some like it sweet

 some like it sweet
∴​
cupcakery​
∴ Rikki Walker
table of contents marketing environment . . . . . . . . . . . . . . . . . . . . . . . . . 03
competitive analysis: casey’s cupcakes . . . . . . . . . . . . 10
competitive analysis: frosting’s cupcakes . . . . . . . . . . 19
time – out . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
competitive analysis: some like it sweet . . . . . . . . . . . . 35
list of works consulted . . . . . . . . . . . . . . . . . . . . . . . . . 43
2
The Marketing Environment
3
Industry Potential
Although the cupcake baking industry is no longer considered a new industry,
reports show that it is still on the rise. In fact, it is projected to continue in growth for at
least the next four years. According to research, this industry is expected to grow at a
rate of three percent annually through 2017 (Website 5). Also, as of February 2013,
there are roughly 3,200 companies in the retail baking industry, of which approximately
3,000 are considered small businesses (Website 5). Currently, the opportunity to
expand a business from a small business format to a medium or large format is quite
possible. This is because of the new developments and trends happening in the market
every year – from diet-sensitive treats to social media developments, and everything in
between.
In recent years, consumer demand for cupcakes has skyrocketed – from
actually eating these sweet treats to all things involving them, like books, blogs,
websites, etc. Data from 2012 shows that over 770 million cupcakes were consumed in
the United States, alone (Article 5). Television shows, such as ​
Cupcake Wars​
, have
grown in popularity to entertain over 16 million viewers, and blogs, such as ​
Cupcakes
Take the Cake​
, have reached new heights with over 28 thousand Twitter followers and
roughly half a million website views per month (Article 5).
The American Retail Baking Expo, a popular event amongst professionals in the
industry, hosted quite a few new businesses at their most recent expo. Most of these
new bakery professionals are looking to specialize in one specific area, rather than
incorporate a full-line bakery, or they seek to incorporate a food and beverage
component to their store (Article 7).
Implications​
: With all of this data, it is evident that the industry is still growing and
gaining new consumers continuously. For a new business in this industry it is not going
to be easy to start up with so many companies already making their mark, but it is
definitely possible to compete and make a profit based on the popularity of cupcakes
and other small treats. Also, since a new trend for the business is specialization, each
component or process in baking can branch off and take the market in a whole new
direction.
Current Trends in the Industry
The retail baking industry is moving in a number of different directions, currently,
and bakeries seem to be implementing new flavorful, bite-sized treats all the time.
Some new ventures include macarons, cake pops, cake cups (also called cake
push-ups), and gluten-free treats (Articles 4, 5, 9). The gluten-free and vegan trends are
extending beyond just those who actually have gluten intolerance or any other food
allergies, and they are making their mark as a healthy lifestyle, which means more and
more bakeries will need to jump on this trend in order to satisfy consumers (Website 5).
Not only are bakeries across the states attempting to implement these dietary
changes, but they are also exploring new and exotic flavors for their cakes. One of the
4
competitors, Casey’s Cupcakes, offers gluten-free and vegan recipes, and they are
currently conducting tests on new flavor infusions for their cakes and frostings, which
they hope to bring to market in the near future (Professional Interview 1). The other
competitor, Frosting’s Cupcakes, is currently not looking to implement diet-sensitive
cupcakes, but they have decided to highlight a new cupcake flavor every month
instead (Professional Interview 2, Website 2).
Cake cups, another new treat in the market, was made popular by New York
based bakery Bee’s Knees Baking Company. Stemming from the popularity of
cupcakes, this treat was designed to fit a few layers of sponge cake and frosting into a
bourbon cup – a new take on eating exotically flavored cake (Article 4). These treats
are becoming quite popular, and are being offered in a push-up pop style in bakeries
across the country.
Cake pops are similar to the cake cup, but instead offer a small ball of cake
covered in chocolate on a lollipop-like stick (Professional Interview 8, 10). Also,
macarons, a French-style confectionary, is with a jam, buttercream, or ganache
sandwiched between two cookies (Professional Interview 9, 10). They come in just as
many flavors and colors as a cupcake, and are just as popular in bakeries. Aside from
just trends that affect the product directly, there are many trends in technology that
customers also expect from businesses in this industry (see ​
Technological Factors​
).
Implications​
: As a new competitor in this industry, these trends are something to not
just keep in mind, but to make the most of and emphasize. It is important to stay on
trend and continually be researching new ways to offer the latest and greatest to the
consumer. Offering the newest treats and adding new recipes or flavors constantly will
attract customers, and keep a business on par with its competition.
Competitive Factors
Primary direct competitors of both Frosting’s and Casey’s Cupcakes include,
but are not limited to: Sprinkles Cupcakes, Wild Flour Cupcakes, Dots Cupcakes,
Susie Cakes, and Frosted Cupcakery. All of the bakeries mentioned are medium or
large businesses in the Los Angeles area that have already made an impact in the
industry (Websites 6, 8, 9, 11). Sprinkles Cupcakes is known as the world’s first
cupcake bakery, so it is the forerunner in the entire industry and is the business to beat
because it has enjoyed the most success (Website 6, Professional Interview 3).
Some of the indirect competitors in the baking industry include: Corner Bakery,
Panera, grocery markets such as Vons and Albertsons, and Mrs. Fields Cookies.
Corner Bakery and Panera are two café style bakeries that offer food and drink, as well
as baked goods like breads and pastries (Websites 12, 13). Also, some markets such
as Albertsons and Vons have bakery sections within their stores, in which they offer
consumers the same products as Casey’s and Frosting’s, but at lower prices. Finally,
Mrs. Fields Cookies can be considered an indirect competitor because they offer an
alternative to cupcakes: cookies that can be customized to order (Website 7,
Professional Interview 7).
5
Since this industry is relatively new and it already seems quite competitive, it is
safe to say that it is only going to get more competitive in the future. A local
competitor, Wild Flour Cupcakes, is relatively new to the industry but is expanding and
seems to find the industry gaining momentum, and growing more competitive
(Professional Interview 9). Also, the owner of Frosting’s Cupcakes believes it would be
extremely difficult to open a business in this industry without knowledge of how to run
a business, or a sufficient education in dealing with and preparing food (Professional
Interview 2).
Implications: Since companies in this industry seem to continue adapting and finding
success, it is evident that they are stiff competition. For a new business in this industry,
this implies that they have to be ready to compete, and they must be willing to
implement and change when the industry changes. Customers have so many options,
especially in this geographic area, and they aren’t going to wait around for a business
to figure it out when they can go down the road and get what they need. It’s important
to pay attention to the competitors and understand how to differentiate your business
to bring in customers.
Technological Factors
Customers are very technology savvy in today’s day and age, and they expect a
lot from the businesses in this industry. It is crucial to connect with your fans and
consumers via social media outlets like Facebook and Twitter. Also, having an
Instagram profile is a great tool that allows customers to see pictures of the latest
happenings in your business (Professional Interviews 1, 4). Another development that
many bakeries are looking into and implementing is the mobile application. Sprinkles
Cupcakes was the first in the industry to develop an app for those on-the-go
customers to place orders ahead of time, and for others to simply see what is going on
with the company or where the closest shop is (Professional Interview 3, Website 6).
One major new technology, also developed by top competitor Sprinkles
Cupcakes, is the Cupcake ATM – a 24/7 cupcake dispenser that satisfies sweet
cravings any day, any time (Articles 3, 9). One competitor, Frosting’s Cupcakes, is
currently only utilizing a Facebook and Twitter account, and has no plans to connect
via Instagram or any other site (Professional Interview 2). Casey’s Cupcakes, on the
other hand, makes the most out of all of these social media outlets, and is expanding
their reach into a mobile application as well (Professional Interview 1).
Since all of these popular social media sites are free, it will not cost a business
anything to start and maintain profiles on each, however it may mean hiring someone
to continually update and post to each account which can be factored into their pay
(Professional Interviews 4, 5). Many owners feel that applications, such as Instagram,
are an easy way to post quick pictures and keep customers interested (Professional
Interviews 1, 3, 4, 5, 6).
Implications: ​
These innovations in technology definitely impact how these businesses
are reaching their consumers, and keeping them in the loop of what is happening at
6
their stores. It is imperative that new businesses in this industry capitalize on these
outlets as a form of marketing, and to incorporate consumers in their business.
Connecting through social media tools will also help foster a relationship and be a
benefit to relational marketing for the business and industry.
Political/Legal Factors
In this industry it is important to know how to handle food and ingredients
correctly in order to ensure quality service and a product that complies with
regulations. Bakeries require that each employee have a food handlers’ certificate, and
most also require employees to have a high level of culinary training (Professional
Interviews 1, 2).
Also, the Food and Drug Administration has strict guidelines and regulations that
any business in food preparation must comply with. For example, if a bakery makes
cookie dough or cake mix and sends it to another store location to be prepared, or if
they ship their products throughout the states, they must comply with the Bioterrorism
Act. Under the Bioterrorism Act, one of the many regulatory acts in the food industry,
businesses must keep a record of every ingredient they use in their products, as well
as the sources that those products came from, and the sources they are being shipped
to for preparation or sale (Website 4).
Another example of something that the FDA regulates in bakeries and baked
goods production is eggs. There is a specific rule, known as the Egg Safety Rule that
details every step in egg preparation, transportation, and storage for the food industry.
Bakeries are required to store their eggs at a temperature of 45 degrees, and prepare
them in a specified way that will prevent the spread of Salmonella Enteritidis (Website
4).
It is estimated that 1 in 6 Americans gets sick with a foodborne illness every
year, thus the Food and Drug Administration enacts such detailed guidelines that must
be met in order to combat and prevent any potential lawsuits or areas of legal tension
for those in the food industry (Website 4).
Implications: These acts and regulations are matters that must be taken seriously for a
new business that is entering the industry. A high knowledge of nutrition and
ingredients would be ideal for store owners and their employees. Also, if ingredients
can be bought from local producers, or producers that have close relations with the
company, it would help lessen the number of middlemen and allow for safer food
transport and practices. The more knowledgeable you are about your products’
ingredients and preparation, the easier it will be to protect customers from foodborne
illness and your company from any potential lawsuits.
Social/Cultural Factors
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Society today is obsessed with convenience and time. Consumers do not want
to wait around to get what they want because their time is precious, so they want what
is convenient, and anything that will guarantee that they are served quickly (Customer
Interviews 2, 4, 5, 7-9). This fast-paced mindset of consumers has influenced
innovations such as mobile applications and the Sprinkles Cupcake ATM (see
Technological Factors​
), which have both taken the industry into completely new
directions and added to its growth.
Also, society seems to be interested in personal health and nutrition.
