Fantasies in Frosting:

Marketing Plan

Cole Young, Brenton Bergh, Rachel Zhu, & Trang To

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Table of Contents
Company Description...................................................................................................................... 6
Strategic Focus ............................................................................................................................... 8
Mission Statement:...................................................................................................................... 8
Vision: .......................................................................................................................................... 8
Goals and Objectives: ................................................................................................................. 8
Situation Analysis............................................................................................................................ 9
Strengths ..................................................................................................................................... 9
Weaknesses ................................................................................................................................ 9
Opportunities ............................................................................................................................... 9
Threats ........................................................................................................................................ 9
Market Trends ........................................................................................................................... 10
Industry Analysis ....................................................................................................................... 11
Economics ............................................................................................................................. 11
Demographics........................................................................................................................ 11
Market Sizing............................................................................................................................. 12
Market Growth ........................................................................................................................... 12
Competitive Analysis ................................................................................................................. 13
National Competition ............................................................................................................. 13
Local Competition (Cass & Clay Counties) ........................................................................... 14
Best Practices ........................................................................................................................... 14
Marketing Strategy ........................................................................................................................ 15
Segmentation Assumptions ...................................................................................................... 15
Competitors per Segment ......................................................................................................... 16
Target Market ............................................................................................................................ 17
Customer Profile........................................................................................................................ 18
Estimated market size for selected target market (Cass-Clay counties) ................................. 18
Customer Needs Analysis......................................................................................................... 19
Value Proposition and Competitive Strategy................................................................................ 20
Competitive Positioning Analysis .............................................................................................. 20
Points of Difference ................................................................................................................... 20
Blue Ocean................................................................................................................................ 21
Positioning Strategy .................................................................................................................. 21

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 Positioning Statement and Supporting Pillars .......................................................................... 22
Brand Personality ...................................................................................................................... 23
Marketing Mix Strategy ................................................................................................................. 24
Product Strategy........................................................................................................................ 24
Competitive Advantage ............................................................................................................. 24
Original Concept........................................................................................................................ 25
Product lines and Product Features ......................................................................................... 25
Services ..................................................................................................................................... 27
Brand strategy ........................................................................................................................... 27
Packaging.................................................................................................................................. 28
Promotion Mix ............................................................................................................................... 29
IMC Key goals and objectives................................................................................................... 29
Communication plan ................................................................................................................. 29
Web Site ................................................................................................................................ 29
Advertising strategy ............................................................................................................... 29
Public Relation Strategy ........................................................................................................ 30
Event Planning....................................................................................................................... 30
Social Media Plan .................................................................................................................. 30
Sales Promotion .................................................................................................................... 30
Guerrilla Marketing ................................................................................................................ 31
Innovative Promotional Techniques.......................................................................................... 31
Place.......................................................................................................................................... 32
Layout and organization............................................................................................................ 32
Uniforms (dress code)............................................................................................................... 33
Pricing Strategy............................................................................................................................. 33
Financial Projections ..................................................................................................................... 34
References .................................................................................................................................. 35

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Executive Summary
The goal of Fantasies in Frosting is to deliver an elegant experience to

consumers through a sophisticated environment and signature products. Through

extensive industry analysis, an opportunity for differentiation presented itself. Higher

income individuals with a household income of over $100,000 have little to no options

right now to indulge in elegant pastries and soft cakes. These individuals desire fresh,

presentable, health-oriented, and recognizable products. Because of this, Fantasies in

Frosting will provide this segment with a little taste of Paris. We will introduce unique

products and provide an elegant atmosphere like non-other.

Fantasies in Frosting already has a reputable name in the wedding cake industry,

and we plan on utilizing this reputation and transferring it over to our retail cake

business. However, because we a new player to the retail market, we lack loyal

customers and brand recognition for this industry. Because Fargo is a booming city and

individuals have limited options for elegant soft cakes, there is a large opportunity for us

to realize financial gains. Threats also exist in this industry with the existence of Gigis

and Nicholes. However, we plan to achieve a market share of at least 25 percent

within the next 10 years and expand further into North Dakota and Minnesota.

Our target market revolves around sophisticated women with an income of at

least $100,000 annually. We want to position ourselves to attract this type of customer

through elegance. Our layout and atmospherics will be as elegant as possible and our

products will be signature and recognizable. We are located in a high traffic area, which

benefits us and plan to promote our products through social media, our website, and

guerrilla marketing tactics. We will price our products at $3.95 per product, which is

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higher than our competition because of our elegance and high quality. Overall, we will

meet the needs of our customers through sophistication and product differentiation. We

will bring the sophistication of Paris to the Red River Valley.

