By Laura Timciuc Malu Crespo Tina Wei Zoey Fan Badir AlNajjar Akram Khalil 1 Table Of Contents 2 Background Background Key Issues and Problems ID: 409825
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Slide1
Sprinkles Cupcakes at UTD
By: Laura Timciuc Malu Crespo Tina Wei Zoey Fan Badir Al-Najjar Akram Khalil
1Slide2Table Of Contents:-
2BackgroundBackgroundKey
Issue’s and Problems
M
arket
Research
Market Research
Competition
Consumer &
Buying Behavior
Analysis
Segmentation and Targeting
Perceptional
Mapping
Evaluation of Alternatives
SWOT
Analysis
Promotion
Promotion plan
Success MetricsSlide3
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.3Slide4Continued
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.4Slide5
There is no dessert place on campus where students can go. Students residing on campus may not have a ride to get dessert.If you leave campus to buy a dessert you may not find parking when come back.
Students may not have time to leave to get a dessert from out.Key Issue’s and Problems5Slide6
Market Research
6Slide7
Market Research- Secondary Data -
Sprinkles Case Study (July 13, 2009) Why Cupcakes? Why Sprinkles?It addresses consumer’s 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 café style with a relaxed ambiance.It it more affordable than other desserts.7Slide8
Market Research-Secondary Data- by TLC, November 2011
810 Most Popular Cupcake FlavorsWhy These Flavors?
10-) Vanilla with White Frosting
It is very popular and is good for any occasion
9-) Pumpkin
It is used in Halloween parties and throughout the month of October
8-) Banana
It taste like Banana Bread and is comforting
Best with: any berry-flavored icing
7-) Coffee
People love coffee
Best with: chocolate, vanilla, butter scotch, almond, & raspberry icing Slide9
Market Research-Secondary Data- by TLC, November 2011
96-) Dark ChocolateIt causes receptors in the brain to chemically induce feelings of pleasure.5-) LemonSpecially made for people that like a little sour with their sweet
Best with: tangy yellow frosting
4-) Peanut Butter
They are popular because they are not too sweet
10 Most Popular Cupcake Flavors
Why These Flavors?
Best with: peanut butter, chocolate, banana, or honey icingSlide10
Market Research-Secondary Data- by TLC, November 2011
1010 Most Popular Cupcake FlavorsWhy These Flavors?3-) Carrot Cake
Delicious, chic, and sweeter than most vegetable desserts
Best with: cream cheese icing
2-) Red Velvet
Think: Red Velvet Cake miniature! It is trendy and has less calories than other cupcakes
1-) Chocolate with Vanilla Icing
Classic, traditional, and popular around the world.
Best with: cream cheese icingSlide11
Consumer & Buying Behavior
Good amount of students living on and off campus were surveyed.Our short survey contained six questions:1.Have you heard of Sprinkles Cupcakes?2.Have you eaten cupcakes in the last two weeks?3.Where do you usually purchase cupcakes?4.Which events would you like to serve cupcakes at?5.Rank attributes that are important to you when you are purchasing cupcakes?6.Circle top favorite flavors of cupcakes you prefer to buy.11Slide12
Consumer & Buying Behavior
Our results shown below after surveying student.60% of students have not eaten cupcakes in the past 2 weeks.Purchasing cupcakes:Grocery stores: 55%Sprinkles Stores: 40%Other bakeries: 5%By opening a new location on campus we can create awareness and attract more customers. 12Slide13
Most important factor when purchasing cupcakes to UTD customers
Market Research Primary Data - Consumer BehaviorSlide14
Market ResearchPrimary Data
14Top 3 flavors UTD customers preferSlide15
Market ResearchPrimary Data
Which event would you like to serve cupcakes?Slide16
Competitors
ProsThe 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.16
Cons
Over priced cupcakes.
Only focuses on cupcakes.
Cupcakes aren't preferable to some people.
Might target a limited amount of students.