Unfortunately this contributes to the decline of the industry in many ways, but it also
opens the door for new recipes and healthy options to be implemented into bakeries
(Customer Interviews 3, 6, 10, 16, 17, Professional Interviews 9-11). It is important to
consumers that they know what ingredients and products they are putting into their
mouths when the buy cupcakes and baked goods. They want to know what is in a
bakery’s products, and if there are options that can make their sweet cravings more
healthy and carry less guilt later on (Professional Interviews 1, 4). Many consumers also
buy single-serve or smaller quantity packages of food in order to comply with their
health or diet restrictions, and the highest demand for single serve packaging is in the
desserts and pastries sector of the food industry (Article 8).
These health and nutrition trends have steered the industry into a new direction
that offers more variety of products with diet-sensitive and allergy-sensitive
ingredients. Many businesses have capitalized on this cultural influence and are now
offering strictly gluten-free or vegan baked goods, such as Babycakes – a bakery that
produces only wheat-free, gluten-free, dairy-free, casein-free and egg-free products
(Websites 3, 14). Thus, society has played a large role in moving this industry towards
specialization (see ​
Industry Potential​
).
Implications: A new business owner in this industry would take note that these
societal influences are changing the face of the industry, and it is important to
understand what is going on in society that will change the way customers think and
act. This also implies flexibility, and the willingness to change your business when the
industry is changing and when consumers are changing. If you are not willing to do so,
it could cause your business to fail, and vice versa. The more knowledge you have as a
business owner of what is currently influencing society, the easier it will be to
implement changes that fill the needs your customers are looking for.
Consumer Behavior Factors
1. ​
Affordability of Price​
(Cust. Interviews 2, 4-7, 9-14, 18, 20; Prof. Interviews 1-6; Articles 6, 10)
2. ​
Friendly Employees/Fast Service​
(Cust. Interviews 1-5, 8, 13, 15-19; Prof. Interviews 12-15)
3. ​
Taste Satisfaction​
(Cust. Interviews 1-4, 9, 14, 18-20; Prof. Interviews 4-6; Articles 6, 9, 10)
4. ​
Diet/Allergy-Sensitive Products​
(Cust. Interviews 6-8, 10-13, 15, 17-19; Prof. Interviews 1, 2)
5.​
Number of Locations/Convenience of Location​
(Cust. Interviews 2, 5, 9, 11-14, 16, 18-20)
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6. ​
Ability to Customize Cake​
(Cust. Interviews 1, 7-8, 11-14, 16; Prof. Interviews 4; Articles 6, 10)
7. ​
Product Consistency/Quality of Cake​
(Cust. Interviews 2, 4, 9, 11, 13-15, 17-20)
8. ​
Variety of Product Flavors ​
(Cust. Interviews 6-8, 10, 12, 13, 15, 17-19)
9. ​
Readability/Simplicity of Menu ​
(Cust. Interviews 3, 5, 6, 10, 12, 15, 19 Prof. Interviews 9-11)
10. ​
Customer Health/Personal Lifestyle Choices​
(Cust. Interview 3, 6, 10, 11, 12, 14, 16, 17)
11. ​
Employee Knowledge of Product Ingredients​
(Cust. Interviews 6, 8, 10, 13, 14, 18)
12. ​
Rewards/Deals/Coupon Offers​
(Cust. Interviews 1, 5, 7, 13, 15, 17)
13. ​
Ability to Order Online/Pre-Order​
(Cust. Interviews 5, 7, 8, 9, Prof. Interviews 14)
14. ​
Ability to Order in Different Quantities​
(Cust. Interviews 5, 7, 8, Prof. Interviews 14, 15)
15. ​
Brand Loyalty/Fan of Bakery​
(Cust. Interviews 3, 9, 10)
Implications: Based on this list of decision-making factors, it is very important for a
business to keep in mind what customers consider to be little things that make a
big difference in their purchases. As a new business in this industry, these are the
top priorities to keep in mind because they are going to influence what your
customers will/will not buy, and their decision to stay/leave their favorite company
for yours.
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The Competitive Analysis
for Competitor #1:
Casey’s Cupcakes
10
Positioning Map #1 – Cupcake Consistency/Quality of Cake vs. Price of Cupcakes
High Quality & Consistency Low Quality & Not Consistent Why: ​
Casey’s Cupcakes is placed in the current position because most customers
found that the consistency and quality of the products varied with each visit to the
establishment (Customer Interviews 2, 9, 11, 15, 17). Compared to the industry,
Casey’s prices are considered above average, however the company makes it a point
to stay within the industry norm for pricing (Customer Interviews 2, 5-6, 9-11). Casey’s
is placed in the upper right, which shows that compared to competitors this bakery is
considered pricey or over-priced, but attempts to make up for that in their product
quality and consistency.
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Positioning Map #2: Friendly Employees/Fast Service Vs. Ability to Customize
Very Friendly & Fast Service ​
Unfriendly & ​
Slow Service Why: Casey’s Cupcakes is placed on this map in the upper right, because customers
expressed that they appreciate the ability to customize any cupcake, but wish there
were more options for custom cupcakes (Customer Interviews 1, 11, 16). Also, Casey’s
Cupcakes makes it a point to be quick in service and friendly to all customers to make
them feel at home and welcome, which many customers find important in the overall
experience of the store (Customer Interviews 1-2, 5, 15-17). What this map shows is
that compared to its competition Casey’s Cupcakes excels in service friendliness and
pace, as well as an average availability of customization options.
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Primary Target Market Analysis
1. Psychographic: Casey’s Cupcakes uses psychographic analysis first and foremost
to target consumers that are so-called “super fans” of the bakery. Their primary
psychographic market includes those who are avid bakers, and have a heightened
interest in the area of baking and baked goods. Also, they emphasize and seek to
serve those customers who are fans of the show ‘Cupcake Wars’ because they have a
prior investment and interest in the company and the industry. They rely heavily on the
word of mouth marketing provided by their super fans (Professional Interview 1).
2. Benefits: ​
Next, Casey’s Cupcakes relies on the many benefits that they offer in this
industry, which puts them ahead of most of their competition. They donate 35% of all
proceeds to a charity that benefits underprivileged youth in the surrounding area,
known as the C.A.S.E.Y. Foundation. Also, Casey’s Cupcakes offers their cupcakes in
their patented individual cupcake boxes that turn into a plate when you open them up,
and host ‘Decorate Your Own Cupcake’ birthday parties, bridal showers, and baby
showers (Website 1). Compared to Competitor #2, Casey’s also supplies consumers
with vegan, gluten-free, as well as sugar free products. They are connected with
consumers via Twitter, Facebook and Instagram, too.
3. Geographic: Third most important in market analysis is the geographic market.
Casey’s Cupcakes focuses primarily on the Irvine and Inland Empire area, but also
includes the rest of Southern California. Casey’s Cupcakes relies on their stores’
surroundings to influence their influx of customers and the types of people that they
serve. They want each store to reflect the community in which it stands (Professional
Interview 1). I placed this as third because, although it is important, it is not as heavily
relied upon as the company’s benefits and psychographic market analysis.
4. Demographic: Finally, Casey’s relies on demographic last because they want their
fans to be their biggest priority before analyzing consumer based on a particular age
group or social class (Professional Interview 1). The primary target customers that
Casey’s Cupcakes strives to serve are young cupcake enthusiasts, between the ages
of 5-25 that love everything about the industry and love the show ‘Cupcake Wars’.
Each store exhibits a Hollywood glamour meets Parisian café type of atmosphere, and
pink can be found just about everywhere – suggesting a female preference in
customers. Since each geographic location is in a rather expensive area, it is evident
that Casey’s intends to bring in customers that are in or above the upper middle class
(Professional Interviews 13, 16).
Product Objectives (Consumer Experience) & Strategies Examples
Product Objectives: In developing this company, owner Casey Reinhardt sought to
reflect her fun-loving and bright personality in each of her stores and to exhibit the
many years she spent developing recipes in her great-grandmother’s kitchen (Website
1). Her passion is for baking and serving others, and she worked very hard to make
13
that the emphasis of her company (Website 1; Professional Interview 1). Another
primary goal for this company is to make the consumer feel as though they are a part
of the family, so to speak. They do this by connecting with consumers via social media
outlets, and by making their consumers feel extra special every time they walk through
the doors (Professional Interview 13).
Product Strategies: ​
There is an emotional connection that Casey’s uses to its
advantage, and that is the fame of its owner and the popularity of their establishment
due to their appearance on a major cable network (Website 1). They emphasize this by
displaying pictures and signs throughout each of their stores, as well as on their
website and social media accounts (Professional Interview 16). Also, every month they
host a new recipe as the “flavor of the month”, which mainly exhibits the winning
cupcakes that owner Casey Reinhardt made for the television show ​
Cupcake Wars​
. For
instance, in December they typically make a peppermint cupcake or a gingerbread
cupcake to bring a little bit of Christmastime to the bakery (Professional Interview 13).
Casey’s also strives to be a leader in the industry by providing customers with
top-notch ingredients and recipes. They use rare ingredients like vanilla from Tahiti,
peaches from Colorado, or chocolate from Belgium in some of their most popular
cupcake and frosting flavors. The recipes they use for all of their cupcakes are all hand
crafted by the owner, Casey Reinhardt, and her team of experienced pastry chefs.
Casey’s also uses a patented cupcake box that transforms into a personal sized plate
for the ultimate cupcake eating experience (Professional Interview 12). They offer their
cupcakes in decorative individual boxes, or packs of six, which are all colored pink
with black and white accents to fit the store theme.
Strengths: Casey’s Cupcakes is a leader as far as excellent recipes, and glamorous
cupcake designs. They are very intentional with their customers, and do everything in
their power to provide exactly what the customer asks for when they walk into the
store. The availability of a large variety of options is constant throughout the week, and
diet-sensitive cupcakes can be found in each store, every day (Customer Interviews 1,
5, 6, 9, 10).
Weaknesses: ​
Prices are quite high for this industry, but are fitting for the portion of
product that is purchased. Each store does not bake its own supply of cupcakes, most
stores have them shipped daily or every other day, so freshness and consistency are
not constant for Casey’s. Some of the stores do not have adequate parking, some are
located in shopping centers, but the two that aren’t do not have enough spaces close
to the store available to customers (Customer Interviews 1, 2, 5).
Pricing Analysis & Strategies Discussion
Item
1 Cupcake
Half-Dozen Box
Casey’s
$3.50
$18.00
Frosting’s
$3.50
$21.00
14
Industry Norm
$3.00 - $4.00
$18.00 - $24.00
Pricing Analysis: ​
Casey’s Cupcakes main objectives with pricing are to ​
meet
competition pricing and compete with other bakeries in the industry. Their products are
priced in the middle of the industry norm.
Pricing Strategies: Casey’s Cupcakes offers a single cupcake for $3.50, and larger
orders of ½ dozen are priced at $18.00 (Website 1). These prices float around the
average for the industry and thus exemplify the strategy of meeting competition. The
products for this industry are elastic, meaning demand will fall when prices rise. The
price-quality relationship reflects the high quality of ingredients and thus the high price
of the product. Casey’s utilizes a bundling package for orders of ½ dozen – if you buy
five cupcakes, you get the sixth one free – this aims at attracting more consumers to
buy larger quantities of cupcakes because they get a “discount” (Professional Interview
14).
