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    MBAX 6100

    Entrepreneurship and Small Business ManagementFeasibility Plan Parts I & II

    Auntie Carlas Frozen Bread Dough

    March 20, 2007

    Carla Ooyen & Masashi Tsuchiya

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    Product Concept

    Frozen Premium Bread Dough

    The premium quality, flavor, and smell of homemade artisan bread without the hassle ofmixing, kneading and forming the dough.Premium quality bread dough sold in the freezer section.At home, the consume thaws, rises, and bakes.Product will be made of natural or organic ingredientsManufacturing will use old dough techniques for premium flavor

    May offer unusual, specialty or holiday selections such as panettone, stollen, or GreekEaster breadMay sell in an oven-safe, recyclable container for added baking convenience

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    Market value projections in billions of $

    1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

    $10.50 $11.10 $11.40 $11.70 $12.00 $11.40 $11.20 $11.20 $11.40 $11.50

    Market value of all Bread and Roll retail sales in the World1

    y

    $145.7 billion in 2004 (2.4% growth in the past five years)Market value of all Bread and Roll retail sales in the United States2

    y $13.5 billion in 2006 (1.3% growth in the past five years)y $14.1 billion projected by 2011

    Downturn in 2004 due to low-carb diet trend, but market rebounding by 2005yRhodes International reported in 2006 that sales of Rhodes frozen white bread dough areincreasing at 8% annually. 3

    y Bread market hit bottom in May 2004, demand is stronger now. Vice president of HomAde

    Foods agrees sales of 2005 1st quarter have increased.4yThe U.S. governments release of the revised food pyramid is reminding consumers of theimportance of whole grains in their diet.5

    Market for bread and related products has been and is expected to continue to bealmost flat for the next few years.6

    (Difference in figures from other market size data is due to different source of data)

    Market Analysis Size and Growth

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    Market Analysis - Trends

    Increasing gourmet premium markety According to Fortune magazine 7, a gourmet bakery in Paris, Poilane, sells about $18 million annually, to 50

    different countries, to celebrities like Robert De Niro and Steven Spielberg, and to three star French chefAlaim Ducasse, who buys 5000 metric tons per year. Long distance distribution is done within 24 to 48 hoursby FedEx, with price ranging from $10 in Paris to $47 in the U.S.

    y Artisan bread market is increasing By 2003 sales of premium breads totaled $933 million, or 16 percent of all bread sales, and were continuing to climb 8

    Artisan and specialty bread sales have increased 23% from 1998 to 2003. 9

    Specialty breads add cachet. People are looking for more sophisticated flavors 10

    Increasing need for conveniencey Experts interviewed all agreed that consumers of natural & organic products were looking for more

    conveniencey Rhodes advertises convenience: They are both freezer-to-oven rolls that come in a re-sealable laminate bag.

    They thaw, rise and bake in 30 minutes 11

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    Increasing market for healthy foodsy Organic food is increasingly popular.

    (Bread) is not surging quite as aggressively as other organic segments, its showing respectable growth. 12

    The consensus of the experts interviewed was that the Organic market is continuing to grow.13

    y Anti-allergy food (non sugar, gluten free, etc) is increasingly popular. Gluten free, sugar free, allergy free bread will sell.14

    y Whole grain bread is increasingly popular. Whole grain bread market was slow in 2000 to 2003, however in 2004 sales increased 3.3% from previous years sales.15

    In 2005, 73 new products were introduced with specialty grains such as spelt, buckwheat, kamut, quinoa, and pearlbarley.16

    y In 2006, wellness will again be one of the industrys top influences; the relationship between health and food

    has become big business.the comeback of carbs will add fuel to the growing interest in breads17

    y Young mothers want to feed their babies better food.18

    y People are looking for natural version of everyday products.19

    Market Analysis - Trends

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    Industrial Bread and Artisan bready Industrial bread

    Mass produced bread

    Mainly white bread

    Frozen dough available

    y Artisan Bread Bakery made rather than mass production

    Premium gourmet bread

    Organic, Sugar free, Gluten free, Allergy free

    No frozen dough available

    World Bread and Roll market in 2004 20

    y Europe: $95.3 billion with artisan bread having a 60% sharey The U.S: $13.1 billion with artisan bread having a 12% sharey Asia-Pacific: $12.8 billion with artisan bread having a 30.5% sharey Japan: $5.6 billion in 2006, which is about 48% of Asia-Pacific market, with artisan bread having a 20% sharey India: $1.5 billion in 2006y China: $1.1 billion in 2006

    Market Value of the U.S. Bread, Roll and Bun dough retail sales (Excluding in-store use such asrestaurant) 21

    yRefrigerated market = $252.4 million in 2003

    y Frozen market = $443.0 Million in 2003

    Market Analysis Market Segmentation

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    Demographic 1: Bread consumer consumption of bread in 200322

    Penetration rate is more than 95% across all following segmentsy Number of loaves consumed weekly 45% of buyers purchase 1 loaf per week

    31% of buyers purchase 2 loaves per week

    12% of buyers purchase 3 loaves per week

    y Percentage of users by age group: 21% are 35 to 44

    19% are 45 to 54

    19% are 25 to 34

    13% are 18 to 24

    12% are 55 to 64

    y Bread consumers by gender: 52% of buyers are Female

    48% of buyers are Male

    y Percentage of users by race/ethnic origin: 72% are White/non Hispanic

    12% are Black

    12% are Hispanic

    4% are Asian

    y Bread consumption by region: 36% live in the South

    23% live in the Midwest

    22% live in the West

    19% live in the Northeast

    Market Analysis Demographics

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    Demographics 2: White bread and Whole Grain bread 23

    y White bread buyers tend to be:

    Spanish, Hispanic

    Young 18 to 34 years old

    High school graduates

    With children

    Live in a rented property

    y Whole grain bread buyers tend to be: 55 years or older

    College or Graduate school graduates

    Retired

    No children Live in own home

    Market Analysis Demographics

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    Little growth in the bread market: currently between -3% to 3% per year

    Raw material supplyy Weather issues such as a drought could cause a raw ingredient shortage.y Possible insufficient ingredient supply. The demand for organic products is increasing faster than the supply

    of raw ingredients. 24

    Economic downturns reduce the demand for premium products.

