Market Research
How Samsung Succeed In Android’s world
1. EXECUTIVE SUMMARY:
Preface:
Information technology has developed, smartphone have become the
mainstream of communications equipment market, It’s believed that the
term of the smartphone are no longer strange, and relevant products
have also come out for a long time, but recently there is a sign of a sharp
turnaround for smartphone, smartphone’s function are more than you
can imagine, the most simple definition is the PDA plus mobile phone,
personal digital assistant Feature added to the phone. What PDA can do,
smart phones can complete as well, including the Internet, personal
information management, send and receive Email or processing
information and a variety of documents.
Research Motive:
Smart phones and mobile networks have become mainstream, changed
the life for the human being, not only keep the phone connection, such
as geographical location, lifestyle and other personal files, resulting in
the new Model of personal life and interpersonal interaction, and
extension affect the marketing, brand communication areas. In addition,
the evolution of mobile phones and mobile devices, corresponding to
the current cloud computing industry, will also be derived from a variety
of changes in technology and new technology opportunities, lead to
follow-up innovation and breakthrough.
In the smart phone market, there are many companies want to grab this
market. It is reported in 2014 that South Korea's Samsung mobile phone
in the global Android won 65% of the market share, the power is quite
strong. However, why can Samsung mobile phones be such a highly
competitive mobile phone.
2. Research Questions and Goals:
Samsung is one of the leading competitors in the smartphone market.
The brand produces a variety of products including smartphone,
television, washing machine for people. We researched the brand to
answer the question:
•How Samsung consolidate their brand image and success in Android
world?
Our goal is to assist smartphone’s company who also use Android
system. Our secondary research provided us with background
information on the company’s current status and goals. We continued to
further analyze the brand with primary research, which allowed us to
consider ways in which to make improvements for smartphone’s
company.
3. Research Method
(A) Literature review: through the Internet, books and secondary
research to collect information related to Samsung, then to integrate and
discuss.
(B) Questionnaires: In this study, the questionnaire was used as the
research work, and the degree of preference of the Samsung mobile
phone and purchase satisfaction were investigated.
4. Research Subjects
I did online survey to them, I took Facebook as a Population and used
friends on Fb as a Simple to study.
SECONDARY RESEARCH REPORT
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How Samsung Has Succeeded in Android’s World
Sheng-Ho
UCSC Silicon Valley Extension
SECONDARY RESEARCH REPORT
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Table of Contents:
Preface……………………………………………………………………….….............3
Background……………………………...………………………………………………3
Market Share…………………………………………….………………………………4
Success story……………………………………………………………………………5
Creative Qualitative Research…………………………….…………………………….6
Samsung Company – Smartphone Analysis……………………………………………6
Methodology………………………………………………..….……….………………7
Smartphone Shipments…………………………………………….………….…...…….8
Conclusions………………………………………………………………..……….……9
Recommendations………………………………………………………………………..10
Remaining Research Needs………………………………………………….…….……11
References………………..……………………………………………………….………12
SECONDARY RESEARCH REPORT
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Preface:
Data innovation and technological development have created the smartphone which has turned
into the standard hardware of correspondences market. It is trusted that the term of the
smartphone is no longer odd. Pertinent items have likewise turned out for quite a while;
however, as of late there is an indication of a sharp turnaround for the cell phone. Cell phone's
capacities are more than you can envision, the easiest definition is the PDA in addition to a cell
phone, the individual advanced associate element added to the telephone. What PDA can do,
advanced mobile phones can do also, including the Internet, individual data administration, send
and get Email or handling data and an assortment of archives.
Background:
Advanced cells and portable systems have moved toward becoming standard, changed the life
for the individual, not just keep the telephone association, for example, land area, way of life and
other individual documents, bringing about the new Model of individual life and relational
collaboration, and expansion influence the advertising, mark correspondence regions.
Furthermore, the development of cell phones and cell phones, comparing to the present
distributed computing industry, will likewise be gotten from an assortment of changes in
innovation and new innovation openings, prompt follow-up advancement and leap forward. In
the smartphone market, there are many companies who want to grab this market. It is reported in
2014 that South Korea's Samsung mobile phone in the global Android market won 65% of the
market share, the power is quite strong. However, why can Samsung mobile phones be such a
highly competitive mobile phone?
SECONDARY RESEARCH REPORT
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Smartphone Vendor Market Share
From the above graphical and table analysis, we can draw the following conclusions;
1. Samsung retained its No.1 position in the worldwide smartphone market with a 21% share in
2016Q3.
2. Even though explosion event caused to real Note 7, but still thanks to the continued success
SECONDARY RESEARCH REPORT
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of the Galaxy S7 and the S7 Edge devices
3. The fast rate at which Samsung recovers from the damage to its brand can be clearly seen.
4. The average selling amounts of Huawei devices has been increasing steadily. What remains
to be seen is how successful Huawei can be at penetrating the high-end segment in the US.
5. With a share of 7.1% of the smartphone market, OPPO's main play is in China. With
aggressive marketing, it continues to find success in Asian markets outside China.
6. It maintains strong momentum in China and has gained significant growth in India and
Myanmar. Using celebrity endorsements and advertisements, the video has been able to
capture a huge following and create a strong brand presence (IDC, 2016Q3).
Samsung's Android success story
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From the above graphical information, we can draw the following conclusions supporting our
topic sentence;
1. Samsung has managed to take Google's Android mobile platform and create smartphones for
it that people want, capturing more than 50 percent of the smartphone market from 2010 to
2012
2. Samsung has seen a great deal of success with its Galaxy series of devices.
3. The Galaxy S III also saw a broad release, available on Verizon, AT&T, Sprint, T-Mobile and
U.S. Cellular. This made it available to as broad an audience as possible.
4. The Galaxy Series is also a great device for the bring-your-own-device (BYOD) crowd. The
handset has a number of enterprise-friendly features (Adrian Kingsley-Hughes, 2012).
Samsung’s Creative Qualitative Research
1. Samsung spends $10.7 billion, or 5.7 percent of revenue, compared with Apple’s $3.4 billion,
2.2% on research and innovation.
2. Samsung also relies heavily on ethnography and trend analysis to bring inspiration and to
port ideas over from other realms of design.
3. It listens to consumers, other industries and its partners, such as component makers and
wireless carriers (Buyer Synthesis, 2013).
Research and Markets: Samsung Company - Smartphone Analysis
1. Samsung build Smartphone for everyone
2. Samsung provide an open operation System
3. Samsung Smartphone sales Strengths & Weaknesses
SECONDARY RESEARCH REPORT
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Samsung Strengths:
•
Strong Technology
•
Supports Multiplatform
•
Focus on Innovation and Consistent R&D
•
Smartphone for Everyone
•
Samsung Increasing Mobile Phone Market Share
Samsung Weaknesses:
•
Patent War between Apple Inc. and Samsung
•
Software Is a Fatal Weakness of Samsung (Business Wire, 2012).
Methodology
Samsung Electronics
1. Samsung Electronics products include semiconductors, hard drives, digital displays, home
electronics, mobile phones, and others.
2. All Samsung products have the same tone so that customers can easily get used to them and
this tone is mentioned when Samsung products are being advertised as well.
3. The business strategy of Samsung Electronics presents an interesting case due to the fact that
company has an experience of pursuing both, cost leadership as well as product
differentiation strategies during its lifetime (Research Methodology, 2012).
4. Samsung design staff has been tripled to 400 globally (Singhania, 2006), along with
numerous other measures.
SECONDARY RESEARCH REPORT
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5. The dramatic change in the strategy of the company has allowed Samsung Electronics to
emerge as one of the main players in all of the markets the company operates in.
Smartphone Shipments
From the above table of smartphone shipments, we can draw the following conclusions;
1. Samsung still has the highest Shipment Volume in the last 2 years.
2. Midrange phone cameras have improved dramatically.
3. Consumers do not have to compromise on app performance by buying a midrange or budget
smartphone like they had to two years ago.
4. The globalization of the smartphone market will have a lasting impact.
5. With the improving phone quality, the replacement cycle is lengthening, as Chinese
consumers are not compelled to upgrade as quickly (Network World, 2017).
Conclusion:
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The business environment is highly dynamic so that there is the need for organizations to
keep updating their systems so as to meet the growing needs of consumers. Technology has
taken the better part of customers and going digital is the primary requirement of clients. In the
smartphone industry, for example, there are many companies thus a variety of brands availed to
customers. However, consumers are choosy and take the time to accept a product especially
because they have to take the devices that have all the features that they are looking for
(Morrison, 2008). Different brands have features that attract different customers. The main thing
that all clients are looking for is an easy way of communicating and creating networks and
connections with people. For example, the social media is one of the leading platforms where
people communicate and interact with each other, share business ideas and grow the ideas into
reality. Samsung provides smartphones to customers that are aimed at enabling the customers to
use the applications and features as they are present in the phones. The company, however, faces
challenges in its operations, which make it hard for the company to realize its full potential.
Also, the company is advantaged since it has a brand image that is known to customers all over
the world. As a result, the company does not have a hard time when marketing its products.
Regardless of the competition, Samsung can manufacture the best products that will meet the
needs of the customers thus widening its customer base.
Recommendation:
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Samsung Company operates in a highly competitive industry, and many challenges are
affecting its operations. However, the company should take competition as a factor that will drive
it towards having a competitive advantage. For instance, the company should aim at having a
differentiated brand that has better applications as compared to those manufactured by other
businesses. In this case, the company should have a variety of brands where each will have
different specifications that will meet the diverse needs of customers. On the other hand, the
company should focus on having loyal customers and attracting many others by providing quality
products at affordable prices. The smartphone industry has expanded to cover all parts of the world.
The market has also grown, and customers seek to satisfy their needs by having the right devices
(Michell, 2010). The war between different companies has made some perform poorly while others
have excelled through making customers satisfied. The Samsung Company must understand the
nature of its competitors, the devices manufactured and their ability to penetrate the market. Also,
the company should seek to identify the unmet needs of customers and manufacture devices that
will make them get satisfied. On the other hand, the Samsung brands should be made available in
different parts of the world at fair prices and with quality features that will attract customers. The
company should also remain updated on technology and technological features that could get
utilized in manufacturing quality brands. The company should also aim at creating a brand image
that will get accepted by the customers, and this will enable the company to retain a significant
number of clients.