Strengths: ​
Target customers for Casey’s have noticed that although products and
services are highly priced, the quantity or size of products and services is fitting for the
price paid (Customer Interviews 1, 5). Customers also love that Casey’s Cupcakes
come in individual boxes, or in larger boxes for larger quantities, and it does not cost
anything extra for the customer to have the product packaged (Customer Interviews 5,
6, 10). Further, Casey’s consumers enjoy the “buy five, get one free” bundling package
because it is a reasonable price, and discounts the original price of buying one
cupcake from $3.50 to $3.00 (Customer Interviews 5, 6, 9, 17).
Weaknesses: Casey’s Cupcakes, although meeting competition in pricing, is said to
have high prices for their products, which drives a lot of customers away or hinders
them from purchasing a large amount of products (Customer Interview 2). Customers
also feel that the price is not reflective of quality. Because each store does not bake its
own supply of cupcakes every day the consistency of the cake and overall quality
varies, which sometimes makes customers feel as though they “wasted their money”
(Customer Interview 2, 9, 16).
Place Objectives & Strategy Examples Discussion
Place Objectives: Casey’s Cupcakes specifically places their stores in upscale
neighborhoods and populated shopping areas that they know will attract their target
demographic (Professional Interview 1). Currently, Casey’s has five locations in the
Southern California area, but this portion will focus on the Irvine location specifically
[Woodbury Town Center, 6258 Irvine Blvd., Irvine, CA 92620]. This company makes its
products available to consumers through a physical store and through a company
website. At this location they are quite close to their competition, seeing as there are
over 12 bakeries or establishments that offer baked goods within a one-mile radius of
Casey’s Cupcakes. Also, competitor #2, Frosting’s Cupcakes, is about 7.7 miles away
from competitor #1, Casey’s Cupcakes.
15
Place Strategies: Strategy is key in this industry because, as is evident in ​
Place
Objectives​
, there are many bakeries throughout one specific city, let alone the entire
county or geographic region. Casey’s Cupcakes is ​
selective in its place objectives,
which brings value to its customers because there are multiple locations throughout
the area at which they can purchase products. When it comes to ordering cupcakes,
customers can choose to e-mail through the website, call the specified store telephone
number, or pay a visit to one of the locations. Orders are available for pick-up only,
unless there is a specified event that is being catered by the company, such as a
wedding or a company party (Professional Interviews 13, 14). Further, by placing their
store in a lifestyle shopping center in the rather rich community of Irvine, Casey’s can
draw in many customers throughout the week, especially on Friday and Saturday
nights, and attract the exact demographic that they seek.
Strengths: Customers of Casey’s Cupcakes have expressed satisfaction with the
decision to open multiple locations because it makes it convenient for their demand
and desire for this company’s products (Customer Interviews 9, 11, 15-17). Also,
customers enjoy that the stores are located in areas that have multiple forms of
entertainment, from movie theaters to markets and boutiques, that allow for a day or
night filled with fun that can end in a sweet treat from Casey’s (Customer Interviews 1,
6).
Weaknesses: Customers wish that there were some form of online ordering or a virtual
store for Casey’s Cupcakes, rather than just an overview of their flavors and monthly
specials (Customer Interviews 2, 9, 11, 15). This would make the product more
accessible and convenient for the consumers, and allow them to “pre-shop” before
making a trip to one of the store locations.
Promotion Objectives & Strategy Examples Discussion
Promotion Objectives: Casey’s Cupcakes current promotion objectives include
increasing awareness and ​
stimulating demand for their products. This company is
relatively new to the market, so Casey’s aims to increase awareness, and has done so
by participating in the television competition ​
Cupcake Wars. Casey’s also seeks to
stimulate demand for their products, and utilizes many social media accounts to stay
connected with consumers and get their name out there.
Promotion Strategies: As previously stated in ​
Promotion Objectives​
, Casey’s
Cupcakes is increasing awareness and stimulating demand in the industry by playing
an active role in social media and participating in contests or competitions with other
bakeries. Their intent with these objectives is to gain popularity in the market and
attract new customers, while also retaining current customers and keeping all of their
market updated through social media, at the same time (Professional Interview 12).
Casey’s has been quite efficient as far as keeping updates constant and connecting
with customers through their social media accounts. This has proven to be effective for
them because many customers will speak of their experiences with the website or
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reference something they saw on the Facebook page during their visit (Professional
Interview 14). Also, many customers come in specifically to experience one of the
winning bakeries from ​
Cupcake Wars​
, and Casey’s uses this title to their advantage by
placing it on all of their social media and website pages, as well as in each of their
stores (Professional Interviews 1, 16). Also, on their Facebook, Twitter, and Instagram
profiles Casey’s Cupcakes occasionally posts reminders and coupons for “happy
hour” specials and other promotional offers, to stimulate demand and get consumers
into their stores.
Strengths: Customers of Casey’s Cupcakes find that promotion strategies are subtle,
which they enjoy because they are not constantly bombarded with information or
unnecessary updates (Customer Interviews 5, 9). New customers, specifically, like that
Casey’s is connected through social media and tries its best to communicate
consistently with its customers (Customer Interviews 1, 9, 16, 17)
Weaknesses: Some customers feel that their promotion relies too heavily on their
status as a ​
Cupcake ​
Wars winner, rather than on the actual product (Customer
Interview 2, 10). Also, customers have mentioned that Casey’s does not promote
enough as far as rewards or discounts, that would give them incentive to purchase
products more regularly (Customer Interviews 1, 2).
Website Objectives & Strategies Discussion:
<www.caseyscupcake.com>
Website Objectives: For Casey’s Cupcakes company website they primarily aim at
overviewing the business – from what they do, to how they started, and where they are
heading. Although they are very informative about their products, they are rather vague
when it comes to pricing or a menu of any form. The website itself is underdeveloped
in the sense that there are a few sections that need improvements or are not yet filled
with any information. As far as what they aim to accomplish with this site, I believe that
they want to attract consumers with their “glamorous” design/atmosphere, and
award-winning status (Professional Interview 16).
Website Strategies: Their website features links to their social media accounts and a
live feed of their Twitter account, which serve as forms of measuring their success.
Also, their home page features current news press they have been featured in –
another success measurement. For time and convenience, customers can look up all
of the cupcake flavors on the Casey’s Cupcakes website, as well as all of the contact
and location information for each store. The success of this website weighs heavily on
the success of the business in general because it is the main way that this bakery will
be able to connect with its consumers. From this page customers can access all other
communication outlets, and if something goes wrong or the website is a total failure
then it will directly affect their ability to connect with consumers in all other aspects of
their business. This website enhances the brand relationship because it encourages
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visitors and fans to explore their social media profiles and news articles or blog
features (Professional Interview 16).
Strengths: Customers particularly love how connected Casey’s Cupcakes is to their
market, and the variety of social media outlets that they utilize so customers can
connect over virtually any website or application (Customer Interviews 1, 6, 15).
Weaknesses: For those customers that are not technologically savvy, Casey’s website
can be a tad difficult to figure out or understand with everything that is displayed on
their home screen. Although accessing the cupcake flavors and locations (or other
such topics) is relatively easy to do on the Casey’s Cupcakes website, some older
customers felt that it was less useful because they did not necessarily understand
certain sections of the website such as social media (Customer Interviews 2, 5).
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The Competitive Analysis
for Competitor #2:
Frosting’s Cupcakes
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Positioning Map #1 – Cupcake Consistency/Quality of Cake
vs. Prices of Cupcakes
High Quality & Consistency Low Quality & Not Consistent Why: ​
Frosting’s Cupcakes is placed in the current position because most customers
explained that their use of high quality ingredients does not reflect in their final
product’s quality and consistency. Many customers complained that the consistency
and quality of products varied dramatically between visits (Customer Interviews 13, 14).
Compared to its competitors in the industry, Frosting’s prices are relatively high.
However according to industry standards they still manage to fall within the typical
pricing range (Customer Interviews 4, 18, 20). Frosting’s Cupcakes is placed in the
lower right on the map to show that compared to its competitors this bakery is
considered too pricey, or even over-priced, for the quality of cupcakes that it
produces.
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Positioning Map #2: Friendliness & Fastness of Service Vs. Ability to Customize
Very Friendly & Fast Service ​
Unfriendly & ​
Slow Service Why: Frosting’s Cupcakes is placed towards the bottom of this map because although
they offer some customization options for cupcake orders, customers expressed that
they would like more leeway and possibilities for creating custom cupcakes (Customer
Interviews 7, 8, 12). Also, Frosting’s Cupcakes is a very small establishment with only a
couple of employees on hand at all times, which customers said makes them rather
slow at transactions (Customer Interviews 3, 4, 18). What this map shows is that
compared to its competition, Frosting’s Cupcakes has a lot of room for improvement
when it comes to a fast pace and giving customers more options to personalize their
cupcakes.
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Primary Target Market Analysis
1. Geographic: Frosting’s relies mainly on geographic analysis for their target market.
Its only store is located in Lake Forest, so the company is reliant on the influx of
customers that surround the Lake Forest and Irvine area. This company is set in an
outdoor shopping plaza, surrounded by many businesses and office buildings. They
count on a lot of their business from these businesses, and office parties or events that
they may host (Professional Interview 2).
2. Psychographic: Next, Frosting’s seeks to serve those customers that love baking
and the baked goods industry. The company’s primary psychographic market includes
those consumers that already know and love the bakery, and love supporting local
businesses in the area. They strive to keep the community as a top priority, especially
the baking enthusiasts and mothers with young children (Professional Interview 2).
3. Benefits: ​
Third most important in market analysis is benefits. Frosting’s Cupcakes
offers a ‘decorate-your-own-cupcake’ option on their menu where consumers can buy
a kit with an unfrosted cupcake, a signature Frosting’s flower sprinkle, and a cup filled
with the corresponding icing flavor. Also, Frosting’s has the option for consumers to
have their products gift-wrapped, which includes a decorative box, recycled wooden
fork and knife, and a delicately tied bow to hold it all together (Professional Interview
15).
4. Demographic: ​
Finally, Frostings’ Cupcakes relies on demographic last because
they want their focus to go towards the community that they are located in, which
ranges in terms of demographic. The primary target customer for Frosting’s Cupcakes
are those between the ages of 25-45 that are in the middle to upper-middle class. They
are very minimalistic in their store design to appeal to the dense business community
around their store, so they seek customers that are specifically businesspeople. Even
though they use flowers as their signature symbol, their primary color scheme is
neutral, suggesting that they are trying to be very gender neutral to attract a variety of
customers (Professional Interviews 10, 11, 16).