    Market Analysis Threats

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    Market Analysis - Market Structure

    Retail route (major route)y Manufacturer (f inished bread or dough)

    y Wholesalery Retailer (sometimes bake from dough)y Consumer

    In-store usey Manufacturer (f inished bread or dough)y Wholesalery Restaurant, Caf, Sandwich shop, etc.(sometimes bake from dough)y Consumer

    Own-production (Bakery)y Manufacturer = Retailer (all process by retailer)y Consumer

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    Opportunityy Market trend for premium bread needs

    y Huge world market for bread export opportunity Higher share of artisan bread in Europe and Japan (than in the US)

    Ocean freight = about $0.30/loaf25

    Nichesy No premium frozen bread dough in current bread markety Jason Vincent, Category Manager - Frozen Foods for Wild Oats, feels that there is a need for natural/organic

    frozen bread dough and is surprised that no one has yet entered that niche. The long shelf life is a keyattractive characteristic. He feels the market is probably 2 to 3 units per week per store.

    y Adam Schneider, natural food broker, indicated that he could sell the hell out of a par-baked frozen bread

    product.y Increasing market segment for premium bread.

    Internet e-commerce

    Other form of direct sales to consumers

    Export opportunity

    Market Analysis Opportunities & Niches

    Market Analysis New Distribution Channels

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    Market Analysis - Conclusion

    Feasible, there is a niche!

    No direct competitors no premium frozen bread dough manufactures exist currently.

    Consumer interest is favorable - Increasing demand for healthy foods such as organic.Consumers are looking for natural substitutes for everyday products.

    Growth opportunity - The U.S. share for artisan bread is lower than most other developedcountries. As people get more health conscious and taste sensitive, the market will grow.

    Export opportunity - Europe accounts for about 64% of world bread market. Japan accountsfor about 48% of Asia-Pacific bread market. Both countries with higher artisan bread sharethan U.S.

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    Competitive Analysis Industry Structure

    Carrying Capacityy The bread industry is fairly slow growth (see Market Analysis section).y Frozen food section of grocery stores is limited in size. Securing space for a new product meansthat an existing product looses space (or is no longer carried).y Must have a niche product that fills a customer need.y Frozen premium bread dough could gain space by fulfilling an unmet need.26

    Degree of Stabilityy Fairly stable demand for bread from year to year. A staple of most peoples diets.y Seasonal variations in demand. Higher demand near holidays, such as

    Thanksgiving, Christmas, Easter and Mothers Day.27

    y Diet trends, such as the Atkins low carb craze in the early 2000s, can havea serious negative effect.

    Complexityy Grocery industry generally requires working with suppliers, distributors, brokers, and retailers.y For local market entry, it is sometimes possible to avoid working with distributors or brokers.28

    y Selling in food service chain to restaurants would require same chain as grocery industry unlesssales market is only local.

    y Obtaining necessary health department and FDA approval can be complicated.Industry Evolution

    y Bread industry as a whole is mature.y Organic food segment is in the later stages of the high growth phase. Retailers are starting tosee me-too products rather than new innovations.29

    y Organic growth opportunities are tied to convenience and replication of traditional (not-so-healthy) products.

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    Competitive Analysis Barriers to Entry

    Economies of Scaley Large manufacturers

    Receive discounts for buying ingredients in large volume. Power to affect supplier costs. Marketing budgets are larger. Profits of large volume products can help support marketing and sales oflower volume or introductory products.

    y Entry level companies Lack of volume equates to higher ingredient costs. Marketing costs cannot be spread over product line.

    Customer Loyaltyy Because there is currently no retail frozen premium bread dough, customers would currently

    have no brand to be loyal to. First entry advantage might deter customers from switching brands ifa new competitor entered the market.y If a known baked bread brand, such as Rudis, were to enter the market, customers would bemore likely to buy known over unknown.y Loyalty to baked breads brand could deter customers from switching to frozen dough option.

    Proprietaryy Recipes competitors may not be able to replicate that customer-winning flavor.

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    Competitive Analysis Barriers to Entry

    Capital Requirementsy Building a manufacturing facility from scratch is costly. For example, a 18x24x12 freezer spacewould cost about $90K for parts and installation.30

    y Copackaging agreements with licensed manufacturers are a means of avoiding the necessity tobuild a factory.y Unused capacity can be rented from manufacturers or restaurateurs (approximately $10 to$14/hour).31 This is a low capital way for a small company to test the business concept withoutmajor investment.y Cold storage facilities, such as Atlas Cold Storage, offer storage and inventory management,

    thus reducing the need for on-site freezer space.y Cold storage freight services alleviate need for company purchase of refrigerated truck fleet.

    Access to distribution channelsy Must convince retailers and distributors to carry your product. They may not be interested indealing with small manufacturers.y Do not have direct access to customer if using standard distribution channels.

    Government Regulationy Must follow state and local Department of Health commercial food safety requirements (cant

    start a food business in your garage).y Must register with the FDA and follow food labeling guidelines.32

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    Competitive Analysis Degree of Rivalry

    Price point issuesy Variety of entrants in bread market means that price comparison is inevitable.y Premium, natural, and organic breads generally sell in the range of $3-$5 for a 1 pound loaf ofbread.y If frozen bread dough is priced significantly above baked options, consumers will substitute.

    Rivalry is somewhat friendly. Competitors provide coupons and promotions toencourage consumers to purchase their produce, but price wars are not an issue.Big manufacturers, such as Pillsbury or Wonder, that have the power to squishcompetition wouldnt be interested in a small niche market like frozen premium bread

    dough.

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    Competitive Analysis Major Competitors

    There are no direct competitors in the premium frozen bread dough category, so we focus

    on indirect competitors. Key indirect competitors include:

    Frozen traditional bread doughy Rhodes International - frozen loaves in white or wheat. The white bread compares to atraditional sandwich loaf little flavor, soft texture.

    Frozen pre-baked traditionaly Pillsbury Oven Baked Crusty French Mini Loaves a household brand name producing anextremely average convenience bread product.

    Frozen pre-baked natural or organicyAlexia - frozen baked artisan bread rolls. Known for producing a quality product.

    Fresh natural or organicy Rudis Organic Bakery produces a wide array of certified organic breads, primarily sandwichstyle.

    Grocery bakeriesy Grocery bakeries produce a large variety of fresh baked breads of varying qualities. Natural food

    grocers generally produce a higher quality product.

    See the Competition Matrix in Appendix 2 for a detailed comparison of competitors.

    Possible Future Competitors: Current baked bread manufacturers could easily produce a frozen dough product. Its really just amatter of making slight modifications to production and packaging. Food service companies, such as Bridgford, Ralcorp Frozen Bakery Products, and Richs, produce

    frozen dough or par-baked bread and could fairly easily offer a retail product.

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    Competitive Analysis - Competitor Self Perception

    Rhodes Bake-N-Serv 33

    Enjoy hot, homemade quality white bread fresh fromyour own oven. Available in three or five loaves perpackage. Just thaw, let rise, & bake!Family owned company committed to quality

    Rudis Organic Bakery 34

    Our Mission is to be the leading manufacturer and

    supplier of branded certified organic breads. We arededicated to the highest standards of quality, taste,packaging and communications. We are committed to thefamilies we serve and look to bring warmth, sincerity, joyand a higher quality of life to our people, our customersand the world.