Remaining research needs
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For Samsung Company to stay effective in the aggressive business condition there will be
the need to put an emphasis on alternate components that may influence its operations including
the partner's advantages, for example, the requirements of representatives and clients and
additionally those of the shareholders. The need to adjust between the necessities of customers
dependably makes an association effective paying little heed to the business inside which it
works.
Samsung has been loved a lot by the customers in the recent years. The major reason why
customers love Samsung smartphones is that the phone has got a strong hardware. Samsung
smartphone hardware is made up of special alloys which are made up of special components
which makes it durable as compared to other smartphones.
Secondary research was not easily to determine the reason why people has been loyal at
Samsung, so the survey of my Facebook who used Samsung smartphone or Android system
smartphone might help me to figure out the factors why they like Samsung.
Furthermore, the data or information above were provide by social media or Samsung, it wasn’t
easily to reveal the voice of customers. By collecting the data from survey would also help me to
understand customer’s satisfaction and loyalty of Samsung
References
SECONDARY RESEARCH REPORT
12
Michell, T. (2010). Samsung Electronics and the struggle for leadership of the
electronics industry; Singapore: Wiley. Retrieved from
http://www.worldcat.org/title/samsung-electronics-and-the-struggle-for-leadership-of-theelectronics-industry/oclc/767953023
Morrison, J. (2008). International Business: Palgrave Macmillan. Retrieved from
http://www.worldcat.org/title/international-business/oclc/965711578
Smartphone Vendor Market Share (IDC, 2016Q3). Retrieved from
http://www.idc.com/promo/smartphone-market-share/vendor
Samsung's Android success story (ZDnet, 2012)
http://www.zdnet.com/article/samsungs-android-success-story/
Samsung’s Creative Qualitative Research (Buyer Synthesis, 2013)
http://buyersynthesis.com/blueocean/creative-qualitative-research/
Research and Markets: Samsung Company - Smartphone Analysis
http://www.businesswire.com/news/home/20120228005892/en/Research-Markets-SamsungCompany---Smartphone-Analysis
Samsung Electronics (Research Methodology, 2012). Retrieved from
http://research-methodology.net/samsung-electronics/
Smartphone Shipments (Network World, 2017). Retrieved from
http://www.networkworld.com/article/3193126/mobile-wireless/q1-2017-smartphoneshipments-samsung-rebounds-apple-goes-sideways-chinese-makers-roar.html
Final Market Research Report:
Opening A Home Bakery In The Bay Area:
Laws, Requirements, Financial Viability and Potential Interest
By
XXXXXX
UCSC Silicon Valley Extension
JULY 2015
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Table of Contents
Executive Summary ...............................................................................................................................................3
Introduction ............................................................................................................................................................4
Findings...................................................................................................................................................................5
Potential Interest............................................................................................................................................................... 5
Purchase from Home Bakeries ....................................................................................................................................... 5
Target Audience Considerations .................................................................................................................................... 6
Product Considerations .................................................................................................................................................. 7
Requirements .................................................................................................................................................................. 10
Pricing .......................................................................................................................................................................... 10
Expenses ....................................................................................................................................................................... 10
Equipment Required..................................................................................................................................................... 11
Financial Viability .......................................................................................................................................................... 11
Potential Revenue......................................................................................................................................................... 11
Supplementary Income & Next Steps .......................................................................................................................... 12
Laws ................................................................................................................................................................................. 13
The Act ......................................................................................................................................................................... 13
Operational Requirements for CFOs in Mountain View.............................................................................................. 14
Legal Requirements...................................................................................................................................................... 15
Labeling........................................................................................................................................................................ 15
Restrictions ................................................................................................................................................................... 15
Conclusions ...........................................................................................................................................................16
Recommendations ................................................................................................................................................16
Appendices ...........................................................................................................................................................17
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Executive Summary
Research Objective: The objective of this market research study was to understand how to open a home bakery
in Mountain View, CA, whether it was financially viable, and whether consumers were interested in purchasing
from one.
Background: Understanding potential Bay Area consumer preferences as well as the experiences of current
Bay Area home bakers will make it possible to determine if it is financially viable to open a home bakery. Also,
it is imperative to understand all legal aspects to ensure all regulations are followed.
Methodology:
Secondary Research: This was conducted from May 21-June 10, 2015, and included perusing online
information from articles, websites, forums, surveys and files to understand legal and operating requirements
for a home bakery.
Primary Research: Two online questionnaires were administered from Jun 23-July 1, 2015- one targeted to
potential Bay Area consumers to understand their buying habits for baked goods, and whether they would buy
from home bakeries, and the other targeted to Bay Area home bakery owners to learn about their experiences
with revenue earned from their businesses.
Findings:
A home bakery can be of Class A or Class B permit type, and both are not allowed to exceed $50,000
revenue per year or sell cream filled, custard filled, cream topped or other baked goods that need to be
refrigerated.
More people are likely to buy from a home bakery than not- 78%.
This drops to 58% when told about the restrictions of home bakeries, as people were concerned whether
the products sold could be considered safe.
Thirteen out of 28 people mention home delivery as the first preference, but Mountain View rules only
allow 2 deliveries per day.
Mini baked goods were the most popular product choice (4.25 mean).
100% of all home bakers surveyed believe that revenue earned is not enough, with 87% believing they
need another job for their main source of income.
Conclusions & Recommendations:
Opening a home bakery with Class A permit is recommended as it's cheaper and less subject to
excessive scrutiny.
Offering free samples as well as keeping price in the $5-$10 range is important.
A home bakery is not likely to provide enough income to live off of, and the revenue received can only
be considered supplementary to a main source of income.
Starting with selling mini (sweet and savory) baked goods may be profitable.
It is important to provide as much information as possible about safety checks done and why the baked
products sold are of highest quality as some people are wary about food sanitation in home bakeries, and
are unaware of what they entail.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Introduction
Objective & Hypothesis
The primary objective of this research study was to understand how to go about opening a home bakery in
Mountain View in the Santa Clara County under the California Homemade Food Act. In addition to learning
what the requirements are, this study was also used to gauge the level of interest consumers have in purchasing
from a home bakery, and whether it's possible to earn a living from the revenue received.
The hypothesis was that a home bakery couldn't be considered as a main source of income, only supplementary,
as it isn't possible to generate enough sales and earn enough profit to make a living.
Background
With the introduction of the California Homemade Food Act in 2013, it is now possible to manufacture and sell
a limited amount of homemade foods. These operations are called Cottage Food Operations (CFOs). Home
cooks can make what are considered “low-risk foods” from within their home kitchens. Baking from home to
test the waters, and to supplement income is the perfect alternative to a full time baking career, as the
investment needed for a full-scale commercial bakery operation is too expensive and risky.
A concern with the California Homemade Food Act is that there are a limited amount of items that can be sold,
i.e., items that do not require refrigeration. This means certain popular items such as cakes with certain types of
frostings cannot be sold, which can potentially affect revenue and profit. In addition, dogs are not allowed in the
kitchen, and the author was interested in learning how to work with this, and whether it might be better
exploring a commercial kitchen space instead.
Besides those limitations, the author was curious to understand whether consumers would prefer to buy foods
from an established bakery in-store or a retail outlet as opposed to a home baker. Would they consider it risky,
since they can’t quite be assured of the same type of quality and reputation? They cannot also buy anything that
needs refrigeration, so would that be a distinct disadvantage? Also, how much would they be willing to pay for
home baked products?
It was also necessary to understand what the experience was for people who have started their own home
bakeries in the Bay Area.
Methodology
a) Secondary Research
Secondary research was conducted to understand what legal and operational requirements were
necessary to run a home bakery.
Additional research was done to identify what food products could be sold, and what food trends should
be considered for a home bakery to be successful.
Online resources such as web articles, PDF documents, local government websites, forum discussions
and guides were used to build out secondary research.
This was conducted from May 21 - June 2, and was primarily done using search keywords such as
'California home bakeries', 'CFO,' California Homemade Food Act,' 'Food Trends 2015,' 'Cottage Food
Operations' and related.
b) Primary Research:
Primary research was conduced by the administration of two online surveys from June 23-July 1.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
One was targeted to potential Bay Area consumers to understand their buying habits when purchasing
baked goods, and whether they would be interested in purchasing from home bakeries.
The other was targeted to home bakery owners in the Bay Area to understand what their experiences
have been with earning revenue from their businesses.
Both surveys were distributed through various Facebook groups and online baking related forums.
In addition, the home bakers survey was also distributed through CFO related websites.
The consumers' survey was also distributed to personal connections as text messages.
For the consumers' survey, respondents were considered eligible if they lived in Alameda, Santa Clara,
San Mateo and San Francisco Counties, and purchased baked food products.
For the home bakers' survey, respondents were considered eligible if they owned a home bakery in the
Bay Area for more than 3 months.
Final Sample Size for Consumers Survey: 34 with a margin of error of +/-14% at a confidence level of
90%.
Final Sample Size for Home Bakers' Survey: 15 with a margin of error of +/-18% at a confidence level
of 85%.
Findings
Potential Interest
a) Purchase From Home Bakeries
Home bakeries are the least purchased (2.22 mean) from among retail stores and commercial bakeries.
This was expected, since they are not very popular yet.
Surprisingly, retail stores are the most popular (mean 3.89). This can mean that more people are used to
paying lower prices (as compared to from commercial bakeries). Thus, it's important to really stress the
value of the baked products from the home bakery in promotions and when selling.
Figure 1: Mean values* for how likely a consumer is to purchase baked goods from a commercial bakery, retail store or home bakery
*Mean value for the scale: 1 - Never, 2 - Rarely, 3 - Sometimes, 4 - Somewhat Often, 5 - Very Often
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
What was a pleasant surprise was that more people are likely to buy from a home bakery than not- 78%
(including somewhat likely and very likely data)
Figure 2: Percentage values showing how likely people are to buy from a home bakery
Disappointingly, this drops to 58% when told about the restrictions of not being able to sell refrigerated
goods. When prompted, a few people mentioned that they were concerned about whether the products
sold could be considered safe. As such, it is important to stress the safety measures taken when selling
and during promotion.
