected after it has satisfied the qualification criteria of
BreadTalk comprising of having a strong network of contacts and financial background
(BreadTalk, 2003). The franchisees have to sign a 10 year agreement with an option to
renew, plus an estimated initial start-up investment of US$500,000 to cover master
franchise fee and preparation of the first outlet (Bursa Franchise, n.d.).
In order to heighten the possibility of success, BreadTalk has created the franchise
division to work with its franchisees about the selection of locations and outlet designs.
The selection process is monitored by the franchise division and reviewed by the
management team. All of the franchisees are required to experience 3 �C 6 month worth of
training upon signing on before they can actually open their first outlet. Moreover,

29
BreadTalk has scheduled regular visits to each franchise outlet in order to maintain its
high quality standard of operating procedures, products and services (Morgan, 2010).
Mobile and Internet application
This application is a channel for customers to place their orders to BreadTalk. The
application will be provided on the official BreadTalk��s website in China and on BreadTalk
application in smartphones. The customers can simply access to the website or application via
their smartphones, then choose bread or cakes and place an order respectively with the minimum
purchase of 10 Yuan. After the order has been placed, there will be 2 options for the customers:
? Pre-order: The customers are willing to collect the order by themself at the store
and time that they have selected. With this method, the customers are required to
make a payment via Credit/Debit card only.
? Free delivery: BreadTalk will deliver the order to the customers within 30
minutes. With this method, the customers are required to make a payment via
Credit/Debit card or cash.
Regarding the Customised service, the customers could also place their customised orders
through this application. The customers can simply access to the website or application via their
smartphones, then choose the Customised service, then start create their own bread or cakes, and
place an order respectively. After the order has been placed, the customers will follow the same
exact method as described above.
10.4 Promotion
Golden hour
Since BreadTalk bakes a new bread every day. Even though some of the breads could not
be sold out in one day, BreadTalk will not keep and offer that bread again in the next day
(BreadTalk, n.d.). This could cause lots of loss in terms of resources and profits.
The Golden hour is the promotion to encourage customers to buy more before the outlet
is closing every day in order to solve the above problem and increase sales. The promotion will
offer customer a 30% discount for breads in the last hour of every day. This promotion could

30
attract customer attentions and persuade them to buy more bread in last hour of store operating
time. However, the customers need to understand that if they want new baking bread, they need
to come earlier because most of the breads that BreadTalk offers in last hour promotion are not
newly baked.
Traditional moon cake promotion
Chinese culture is so diverse and unique, yet harmoniously blended, and presents itself an
invaluable asset to the world (Chinahilight.com, n.d.). Chinese Moon Festival is traditionally
celebrated on the day 15th
of the eighth lunisolar month which is in September or October.
Chinese people believe a full moon is a symbol of peace, prosperity, and family reunion. On
Mid-Autumn Festival night the moon is supposed to be the brightest and fullest, which is why
the festival is also known as the "Day of Reunion" and the "Moon Festival". In the festival,
Chinese people are having dinner with family, making moon cakes, and lighting up Kongming
lanterns. BreadTalk should take this opportunity serving a special moon cake edition as a one of
its major menu during the Mid-Autumn Festival. It could attract attentions and gain awareness
form the customers as well as encourage a first try from new Chinese customers.
Talk through breads
Under the on-going international campaign ��Get Talking��, BreadTalk should promote the
��Talk through breads�� as its promotion on the coming Valentine��s Day in China. The idea of this
promotion is to encourage customers to express their feelings to family, friends or lovers by
writing message on breads through the Customised service with free charge of services. The
breads will be delivered with one red rose as a complement from BreadTalk to the person on the
exact time and place that the customers have chosen. Therefore, BreadTalk could be able to
create lots of awareness and gain more preference form the customers who would like to
specially impress their lovers with something new and for those who have limited budget. This
promotion will be offered only in February.

31
Digital billboard
Advertising strategies
? Internet advertising
As mentioned in PESTEL analysis that China has become the world��s largest Internet
network following, internet will be utilised as a main media for advertising. A Facebook page,
Twitter and Instagram of BreadTalk will be created and encourage customers to follow. The
interactive marketing team will be formed to harness these social media. BreadTalk��s products,
promotions and campaigns will be greatly promoted through these channels in order to reach out
the mass target markets.
? Outdoor advertising
Outdoor advertising will be used as support media for BreadTalk in order to create brand
awareness and recognition, and remind customers about the on-going promotions and
campaigns.
o Billboards
Large 3D and Digital billboards in the urban areas of 1st
, 2nd
and 3rd
tier cities could be
used as one of BreadTalk��s advertising tools. The purpose of using large billboards is to create
awareness of BreadTalk in the mass market rather than promote its product. Billboards
advertising also contribute to reflect the prestige image of BreadTalk.
3D billboard

