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Running Head: SPRINKLES CUPCAKES ATM MARKETING PLAN 1

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SPRINKLES CUPCAKES ATM MARKETING PLAN

SPRINKLES CUPCAKES ATM MARKETING PLAN

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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

	Dream	Plan	Book	Experience	Share	Loyalty Loop
Messages/Feelings	Exciting New experience	Convenient Great value	Great reviews Awesome deals	Satisfaction Authentic	Memories friendship	Reconnect
Touch points	Provide information on local sights and entertainment Online ads	Email marketing Google alerts to monitor for comments	Provide discounts and vouchers Optimize website	Additional surprises for the youth e.g Offers	Emails to attract feedback	Good deals and discounts
Derailers	No social media presences Unfriendly staff	No follow up emails Unanswered questions	Extra expenses Bad reviews	Frustration Dissapointment	No follow up emails	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	Important	Convenient	Good value	Satisfaction Value for money	Relaxing memories	Provide discounts and vouchers
Touch points	Provide easy and accessible information for the customers in a hurry	Online ads Promote social media	Online ads	Provide information on local sights and entertainment	Email marketing	Special offers
Derailers	No available information on search engines	No social media presence	Bad reviews	Frustration	No follow up emails	No special offers or discounts

Target Market #3: Company employees

	Dream	Plan	Book	Experience	Share	Loyalty Loop
Messages/Feelings	Special offers and deliveries	Educational	convenient	Satisfaction	Friendship	Memories Connected
Touch points	Online ads Social media postings	Blog posts	Provide information on local assignments and sights	Optimize website	Email marketing	Great deals
Derailers	No social media presence	Bad reviews	Unanswered questions	No follow up emails	Frustration	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.