Strategically Reposition of Sugar & Spice

Sugar and Spice Business Memo

To: Allison Thatcher, founder of Sugar & Spice

From: , business consultant

Date: Jan 29, 2017

Subject: Strategically reposition of Sugar & Spice

Market research and analysis show that the proposed strategy for your business needs to be reprioritized and changed. Findings associated with analysis with the practical situation have made it apparent that you need make the Sugar and Spice a high-end brand and shift the business focus to customization only. Moreover, adding on the delivery services and hiring professional workers will bring higher satisfaction to the customers.

Reasons To Implement

Sugar and Spice Desserts need to focus on designing and making custom-related treats. According to the industry analysis, consumers pay close attention to the “visually appealing and easily portable” cupcakes. Though you no longer have an advantage in making standard cupcakes as brands like Sparkles are already showing their dominance in the cupcake industry. Shifting your efforts to customized cupcakes will draw more customers that are less price-sensitive and willing to treat themselves with small indulgence. Which helps us to promote your brand image and has a reasonable justify to maintain or elevate the current price level ($51 per dozen). Also, it is has become increasingly important to build long-term relationship with semi-finished product suppliers as a method to boost revenue. In addition, you are going to continue to support pick-up and delivery module due to her purchase of truck, which contains refrigerators and cupcake holders. In your other expansion options, you mentioned either open a local storefront or expand her store to other areas. Comparing to these alternative plans you came up with that expand existing business with more marketing to drive demand makes the most of current resources’ utilization without purchasing new capitals (storefront or new store), which might takes years to pay back.

Methods To Implement:

Expansion Market:

Two strategic efforts are needed if the needed expansion is to be implemented successfully. Firstly, the focus of your future customer based has been switched. Your experience as a musician is an advantage that turns your target customers into the socialites. They are less price-sensitive and hosting events for spectacular themes more frequently. With the base of existing returning consumers, you should return to and expand your musician circle, then find ways to inspire new customers and build your reputation. In addition, taking orders for the celebration events like wedding party is a huge move, since regardless the income, budget for small treats on these kind of parties is usually high. Additionally, people are devoted to using social media and subscribing to food channels. I found a UK luxury cupcake company who sells delicate cupcakes (See Appendix I), and the elegant official website is going to attract people. Thus, the next step of your promotion is to fortify the store’s rate of appearance to the public.

Cost Saving:

The second effort revolves around the other core-competency. You are proud of, which is the freshness of the materials picked. In the past you made purchases every single day on each raw ingredient, and at the end of the day these materials are going to expire. Though this purchasing mode leaves no inventory, materials are going to turn into waste if not use up at the end of the day. Moreover, you are not going to enjoy the purchasing benefits from economic of scale. This brings up the characteristic that makes Sparkles, your competitor, an order winner. Running a large scale of company, Sparkles wins the favor of suppliers of 5% off. Although Sparkles rarely makes customized products, Exhibit