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Company Description
Fantasies in Frosting is a privately owned business that will be a bakery revolving

around providing joy to its customers. Our target market is households with an income

of at least $100,000, but our specific target is the sophisticated woman. We attract our

clientele by providing value, signature products, and an elegant atmosphere to

individuals.

Value is provided to customers through high quality products and guaranteed

consumers satisfaction. The reputation that Fantasies in Frosting already has in the

wedding cake business is transferred over to our retail cupcake business. Customers

are allowed to taste test products prior to purchase and all soft cakes on display are as

fresh as possible.

Signature products set Fantasies in Frosting apart from the rest of the

competition. These products define who we are and allow us to establish brand

recognition. By reducing the overall breadth of our product lines and establishing

unique, signature pastries, we will become a market leader. Fantasies in Frosting not

only offers cupcakes and elegant pastries, but also trend setting products such as cake

pops and macarons. These products are served in warm colors and in sophisticated

packaging to help deliver an elegant experience to consumers.

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 The atmosphere in the bakery revolves around elegance and sophistication.

Being in our bakery provides a sense of self-esteem to our customers. The color

scheme is based around black and gold as well as a variety of other warm, rich colors.

Our shop also offers the best possible fragrance available to the public that makes our

customers breath elegance. It will also have subtle music playing in the background,

elegant drapery, classical display, and sophisticated plates and silverware.

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Strategic Focus

Mission Statement:

The mission of Fantasies in Frosting is to provide an elegant experience the

makes customers feel sophisticated.

Vision:

As an organization in a highly competitive market, we will differentiate ourselves

from the competition and look to become the primary bakery for higher income
individuals. This vision will be accomplished by creating an elegant atmosphere like
none-other.

Goals and Objectives:

Goal: Achieve Brand Recognition

Objective: Differentiate from the market and become well known for
signature products and sophisticated atmosphere.

Goal: Increase Market Share

Objective: Obtain 25 percent of target market within the next 10 years.

Goal: Geographical Expansion

Objective: Expand further into North Dakota and Minnesota.

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Situation Analysis

Strengths

A major strength that Fantasies and Frosting possesses is a positive reputation

in the wedding cake market. Because of this reputation, our store is well known for
providing fresh and high quality products. Our location also benefits us because we
are located in a high traffic area on 45th street. The shop is also easy to access and
allows customers to efficiently purchase our products whenever they please.

Weaknesses

Because we are new players to the cupcake and pastry market, we do not
possess either brand recognition or a loyal customer base with relation to our cupcake
business. Being a new entrant into this market will prove to be difficult if we are not able
to establish product differentiation and build a recognizable brand. Doing this will allow
us to attract and retain more customers. Finally, one last weaknesses relates to
financial capital necessary to effectively advertise and attract customers.

Opportunities

The overall growth of the Fargo/Moorhead area provides a large opportunity to

attract new customers and increase the overall amount of customers that visit our shop.
Also, the bakery industry has realized growth over the past 5 years and is projected to
increase 6 percent by 2020. Another opportunity that is impacting this market is the
overall growth in demand for health oriented products. By offering these types of
products, we can attract this niche.

Threats

The main threats to our retail soft cakes business are local competitors. This
competition includes established shops such as Gigis and Nicholes. Also, market
growth for this industry is plateauing and has a chance to begin declining. Another
threat relates around customer loyalties. Because switching costs for customers does
not exist, it can prove difficult to gain a loyal customer base.

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Market Trends

Because of health concerns and the increased desire for longevity, there is a
growing trend among consumers for health oriented products. This includes gluten-free
products and products low in trans-fat (International, 2014). People still want enjoy the
satisfaction of a fresh cupcake, but not at the expense of their health.

The popularity of cupcakes has been a growing trend over the past few years.
Other products have the potential to make splashes in the market, but over the past 5
years, the cupcake has ruled the dessert business. Some of these products include the
whoopie pie, the macaron, the fancy doughnut, and the cake pop (Spiegel, 2014).

The Bakery expert at Nielsen-Perishables Group, Jonna Parker, claims that

Consumers now focus on both visual and taste experience. Therefore,it is important for
bakeries to ensure they are in line with consumer expectations. Consumers expect to
receive the full-package, which includes distinguished branding, messaging on
products, the color of the baked good itself, and packing all need to be considered
carefully.

