Sorensen Bakery Marketing Plan

Sørensen Bakery

A Marketing Plan Presented by

Submitted to DeVry Online

Professor Teague

BUSN319

November 30, 2013

Table of Contents

Financial Projections 3

Pricing Strategies 3

Break-even Analysis 5

References 6

Financial Projections

Pricing Strategies

After considering the prices of the materials needed and the money to pay the employees for their work, it is in Sørensen Bakery's best interest to price items according to Profit and Sales. These are two of the most important item's you need to have running a small business. If you don't have sales, then you won't have profit, and if you don't have profit you can't pay for your supplies and employees. If you can't pay your employees, then no one will work for you and if no one will work for you then you might as well not be open.

Due to the variety of treats at Sørensen Bakery, there will not be a set price for cake options. There will be set prices for the basic pastries, sandwiches, and bread, but the more advanced cake options will require the consumer to come inside and speak with an employee. Depending on the complexity of the decorations requested, the prices may vary accordingly.

In order to calculate the break-even amount of Sørensen Bakery products the price is averaged for the Danishes, small cakes, and large cakes in order of price of a typical basic cake. The price for Danishes will be about $2.00 each. The price for small cakes is averaged at about $15.00 for small basic cakes not including layers. The price for a large cake will average for about $20.00 not including layers. The fixed amounts for Sørensen Bakery will be averaged at about $60,000 per year. This includes maintenance on equipment, loan payments, employment costs, and advertising costs. In the below table Sørensen Bakery has applied a break-even amount for each item that will be sold at the single store location.

Menu Items | Menu Item Prices |

Small Treats |

Danish pastry | $2.00 |...