Sprinkles Cupcakes at UTD By: Laura Timciuc Malu Crespo Tina Wei Zoey Fan Badir Al-Najjar Akram Khalil 1

Table Of Contents:- 2 1.Background Background Key Issue’s and Problems Key Issue’s and Problems 2.Market Research Market Research Competition Consumer & Buying Behavior Consumer & Buying Behavior 3.Analysis Segmentation and Targeting Perceptional Mapping Perceptional Mapping Evaluation of Alternatives SWOT Analysis SWOT Analysis 4.Promotion Promotion plan Success Metrics

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, 13 th 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. 3

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. 4

– 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 Problems 5

Market Research 6

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. 7

Market Research -Secondary Data- by TLC, November Most Popular Cupcake Flavors Why 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

Market Research -Secondary Data- by TLC, November ) 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 ButterThey are popular because they are not too sweet 10 Most Popular Cupcake Flavors Why These Flavors? Best with: peanut butter, chocolate, banana, or honey icing

Market Research -Secondary Data- by TLC, November Most Popular Cupcake Flavors Why These Flavors? 3-) Carrot CakeDelicious, chic, and sweeter than most vegetable desserts Best with: cream cheese icing 2-) Red VelvetThink: Red Velvet Cake miniature! It is trendy and has less calories than other cupcakes 1-) Chocolate with Vanilla IcingClassic, traditional, and popular around the world. Best with: cream cheese icing

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. 11

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. 12

Most important factor when purchasing cupcakes to UTD customers Market Research Primary Data - Consumer Behavior

Market Research Primary Data 14 Top 3 flavors UTD customers prefer

Market Research Primary Data Which event would you like to serve cupcakes?

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. 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.

Competitors - cupcake bakeries - 17 BLa Rosette Bakery 581 West Campbell Rd, Richardson DCake Carousel 1002 North Central Expy, Richardson ATrailercakes 740 East Campbell Rd, Richardson 75081

Analysis 18

Price Each cupcake will cost $3.25. Discounts: 1.First 20 people on the third Tuesday of every month will receive a free cupcake!! 2.Buy 3 dozen cupcakes get a dozen cupcakes free. 3.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

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 20

Sprinkles New Location New Sprinkles Location on campus: In front of the Dining Hall Between the Student Union and The Engineering Building 21

Segmentation and Targeting Age Group years old College students living on and off campus Single, dating, or married People who NEED and WANT freshly baked specialty cupcakes on campus. 22

Perceptual Map 23

Evaluation of Alternatives 24 FlavorPresentationPriceCaloriesTotal 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

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 25

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. 26

Cross Reference 27 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. 4. Use the best ingredients to keep the amount of calories down

Cross Reference 28 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 4.Cost of ingredients are increasing

Promotion

MediaPrice FacebookFree Flyer$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) (Zmail)Free TwitterFree YouTubeFree Promotion Plan

MediaPrice Direct 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 plan

Sprinkles Cupcakes tweeter page Sprinkles Cupcakes Facebook Page Sprinkles Cupcakes YouTube page

Sprinkles Cupcakes Flyers & Poster Sprinkles Cupcakes vehicle graphic

Sprinkles cupcakes ADs on school newspaper

Sprinkles cupcake On campus promotional events

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 (Flyer) (Poster) (Sprinkles on twitter) (Sprinkles on Facebook) (Sprinkles on Youtube) assets/v3/editorial/7/a9/7a9ce254-ddaf-11e a4bcf6878/501c3e3a99ac8.pdf.pdf (School newspaper) assets/v3/editorial/7/a9/7a9ce254-ddaf-11e a4bcf6878/501c3e3a99ac8.pdf.pdf coming-to-the-grove/ (Sprinkles cupcake-coming Pic) coming-to-the-grove/ &type=1&theater (On campus promotion Pic) &type=1&theater (Flyer Pic) coming-to-oc/24967/ (Cupcakes Vehicle promotion Pic) coming-to-oc/24967/ flavors.htm (Secondary Data for Market Research) flavors.htm (Sprinkles Case Study)

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