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Industry Analysis

Economics

This industry saw a decrease in spending between 2000 and 2006 by about one
fifth. However, by 2009, market spending had stabilized and now the market is slowly
on the rise once more. Over the next 5 years the market is projected to grow by 5
percent and is projected to reach $39.9 billion in revenue by 2020 (International, 2014).

Demographics

Born between 1981 and 2000, Millennials ranged from the ages of 1433 in
2014 and totaled 85 million. Also, 25 percent of Millennials are currently in the
workforce (U.S. Census, 2010; BLS, 2012). Hence, this generation is very important to
the current soft cake market. One bakery expert at Nielsen also mentioned that sales of
fresh baked goods are strongest. A younger generation and millennial would be
consider fresh at your convenience as experiential. Fresh at your convenience can
make consumers look at product presentation and enjoy freshness when shopping the
in-store bakery.

According to IDDBAs bakery trends forecast (2014), As Millennials are 50%

more likely to place an importance on digestion-related health claims. Consumers are
looking for bakery products made with fiber and fresh and whole grain, while avoiding
high fructose corn syrup, trans fats, and hydrogenated fats.

In 2013, 58% of consumers thought a lot about the healthfulness of their

foods/beverages, 47% thought a lot about food ingredients, and 40% frequently turned
their thoughts to food safety (IFIC, 2013). It showed that consumers tend to purchase
health-oriented food. Also, according to the survey conducted within the
Fargo/Moorhead areas, 16% of females are willing to pay over $4.00 for for a gourmet
cupcake, suggesting a potential niche market.

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Market Sizing

Global Market U.S. Market Size US CAGR US Predicted

Size Growth

$417 billion $33 billion 2.5% (2009-2014) 6% over the next

(2014) 16 (2011) 17 16 5 years (2014) 10

In 2011, the soft cake industry produced $33 billion in annual revenues within the
nation. Between 2009 and 2014, the industry saw an increase in the compound annual
growth rate of 2.5 percent, showing promise of growth. It is predicted that the market
will grow 6 percent over the next 5 years. Although growth will be limited, the market
has shown it is stable and safe to conduct business in.

Market Growth

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Competitive Analysis

National Competition

Chain Key products Average Unit Mission Statement Brand Logo

Price (per
small cake,
cupcake)

Hornbachers Pastries $2.98 The goal of our company is to serve

our customers better than anyone
else could serve them. We provide
our customers with value through
our products and services,
committing ourselves to providing
the quality, variety and convenience
they expect.

Gigis Cupcakes $3.25 Gigi's mission is to create a

delicious product that puts smiles
on our customer's faces, one
cupcake at a time.

Walmart Everything $4.76/ box of We save people money so they

three can live better.

Sprinkles Cupcakes $3.75 Topped with Sprinkles trademark

modern dots, rich chocolate
sprinkles from France or seasonal
sugar decorations, Sprinkles
cupcakes are a deliciously
sophisticated update on an
American classic.

Crumbs Bake Pasteries $3.09 At Crumbs Bake Shop, we believe

Shop in celebrating the simple everyday
things in life. In a world where we
move too fast, a cupcake is the
exception. They add something so
small, and so needed to our lives.
Maybe what they really do is remind
us that the best things in life really
are so simple and easy.

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 Each of our competitors offer similar products, but differentiate in terms of quality
and price, which leads to differentiation in target markets. Hornbachers and Walmart
position themselves to serve the lower income individuals, which is represented through
their low cost products. Because products from these two distributors contain more
preservatives, they substitute low price for freshness, which adds value to the everyday
shopper.
Gigis, Sprinkles, and Crumbs Bake Shop are bakeries that are dedicated to
selling cupcakes and other pastries. Because of this, they position themselves to
provide higher quality baked goods compared to discount retailers and supermarkets.
Because the main competition we face is with Gigis, we need to analyze their
positioning strategy and improve on it to become market leaders.

Local Competition (Cass & Clay Counties)

Name Chain or Key products Average Unit Price Brand logo

independent (per small cake,
business cupcake)

Gigis Franchise Cupcakes $3.25

Nicholes Independent Fine pastry $30/ dozen

Hornbachers Chain Everything $2.98

Walmart Chain Everything $4.76/ box of three

Bakeology Independent Cakes and $2.50-$3.50

Cupcakes

Best Practices

Pastry chains thrive by having multiple chains, lower product prices, and massive
spending budgets. Multiple locations allow them to get a feel for large demographic
areas and target those areas for higher profits.