Product Objectives (Consumer Experience) & Strategies Examples
Product Objectives: ​
When developing this business, owner Mandana Farshi wanted
to make sure that the recipes she incorporated produced top-notch, gourmet
cupcakes that satisfied her customers. She has always had a passion for baking, and
worked for many years to complete her culinary degree and use that to her advantage
in this business. Another goal that she set for this business is to let the customer be
the final authority. If customers do not like the recipes and products, she pulls them
from the menu. She also attempts to implement some use of social media to keep her
customers updated and hear their feedback, but shies away from emphasizing a social
22
media presence because her target market is much older and less tech savvy
(Professional Interview 2).
Product Strategies: Frosting’s Cupcakes emphasizes their availability of various types
of treats that they offer, and unlike many cupcake bakeries they offer cake pops,
cookies, and macaroons. Each treat is wrapped either individually or in
couplets/triplets to add value for the customers as a form of bundling. They also bake
their products fresh every two days, and host a new flavor of the month for every
month of the year. Typically, they use a seasonal ingredient in their flavor of the month
to make it unique and special to that particular time of the year. Every two or three
months, the senior pastry chef also implements a new flavor that is intended to be a
new staple menu item. As expressed above in ​
Product Objectives​
,​
the new cupcake
is tested out on customers for a few weeks, and if it receives negative feedback or
does not sell well, it is taken off of the menu. Another strategy that Frosting’s utilizes is
their changing menu. Every day only a certain number of flavors are available, usually
the three or four most popular are available every day, but other flavors that are more
obscure are only offered two, maybe three times per week (Professional Interview 1).
Strengths: Frosting’s Cupcakes is a leader when it comes to great gourmet cake
recipes, and simplistic designs. They are very attentive to their customers’ opinions
and want to provide only the best products that they can for their market (Customer
Interviews 12, 13,14).
Weaknesses: ​
Availability of flavors is not constant throughout the week, and
customers must refer to their menu or website in order to know which day they will be
able to purchase their favorites. Only a few of their staple recipes are offered every day
(Customer Interviews 1, 3, 4).
Pricing Analysis & Strategies Discussion
Item
1 Cupcake
Half-Dozen Box
Casey’s
$3.50
$18.00
Frosting’s
$3.50
$21.00
Industry Norm
$3.00 - $4.00
$18.00 - $24.00
Pricing Objectives: Frosting’s Cupcakes main objectives with pricing are to ​
meet
competition pricing and compete with other bakeries in the industry. Their products are
priced in the middle of the industry norm.
Pricing Strategies: Frosting’s Cupcakes offers a single cupcake for $3.50, and larger
orders of ½ dozen are priced at $21.00. These prices float around the average for the
industry and thus exemplify the strategy of meeting competition. The products for this
industry are elastic, meaning demand will fall when prices rise. The price-quality
relationship reflects the high quality of ingredients and thus the high price of the
product. Although Frosting’s does not have a bundling price, they do utilize a rewards
23
system- for every 6 purchases, customers get one free cupcake. Frosting’s does not
go over the top with marketing strategies and I think that correlates to their pricing
strategies in that they do not do anything above and beyond what the competition is
doing.
Strengths: ​
Target customers for Frosting’s have noticed that although products and
services are highly priced, the quantity or size of products and services is fitting for the
price paid. Customers also appreciate that there are options for packaging that do not
cost a significant amount more, and that there are benefits for making multiple
purchases, which results in free products (Customer Interviews #7, 8, 12).
Weaknesses: Frosting’s Cupcakes, although meeting competition in pricing, is said to
have high prices for their products, which drives a lot of customers away or hinders
them from purchasing a large amount of products (Customer Interviews 1, 4, 7).
Customers also feel that prices do not reflect the quality of the product. Many
customers feel the quality does not match their expectations, and most cupcakes were
“dry” or “poorly made” (Customer Interviews 1, 8).
Place Objectives & Strategy Examples Discussion
Place Objectives: ​
Frosting’s Cupcakes currently has one location, which was
strategically placed in a popular shopping center filled with restaurants, stores, and
other such businesses. Their only store is located in Lake Forest [The Orchard
Shopping Center, 23624 El Toro Road, Suite D, Lake Forest, CA 92630]. This company
makes its products available to consumers through a physical store and through the
company website (Professional Interview 11; Website 2). At this particular location,
Frosting’s is surrounded by over a half dozen bakeries or similar competitors that offer
baked goods within a one-mile radius. Also, competitor #1, Casey’s Cupcakes, is
about 7.7 miles away from competitor #2, Frosting’s Cupcakes.
Place Strategies: Frosting’s Cupcakes is exclusive in its place objectives, which
brings prestige to the product itself because there is only one location at which
consumers may purchase products. When placing an order with Frosting’s, customers
can choose to either physically visit the store, call the specified store telephone
number, or place an order through their website for pick up at the store location.
Orders are only available for pickup, unless Frosting’s is catering an event such as a
wedding or corporate party, in which case they bring the cupcakes to you (Professional
Interviews 11, 15). Finally, by placing this location in a lifestyle shopping center in the
middle of a rather rich and populated community, Frosting’s can attract many
customers during the week and on weekends as they go about their shopping
schedules or visit this area for dinner.
Strengths: Customers of Frosting’s Cupcakes have explained their satisfaction with
the location of the store because many other shops surround it that customers
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frequently visit, which makes it easy to get all of their shopping done in one place
(Customer Interviews 13, 18, 20).
Weaknesses: Customers would like it if there were more options of locations, instead
of having to travel to one store for their Frosting’s fix (Customer Interviews 17, 19).
Also, because this location is in a populated shopping center, customers are not
satisfied with the amount of parking available in front of the store (Customer Interviews
3, 7).
Promotion Objectives & Strategy Examples Discussion
Promotion Objectives: ​
Frosting’s Cupcakes current promotion objectives include
differentiating ​
and ​
stimulating demand for their products. This business has been
around since 2009, so the community already knows who they are, which is why they
seek to differentiate their products to incorporate new items that will put a new spin on
the business that the town already knows about. Frosting’s also seeks to stimulate
demand for their products and increase the influx of customers in their store by
incorporating these new treats and staying on trend with the most popular items in the
industry.
Promotion Strategies: As previously stated in ​
Promotion Objectives​
, Frosting’s
Cupcakes is incorporating new menu items to increase the demand for the products
and differentiate their business. Their goal is to keep their presence known in the
community, and to make sure that they are still satisfying their current customers and
attracting new ones (Professional Interview 10). Frosting’s also utilizes a Facebook and
Twitter account to keep fans updated on store happenings. This has proven to be quite
a hit-or-miss for the bakery because most of their market is older, and therefore less
knowledgeable about these social media sites (Professional Interview 2). Another way
that Frosting’s attempts to stimulate demand is through their rewards card. Customers
receive a rewards card when they first purchase products from the bakery, and every
subsequent purchase receives a hole-punch. Once customers make it to six punches,
they receive a free cupcake (Professional Interview 11).
Strengths: Customers of Frosting’s Cupcakes enjoy the new menu items that are
experimented with at the bakery because it gives them something new to try, instead
of ordering the same thing every time they visit (Customer Interviews 12, 14).
Weaknesses: ​
Many customers wish that Frosting’s would attempt to make more of a
presence in social media because that is how they receive a lot of their information in
today’s society. They explained that it is hard to know what is going on at the bakery if
they don’t always get updates or notifications about special offers or events (Customer
Interviews 7, 8).
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Website Objectives & Strategies Discussion
<http://www.frostingscupcakes.com>
Website Objectives: Frosting’s Cupcakes has a company website that they primarily
use as an online menu and a place where customers can place orders. There is not a
lot of information about the bakery or the owner other than a description of what the
location looks like. Although they are very informative and descriptive about their
cupcake flavors, they are rather vague when it comes to menu pricing, which is only
available if you place an order online or go to their store. There website is also quite
underdeveloped, considering there are some sections that do not contain any
information or have yet to be linked to anything. I believe that their aims for this site are
to attract customers with their simple and chic style, award-winning recipes, and
neighborhood store type of atmosphere (Professional Interview 16).
Website Strategies: Frosting’s Cupcakes’ website features links to their Twitter and
Facebook accounts, which are discretely placed in the lower corner of the browser
window. This helps enhance the brand relationship for Frosting’s because it allows
customers to explore the company’s social media profiles to keep updated on what is
currently happening in the bakery. Their homepage emphasizes mainly their menu
items, and there is no mention of who they are or what they do. Customers are
provided with a tab that has a list of every cupcake along with a picture and
description, and the days it is offered at the bakery. Customers can order online or
simply research their order before actually visiting the store. The success of this
website is directly related to the success of the business because it is the main way
that this bakery connects with its market, other than the actual store location
(Professional Interview 16).
Strengths: Customers have expressed that they like the overall design of Frosting’s
website because it is very clean, and not overwhelming. They also enjoy the large
pictures of Frosting’s products, which helps customers see exactly what they are
ordering (Customer Interviews 18, 19).
Weaknesses: Customers explained that they wish there were more information on the
website that would help them learn more about Frosting’s and their products, because
currently there is very little information available about things such as the background
of the company (Customer Interviews 8, 14).
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Time-Out
27
Ethical Issues & Action Plan
A) Situation: ​
There is one customer that has been a strong advocate of my business
from the start, and has invested a lot of time and money into purchasing cupcakes
from my store. This customer is a gay individual in the community where my business
is located, and is also responsible for strong word-of-mouth marketing for my
business. He regularly makes purchases at my store and I know that he dislikes
Christianity and people who claim to be Christians because of their strict beliefs of and
views towards homosexuals. Although we have encountered each other many times in
the store, he does not know that I am a Christian and that my business strives to serve
God first and foremost. Today he placed a large order for 500 cupcakes for a local Gay
Pride festival that will celebrate the LGBT community.
B) Tension: ​
From a moral standpoint there is obvious tension that exists in being a
witness to this customer – loving him and accepting him as he is without necessarily
supporting his lifestyle choices. Aside from the moral tension, another tension that
exists for me is financially based. If I fail to fill this order of cupcakes, I could lose this
man’s business and promotion. Because he lives in the local community, this makes it
possible for him to tell local newspapers or news stations about this incident, which
will ultimately ruin my reputation and deter potential business. Along with the
community, existing customers as well as this man’s friends and family will most likely
cease to support my business. This being said, I will lose out on money and business,
my brand image will be destroyed, and a large source of word-of-mouth marketing
promotion will be cut off.
C) Ethical Dilemmas​
:​
Three ethical dilemmas that pertain to this situation:
1. Filling this order for the Gay Pride festival would insinuate that I support something
that I cannot stand for because of my morals, yet refusal would be detrimental to my
business.
2. I could tell him about my decision to follow Christ and by filling the order I could
show this customer God’s love and the passion He has given me to love His people, or
I could choose not to fill the order because of my beliefs, which might deter this
customer from returning to my business for future purchases, and might give him even
more reason to dislike God and be resentful towards Christians.
3. I am tempted to just not even address the topic, and keep quiet about the fact that I
am a Christian. This would make the situation easier, in the sense that he would not
know that I am feeling tension by filling this order, and I would just let God deal with
what happens after the cupcakes leave my property. However, I need to be bold and
take a step of faith to share about Christ in this situation, rather than just hiding it and
letting God help me deal with the guilt and the repercussions.
