Fantasies in Frosting is a cupcake store which already has a reputable name in the wedding cake industry. They want to expand to the retail market and also opened the store to a new place in Moorhead area.

1. 1
Fantasies in Frosting:
Marketing Plan
Cole Young, Brenton Bergh, Rachel Zhu, & Trang To

2. 2
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

3. 3
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 Gigi’s
and Nichole’s. 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 Gigi’s and Nichole’s. 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 14–33 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 IDDBA’s 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
Size
U.S. Market Size US CAGR US Predicted
Growth
$417 billion
(2014) 16
$33 billion
(2011) 17
2.5% (2009-2014)
16
6% over the next
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
Price (per
small cake,
cupcake)
Mission Statement Brand Logo
Hornbacher’s Pastries $2.98 The goal of our companyis 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.
Gigi’s Cupcakes $3.25 Gigi's mission is to create a
delicious productthatputs smiles
on our customer's faces,one
cupcake at a time.
Walmart Everything $4.76/ box of
three
We save people moneyso they
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
Shop
Pasteries $3.09 At Crumbs Bake Shop,we believe
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 bestthings 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. Hornbacher’s 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.
Gigi’s, 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 Gigi’s, we need to analyze their
positioning strategy and improve on it to become market leaders.
Local Competition (Cass & Clay Counties)
Name Chain or
independent
business
Key products Average Unit Price
(per small cake,
cupcake)
Brand logo
Gigi’s Franchise Cupcakes $3.25
Nichole’s Independent Fine pastry $30/ dozen
Hornbachers Chain Everything $2.98
Walmart Chain Everything $4.76/ box of three
Bakeology Independent Cakes and
Cupcakes
$2.50-$3.50
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
# Individuals in the segment (Cass-
Clay counties)
(Census, 2010)
Column B
Estimated average annual
spending per individual for soft
cakes in the USA.
(Bureau of Labor Statistics, 2013)
Column C
Estimated local market size
for this specific segment. In
U.S $.
Age 25-34: 7,792+25,552=33,344
35-44: 6,522+18,362=24,884
45-54: 7,561+19,023=26,584
292/2*.08=11.68
412/2*.08=16.48
428/2*.08=17.12
33,344*11.68=389,457.92
34,884*16.48=410,088.32
26,584*17.12=455,118.08
Income and
Benefits
(household)
<=49,999:
31,468+10,764=42,232
50,000-99,999:
20,977+7,685=28,662
100,000-149,999:
8,174+2,954=11,128
More than 150,000:
1,060+5,197=6,257
263/2*.08=10.52
401/2*.08=16.04
531/2*.08=21.24
600/2*.08=24.00
42,232*10.52=444,280.64
28,662*16.04=459,738.48
11,128*21.24=236,358.72
6,257*24.00=150,168.00
Family Size Husband-wife family w/o children
under 18:
6,291+15,317=21,608
With own children under 18 years:
4,869+12,104=16,973
365/2*.08=14.60
513/2*.08=20.52
21,608*14.60=315,476.80
16,973*20.52=348,285.96

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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 Hornbacher’s. 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 Can we win?
<=49,999 Hornbacher’s, Walmart We cannot beat Hornbacher’s andWalmart in this segment.
This is because this consumer group is working witha lower
income, theywill more thanlikelypurchase cheaper
products. We donot want to target this segment because
our qualityis toohighto charge a low price for our products.
50,000-99,999 Gigi’s, We believe we can winagainst Gigi’s because we offer
products that are appealing to this segment. Thissegment
can stretchthe wallet to purchase our higher quality
cupcakes. However, we chose not to pursue this target
market because we believe we will profit better anddiscover
a better niche targeting another segment.
100,000-149,999 Nichole’s We feel we canwinagainst Nichole’s because these
consumers will desire anexperience beyonda premium
cupcake. We will winthroughour elegant and sophisticated
atmospherics.
More than 150,000 Nichole’s Same 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
segment
$21.24
Primary target market size estimates $236,358.72
Number of individuals in secondary segment 6,257
Average annual spending per individual in
secondary segment
$24.00
Secondary target market size estimates $150,168.00
Total target market size $386,526.72

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Customer Needs Analysis
Customer
needs
Describe current pain How is this need addressed today?
Freshness
Taste
Signature
Products
Health
Benefits
Customers expect fresh
products, which does not
always occur.
Consumers may not be
aware of how a specific
product tastes before
purchasing it.
Retailers offer wide variety of
products, but nothing
recognizable or unique.
Not all retailers offer gluten
free products on retails
New batches of good are produced
daily at bakeries.
Unaware if it is.
It is not.
Gigi’s offers these products on retail
everyday

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Value Proposition and Competitive Strategy
Competitive Positioning Analysis
Competitor Positioning Strategy
Gigi’s Gigi’s 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.
Nichole’s Offers a large variety of services including lunch specials, soft cakes and cake
pops
Hornbacher’s 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
Gigi’s 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, Gigi’s 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
else’s, 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 frosting 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
elegance and
sophistication.
Customers will be able to
indulge without risk to
their health.
Customers will be
provided with hand
crafted products that
are recognizable and
unique.
Key Features Elegant displays, plates,
silverware, and drapes.
Gluten-free, low trans-
fat, and fresh fruit in
featured products.
Will offer fresh fruit,
signature products, and
utilize the capabilities
from the award winning
wedding cake business.

23. 23
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.

25. 25
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
● Award winning cake designer
Cupcakes
● Non-award winning designers
Fruit Tarts
● Offer a variety of fruit
Nichole’s offers tarts
Macaroons
● Offered in warm colors
Non-existent
Gourmet Cupcakes

26. 26
Fruit Tarts
Macaroons

27. 27
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.

28. 28
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.

29. 29
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 Victoria’s Secret or White House Black
Market in order to reach out to this demographic.

30. 30
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.
SocialMedia 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.

31. 31
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.

32. 32
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.

33. 33
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.

34. 34
Company name Pricing
Fantasies in Frosting $3.95
Gigi’s $3.25
Nichole’s $2.50
Hornbacher’s $2.98
Walmart $1.59
Financial Projections
2013 2014 2015 2016 2017
Predicted
annual growth
for bakery (US)
1.2% 1.2% 1.2% 1.2%
Local target
marketsize for
Fresh Pastries
(Primary
+secondary)
$386,526.72 $391,165.04 $395,859.02 $400,609.32 $405,416.63
Estimated
potential
marketshare
for Fantasies in
Frosting
NA
30% 31.2% 32.4% 33.6%
Estimated
annual
revenue for
Fantasies in
Frosting for
target market
NA
$117,349.51 $123,508.01 $129,797.41 $136,219.99

35. 35
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:
United States, 1-33.
—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
—Gigi‘sCupcakesFargo,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). IDDBA’s What’s 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
—Libby‘s Cupcakes Etc. Bolgspot (n.d.)Retrieved from
http://libbyscupcakesetc.blogspot.com
—Love in the Oven Bakery website (n.d.) Retrieved from http://loveintheovenbakery.com
—Nichole’s 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.