    Alexia

    35

    Alexia Foods, Inc. produces a full line of 100% allnatural, trans fat free, premium frozen products for theoven, microwave or fryer that deliver outstanding gourmetflavor from freezer to table in just minutes.Convenient and versatile, Alexia Artisan Breads bake upbeautifully and complement any dish.

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    Competitive Analysis Basis of Competition

    Convenience vs. Qualityy Shelf bread is part of a weekly shopping trip. Sacrifice freshness and quality for a product thatwill easily last a week.y Frozen (pre or par baked) bread products offer the convenience of fresh baked bread withoutan immediate trip to the store. Sacrifice immediate use, and sometimes flavor, for a product with alonger life.y Fresh bakery products come in 2 categories:

    Cheap and not so tasty. Good if you are already making a quick trip to the store. Higher quality products may have a very good artisan flavor, but freshness deteriorates quickly and an on-demand trip to the store is required.

    y Frozen bread dough requires some planning, but allows one to make fresh bread without thehassle of mixing, kneading, or forming, and no on-demand store trip is required.

    Premium frozen bread dough offers high quality ingredients and flavor and medium convenience.

    y The level of convenience is tied closely to ones proximity to a store (rural populations).

    Reputation For big industry players, like Rudis or Rhodes, their reputation is a keycompetitive factor.

    y Consumers will try product based on name alone.y New ventures do not have brand recognition

    Specialty Offering specialty products, such as gluten free or vegetarian, is a keycompetitive factor for many small bread makers.

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    Competitive Analysis Control over Prices, Costs, & Channels

    Pricesy Consumers know what bread costs. Limited ability to charge a premium price.y Consumers are highly unlikely to buy bread that cost more than $5 a loaf, based on what isalready competitively available.

    CostsyA start-up is going to have a difficult time getting price breaks from suppliers. With the relativeshortage of natural and organic ingredients, suppliers have a fair amount of power.y Conversely, some market factors have made standard ingredients more expensive, whichmeans there is less marginal cost to going organic. For example, due to natural disasters,

    regular sugar is currently only slightly cheaper than organic sugar (40/lb. vs. 50/lb.).36

    Channels of Distributiony Large grocery chains require distributor relationships.y Introduction in local stores can provide a means for bypassing the distributor.y Internet sales could be a creative means of connecting directly to retail customers.

    Competitive Analysis Market Domination

    No direct competitorMany small businesses in the natural and organic bread marketIn the Frozen Bread/Rolls/Pastry Dough category, Rhodes International has 40% marketshare, Homade Foods Inc. has 44% and General Mills (including Pillsbury) has 10%.37

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    Competitive Analysis Conclusion

    Bread manufacturers are not currently addressing the market niche for premium frozenbread dough.Existing indirect competitors could enter this niche market fairly easily if they wanted.Future competitors, such as food service companies, could also enter this niche.Market size is small so there is little incentive for large companies to enter the market.

    There is a market opportunity for premium frozen bread dough, and currently no directcompetition, but there is no barrier for future entry.

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    Endnotes

    1 Global - Bread and Rolls, Datamonitor industry market research, October 31, 2005.2 Japan Bread and Rolls, Datamonitor industry market research, December 1, 2006.3

    D. Gail Fleenor, Rising Sales: The Comfort and Aroma of Home-Baked Bread, Rolls, and Biscuits are Available From aWide Array of Tasty, Convenient Items in the Freezer Aisle, Frozen Food Age, December 2006. Vol.55, p18.4 Renee M Covino, Bread is Back: Oh What a Difference a Year--and the Return to Balanced Eating--Makes on the

    Frozen Bread/Dough Category, Frozen Food Age, April 2005, Vol.53, p28.5 Baby Boomers and the U.S. Food and Beverage Industry, December 2005, p95.6 Market Trends: Fresh Bread and Related Products, August 2004, p2, p97 Tom Sancton, Fortune magazine, Jun 22, 2007, Vol.115, p1578 Bread, Cake, and related products Encyclopedia of American Industries. Online Edition, Thomson Gale, 20069 Market Trends: Fresh Bread and Related Products, August 2004, p710 Market Trends: Food Flavors and Ingredients Outlook, February 2006, p114

    11 Baby Boomers and the U.S. Food and Beverage Industry, December 2005, p8312 See Call Reports - Lind Iggi, Jason Vincent, and Scott Roy13 See Call Report - Tom, Vitamin Cottage14 The U.S. Market for Whole Grain and High Fiber Foods, April 200515 Market Trends: Food Flavors and Ingredients Outlook, February 2006, p11716 Market Trends: Food Flavors and Ingredients Outlook, February 2006, p2117 See Call Report - Adam Schneider18 See Call Reports - Adam Schneider, Jason Vincent19 Renee M Covino, Bread and Dough for a Crisp Fall: Get Customers Ready for the Autumn Baking Season with More

    Frozen Bread, Dough and Rolls--Now Highlighted with Extra Health and Convenience, Frozen Food Age, June2006, Vol.54, p2420 Market Trends: Fresh Bread and Related Products, August 2004, p61.

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    Endnotes

    21 Simmons Market Research Bureau, Study of Media and Markets Fall 200422 Global Bread and Rolls, Datamonitor industry market research, October 31,

    200523 Market Trends: Convenience Home Baking Products, February 2004, pp84-86.24 See Call Report - Jason Vincent25 See Call Report - Mr. Sato26 See Call Report - Jason Vincent27 Frozen Dough Handbook, Volume 61, p10, Rhodes International Inc.28 See Call Report Scott Roy29 See Call Report - Jason Vincent

    30 See Call Report Scott Roy31 See Call Report Lind Iggi32 http://www.cfsan.fda.gov/list.html33 http://www.rhodesbread.com/34 http://www.rudisbakery.com/about_us/mission.jsp35 http://www.alexiafoods.com/index.html36 See Call Report Scott Roy37 Market Trends: Convenience Home Baking Products, p51, February 2004.