D) Biblical Principles: Two verses that really speak to me about the tension of this
situation are 1 John 4:7-11 and Matthew 5:14-16. The first passage, 1 John 4:7-11,
speaks to the tension of not wanting to love someone because of their sexual
preference. In this passage John communicates the truth that God is love, and
28
because He first loved us we ought to love others in the same way. This passage
reminds me that it is my responsibility to share the love of Christ, to love all of God’s
creation, and to serve God by loving in this way. The next passage, Matthew 5:14-16,
speaks to the tension of being afraid or ashamed to share about my relationship with
God. In this particular chapter, Matthew writes the words Jesus spoke in the Sermon
on the Mount. These three verses focus on being the light in a dark world, and our
responsibility to let the light shine for others to see, and for God’s ultimate glory. This
passage serves as a reminder that I should share the work that God has done in my
life, and not hide that light, out of pure ashamedness or fear, from being spread for His
glory.
E) Action Plan: My plan of action is to seek God’s will, first and foremost, through
prayer and discussion with fellow believers (for however long time will allow).
Ultimately, I believe that showing God’s love will triumph over the issue of this
customer’s personal immorality, and the immorality of supporting his community. Thus,
I will fill the order of cupcakes and have a conversation with the customer to show him
that I love him, and that even though I do not believe in his personal lifestyle choices I
am willing to continue doing business with him.
F) Rationale: My decision to fill this order walks a fine line when it comes to abiding by
biblical standards and God’s will, but I believe that it is important for me to be light to
this community. Jesus was known for hanging out with the sinners and the lowly of the
communities that he was in, not with the people who believed. I think that it is crucial
to imitate that picture of Christ, and to love on this community because they are all
image bearers of God. Obviously I cannot avoid the issue entirely, and I want to keep
this man as a customer to continue witnessing to him and hopefully to change his
mindset when it comes to his view of Christians and more importantly his view of God.
I do not feel that this decision means that I am disobeying God, because I believe that
He ordained this man to enter my establishment and to do business with me for
reasons far beyond what I can comprehend. Despite the outcome of this situation, I
know that I will not feel any guilt because I will have shared my story and God’s love
towards this customer, while also witnessing to his personal struggles and sins, and
his journey in life.
S.W.O.T. Analysis
Strengths
● I have researched this industry, and competitor businesses.
● I know problems that exist in this industry, from customer perspectives.
● I know how to handle and resolve the problems that exist.
● I can implement a uniqueness that will gain a competitive advantage in the
industry.
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Weaknesses
● My business has no brand image/reputation.
● My business currently has no brand awareness (because there is no brand).
● Because there is no brand image or awareness, there is also no brand loyalty.
● I have no experience in the industry, or in running a business.
● There is an intense competition in the market/industry because it has already
developed.
Opportunities
● I could make my products more consistent by making them fresh daily.
● I could offer more gluten-free and vegan products, specifically more flavor
variety.
● I could connect with my consumers more via social media sites such as
Facebook, Instagram, Twitter, Vine, Keek, or Pinterest.
● I could offer more rewards, coupons or deals for my products.
● I could make my menu simpler for customers to read by implementing
technology, and categorizing different aspects of the product (frosting flavor,
cake flavor, etc.).
● I could make transactions involving employees fast yet friendly, to respect the
customer’s time and to help establish a brand reputation with our service.
● I could offer every flavor, every day so customers do not need to be
inconvenienced by our menu limitations.
● I could create an inviting environment that is not overwhelming or understated,
and signs that accurately display and reflect the company.
● I could place more emphasis on the actual cupcakes rather than my status in
the industry (because I have no status or popularity).
● I could create a place that revolves around what the customer wants in a
cupcake, rather than simply selling the recipes that I have mastered.
Threats
● Competitors in the market are very savvy and smart. They might copy the
unique techniques and strategies that I implement in my business, and diminish
my competitive advantage.
● There are some unpredictable things that may happen, such as being sued for
not meeting regulations set by the FDA, or serving food that may cause
foodborne illness.
Competitive Advantages
Problem 1: Prices – Most customers base their purchases on the price of the
products, and feel that they can go somewhere else to get what they need if the
products are overpriced (Customer Interviews 2, 4-7, 9-14, 18, 20).
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Solution(s): To avoid losing customers over price, I will make prices based on industry
averages but stay towards the low end of the price range. I will also offer discounts to
Biola students to give them incentive to buy products. Also, I can keep my business
open late or even 24-hours, to accommodate the college student demographic, and
offer discounted products after a certain hour to encourage late night trips to grab
something sweet to eat.
Problem 2: ​
Service – Customers find friendly and fast service very important, and they
want to feel a personal connection with the employees and the business when they
invest in the company by purchasing its products. They complain that most of their
experience has been negative due to ignorant or inconsiderate employees that do not
respect them and their investment in the company (Customer Interviews 1-5, 8, 13,
15-19).
Solution(s): When it comes to hiring employees, I will be very selective and detailed
about the requirements and training. I will ensure that employees are invested in the
industry and qualified when it comes to handling and preparing food. I will also make
sure employees have a working knowledge of today’s technologies that may be utilized
by this business, such as social media and applications for conducting business
(Square Register, Tapingo, etc.). Employees will also be required to complete training
that will teach them how to interact with and serve customers. I want my employees to
be approachable, patient, respectful, and friendly when speaking with customers. They
will meet customers on their level when it comes to how this business works and the
technology we use to make the experience flow for customers, and walk them through
everything to make sure they enjoy their experience and are completely satisfied with
their purchase. I will stress the importance of relationships with customers, and make
sure employees work on gaining customer trust and respect.
Problem 3: ​
Inconvenience – Some customers feel that the store itself is not close
enough and not located in a favorable area, or there is no parking available in the front
of the store (Customer Interviews 2, 5, 9, 11-14, 16, 18-20).
Solution(s): In order to make the location convenient for my target market, Biola
students, I will place my business in the Imperial Promenade Shopping Center. This
shopping center is located down the road from Biola, and is a popular area to go
shopping, or to the movies, etc. There is plenty of parking available to customers here,
and there are many stores within walking distance that will make it convenient for
customers to get all of their shopping done in one center and pick up a treat for later.
Problem 4: Allergens & Diets – Customers find that most bakeries only offer
gluten-free or vegan products offered in the most “popular” flavor only. They are
limited to only Red Velvet or Vanilla, for instance, and cannot choose any flavor that
they want to satisfy their sweet tooth (Customer Interviews 6-8, 10-13, 15, 17-19).
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Solution(s): To ensure that customers with sensitivities have options, my business will
bake gluten-free, vegan, and regular cupcakes for every flavor on the menu. There will
be a set amount made fresh every day, and customers can track the amount of each
flavor still available during their visit on the iPad menu when they order. The amount of
each flavor purchased every day will be recorded over time to track purchases of each
flavor, and when enough data has been accumulated the amount of each flavor made
every day will accurately reflect the purchasing patterns to accommodate customer
needs.
Problem 5: Menu Simplicity – Customers are unsatisfied with the menu if it cannot be
easily read or does not make it simple to decipher what products they can choose from
(Customer Interviews 3, 5, 6, 10, 12, 15, 19).
Solution(s): In order to make the menu as simple as possible, I want to implement the
use of iPads that have an application already open and ready for customers to use
when they walk in the store. The application will be similar to Biola’s Tapingo
application, and will break down the menu by category. Customers will be able to
choose which cake flavor, frosting flavor, and whether or not either of those needs to
be gluten-free, or vegan. Prices will remain the same for all cupcakes in order to avoid
confusion and let the customer be free to choose what they want rather than worry
about pricing. The menu will also show a picture of the cake and frosting combination
on the iPad screen so the customer can see exactly what they are ordering as they
order it. When the decision has been made, the last step will be to complete the order
and will instruct the customer on what to do next. By walking the customer through the
entire process simply, there is less room for error in ordering and less confusion trying
to decipher a menu.
Problem 6: Customization – Customers want the freedom to choose their cake and
frosting, and they complain that they do not always want the pre-made combinations
of cake and frosting flavors that stores provide (Customer Interviews 6-8, 10, 12, 13,
15, 17-19).
Solution(s): As previously stated in Problem 5, my business will allow customers the
ability to choose whichever cake flavor and frosting flavor combination that they want.
This will give customers the freedom to be creative in their decision-making and
change the norm for this industry by putting power into the customer’s hands –
allowing them to be the chef of their own product. Also, this will allow customers to feel
a sense of ownership in their purchase, because they created something that is unique
to them and to their personal taste buds.
32
rd​
Intentional Marketing Strategies for 3​
Product
A) Quality/Consistency: To ensure consistency and quality in the cupcakes produced
by my business I will implement a rule that for every batch of cupcakes baked, one
must be tested to make sure that the ingredients were mixed, poured, and baked
properly, and that the cake itself is the right texture, size, and consistency according to
the business standards. Also, to ensure that cupcakes are fresh, they will be made
every single day. Since this business operates 24-hours a day, there will be a time
when the old products will be disposed of and new products will be made. For
instance, if there are leftover cupcakes at 1:00 a.m. they will be disposed of and
recorded as waste (for records and research) and new batches of cupcakes will be
placed on display to ensure that customers receive only the freshest products from the
bakery.
B) Employee Satisfaction & Training: ​
In order to ensure that my employees are
properly trained, I will require each hire to complete two weeks of extensive training,
that will walk them through every aspect of the business from baking to transactions to
customer service, etc. This will teach them all there is to know about what we do, what
we provide, and who we are as a business so that if a customer should ask, they are
prepared to answer and do not need to refer to a higher position. Each employee will
be required to learn each job within the business so as to understand the importance
of each aspect of the business, and to promote equality amongst employees (no one
can boast about their position because they are all on the same level). To ensure
satisfaction amongst employees, I will implement a “Confidence Corner”. In the
employee break room area, there will be a corner dedicated to encouragement, and at
the end of every week new notes will be posted with encouraging words for each
employee to read about themselves and their achievements. I would also like to
implement one-on-ones with each employee, so that they know that I am invested in
their life and truly desire for them to be a part of my business. Each week, I will have
two or three set times for one-on-ones with my employees. I can take them out to
lunch or just grab coffee with them. This will allow me to meet them where they are at
in life so that I may walk alongside them, understand them, and help them to grow. By
investing in each employee, they will know that I care and that will hopefully increase
their satisfaction in working for this business. ​
For more information, refer to
Competitive Advantages Section – Problem 2.
C) Customer Service: To ensure that customers feel loved by my company, I want to
set up a system of rewards – such as a free cupcake on your birthday, or something of
this nature – that will let customers know that we are thinking of them. Another option
would be to implement a system that remembers customer orders, so each customer
can sign into their account and order their favorite cupcake, without having to scroll
through all of the options when visiting the store. The account will record information
such as favorite orders, purchasing history, etc. Also, employees will be trained to
handle customer complaints according to each situation. For example, if the customer
is not satisfied with their purchase, the employee will record the complaint in detail and
33
offer the customer a complimentary replacement product. This will ensure that
customers know they are being heard and necessary changes will take place to make
sure it does not happen again. A complementary product is sort of the icing on the
cake that serves as a “thank-you” for the constructive criticism.
