In a market dominated by competition and economic instability, the companies in the bakery, pastry and confectionery industry in our country are increasingly concerned with the permanent improvement of the image they convey to consumers and partners.
Manufacturers strive to provide positive experiences to anyone who interacts with their brands. In this sense, they resort to different marketing policies and techniques: training staff according to the company's values and creating a distinct visual identity on the market by using registered brands, customizing product distribution machines, opening stores under their own brand, etc.
Currently, as a result of educating consumers' tastes and preferences through better information, bakery, pastry or confectionery products no longer satisfy only the primary need for food, but also the need for socializing or even culinary indulgence. On the other hand, changes in the modern lifestyle lead to the creation of new opportunities and new automation systems, not only regarding production processes, but also those of service.
The advantages of stores opened under their own brand
Opening a store under your own brand is an expensive investment, but at the same time beneficial, as it contributes to the growth and consolidation of the image on the market and implicitly the trust of consumers in the manufacturer's brand. In Romania there are already numerous stores of producers in the bakery-pastry-confectionery sector, their main advantage being that, here, the products are always fresh and even hot.
For example, the manager Kovacs Bakery from Târgu-Mureș told us that his stores are supplied every two hours. "I say this is a very big advantage because customers know they can find fresh products around the clock".
Mr. Csaba Kabai, the representative Eldi Bakery, explained for Arta https://kovacs.ro/Albă that, in the case of his company, "it was a necessity to have our own stores, to be closer to customers. It is important that those who come to the stores know our products and come back here every day to buy them. Opening your own stores is both an advantage and a disadvantage, as it requires skilled staff who must be paid. And we know how hard it is to find an employee these days".
The solution that the management of Bake Expert found to get the employees not to leave the team was to increase the salary. "During this period of crisis in the labor market, we have managed to keep our employees because we have invested in salary increases and given them various additional benefits. Basically, the salaries we offer are above the market average. Thus, in the last two years, the staff turnover rate was below 10%".
Another advantage, closely related to production and supply, is good order management and reduction of unsalable stocks. Based on historical and real-time orders, manufacturers can estimate and ensure, throughout the day, the quantities and assortments needed, so that when the store closes, stock is as depleted as possible.
Daily communication between sellers and customers makes it easy to get a immediate feedback on product range and quality. At the same time, these direct interactions with customers can contribute to a better knowledge of market requirements, even leading to ideas about new products or assortments. "For the customer who comes to the store every day, the fact that he interacts with the same person every time creates an interpersonal relationship that gives him psychological comfort and confidence in the recommended products", said the executive director of Bake Expert, Marian Bîciu.
The online promotion of the product range under the manufacturer's brand, but also of its image on the market, is another aspect that entrepreneurs must pay attention to, today more than ever. Through the various online communication channels (website, social networks, news platforms, etc.) the visibility of the brand can increase significantly, especially among young consumers, who use the Internet daily.
In this context, the stores opened under the own brand also receive the role of "showcases" of the entire range of manufactured products. Thus, the online promotion of own stores is a simpler way for manufacturers and more attractive for customers, who understand that in these spaces they can find all the products of a brand at any time.
Depending on the location, arrangement, way of organization and operation, own stores are and will remain,,instruments"what can become the "winners" of the producers, in the current,,market game" based on competitiveness.
Stores opened under their own brand contribute to the increase in sales, at the same time ensuring the production companies and the quick closing of the circuit of financial resources, the continuous flow of money bringing high profitability.
Choosing the space for stores
One of the criteria that entrepreneurs pay attention to when they decide to open a retail space is positioning, respectively its location in congested areas, with a large flow of people. "For a showroom to become known, it must be located in a good neighborhood or at a bus stop, so that customers can easily reach us and then we can keep them loyal", mentions the entrepreneur Eldi Bakery, Csaba Kabai. The same idea is supported by the manager Kovacs Bakery.
Proximity is another important criterion. Fresh produce stores have the advantage of being able to meet consumers in different places they frequent (home, work, bank, pharmacy, kindergarten, etc.), thus managing to meet their needs on a daily basis.
Another perspective of the choice of space is related to area – urban or rural. Each variant has its pluses and minuses. City stores have the advantage of being frequented by more consumers with average or above average incomes, thus benefiting from higher sales, but the rents and investments required are also higher. On the opposite pole, rural shops have affordable rents and require, in most cases, lower investments, but also lower sales. On the other hand, in rural areas, demand may be constant, as there are a limited number of competitors.
Although the entrepreneurs know exactly what they want, namely well-positioned premises, the problem arises when they need to be rented and the discussions come to the rent price. The increased cost of rents is one of the reasons that often lead to the decision that, in addition to the products of own production, other ranges of complementary products are marketed, such as coffee, soft drinks, dairy products, etc.
