Company Overview In 2002, Candace Nelson and her husband Charles Nelson, both investment bankers,...

Company Overview

In 2002, Candace Nelson and her husband Charles Nelson, both investment bankers, visited Candace's sister in New York City and tried the cupcakes at Magnolia bakery. Candace believed it was “time for cupcakes to stop being the backup dancer to cakes.”

So on April 13th, 2005, she started Sprinkles Cupcakes in Beverly Hills – the world’s first cupcake bakery.

Nature of Competition:Class: Desserts, Confectionery goodsCategory: Baked dessertsType: CupcakeTarget Audience:FemaleAge: 17-27Trendy, social media savvyMid/high overall income (60k+)

Positioning

Points of ParityBaked Sweets SugarDesserts RewardCupcakes GiftIndulgence

Points of DifferenceATM cupcake Fun (47% of respondents strongly agree sprinkles is fun)

Landscape of Beverly Hill

Trendy (53% of respondents agree sprinkles is trendy )

High-end dessert (50% of respondents think sprinkles is rich if it was a person)

First cupcake bakery

Luxury(48% of respondents agree sprinkles is luxury)

Rewarding (High-End) Quality Moments

Brand Mantra

Concept #3: Sprinkles • O.P.I Nail Polish

Sprinkles • O.P.I Nail Polish – 3 Factor Model

Sprinkles • O.P.I Nail Polish – 4 Factor Model

Sprinkles • O.P.I Nail Polish – Advantage/Risk & Recommendation

AdvantagesRisk

QualityLack of Assn. w/ Beauty

Sprinkles is Gift related like nail polish ConfusingIncrease market coverage May dilute brandSprinkles shouldn’t launch this product because the

advantages it provides are not important enough to cover the existing risks. Also, 71% of respondents ranked this concept as the worst when comparing to the other product proposals and ATAR rate is only 0.137%.

Concept #2 – Sprinkles Baking Helper

A basic set of premium baking tools and supplies. This set includes cupcake pan, cupcake wrappers, apron, mixing spatula, mitten.- “Sprinkles Certified” - - Premium quality

Sprinkles Baking Helper– 3 Factor Model

Sprinkles Baking Helper– 4 Factor Model

Sprinkles Baking Helper– Advantage/Risk & Recommendation

AdvantagesRisk

Gift-abilityFinancial risk

Grows BrandDilute Brand

New channel of revenueDamage to Brand

Sprinkles should launch the banking set as a limited time holiday product. We recommend this due to its overwhelming desire to be given as a gift. It allows Sprinkles to temporarily expand its portfolio and to generate revenue without bringing negativity to the parent. Our concern for a permanent launch is that our many of our respondents did not see an added benefit. With a short term launch it’s giftablity is its benefit.

Concept #1: Sprinkles Cupcake Pop

Sprinkles Cupcake Pops are the ultimate treats for on-the-go Sprinkles fans. Made in a variety of Sprinkles’ signature flavors, these cupcake pops are a unique twist on traditional cake pops• Variety of Sprinkles flavors• Portable• Cute Packaging• Can be gift• Small Portions

Sprinkles Cupcake Pop – 3 Factor Model

Sprinkles Cupcake Pop– 4 Factor Model

Sprinkles Cupcake Pop– Advantage/Risk & Recommendation

AdvantagesRisk

Aligns with Sprinkles Brand Not unique enoughGift GivingSmall Portions

We should definitely move forward with launching this product. Its advantages definitely outweigh the risks. It positively reinforces Sprinkles’ brand equity. 84% of survey respondents ranked this concept as #1 out of all options. It has a great ATAR % as well, which means good market share.

Sprinkles Cupcake Pop

Sprinkles Cupcake Pop - Place

Cupcake Pops will be sold inside Sprinkles Ice Cream stores

*Cupcake stores only sell cupcakes & Sprinkles Ice Cream store sells a variety of Sprinkles products

Sprinkles Cupcake Pop - Price

$2.75 each Cupcake Pop

Priced between full size cupcakes ($3.75) and mini-cupcakes ($2) to avoid direct cannibalization

Sprinkles Cupcake Pop - Positioning

Target Market: Female ages 17 to 27

Nature of Competition: Bite-Sized dessertsCute edible gifts

Points of Parity: Small Lower calories than a full slice of cakeSweetSatisfy cravings

Points of Difference: Sprinkles flavorPremium qualitySprinkles “Dot”

Positioning Statement

Sprinkles Cupcake Pops are the only bite-sized desserts that provide signature Sprinkles flavors in a cute, portable way to the defined Sprinkles target market.

April 13, 2015 (Sprinkles 10th Anniversary)

Complimentary Cupcake Pops to Celebrities

• Oprah Winfrey • Blake Lively

• Emma Watson • Kadashians

• Jimmy Kimmel

Sprinkles Cupcake Pop IMCMaximize Media Coverage - TV

+ Engagement:• #SprinklesCupcakePop• #SprinklesBirthday• ilovesprinkles.com/Birthday

Questions?

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