D) Research: One simple thing that I can implement to conduct research are surveys.
Survey QR codes can be printed on receipts for customers to give us feedback about
their experience with our business (QR is short for Quick Response Code, the QR
scanner is a popular smart phone application where people take a picture of the code
and it links them directly to the website that the business is advertising). At the end of
the survey, customers will be given a coupon of some sort towards their next
purchase. I can also implement a rating scale that customers can quickly fill out while
they are waiting for their transaction to go through or the employee to hand them their
change. There can be an iPad set up near the register with an application open that
has a quick survey with a few simple questions. Examples of questions can be, “Did
one of our employees reach out to you to help you during your visit today?” or “Was
the cupcake you ordered in stock today?” which can help us as a business to
continually make sure that the we are achieving the goals we set for ourselves, and
solving the problems that we came across in research. The questions can change per
person, too, to ask a range of questions that cover a multitude of topics that we want
to control. Also, should funds allow it, I could have focus groups of college students
once every few months or hire a secret shopper to give us feedback on their
experience with the employees and the business. After data is collected from these
different forms of research, they will be recorded and there will be meetings held every
couple weeks to go over new implementations and changes within the business. To
ensure that employees are cooperating the research will be ongoing, to make sure that
customers see the changes between their visits. Also, management can speak with
each employee personally and stress the importance of each change that needs to be
made, and make sure that their heart for the company is in the right place, and they are
dedicated to changing and helping the company improve.
Purpose Statement/Mandate
Some Like It Sweet Cupcakery is dedicated to honoring the Lord Jesus Christ
through serving our customers with excellence, managing our assets with diligence,
building team members with care, and adding value to our community. This company
strives to set a new standard for the industry and the business community by seeking
counsel, listening to customers, and continually transforming our business to be the
best it can be. Our objective is to make every customer feel unique and cherished by
our business. We will seek to serve the community, but more specifically the college
community in the area, and provide them with a unique alternative to satisfy their sweet
tooth cravings. We will provide customers with the freshest products and ingredients in
the most efficient way and at an affordable price. Continual research and customer
satisfaction will mark our progression as a business, and provide us with new problems
to solve and grow from on our journey.
34
The Competitive Analysis for Product ​
#3​
:
Some Like It Sweet Cupcakery
35
Positioning Map #1 – Cupcake Consistency/Quality of Cake vs. Price of Cupcakes
High Quality & Consistency Low Quality & Not Consistent Why: Some Like It Sweet is placed in the upper left corner of this map to show that
there is a market for cupcakes that are lower in price and of high quality, yet still remain
within the competition pricing range. Compared to its competition this business will
strive to stay on the lower end of the industry average when it comes to product
pricing – the top consumer concern when deciding what products to purchase. Also,
Some Like It Sweet needs to provide the best quality ingredients and products for its
customers, and work to be consistent in production – another top decision-making
factor for customers in this industry.
36
Positioning Map #2: Friendly Employees/Fast Service Vs. Ability to Customize
Very Friendly & Fast Service Unfriendly & Slow Service Why: Some Like It Sweet is placed on this map in the upper right to show that there is
a market for a business that is fast and friendly in service and offers a wide array of
options to make each cupcake custom for customers. One of the largest concerns or
influences for customers deals with the way that they are treated by employees, and
how quickly they can get what they want to purchase. Also, customers want the ability
and option to make each cupcake they order personalized to their liking. Both of these
decision-making factors will be a foundation to build upon and two of the top priorities
for this new business.
37
Primary Target Market Analysis
1. Benefits: Some Like It Sweet will use benefits analysis primarily to target consumers
who are looking to feel unique and have the power to choose when it comes to their
cupcakes. They will offer customers a variety of flavors, frostings, toppings, and
diet-sensitivity options in their products. The main idea of this business is that
customers will have the power to essentially build their own cupcake – this being the
primary difference between this bakery and its competitors. Not only this, but Some
Like It Sweet will be very active on social media accounts, and continually update or
interact with their market as a form of research and building relationships.
Why: This business needs to focus on and accentuate the precise reason it is different
from other businesses in the industry. The primary difference picks up where the
competition falls short, and leaves customers unsatisfied, therefore Some Like It Sweet
will use that weakness to its advantage by differentiating and capitalizing on this
specific problem.
2. Demographic: ​
The narrow target market that Some Like It Sweet will strive to serve
is college-age students in the La Mirada and La Habra area. More specifically, Biola
students aged 18 – 24 and preferably females, seeing as the industry is dominated by
female presence. The store’s geographic landscape is set in a rather middle class area,
so this business will intend to bring in middle class customers (or any customers that
are around this social class), but will also be affordable enough for a college student
budget.
Why: Narrowing the market is key for this new business because they cannot and will
not be everything to everybody. They will seek out their specific demographic and
serve those customers, and continually transform the business to be what those
customers expect of them.
3. Psychographic: Some Like It Sweet will use psychographic analysis to target the
cupcake lovers of the market place that love everything there is about baking. The
primary psychographic profile for this bakery is customers that love baking or anything
that has to do with the baking industry. Also, since they are targeting college-aged
students, their psychographic profile will include students that love running out late at
night for “study breaks” or “midnight snacks”, and those who live in the moment or
love new experiences with friends. These are the types of customers that will be strong
word-of-mouth marketers for the bakery on their campuses and with their friend
groups.
Why: Psychographic is ranked third to show that this bakery will not rely as heavily on
this analysis, but will still use this as a tool to bring in their college market.
Understanding the hobbies, interests, and lifestyle of this demographic will help Some
Like It Sweet to better serve their customers.
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4. Geographic: The location of Some Like It Sweet will be the Imperial Promenade
Shopping Center in La Habra because it is near to the Biola community, and also
surrounded by many popular stores that Biola students (and other potential customers)
frequently visit. The store will reflect the progressive, tech-savvy student demographic
that it intends to attract, and will rely heavily on the surrounding shops to influence the
influx of customers.
Why: This is ranked fourth in importance because although it does play a part in the
influx of customers, it is not the primary tool that will get the target customers into the
bakery. However, it is crucial that the geographic location fits the demographic and is
continuously populated by the target market, which is why the above shopping center
and city were chosen.
Product Objectives (Consumer Experience) & Strategies Examples
Product Objectives: Some Like It Sweet aims to provide customers with variety,
options, and quality, all at an affordable price. This bakery seeks to pick up where
other bakeries fall short and provide customers with something new, innovative, and
different to satisfy their sweet tooth cravings. The primary objective behind this
business is to make the customer feel unique and special to the company by giving
them the freedom to be creative and be their own pastry chef.
Product Strategies: In order to fulfill its objectives, Some Like It Sweet will have a
menu with at least 20 cupcake flavor options, all of which will be available in regular,
gluten-free and vegan. There will also be around 20 frosting flavors, which will give
customers upwards of 1,200 combinations to choose from – well above what the
industry competition offers. Each flavor will be available daily, so that customers can
walk in anytime to get their favorite combination and not have to worry about which
days each flavor is available. To better fit the lifestyle of the target demographic the
store will stay open until very late, and any products left over at the end of the work
day will be thrown out and replaced with fresh products the following day. All products
will be made fresh daily to ensure high quality taste that customers are looking for, and
to prevent any inconsistencies that customers may notice from one visit to the next.
Cupcakes and frostings will also be made using top-notch ingredients to make for
better quality products. In store and online menus will be simplified to show customers
exactly what they will be getting, and help them walk through the entire process of
ordering and customizing their cupcake. Service is of highest priority in the
establishment, so employees will be on hand to help customers, answer questions and
work on building relationships with them while they are in the store.
Why: Top weaknesses of the two previous businesses dealt with quality and
consistency, and variety in the menu. Some Like It Sweet is aiming to solve those
problems and satisfy customers with their plethora of options, and the specific rules
they set in place to regulate and control the quality and consistency of their cupcakes.
Also, based on research from the competitors it was evident that customers felt
39
overwhelmed little things, such as the bakery menu. The menu should explain the
product, price, and be clear and concise. Thus this new bakery will seek to take that
complaint into account and implement a menu that essentially walks each customer
through the ordering process, to limit the probability of confusion and frustration that
may detract from the product itself.
Pricing Analysis & Strategies Discussion
Item
Casey’s
1 Cupcake
$3.50
$3.50
Some Like It
Sweet
$3.00
Half-Dozen Box
$18.00
$21.00
$15.00
Frosting’s
Industry
Norm
$3.00 - $4.00
$18.00 $24.00
Pricing Analysis: ​
The main objective for Some Like It Sweet when it comes to pricing
will be to ​
meet competition ​
and compete with other bakeries in the industry. Their
products will be priced on the lower end of the industry norm.
Pricing Strategies: Some Like It Sweet offers a single cupcake for $3.00, and a larger
order of a ½ dozen is priced at $15.00. These prices are within industry averages, but
tend to sit on the lower end of the price range as an incentive to bring in new
customers with low prices. Also, the ½ dozen box is a bundled price, giving customers
the benefit of getting one cupcake for free if they buy five more. Customers also
receive rewards through a rewards card that is available at the first purchase. Once
they reach six purchases, they receive two free cupcakes of their choosing. Finally,
weekly coupons and special offers will be made available through the company
website, and social media accounts for any customers planning to visit the store that
week.
Why: As a new business, Some Like It Sweet needs to meet competition in order to
actually compete and stay open in the industry. Their prices stay within average for the
industry but are lower than the two previous competitors because they need to make a
statement as a new business, and bring some customers away from these two
competitors. Also, bundling is a great strategy because customers love receiving free
products, and are more inclined to buy if they know they are getting a deal (Customer
Interviews 21-25).
Place Objectives & Strategy Examples Discussion
Place Objectives: Some Like It Sweet will be placed strategically in a major shopping
center near to Biola University in order to reach its target market. This shopping center
is located in La Habra, California, and is known as the Imperial Promenade [1040 W
Imperial Hwy, La Habra, CA 90631]. This new business will start with only one store,
but will hopefully have the opportunity to expand later on. Products will be made
40
available to consumers through a physical store location, and online ordering via the
company website. At this particular location there are only five alternative bakery
options within a one-mile radius, and this area is over 29 miles away from the two
previous competitors.
Place Strategies: As explained in ​
Place Objectives​
, there are a few direct
competitors in the area, and throughout the rest of the county. Some Like It Sweet will
be ​
exclusive in its place objectives for the time being because it is a new business, but
there may be opportunity to be selective later on if expansion occurs. Although they
bring value to their customers in pricing, their exclusivity will bring a sense of prestige
to their products because there will only be one location where products can be
purchased. When ordering cupcakes, customers will be able to e-mail through the
company website, call the store location, or visit the store location. Online ordering will
also be available for pickup or delivery, in order to differentiate this business from its
competitors. Finally, by placing Some Like It Sweet in this lifestyle shopping center in a
middle-class area, the business will be better able to attract their target demographic.
