PPT

make ppt about (SPRINKLES.edited (1)) and ( CompetitiveAnalysis ) 

FinalPresentation of Marketing Planning Project

Type of Assignment: Individual or Team

Total Points: 100 total points

Assignment Objective(s):

By the end of this project, students should be able to:

1. Apply marketing theories and concepts to a specific hospitality or tourism enterprise.

1. Use strategic marketing planning terms, concepts and methods.

1. Demonstrate analytical, research and observational skills.

1. Justify marketing-related decisions using data and logic.

1. Express ideas in writing citing sources appropriately for a business document.

1. Presents findings compellingly and with poise, supported by creative, engaging visuals.

This assignment is the signature assessment for the Hospitality Management Program Learning Outcome PLO-4: Marketing: Students will be able to apply marketing and sales principles, tools and techniques to solve hospitality business problems.

Assignment Description:

This assignment requires students to present a comprehensive marketing plan for a hospitality business, assembled from 8 smaller assignments developed throughout the course. The deliverable is in powerpoint associated with a 15 – 20 minutes in-class presentation demonstrating application of the following 8 core marketing concepts: Environmental Analysis, Market Segmentation, Internal Analysis and Objectives, Competitive Positioning, Marketing Strategies (4Ps), Promotional Mix, Value Proposition and Communications Strategy, and Budget/ROI.

Assignment instructions: Students should create a powerpoint presentation that summarizes the marketing planning conducted in assignments 1 – 8. The powerpoint should be no more than 15 – 20 slides and be able to be presented in approximately 15 minutes covering the following topics:

1. Name and Description of the Hospitality or Tourism Business

1. Macro-Environmental Analysis

1. Target Segment Profiles

1. Internal Analysis and Objectives

1. Competitive Analysis and Positioning

1. Marketing Strategies (the 4Ps)

1. Promotional Mix (online and offline)

1. Communications Strategy (include a Value Proposition)

1. Budget and ROI (Return on Investment)

The powerpoint slides should be visual, engaging, and creative with no typos or grammatical errors. Presenters should show enthusiasm and confidence and be able to answer questions about their recommendations.

Grading Rubric: See detailed grading rubric for this assignment.

Final Presentation of Marketing Planning Project Rubric

100 points

Assignment description: This assignment requires students to present a comprehensive marketing plan for a hospitality business, assembled from 8 smaller assignments developed throughout the course. The deliverable is in powerpoint associated with a 15 – 20 minutes in-class presentation demonstrating application of the following 8 core marketing concepts: Environmental Analysis, Market Segmentation, Internal

Analysis

and Objectives, Competitive Positioning, Marketing Strategies (4Ps), Promotional Mix, Value Proposition and Communications Strategy, and Budget/ROI. This assignment is the signature assessment for the Hospitality Management Program Learning Outcome PLO-4: Marketing: Students will be able to apply marketing and sales principles, tools and techniques to solve hospitality business problems. The PLO is assessed again at the end of the program (Senior Integrative Project or Capstone).

Assignment outcomes:

1. Appropriately applies marketing theories and concepts to a specific hospitality or tourism enterprise.

2. Uses strategic marketing planning terms, concepts and methods.

3. Demonstrates analytical and research skills.

4. Uses data logically to justify marketing-related judgments.

5. Expresses ideas in writing for a business document, citing sources appropriately.

6. Presents findings compellingly and with poise, supported by creative, engaging visuals.

Category	Outcome Description	Exemplary	Competent	Developing	Beginning	Unacceptable
Assignment -Specific
Applies Theories and Concepts (40 points)	Environmental Analysis (5)	Identifies all relevant outside forces (2.5)	Identifies many relevant outside forces (2)	Identifies some relevant outside forces (1.75)	Identifies few relevant outside forces (1.5)	Identified no relevant outside forces ( 0)
Explains all their implications (2.5)	Explains most of their implications (2)	explains a few of their implications (1.75)	Poor explanation of implications (1.5)	Doesn’t explain implications (0)
Market Segmentation (5)	Identifies 3+ relevant target segments (2.5)	Identifies 3 target segments but one lacks relevance (2)	Identifies < 3 relevant target segments or more than one lacks relevance (1.75)	Identifies only 1 target segment or all lack relevance (1.5)	Identified no relevant target segments ( 0)
Profiles thoroughly detail demo, psycho and behavioral characteristics (2.5)	Profiles detail most demo, psycho and behavioral characteristics (2)	Profiles lack details in one category of characteristics (1.75)	Profiles lack details in two or more categories (1.5)	Doesn’t provide profiles (0)
Internal Analysis and Objectives (5)	SWOT lists > 4 items per category and differentiates internal and external factors (2.5)	SWOT lists 4 items per category and differentiates internal and external factors (2)	SWOT lists < 4 items per category or confuses internal and external factors (1.75)	SWOT is missing categories (1.5)	SWOT is missing ( 0)
Objectives are SMART (1)	Objectives are mostly SMART (.75)	Objectives are missing some SMART elements (.75)	Objectives are missing most SMART elements (.5)	All SMART elements are missing (0)
Objectives relate to external and internal analysis (1.5)	Objectives mostly relate to internal and external analysis (1.25)	Objectives loosely relate to internal and external analysis (1)	Objectives don’t follow from external or internal analysis (1)	Objectives are missing or unconnected to external or internal analysis (0)
Competitive Positioning (5)	Correctly analyzes direct and indirect competition (3)	Analyzes most of the direct and indirect competition (2.25)	Analyzes some competitors but confuses direct and indirect (2)	Competitive analysis is incomplete (1.75)	No competitors identified or there is no analysis provided (0)
Competitive advantage is well articulated (2)	competitive advantage is adequately (1.75)	competitive advantage is poorly identified (1.5)	Competitive advantage is lacking (1.25)	No competitive advantage is provided (0)
Marketing Strategies (4Ps) (5)	Recommends >3 Product, Price or Place strategies (2.5)	Recommends 3 Product, Price or Place Strategies (2)	Recommends at least 2 Product, Price or Place Strategies (1.75)	Recommends <2 Product, Price or Place Strategies (1.5)	No Product, Price or Place Strategies (0)
Strategies strongly support marketing objectives (2.5)	Strategies mostly support marketing objectives (2)	One or more strategies fail to support marketing objectives (1.75)	Strategies fail to support marketing objectives (1.5)	Makes no connection to marketing objectives (0)
Promotional Mix (5)	Chooses >3 appropriate promotional media per target market (3)	Chooses 3 appropriate promotional media per target market (2.5)	Chooses 2 promotional media per target market or some of the media are inappropriate (2.25)	Chooses <2 Promotional media per target and most are inappropriate (2)	No promotional media are selected for some targets (0)
Timing and frequency are exemplary (2)	Timing and frequency are good (1.5)	Timing or frequency are inadequate (1.25)	Missing either timing or frequency (1)	Timing and Frequency are missing (0)
Value Proposition and Communication Strategy (5)	Value proposition expresses compelling emotional benefits and supporting facts (2.5)	Value proposition expresses adequate emotional benefits and supporting facts (2)	Value proposition expresses few emotional benefits or confuses with some supporting facts (1.75)	Value Proposition does not express emotional benefits and confuses with supporting facts (1.5)	No value proposition provided (0)
Messages are highly motivating for target markets and objectives. (2.5)	Messages are somewhat motivating for target markets and objectives. (2)	messages are a mix of motivating and un-motivating for target markets and objectives. (1.75)	Messages are not motivating for target markets and objectives. (1.5)	No or incomplete messages provided (0)
Budgeting and ROI (5)	Budget is complete and realistic (2.5)	Budget is realistic but has small gaps (2)	Budget is realistic but has significant gaps (1.75)	Budget is sketchy or unrealistic (1.5)	No budget provided (0)
Correctly calculates ROI with full explanation (2.5)	Correctly calculates ROI with some explanation (2)	Correctly calculates ROI with no explanation (1.75)	ROI is incorrect and explanation is missing (1.5)	No ROI provided (0)
General Requirements
Critical thinking (15 points)	Relevance	Only uses data that is correct and appropriate to the problem (5)	Most of the data is correct and appropriate to the problem (4)	Only some data is correct or appropriate to the problem. (3.5)	Data is completely lacking or incorrect (3)	No relevant data (0)
Analysis	Interprets data correctly with full understanding of implications. (5)	Interprets data mostly correctly with good understanding of implications.(4)	Misinterprets some data or shows limited understanding of implications. (3.5)	Relies on limited information or misinterprets it. Doesn’t recognize implications. (3)	No analysis provided (0)
Logic	Conclusions follow logically from information provided. (5)	Conclusions mostly follow logically from information provided (4).	There is some disconnection between conclusions and information provided. (3.5)	Conclusions do not follow logically from information provided. (3)	No conclusions provided (0)
Research (15 Points)	Scope	Research is comprehensive (5)	Research is extensive but incomplete (4)	Research is adequate but incomplete (3.5)	Research is insufficient and incomplete (3)	No research provided (0)
Credibility	Cites credible sources from (5)	Cites mostly credible sources (4)	Cites some credible and some questionable sources (3.5)	Cites slanted or questionable sources (3)	Does not cite sources (0)
References	Includes many matching in-text citations and references (3)	Includes some in-text citations and references or some don’t match (2.5)	Includes a few in-text citations and references; many don’t match (2.25)	In-text citations or references are missing or don’t match at all (2)	No in-text citations or references (0)
All references and in-text citations are properly formatted in APA (2)	Most references and in-text citations are properly formatted in APA (1.5)	Some references and in-text citations are properly formatted in APA (1.25)	References and in-text citations are not properly formatted in APA (1)	No references (0)
Written Communication (20 points)	Mechanics	Writing is clear and concise (5)	Writing is mostly clear and concise (4)	Writing is unclear and difficult to follow (3.5)	Writing is very hard to understand and follow (3)	Writing does not meet college level expectations (0)
Vocabulary	Incorporates terminology correctly (5)	Incorporates some terminology, mostly correctly (4)	Rarely incorporates terminology or occasionally misuses it. (3.5)	Fails to use or misuses terminology (3)	No terminology used (0)
Organization	Ideas are organized (5)	Ideas are mostly organized (4)	Ideas are somewhat disorganized (3.5)	Ideas are very disorganized (3)	Ideas are impossible to follow (0)
Grammar and Typos	Grammar and spelling is correct throughout (5)	Grammar and spelling is mostly correct(4)	There are numerous errors in grammar and spelling. (3.5)	Riddled with grammatical errors/typos (3)	Excessive number of grammatical errors/typos (0)
Oral Communication (5 points)	Content	Presentation is compelling and generates audience enthusiasm (2)	Presentation is interesting and holds audience’s attention (1.5)	Parts of presentation are interesting for the audience (1.4)	Presentation is uninteresting and loses audience (1.25)	Presentation is incomplete or garbled (0)
Delivery	Presenter shows confidence and poise. (2)	Presenter shows some confidence and poise (1.5)	Presenter’s confidence and poise fluctuates (1.4)	Presenter is lacking confidence and poise (1.25)	Presenter is unable or unwilling (0)
Visuals	Visuals are creative and engaging (1)	Visuals are somewhat creative and engaging (.75)	Visuals lack creativity but cover the material adequately (.7)	Visuals are unappealing and difficult to follow (.5)	No visuals provided (0)
Timeliness (5 points)	Timeliness	Submitted on time (5)	< one day late (4)	2 days late (3.5)	3 – 5 days late (3)	>5 days late (0)
90 – 100 points	80 – 89 points	70- 79 points	60 – 69 points	0 – 59 points