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    MBAX 6100

    Entrepreneurship and Small Business ManagementFeasibility Plan Part III

    Auntie Carlas Frozen Bread Dough

    April 24, 2007

    Carla Ooyen & Masashi Tsuchiya

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    Size and Growth

    Market size of all Bread and Roll in the United States is more than $10 billion. Low futuregrowth rate. Details as follows;

    Increasing gourmet premium market

    Artisan bread market is increasing By 2003 sales of premium breads in the United States are about 16 percent of all bread

    sales, and continue to increase. 1

    Artisan and specialty bread sales have increased 23% from 1998 to 2003. 2 Specialty breads add cachet People are looking for more sophisticated flavors 3

    Increasing market for healthy foods

    Organic food is increasingly popular. Anti-allergy food (non sugar, gluten free, etc) is increasingly popular. Whole grain bread is increasingly popular. Young mothers want to feed their babies better food. 4 People are looking for natural version of everyday products. 5

    Market Analysis Summary Market Trends

    Market value projections in billions of $(source: Market Trend, Fresh Bread and related products, August 2004, p2 and 9)

    1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

    $10.50 $11.10 $11.40 $11.70 $12.00 $11.40 $11.20 $11.20 $11.40 $11.50

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    Segmentation

    Industrial Bread (mass produced, mainly white bread)

    Artisan Bread (bakery made, premium gourmet, organic, natural, etc) Bread penetration rate is more than 95% 6

    Typical whole grain bread consumer: 55 years or older, College graduate or highereducation, retired, no children, and homeowner

    Market Threats

    Little growth in bread market.

    Raw material supply weather issues or surge in organic ingredient demand could causesupply shortage

    Economic downturns reduces the demand for premium products. Market structure

    Retail route : majority of bread products Manufacture Wholesaler Retailer Consumer

    In store use : Manufacture Wholesaler Restaurant/Cafe Consumer

    Own Production : Bakery Manufacture/Retailer Consumer

    Market Analysis Summary

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    Market Analysis Summary Opportunityand Niches

    Opportunity

    Increasing market trend for premium artisan bread

    Huge world market (opportunity for export) Niches

    No premium frozen bread dough in current bread market. New Distribution channel

    Internet e-commerce Other form of direct sales to consumers Export opportunity

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    Competitive Analysis Summary

    Industry Structurey Carrying Capacity - limited space in the frozen food section, must find a nichey Degree of Stability - Fairly stable year-to-year demand. Diet trends can have a serious negativeeffectyComplexity - have to work with suppliers, distributors, brokers, and retailers.yIndustry Evolution

    Organic food segment is in the later stages of the high growth phase. Retailers are starting to see me-too products rather than new innovations.7

    Organic growth opportunities are tied to convenience and replication of traditional products.

    Barriers to EntryyEconomies of Scale large manufacturers can get volume discountsyCustomer loyalty to existing brandsyCapital Requirements must secure necessary product space & equipmentyDistribution Access - Must convince retailers and distributors to carry your productyGovernment Regulation must meet State Department of Health & FDA requirements

    Degree of RivalryyPrice Point must be competitive with other bread optionsyPower big manufacturers have power to control market if desired

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    Competitive Analysis Summary Major Competitors

    Key competitors in the bread industry include:

    Frozen traditional bread doughy Rhodes International - frozen loaves in white or wheat. The white bread compares to atraditional sandwich loaf little flavor, soft texture.

    Frozen pre-baked traditionaly Pillsbury Oven Baked Crusty French Mini Loaves a household brand name producing anextremely average convenience bread product.

    Frozen pre-baked natural or organicyAlexia - frozen baked artisan bread rolls. Known for producing a quality product.

    Fresh natural or organicy Rudis Organic Bakery produces a wide array of certified organic breads, primarily sandwichstyle.

    Grocery bakeriesy Grocery bakeries produce a large variety of fresh baked breads of varying qualities. Natural foodgrocers generally produce a higher quality product.

    See the Competition Matrix in Appendix 3 for a detailed comparison of competitors.

    Possible Future Competitors: Current baked bread manufacturers could easily produce a frozen dough product. Its really just amatter of making slight modifications to production and packaging. Food service companies, such as Bridgford, Ralcorp Frozen Bakery Products, and Richs, producefrozen dough or par-baked bread and could fairly easily offer a retail product.

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    Competitive Analysis Summary

    Basis of Competitiony Convenience vs. Quality - Shelf bread with long life vs. Fresh bakery product with better taste but

    shorter lifeyReputation - For big industry players, like Rudis or Rhodes, their reputation is a key competitivefactor. New ventures do not have brand recognitionySpecialty Offering specialty products, such as gluten free or vegetarian, is a key competitivefactor for many small bread makers.

    Control over Prices, Costs, & Channelsy Consumers know what bread costs. Limited ability to charge a premium price.yA start-up is going to have a difficult time getting price breaks from suppliers. With the relativeshortage of natural and organic ingredients, suppliers have a fair amount of power.y Large grocery chains require distributor relationships, but there may be creative alternatives tothe traditional channel, such as local stores or internet sales.

    Market DominationyNo premium frozen bread dough in U.S. retail marketyMany small businesses in the natural and organic bread market

    ConclusionsyBread manufacturers are not currently addressing the market niche for premiumfrozen bread dough.yExisting indirect competitors could enter this niche market fairly easily if they wanted.yFuture competitors, such as food service companies, could also enter this niche.yMarket size is small so there is little incentive for large companies to enter themarket.

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    Opportunity for Frozen Bread DoughyMarket trend for premium bread needsyHuge world market for bread export opportunity. Higher share of artisan bread in Europe andJapan (than in the US)8

    yNo premium frozen bread dough in current retail bread market.yJason Vincent, Category Manager - Frozen Foods for Wild Oats, feels that there is a need fornatural/organic frozen bread dough and is surprised that no one has yet entered that niche. Thelong shelf life is a key attractive characteristic. He feels the market is probably 2 to 3 units perweek per store. 9

    yAdam Schneider, natural food broker, indicated that he could sell the hell out of a par-bakedfrozen bread product. 10

    yIn 2004, the natural foods bread and baked goods category grew 14.1%. 11

    Problem: Not everyone has the joy of experiencing fresh baked breadyNo time to make nutritious, great tasting bread.yMay not live near a bakery where premium, natural, or organic bread is made.yNot everyone has the skill or desire to make good bread from scratch

    Venture Analysis Opportunityand Need

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    Compelling Need

    Physical we all need food to survive, and bread is a major part of the American diet.

    Physiological Faced with increasing obesity and health concerns, Americans have a needfor healthier products

    Shoppers want to see high levels of specific nutrients and specific health claims on Nutrition Factslabels and whole grain is one of the most important claims. 12 [reaffirmed by customer survey data]

    Emotional Want the satisfaction of feeding a nutritious product to loved ones

    Fresh baked bread makes people feel warm and comfortable

    Relieve the stress of needing to find time to make the product oneself To relieve the stress of hectic lifestyle, want convenient, fast and fresh products: As lifestyles change

    and people having lesser time for baking, refrigerated and frozen categories seem to be more

    convenient to bakers rather than preparing from mixes. 13

    Social Consumers want to join peers in showing increased concern for sustainable practices. They want

    products that show their Awareness of earth-friendly farming practices and desire to recycle andconserve energy 14

    Want a fresh, homemade product to serve friends at dinner parties.15

    Venture Analysis Opportunityand Need

    16

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    Product Description Performance

    Product will rise and bake dependably to produce a consistent taste and texture. Ingredients will be natural or organic. Nutritious whole grain options will be offered. No

    unpronounceable ingredients.