Why: This location is quite popular with the surrounding community, and many
students at Biola frequently shop or eat here (Customer Interviews 21-25). It would be
a great area to open this bakery because there is no other store like it in this particular
spot. The closest competitors are Panera and Corner Bakery, which are indirect
competitors of this business as discussed in the ​
Marketing Environment​
. Also,
adding options for ordering allows customers to shop before they enter the store and is
convenient for those customers who do not wish to visit the store.
Promotion Objectives & Strategy Examples Discussion
Promotion Objectives: Some Like It Sweet will aim at ​
increasing awareness and
stimulating demand ​
for their products. This company is brand new to the industry so
its primary objective will be to let the market know what Some Like It Sweet is all
about. Also, the business will attempt to stimulate demand for their products since they
currently have no demand.
Promotion Strategies: Some Like It Sweet will have an active presence in social
media in order to increase awareness and stimulate demand. Through accounts on
Facebook, Instagram or Twitter, this bakery will host special contests and keep their
customers updated continuously throughout each week by posting pictures, coupons,
and “get-to-know-us” stories. As a way of getting customers to be aware of our
product, there will be free samples of mini cupcakes to get shoppers to try the
products. If stores that surround this new business allow it, there will be signs and/or
employees of Some Like It Sweet near their establishments handing out these free
samples and coupons. Since there are many businesses around, the bakery can also
hand out free samples to employees of those businesses to get the word-of-mouth
marketing started in the area. During the opening week, customers will receive a
coupon no matter what they purchase, that will give them incentive to revisit the bakery
41
to try more of the products. This business will utilize a very interactive advertising
appeal, to get the product into consumer hands, and hear feedback that will be applied
to the bakery.
Why: By having a very active presence on social media, the younger market that I am
going for will feel more connected and therefore more likely to visit this bakery
(Customer Interviews 21-25). Also, going to the customers instead of expecting them
to come to the bakery, will speak volumes to them and help get the product and name
out there in the market. Promotion aims at expanding on the objectives for price,
product and place. All of these objectives affect how the promotion is conducted –
from where in the shopping center, to the coupons or rewards, and even the free
samples of the product. These promotion strategies will need to reflect what the
business sets out to do in these other areas.
Website Objectives & Strategies Discussion
Website Objectives: The Some Like It Sweet website will aim at introducing the
business, including the background information and anything else that may help the
customer understand the bakery better. The product will play the biggest role on the
website, and customers will be able to walk through how the store and business work.
The goal will be to attract consumers – show them how they can stay in touch, how
they can place orders, where they can visit us – and keep them interested.
Website Strategies: This website will be very minimal, probably featuring a white color
palette with pastel accents, as well as easily distinguishable lettering and large pictures
of the products. The tabs for different sections of the site will include things such as a
cupcake menu, a frosting menu, an “about us”, contact information, pricing
information, ordering information, and so on. There will be a section dedicated solely to
social media, to keep all of the updates, account information and pictures in one place
where consumers can click and instantly be taken right to our social media profiles.
Each product will be described in extensive detail to assure customers of the
ingredients and allergy information that they need to be aware of. There will also be a
special menu that acts just as the menu in the store would. It will walk the viewer
through the process of ordering a customized cupcake by showing them options for
cake, then options for frosting, and the next steps that will follow such as decorating
the cupcake and paying for it. This website will encourage consumers to get involved
with the bakery and interact via social media.
Why: ​
The color scheme and design aims at not overwhelming the customer, but
attracting them and providing them with what they need to know. The menus will be
kept in the exact same format, both on the website and in the store, to ensure that
customers do not get confused and to make it plain and simple for them to decipher.
This website will focus on remaining consistent with the other aspects of the business
(such as the place, the target customers, or the promotion) in order to keep fluidity and
simplicity for the customer.
42
List of Works Consulted
43
Professional Interviews
Professional Interview #1: Sean, Café Supervisor at Casey’s Cupcakes in Irvine, CA.
Sean has worked in the industry for about 4 years. 15 March 2013. This
interview was relevant to my research because this is one of the bakeries that I
am using in competitive analysis.
Professional Interview #2: Mandana, Senior Pastry Chef & Operations Manager at
Frosting’s Cupcakes in Lake Forest, CA. She has worked in the industry for over
6 years. 18 March 2013. This interview can fit into the marketing environment
section because we spoke a lot about customer expectations and details about
the product and business.
Professional Interview #3: Candace, Founder of Sprinkles Cupcakes. She has worked
in the industry for 8 years. 18 March 2013. This interview was relevant to my
research because Candace has been in the industry for the longest amount of
time. I spoke with her about the topics in the Timeout and Marketing
Environment sections.
Professional Interview #4: Hyo, Founder of Dots Cupcakes in Pasadena, CA. She has
worked in the industry for 7 years. 19 March 2013. I spoke with Hyo about
pricing, place, promotion, and product because although she has been in the
industry for a while, her shop is quite small. She offered perspective from a
smaller business standpoint, as compared to my interview with Candace of
Sprinkles.
Professional Interview #5: Nancy, Co-Founder of Frosted Cupcakery in Los Angeles,
CA. She has been in the industry for 7 years. 20 March 2013. I talked with Nancy
about having a business mission statement, and other such elements in a
business that can be included in the Time-Out section.
Professional Interview #6: Stacia, Co-Founder of Frosted Cupcakery in Los Angeles,
CA. She has been in the industry for 7 years. 20 March 2013. Stacia is Nancy’s
daughter, and I spoke with her about the dynamics of working with family, and
how that impacts their business. Also, I asked her about other topics that can fit
into the Time-Out section.
Professional Interview #7: Jessica, Store Manager of Mrs. Field’s Cookies in Brea, CA.
She has been in the industry for around 3 years. 21 March 2013. This interview
focused on indirect competition, and customer behavior/decision making. We
spoke about what motivates customers and the competition between cookies
and cupcakes.
Professional Interview #8: Jennifer, Co-Owner of Beverly’s Best Bakery in Fullerton,
CA. She has been in the industry for over a decade. 22 March 2013. This
44
interview focused on competitive analysis information, and we spoke about the
differences between cupcakeries and bakeries – the size and scope of the
business and the market.
Professional Interview #9: Shay, Employee of Wild Flour Cupcakes in Fullerton, CA.
She has been in the industry for almost 2 years. In this interview I asked Shay
about entering the industry later in the process and if she has seen any changes.
A lot of what we spoke about will be useful in the marketing environment
section.
Professional Interview #10: Jenna, Employee of Frosting’s Cupcakes in Lake Forest,
CA. She has been in the industry for less than 1 year. We spoke about what she
sees most customers order or what factors lead them to make their purchases,
and her desire to work for this particular bakery.
Professional Interview #11: Mary, Employee of Frosting’s Cupcakes in Lake Forest, CA.
She has been in the industry for 4 years. I asked her about the industry over the
past four years, and how she has seen it change/not change, and what she
thinks this business can do to improve.
Professional Interview #12: Alex, Employee of Casey’s Cupcakes in Laguna Beach, CA.
She has been in the industry for 2 years. We talked about locations and the
importance of utilizing a location to the best of the company’s ability. I asked her
about brand loyalty as well.
Professional Interview #13: Blake, Employee of Casey’s Cupcakes in Laguna Beach,
CA. He has been in the industry for less than 1 year. I spoke with him about
being a male in a female-dominated business, and whether or not this
company/industry targets women more so than men.
Professional Interview #14: Jessica, Employee of Casey’s Cupcakes in Irvine, CA. She
has been in the industry for almost 2 years. I asked her about orders that take
place over the Internet, and how the entire process of ordering works because
she mentioned that a lot of businesses make large orders.
Professional Interview #15: Anna, Employee of Frosting’s Cupcakes in Lake Forest,
CA. She has been in the industry for 3 years. We spoke about the influence of a
bakery’s look/design, and whether or not modernity and minimalist styles prevail
over extravagant and glamorous designs.
Professional Interview #16: Rikki (Me), Biola Student and Baking Industry Enthusiast. I
can be considered a professional on this industry because I have been
researching it for the past three months.
45
Customer Interviews
Customer Interview #1: Female, Early 20s. She has purchased products from both
Casey’s Cupcakes and Frostings Cupcakes. Interviewed 15 March 2013 at
Casey’s Cupcakes in Irvine, CA. This interview was relevant to my research
because I learned about customer perspective and expectations; we touched on
the topics of pricing, product, place, and promotion.
Customer Interview #2: Male, Late 40s/Early 50s. He has purchased cupcakes from
Casey’s Cupcakes. Interviewed 16 March 2013 at Casey’s Cupcakes in Irvine.
This interview will be very helpful for customer expectations and dislikes/likes
information; He expressed that he was very disappointed in the products he
purchased, and found many problems.
Customer Interview #3: Female, Late 20s. She has purchased cupcakes from
Frosting’s. Interviewed 16 March 2013 at Frosting’s Cupcakes in Lake Forest.
This interview provided me with great information that I can use for the
consumer behavior section – she really enjoyed her experience and her
purchase.
Customer Interview #4: Male, Early 30s. He purchased cupcakes from Frosting’s.
Interviewed 16 March 2013 at Frosting’s Cupcakes in Lake Forest. This
interview was helpful in providing insight on the taste and texture of the product,
and he was satisfied with his visit so I can use this for the likes/dislikes sections
of consumer behavior.
Customer Interview #5: Female, Early 40s. She has purchased products from Casey’s
Cupcakes. Interviewed 08 April 2013 at Casey’s Cupcakes in Laguna Beach,
CA. This interview provided a lot of insight for consumer behavior because she
was purchasing for a large group at her company. She was satisfied with the
helpfulness of the employees and the ability to make such a large order.
Customer Interview #6: Female, Mid to Late 20s. She has purchased products from
Casey’s Cupcakes. Interviewed 08 April 2013 at Casey’s Cupcakes in Laguna
Beach, CA. This interview focused on health of the products and dietary
restrictions.
Customer Interview #7: Male, Mid 20s to Early 30s. He has purchased cupcakes from
Frosting’s. Interviewed 09 April 2013 at Frosting’s Cupcakes in Lake Forest. This
interview was focused on ordering for a party or a large number, and the ability
to customize. Also, we talked about dietary restrictions and pricing.
Customer Interview #8: Female, Late 20s. She has purchased cupcakes from
Frosting’s. Interviewed 09 April 2013 at Frosting’s Cupcakes in Lake Forest. This
46
interview really helped with decision making factors because she knew exactly
what she wanted, and researched her purchase beforehand. She was satisfied
with the purchase and the overall experience of this bakery.