32
Small billboard Brochure
Transit advertising
On the other hand, small billboard advertisements and brochures are likely to be used in
order to promote certain products and promotions such as the Golden hour, Traditional moon
cake and Talk through breads. BreadTalk could use small billboard advertisements at its outlets
whereas brochures can be given away at the MRT station or around the outlet area.
o Transit advertising
In order to reach out target market effectively, transit advertising could be adopted.
According to the target markets are working people, most of them are using public transportation
like MRT in rush morning. Additionally, there are 14 metro lines and 329 stations. The Shanghai
Metro ranks in the third place of the world in annual ridership with 2.5 billion rides delivered in
2013 (�ع��Ϻ��, 2013). And on a normal weekday over 8 million people use the Shanghai
Metro ("889.8��˴� ��ĩ�Ϻ��ٴ��¸�". �Ϻ��˹��, 2014). Moreover, the
expansion of BreadTalk outlets will be primarily focusing to open at major MRT station in the
2nd
and 3rd
tier cities. Therefore, painting BreadTalk creative advertisement at MRT stations in
the 1st
, 2nd
and 3rd
tier cities could be able to remind the customers about promotions and
campaigns advertised on the internet, significantly increase customer awareness and stimulate
the sales of BreadTalk.

33
10.5 People
Employee training programs
To guarantee premium services provided to customers, BreadTalk needs to ensure the
efficiencies of the employees in terms of positive opinions, readiness and service minds. Hence,
BreadTalk should provide a training program for its staffs and its franchisees�� employees before
actually start working. In the training program, it is designed to build organisation culture by
introducing BreadTalk��s history, visions and missions in every program. The training will be
divided into 2 programs including bread & cake baker and service staff. Each program is directly
related to the knowledge and skills to function a particular job.
As it is needed to employ Chinese staffs, many of them may have never done the
particular jobs before. In the case of new employees, the training is absolutely necessary for
them to learn high quality standard of services. It also gives the employees an idea how to
function their jobs as well as confidences in their abilities. Moreover, it greatly diminishes the
chance of making mistakes of new staffs that may ruin BreadTalk��s profits, credibility, image
and reputations.
Control and Evaluation
In order to maintain good performance standard of the employees, an evaluation will be
conducted every 3 months. It will focuses mainly on staff performance in the outlet, resources
used and customer satisfaction. Firstly, a performance of staff will be tested by a store manager.
The store manager will observe behaviour of the staffs about concentration in their job and how
well they perform. If the manager notices a drop in performance, he/she needs to approach them
to encourage or find out what is the reason that causes the performance dropped. Secondly,
BreadTalk should evaluate the performance by inventory usage such as failures in baking
process or failures in delivery service to customers. This evaluation can be testing by the amount
of wasted resources that the staffs made during their works. Lastly, customer satisfaction could
be evaluated by the number of negative and positive feedbacks given by the customers through a
customer survey and a feedback box.

34
10.6 Process
Self-service
In every BreadTalk outlet, it is a self-served bakery. Customers may use a tongs and a
tray to select breads that they want to purchase from the shelf. After that, they need to take the
breads to the cashier counter in order to make a payment by cash or Debit/Credit card, and then
the employees will package it for the customers.
Customer interactive
BreadTalk should provide a feedback page on its official website for customers to give
their feedback about the products and services. Customers can simply post their comment or
feedback online in the website via their smartphones. The page will be checked daily to solve the
problem and improve the quality of products and services. Moreover, BreadTalk��s staffs in each
outlet should approach customers to interact with them about their satisfactions such as the
quality of products and services of their last purchase in order to seek for suggestions and
improvement as well as encourage them to participate in the feedback page on the website. After
that, the manager of the outlet may report to the main company to consider the improvement
accordingly.

35
See through kitchen Opened fresh design
10.7 Physical evidence
See-through Kitchen
According to the research about Chinese customer behaviour, many people are willing to
see the process of cooking to prove about the hygiene level since China has a low level of
regulations to control about food��s hygiene (Yongmin, 2007). Whereas many bakery stores have
covered their kitchens, every outlet of BreadTalk has a signature design called See-through
Kitchen that allows customers to actually see ingredients, chefs�� expertise and the process.
With the See-through Kitchen, the customers could be assured that BreadTalk have a
very high hygiene level. The kitchen also illustrates the high technological innovation of
equipment using for baking a bread and cake. These would be advantages to BreadTalk gaining
the customer awareness and increasing the curiosity among its customers.

36
11.0 Implementation and control
11.1 Implementation
In order to be able to compete and success in the intense bakery market in China,
BreadTalk should be flexible and agile in operating. It therefore should adopt the marketing
Implementation-through-Change approach. Affordability budgeting could be utilised to do the
marketing budget by using the retained profits from the last year as the initial capital which is
around $22.4 million (BradTalk Group Limited, 2013).
Time Frame Activity Description Budget
1 March - 1
July 2015
Warehouse
A warehouse is required to store
ingredients before delivering to each
store in an area.
$1,000,000
Start at 1 July
2015
Mobile and Internet
Application
Online application and website allow
customers to place an order or customise
their bread and cake via their computers
or smartphones.
$100,000
Start at 1 July
2015
Golden hour
A 30% discount promotion will be
offered in the last operating hour of
every day.
$500,000
February 2015 Talk through breads
Free service charge for using
Customised service.
$300,000
1 June - 1 Aug
2015
Internet and
Outdoor Ads
Internet Ads
? Through social media
Outdoor Ads
? Digital billboards in urban areas.
? Transit advertising in MRT stations
in 1st
, 2nd
and 3rd
tier cities
$3,000,000

