Social-Culture Issues

Demographic:• The start-up t-shirt trend is currently growing, which encourages

creativity and uniqueness in design.

Economic:• Economic down turn is not effecting brand loyal consumers.

Socio-cultural:• Targeting Gen Y benefits JC because these consumers strive to

different. They are always keeping up with new trends.

Technological:• JC consumers are frequent online shoppers. These tech savvy

consumers want accessibility from all types of technological devices.

Target Market

•Generation Y•Some Generation Z

This group typically ranges anywhere from early 30's all the way until early child hood, usually those that are either freely on their own or still living at home with their families.

They are usually the most influenced generation for online shopping and researching purchases.

Industry Segment 2008Textile, textile product and apparel manufacturing 497,100

Textile Mills 151,100Textile Product Mills 147,600Apparel Manufacturing 198,400SOURCE: BLS National Employment Matrix, 2008-18

Employment in textile, textile product and apparel manufacturing by industry segment, 2008

•Wage and salary employment in the textile, textile product, and apparel manufacturing industries is expected to decline by 48 percent through 2018, compared with a projected increase of 11 percent for all industries combined.•Increased technology used by textile mills is partially responsible for the projected decline in employment in this industry.•Many apparel firms are now outsourcing production to countries with lower labor wages.

TEXTILES INDUSTRY

•Consumers want items that are exclusive and are now going to smaller brands to find what will set them apart from the crowd.

The biggest form of marketing that niche markets and smaller companies use is word of mouth. Print advertising and other methods are used as well but are not as successful.

Online shopping is a growing trend in niche markets and for smaller companies. Since the products and brands are not found in very many places, the internet opens the door for more potential customers to place orders.

•Music and clothing influence each other.

•Members of the subculture look to their peers as a reference point for apparel choices.

At hardcore shows today, members of the subculture look to their peers as a reference point for apparel choices.

Aspiring entrepreneurs will find that these shows are the ideal spot for networking, public relations, advertising and sales of their product.

Usually an arrangement can be made with the venue to have a booth set up for product sales.

Consumer Group Reports

•As generation Y gets older, the online shopping business increases

•An increase of online shopping of 51% with more than 79% of online retailers had increased profits

77% of all online shoppers over the age of 13 will shop online

Of 50% of the people that shop online 88% have bought something within the last 6 months

CompetitorsJinx

Threadless

Think Geek

Busted Tees

The Hundreds

Kid Robot

Fur Face Boy

Local Boutiques

Many of the companies draw inspiration from popular culture, vintage art,and current ideas. Certain companies (Threadless) only print items as theyare voted on by the public and in limited runs. Jinx has a slightly higherprice point (though not as high as JC) but only prints certain runs of anitem.

JC falls in line with these are that is that thecompetition does not put the runs as limited as JC, so their prices can beslightly lower.

Jinx - Mid price geek line t-shirt brand

Threadless – company that takes designs from acommunity and prints them on shirts as they get voted on. Otherwise they have a very activeonline storefront and sell shirts online. Think Geek - company thatfocuses on its core customers and offers t-shirts and accessories thatbenefit its consumers

Busted Tees - no physical stores, but they do offerbulk discounts over 24 pieces

Kid Robot & Fur Face Boy – recent popular t-shirt companies that are priced a little bit higher than JC. Kid Robot has become mainstream selling in department stores.

The Hundred – t-shirt company is very similar to JC and the prices are within the same price range

Core Benefit Fun and trendy t-shirts and accessories.

Basic ProductFunctional, Unique Clothing and accessories

Expected ProductsLimited designs and uniqueness

Augmented ProductLong lasting products, products that carries over to different seasons.

Potential ProductUndergarments, swimwear, dresses, and cook wear.

Product Hierarchy

BRAND STORY…

BRAND LOGO & SYMBOL...

Johnny Cupcakes logo is typically seen as in black and white.  With the changing of the seasons we would like to have the logo change in color and possibly variety to reflect the seasons.

SLOGAN...Our mission is to keep the same vision and impacting slogan that Johnny has already created for the brand.