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 Marketing Strategy

Segmentation Assumptions

After researching market demographics, we identified three potential broad

segments: age, income, and family size. After further analysis, we discovered that the
most effective demographic to target with relation to elegance would be income and
benefits. We felt that focusing on income levels gives us the best opportunity to narrow
down our target market and discover a niche.

Column A Column B Column C

# Individuals in the segment (Cass- Estimated average annual Estimated local market size
Clay counties) spending per individual for soft for this specific segment. In
cakes in the USA. U.S $.
(Census, 2010) (Bureau of Labor Statistics, 2013)

Age 25-34: 7,792+25,552=33,344 292/2*.08=11.68 33,344*11.68=389,457.92

35-44: 6,522+18,362=24,884 412/2*.08=16.48 34,884*16.48=410,088.32
45-54: 7,561+19,023=26,584 428/2*.08=17.12 26,584*17.12=455,118.08

Income and <=49,999: 263/2*.08=10.52 42,232*10.52=444,280.64

Benefits 31,468+10,764=42,232 401/2*.08=16.04 28,662*16.04=459,738.48
(household) 50,000-99,999: 531/2*.08=21.24 11,128*21.24=236,358.72
20,977+7,685=28,662 600/2*.08=24.00 6,257*24.00=150,168.00
100,000-149,999:
8,174+2,954=11,128
More than 150,000:
1,060+5,197=6,257

Family Size Husband-wife family w/o children 365/2*.08=14.60 21,608*14.60=315,476.80

under 18:
6,291+15,317=21,608 513/2*.08=20.52 16,973*20.52=348,285.96
With own children under 18 years:
4,869+12,104=16,973

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 Lower income individuals are more than likely going to purchase their soft cakes
and bakery good at stores that offer these products at a lower price, such as Walmart
and Hornbachers. Individuals in segment 2 are more than likely to purchase soft cakes
for special occasions at a bakery shop for better quality, but may still purchase their
everyday cupcake at a cheaper location. Higher income individuals that can afford to
purchase high quality soft baked goods will more than likely bring their continual
business to a our bakery. Overall cupcake sales are projected to increase over the next
five years according to Anything Research (March 2, 2105). With this in mind and the
fact that Fantasies in Frosting will be more familiar to the Fargo Area in five years, it can
be projected that its market share will slightly increase in five years.

Competitors per Segment

Segment Competitors Ca n we wi n?

<=49,999 Hornbachers, Walmart We ca nnot beat Hornbachers a nd Walmart i n this segment.

Thi s is because this consumer group is working with a lower
i ncome, they will more than likely purchase cheaper
products. We do not want to ta rget this segment because
our qua lity i s too high to charge a l ow price for our products.

50,000-99,999 Gi gi s, We believe we can win against Gigis because we offer

products that a re appealing to this s egment. This s egment
ca n s tretch the wallet to purchase our higher quality
cupca kes. However, we chose not to pursue this target
ma rket because we believe we will profit better and discover
a better niche ta rgeting a nother segment.

100,000-149,999 Ni choles We feel we ca n win a gainst Nicholes because these

cons umers will desire a n experience beyond a premium
cupca ke. We will win through our elegant a nd sophisticated
a tmospherics.

More tha n 150,000 Ni choles Sa me as above.

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Target Market

The target market we have identified as being the most appropriate target those
with an income of at least $100,000. Although households with an household income of
$100,000 is the lowest of the segment, it is the niche market that we plan to target
because the competition for this target market is low and our product is too high of
quality to target low income households. The niche we truly want to attract is 16
percent of females in the area that are willing to spend more than $4.00 for a gourmet
cupcake.

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Customer Profile

To effectively profile our target customer, we created the character, Elena. Elena
is a middle-aged woman whose husband is roughly the same age. She is a calm and
composed individual who wants to be viewed as a sophisticated, wealthy woman. She
and her husband both have high paying jobs at large, local businesses. Every morning,
they go for a run around the neighborhood before getting ready for work. To work,
Elena wears sophisticated clothing and consistently looks flawless. When looking to
indulge in a fresh dessert, Fantasies in Frosting meets the needs of Elena by providing
her with elegance through unique, signature products and sophisticated packaging.