Customer Interview #9: Female, Late 40s/50s. She has purchased products from
Casey’s Cupcakes. Interviewed 10 April 2013 at Casey’s Cupcakes in Laguna
Beach, CA. In this interview we spoke about the show Cupcake Wars and
brand loyalty, which were two leading factors in her purchases. Also, we spoke
about consistency, taste, and number of locations.
Customer Interview #10: Female, Late 60s/70s. She has purchased products from
Casey’s Cupcakes. Interviewed 10 April 2013 at Casey’s Cupcakes in Laguna
Beach, CA. This customer found it important to focus on the ingredients/dietary
factors in her purchase because of her allergies.
Customer Interview #11: Female, Early 20s. She has purchased products from Casey’s
Cupcakes. Interviewed 20 April 2013 at Casey’s Cupcakes in Laguna Beach,
CA. This customer helped me in ranking decision-making factors, by telling me
what was more important to her in her buying experience.
Customer Interview #12: Male, Early 40s. He has purchased cupcakes from Frosting’s.
Interviewed 22 April 2013 at Frosting’s Cupcakes in Lake Forest. This customer
helped me in ranking decision-making factors, by telling me what was more
important to him in his buying experience.
Customer Interview #13: Female, Late 30s. She has purchased cupcakes from
Frosting’s. Interviewed 22 April 2013 at Frosting’s Cupcakes in Lake Forest. This
customer helped me in ranking decision-making factors, by telling me what was
more important to her in her buying experience.
Customer Interview #14: Female, Late 60s/Early 70s. She has purchased cupcakes
from Frosting’s. Interviewed 22 April 2013 at Frosting’s Cupcakes in Lake
Forest. This customer helped me in ranking decision-making factors, by telling
me what was more important to her in her buying experience.
Customer Interview #15: Male, Early 30s. He has purchased products from Casey’s
Cupcakes. Interviewed 22 April 2013 at Casey’s Cupcakes in Irvine, CA. This
customer helped me in ranking decision-making factors, by telling me what was
more important to him in his buying experience.
Customer Interview #16: Female, Early 20s. She has purchased products from Casey’s
Cupcakes. Interviewed 22 April 2013 at Casey’s Cupcakes in Irvine, CA. This
customer helped me in ranking decision-making factors, by telling me what was
more important to her in her buying experience.
47
Customer Interview #17: Female, Early 20s. She has purchased products from Casey’s
Cupcakes. Interviewed 22 April 2013 at Casey’s Cupcakes in Irvine, CA. This
customer helped me in ranking decision-making factors, by telling me what was
more important to her in her buying experience.
Customer Interview #18: Female, Early 50s. She has purchased cupcakes from
Frosting’s. Interviewed 24 April 2013 at Frosting’s Cupcakes in Lake Forest. This
customer helped me in ranking decision-making factors, by telling me what was
more important to her in her buying experience.
Customer Interview #19: Female, Late 20s. She has purchased cupcakes from
Frosting’s. Interviewed 24 April 2013 at Frosting’s Cupcakes in Lake Forest. This
customer helped me in ranking decision-making factors, by telling me what was
more important to her in her buying experience.
Customer Interview #20: Female, Late 50s/Early 60s. She has purchased cupcakes
from Frosting’s. Interviewed 24 April 2013 at Frosting’s Cupcakes in Lake
Forest. This customer helped me in ranking decision-making factors, by telling
me what was more important to her in her buying experience.
Customer Interview #21: Female, Early 20s. She was interviewed about the new third
product, Some Like It Sweet Cupcakery. She helped reaffirm various strategies
and ideas that were put into developing this third product.
Customer Interview #22: Male, Early 20s. He was interviewed about the new third
product, Some Like It Sweet Cupcakery. He helped reaffirm various strategies
and ideas that were put into developing this third product.
Customer Interview #23: Female, Early 20s. She was interviewed about the new third
product, Some Like It Sweet Cupcakery. She helped reaffirm various strategies
and ideas that were put into developing this third product.
Customer Interview #24: Male, Early 20s. He was interviewed about the new third
product, Some Like It Sweet Cupcakery. He helped reaffirm various strategies
and ideas that were put into developing this third product.
Customer Interview #25: Female, Early 20s. She was interviewed about the new third
products, Some Like It Sweet Cupcakery. She helped reaffirm various strategies
and ideas that were put into developing this third product.
48
Articles
Article #1: Ritchie, Erika I. "Frostings Pastry Chef Debuts Valentine Line." The Orange
County Register. 11 February 2011. Published on Web. 22 February 2013.
<http://www.ocregister.com/articles>. This article is an interview with the head
chef of Frostings Cupcakes that provides a look into her plans to keep
customers coming through the doors despite a small decline in the cupcake fad.
Article #2: Turner, Kristen. "Health Beauty Life Magazine." Health Beauty Life
Magazine. 05 November 2012. Published on Web. 22 February 2013.
<http://www.healthbeautylife.com/caseys-cupcakes/>. This article is a review of
Casey’s Cupcakes that gives background information on the business and
states some of the objectives and product details for this company.
Article #3: Hinshaw, Michael. "5 Lessons Your Company Can Learn From the Cupcake
ATM." Blog Post. ​
MCorpConsulting.com​
. MCorp Consulting, 6 December 2012.
Published on Web. 23 February 2013 <http://insights.mcorpconsulting.com>
This article speaks about the ATM that Sprinkles has implemented into their
business to satisfy customers 24/7. This can help out in the technology area of
the TMP.
Article #4: Whitelocks, Sadie. "Move over Cupcakes! Cake-cups Packed with Sponge
Crumbs and Frosting Layers Are the next Big Baking Trend." DailyMail.com. 22
January
2013.
Published
on
Web.
25
February
2013.
<http://www.dailymail.co.uk>. This article talks about current trends in the
industry/trends that are on the rise, which I can use in the marketing
environment portion of the TMP.
Article
#5: ​
Brassfield, Marissa. The Rise of the Cupcake (digital image).
CalorieLab.com. 05 February 2013. Published on Web. 06 March 2013.
<http://calorielab.com>. This article and image can be used for data and
numbers that I can put in the industry potential section and the current trends
section.
Article #6: Wood, Laura. "Research and Markets: Evaluate the Attitudes, Needs and
Behavior of Consumers within the Cakes & Pies Market in the United States."
Newswire (2006). ​
LexisNexis Academic​
. Web. 14 March 2013. This article has a
lot of information on consumer behavior in this industry, and the trends that
keep consumers interested.
Article #7: Reynolds, Matt. "ARBE Shows Changing Face of Retail Baking." Modern
Baking 07 October 2007. LexisNexis Academic. Web. 15 March 2013. This
article can be useful for the industry potential and consumer behavior because
the author speaks about the changes that are happening for people who are
interested in starting a business in this industry.
49
Article #8: Turner, Jeanne. "Individual Pack Sales Affected by Economy." Baking
Management 01 June 2009. LexisNexis Academic. Web. 15 March 2013. This
article speaks about packaging and the little things that influence consumer
behavior – really relevant to the consumer behavior section.
Article #9: Hennessy, Maggie. "Top 50 Foodservice Bakeries: New Concepts Set to
Shake Things up." Modern Baking 11 Dec. 2012. LexisNexis Academic. Web. 16
March 2013. This article can be used in the consumer behavior section, and the
industry potential/current trends sections, because the author speaks about
businesses implementing new concepts to attract consumers and to change up
the industry.
Article #10: “Consumers in the Bakery”. The International Dairy-Deli-Bakery
Association. October 2010. LexisNexis Academic. Web. 27 March 2013. This
article speaks about the baking industry and its consumers, focusing on the
factors that play a part in their decisions and purchasing habits.
Web-Sites
Website #1: Casey’s Cupcakes (Competitor Business #1) official website and online
store. <www.caseyscupcake.com>. 22 February 2013. This is one of the
competitors that I am researching, so their website is relevant to my research.
Website #2: Frosting’s Cupcakes (Competitor Business #2) official website and online
store. <www.frostingscupcakes.com>. 16 February 2013. This is one of the
competitors that I am researching, so their website is relevant to my research.
Website #3: Kramer Bussel, Rachel, and Nichelle Stephens. Cupcakes Take The Cake.
16 March 2013. <http://www.cupcakestakethecake.blogspot.com/>. This
website is relevant to research because it is the industry’s top blog for
cupcakes. All sorts of topics are discussed on the blog, such as trends,
recipes, competitors, etc.
Website #4: U.S. Food and Drug Administration Official Website. Sponsored by the
U.S. Department of Health and Human Services. 16 March 2013.
<http://www.fda.gov/food /default.htm> This website deals with all political and
legal issues that surround food and beverage services and products. It can be
used in the Political/Legal portion of the Marketing Environment section.
Website #5: Hoover's: A D&B Company. Rep., 11 Feb. 2013. 16 March 2013.
<http://subscriber.hoovers.com>. This website has many research reports on
different companies in the industry. It has data for the industry that I can use in
the industry potential section.
50
Website #6: Sprinkles Cupcakes: The Original Cupcake Bakery. Candace Nelson,
Founder. 17 March 2013. <http://www.sprinkles.com>. This website is relevant
because this company is one of the direct competitors in the industry and the
originator of cupcake bakeries.
Website #7: Mrs. Fields Cookies. Debbi Fields, Founder. Mrs. Fields Gifts, Inc. 17
March 2013. <http://www.mrsfields.com/>. This website is relevant because this
company is a top indirect competitor in the industry, and the originator of cookie
bakeries.
Website #8: Dots Cupcakes. Hyo Kwan, Founder. 16 March 2013.
<http://www.dotscupcakes.com/>. This website is relevant because Dots is a
medium sized bakery in the area that competes with the two competitors that I
am researching.
Website #9: Frosted Cupcakery. Nancy and Stacia Hanley, Co-Founders. 16 March
2013. <http://www.frostedcupcakery.com/>. This website is relevant because
Frosted is in direct competition with the two competitors and is roughly the
same size business.
Website #10: Beverly’s Best Bakery. Jennifer and Dirk Williams, Co-Owners. 18 March
2013. <http://www.beverlysbestbakery.com/>. This website is relevant because
it is a long-established bakery in the area, that is a competitor of the two
companies that I am researching.
Website #11: Wildflour Cupcakes. <http://www.wildflourcakes.com/>. 19 March 2013.
This website is the company website for a small business bakery in the area that
is direct competition with the two companies that I am researching.
Website #12: Corner Bakery. <http://www.cornerbakerycafe.com/>. 25 March 2013.
This website is a company website for an indirect competitor – a bakery café
that offers similar products as the bakeries but is not limited to just cupcakes.
Website #13: Panera Bread. <http://www.panerabread.com/>. 25 March 2013. This
website is a company website for an indirect competitor – a bakery café that
offers similar products as the bakeries but is not limited to just cupcakes.
Website #14: Babycakes, NYC. <http://www.babycakesnyc.com>. 10 April 2013. This
website is a company website for a direct competitor – a bakery that specializes
in allergy-sensitive baked goods. 51