Fall • Autumn Colors (Red, Orange, Yellow, Brown,

Black)

Winter • Cool Colors (Blue, Light Blue, White, Red and

Green)

Spring • Pastel Colors (Pink, Green, Blue, Yellow)

Summer• Bright and Bold (Yellow, Blue, Green, Red)

The materials typically used in the t-shirts are a:

jersey type material, as garnered from their website. 

Mixing & Matching of Brand Elements…

We plan to bake up a special blend of blind item packaging. This will ensure that our customers continue to enjoy the high quality products, and with more limited pack ins based on the season, continue to increase the popularity and scarcity of the most popular goods.

Previous 2010

Halloween exclusive…

will now become

PERMANENT! Online surveys will be conducted to help us generate which designs are most favorable.

Three exclusive designs will be designed and packaged in Phase 1 of our test. Color Palette…

Cookware will be brought in to build on the brand name.

Cupcake and cross bone cookie cutters.

Cookware will be purchased through vendors.

Mixing & Matching of Brand Elements…

NEW: CUPCAKE COOKWARE

INIMATES SWIMWEAR

CURRENTLY DISCOUNTINED :Bring back into stores and online shop; plus additions designs.

CURRENTLY DISCOUNTINED :Bring back into stores and online shop; plus additional designs.

Mixing & Matching of Brand Elements…WEBSITE…

Consumers will now be able to rate Johnny Cupcakes products online.

90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. (Econsultancy, July 2009)

POWER OF WORD OF MOUTH…

Overall Rating

Read Reviews (45) Write a review

Mixing & Matching of Brand Elements…

iPHONE APPLICATION...

Created an iPhone application will allow consumers to see Johnny Cupcakes upcoming products, promotions, and events.

Consumer ratings from products will be available to view on the application.

Products will be not be able to be purchased from the application.

Application will be free.

84% of consumers said they were more likely to check online for reviews prior to making a purchase compared to twelve months ago, according to a recent survey by Brand Reputation. (Retail Bulletin, October 2009)

Social media spending will leap by 34% by 2014,

while mobile marketing will jump by 27%.

(Forrester, 2009)

Mixing & Matching of Brand Elements…SCRATCH & SNIFF

HANG TAGS

“BIG KID” AVATAR

“ WHOA, this tag smells like strawberries!”

Building on creating a bakery experience for the consumer.

Our new hang tag smell will add on to the atmospheric of the store.

Will not be included on online orders, exclusive for in-store products.

SWOT ANALYSIS…

•Unique product inspiration of incorporating cupcakes in to products.•Limited runs of products•Quality materials•Specialized delivery shipments•Word-of-Mouth Advertising•Strong online community•Music promotional events•Distinct brand logo•Rising annual revenue•Good customer focus and connection

•Limited locations•Copy right infringement•Limited Accessibility•Limited Advertising

•Strong brand loyalty•Viral marketing engagement•Sharing same pop culture in consumer community•Continued rapid growth in reaching more consumers

•Rising profits of competition•Multiple competitors in same home market•Competitors business more widely known

opportunities

strengths weaknesses

threats

…BRAND POSITIONING

BUDGET LUXURY

UNIQUE

TRADITIONAL

$24.99-$34-.99

$22.99-$40.00

$18.99-$40.00

$30.00$15.99-$36.00$10.00-$20.00

$10.00-$22.99

$15.99-$17.99

$20.00

$30.00-$32.00

Merchandising Strategy…

PRODUCT WIDTH

PROD

UCT

LENG

TH

Clothing Accessories Home Furnishings & Stationary

T-shirts, Long sleeve Shirts, Hoodies, Shorts, Dress shirts

Intimates

Swimwear

Belts, Earrings, Ties, Hats, Totes, Gloves, Key Chains

Blankets, Pillows, Mugs, Note books, Pens, Pencils, Stickers, Water Cooler, Dice, Snow Tubes, iPhone case, Vinyl Doll

Wallets

Umbrellas

Candles

Bedding

Product Depth: 9 (average product length x product width)9/3 = 3; 3 x 3 = 9

Identify Differentiation Tools

PRODUCT SERVICE PERSONNEL

CurrentlyUnique, fun, Quirky, tees and accessories

Exclusive mysteryt-shirts

FutureUndergarments, swimwear, cotton dresses and cupcake shaped cook wear

Comic book (free with online purchase)

Consumer online ratings for feedback

An iPhone application to deliver instant updates to the consumer

ExperienceShopping in a bakery atmosphereFun online mix of activities

FUN eccentric people who love the brand and what it stands for; and knowledgeable of the “JC” story.

