Doughnut Shop Business Plan Market Segment Strategy

Welcome to the Doughnut Cookie Shop Sample Business Plan Target Market Segment Strategy

Table Of Contents
MARKET ANALYSIS SUMMARY   TARGET MARKET SEGMENT STRATEGY   BUSINESS ANALYSIS

Donut Shop will target the low- to mid-income consumers who want to have a high quality dessert for moderate prices. “Can’t Fail Donut” Shop meets the quality required by these customers. Lastly, this group will see a large growth in their numbers over the next decade. If we can continue to meet and exceed their expectations, we should witness same store sales growth over this time period. We have to stay focused on their changing needs and pastry choices to maintain their loyalty. It’s a resume from Peet’s Coffee & Tea, Inc second quarter 2004 report: http://investor.peets.com/ReleaseDetail.cfm?ReleaseID=140516 “EMERYVILLE, Calif. - July 28, 2004 - Peet's Coffee & Tea, Inc. (NASDAQ:PEET), today announced second quarter results for the 13 week period ended June 27, 2004. Total company net revenue for the quarter increased 15.4 percent to $33.6 million, compared to $29.1 million for the same period last year. Year-to-date sales increased to $66.1 million for the 26 weeks ended June 27, 2004, an increase of 17.1 percent over sales of $56.5 million for the same period last year. Retail store revenue increased 11.4 percent to $23.5 million for the quarter. The company opened six new stores during the quarter, five of which were in the month of June. Year-to-date Retail store revenue increased 12.3 percent to $46.1 million primarily driven by the opening of 13 new stores in the last 12 months and continued growth in existing stores.”

Peet's Coffee & Tea, Inc. Reports Second Quarter 2004 Results Despite the growing concern on the part of nutritionists and physicians about our overweight population, the doughnut business remains a rapidly growing one. Why the doughnut business is robust is open to debate. Among the possibilities -- the price is right. Doughnuts are not expensive. And they're easy to eat on the run and not too messy. (Some people have been seen devouring them while behind the wheel -- not exactly a safe driving mode.) They're also readily available to whether you're in Manhattan, Mexico or the neighborhood mall. And the shops that sell them offer other items with everyday appeal -- coffee, tea, hot chocolate, frappes, smoothies, ice cream, sorbets and in some cases, bagels, muffins, cookies and sandwiches. The Leading Players o Dunkin' Doughnuts (NYSE: AED; $24.22). This rapidly expanding company has announced plans to add some 300 shops by the end of 2004. It will also test out the market inside select Home Depot stores. You can not invest in Dunkin' Doughnuts as a pure play. The franchise is owned by Allied Domecq of Bristol, England, an international company that specializes in wines, spirits and quick service restaurants. AED, which has slightly over 12,000 employees, also operates Baskin-Robbins. For the 6 months ended February 2003, net profits decreased 17%. The 52-week high/low is $26.82/$17.14. The dividend yield is 3.60%. The total debt to equity is 3.24. For more information: www.dunkindoughnuts.com and www.allieddomecq.com. o Tim Hortons (NYSE: WEN; $28.52). This Canadian chain, with 2,000 stores north of the border, is expanding into the U.S. under its parent company, the Dublin, Ohio-based Wendy's International. To date, it has 160 locations in the states with 40 more in the pipeline. Like Dunkin' Doughnuts, you cannot invest as a pure play. Wendy's International franchises 4,933 Wendy's restaurants and operates 2,348 Tim Hortons and 210 Baja Fresh restaurants. Tim Hortons is Canada's largest coffee and fresh baked goods chain. In addition to its doughnuts, it also specializes in fresh baked cookies and old-fashioned sandwiches. For the three months ended June 29, 2003, Wendy's revenues rose 14% while net income fell 2%. The 52-week high/low is $40.00/23.97. The dividend yield is 0.85%. The total debt to equity is 0.44. For more information: www.wendys.com. “Can’t Fail Donut” Shop sees our targeted market group as having many needs. Taken from a recent Consumer Reports on Eating Share Trends (CREST) survey, below are the needs we will focus on in “Can’t Fail Donut” Shop. Our core group: >Seeks strong value. Wants variety in its pastry products. Looks for speed of service. Insists upon a clean, friendly, and attractive environment.