    Dough is made using old-world multi-day build processes to provide optimum flavor complexity.

    Packaging will protect product from freezer burn to guarantee taste and texture once baked.

    Loaves will be sold in packages of 2-1 lb. loaves or 3-10 oz. loaves.

    Cost Target retail price per package is $7.99 [for 2-1lb or 3-10 oz.].

    Promotional discounts or coupons would be available (generally required by distributors and grocers). Discount price (such as 90% retail) could be offered for direct sales (such as internet).

    Availability Carried by natural grocers and mainstream grocers, specialty shops

    On-line purchases available for local customers or those willing to pay for refrigerated/dry-ice freight.

    Consumers required to make cash purchases, but Company will have to maintain credit terms withdistributors or other commercial purchasers.

    Social

    Use product performance superiority to build a name that people can trust. Fun brand that consumers of all ages can enjoy

    Customer as marketer, spreading the word to family & friends

    Service Money-back product quality guarantee

    Possible organic certification

    Comprehensive, easy-to-use website with long list of categorized FAQs

    Specialized instructions to meet variety of customer cooking styles

    Customers feedback actively solicited and acted upon.

    Venture Analysis - Product

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    Product Range (based on consumer survey results)

    Flavors

    Stage 1: Whole wheat, multigrain, sourdough

    Stage 2: Rye, bagels, specialty such as cinnamon raisin

    Sizes Stage 1: Package of 2-1 lb. loaves

    Stage 2: Package of 3-10 oz. loaves

    Shapes Traditional loaf shape

    Consumer option to cook without pan for an artisanal, free-form shape.

    Stage 1: First stage of introduction Stage 2: Product expansion phase

    Meeting Customer Needs

    Product targets need for healthier, convenient products. [See Opportunity/Need and UniqueBenefits sections for more details]

    Production & Delivery

    Rented bakery & warehouse space, used bakery equipment (if not pre-equipped space) Contract refrigerated freight services for transportation. Internet sales will require overnight shipping w/special packaging (customer pays shipping

    premium)

    Product Design Refinement

    Investigation of freezing techniques, such as flash freezing, to optimize stability of productquality.

    Investigation of partial proofing before freezing to speed thaw times.

    Venture Analysis - Product

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    General Survey

    Mixed response to idea: Many like the idea and thought it seemed simple: Seems just like laying out meat.

    Others hated it: I pay people to bake for me

    Concerns - The time involved and the possibility that the bread wont taste good in the end Varieties

    Whole wheat was clearly the top choice.

    Multigrain & Sourdough were the secondary selections

    Limited interest in other varieties such as rye, bagels, white, pita, and cinnamon raisin

    Price Standard Loaf: $2-6

    Small Loaf: $1-3

    Whats Important Superior flavor is very important Natural/Organic, Whole grain, & Freshness are fairly important Price & Shelf Life are only somewhat important

    Most bread is purchased in the supermarket bread aisle

    Venture Analysis Customer Survey Summary & Conclusions

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    Prototype samples survey Liked the appearance, taste of the loaf

    One respondent felt more likely to purchase after trying. Felt that a bigger loaf was probably better given thaw/proof time.

    Including pan added to convenience

    Concerned about the bread taking a long time to thaw and rise Would purchase the bread for special occasions, like dinner parties.

    Good for people who dont know how to bake.

    Suggestions Consider making bread rings of sectioned bread to speed up the proofing.

    Really soft doughs proof much more quickly than dense wheat and rye doughs. To attract attention, I might put seeds on and in some of your breads

    Conclusions There is consumer interest in the product. Need to investigate methods that might allow much quicker thaw/proof times perhaps

    partial proofing.

    One surveyor left the bread in backpack overnight, refroze, and then tried again. Flavor wasstill good. This suggests that a partial rise might be an option. Really great directions and website are needed to meet different customers needs. Some

    want detailed directions, some go by feel, etc.

    Venture Analysis Customer Survey Summary & Conclusions

    It tasted like the

    best store-bought

    bread or bakery

    bread that I have

    ever had. My

    husband would like

    to put in an order

    already!

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    Targeted Consumer

    Demographics Cook of the family, generally women

    Parents in their late 20s to late 30s

    College educated professionals

    Baby Boomers (Early 40s to early 60s)

    High income households ($50K+)

    Semi-rural to rural consumers where bakeries are less accessible

    Psychographics Believe in a healthy lifestyle which is supported by nutritious foods Believe in the benefits of regularly purchasing natural/organic products because they are good for

    them and good for the environment

    Want to feed their family (especially children) a quality product

    Want to replace traditional products with healthy alternatives

    Social status Grew up in a lower to middle income family (more likely to have experienced fresh baked bread)

    Middle class values with an upper income

    Family is important, but the rest of life gets in the way

    Venture Analysis Targeted ConsumerMarket

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    Distribution

    Retail Route: Manufacturer Distributor Grocer Consumer Food Service: Manufacturer Distributor Food service/Restaurant as Consumer Internet or Local Sales: Manufacturer Consumer

    Target markets opinions on current offerings17:

    Generally satisfied Decent, but not always fresh or tasty doesnt last longartisan breads are hard to come

    by

    Theres a lot of choice out there; but not much when it comes to baking at home Consumers appear willing to try the product as long as performance concerns can be

    mitigated.

    Buying decisions are made by the family grocery shopper. Survey results indicatethat: Superior flavor is very important Natural/Organic, Whole grain, & Freshness are fairly important Price & Shelf life are only somewhat important

    Venture Analysis Targeted ConsumerMarket

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    Major Benefits

    Health Nutrition - natural/organic ingredients, whole grains, lack of processed ingredients are better for the

    body

    Taste like going to a French bakery, not the day-old section

    Emotional Love serving quality ingredients to family and friends

    Achievement for those who havent had success making own bread from scratch

    Convenience dont have to make a mess mixing or forming. No flour to clean off the counter. No run

    to the store for bread. Comfort can enjoy warm fresh bread straight from the oven

    Memories - smell of fresh bread baking takes you back to Grandmas kitchen

    Social Sustainability organic ingredients are good for the environment, as is recyclable pans and packaging

    Personal Relationships make friends think you slaved all day and are an amazing baker!