Health conscious. Slide17
Competitors- cupcake bakeries -
17
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 75081Slide18Analysis
18Slide19
PriceEach cupcake will cost $3.25.Discounts:First 20 people on the third Tuesday of every month will receive a free cupcake!!Buy 3 dozen cupcakes get a dozen cupcakes free.First 100 customers get a free cupcake on opening day.19
Product
Sprinkles Cupcakes sells freshly baked cupcakes every single day.
Each cupcake is made of rich organic ingredients to ensure that people are eating the best cupcakes.
Each cupcake is wrapped individually in a box
Our four main cupcakes that we will provide
Red Velvet
Chocolate
Strawberry
Vanilla Slide20
Place
Sprinkles will be a store on campus located in between the Student Union and the Engineering buildingThe 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 20Slide21
Sprinkles New Location
New Sprinkles Location on campus:In front of the Dining Hall Between the Student Union andThe Engineering Building21Slide22
Segmentation and Targeting
Age Group 18-22 years oldCollege students living on and off campusSingle, dating, or married People who NEED and WANT freshly baked specialty cupcakes on campus.22Slide23
Perceptual Map
23Slide24
Evaluation of Alternatives
24Flavor
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)
4.0Slide25
SWOTStrengths
Great on campus location near dining hallNo other dessert place on campusSpecialty flavors Natural and premium ingredientsGluten free and Vegan options available WeaknessesCommuter school so a lot of people have carsMost customers are on a college student budgetCupcakes are pretty pricy at $3.25 a pieceCupcakes are high in fat and calories25Slide26
SWOTOpportunities
Different organizations on campus can serve cupcakes at meetingsOffer packages to be delivered to apartments or dorms for peoples birthdaysContests available to bring awarenessOnly store on campus that sells dessert; CupcakesThreatsLocal cupcake shops within walking distance Frozen yogurt is a healthier choice and a new fad amongst studentsCost of ingredients are increasing The dining hall may open their own area for desserts to meal plan students. 26Slide27
Cross Reference
27Only 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. 4. Use the best ingredients to keep the amount of calories downSlide28
Cross Reference
28The 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 4. Cost of ingredients are increasing Slide29
Promotion Slide30
Media
PriceFacebookFreeFlyer$4250 (12500 Flyers in total $0.34/Flyer)School New paper
$2,450 ($350 ad/month on front
page of The mercury news paper. 7 month)
Poster
$468 (20 Poster $23.40/Poster)
Email (
Zmail
)
Free
Twitter
Free
YouTube
Free
Promotion PlanSlide31
Media
PriceDirect Mail$5,400 (6 month, 3 zip codes)Discount Promotion$4680 ((1)$455+(2)$3900+(3)325)Facebook ads
$2,560 ($
0.64 per click, 1,000 clicks per school network)
Google Ad words
$1,000 (14,800 clicks, 100 days)
Local radio
$19,000(Two
months
)
Vehicle Graphics
$2,000(2cars)
On
campus Promotional Events
$4,000(1
time/semester, $2,000/events
)
Total
$45,808
Promotion planSlide32
Sprinkles Cupcakes
tweeter page
Sprinkles Cupcakes
Facebook Page
Sprinkles Cupcakes
YouTube pageSlide33
Sprinkles Cupcakes
Flyers & Poster
Sprinkles Cupcakes
vehicle graphic Slide34
Sprinkles cupcakes ADs
on school newspaper Slide35
Sprinkles cupcake
On campus promotional eventsSlide36Success 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.Slide37Source 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-11e1-9492-001a4bcf6878/501c3e3a99ac8.pdf.pdf (School newspaper)http://www.larchmontbuzz.com/larchmont-village-news/sprinkles-cupcakes-coming-to-the-grove
/
(Sprinkles cupcake-coming Pic)
http://
www.facebook.com/photo.php?fbid=10151908050808029&set=a.74448123028.76428.40028693028&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-van-coming-to-oc/24967
/
(Cupcakes Vehicle promotion Pic)
http://recipes.howstuffworks.com/food-facts/10-most-popular-cupcake-
flavors.htm
(Secondary Data for Market Research)
http://www.marketresearch.com/map/prod/2391899.
html
(Sprinkles Case Study)Slide38
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