My Kind of Cakes :

an expansion
dilemma
Case Analysis

Group 5
Section A
MKOC
MKOC opened in 2011 in tiny lane of Ghaziabad city with an investment of Rs.5 lakhs by owner
Sparsh Kapoor as an extension of family business of bakery since 1954

Focus on Young crowds around the area

Kapoor strives to make each customer experience unique

Skilled chefs, soft-skill trained employees

Variety of customized bakery products and decorative items for parties, get-togethers

Home delivery service along with customized offerings

Bakery offerings- cakes, pastries, savories, theme based cakes, dry cakes

Target revenue of 50 Million (INR) by 2020 either through expansion or through franchise rollouts
MKOC early day Success Factors
•Customizable, theme based and designed cakes as per customer demand
•Low pricing as compared to competitors
•Location advantage of being closer to College (IMT), leading companies,schools
•High focus on customer experience

•Top quality food standard - ‘freshness’ priority

•Cakes in variety of sizes and designs -> unique service for small orders

•Well-trained behaviour of staff

Customer Expectations
● Variety of Sizes, customizable offerings
● Convenience of low waiting time and home delivery
● High quality at low price
● Cool place to hang out at
● Discounts, loyalties
● High level of customer service
CRM & MKOC
•Tracking order history to keep track of individual & cluster data of
customers
•Helps in designing personalized & targeted marketing campaigns
• Increase in operational Efficiency
•Get insights on churn and defection rate & take arrestive measures
•Simplified and structured feedback management
•Might help in developing franchise plans in the future
•Analysis structured data can be used to roll out promotions and loyalty
programs for specific customer segmentations, reducing cost
Loyalty Program for MKOC
Focus of loyalty programs on
● increasing average order value
● incentivizing bulk purchase
● Incentivizing purchase of higher quantity
● Increase frequency of visits
● acquire new customers
Loyalty Program
● Reward a customer for every time they make a purchase from MKOC. Value
of your loyalty points to be high enough for the customer to come back again
● Run promotions every day on bulk and high-quantity order for sales to go up
● Offer discounts for selective customers (college students) after 7 pm on
selective products every day to prevent products from being wasted and to
boost sales
● Reward customers every time they refer someone from their circle to the
bakery, give high discount on first order
● Tie reward point with Social media engagement (Facebook)
Loyalty Program : Pros & Cons for MKOC
Advantages:

● Increased sales
● Customer retention
● Increase in Brand awareness
● New customer acquisition
● Better customer relationship
● May provide avenue for higher margins
● Analyze customer buying pattern to better price offerings
Loyalty Program : Pros & Cons for MKOC
(contd.)
Disadvantages:

● High cost of launch and running loyalty programs in absence of

decent sales
● Customers may get used to discounts & pick low-cost consumption
trends
● Easy immitable by competitors
● Misuse of offers,coupons
Thank You