Running Head:

SPRINKLES CUPCAKES ATM MARKETING PLAN

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SPRINKLES CUPCAKES ATM MARKETING PLAN

SPRINKLES CUPCAKES ATM MARKETING PLAN

Student’s Name:

Institution:

Introduction

Sprinkles cupcakes bakery was founded by Candace Nelson and Charles Nelson in 2005 in Beverly Hills. Sprinkles cupcakes ATM Chicago is an automated bakery business that specializes in cupcakes. The firm is known in Chicago as the only bakery business which offers 24 hours ATM services. The company uses technology to provide its fresh cupcakes through ATM services and is known as the first bakery to launch ATM services. The company targets customers in a hurry and has no time to walk into a bakery to enjoy cupcakes.

Internal Analysis and objectives

SWOT Analysis

1. Strengths

One of the strengths of the brand is its products. The baker offers very great-tasting cupcakes. When compared to other bakeries in Chicago, sprinkles cupcakes are served fresh and yummy. The cupcakes come in various flavors, and thus customers have varieties to choose from. This makes the cupcakes the preference of most of the customers in the city. The cupcakes are made of real ingredients; the customers know what the cupcakes are made of. This has given the brand perception of authenticity. The consumers feel that the brand is real and have no fear of consuming it (Gürel & Tat, 2017).

