Professional Documents
Culture Documents
By: Laura Timciuc Malu Crespo Tina Wei Zoey Fan Badir Al-Najjar Akram Khalil
Table Of Contents:-
1.
Background
Background Key Issues and Problems
2.
Market Research
Market Research Competition Consumer & Buying Behavior Segmentation and Targeting Perceptional Mapping Evaluation of Alternatives SWOT Analysis
3.
Analysis
4.
Promotion
Promotion plan Success Metrics
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Sprinkles Background
Sprinkles is a Beverly hills based cupcake bakery chain established in 2005 and was founded by Candace and Charles Nelson. It is considered to be the first cupcake bakery. It started in 2002 when Candace/Charles Nelson decided cupcakes needed to stop being the back up for cakes. On April, 13th 2005 Sprinkles opened for the first time and their first day they sold out in 3 hours and around 2,000 cupcakes were sold that week.
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Continued
Sprinkles have 10 locations now and plan to open 15 more including cities in London, Tokyo etc. Sprinkles offer Vegan and Gluten-Free cupcakes, and even dog-food cupcakes. The cupcakes are baked daily and are free from preservatives, Trans- fats, and artificial flavors.
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Market Research
Market Research - Secondary Data Sprinkles Case Study (July 13, 2009) Why Cupcakes? Why Sprinkles?
- It addresses consumers comfort and indulgence needs. - Recession has encouraged consumers to seek comfort foods that have indulgence qualities. - Work and school stress related as well as emotional instability makes for sweet cravings. - Just like Starbucks: The Sprinkle store has a caf style with a relaxed ambiance. - It it more affordable than other desserts.
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Market Research
-Secondary Data- by TLC, November 2011
7-) Coffee
Best with: chocolate, vanilla, butter scotch, almond, & raspberry icing
Market Research
-Secondary Data- by TLC, November 2011
Market Research
-Secondary Data- by TLC, November 2011
Market Research
Primary Data - Consumer Behavior
Flavor
Presentation
Price
Calories
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Market Research
Primary Data
10% 10% Red Velvet 45% Chocolate Strawberry Vanilla 35%
Market Research
Primary Data
Holidays 10% Birthdays 45% Events on Campus 35% Parties 10%
Competitors
Pros
The only bakery located on campus. Available for everyone outside campus too. It is a branch of a known brand bakery. Great taste & variety of flavors. Host events easier. New study spot.
Cons
Over priced cupcakes. Only focuses on cupcakes. Cupcakes aren't preferable to some people. Might target a limited amount of students. Health conscious.
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B La Rosette Bakery 581 West Campbell Rd, Richardson 75080 D Cake Carousel 1002 North Central Expy, Richardson 75080 A Trailercakes 740 East Campbell Rd, Richardson 75081
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Analysis
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Sprinkles Cupcakes sells freshly baked cupcakes every single day. Each cupcake is made of rich organic ingredients to ensure that Price people are eating the best cupcakes. Each cupcake will cost Each cupcake is wrapped $3.25. individually in a box Discounts: Our four main cupcakes that we 1. First 20 people on the will provide third Tuesday of every Red Velvet month will receive a free Chocolate cupcake!! Strawberry 2. Buy 3 dozen cupcakes Vanilla
Product
get a dozen cupcakes free. 3. First 100 customers get a free cupcake on opening day.
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Place
Sprinkles will be a store on campus located in between the Student Union and the Engineering building The inside of the store will contain a bakery where the cupcakes will be baked fresh everyday. The inside will be very vibrant with huge glass windows to look inside. Lots of seating will be placed for students to sit and eat. The inside will be painted pale pink. There will be several televisions for people to just relax and enjoy as well. The all cupcakes will be placed in a glass case
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Perceptual Map
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Evaluation of Alternatives
Flavor Presentation Price Calories Total Sprinkles .4 (10) .3(7) .2 (9) .1(8) 8.7
La Rosette
.4 (7)
.3(8)
.2 (7)
.1(5)
7.1
Trailercakes .4 (5)
.3(9)
.2 (5)
.1(4)
6.1
Store Brand
.4(2)
.3(3)
.2(10)
.1(3)
4.0
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SWOT
Strengths Great on campus location near dining hall No other dessert place on campus Specialty flavors Natural and premium ingredients Gluten free and Vegan options available Weaknesses Commuter school so a lot of people have cars Most customers are on a college student budget Cupcakes are pretty pricy at $3.25 a piece Cupcakes are high in fat and calories
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SWOT
Opportunities Different organizations on campus can serve cupcakes at meetings Offer packages to be delivered to apartments or dorms for peoples birthdays Contests available to bring awareness Only store on campus that sells dessert; Cupcakes Threats Local cupcake shops within walking distance Frozen yogurt is a healthier choice and a new fad amongst students Cost of ingredients are increasing The dining hall may open their own area for desserts to meal plan students.
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Cross Reference
1. Only store on campus that sells dessert; Cupcakes. 2. Offer packages to be delivered to apartments or dorms for peoples birthdays 3. Different organizations on campus can serve cupcakes at meetings.
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Cross Reference
1. The dining hall opens up a dessert area for students who have a meal plan. 2. Frozen yogurt is a healthier choice and a new fad amongst students. 3. Local cupcake shops within walking distance
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Promotion
Promotion Plan
Media Facebook Flyer School New paper Price Free $4250 (12500 Flyers in total $0.34/Flyer) $2,450 ($350 ad/month on front page of The mercury news paper. 7 month) $468 (20 Poster $23.40/Poster)
Poster
Promotion plan
Media Direct Mail Price $5,400 (6 month, 3 zip codes)
Discount Promotion
Facebook ads Google Ad words Local radio Vehicle Graphics On campus Promotional Events Total
$4680 ((1)$455+(2)$3900+(3)325)
$2,560 ($0.64 per click, 1,000 clicks per school network) $1,000 (14,800 clicks, 100 days) $19,000(Two months) $2,000(2cars) $4,000(1 time/semester, $2,000/events) $45,808
Success Metrics
Breakeven $80,000($50,000 investment for promotion, $30,000 capital) Reach at least 1000 customers in the first half year. Gain additional 2000 follower and likes on Twitter and Facebook. At Least 15,000 people attend on campus every promotional events that we host.
Source Reference
http://www.zazzle.com/cr/design/pt-zazzle_flyer (Flyer) http://www.zazzle.com/cr/design/pt-zazzle_print (Poster) https://twitter.com/sprinkles (Sprinkles on twitter) http://www.facebook.com/sprinkles (Sprinkles on Facebook) http://www.youtube.com/sprinkles (Sprinkles on Youtube) http://bloximages.newyork1.vip.townnews.com/utdmercury.com/content/tncms/ assets/v3/editorial/7/a9/7a9ce254-ddaf-11e1-9492001a4bcf6878/501c3e3a99ac8.pdf.pdf (School newspaper) http://www.larchmontbuzz.com/larchmont-village-news/sprinkles-cupcakescoming-to-the-grove/ (Sprinkles cupcake-coming Pic) http://www.facebook.com/photo.php?fbid=10151908050808029&set=a.7444812 3028.76428.40028693028&type=1&theater (On campus promotion Pic) http://www.flickr.com/photos/abbearden/3679271954/ (Flyer Pic) http://fastfood.ocregister.com/2009/06/23/sprinkles-on-wheels-cupcake-vancoming-to-oc/24967/ (Cupcakes Vehicle promotion Pic) http://recipes.howstuffworks.com/food-facts/10-most-popular-cupcakeflavors.htm (Secondary Data for Market Research) http://www.marketresearch.com/map/prod/2391899.html (Sprinkles Case Study)
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