37
11.2 Evaluation and control
Formal control
The marketing plan will be able to achieve and success if the company implemented
properly by using Output control, Process control and Input Control.
Input control
? Evaluation of product quality by getting feedback from
customers.
? A feasible budget for the plan should be estimated and
prepared by financial management team.
Process control
? Ensure employees�� skills to reach the standard.
? Provide a great work environment due to management
commitment.
Output control
? The contrast of gross profit and sales volume in the budget for
estimating how much it could gain from a new plan.
Informal control
Focus on the commitment, satisfaction and confidence in knowledge and skills of all
employees. It is essential to train the employees and make them feel familiar with the company
goal, culture and process.
Employee Commitment and
satisfaction
? Encourage and guide employees to perform their job
effectively.
? Arrange personal need for each work with clear goals.
Employee Social Control ? Arrange more group work for employees
? Arrange activities and events for employees to strengthen
their work relationships.
Employee Cultural control ? Working language in the company, employees are suitable
to speak in their mother tongue.

38
Contingence plan
Based on the action plan, in this contingency plan;
The first key assumption to secure the 15% increase in sales is the 30% Discount in
Golden hour promotion. However, if the strategy is not effective so that people are uninterested
in it, therefore, BreadTalk could consider about using the buy 2 get 1 more promotion instead.
The seconded assumption is to make sure that the brochure and billboard advertisements
are attractive to the target markets. If the strategy cannot attract customer��s attentions, BreadTalk
should consider adjusting the advertisement contents, contexts and placing.
The third assumption is to ensure the Internet application allows customers to place an
order or customise their bread and cake. However, if the Internet application is not popularised
for the mass market, BreadTalk should provide some sales promotions or discounts to encourage
the customers to use the Internet application.
12.0 Conclusion
In conclusion, to be successful in product line��s expansion in China, BreadTalk should
continue using its differentiation strategy to position its products differently among the
competitors in the market. According to the analyses in this study, the Chinese market would be
the largest market and the most promising opportunity to expand and sustain its business.
Therefore, as discussed in the marketing strategies, the 7Ps strategies could have been carefully
adopted and implemented in order to penetrate the Chinese market and increase its sales,
revenues and profits.

39
13.0 References
? Alexandre, F. & Mendes, C. (2011). Growth, Consumption and Political Stability in
China. Retrieved from http://www.nipe.eeg.uminho.pt/
? Alice, Angeleyes. (2013). Pork Floss Buns. Retrieved from
http://biteonit.com/2013/04/24/pork-floss-buns/comment-page-1/
? BreadTalk (n.d.). Our Story. Retrieved December 31st
2014 from
http://www.breadtalk.com.sg/ourstory.php
? BreadTalk (n.d.). Bakery, Business Review. Retrieved December 31st
2014 from
http://www.breadtalk.com/business-review.html
? BreadTalk Group Limited (2003). Annual report, BreadTalk Group Limited. Retrieved
November 5th
2014 from
http://breadtalk.listedcompany.com/newsroom/BreadTalk%20AR%202003.pdf
November 5th
2014 from http://breadtalk.listedcompany.com/misc/ar2012.pdf
November 5th
2014 from http://breadtalk.listedcompany.com/misc/ar2013.pdf
? BreadTalk Group Limited (2014, November 4). Financial Statement and Dividend
Announcement for the Third Quarter and Period Ended 30 September 2014. Retrieved
from
http://breadtalk.listedcompany.com/newsroom/20141104_181235_5DA_8SIF4VR9UJFF
MBQ7.1.pdf
? Bursa Franchise (n.d.). BreadTalk. Retrieved January 5th
2015 from
http://bursafranchise.com/breadtalk-indonesia.htm
? Carrie. (2005). Bread Talk-The Trendy Bakery. Retrieved from:
http://carrietse.blogspot.sg/2005/11/bread-talk-trendy-bakery.html?m=1
? CCTV News (2014, March 11). GDP growth, inflation, employment all key factors for
China?s 2014 economy. Retrieved from http://english.cntv.cn/20140311/103566.shtml
? CCTV News (2014, March 6). China finance minister downplays GDP target, stresses
employment. Retrieved from http://english.cntv.cn/20140306/103362.shtml

40
? Central Intelligence Agency (CIA) (2014). The World Factbook-GDP (PURCHASING
POWER PARITY). Retrieved from https://www.cia.gov/library/publications/the-world-
factbook/fields/2001.html
? Chen, Qi. (2011). The research report for population in China. Retrieved from
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14.0 Appendices
Appendix 1:
Appendix 2:

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BreadTalk - Expansion in Mainland China

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BreadTalk - Expansion in Mainland China