Introduction
One of the main parts of doing business is planning, including creating a marketing plan. It involves market analysis, review of competitors and organization’s features, and a set of measures to promote and sell goods. It cannot be underestimated, since the study results are taken as a basis for developing other areas of the company’s activities – the production, the financial plan, and other aspects.
Mission
The mission of Lee’s Cupcake Store is to sell cupcakes made of natural ingredients, taking into account the wishes and needs of various customers.
Situation Analysis
Strengths and Weaknesses
In the internal inspection of the company, its owner should evaluate the resources, business processes, and competitiveness. Some methods exist for achieving this goal, the easiest of which is to list the key evaluation factors and compare them with the company’s capabilities. The owner needs a list of parameters for evaluation and selects the most important ones, checking whether the store meets the requirement. Moreover, for a complete assessment, he or she can make a comparison with competitors. The strengths can include all that the store and goods are better, and the weaknesses are what is worse. Another useful tool for Lee will be the SWOT analysis, which assesses the factors influencing the work of the enterprise and identifies strengths, weaknesses, opportunities and threats.
Opportunities and Threats
Among the threats to Lee’s store, firstly, highly competitive market segment should be distinguished. Assessing the current situation, a significant risk to all small stores is also the coronavirus pandemic, which sets limits on many spheres of human life. It affects the supply of products, attendance, and many other essential aspects. Development opportunities lie in modern trends. Firstly, the production of cupcakes should be eco-friendly, and their ingredients natural. Secondly, it is essential to consider the increase in the target audience of people who buy products considering specific dietary requirements – gluten-free, sugar-free, lactose-free, unique products for allergy sufferers. Thirdly, it is necessary to provide customers with the opportunity to make orders by phone – with subsequent delivery or picking up an already prepared order.
Competitors – Indirect & Direct
In Cherry Hill, NJ area, Lee has many strong competitors, both direct and indirect. For the most part, direct competitors do not just sell cupcakes, but also produce them, offer a wide range – cakes and other types of baking, and often equip cafes. For example, Ray’s Boozy Cupcakes Bakery and Sweet T’s Bakeshop offer original custom baking, sell donuts, cakes, and other. Indirect competitors – fast foods, cafes for healthy eating, coffee shops – are also widely represented in this area. Lee’s competitive advantage is the profitable location of his store near a popular public place.
Competitive Advantage & Sustainable Competitive Advantage
Sustainable competitive advantage is a unique feature of a service provider that another niche representative cannot copy, it distinguishes distributer among other. To be long-term and robust, it must meet such criteria as utility, uniqueness, security, and value. Moreover, a sustainable competitive advantage is achieved through the continuous development of existing and the creation of new resources and abilities in response to rapidly changing market conditions. I recommend Lee to focus on an approach to clients that will address special dietary needs – people with gluten or nut allergies and other. In the future, he can expand his activities by selling gluten-free and other healthy ingredients for baking.
Marketing Objectives and SMART Goals
- Ensure a 10% increase in sales in 6 weeks by implementing a delivery and phone order service.
- Over the week, develop and implement scripts for receiving calls, select a delivery service, and discuss the terms of cooperation.
Market Strategy and Market Penetration Strategy
Target Market Strategy
The target audience is represented mainly by females from 10 to 60 years old, with an average and higher income. Women in the family hierarchy are often responsible for purchasing products. Mothers with children are also significant consumers of sweets; women usually act as organizers of children’s holidays, like birthdays. Nevertheless, customers of the store can be anyone who wants to buy a cupcake and increasing the range of products taking into account specific dietary needs will expand the audience. Thus, Lee can divide his audience into segments to develop the most effective action strategy: consumers of classic cupcakes, gluten-free, sugar-free, lactose-free, nut-free, and without other allergens, usual-style to a holiday celebrating. In the long run, Lee needs to target women as an audience, positioning himself as a seller who will find the necessary product for each client with his unique taste and needs.
4 Strategies for Growth
The four strategies for growth – market penetration, market development, product development, and diversification are part of the Ansoff matrix. It is a strategic tool for determining the company’s development directions (Archer, 2017). Market penetration strategy involves an increase in the share of the current commodity market, market development – growth due to the expansion of demand in new markets. Product development strategy is an increasing demand for new products, and diversification strategy – upgrading the product range and entering new markets simultaneously. First of all, Lee should pay his attention to diversification. Market penetration strategy for Lee’s store is reaching more customers thanks to the options of ordering by phone in advance and the delivery of products directly to clients. Moreover, he can expand the range of products by selling not only cupcakes but also croissants, doughnuts, and other pastries.
Marketing Mix
The marketing mix includes all important product parameters – product, price, place of sale, and promotion. They can be controlled and developed by a marketer for the effective promotion of goods.
- Product is what the company offers to the market and the consumer – a physical product or service. A product is the first thing that is necessary to begin the work of the enterprise and develop strategies. A successful product must meet the important needs of the target market.
- Price is an important element of marketing, as it is responsible for the profit from selling the product (Lamb, McDaniel, & Hair, 2018). A price is assigned based on the value of the product to the consumer, the cost of production, the level of prices of competitors, and the desired profit.
- Place ensures that the product is available to the target market. The product should be in a place where it can be seen and at the right time when people come to purchase it.
- Promotion is a strategy designed to draw attention to the product, form its positive image and make customers to buy it.
Implementation
- Lee must arrange the possibility of receiving calls in the store. To do this, he should buy a phone and a phone number, report on social networks a current phone number, and services obtained through it. Lee should prepare the sellers for the new duty or entrust task this to the HR manager. Time frame – week.
- Lee must choose a delivery service with which the store will profitably cooperate and sign an agreement with them. Time frame – week.
- Lee should study, or delegate this task to a specialist, potential suppliers of cupcakes that meet special dietary needs and are made of natural ingredients. The goal includes also discussion of the terms of cooperation with them, choosing the most suitable supplier, signing necessary documents, and arranging delivery. The time frame is four weeks.
- Once logistic issues are solved, Lee, or HR manager, must hire an advertising specialist to create a campaign on social networks and in the city to disseminate information about the store. Time frame – week.
With the right allocation of time and delegation of authority, Lee will be able to implement the plan in five weeks.
Evaluation
In five weeks, Lee will assess whether he realized his goals on time and what help or prevented him. In another four weeks, he will be able to compare and evaluate sales and waste, the impact on the level of profit of the work done. Analysis and evaluation require reporting during the implementation of the plan. The assessment should be systematically carried out at the desired time– month, quarter, and other periods.
Conclusion
The success of even a small business depends on competent preparation and planning. With a marketing plan, one can identify the problems and challenges that business will face in the future before this happens and make the right decision. Plan provides better preparation for the use of potential opportunities and helps to recognize and correctly assess risks. For these reasons, creating a marketing plan requires a serious and responsible approach, in-depth analysis, and study.
References
Archer, B. (2017). Ansoff Matrix for beginners. Skotts Valley, CA: CreateSpace Independent Publishing Platform.
Lamb, C. W., McDaniel, C., &Hair, J. F. (2018). MKTG 12.Principles of marketing. Boston, MA: Cengage Learning.