The company offers convenience that lacks in other bakeries. With the ATM, the customers can purchase very fresh cupcakes without the need to walk into a bakery or to queue for services. The ATM services run for 24 hours, and thus customers can get the cupcakes any time of the day they have a craving for sprinkles cupcakes. The company also has different places where it can sell cupcakes.

The bakery has many ATMs all over Chicago where customers can enjoy the cupcakes and thus has access to a broad market. Lastly, the bakery has social media presence and is very friendly. Customers can ask any questions on social media about the products, and thus the consumers can interact with the brand (Li et al., 2021). Social media allows the brand to receive feedback on its products and improve on the areas where consumers express dissatisfaction. The friendliness of customer care makes it easy for consumers to voice complaints and compliments.

2. Weaknesses

The company has become very popular for its ATM services. This popularity is becoming a weakness because of the long queues that are usually at the ATMs during rush hours and holidays. The company should focus on having more ATMs to eliminate the long lines. The lining up ends up wasting time for the customers who might be rushing into their normal daily activities. When the queues are long, then the brand cannot offer convenience, which was the objective of developing the ATM services.

The cupcakes made by the bakery are delicious, but they are a bit overpriced. When compared to other bakeries, the cupcakes from sprinkles ATM have a higher price. The higher price pushes some customers to buy from competitors offering the same products at slightly lower prices. The higher prices create a terrible first impression for the consumers who are willing to purchase the products for the first time. Thus, the brand might end up losing customers who are actually interested in buying the products.

The company is in a very competitive industry. There are so many bakeries in Chicago that sell cupcakes. Also, the market is a perfectly competitive one, and thus bakeries have the freedom to enter and exit the market without any restriction (Vlados, & Chatzinikolaou, 2019). Many bakeries are being opened in Chicago. Thus the company is struggling to maintain its market share in a somewhat saturated market. The bakery does not offer variety; apart from cupcakes, it only offers a few other products. This means that the company may risk losing its customers to competitors who offer variety on top of convenience.

3. Opportunities

The company has an opportunity to come up with a new product line. The bakery offers cupcakes and has a chance to add in new flavors and sizes of cupcakes. This is because the brand is famous, and thus, introducing a new product line will not be hard. The bakery has an opportunity to offer new products apart from cupcakes in its ATM services. The bakery should identify products that are complimentary of cupcakes such as ice cream, soft drinks, and juices and offer them in the ATMs. This will increase the sales level of the company.

The company being popular, has the opportunity to grow its services by penetrating new markets in other cities. Sprinkles cupcakes are available in other cities but do not offer ATM services in those cities. With the company’s assets and profitability, it has enough capital to venture into a new market. Expansion into new markets will be good for the company as it will make more sales and thus higher profitability. The company can utilize existing employees to launch ATMs in other cities.

Sprinkles ATM Chicago has an opportunity to diversify its operations into other related service industries. For instance, the company can invest in fast food ATMs that will offer foods like burgers, fries, and chicken. Since the target market for fast food is the same as the market for cupcakes, it will be easy to sell the products. The company can also invest in coffeehouses. Coffee goes well with cupcakes, and thus the bakery can sell their already famous cupcakes in the coffee shops.

4. Threats

One threat that faces the sprinkles bakery is the threat of losing its competitive advantage. Since the market is open for new entrants, then there might be a new bakery that will offer the same ATM services at slightly lower prices pushing the bakery out of the market. Most consumers are price-sensitive, and thus when they can get cheaper options of cupcakes, they can quickly shift their loyalty to the bakery’s competitors. The new entrants create a threat of substitutes for the bakery’s products.

Sprinkles cupcake faces a threat of shifts in demand for the product. The demand for a product refers to the number of consumers willing to consume a particular product at a given price. The company at the moment is the market leader and controls a larger share of the market. However, with an increase in new entrants, the company risks the market share decreasing. The demand for products can also go down when the customers’ preferences and tests shift towards other existing competitors. When this happens, the sales of the company will go down, and so will the profitability.