    Service Helping hand website and customer support line are like cooking with a professional chef in the

    kitchen. Youll always have answers to problems and questions.

    Venture Analysis Unique Benefits

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    Uniqueness of Benefits

    Rhodes frozen bread dough can also provide convenience, achievement, comfort, &memories benefits

    Organic bread makers, such as Rudis, provide health, convenience, and sustainabilitybenefits

    Only Auntie Carlas can provide all of these benefits through its quality manufacturing,packaging, and excellent customer service!

    Educating the Market

    Teaching them that bread can be in the frozen aisle In-store demonstrations

    Website information

    Sampling product to prove that its dependable, easy, and tasty

    Venture Analysis Unique Benefits

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    Venture Analysis Sustainable Competitive Advantage

    Ventures resources Financial

    Low capital requirement to start and run the venture Founders have personal savings to commit to starting venture

    Founders can take personal loans and use credit cards to provide additional financing

    Spouses to keep food (in addition to bread) on the table

    Physical assets Low requirement for plant and equipment

    No incoming ownership of physical assets

    Rent kitchen space to avoid initial capital requirements

    Recipe Ability to produce nutritious & tasty product Location (Boulder)

    Health sensitive consumers who would buy healthy food

    Healthy image of the town

    Easy access to local Natural Food industry

    New idea New frozen dough product that is easy to bake

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    Venture Analysis Sustainable Competitive Advantage

    Ventures capabilities

    Knowledge Management Two CU Leeds MBAs! Product expertise and production experience - Carla

    Export experience Masashi

    Contacts CU Alumni network, Deming Center, entrepreneurship professors

    Access to the knowledge of Boulders natural food experts

    Website Family & Friends to help build a full service website that will help to draw & keep customers

    Barriers to entry that venture faces

    Regulatory Must meet state board of health regulations. This is easy if renting shared/incubator kitchen space that

    is already certified.

    Proprietary Bread is not high technology, so there are no trade copyrights or patents to battle.

    Customer Loyalty Loyalty to baked bread brands could deter customers from switching to frozen dough option. Getting customers to look in the frozen section for bread

    Distribution Have to convince grocers to find room in limited freezer space to carry our product.

    Have to convince distributors to carry product line.

    Competitor Response If a known baked bread brand, such as Rudis, were to enter the market, customers would be

    more likely to buy known over unknown.

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    Venture Analysis Sustainable Competitive Advantage

    Barriers venture can create

    New distribution and retail system If we can create our own private distribution or/and retail channel which other manufactures can not

    imitate, this would function as a barrier.

    Customer brand loyalty Because there is currently no retail frozen premium bread dough, customers would currently have no

    brand to be loyal to. First entry advantage might deter customers from switching brands if a newcompetitor entered the market.

    Create a taste that consumers cannot forget

    Build consumer trust in the quality of ingredients

    Build complete product line one stop purchase of all frozen baked products Create website that consumers like to visit, builds camaraderie, and answers all of their questions.

    Trade secrets Create unique recipes and baking processes competitors may not be able to replicate that customer-

    winning flavor.

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    Venture Analysis Risks

    Marketing Will the consumers buy?

    With current financial projection, break-even sale volume is about 250-1 lb. loaves per day. Based onan initial sales estimate of 3 loaves/variety/store per week [based on Jason Vincent interview] andassuming 4 initial product varieties, product would have to be in 146 stores to reach break evenvolume.

    If this break-even volume cannot be obtained before savings are depleted, the venture will fail.

    Another low-carb diet craze could kill the venture before it gets off the ground.

    Price structure Every dollar change in sale price has a huge impact on revenue. $1 increase in retail price reduces

    break-even sales to 175 units per day. On the other hand, $1 decrease in sale price increases break-

    even volume to 450 units per day. By decreasing retailers or distributors mark up by 5% (from 35% to 30%), it will decrease break even

    sales unit by 15. On the other hand, increasing 5% will increase the break even number by 20 units.

    Distribution and Grocer acceptance Even with creative marketing strategies, venture is unlikely to achieve necessary volumes if

    acceptance in traditional grocery channel cannot be quickly obtained.

    Finance Assuming founders can finance $100,000, the venture will not last more than three years

    without achieving the break even sales volume. Sales must grow above break even numberwithin three years or the venture needs to be re-financed.

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    Venture Analysis Risks

    Competitors If existing well established bakery such as Rudis entered the market, consumers may prefer

    Rudis because of brand familiarity. The venture needs time to create its good brand imagebefore facing competition.

    Economy Bread is a commodity product, thus less economic impact on total consumption of bread.

    However...

    Consumers may shift to low priced bread in sluggish market. High quality, high priced bread is price sensitive.

    The venture cannot reduce price and stay profitable.

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    Venture Analysis Financial Projections

    Operating Income Yr 1 Yr 2 Yr 3 Assumptions

    unit of sale per day 50 150 300 Retail price $4.00

    Price per unit $2.28 $2.28 $2.28 Retail's mark up 35%Distributor's mark up 30%

    Revenue $34,188 $102,564 $205,128 Whole sale price/loaf $2.28

    COGS $15,000 $45,000 $90,000 Days per year 300

    Gross Profit $19,188 $57,564 $115,128 COGS/Loaf $1.00

    % gross profit 56.1% 56.1% 56.1%

    Sales & expenses (per month)

    Operating expenses Promotions $400

    Sales & Marketing $13,800 $13,800 $13,800 Transport/communication $600

    General Administration $81,000 $81,000 $81,000 Other expenses $150

    Depreciation $1,600 $1,600 $1,600

    TTL Operating Expenses $96,400 $96,400 $96,400TTL

    Sales and Marketing $1,150 flat for 3 years

    Operating Income -$77,212 -$38,836 $18,728 General Administration (per month) sq feet price

    fixed cost Lease/month $750 750 $1.00

    TTL Fixed cost $96,400 $96,400 $96,400 fixed cost HR $6,000 3 $2,000

    TTL Variable cost $15,000 $45,000 $90,000 TTL General Admin $6,750

    Break-even Revenue $171,759 $171,759 $171,759

    Investment

    Dough mixer 60qrts $6,000

    Freezer 8X10' Walk-in $10,000

    Sink counter and other equipment $2,000TTL Capex $18,000 0 0

    Working Capital $2,342 $7,025 $14,050 25 days

    Other non-recurring investment $1,000 0 0

    TTL Investment $21,342 $7,025 $14,050

    SeeAppendix 1 for Financial ProjectionAssumptions

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    Venture Analysis - Conclusion

    Compelling needs Physical need for food Physiological need for better ingredients Emotional need for increased convenience, connection to loved ones Social need for special occasions

    Proof of the target markets interest Survey suggests that (potential) consumers are interested.