Figure 3: Percentage values showing the probability of people purchasing from home bakeries in spite of restrictions
b) Target Audience Considerations
Since a home bakery, as per the California Homemade Food Act, can only sell within California, and
must make 'face-to-face' direct deliveries, the target audience must be only focused on residents and
events within a relatively close driving distance of Mountain View.
Consumers must also have the ability to purchase online or in person, but be from a relatively close
distance.
As such the counties to be considered for delivery and events should be Alameda, Santa Clara, San
Francisco and San Mateo.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
In terms of delivery, 13 out of 28 people mention home delivery as the first preference with pick up
from residential location as their second. As per Mountain View restrictions, though, only 2 deliveries
can be made per day. Thus, deliveries must be thought out carefully each day, and offered only for high
value purchases, if possible.
Figure 4: Rankings for delivery/pick up of home bakery products
c) Product Considerations
Approved Food Products List (as of January 2, 2015):
Baked goods, without
Candy
Chocolate covered noncream, custard, or meat
perishable foods
fillings
Dried pasta
Dry baking mixes
Fruit pies
Herb blends and dried
mole paste
Popcorn
Honey and sweet
sorghum syrup
Vinegar and mustard
Cotton candy
Candied apples
Dried or Dehydrated
vegetables
Seasoning salt
Dried vegetarian based
soup mixes
Flat icing
Jams, jellies, preserves
Roasted coffee and dried
tea
Confections such as salted
caramel, fudge,
marshmallow bars,
chocolate covered
marshmallow, nuts, and
hard candy, or any
combination thereof
Vegetable and potato
chips
Marshmallows that do not
contain eggs
Dried fruit
Granola, cereals, and trail
mixes
Nut mixes and nut butters
Waffle cones and pizelles
Buttercream frosting,
buttercream icing,
buttercream fondant, and
gum paste that do not
contain eggs, cream, or
cream cheese
Ground chocolate
Popcorn balls
(California Department of Public Health, 2015)
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
As the author is primarily interested in baking, majority of these products were not considered, and only those
that are normally sold in bakeries such as cakes, pies, tarts, etc. were believed to be the best options to sell.
However, as per primary research, it is recommended to consider additional research into other profitable
products as 21% from a total of 48 respondents rarely buy baked products.
Figure 5: Percentage values showing how often consumers buy bakery products
According to The National Restaurant Association's (NRA) 'What's Hot in 2015' survey conducted in 2014, the
graph below shows a quick snapshot of products that can be considered for sale in a home bakery:
Figure 6: Percentage values of food trends in 2015
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Based on the above graph as well as personal preferences of the author, the following products were determined
to be the best products to sell:
1. Mini-Desserts: It's preferable to consider local and seasonal produce for baking mini-pies, bars, cakes,
cookies and tarts that need not be refrigerated.
2. Gluten-Free Cuisine: This has been considered a perennial favorite since 2009, and while there is an
increase in people thinking it's yesterday's news, it is still popular.
3. All-Natural, Locally Sourced Cakes & Bakes: This means preparing baked goods from all-natural
ingredients and no preservatives as well as ensuring ingredients are purchased from local sources such
as farmers markets.
After primary research:
Mini baked goods were determined to be the most popular choice (4.25 mean).
The least popular item was gluten free desserts with a large number of people mentioning they were not
allergic to gluten.
Figure 7: Mean values* for which 3 food trends are most likely to be purchased from a home bakery
*Mean value for the scale: 1 - Very Unlikely, 2 - Somewhat Unlikely, 3 - Neither Likely Nor Unlikely, 4 - Somewhat Likely, 5 - Very
Likely
July 2015
An interesting statistic is that very few home bakeries from those surveyed offered savory baked goods
(13.33%). It might be a good option to offer a few due to low competition.
9
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Figure 8: Percentage values showing whether home bakers sell sweet or savory items
Requirements
a) Pricing
As mentioned earlier, since majority of the people surveyed purchase from retail stores, it's important to
price carefully, and stress value of products sold (such as seasonal ingredients, very fresh etc.)
54% of consumers surveyed said they would buy products that are priced between $5-$10. Products that
are priced less than $5 came in next as the preferred option. Proper valuation of time spent on baking,
and ensuring use of appropriately priced ingredients as well as other expenses is key to guarantee
products are priced correctly to ensure profit.
Figure 9: Percentage values showing the price consumers are willing to pay for home baked goods
b) Expenses
For a home bakery in Mountain View, the following expenses may occur, according to Cristin Sohm of
Cristin’s Cookies, 2013, and MountainView.gov, 2013:
Food Handlers Training and Certificate: $13
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Product food labels: $30-$289 (Various websites)
Cottage Food Operation Permit: $219 for Class A & $635 for Class B
Business License: The City of Mountain View business license costs $30, plus a required State fee of $1
per year
Sellers Permit: Free to apply online through the State of California Board of Equalization.
Insurance: Starting at $299 per year (https://www.fliprogram.com/cottage-food-law-insurance)
Farmers Markets & Other Events: $99/year for Farmers Markets & $99/event
Taxes (federal and state): Varies
Ingredients: Varies
Miscellaneous such as delivery costs: Varies
c) Equipment Required
Oven: Existing one in kitchen can be used.
Refrigerator: Existing one to be used.
Proof Box: Home cook's proof box can be used at a cost of $150-$160.
Baking sheets, cake tins, muffin tin, mini molds and racks: Depending on how much baking to be done
and demand. Existing ones to be used initially.
Mixers: Three existing ones to be used.
Work Tables: Existing work space to be used.
Miscellaneous: Utensils, papers, tools etc.
(Demand Media, 2015)
Financial Viability
a) Potential Revenue
As per the California Homemade Food Act, a CFO is not allowed to exceed $50,000 revenue per year.
According to a survey done of home bakers, 40% believe the amount is just right, while 20% believe it's
very low.
Figure 10: Percentage values showing whether home bakers believe the revenue limit is too low or too high
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
In spite of people believing that the revenue limit was enough or low, majority (77%) of the respondents
of the survey believe that they will not hit the limit.
Figure 11: Percentage values showing whether home bakers believe they can hit the revenue limit
The various reasons given were mainly smaller scale production and restricted deliveries. Some of the
respondents also mentioned that they only baked for supplemental income and/or as a hobby.
Figure 12: Absolute values showing possible reasons for home bakers not reaching the revenue limit
b) Supplementary Income & Next Steps
100% of all home bakers surveyed believe that the amount earned from their home bakeries is not
enough
However, only 87% believe they need another job to supplement the income received. This could be
because the remainder (13%) may have another source of income or another family member earning.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Figure 13: Cross tabulation showing whether home bakers believe revenue earned is enough and whether they need another job
A large number of the respondents would prefer to continue as a home bakery, with only 2 mentioning
that they would consider opening a commercial bakery.
Figure 14: Percentage values showing possible next steps for home bakers
Most of the respondents believe that what they do is hobby, and a good way to make some money off of
it, but a few are concerned that over regulation and the fees needed are detrimental to their business.
Laws
a) The Act (Forrager, 2015)
According to The California Homemade Food Act, a person can legally prepare non-potentially
hazardous foods from their personal kitchens.
These foods can be sold on a small-scale to consumers- either directly or indirectly.
There are two levels of homemade food producers- Class A and Class B.
Sales are, for both classes, limited to an annual amount of $50,000.
California’s law allows cottage food operations to have only one non-family employee.
The below table, from ChangeLab Solutions, 2013, mentions Santa Clara County Cottage Food Permits
sales, requirements and fees for Class A and Class B:
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Allowed Sales
Examples
Permit Fee
Permit Requirements
Class A Permit: Direct Sales Only
Direct Sales: Selling
directly or “face-toface” with your
customers (no Fedex
or third party)
Direct Sales
Allowed Range:
Anywhere in
California
•
•
•
•
•
From home
Farmers’
market
Community
Supported
Agriculture
(CSA)
Holiday craft
fair
Online (must
deliver in
person)
$219/year
Plus $219/hr for
complaint inspection
or re-inspection
Additional fees
required for selling
at a certified
farmers’ market
($99/year) or a
public event such as
a bake sale, holiday
party, or festival
($99/event)
•
•
•
•
•
•
Permit Application
Documentation of Planning
Dept Approval
Certificate of complete Food
Handler/Processor Course
Sample Label
Proof of Potable Water onsite
Proof of Sanitary Sewage
Disposal
Class B Permit: Direct AND Indirect Sales
Same as above,
AND:
Indirect Sales:
Selling to other
businesses that will
then resell your
product to customers
Indirect Sales
Allowed Range:
Within the county
where the product
was made
Same as above, and:
• Retail food
stores
• Restaurants
• Other third
parties
(e.g., a
food truck,
day care
center, or
vending
machine
operator)
$635/year
Plus $219/hr for
complaint inspection
or re-inspection
Additional fees
required for selling
at a certified
farmers’ market
($99/year) or a
public event such as
a bake sale, holiday
party, or festival
($99/event)
•
•
•
•
•
•
•
Permit Application
Documentation of Planning
Dept Approval
Certificate of complete Food
Handler/Processor Course
Sample Label
Proof of Potable Water onsite
Proof of Sanitary Sewage
Disposal
Annual Onsite Inspection
Required
Figure 15: Table showing Class A & Class B Requirements
b) Operational Requirements for CFOs in Mountain View
The home bakery must operate in a structure, which is clearly primarily used as a residence.
There should be no modifications made that are not ordinarily found in a residence.
There should be no window or advertising sign on the premises.
The use shall not eliminate any parking for others.
Only one vehicle may be used- capacity no greater than ¾ of a ton.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
There should be no flammable, explosive or hazardous material stored.
Only odors, fumes, noises, smoke, and other secondary effects consistent with home food preparations
will be allowed.
The use shall not generate more than two deliveries per day.
Dining at the premises is prohibited (as part of the home food production business)
(MountainView.gov, 2013)
c) Legal Requirements
Standardized Kitchen Space: The at-home bakery must have a sanitized kitchen space. Pets and children
are only not allowed to be present in the kitchen during food production. The California Department of
Public Health must perform an inspection before start. If the kitchen space passes inspection, a license is
issued.