Lastly, the bakery experiences a threat of an economic downturn. The movement in the economic factors is unpredictable and affects all businesses. If the economic growth slows down in the future, consumers’ purchasing power will go down, reducing the company’s sales (Chernev, 2020). An economic downturn can be a result of increased unemployment rates that will see the marginal propensity to consume go down. Also, the company is threatened by adverse government policies and legislation that might increase taxes for the food industry, making operations costly.

Objectives

The main objective of the company is to offer affordable and quality baked goods with more convenience. The company aims to provide high quality cupcakes to its customers in a

convenient

manner through its ATMs. The bakery intends to create a brand image of an affordable yet high-quality cupcake. A pricing strategy is meant to lure more consumers who are price-sensitive to buy the products (Bora et al., 2017). The bakery intends to achieve quality by offering fresh cupcakes to its ATM vendors at any given time.

The company aims at increasing customer engagement with the brand through social media. The bakery has social media presence to interact with customers and know the improvements they need to make. Social media handles and pages have made it easier for the customers to engage with the brand and read reviews before purchasing the products. The company also intends to achieve this objective by developing relationships with social media influencers who can help push its products.

The company also aims to build a strong market. The company aims at appealing to its customers through quality and affordable products. When consumers are satisfied by the cupcakes offered, it will be easier to retain existing customers and attract new ones. The company intends to understand its customer segments and their needs, so it’s able to offer products that are suited for their needs. Sprinkles cupcakes also studies the competitors to gain a competitive advantage offer them.

Communication Strategy

The company intends to convey messages that appeal to the different customer segments using the right channels to appeal consumers. The company targets three distinct market segments whose needs vary, and thus the type of messages it will send will differ from one segment. The first market segment is young people between 16 to 35 years. The young generation will prefer more social media ads compared to the other segments. The bakery also targets different segments; individuals who hurry during rush hours and company employees who have no time for lunches. Customer journey mapping is essential for businesses (Micheaux & Bosio, 2019). Below is an analysis of the messages, touchpoints, and derailers for the different market segments.

Target Market #1: 16-35-year-olds

Great value

Google alerts to monitor for comments

Optimize website

Unanswered questions

No follow up emails

Dream

Plan

Book

Experience

Share

Loyalty Loop

Messages/Feelings

Exciting New experience

Convenient

Great reviews Awesome deals

Satisfaction Authentic

Memories friendship

Reconnect

Touch points

Provide information on local sights and entertainment

Online ads

Email marketing

Provide discounts and vouchers

Additional surprises for the youth e.g Offers

Emails to attract feedback

Good deals and discounts

Derailers

No social media presence s Unfriendly staff

No follow up emails

Extra expenses

Bad reviews

Frustration Dissapointment

No special deals or promotions

Target Market #2: Individuals who are in a hurry during rush hours

Dream

Plan

Book

Experience

Share

Loyalty Loop

Messages/Feelings

Convenient

Provide discounts and vouchers

Touch points

Online ads

Derailers

Bad reviews

No follow up emails

Important	Good value	Satisfaction Value for money	Relaxing memories
Provide easy and accessible information for the customers in a hurry	Online ads Promote social media	Provide information on local sights and entertainment	Email marketing	Special offers
No available information on search engines		No social media presence		Frustration	No special offers or discounts

Target Market #3: Company employees

Dream

Plan

Book

Experience

Share

Loyalty Loop

Messages/Feelings

Touch points

Email marketing

Derailers

No social media presence

Bad reviews

No follow up emails

Frustration

Special offers and deliveries	Educational	convenient	Satisfaction	Friendship	Memories Connected
Online ads Social media postings	Blog posts	Provide information on local assignments and sights	Optimize website	Great deals
Unanswered questions	disappointments

References

Bora, B., Borah, S., & Chungyalpa, W. (2017). Crafting strategic objectives: Examining the role

of business vision and mission statements. Journal of Entrepreneurship & Organization Management, 6(1), 1-6.

Chernev, A. (2020). The marketing plan handbook. Cerebellum Press.

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International

Social Research, 10(51).

Li, F., Larimo, J., & Leonidou, L. C. (2021). Social media marketing strategy: definition,

conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, 49(1), 51-70.

Micheaux, A., & Bosio, B. (2019). Customer journey mapping as a new way to teach data-driven

marketing as a service. Journal of Marketing Education, 41(2), 127-140.