    Benefits Frozen bread dough has unique benefit of easy baking at home environment.

    Sustainable advantages Almost no barrier to entry How to create barrier is the key question. Opportunity to expand.

    Profitability and Investment Relatively low investment required High gross margin Final profitability depends on the sales volume Break even sales volume is about 250 loaves per day, can we achieve it?

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    Venture Analysis - Recommendations

    Recommended further research Possible barrier to entry that can be created

    Distribution channel Retail channel

    Recipe

    Regulation FDA Organic requirement

    International Organic requirement

    Opportunity of sales Possible sales volume

    Opportunity for expansion Export market research

    Other (similar) products such as cookies, cakes, pet treats, religious needs (Jewish people bakereligious bread every week)

    Sale to business customers such as restaurant, cafe, or even local bakery

    Prepare prototype Prepare a unforgettably delicious organic bread dough. Investigate freezing/thaw procedures that are more convenient.

    Prepare business plan Prepare a business plan Take MBAX 6170

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    1 Bread, Cake, and Related Products, Encyclopedia of American Industries. On line Edition, Thomson Gale, 2006.2 Market Trends: Fresh Bread and Related Products, August 2004, p7.

    3 Market Trends: Food Flavors and Ingredients Outlook, February 2006, p102.4 See Call Report- Adam Schneider5 See Call Report- Adam Schneider6 Market Trend, Fresh Bread and related products, August 2004, p67.7 See Call Report - Jason Vincent8 Global Bread and Rolls, Datamonitor industry market research, October 31, 2005.9 See Call Report - Jason Vincent10 See Call Report- Adam Schneider

    11 The U.S. Market for Whole Grain and High Fiber Foods, April 2005, p66.12 ibid, p68.13 Market Trends: Convenience Home Baking Products, February 2004, p58.14 Baby Boomers and the U.S. Food and Beverage Industry, December 2005, p89.15 See customer survey results16 Market Trends: Food Flavors and Ingredients Outlook, February 2006, p72.17 See customer survey results18 Panera Bread Corporate web site, www.panerabread.com19 National Average of Baking Industry, www.BizStats.com20 Great Harvest Corporate web site, www.greatharvest.com

    Endnotes

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    Appendix 1: Financial Projection Assumptions.. 29

    Appendix 2: Customer Survey.. 33

    Appendix 3: Competition Matrix.36

    Appendix 4: Call Reports37

    Appendix 5: Feasibility Plan Parts I & II70

    Appendix Contents

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    Appendix 1 Financial Projection Assumptions

    Revenue Number of units sold per day (based on what the venture needs to sell)

    Year 1 = 50 units per day Year 2 = 150 units per day

    Year 3 = 300 units per day

    Price $4.00/unit (1 lb loaf) at retail

    Other baked premium organic bread = about $4.00/lb

    Retailers mark up = 35% (see Call Report : Scott Creevy)

    Distributor's mark up = 30% (see Call Report : Scott Roy)

    Assumed wholesale price = $2.28/unit (1 lb loaf) COGS - Ingredient costs for basic 1 lb. loaf of organic white or wheat bread:

    9 oz. Organic flour @ $0.63 to $0.80/lb = $0.47 - $0.60/loaf (probably cheaper at whole sale) Bobs Red Mill (www.bobsredmill.com) 25lb at $15.75

    Shop Natural (Guistos Flour) 50lb at $40.00

    6 oz. Water @ almost nothing = $0.01 0.25 oz. Sea Salt @ $44/lb < $0.01

    0.1 oz. Yeast @ $2.60/lb = $0.02

    Total material cost = $0.51 to $0.64/loaf Total cost (labor included) $1.00/loaf (1 lb)

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    Appendix 1 Financial Projection Assumptions

    Operating expenses Sales and Marketing

    Sales promotion $400/month (10 free samples per day + $100 printed promotions per month) Transportation $300/month (1800 miles per month / 15 miles per gallon / $2.5/gallon fuel cost)

    Communications $300/month (2 land lines X $50 + 2 mobile phones X $50 + Internet/web $100)

    Other expenses $150/month

    Total $1,150/month (fixed cost at constant for all three years)

    General & Administration Bakery space $750/month ( 750 F kitchen space at $1 Rent / F / month)

    Pay check $6000/month ( 3 workers including 2 founders X $2000/month)

    Total $6750/month (fixed cost at constant for all three years) Depreciation $16,000 equipment / 10 years life = $1,600 per year

    Investment Required Capital Expenditures (only required at year 1)

    Dough mixer $6000 (used, capacity 60qtrs)

    Freezer $10,000 (new, 8 x 10 walk in)

    Other equipment $2000 (used sink = $1000, Used counter and other = $1000)

    Working Capital Payment to suppliers = cash on delivery ( +0 days)

    Payment from retailers = cash by next month day 20th ( -1 day to -50 days )

    Average negative 25 days of sales amount

    Other major expenses Installment of equipments and other $1000

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    Appendix 1 - Financial Projection Assumptions

    Comparables Financial information

    Most small bakeries are privately owned. No financial information except larger publiccompanies.

    Panera Bread (only company owned bakery and cafe section) 18 COGS = about 30% of sales amount

    Labor = about 30% of sales amount

    National average of baking industry 19

    Out of 5,354 companies Average COGS = 56% of sales amount

    Panera

    read Income statement in $millions

    2006 2005 2004 2006 2005 2004

    Sales (Bakery and Cafe) 666 499 362 100.0% 100.0% 100.0%

    COGS 197 143 101 29.6% 28.7% 27.9%

    Labor 205 151 110 30.8% 30.3% 30.4%

    Occupancy 48 35 25 7.2% 7.0% 6.9%

    Other operating expenses 92 70 51 13.8% 14.0% 14.1%

    Operating profit 124 100 75 18.6% 20.0% 20.7%

    source: Panera Bread

    aking Products National Average

    Number of corporations 5354

    Average COGS 56%

    Average Gross Profit 44%

    Average Net Income 3.80% source: BizStats.com

    percentage of sale

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    Appendix 1 - Cost ofstarting a franchise

    Great Harvest (Franchise Retail Bakery) 20

    Initial fee Average Initial Franchise Fee $30,000

    Travel & Training Expenses $381-$12,000 average $4,488

    Real Estate & Improvements$8,348-$172,022 average $70,586

    Equipment $44,341-$140,727 average $78,325

    Opening Inventory Ingredients & Supplies $2,750-$27,000 average $8,346

    Signs $615-$23,793 average $5,953

    Grand Opening Advertising $400-$8,689 average $3,495 Prepaid Expenses

    City, County, State, Landlord $400-$21,232 average $6,420

    Organizational Costs

    Legal, Utilities $425-$42,475 average $10,063

    Working Capital (Cash Reserves) $5,000-$70,000 average $12,285

    3 Months Rent $4,455-$18,600 average $10,383

    TOTAL ACTUAL INVESTMENT $107,608-$352,322 average $225,682

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    Survey of Monday night MBAX 6100 class

    Response to Idea: Yes: 17 Maybe: 2 No: 9

    Seems just like laying out meat

    I pay people to bake for me

    Already have a breadmaker. Hobbyist breadmakingneed already filled

    Offer companion product like dip

    Is frozen less healthy?