Estimated market size for selected target market (Cass-Clay counties)

Number of individuals in primary segment 11,128

Average annual spending per individual in primary $21.24

segment

Primary target market size estimates $236,358.72

Number of individuals in secondary segment 6,257

Average annual spending per individual in $24.00

secondary segment

Secondary target market size estimates $150,168.00

Total target market size $386,526.72

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Customer Needs Analysis

Customer Describe current pain How is this need addressed today?

needs

Freshness Customers expect fresh New batches of good are produced

products, which does not daily at bakeries.
always occur.

Taste Consumers may not be Unaware if it is.

aware of how a specific
product tastes before
purchasing it.

Retailers offer wide variety of

Signature It is not.
products, but nothing
Products
recognizable or unique.

Not all retailers offer gluten

Health Gigis offers these products on retail
free products on retails
Benefits everyday

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Value Proposition and Competitive Strategy

Competitive Positioning Analysis

Competitor Positioning Strategy

Gigis Gigis aims to offer fresh products and provide their services in an inviting
environment. Their main product is cupcakes, and they offer a large variety of
flavors and offer gluten free products.

Nicholes Offers a large variety of services including lunch specials, soft cakes and cake
pops

Hornbachers Offer bakery product at a low price so that low income and everyday consumers
can afford them

Walmart Offer goods at the lowest prices

After analyzing our competitions positioning statements, we determined that

Gigis is the clearest in terms of addressing how they will position themselves to provide
value to customers. While other companies focus on variety and price, Gigis discusses
the importance of freshness and atmospherics as well as health benefits.

Points of Difference

Our shop offers an elegant atmosphere unlike any other bakery in the area. We
will achieve this through warm colors, luxurious drapes and packaging, elegant plates
and silverware, and rich fragrances. We will allow our potential consumers to taste test
any frosting they would like in order to ensure they are satisfied with their purchase.
Satisfied customers lead to positive marketing through word of mouth. We will
guarantee positive free marketing via word of mouth by guaranteeing our customers
satisfaction. Our product is also a premium product because it is always fresh and
hand-crafted. The target market will expect their cupcakes to be better than everyone
elses, and our highly trained professional bakers will provide that for them.

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Blue Ocean

Providing signature, luxurious pastries and high end cupcakes gives us product
differentiation from other competitors. We will incorporate fresh fruit into our products as
well, giving it the ultimate feel of freshness and sophistication. Our elegant atmosphere
will be like no other cupcake shop giving the customers an exquisite and luxurious
experience. The elegant atmosphere will go beyond the store, as our designing
packaging will bring our sophisticated approach to the consumers homes.

Positioning Strategy

We are going to focus on providing higher income individuals with an elegant

experience like none-other. Our competitive advantage will be realized because of our
atmospherics and product presentation. Our atmosphere will focus solely on elegance
and sophistication. This led to our slogan, Bringing the sophistication of Paris to the
Red River Valley Our products will also be unique, signature, and recognizable. We
will differentiate our products by offering fresh fruit on pastries rather than frosti ng in
some instances and offering trendy products such as macarons. Customers will also be
able to bring the elegance home with our luxurious packaging, something that differs
from the rest of the competition.

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Positioning Statement and Supporting Pillars

Positioning Statement

For high income individuals, Fantasies in Frosting provides a sophisticated

experiences because of its unique and signature products that have an elegant
personality along with its luxurious atmosphere. Because of this, Customers are
guaranteed satisfaction.

Atmospherics Health Orientation Design

Key Benefit Provides customers with Customers will be able to Customers will be
elegance and indulge without risk to provided with hand
sophistication. their health. crafted products that
are recognizable and
unique.

Key Features Elegant displays, plates, Gluten-free, low trans- Will offer fresh fruit,
silverware, and drapes. fat, and fresh fruit in signature products, and
featured products. utilize the capabilities
from the award winning
wedding cake business.

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Brand Personality

Our brand revolves around elegance and beauty. It is a sophisticated woman

that has a signature look. When this particular woman walks into the room, everyone
recognizes her because of her unique beauty and elegance.

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Marketing Mix Strategy

Product Strategy

We are going to reduce the breadth of our product lines and focus on providing
signature and unique products to our customers. These signature products will
differentiate from the competition through their appeal and utilization of fresh fruit. Our
products will stand out from the competition because of their presentation through the
usage of wark colors.