Vlados, C., & Chatzinikolaou, D. (2019). Towards a restructuration of the conventional SWOT

analysis. Business and Management Studies, 5(2), 76-84.

3

Competitive Analysis and Positioning

Author

Institutional Affiliation

Course

Instructor

Due Date

Competitive Analysis and Positioning

Assessing the level of competition in Chicago

The business of interest in this paper is the bakery industry with a focus on cupcakes business. The Bakery business comprises of companies which produce flour-based in an oven site for immediate consumption. The typical products in this industry are, breads, pastries, pies, bagels, cakes, cupcakes, and other complementary products such as salads and sandwiches (Martínez-Monzó et al., 2013). The business picked for analysis is Sprinkles Cupcakes ATM in Chicago. The competition in the business is medium with several established competitors running the market too.

In Chicago, the revenue from the bakery Industry has been growing moderately for the last five years. However, the growth declined in 2020 due to the COVID-19 pandemic due to the fall in demand for food away from home. The fall in demand and the existence of high fixed costs such as rent have also contributed to the decline of entrants into the business. Some of the small enterprise bakeries and bakery cafes also closed off to COVID-19 (Chen et al., 2015). This could have been attributed to a fall in disposable income within the city. However, in the last months of 2020 there has been a rebound from 2020. The business which experienced a great hit were the cakes, and the pies considered as ‘luxurious’ in the baking industry (Kolak et al., 2018). Many people in Chicago chose to forego these products opting to buy bread and bagels for breakfast since they were bulkier and affordable with the reduced income. Many of the stand-alone bakeries and bakery cafes existed the market as a result.

There has been an improvement in the production systems of most bakeries leading to greater flexibility, increased productivity, and an increase in the variety of products sold. Automation especially the use of robotics in bakeries has been gaining traction in Chicago. The business is currently selling a limited variety of cupcakes due to the delivery method used in the ATMs. Competitors using automation, offering home delivery in their products in cafes, and those introducing new varieties of cakes are likely to have a wider customer base. These will negatively affect the demand of the brand’s business. There has been a reduced demand in the ATM cupcakes since most people preferred staying at home and prefer home delivery. This denies the brand its competitive edge.

Positioning Strategy

Sprinkles Cupcakes ATM Chicago can be described as market leader in the baking industry with a specific focus on the cupcakes. The company boast of being the only world’s cupcake bakery operating an ATM 24 hours and serving fresh cupcakes all through. The brand relies on consumer convenience and the technological awe that comes with such a magnificent innovation. The innovation has been able to attract a lot of media traffic, both social and mainstream media delivering free marketing for the company.

The company market segment majorly consist of young people between the age-range of 16 to 35 years. Majority in these group are students or pursuing lucrative careers especially in the corporate world. These are people who are constantly in a hurry to get things done due to their high workload. However, having some quick cupcakes early in the morning to work or school or during the day between breaks suits them well. The other consumer segment involves people on rush and in need of something to eat during odd hours. This can be informed by the geographical location of the ATM at Walton Street. The product pricing is higher due to the perceived value and convenience. The ATM cupcakes cost around $4.5 which is almost double the price of an average cupcake which is $2.5. The brand focuses on offering a luxurious consumer experience. This is supported by the positioning of other outlets of the brand in areas such as Beverly Hills, and prime locations in Atlanta, Dallas, and Las Vegas.

Analyzing direct and indirect competitors

The major forces of competition in the business arise from direct competition from other brands, threat of substitute products or services, threats of new entrants, and the bargaining powers of the buyers. The direct competition comes from several established bakery cafes that have been selling cupcakes. These cafes enjoy a loyal customer base. They have various baked options and keep their menu flexible.

In close substitutes, the business has been experiencing an increase in competition from products such as bread, and pastries since the onset of COVID-19. The products have well penetrated distribution networks and therefore are easily accessible to consumers. They are considered ‘essential’ especially in breakfast. In situations of limited disposable income, they are given priority over cupcakes. These products are majorly produced by large corporations with economies of scale and capable of easily adjusting the prices of their products in relation the market forces

The threat of new entrants into the business is minimal at the moment. Due to the recession experienced in the country as a result of COVID-19, potential new players have not been very willing to risk large capital investments required in setting up baking industries. However, there are future threats lingering. There is an ongoing shift of consumers towards healthy baked options such as gluten free, lower caloric, and low sugar items. The ever growing health campaign on consumption of these products could probably lead to a market shift. This will have serious effects on the business since most cupcakes have high sugar content. It is therefore necessary the brand begins to develop products that are more health aligned to remain relevant.