    Like frozen Jewish breads, would like more options

    Concerns Worried that making bread is tough. Is there room for

    baking error?

    Time involved maybe a weekend activity, wantinstant

    Having to remember to thaw ahead of time/ planning

    Will it taste as good as bakery products?

    Over/under baking

    High Altitude baking

    Varieties Rank The overwhelming choice: Whole Wheat

    Next: Multigrain & Sourdough

    Some interest: Rye & Bagels

    Limited Interest: White & Pita

    Special Interest: Cinnamon Raisin

    Appendix 2 Customer Survey

    Price Standard Loaf: $2-6(10)

    Small Loaf: $1-3(5)

    Whats Important Superior flavor is very important Natural/Organic, Whole grain, &

    Freshness are fairly important

    Price & Shelf life are only somewhatimportant

    Whats missing: good baguettes

    Demographics Male: 25 Female: 3

    Household Size:6(1) 10(2) 2(3) (4+)4

    Age Group: 3 (18-25) 10 (26-30) 8(31-37) 1 (38-50)

    Primary Shopper? Yes: 13 No: 7 How much do you buy per week:

    2(0) 6(1) 6(2) 6(3+)

    Where do you buy: (No/Maybe/Yes) Supermarket bread aisle: 8 / 2 / 8 Supermarket bakery: 2 / 1 / 6

    Supermarket frozen section: 1 / 0 / 3

    Bake at home from scratch: 1 / 0 / 1

    Bake at home using mixes: 1 / 0 / 1

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    Survey of Professors/Administrative Staff

    Thought product seemed like a good idea Concerns

    Thawing long enough/sufficient rise

    Under/overcooking

    Freezer burn/Freshness

    High altitude baking

    Will it taste like homemade?

    Expected price Comparable to fresh-baked prices $1.50 to $3 for large loaf

    $0.80 to $2 for small loaf

    Multi-grain & Whole Wheat top variety choices 4 Females/1 Male 1 (31-37) 1 (38-50) 3 (50+)

    Appendix 2 Customer Survey

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    Survey of classmates given prototype samples of product to try 4 Women & 1 Male

    3 Loaves of Rye, 2 loaves of sourdough Liked At least 1 was ready to make purchases! the convenience of pan

    The appearance of the baked loaf

    The flavor: tasted great, having hot bread

    One respondent felt more likely to purchase after trying

    Generally thought that a bigger loaf was probably better given thaw/proof time.

    Concerns Bread took a long time to thaw and rise, takes a lot of planning ahead ecological impact of disposable pan

    Use would purchase the bread for special occasions, like dinner parties

    Good for people who dont know how to bake

    Suggestions consider making bread rings of sectioned bread to speed up the proofing

    Really soft doughs proof much more quickly than dense wheat and rye doughs

    to attract attention, I might put seeds on and in some of your breads Conclusions

    Need to investigate methods that might allow much quicker thaw/proof times perhaps partial proofing

    One surveyor left the bread in backpack overnight, refroze, and then tried again. Flavor was still good.This suggests that a partial rise might be an option.

    Really great directions and website are needed to meet different customers needs. Some wantdetailed directions, some go by feel, etc.

    Appendix 2 Customer Survey

    It tasted like the

    best store-bought

    bread or bakerybread that I have

    ever had. My

    husband would like

    to put in an order

    already!

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    Appendix 3 Competition Matrix

    Man

    fact

    rer rod

    ct escription Q

    ality

    aste Vis

    al Appeal Convenience

    elf Life rice

    tren

    t

    s Weaknesses

    Rhodes ke- - er

    rozen

    hiteor

    heatreaddough Traditional ow

    Medium - simple

    ut goodMedium - thawand

    ake Long $3.

    for3 l . Loaves

    ell known frozendoughrand

    "Tastes like

    onder

    read"

    American lat read Frozenpizzadough Natural

    Medium - thawand

    ake Long $9.99 for l

    ! ills ur"

    !rebaked frozenmini-

    loaves Traditional#

    er"

    Low

    Poor - s $ uished

    in transit%

    igh - bake

    &

    minutes Long $4. 9 for two loaves % ouseholdbrandPoorappearance

    and taste

    Alexia Prebaked frozen rolls Artisan-Natural Medium- % igh

    High - bake in '

    minutes Long $3. ( 9 for & . ) oz. Trustedname Roll sizeonl"

    Nature's Path Baked, frozen, sliced Organic#

    egetarian

    Medium - sliced

    bread

    Medium - must

    thaw Short $3.0

    9per

    4oz. loaf

    1 ood for consumers with

    allergies

    Not mainstream

    appeal

    FoodForLife Baked, frozen, sliced Organic Specialt"

    Medium - sliced

    bread

    Medium - must

    thaw Short $4. 0 9per loaf

    1 ood for consumers with

    allergies, vegetarians

    Not mainstream

    appeal

    Rudi's

    Shelfentr"

    sandwich

    bread Organic High

    Medium - sliced

    bread High - ready toeat Short $3.99 to$4.

    9 Quality Not freshbaked

    Who leFoods Freshbaked, bakery Artisan High High - artisan High - ready toeat#

    eryShort $2.99 to$3.99per loaf 2 onvenience 3 Taste Short shelf life

    Breadworks

    Local bakery

    producedartisan

    bread Artisan High High - artisan High - ready toeat#

    eryShort $3. & & to$5.40per loaf#

    eryFresh Short shelf life

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    Appendix 4 Call Reports

    Index of Reports:

    1. Beth Swanson, Rudis Organic Bakery2. Kyla Duffy, former owner Nutballz3. Scott Roy, President, Boulder Ice Cream4. Adam Schneider, Owner, United Sales & Service5. Jason Vincent, Category Manager, Frozen Foods, Wild Oats Corporate6. Linda Iggi, Owner, Amazing Grains7. Scott Creevey, Owner, Great Harvest Bread8. Soichiro Sato, Manager, Clear freight

    9. Tom, Store Supervisor, Vitamin Cottage10. Name Unknown, Bread Sales Supervisor, Whole Foods