Baking Business License: All at-home bakeries must apply for a basic business license. It is possible to
use the owner's social security number and legal name and apply for a license from the local county's
clerk office.
Business Taxes: Taxes must also be filed using the owner's social security number even if it's a part time
business, as this counts as secondary income.
Food Handler Certification: It is necessary for the baker to get a food handler certification from the
California Department of Environment Health and Safety within three months of becoming registered.
(Demand Media, 2015)
d) Labeling
The label should include:
"Made in a Home Kitchen” in 12-point type.
The name commonly used for the food product.
The name of the cottage food operation, which produced the cottage food product.
The permit number (If “Class B”, also include the name of the county of the local enforcement agency
that issued the permit number.)
The ingredients, in descending order of weight
For non-labeled items that are served at a restaurant, café etc., the item should be properly identified as
homemade on the menu or menu board or any other prominent location.
(Wyshak, 2015)
e) Restrictions
As per the current law, there are a number of restrictions placed on operating a cottage food operation,
specifically a home bakery:
No cream filled, custard filled, cream topped or other baked goods that need to be refrigerated: This
excludes a large number of popular items such as cheesecakes, cream cheese frosted cakes etc.
Only $50,000 per year of annual sales: In the Bay Area, this may not be enough to live on, and can, as
such, be considered only as supplementary income.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Restricted number of deliveries: In Mountain View, a vehicle used for home bakeries can only be used
for 2 deliveries per day.
Conclusions
It is very clear that a home bakery must only use the primary residence's kitchen, and cannot use or rent
a commercial kitchen.
There does not seem to be a problem having a pet in the house, as long as the pet does not enter the
kitchen when production is going on.
However, as mentioned, the limited amount of annual sales allowed, as well as limited number of
deliveries, means it is not possible to earn enough to make a living in the expensive Bay Area.
It is also not possible to use a third-party delivery service, as the rules clearly mention that the deliveries
must be done in person.
One interesting thing was that, while frosting with cream, milk or cream cheese may not be used, it is
possible to use buttercream frosting or ganache without the addition of cream. This was added in an
amendment made in January 2015. As such, this increases the possibility of more attractive products that
can be sold, possibly whetting the interest of the audience.
Expenses are expected to start at $491 for the first year (not including cost of ingredients, utilities and
taxes)
Recommendations
1. As derived from research, it is recommended to open a Class A Cottage Food Operation. Registration is
cheaper than Class B, instructions are clear-cut, and the list of approved foods is unambiguous. It can be
switched to Class B, in the following year, if it's felt that sales aren't enough from just direct sales.
2. Obtain sellers permit.
3. Obtain business license
4. Buy packaging material and labels
5. Create website to promote products and take orders for deliveries. Additionally, explore other areas for
promotion. Actively promote products as being of highest quality, fresh and other high value
promotions.
6. Create plan for delivery where only deliveries over a certain price threshold will be undertaken.
7. Contact events' managers, farmer market organizers etc. to set up a stall and ensure distribution of free
samples at all events
8. Create a business and marketing plan for the year
9. Sell mini baked goods made from seasonal ingredients as the main product, but consider doing further
research into additional product lines that are not necessarily home baked goods.
10. Determine the pricing strategy which will allow most products to be in the $5-$10 range.
11. Constantly educate potential customers on safety measures taken, and benefits of buying from home
bakeries (supporting local, no artificial ingredients etc.)
12. Open the home bakery only as a source of supplementary income, as the revenue received will not likely
be enough to earn a living off of in the Bay Area.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Appendices
References
Forrager (2015). California. Retrieved from http://forrager.com/law/california/
ChangeLab Solutions (2013). New Food Rules For San Jose. Retrieved from http://healthtrust.org/wpcontent/uploads/2013/11/New_Food_Rules_San-Jose_FINAL_20130506-lo.pdf
MountainView.gov (2013). Cottage Food Operations Information. Retrieved from
http://mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=13383
Demand Media (2015). The Requirements for an At-Home Bakery Business in California. Retrieved from
http://smallbusiness.chron.com/requirements-athome-bakery-business-california-12444.html
California Department of Public Health (2015). Approved Cottage Foods. Retrieved from
http://www.cdph.ca.gov/programs/Documents/fdbCFOfoodslist.pdf
Wyshak. S. (2015). How to Start a Food Business in California With the Cottage Food Law. Retrieved from
http://foodstarter.com/how-to-start-a-food-business-in-california-with-the-cottage-foodlaw/#sthash.YCPUbqoJ.dpuf
Sohm, C. (2013). Starting A Cottage Food Operation in California. Retrieved from
http://cookieconnection.juliausher.com/fileSendAction/fcType/5/fcOid/353843618669134329/fodoid/35384361
8669134327/Starting%20A%20Cottage%20Food%20Operation%20in%20California.pdf
NRA (2015). Culinary Forecast. Retrieved from
http://www.iddba.org/pdfs/wis/NRA%20What%27s%20Hot%202015%20-%20Top%20Food%20Trends.pdf
Demand Media (2015). List of Items Needed to Start a Small Bakery. Retrieved from
http://smallbusiness.chron.com/list-items-needed-start-small-bakery-21051.html
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Questions For Home Bakers' Survey
Hi, I'd love if you could take 5-10 minutes to answer a quick survey on operating a home bakery according to
the California Homemade Food Act. It's for my Market Research class at UCSC Silicon Valley Extension. I
promise the results are confidential. Thanks!
Q2
Do you run a home bakery (according to Cottage Food Operations regulations) in the Bay Area?
Yes
No
If No Is Selected, Then Skip To End of Survey Skip Logic
Q3
What kind of baked food products do you sell? (Check all that apply)
Sweet Items (desserts, cookies etc.)
Savory Items (vegetable muffins, breads, empanadas etc.)
Other:
Q4
How long has your home bakery been operational?
Less than a month
1 month - 3 months
4 months - 6 months
7 months - 1 year
Longer than a year
If Less than a month Is Selected, Then Skip To End of Survey Skip Logic
Q5
According to the CFO regulations in California, the revenue limit is $50,000 annually. Do you believe this is:
Very Low
Somewhat Low
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Just right
Somewhat High
Very High
If Somewhat High Is Selected, Then Skip To Do you believe the amount you earn
fr...
If Very High Is Selected, Then Skip To Do you believe the amount you earn fr...
Skip
Logic
Skip
Logic
Q6
How likely is it that you will reach the revenue max of $50,000 this year?
Very Unlikely
Somewhat unlikely
Undecided
Somewhat Likely
Very Likely
Q7
Display This Question:
If How likely is it that you will reach the revenue max of $50,000 this year? Very
Unlikely Is Selected
Or How likely is it that you will reach the revenue max of $50,000 this year? Somewhat
unlikely IsSelected
Why do you think it isn’t possible to hit this limit? (Check All That Apply)
Restricted delivery
Restricted product line (no unrefrigerated items, no uncooked dairy etc.)
Competition from commercial bakeries
Small scale production
Other:
Q8
Do you believe the amount you earn from your home bakery is sufficient to live off of as your main source of
income?
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Yes
No
Q9
Do you think you need another job to supplement this income?
Yes
No
Q10
What will be your next step?
Discontinue the home bakery
Continue as a home bakery
Open a commercial kitchen
Explore other products as a cottage food operation
Other:
Q11
What else would you like to share about your experience in operating a home-based bakery?
July 2015
20
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Results For Home Bakers' Survey
1. Do you run a home bakery (according to Cottage Food Operations regulations) in the Bay Area?
#
Answer
Response
%
1
Yes
15
38%
2
No
25
63%
Total
40
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
2. What kind of baked food products do you sell? (Check all that apply)
#
Answer
Sweet Items
1
(desserts,
cookies etc.)
Savory Items
(vegetable
2
muffins, breads,
empanadas etc.)
3
Other:
Value
1
2
1.63
0.24
0.49
40
Response
%
12
80%
2
13%
1
7%
Other:
custom cakes
Statistic
Min Value
Max Value
Total Responses
July 2015
Value
1
3
15
21
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
3. How long has your home bakery been operational?
#
Answer
Less than a
1
month
1 month - 3
2
months
4 months - 6
3
months
7 months - 1
4
year
Longer than a
5
year
Total
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
Response
%
0
0%
2
13%
1
7%
1
7%
11
73%
15
100%
Value
2
5
4.40
1.26
1.12
15
4. According to the CFO regulations in California, the revenue limit is $50,000 annually. Do you believe
this is:
#
Answer
Response
%
1
Very Low
3
20%
2
Somewhat Low
4
27%
3
Just right
6
40%
4
Somewhat High
1
7%
5
Very High
1
7%
Total
15
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
July 2015
Value
1
5
2.53
1.27
1.13
15
22
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
5. How likely is it that you will reach the revenue max of $50,000 this year?
#
Answer
Response
1
Very Unlikely
9
Somewhat
2
1
unlikely
3
Undecided
1
Somewhat
4
0
Likely
5
Very Likely
2
Total
13
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
%
69%
8%
8%
0%
15%
100%
Value
1
5
1.85
2.31
1.52
13
6. Why do you think it isn’t possible to hit this limit? (Check All That Apply)
#
Answer
Response
Restricted
1
4
delivery
Restricted
product line (no
unrefrigerated
2
1
items, no
uncooked dairy
etc.)
Competition
from
3
1
commercial
bakeries
Small scale
4
7
production
5
Other:
3
%
40%
10%
10%
70%
30%
Other:
this is side business for me and I don't have enough hours in the day.
The time that it takes to make decorated cookies does not allow for huge revenue. It's great for
supplemental income and doing what I want with my time, but much too time consuming to try
to make big money. I'm doing what I love and that's what matters to me at this point.
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Statistic
Min Value
Max Value
Total Responses
Value
1
5
10
7. Do you believe the amount you earn from your home bakery is sufficient to live off of as your main
source of income?