You can offer more to customers
The ambiance and personalized style in the retail space can drive the purchase decision. Once in the store, consumers are influenced by the aromas, the appearance of the fresh products, but also by the way they are presented. Other factors that contribute to creating a positive experience to the customer's interaction with the manufacturer's brand are: the ambient design and appearance of the store, the ventilation and cleanliness of the space, the possible sound background existing here, the kindness of the seller, the promotional materials of their own products or even the display of detailed information about the raw materials used, etc. All these factors depend on the internal organization and promotion policy of each individual company.
The entrepreneurs want the people who cross the threshold of their stores to spend a longer time here, which is why they resort to different ways, such as: creating a welcoming and modernly designed retail space, placing tables intended for quick consumption, putting various products on sale complementary etc.
"Customers know that when they walk into our stores they can find everything they need: fresh produce, coffee and cakes", says the manager Kovacs Bakery.
Regarding this subject, Csaba Kabai, the representative Eldi Bakery, confessed to us: "When we opened the first store in 2000, our idea was to sell only bread and pastries, dairy and soft drinks. Over time, all costs - rents, salaries, etc. - have increased. – and we could no longer cover the expenses. Under these conditions, any product that goes on sale in our stores brings additional income. Through this approach, we complete the range of assortments and respond to customer demand. Thus, I can offer much more to customers!".
Currently, the network of Eldi stores has reached 55 units, in the counties of Mureș, Sibiu, Harghita, Cluj, Bistrița, Alba. The entrepreneur Csaba Kabai does not want, at the moment, to expand further, but to focus "on improving quality and developing products specific to the HoReCa segment".
The company Bake Expert, known on the market under the brand "House of Bakers", with a network of 34 stores, does not take into account the opening of new work points, for the same reason, of the too high rents, according to the statement of the executive director, Marian Bîciu.
In 2019, the focus was on the launch of the packaged and sliced bread range – “we focus more on value-added products, a strategy that will lead to increased profit margin. We stay in the craft products area. Including the assortment of packaged bread that we will launch will be hearth-baked products. In general, on the market, hearth-baked and sliced bread has a fairly low share, it being much simpler to produce bread in tunnel ovens", believes Marian Bîciu.
Panemar is another example of a company that aims to be ever closer to consumers. With a network of 40 stores in Cluj and a good reputation in the Transylvania area, the company opened, on January 22, 2019, the first retail store in Oradea.
"We expanded, we opened a store in Oradea, it's a success, it was well received, people are satisfied. We will open two more stores in Oradea, we have the premises rented. We're not going to expand aggressively, it's not going to be an explosion. We want to take a step forward only when the previous one is well established. Expansion is a priority, but we want it to be a moderate one", Nicolae Chiorean, the founder of Panemar, declared for Ziarul Financiar.
Actions for improvement the client fidelity
A key element of the success of own stores is customer loyalty. E.g, "for every lei spent, the Eldi customer gets one point. At 300 points, he has a 10 lei voucher, which is not printed on paper, but is loaded onto the card and is valid for 90 days. Also, customers who have a loyalty card benefit, on the occasion of their birthday, from a 30% discount on Eldi brand products. There are other special offers, strictly only for loyalty card holders. Currently, there are almost 80.000 cards issued in the market", said Sandor Csongor, general director, in April this year Eldi.
In stores under the brand "The Baker's House"we want to implement programs that, in addition to customer loyalty, also motivate employees to sell more - "we take measures to make the business more efficient, an example being the implementation of a new sales software, along with the change of cash registers imposed by law. It will allow us to create customer loyalty programs and do much better analysis on product profitability and sales force productivity. With 3-5 employees at each location, the personal involvement of each salesperson is different. We want to create targeting and individual reward tools that will drive sales per store", declared Marian Bîciu in April this year
challenge
One of the big challenges of opening a store under your own brand is financial investment. The necessary costs of facilities and equipment, maintenance costs, ensuring transport conditions, promotion, etc., all these require money, time and involvement, in order to be able to generate profit.
Another element that could make it difficult to carry out the activity in our own stores is, currently, investment in personnel – costs with finding employees, employee salaries, and often costs with their specialization. The staffing crisis has increasingly left its mark on the profile industry as well, and technical innovations and automation cannot completely replace people. The human factor cannot be missing in certain essential processes or stages, such as serving customers or transporting products.
Not least, finding appropriate spaces, located in commercial fords it can represent a test for companies that want to consolidate their place in the market by creating their own stores. The manager of the Kovacs Bakery confessed to us that he "livid" the better spaces until they manage to rent them.
Nicoleta Banu, editor White Art
