The Marketing and Financial Potential of Online Cupcake Business - Case Study Example

Results and Recommendations By Project The project initial motive was developing a frame work of turning a passionate hobby into a financially successful and sustainable business. Such a project is beneficial in transforming the minds of the learning groups from active job seekers to potential job creators. Making of consent decision for supporting the motive online cupcake business appears to be the most viable form of small business venture. There is high demand for cupcakes that depicts market adaptation for the business and the online transaction nature gives a better stand for customer contact and access to a wide range of customer irrespective physical locations. Online cupcake business This is an upcoming and very lucrative business idea, which is proving to the people newly venturing to have a lot of fun in doing, people with hobbies in arts of cake making turn their talents into real business enterprise (Smith, 2010, pp 23- 67). It involves venturing into something you understand how is done and doing it as a business. Online aspect adds the business advantage to the industry, effective online communications .boost the survival in the competitive market (Orsburn, 2012, pp 67-99). Data analysis The major response groups in the data collection process included the young children, the youths in high schools and colleges and some majority in the working age brackets, with each group giving their expectations. Appropriate action is normally undertaken after the response. Customer expectations from data gathered from customer interviews Findings on Customer expectations from the conducted interviews and the questionnaires giving their take and what they are looking forward to and the necessary actions that must be undertaken to satisfy the customer needs and keep the business going and keeping in good pace with the competitors’ in the industry on implementation of the project (Spencer, 2010, pp 34-89). Comments of the customer on the questionnaire The customers show the online means of shopping to be economical and time saving in regard to offering the information. Moreover, the customers expressed their satisfaction in the way the online system communication works. The main concern of the customers that were expressed in the questionnaire was the quality of goods and price of the products. Focus group The target group was mainly the young children, the youths in high schools and colleges and working people a) Quality supplies The response of the customers affirms that the prevailing sells is of high quality thus depicting that majority of the customers always like for quality cupcakes. Quality will thus be maintained in order to attract a good stream of customers (Smith, 2010, pp 23- 67). The underlying necessary actions for addressing customer concern on quality include: Good baking skills that will make the cupcake compete effectively with the other supplies. Attractive packaging that will be more appealing to customers, the main market for the cupcakes are the children and college students with a small population of the young working groups, such customers are always drawn by the aesthetic value of the commodity in the market (Orsburn, 2012, pp 67-99). Variety supplies this will provide the psychological quality in getting range of items with the same brand identity to choose from the customer will balance their tastes by the supply. Legal operations Every customer had concerns about the legality of the business transactions, which is mainly based on the ease of contacting the authorities in case of alteration of the customer agreement by business operators. Since business is mainly carried out online the customer has to get the assurance that their credit cards securities are withheld. The customers insisted that before proving their card securities they ought to be assured that the business is legal and registered with the local authorities (Smith, 2010, pp 23- 67). On giving the customers the legal assured the online cupcake business ought to be registered by the local government authorities in the area of operation and the corresponding health authority that deals with food thus authorizing them full certification in handling its transactions online (White, 2012, pp45-123). The necessary certificates must then be uploaded on the business sales website for online customers to confirm. Project development steps First step Having and maintaining supply of best quality cakes This helps in acquiring business immunity from the competitors and guarantees full survival in the industry, potential customers will always go for best qualities. Second step Obtaining legal recommendations and license of operating the business. Getting the go a heads from the local health departments, agricultural authorities allowing the venture after considering the operational conditions this allows for smooth operations and also helps in building customer confidence. Get license from the local authorities to affirm the legality of the operations Third step Have a variety of cupcakes and set good promotional tactics and grounds Taking quality pictures of the cupcake varieties. Getting an enticing brand name for the cupcakes and designing security logo to secure the name. Use the name and the logo to online advertisement after creating a good website. Forth step Good packaging Get secure packaging for safe deliveries if incase of distance sales. Provide boxes or polyethylene bas as after sale services for local sales. Decorate the packages with the cupcake name and logo as a form of advertisement. Fifth step Business launching