#
Answer
Response
%
1
Yes
0
0%
2
No
15
100%
Total
15
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
8. Do you think you need another job to supplement this income?
#
Answer
1
Yes
2
No
Total
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
July 2015
Value
2
2
2.00
0.00
0.00
15
Response
13
2
15
%
87%
13%
100%
Value
1
2
1.13
0.12
0.35
15
24
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
9. What will be your next step?
#
Answer
Discontinue the
1
home bakery
Continue as a
2
home bakery
Open a
3
commercial
kitchen
Explore other
products as a
4
cottage food
operation
5
Other:
Total
Response
%
0
0%
11
73%
2
13%
1
7%
1
15
7%
100%
Other:
still deciding
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
July 2015
Value
2
5
2.47
0.84
0.92
15
25
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
10. What else would you like to share about your experience in operating a home-based bakery?
Text Response
nothing
n/a
You must select a profitable product, otherwise it is a waist of time, money and energy.
Over regulation is killing me. The gross sales cap is horrible and makes it ridiculously difficult
to make a wage and invest in my growth as a business. Thanks for the survey.
It is hard work. It takes a toll on both your body and emotions.
.
I like being able to operate at my own pace, at my own hours, but it would be nice to be able to
ship my product without a Class B license.
The taxes and fees in California are incredibly high and daunting to many people. Other areas of
California are more manageable but in the Bay Area, it is $219 for a Class A CFO permit and
over $600 for a Class B permit, plus $233 City of San Jose zoning, $151 business tax certificate,
$800 LLC fee and $223 insurance on my company. You have to really love what you do to pay
this kind of yearly taxes and fees to sell some homemade decorated cookies! I'm very happy that
the CFO bill passed and my customers are very thankful for my business, but in other counties of
California, the fees are much more manageable in support of small businesses.
Nothing
Recently we contacted the state dept of health to add merengue powder to an approved list of
ingredients. It's a pasteurized product and therefore safe to use vs. egg white when making royal
icing. They would not approve it which stalls our business operations. I ran circles around the
argument citing zero incidents of food poisoning, the food safe handling training we are required
to take (which means we know how to safely handle the product). There was no good
explanation provided so I felt they we untrained on their end.
provides great opportunity to give business ideas a try without prohibitively high financial
investment
health dept needs to crack down on all illegal businesses - auto, food, etc.
I decorate cookies and do it for enjoyment more than to make a lot of money.
I view it as a way to make a little money off a passion/hobby
Statistic
Total Responses
July 2015
Value
14
26
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Questions for Consumers Survey
Hi, I'd love if you could take 10-15 minutes to answer this quick survey that will help me figure out the buying
habits of consumers when purchasing baked food products. It's for my Market Research class at UCSC Silicon
Valley Extension. I promise the results are confidential. Thanks!
Q2
1.
Where do you live?
San Francisco Bay Area, CA
New York City, NY
Austin, TX
Boston, MA
Las Vegas, NV
Other:
If New York City, NY Is Selected, Then Skip To End of Survey Skip Logic
If Austin, TX Is Selected, Then Skip To End of Survey
Skip Logic
If Boston, MA Is Selected, Then Skip To End of Survey
Skip Logic
If Las Vegas, NV Is Selected, Then Skip To End of Survey
Skip Logic
If Other: Is Selected, Then Skip To End of Survey
Skip Logic
Q3
Which Bay Area County are you from?
Alameda County
Contra Costa County
Marin County
Napa County
San Francisco County
San Mateo County
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Santa Clara County
Solano County
Sonoma County
Other:
If Contra Costa County Is Selected, Then Skip To End of Survey Skip Logic
If Marin County Is Selected, Then Skip To End of Survey
Skip Logic
If Napa County Is Selected, Then Skip To End of Survey
Skip Logic
If Solano County Is Selected, Then Skip To End of Survey
Skip Logic
If Sonoma County Is Selected, Then Skip To End of Survey
Skip Logic
If Other: Is Selected, Then Skip To End of Survey
Skip Logic
Q4
How often do you buy baked food items such as cakes, cookies, tarts, breads etc.?
Never
Rarely
Sometimes
Somewhat Often
Very Often
If Never Is Selected, Then Skip To End of Survey Skip Logic
If Rarely Is Selected, Then Skip To End of Survey Skip Logic
Q5
Please rate on a scale how important are the following options to you when buying baked goods
July 2015
28
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Not at all
Important
Somewhat
Unimportant
Neither
Important nor
Unimportant
Somewhat
Important
Very
Important
Taste
Health Certifications
How it Looks
Price
Food Allergies
Q6
Display This Question:
If Please rate on a scale how important are the following options to you when buying baked
goods Food Allergies - Somewhat Important Is Selected Edit
Or Please rate on a scale how important are the following options to you when buying baked
goods Food Allergies - Very Important Is Selected Edit
What food allergies do you consider when buying baked goods?
Q7
How often do you buy baked goods from the following?
Never
Rarely
Sometimes
Somewhat Very
Often
Often
Commercial
Bakery
Retail
Stores/Grocery
Stores
Home
Bakeries
If Home Bakeries - Somewhat Often Is Selected, Then Skip To How
likely are you to buy each of the...
Skip
Logic
If Home Bakeries - Very Often Is Selected, Then Skip To How likely are Skip
you to buy each of the...
Logic
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Never
Rarely
Sometimes
Somewhat Very
Often
Often
Q8
If a home bakery (operating under the California Homemade Food Act which allows home kitchens to make
and sell non-potentially hazardous foods) opened up near your house, how likely would you be to purchase
from them?
Very Unlikely
Somewhat Unlikely
Neither Likely or Unlikely
Somewhat Likely
Very Likely
If Very Unlikely Is Selected, Then Skip To Why would you not purchase from a
hom...
Skip
Logic
If Somewhat Unlikely Is Selected, Then Skip To Why would you not purchase from Skip
a hom...
Logic
Q9
For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot sell items with
uncooked cream, milk and cream cheese or any other items that need to be refrigerated. Given that, would you
still consider purchasing from them?
Definitely will not
Probably will not
Don't know
Probably will
Definitely will
Q10
Display This Question:
If For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot
sell...Definitely will not Is Selected Edit
Or For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot
sell...Probably will not Is Selected Edit
July 2015
30
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Why not?
If Why not? Is Not Empty, Then Skip To Is there anything else you would like... Skip Logic
Q11
How likely are you to buy each of the following types of items from a home bakery?
Neither
Somewhat
Likely Nor
Somewhat
Very Unlikely
Unlikely
Unlikely
Likely
Very Likely
Mini Baked Goods with
Seasonal Ingredients
Gluten Free Baked Goods
Baked Goods Made From
Locally Sourced Ingredients
Q18
Display This Question:
If How likely are you to buy each of the following types of items from a home bakery? Mini
Baked Goods with Seasonal Ingredients - Very Unlikely Is Selected Edit
Or How likely are you to buy each of the following types of items from a home bakery? Mini
Baked Goods with Seasonal Ingredients - Somewhat Unlikely Is Selected Edit
Why would you not purchase mini baked goods made with seasonal ingredients?
Q20
Display This Question:
If How likely are you to buy each of the following types of items from a home bakery? Gluten
Free Baked Goods - Very Unlikely Is Selected Edit
Or How likely are you to buy each of the following types of items from a home bakery? Gluten
Free Baked Goods - Somewhat Unlikely Is Selected Edit
Why would you not purchase gluten free baked goods?
Q21
July 2015
31
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Display This Question:
If How likely are you to buy each of the following types of items from a home bakery? Baked
Goods Made From Locally Sourced Ingredients - Very Unlikely Is Selected Edit
Or How likely are you to buy each of the following types of items from a home bakery? Baked
Goods Made From Locally Sourced Ingredients - Somewhat Unlikely Is Selected Edit
Why would you not purchase baked goods made from locally sourced ingredients?
Q12
How much are you willing to pay for home baked products such as a dozen cookies or a slice of cake?
Less than $5
$5-$10
Over $10
Q13
How important is it that you get to taste samples before you purchase a baked product?
Not at all Important
Somewhat Unimportant
Neither Important nor Unimportant
Somewhat Important
Very Important
Q14
In order of preference, rank how you would like to receive/buy baked goods from a home bakery
1
2
3
Pick up from residential location of home kitchen
Farmers markets/events
Home delivery
Q15
Display This Question:
If If a home bakery (operating under the California Homemade Food Act which allows home
kitchens to... Very Unlikely Is Selected Edit
Or If a home bakery (operating under the California Homemade Food Act which allows home
kitchens to...Somewhat Unlikely Is Selected Edit
Why would you not purchase from a home bakery? (Check all that apply)
I do not trust the products being prepared at a home kitchen
July 2015
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Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
I'm unsure on how often health and safety checks are done on home kitchens
Limited choice of baked goods (no refrigerated items)
Smaller scale of production
Do not know of any/haven't tried any
Need more information
Other:
Q16
Is there anything else you would like to share about your feelings about home-based bakeries/baked goods?
July 2015
33
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Results For Consumers' Survey
1.
1.
Where do you live?
#
Answer
San Francisco
1
Bay Area, CA
New York City,
2
NY
3
Austin, TX
4
Boston, MA
5
Las Vegas, NV
6
Other:
Total
Response
%
51
91%
0
0%
0
0
0
5
56
0%
0%
0%
9%
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
2. Which Bay Area County are you from?
#
Answer
Alameda
1
County
Contra Costa
2
County
3
Marin County
4
Napa County
San Francisco
5
County
San Mateo
6
County
Santa Clara
7
County
8
Solano County
9
Sonoma County
10
Other:
Total
July 2015
Value
1
6
1.45
2.07
1.44
56
Response
%
4
8%
0
0%
0
0
0%
0%
3
6%
6
12%
35
69%
0
1
2
51
0%
2%
4%
100%
34
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Other:
Santa Cruz ci
Sunnyvale
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
Value
1
10
6.45
3.37
1.84
51
3. How often do you buy baked food items such as cakes, cookies, tarts, breads etc.?
#
Answer
Response
1
Never
0
2
Rarely
10
3
Sometimes
14
Somewhat
4
15
Often
5
Very Often
9
Total
48
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
July 2015
%
0%
21%
29%
31%
19%
100%
Value
2
5
3.48
1.06
1.03
48
35
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
4. Please rate on a scale how important are the following options to you when buying baked goods
Neither
Not at all
Somewhat
Important
Somewhat
Very
Total
#
Question
Mean
Important Unimportant
nor
Important Important Responses
Unimportant
1
Taste
0.00%
0.00%
0.00%
5.41%
94.59%
37
4.95
Health
2
16.22%
8.11%
16.22%
27.03%
32.43%
37
3.51
Certifications
How it
3
2.70%
2.70%
2.70%
40.54%
51.35%
37
4.35
Looks
4
Price
2.70%
16.22%
8.11%
62.16%
10.81%
37
3.62
Food
5
48.65%
5.41%
13.51%
10.81%
21.62%
37
2.51
Allergies
5. What food allergies do you consider when buying baked goods?
Text Response
Gluten
Oral, skin rashes
Nut
Peanuts
Nothing Specific
nuts
No allergies, otherwise nuts or gluten
Gluten
All i know off
shellfish
Nonr
Statistic
Total Responses
Value
11
6. How often do you buy baked goods from the following?
#
1
2
3
July 2015
Question
Commercial
Bakery
Retail
Stores/Grocery
Stores
Home
Bakeries
Never
Rarely
Sometimes
Somewhat
Often
Very
Often
Total
Responses
Mean
11.11%
19.44%
30.56%
19.44%
19.44%
36
3.17
2.78%
11.11%
25.00%
16.67%
44.44%
36
3.89
27.78%
36.11%
25.00%
8.33%
2.78%
36
2.22
36
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
Commercial Bakery
1
5
3.17
1.63
1.28
36
Retail Stores/Grocery
Stores
1
5
3.89
1.42
1.19
36
Home Bakeries
1
5
2.22
1.09
1.05
36
7. If a home bakery (operating under the California Homemade Food Act which allows home kitchens to
make and sell non-potentially hazardous foods) opened up near your house, how likely would you be to
purchase from them?
#
Answer
Response
%
1
Very Unlikely
0
0%
Somewhat
2
4
13%
Unlikely
Neither Likely
3
3
10%
or Unlikely
Somewhat
4
16
52%
Likely
5
Very Likely
8
26%
Total
31
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
July 2015
Value
2
5
3.90
0.89
0.94
31
37
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
8. For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot sell
items with uncooked cream, milk and cream cheese or any other items that need to be refrigerated. Given
that, would you still consider purchasing from them?
#
Answer
Response
%
Definitely will
1
1
4%
not
Probably will
2
1
4%
not
3
Don't know
9
35%
4
Probably will
12
46%
5
Definitely will
3
12%
Total
26
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
Value
1
5
3.58
0.81
0.90
26
9. Why not?
Text Response
Need to know items are stored in required temperature
Heath hazard
Statistic
Total Responses
July 2015
Value
2
38
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
10. How likely are you to buy each of the following types of items from a home bakery?
Neither
Very
Somewhat Likely Somewhat
Very
Total
#
Question
Unlikely Unlikely
Nor
Likely
Likely Responses
Unlikely
Mini
Baked
Goods
1
3.57%
0.00%
10.71%
39.29%
46.43%
28
with
Seasonal
Ingredients
Gluten
Free
2
25.00%
3.57%
32.14%
17.86%
21.43%
28
Baked
Goods
Baked
Goods
Made
3
From
0.00%
3.57%
17.86%
46.43%
32.14%
28
Locally
Sourced
Ingredients
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
Mini Baked Goods
with Seasonal
Ingredients
1
5
4.25
0.86
0.93
28
Gluten Free Baked
Goods
1
5
3.07
2.14
1.46
28
Mean
4.25
3.07
4.07
Baked Goods Made
From Locally Sourced
Ingredients
2
5
4.07
0.66
0.81
28
11. Why would you not purchase mini baked goods made with seasonal ingredients?
Text Response
sounds like something I'd make myself
Statistic
Total Responses
July 2015
Value
1
39
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
12. Why would you not purchase gluten free baked goods?
Text Response
Not allergic to Gluten or averse to Gluten food
not allergic to gluten
gluten is the best
I have no reason to avoid gluten
Don't need them
The whole fad is stupid
It is not a problem for me
It's not important to me
Statistic
Total Responses
Value
8
13. Why would you not purchase baked goods made from locally sourced ingredients?
Text Response
Depends on the quality of the bakery and the bakery items they are selling
Statistic
Total Responses
Value
1
14. How much are you willing to pay for home baked products such as a dozen cookies or a slice of cake?
#
Answer
Response
%
1
Less than $5
12
43%
2
$5-$10
15
54%
3
Over $10
1
4%
Total
28
100%
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
July 2015
Value
1
3
1.61
0.32
0.57
28
40
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
15. How important is it that you get to taste samples before you purchase a baked product?
#
Answer
Response
Not at all
1
1
Important
Somewhat
2
4
Unimportant
Neither
3
Important nor
5
Unimportant
Somewhat
4
13
Important
5
Very Important
5
Total
28
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
%
4%
14%
18%
46%
18%
100%
Value
1
5
3.61
1.14
1.07
28
16. In order of preference, rank how you would like to receive/buy baked goods from a home bakery
Total
#
Answer
1
2
3
Responses
Pick up from
residential
1
21.43%
50.00%
28.57%
28
location of
home kitchen
Farmers
2
32.14%
21.43%
46.43%
28
markets/events
3
Home delivery
46.43%
28.57%
25.00%
28
Total
28
28
28
-
July 2015
41
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
Statistic
Min Value
Max Value
Mean
Variance
Standard Deviation
Total Responses
Pick up from
residential location of
home kitchen
1
3
2.07
0.51
0.72
28
Farmers
markets/events
Home delivery
1
3
2.14
0.79
0.89
28
1
3
1.79
0.69
0.83
28
17. Why would you not purchase from a home bakery? (Check all that apply)
#
Answer
Response
I do not trust the
products being
1
1
prepared at a
home kitchen
I'm unsure on
how often health
and safety
2
3
checks are done
on home
kitchens
Limited choice
of baked goods
3
0
(no refrigerated
items)
Smaller scale of
4
0
production
Do not know of
5
any/haven't tried
1
any
Need more
6
2
information
7
Other:
0
%
25%
75%
0%
0%
25%
50%
0%
Other:
Statistic
Min Value
Max Value
Total Responses
July 2015
Value
1
6
4
42
Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest
18. Is there anything else you would like to share about your feelings about home-based bakeries/baked
goods?
Text Response
Personalize cakes / baked items and also target mothers (birthday cakes)
There should be more!
Always go to bakeries who have an established presence and consistent quality, difficult to leave
your old bakery for a new one
Kitchen should be clean
No
A good word of mouth is what would make me go for home based baked goods
Chow yums!
no
None
I would be concerned about safety.
no
no
Nope
Prefer healthy choices
No
No
support home based bakeries
Just that I support the idea
Pls open one!
I also buy them at the coffee shop
Good variety and competitive pricing is what a consumer looks for
No
No
Thanks
I love your cookies Sohna. I would surely buy them at any price
No
The cost might be high
it should be whole wheat
N/a
No
No
no
cost
no
Statistic
Total Responses
July 2015
Value
34
43
Secondary Research Report:
Opening A Home Bakery In The Bay Area:
Laws, Requirements, Financial Viability and
Potential Interest
By
XXXX
UCSC Silicon Valley Extension
2
Table of Contents:
Objective & Hypothesis……………………………………………………….............3
Background……………………………………………………………………………3
The Law………………………………………………………………………………..3
Operational Requirements for CFOs.…………………………………………..……...5
Legal Requirements……………………………………………………………………5
Approved Food Products List (as of January 2, 2015)………………………………...5
Labeling………………………………………………………………………………..6
Expenses……………………………………………………………………………….6
Equipment Required…………………………………………………………………...6
Product and Target Audience Considerations…………………………………………7
Restrictions…………………………………………………………………………….7
Conclusions……………………………………………………………………………8
Recommendations……………………………………………………………………..8
Remaining Research Needs……………………………………………………………8
References………………..……………………………………………………………9
3
Objective & Hypothesis:
My objective is to understand how to go about opening a home bakery in Mountain
View in the Santa Clara County under the California Homemade Food Act. I would
like to learn what the requirements are, the level of interest consumers have in
purchasing from a home bakery, and whether it's possible to earn a living from the
revenue received.
My hypothesis is that a home bakery cannot be considered as a main source of
income, only supplementary, as it isn't possible to generate enough sales and earn
enough profit to make a living.
Background:
With the introduction of the California Homemade Food Act in 2013, it is now
possible to manufacture and sell a limited amount of homemade foods. Home cooks
can make what are considered “low-risk foods” from within their home kitchens. A
home can include houses and apartments, owned or rented. These enterprises are
termed as “Cottage Food Operations" (CFO).
While my professional career has always been in Search Engine Marketing, I would
love to bake professionally as well. However, the investment needed for a full-scale
operation, such as a bakery, is too risky, and not possible at this stage in my life.
Baking from home to test the waters, and supplement our income is the perfect
alternative.
From what I understand, there are a limited amount of items that can be sold, i.e.,
items that do not require refrigeration. This means cakes with frostings, which are
very popular, cannot be sold, which will probably affect revenue and profit.
In addition, I understand that dogs are not allowed in the kitchen. I have a dog, and
will be interested in learning how to work with this, and whether it might be better
exploring a commercial kitchen space instead.
Besides those limitations, I am curious to understand whether people would prefer to
buy foods from an established bakery in-store or a retail outlet as opposed to a home
baker. Would they consider it risky since they can’t quite be assured of the same type
of quality and reputation? They cannot also buy anything that needs refrigeration, so
would that be a distinct disadvantage? Also, how much would they be willing to pay
for home baked products?
In addition, as mentioned, my hypothesis is that isn’t possible to live off the income
received from a home bakery. I would like to explore this further by surveying people
who have started their own home bakeries in California, and understand what their
experiences have been.
The Law:
The law that governs home food preparation businesses comes under the purview of
Cottage Food Laws. These laws allow a person to legally prepare non-potentially
hazardous foods from their personal kitchens. These foods can be sold on a smallscale to consumers- either directly or indirectly.
The California Homemade Food Act (AB 1616) was passed in California on
September 21st, 2012, and went into effect on January 1st, 2013. According to this
law, there are two levels of homemade food producers- Class A and Class B
(Forrager, 2015).