Direct and indirect competitors

Names

Types of services

Operating statistics

Price points

Primary customer base

Molly’s Cupcakes

They offer cupcakes

Casual dining restaurants.
Offer delivery and pick-up services.
Have 5 locations in Chicago
Bakery hours are majorly during the day between 8.00am – 10..00 pm

The price of the cupcakes average between $2.5 to $3

Young people and anyone out to eat something luxurious such as during a treat or date.

Lickety-Split Cupcakes

They offer cupcakes

Casual dining restaurants.
Offer delivery and pick-up services.

The price of the cupcakes average between $2.5 to $3

Young people and anyone out to eat something luxurious.

Sweet Mandy B’s

Offer cakes for special occasions, weddings, and holidays.
They offer cupcakes.
One of the stations offers cut out cookies.

Have two locations; Lincoln Park and Streeterville

The price of the cupcakes average between $2.5 to $3

Have products packaged for different consumer categories. These include younger kids, older kids, adults, special occasions, holiday, and events.

Alpha Baking Company

The company offers fresh, frozen, and retail bakery products of all kinds.
The major product offered is bread

Their distribution services cover many areas in Chicago.
Offer distribution and retail services.
Offer direct consumer home deliveries

Price depends on the type of bread.
Price of bread. Ranges between $2to $3

The family in context of ‘bread for breakfast’

Hewn Bread

The company provides bread baked through traditional systems such as stone milled. Uses organic flour and grains.
Also offers pastries, sandwiches and coffee

Both online pre-order pick up and same day walk in sales.
Hours for walk in sales are Tuesday through Friday, 7am-5pm; Saturday & Sunday, 7am-3pm. Closed Mondays

Price of bread. Ranges between $4to $10

Target consumers sensitive about their healthcare and those with a conservational attitude on their bakery products.

Aya Pastry

Breads, cakes and pastries

Pre-Ordered Online For Pickup

Price of bread. ranges between $2to $3

The family in context of ‘bread for breakfast’

Tel-Aviv Kosher Bakery

Sells challah, sweet rolls, rugelach and babka.
Focuses on breads with a Jewish origin

Offer home delivery.
Have pre-order pickup services.

Price of bread. Ranges between $10to $20 per product

Targets consumers interested in exotic bakery products from different ethnicities especially of Jewish origin

Bang Bang Pie Shop

Focuses on pies. Well positioned in providing key lime pies.
Has biscuit sandwiches, pot pies.
Provides catering events for pies but since 2020, onsite private events were cancelled

Have two location; at Logan Square and at Ravenswood.
Deliver to events fully prepared pies on order.
Allow pick-up orders.

Price of bread. Ranges between $2to $3.
A whole pie costs at an average $15.

People within the middle-income bracket organizing events.
Families in need of home deliveries.

Floriole Café and Bakery

Offers an array customized baked products such as caramelized layered croissant dough and fully prepared croissants.
Offers fruit tart and savory café dishes

Located at W Webster Avenue

Average price of a croissant at the café is $4. Café has a capacity of 80 to 100 people.

Targets consumers looking for high value bakery products during special occasions.

Roeser’s Café and Bakery

Specializes in beautiful custom cakes and tortes.
Also offers cookies and special packages during holidays.
Positions as a pioneer in the bakery industry with more than 100 years of service with an emphasis on care and quality.

Located at 3216 W North Avenue at Humboldt Park.
Offers walk-in services from Tuesday to Saturdays from 8AM to 6Pm,

Has a customized budget for customers depending on their budget expectations.
It is classified into:
Under $100
$100 – $200
$200 – $300
$300 – $400
Above $400

The facility targets consumers willing to invest value in items they purchase.

Identifying Competitive Advantage

Customer Want or Need

Your business – Sprinkles Cupcake ATM, Chicago

Competitor A – Lickety-Split Cupcakes

Competitor B – Sweet Mandy’s

Competitor C
– Molly’s Cupcakes

Competitor D – Magnolia Bakery

Value for Price

Consumers’ convenience associated with the ATMs is enough justification of value for money

Handwritten menu boards, aluminum ceiling, marbled tabletop, and pastry glass are enough to give customers a value for their price even before purchasing their cupcakes.