Competitive Advantage

Fantasies in Frosting will be able to sustain a competitive advantage because of

our product differentiation and elegant atmospherics. By combining elegant product
presentation along with a sophisticated environment, we will discover a niche market
that will allow us to maintain a sustainable advantage over our competition.

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Original Concept

Bringing the sophistication of Paris to the Red River Valley...

Product lines and Product Features

We will create a variation of cupcakes besides the everyday cupcake. Utilizing

the capabilities of our employees, we will create sophisticated and signature products.
We are also interested in entering the fresh pastry market by introducing fresh fruit tarts
and specialty macaroons.

Our product Competitor's product

Gourmet Cupcakes Cupcakes

Award winning cake designer Non-award winning designers

Fruit Tarts Nicholes offers tarts

Offer a variety of fruit

Macaroons Non-existent
Offered in warm colors

Gourmet Cupcakes

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Fruit Tarts

Macaroons

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Services

We provide taste testing which is our differentiation. We would like to collaborate

with local sport teams and offer products at discount price to anyone who brings in an
event ticket from a winning game. We also offer a punch card to each customer, and
once customers has purchased 9, they get the 10th product for free.

Our company website can be found at http://www.fantasiesinfrosting.com/, which

offers the full list cupcakes that we offer and useful information for our customers such
as daily specials. In-store services include providing customers with elegant silverware
instead of plastic forks and plates as well as giving them an option for coffee or tea to
go with their purchased product

Brand strategy

We are going to keep the brand name because it portrays an image of what the
product is. Because we want to focus more on the actual experience of enjoying the
atmosphere at the store, we decided to change the logo to reflect this elegant
experience. The logo utilizes sophisticated text as well as design. We feel that this logo
represents what Fantasies in Frosting is about; elegance and sophistication.

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Packaging

Our packaging will also revolve around elegance. For customers with few (3-
4)products, we offer a luxurious box with a ribbon neatly tied around the corners
providing it with an elegant look.We will offer a package of 6 cupcakes with space to put
your hand and easily grab it without touching other cupcakes, and also have the holder
for each cupcake. Packaging for larger orders will be similar to the previous two
examples; however, the packaging will simply be larger. Overall, we want our concept
of packaging to revolve around an elegantly designed box with ribbon seal.

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Promotion Mix

IMC Key goals and objectives

The desired responses that Fantasies in Frosting would like to achieve from the
following different kinds of communication forms are to effectively attract our target
market and obtain a market share of 25 percent with relation to this market. We want to
show our customers that our company will provide elegance along with fresh, health
oriented products.

Communication plan

Web Site

Our website will include all of the information about the products we offer as well
as customer testimonials. We will educate our customers about what ingredients are
included in each product. They will be provided with contact information and direct links
to our facebook, twitter, and instagram accounts. Finally, we will allow our customers to
become members by registering with us through our website where they will provide
demographic information to us in order for us to better understand our demographic
while also giving us access to send them promotional emails.

Advertising strategy

We will advertise with posters and flyers in areas where the sophisticated people
will be. This includes many of the fancy and high end restaurants in the area, fancy
clothing stores including some in the west acres mall. We want to target areas where
high end women would be shopping, such as Victorias Secret or White House Black
Market in order to reach out to this demographic.

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Public Relation Strategy

Developing a strong brand loyalty among our target market means we will get a
lot of returning customers along with bringing their friends along. Getting these people
to talk about our store and spreading it by word of mouth is an effective way to create
loyal customers. We will also strive to become sponsors of local events such as the
Cobber 5k or the Fargo Marathon in order to promote our products to large groups of
people.

Event Planning

We will offer special orders for events happening in the area. We do not offer
delivery services but we can customize cupcakes if the customers put in a big order and
are willing to pay for these customized cupcakes.

Social Media Plan

We will have pages on Facebook, Twitter, and Instagram to update our followers
on daily specials and provide them with pictures of the products that we are offering.
We also plan on providing our demographic with advertisements via Facebook.

Sales Promotion

Our display racks will be elegantly designed with our most popular products
located where the customers attention is mostly focused. Also, sophisticated labels will
be in front of each item displayed to ensure that our customers are well informed on
what each product is.

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Guerrilla Marketing

We could put our logo and our product on soap dispensers at higher end
restaurants or retail stores, almost forcing our targeted customers to reach for one of
our products and grasp their attention.