The below table, from ChangeLab Solutions, 2013, mentions Santa Clara County
Cottage Food Permits for Class A and Class B:
4
Allowed
Sales
Examples
Permit Fee
Permit Requirements
Class A Permit: Direct Sales Only
Direct Sales:
Selling
directly or
“face-toface” with
your
customers
(no Fedex or
third party)
Direct Sales
Allowed
Range:
Anywhere in
California
•
•
•
•
•
$219/year
Plus $219/hr
for complaint
From home
inspection or
Farmers’
re-inspection
market
Additional
Community fees required
Supported for selling at
Agriculture a certified
(CSA)
farmers’
Holiday craft market
fair
($99/year) or
Online (must a public event
deliver in
such as a
person)
bake sale,
holiday party,
or festival
($99/event)
•
•
•
•
•
•
Permit Application
Documentation of
Planning Dept
Approval
Certificate of
complete Food
Handler/Processor
Course
Sample Label
Proof of Potable
Water onsite
Proof of Sanitary
Sewage Disposal
Class B Permit: Direct AND Indirect Sales
Same as
above, AND:
Indirect
Sales: Selling
to other
businesses
that will then
resell your
product to
customers
Indirect Sales
Allowed
Range:
Within the
county where
the product
was made
Same as above, and:
• Retail food
stores
• Restaurants
• Other third
parties
(e.g., a
food truck,
day care
center, or
vending
machine
operator)
$635/year
Plus $219/hr
for complaint
inspection or
re-inspection
Additional
fees required
for selling at
a certified
farmers’
market
($99/year) or
a public event
such as a
bake sale,
holiday party,
or festival
($99/event)
•
•
•
•
•
•
•
Permit Application
Documentation of
Planning Dept
Approval
Certificate of
complete Food
Handler/Processor
Course
Sample Label
Proof of Potable
Water onsite
Proof of Sanitary
Sewage Disposal
Annual Onsite
Inspection Required
It is important to note that sales are, for both classes, limited to an annual amount of
$50,000. Another important rule to take note of is that California’s law allows cottage
food operations to have only one non-family employee (Forrager, 2015).
5
Operational Requirements for CFOs in Mountain View:
1. The home bakery must operate in a structure, which is clearly primarily used
as a residence.
2. There should be no modifications made that are not ordinarily found in a
residence.
3. There should be no window or advertising sign on the premises.
4. The use shall not eliminate any parking for others.
5. Only one vehicle may be used- capacity no greater than ¾ of a ton.
6. There should be no flammable, explosive or hazardous material stored.
7. Only odors, fumes, noises, smoke, and other secondary effects consistent with
home food preparations will be allowed.
8. The use shall not have more than two deliveries per day.
9. Dining at the premises is prohibited (as part of the home food production
business)
(MountainView.gov, 2013)
Legal Requirements:
1. Standardized Kitchen Space: The at-home bakery must have a sanitized
kitchen space. Pets and children are only not allowed to be present in the
kitchen during food production. The California Department of Public Health
must perform an inspection before start. If the kitchen space passes inspection,
a license is issued.
2. Baking Business License: All at-home bakeries must apply for a basic
business license. It is possible to use the owner's social security number and
legal name and apply for a license from the local county's clerk office.
3. Business Taxes: Taxes must also be filed using the owner's social security
number even if it's a part time business, as this counts as secondary income.
4. Food Handler Certification: It is necessary for the baker to get a food handler
certification from the California Department of Environment Health and
Safety within three months of becoming registered.
(Demand Media, 2015)
Approved Food Products List (as of January 2, 2015):
Baked goods,
without cream,
custard, or meat
fillings
Dried pasta
Herb blends and
dried mole paste
Popcorn
Cotton candy
Candy
Chocolate covered
non-perishable
foods
Dried fruit
Dry baking mixes
Fruit pies
Honey and sweet
sorghum syrup
Vinegar and
mustard
Candied apples
Jams, jellies,
preserves
Roasted coffee and
dried tea
Confections such as
salted caramel,
fudge,
marshmallow bars,
Granola, cereals,
and trail mixes
Nut mixes and nut
butters
Waffle cones and
pizelles
Buttercream
frosting,
buttercream icing,
buttercream
6
Dried or
Dehydrated
vegetables
Seasoning salt
Dried vegetarian
based soup mixes
Flat icing
chocolate covered
marshmallow, nuts,
and hard candy, or
any combination
thereof
Vegetable and
potato chips
Marshmallows that
do not contain eggs
(California Department of Public Health, 2015)
fondant, and gum
paste that do not
contain eggs,
cream, or cream
cheese
Ground chocolate
Popcorn balls
Labeling:
The label should include:
1. "Made in a Home Kitchen” in 12-point type.
2. The name commonly used for the food product.
3. The name of the cottage food operation, which produced the cottage food
product.
4. The permit number (If “Class B”, also include the name of the county of the
local enforcement agency that issued the permit number.)
5. The ingredients, in descending order of weight
For non-labeled items that are served at a restaurant, café etc., the item should be
properly identified as homemade on the menu or menu board or any other prominent
location. (Wyshak, 2015)
Expenses:
For a home bakery in Mountain View, the following expenses may occur, according
to Cristin Sohm of Cristin’s Cookies, 2013, and MountainView.gov, 2013:
1. Food Handlers Training and Certificate: $13
2. Product food labels: $30-$289 (Various websites)
3. Cottage Food Operation Permit: $219 for Class A & $635 for Class B
4. Business License: The City of Mountain View business license costs $30, plus
a required State fee of $1 per year
5. Sellers Permit: Free to apply online through the State of California Board of
Equalization.
6. Insurance: Starting at $299 per year (https://www.fliprogram.com/cottagefood-law-insurance)
7. Taxes (federal and state): Varies
Equipment Required:
1. Oven: Existing one in kitchen can be used.
2. Refrigerator: Existing one to be used.
3. Proof Box: Home cook's proof box can be used at a cost of $150-$160.
4. Baking sheets, cake tins, muffin tin, mini molds and racks: Depending on how
much baking to be done and demand. Existing ones to be used initially.
5. Mixers: Three existing ones to be used.
6. Work Tables: Existing work space to be used.
7. Miscellaneous: Utensils, papers, tools etc.
(Demand Media, 2015)
7
Product and Target Audience Considerations:
Since a home bakery, as per the California Food Act, can only sell within California,
and must make 'face-to-face' direct deliveries, the target audience must be only
focused on residents and events within a relatively close driving distance of Mountain
View. Consumers must also have the ability to purchase online or in person.
It will be useful to determine what product is most likely to be successful based on a
survey of potential consumers. According to The National Restaurant Association's
(NRA) 'What's Hot in 2015' survey conducted in 2014, the graph below shows a quick
snapshot of products that can be considered. The NRA conducted an online survey of
1276 members of the American Culinary Federation by asking them to rate 231 items
as hot trends, yesterday's news and perennial favorites.
The below items consider trends and foods that can be utilized or prepared in home
bakeries, and are considered hot trends and not passé.
As per this survey, based on the above graph as well as preferences when I've baked,
the following products can be considered:
1. Mini-Desserts: It's preferable to consider local and seasonal produce for baking
mini-pies, bars, cakes, cookies and tarts that need not be refrigerated.
2. Gluten-Free Cuisine: This has been considered a perennial favorite since 2009, and
while there is an increase in people thinking it's yesterday's news, it is still popular.
Regular flour can be replaced with coconut flour or other options and more flourless
items can be prepared.
3. All-Natural, Locally Sourced Cakes & Bakes: This means preparing baked goods
from all-natural ingredients and no preservatives as well as ensuring ingredients are
purchased from local sources such as farmers markets. Thus, the products will be
most likely seasonal baked goods, and the availability will change as per what is
available in the market.
Restrictions:
As per the current law, there are a number of restrictions placed on operating a
cottage food operation, specifically a home bakery:
8
1. No cream filled, custard filled, cream topped or other baked goods that need to
be refrigerated: This excludes a large number of popular items such as
cheesecakes, cream cheese frosted cakes etc.
2. Only $50,000 per year of annual sales: In the Bay Area, this may not be
enough to live on, and can, as such, be considered only as supplementary
income.
3. Restricted number of deliveries: In Mountain View, a vehicle used for home
bakeries can only be used for 2 deliveries per day.
Conclusions:
As derived from my preliminary research, it seems a very straightforward process to
open a Class A Cottage Food Operation. Registration is cheaper than Class B,
instructions are clear-cut, and the list of approved foods is unambiguous. It is also
very clear that a home bakery must only use the primary residence's kitchen, and
cannot use or rent a commercial kitchen. There also does not seem to be a problem
having a pet in the house, as long as the pet does not enter the kitchen when
production is going on.
However, as mentioned, the limited amount of annual sales allowed, as well as
limited number of deliveries, means it is not possible to earn enough to make a living
in the expensive Bay Area. It is also not possible to use a third-party delivery service,
as the rules clearly mention that the deliveries must be done in person. This supports
my hypothesis that income from a home bakery can only be used as supplementary
income.
I have not been able to find enough information on whether the restricted food items,
as well as fewer health checks, make purchasing from home bakeries less appealing
for consumers. One interesting thing I learned was that, while frosting with cream,
milk or cream cheese may not be used, it is possible to use buttercream frosting or
ganache without the addition of cream. This was added in an amendment made in
January 2015. As such, this increases the possibility of more attractive products that
can be sold, possibly whetting the interest of the audience.
Recommendations:
1. Decide what product or products to be sold based on trend list above and
survey of target audience.
1. Apply for Class A permit: It is cheaper, and a good starting point to test
waters. It can be switched to Class B, in the following year, if it's felt that
sales aren't enough from just direct sales.
2. Obtain sellers permit.
3. Obtain business license
4. Buy packaging material and labels
5. Create website to promote products and take orders for deliveries.
Additionally, explore other areas for promotion.
6. Contact events' managers, farmer market organizers etc. to set up a stall
7. Create a business and marketing plan for the year
Remaining Research Needs:
Secondary research was not easily available to determine the level of interest
consumers have for buying products for home bakeries. As such, a survey of Bay
Area residents might help to determine this, and other factors such as deliveries and
preferred products.
9
In addition, while it was easy to understand the limits on revenue, it wasn't easy to
find statistics on how much a home bakery usually earns, and whether they even hit
the limit, or if that is an unusual occurrence. Surveying people who have opened a
home bakery in the Bay Area, and understanding the ballpark figure they make as
well as any other difficulties faced will be helpful.