Create online sales points Advertise the sales websites on some well-established websites like social networks Take the cupcakes to trade fairs festivals and give free launch samples to attract potential customers to the brand. Sixth step Cupcake business promotion Use the social media like Facebook, twitter ,LinkedIn, P interest and Google plus for promotions Offer gives outs to potential customers. Identification of individual risks in online cupcake business and how to overcome them Most Probable Risks in online cupcake Business Risk Risk management Fraud; there is no proper way of authenticating the pin number, the official signature or the identity of the credit card holder making the online dealings open fraud Acquiring the anti-fraud software that will provide the Intel detections of potential transactions prone to fraud. Contacting experts to help in encrypting the systems with antifraud techniques for both master card and visa. Difficulty in identifying or proving the validity of orders provided that the credit card holder does not give prove of his/her security details Always keeping the security alerts and getting charge barks for cards whose transactions are not properly fulfilled. Supply delays in case of cross borders or distance sales Always make supplies in time and if incase of any spoilt supplies due to delays replacements must be made to keep the customer loyalty. Closure by local health authorities Hygiene standards and the enforced regulations of the local health authorities must always be paramount. Financial risks the risks that may rise due to financial mismanagement, lack of accountability and losses in the course of business. The accounts must always be kept up to date and managing all the business transactions keenly. Care must be taken in handling the online sales not to fall prey to fraud. Data gathered on market adaptability perspective The table shows the analyses representation of the data gathered on ratings by the expert experts interviewed. Aspect Experts rating (high votes for those in support) New ventures into online/e-business 10 New ventures into cupcake business 8 Doing cupcake business online 9 From the experts survey it is evident that the experts’ advices that online cupcake business Is up for grabs and anybody venturing in the cupcake business and incorporating the E-Business idea into it has a market advantage. The major stakeholders in the industry of cupcake supplies have grown greatly in numbers and the industry have attracted interest from a majority of people. The customer knowledge about the product and the supply schedules across countries portrays a good competition warning (Smith, 2010, pp 23- 67). Prior to commencing the business necessary precautions and arrangements ought to be taken into consideration in order to acquire market immunity. The best advantage that presented from the data is the lack of those in the industry and doing online sales the online platform is an opportunity to grasp. The table shows the market coverage of the already existing competitors based on the market coverage and customer interviews. Name of business Customer knowledge as a percentage Scale of production and market coverage Stone cupcake experts 42% 29% Super bakers 38% 18% Market adaptability survey The table shows the representation of the analyzed data in market adaptability survey from the focus groups. Aspect Age group in years Representation in percentage Customer knowledge of cupcakes 1-5 5-25 25-55 Above 55 45% 80% 75% 70% Customer knowledge and loyalty of the existing suppliers 1-5 5-25 25-55 Above 55 45% 60% 50% 65% Customer support on online sales as a better deal 1-5 5-25 25-55 Above 55 30% 90% 85% 70% Customer feeling that the available suppliers doesn’t meet all their needs 1-5 5-25 25-55 Above 55 Not sure 56% 45% 47% The data shows that a good number of customers in all groups need cupcakes. Nevertheless, they are not satisfied by the services offered by the existing suppliers. The survey also depicts that online transaction offers a good platform for market immunity since it has no major operators (Spencer, 2010, pp 34-89). Conclusions drawn from the analysis of the data collected The online cupcake business is a viable business venture and the market appears to be an open play ground for those interested. Incorporating the online sales platform (E-Business) in the supplies of cupcakes is customer welcomed and competition survival tactic. The online sales are welcomed by the customers as it makes it easier on their side in making the orders and get deliveries other than working to shops. The customers can learn on any matters a rising without spending time and money. Bibliography Spencer, P. (2010). Start a cupcake business today. Middlebury, VT, Information Tree Press. Bailey, L. (2013). Small business guide to online marketing: a step -by-step guide to growing your business online. [S.l.], Brightword Publishing. Orsburn, E. M. (2012). The social media business equation using online connections to grow your bottom line. Australia, Course Technology PTR. http://site.ebrary.com/id/10466311. White, C. (2012). Seasonal cupcakes. Newton Abbot, David & Charles. Sears, S. K., Sears, G. A., & Clough, R. H. (2010). Construction Project Management A Practical Guide to Field Construction Management. New York, John Wiley & Sons, Inc. http://www.UCM.eblib.com/patron/FullRecord.aspx?p=624355. White, C. (2012). Seasonal cupcakes Halloween. Newton Abbot, UK, David & Charles. http://www.contentreserve.com/TitleInfo.asp?ID={DDA0A060-2860-4FF4-976A- D708F8C431F9}&Format=410. Smith, L. (2010). Cupcake celebration. Concinnati, Ohio, David & Charles. Read More