Another idea is to utilize degradable chalk on sidewalks outside of higher end

restaurants or retail stores that capture their attention by saying, Discover Elegance or
Visit Paris. These slogans would also have our store name underneath.

Innovative Promotional Techniques

We will send our customers appreciation letters if they come to the store more
than 2 times in one week as a way to thank them for their loyalty. For these customers
that come two or more times a week, we will invite them to a customer appreciation day.
For one day out of the year these customers, along with one guest, will be able to
receive our products free of charge.

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Place

Our atmospherics will revolve around elegance. The primary colors utilized will
be black and gold, but we will also use warm colors such as royal blue and light green
through drapery and packaging. Our main fragrance will be almond biscotti. This
fragrance will allow our customers to taste the elegance of our store and will make them
want to indulge in our products. Our music will revolve around relaxation such as
simple piano or violin sounds.

Layout and organization

Our interior layout of the store will fit our concept of elegance and sophistication.
We used Laduree as an example for displaying the cupcakes and pastries to our
customers. It has a luxurious look along with easy product visibility to make the
customer experience enjoyable.

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Uniforms (dress code)

Our uniforms provide a more stylish and sophisticated look for the employees.
They will be simple, but elegant and will follow the color scheme of our concept by being
black and gold. Our logo will also be represented on the chest of the uniform along
with and elegant ribbon to go around the waste.

Pricing Strategy
We will charge a premium price of $3.95 before taxes for our products. Pricing
our products at $3.95 is higher than all of our competitors, showing that our cupcakes
are of higher quality. With our target market being sophisticated individuals with high
income, they will not have a problem paying $3.95 because our survey stated 16% of
women would already pay over $4.00 or more for a gourmet cupcake.

33
Company name Pricing

Fantasies in Frosting $3.95

Gigis $3.25

Nicholes $2.50

Hornbachers $2.98

Walmart $1.59

Financial Projections

2013 2014 2015 2016 2017

Predicted
annual growth 1.2% 1.2% 1.2% 1.2%
for bakery (US)

Local target
market size for $386,526.72 $391,165.04 $395,859.02 $400,609.32 $405,416.63
Fresh Pastries
(Primary
+secondary)

Estimated NA
potential 30% 31.2% 32.4% 33.6%
market share
for Fantasies in
Frosting

Estimated NA
annual $117,349.51 $123,508.01 $129,797.41 $136,219.99
revenue for
Fantasies in
Frosting for
target market

34
References
BLS. 2012. Total labor force participation by generation. U.S. Bureau of Labor Statistics.
Retrieved from www.bls.gov.

Bread & Rolls Industry Profile: United States. (2013). Bread & Rolls Industry Profile:
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Elizabeth, S.(2014). The Top Ten Functional Food Trends. IFT. Volume 68, No.4.

Family Fare Supermarket website(n.d.). Retrieved from

https://www.thingsaregoodhere.com

GigisCupcakesFargo,NorthDakota website(n.d.).Retrieved from

http://www.gigiscupcakesusa.com/fargonorthdakota

Global Bread & Rolls Industry Profile. (2014). Bread & Rolls Industry Profile: Global, 1-31.

IDDBA News Release.(2014). IDDBAs Whats in store 2015: Bakery Trends. Retrieved
from http://www.iddba.org

IFIC. (2013) 2013 food & health survey. International Food Information Council
Foundation, Washington, D.C. Retrieved from www.foodinsights.com.

Kacey, C.(2013) Niesen: Fresh bakery is in faction and par-baked loaves are hitting
runways Retrieved from http://www.bakeryandsnacks.com/Markets/Nielsen-Fresh-bakery-
is-in-fashion-and-par-baked-loaves-are-hitting-runways

Libbys Cupcakes Etc. Bolgspot (n.d.)Retrieved from

http://libbyscupcakesetc.blogspot.com

Love in the Oven Bakery website (n.d.) Retrieved from http://loveintheovenbakery.com

Nicholes Fine Pastry website (n.d.) Retrieved from http://nicholesfinepastry.com

Nielsen Pop-Facts Demographics.(2014) Retrieved from

http://www.claritas.com/MyBestSegments/Default.jsp?ID=37&id1=1027&id2=35

Sweet tooth company website (n.d.) Retrieved from http://www.sweettoothcompany.com

U.S. Census. (2012). U.S. Census Bureau, Washington, D.C. Retrieved from
www.census.gov.

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