References:
Forrager (2015). California. Retrieved from http://forrager.com/law/california/
ChangeLab Solutions (2013). New Food Rules For San Jose. Retrieved from
http://healthtrust.org/wp-content/uploads/2013/11/New_Food_Rules_SanJose_FINAL_20130506-lo.pdf
MountainView.gov (2013). Cottage Food Operations Information. Retrieved from
http://mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=13383
Demand Media (2015). The Requirements for an At-Home Bakery Business in
California. Retrieved from http://smallbusiness.chron.com/requirements-athomebakery-business-california-12444.html
California Department of Public Health (2015). Approved Cottage Foods. Retrieved
from http://www.cdph.ca.gov/programs/Documents/fdbCFOfoodslist.pdf
Wyshak. S. (2015). How to Start a Food Business in California With the Cottage
Food Law. Retrieved from http://foodstarter.com/how-to-start-a-food-business-incalifornia-with-the-cottage-food-law/#sthash.YCPUbqoJ.dpuf
Sohm, C. (2013). Starting A Cottage Food Operation in California. Retrieved from
http://cookieconnection.juliausher.com/fileSendAction/fcType/5/fcOid/35384361866
9134329/fodoid/353843618669134327/Starting%20A%20Cottage%20Food%20Oper
ation%20in%20California.pdf
NRA (2015). Culinary Forecast. Retrieved from
http://www.iddba.org/pdfs/wis/NRA%20What%27s%20Hot%202015%20%20Top%20Food%20Trends.pdf
Demand Media (2015). List of Items Needed to Start a Small Bakery. Retrieved from
http://smallbusiness.chron.com/list-items-needed-start-small-bakery-21051.html
預設報告
How Samsung has been successful in Android world
June 15th 2017, 5:21 am MDT
Q1 - Do you have an Android operating system smartphone?
#
Answer
%
Count
1
Yes
55.56%
15
2
No
44.44%
12
Total
100%
27
Q2 - Please specify your gender:
#
Answer
%
Count
1
Male
60.00%
9
2
Female
40.00%
6
3
Prefer not to answer
0.00%
0
Total
100%
15
Q3 - Please specify your age:
#
Answer
%
Count
1
17 years or under
6.67%
1
2
18~24 years old
20.00%
3
3
25~34 years old
46.67%
7
4
35~44 years old
20.00%
3
5
45~54 years old
6.67%
1
6
55 years old or older
0.00%
0
Total
100%
15
Q4 - Which brand of smartphone you are currently using?
#
Answer
%
Count
1
Samsung
60.00%
9
2
Htc
13.33%
2
3
Nokia
0.00%
0
4
Sony
6.67%
1
5
Motorola
0.00%
0
6
Google
0.00%
0
7
LG
13.33%
2
8
Xiaomi
0.00%
0
9
Other, Please specidy
6.67%
1
Total
100%
15
Other, Please specidy
Other, Please specidy
apple iPhone
Q5 - 1.
Why did you choose this brand of smartphone compared to Samsung?
#
Answer
%
Count
1
Price is more affordable
26.67%
4
2
Function is better
33.33%
5
3
Shape is better looking
6.67%
1
4
Easier to use
0.00%
0
5
Performance is better
26.67%
4
6
Other (please specify):
6.67%
1
Total
100%
6
#
Answer
%
Count
1
Price is more affordable
26.67%
4
2
Function is better
33.33%
5
3
Shape is better looking
6.67%
1
4
Easier to use
0.00%
0
5
Performance is better
26.67%
4
6
Other (please specify):
6.67%
1
Total
100%
6
Other (please specify):
Other (please specify):
did't compare
Q6 - Are you interested in changing to a different brand of smartphone?
#
Answer
%
Count
1
Yes
22.22%
2
2
No
77.78%
7
Total
100%
9
Q7 - What brand(s) of smartphone are you considering switching to?
#
Answer
%
Count
1
Apple
100.00%
2
2
HTC
0.00%
0
3
Nokia
0.00%
0
4
Sony
0.00%
0
5
Motorola
0.00%
0
6
Google
0.00%
0
7
LG
0.00%
0
8
Xiaomi
0.00%
0
9
Other, please specify:
Other, please specify:
Other, please specify:
0.00%
0
Total
100%
2
Q8 - How much do you spend on your telephone fee per month?
#
Answer
%
Count
1
Under $30
33.33%
3
2
30 - 40$
22.22%
2
3
40 - 50$
22.22%
2
4
50- 60$
11.11%
1
5
Over $60
11.11%
1
Total
100%
9
Q9 - How long have you been using Samsung?
#
Answer
%
Count
1
Less than 3 months
0.00%
0
2
3 - 6 months
33.33%
3
3
7 – 11 months
11.11%
1
4
1 - 2 years
0.00%
0
5
Over 2 years
55.56%
5
Total
100%
9
Q10 - How did you get information about your Samsung phone before you chose it?
#
Answer
%
Count
1
Poster published
17.39%
4
2
Text message
0.00%
0
3
Internet search/website
13.04%
3
4
Online reviews
13.04%
3
5
Recommendations from family or friends
26.09%
6
6
TV or social media ads
13.04%
3
7
Newspaper/magazine article or ads
17.39%
4
8
Other (please specify):
0.00%
0
Total
Other (please specify):
Other (please specify):
100%
9
Q11 - Why did you choose a Samsung phone?
#
Answer
%
Count
1
Salesperson recommended
3.45%
1
2
Price promotion
3.45%
1
3
Influenced by family/friends
20.69%
6
4
Multifunctional
17.24%
5
5
Game friendly
6.90%
2
6
Brand reputation
17.24%
5
7
Easy to use
3.45%
1
8
Study or work needed
3.45%
1
9
Fashion/look
6.90%
2
Big screen, good visual experience
17.24%
5
Total
100%
9
10
Q12 - Which of the following were you aware of before this survey?
#
Answer
%
Count
1
I know Samsung is from Korea
44.44%
8
2
I know S8 & Note 8 is from Samsung
44.44%
8
3
I know Samsung’s market share is the highest in Android
11.11%
2
Total
100%
9
Q13 - How likely are you to use your Samsung phone for each of the following purposes?
Field
Mean
Call/Text
3.33
Entertainment
4.00
Music
4.22
Photo/Video
4.44
E-book
3.11
Website
3.22
E-mail
2.89
Navigation/GPS
3.78
Data management
3.00
Using apps
3.89
Video calls
4.22
Extremely
Unikely
Neither
Likely nor
Unlikely
Somewhat
Unlikely
Somewhat
Likely
Extremely
Likely
#
Question
1
Call/Text
0.00% 0
14.29%
2
9.76%
4
16.67% 1
5.41%
2
2
Entertainment
100.00% 1
0.00%
0
4.88%
2
16.67% 1
13.51%
5
3
Music
0.00% 0
7.14%
1
4.88%
2
0.00% 0
16.22%
6
4
Photo/Video
0.00% 0
7.14%
1
2.44%
1
0.00% 0
18.92%
7
5
E-book
0.00% 0
7.14%
1
17.07%
7
0.00% 0
2.70%
1
6
Website
0.00% 0
7.14%
1
14.63%
6
16.67% 1
2.70%
1
7
E-mail
0.00% 0
7.14%
1
19.51%
8
0.00% 0
0.00%
0
8
Navigation/GPS
0.00% 0
7.14%
1
7.32%
3
33.33% 2
8.11%
3
9
Data
management
0.00% 0
21.43%
3
9.76%
4
16.67% 1
2.70%
1
10
Using apps
0.00% 0
14.29%
2
4.88%
2
0.00% 0
13.51%
5
11
Video calls
0.00% 0
7.14%
1
4.88%
2
0.00% 0
16.22%
6
Total
Total 1
Total 14
Total 41
Total 6
Total 37
Q14 - How satisfied are you with each of the following aspects of your Samsung
smartphone?
Field
Mean
Shape of smartphone
4.44
Operating system
3.44
Multifunction
4.33
Big Screen
4.44
Price
3.78
Makes me feel I’m a smart consumer
4.00
Reliability
4.11
Overall
4.33
#
1
2
Question
Shape of
smartphone
Operating
system
Extremely
Dissatisfied
Somewhat
Dissatisfied
Neither
Satisfied nor
Dissatisfied
Somewhat
Satisfied
Extremely
Satisfied
0.00% 0
16.67% 1
6.67%
1
0.00%
0
20.00%
7
0.00% 0
0.00% 0
33.33%
5
25.00%
4
0.00%
0
3
Multifunction
0.00% 0
16.67% 1
6.67%
1
6.25%
1
17.14%
6
4
Big Screen
0.00% 0
16.67% 1
6.67%
1
0.00%
0
20.00%
7
5
Price
0.00% 0
0.00% 0
20.00%
3
31.25%
5
2.86%
1
6
Makes me feel
I’m a smart
consumer
0.00% 0
16.67% 1
13.33%
2
12.50%
2
11.43%
4
7
Reliability
0.00% 0
16.67% 1
13.33%
2
6.25%
1
14.29%
5
8
Overall
0.00% 0
16.67% 1
0.00%
0
18.75%
3
14.29%
5
Total
Total 0
Total 6
Total 15
Total 16
Total 35
Q15 - How likely you to do each of the following?
Field
Mean
I will buy more Samsung products in the future
3.78
When it’s time to replace my current phone, I’ll buy another Samsung
3.56
I will recommend Samsung smartphones to my family/friends
3.67
#
Question
I will buy more Samsung
products in the future
When it’s time to
replace my current
2
phone, I’ll buy another
Samsung
I will recommend
3
Samsung smartphones
to my family/friends
1
Total
Extremely
Unikely
Somewhat
Unikely
Neither
Likely nor
Unikely
Somewhat
Likely
Extremey
Likely
33.33% 1
20.00% 1
50.00% 2
0.00% 0
35.71%
5
33.33% 1
40.00% 2
25.00% 1
100.00% 1
28.57%
4
33.33% 1
40.00% 2
25.00% 1
0.00% 0
35.71%
5
Total 3
Total 5
Total 4
Total 1
Total 14
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