Value for price not highly regarded do to a lesser flexible menu

Consumers express a high satisfaction for the value that comes along with the price of the cupcakes.

Many customers express satisfaction and value for their money due to a wide variety of cupcakes.

Quality

Butter cream frosting highly valued by the consumers.
Limited variety of cupcakes.

Provides a blend of cupcakes with ice-cream.
Recommended by the Chicago Tribune as

Provided a limited variety of cupcakes. However, their quality is highly regarded,

Consumers pleased with the company’s high creativity and a wide variety of cupcakes such as Blueberry cupcake, Red Velvet, and Peach cupcakes.

Customers consider their customized cupcakes to be of high quality

Atmosphere

Suitable for fast purchases and pick-ups.
Design targeted for consumers in a rush. Less emphasis on aesthetics.

Highly spacious, well arranged tables and chairs.
Has good lighting.
A suitable environment for having an evening date or a group meeting.
Its design offers a visual appeal and is highly aesthetic.

Shorter serving times facilitated by the larger number of staff in the location. The facility is suitable for walk-in pick-up orders.

Consumers consider the environment facility as quick stop to order a cupcake or preorder pickups.

A serene quiet environment appropriate for indoor outing and couple dates.

Location

Located at 50 E Walton St (btw Rush and Ernst) Chicago

Located at 6056 N Broadway St (at W Glenlake Avenue).

Original site located at 1208 W Webster Ave (at N Racine Ave), Chicago

Main location at 2536 N Clark St (between Wrightwood and Deming), Chicago

Located at State St between Randolph St and W Washington St, Chicago.
Well positioned at less busy streets thus suitable for consumers requiring a quiet environment.

Memorability

The breathtaking experience and awe of buying cupcakes through an ATM.

Have a special package of sprinkles offered free to the customers.
Well designed and an aesthetic environment of the café.

Almost all cupcakes have a fruit flavor. Naming strategically designed to align with the fruit flavors.

The company stimulates memorability by offering very unique cupcakes, hard to find in any other facility.

Offer very unique and well packaged cupcakes.

Points of Parity

Interestingly, all the brands provide the conventional cupcakes such as red velvet, carrot, and banana chocolate. All the brands target consumers in a rush willing to pass by and order a cupcake. Each brand has its own positioning to enhance memorability among the consumers. All the brands ensure that their consumer obtain value in the money spent to maintain a wide loyalty base. All brands are also using high quality products.

Point of Difference

The major difference between Springs Cupcakes and other brands is that the company has been able to establish cupcakes ATM. Being the pioneer in the world, it has created a lot of publicity for the brand. It has also increased consumer curiosity and technological awe. Many of the consumers initially loyal to other brands are now visiting the ATM to have an experience of how it feels. The ATM is accessible 24/7. These presents the brand with a competitive edge such that it is able to serve customers late into the night and early in the morning.

However, Springs Cupcake has not been able to net the consumers requiring a quiet place to talk, hold a small meeting or relax while enjoying a cupcake. Brands like Lickety-split have been able to do this effectively. It is important for the brand to employ design strategies that improve the aesthetics of the cafes adjacent to the ATM to close the gap present. Another point of difference is a reduced variety of cupcakes sold in comparison with other brands. This could be attributed to the limited space in the ATMs. The company needs to improve ATM robotics to increase the capacity of cupcakes. There should also be voice simulations at the ATM to promote interaction.

References

Chen, D. C., Overby, J., Padgett, B. L., Long, N., Mellott, L. H., Vandermark, L. & Boone, L. (2015). Instructor’s Notes: Sprinkles Cupcakes: A Case Study of Creating a Successful Internationalization Strategy. Journal of the International Academy for Case Studies, 21(4), 149.

Kolak, M., Bradley, M., Block, D. R., Pool, L., Garg, G., Toman, C. K., & Wolf, M. (2018). Urban foodscape trends: Disparities in healthy food access in Chicago, 2007–2014. Health & place, 52, 231-239.

Martínez-Monzó, J., García-Segovia, P., & Albors-Garrigos, J. (2013). Trends and innovations in bread, bakery, and pastry. Journal of Culinary Science & Technology, 11(1), 56-65.