The individual who seeks originality.

Everyday internet user that are always up to date on technologies.

CHANNEL IMAGE

Internet , music performances and specialty Brick and mortar

Our main channel is internet

StoreBakery design (as it is), Scratch and sniff hang tags

Website Nostalgic yet modern feeling

AdvertisementsCreative bakery names for stores and products, animated Fat Boy spokes character

Online PromotionsRevamp Facebook, and Twitter and make those outlets for promotions cupcake factory tour.

Brand Position EvaluationCURRENT MARKETING POSITION: FUTURE MARKETING POSITION:

Important• Provides a fashionable outlet for kids

in the rock scene

Distinctive• Partner with popular and vintage

brands to license t-shirts and accessories that are relevant to their target market

Affordable• Products are priced for those in the middle

class and above. The average cost at retail for a tee shirt is $39.99.

Profitable • They price their shirts higher than

typical retailers and print on a small scale. This allows them to control costs

Important• Continue to embrace the rock

culture, but try to expand customer reach to other sectors of the community

Distinctive • Continue to license goods,

however focus on upcoming web cartoon characters for a new and unique prospective

Affordable• Offer consumers who choose to join a

mailing list coupons and special rates throughout the year so that they can enjoy lower prices and more products.

Profitable• Continue to make small printing

runs of shirts, but look for cheaper sustainable fabrics (i.e bamboo)

Performance

Imagery

Identify

Performance

• Fun Graphics on t-shirts and accessories

• Reliable Product: You can count on JC to fulfill your need for uniqueness

• Effective Service: easy to buy, return and communicate with customers

• Style and Design: EXCULSIVITY and FUN!

• Price: Pricey for a t-shirt but not for the fun you get from the brand

Imagery• User Profile: People who crave

individuality and appreciate wacky designs

• Purchased for fun to have a new addition to their collection, and used in many causal situations

• Value for the brand comes from its personality, the brand creates fun not just a t-shirt

• The JC has a heart warming heritage and everyone who buys into it knows the story; you can’t get a better brand heritage than that!

Identify• Johnny Cupcakes is a fun and exciting t-

shirt company

Customer-Based Brand Equity Model

Increasing SalesDuring video chats have the main presenter (Johnny or representative of the brand) give out a special sale code that people can use to have a percentage off of products for a limited time

Create an advertising campaign in alternative magazines and zines that can help people know more about the product.

Partner with more department stores for additional trunk shows with increased advertising

Ensure the twitter, facebook, and blog are updated on a regular basis and include more promotions. Reward people for sharing their advertisements on social networking sites with a free item or discount.

Increasing Brand Knowledge

Continue to support bands through sponsoring tours.

Continue to be involved in fundraising projects in low income schools. Involve the students in a project that benefits them, and brings awareness to the brands and the things they support

Have Johnny Cupcakes video chat parties happening on sites such as Chat Roulette or Skype where more people can just see the chat and become involved

Start up a Johnny Cupcakes street team, which can distribute posters, stickers and coupons to places that they frequent (shows, school, public events)

Laws of BrandingThe Law of Publicity The Law of Quality

The Law of ContractionThe Law of Shape

Viral marketing is used for Johnny Cupcakes advertising campaign, from traveling the country, using Word-of-Mouth, as well as using social networks to reach out thousands of consumers

Focuses on limited quality products from the fabrics used in their t-shirts to the materials implemented in their accessoriesSpecialize in delivery packaging

JC narrows its focus by implementing all their ideas into their number one selling product, t-shirt designs.They also focus on the same designs incorporated in their t-shirts such as cupcakes.

Johnny Cupcakes logo of “the cupcake”, incorporated in all of their products, is a trademark that stays in the mind of consumers.