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Marketing Essay

3697 words - 15 pages

|carolines bread company |
|Market Report |
|[Type the document subtitle] |
| |
|Magita Nicole ...view middle of the document...

Although there is not a substitute for bread many consumers have started to make homemade bread, which is cheaper, and in some cases healthier which has affected the UK bread market.

UK Bread Market

The UK bread market is a well-established field within the consumer market, which is worth just over £3 billion and is very fast growing. The UK consumes about £9 million units of bread daily with 70% being white bread of the 200 varieties available of bread. Bread is a very essential part of the diet as it provides us with carbohydrates needed for energy and sodium that is essential for ph regulation along with many other healthy components such as protein, iron etc. On average each household consumes just over 80 loaves of bread each year spending almost £80 annually on bread alone (Bakers, 2007).
In the UK there is an extremely large variety of bread types with over 200 unique recipes. Bread can be as basic as the much loved classic medium white sliced or for those who prefer an alternative taste of bread, there is the option of Sourdough or Rye bread and many more (Trust, 2012). In the UK the leading producers of bread are Hovis, Warburtons and the Allied Bakeries Group; who produce Kingsmill, Allison, Burgen and Sunblest in which collectively they account for 80% of the bread sales (Bakers, 2007). Medium sliced white bread is the best performer within the bread market, alongside whole grain bread. On the other hand, we have bread types such as malted grain, French sticks, and bread rolls that do not produce high sales volumes, contributing significantly fewer sales to the bread industry (Dunnhumby, 2012). The bread industry is fast growing which may also be linked to the increasing awareness of health issues within the UK. There have been reports which highlight the sudden vast increase in obesity from mid-to-late 1990s to around 2007. In 2006, 24% of people 16+ were diagnosed as obese which was is 15% increase since the early 1990s suggesting that obesity was on the rise in the UK (NHS, 2008). Since the realisation of obesity the government tried to implement schemes to help reduce the levels of obesity as it was proving costly to the NHS. This can therefore be linked to the growth of the bread market as more and more people are incorporating it into their diets as healthy eating and lifestyle became a popular trend in the UK.

Carolines Real Bread Company

Caroline’s Real Bread Company seeks to deliver high quality and organic goods. The company’s policies are based on providing 100% fresh breads which are uniquely tasting and free from GM, added sugar, artificial E numbers, flour agents, preservatives and more. This situates the company in a slightly different segment of the market as compared to bread companies whose focus on the convenience or taste which may cause them to produce their bread in a different way and possibly not as organically as Caroline’s (Company, 2012). The company has been...

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