Perfect Match Cakes
Perfect match cakes is a company that started in the year 2015 and is located in Puerto Rico but later moved to Orlando, FL, in the United States of America in August 2016. Still, in this new location, the company’s target market has remained to be the Orlando community residing in the same area. The company was founded from the owner’s love for baking cakes and their habit of making cake masterpieces with the intentions of making other people to admire it and also enjoy. The name of the company was not based on the products produced, but rather from the nicknamed hey had been given by their husband. On the contrary, the company does not have a store or particular operating point. Additionally, the company has a weak marketing strategy because for once, the company reaches out to their clients by word of mouth. The target market for the company involves individuals holding birthday parties, wedding cakes, and other diverse activities. The main competitor for the company is the E & M cakes and the owner does all the work in the enterprise, from marketing to making cakes. For instance, the owner intends to open an Instagram account to expand their customer base. However, for the company to realize its full potential, marketing action programs will have to be executed.
What will be done?
It has been noted that the Perfect Match Company is a small business with a potential of growing big. Therefore, in coming up with the marketing programs, it should be noted that the company does not have all the resources needed in investing on mass marketing campaigns. Therefore, the company can benefit by putting more focus on areas and niches that great bakeries are failing to address. Equally important, the market segments for the company should be realistic and measurable and in line with the investments and marketing strategies for the enterprise.
Creation of a Clear Profile of the Target Market: Building an Outline
The owner of the company should seek to identify the gender, income level, age, and lifestyle, levels of education, interests, and hobbies of the people they intend to sell the cakes to. Creation of such a profile will enable the owner to develop the marketing strategies and other tactics that will be used in attracting the primary customers (Parasuraman, Grewal & Krishnan, 2007). For instance, the owner can adopt a plan whereby they will focus on the creation of cakes used in weddings as well as engagement for individuals within an age bracket of 20-30 couples.
Consideration of the Geographical Area
The owner of the company should ensure that they have identified the geographic area they are planning to market their product and also put in mind the nature of the competition. In this case, it has been determined that the main competitor is the E& M cakes. Therefore the owner should seek to identify what they can do not only different but also better than them. The owner should compare the products offered by their competitor and also outline the type of goods they are planning on selling and also include other services to supplement the products they offer (Parasuraman, Grewal & Krishnan, 2007). For example, the owner of the company can adopt different cake decorations and also offer to have decoration classes.
Identification of the Demographic
Demographic segmentation reflects factors such as gender, age, and income levels. For instance, young people are more likely to order cheap products such as pastries while cakes for special events are more likely to be ordered with high-income families(Parasuraman, Grewal & Krishnan, 2007). Therefore, the Perfect Match Company should seek to ensure that their pricing, as well as product mix, should be based on the location and the nature of the competition. For instance, if the company is located in an upscale neighborhood, the owner should focus more on custom cakes than pastries which would translate to high-profit margins, but low volumes (Parasuraman, Grewal & Krishnan, 2007).
Carrying Out a SWOT Analysis
The main reason for conducting a SWOT analysis would be to identify the strengths, opportunities, threats, and weaknesses existing in the cake business and also identify the how they would react to these factors (Speth & Probert, 2015). For instance, the Perfect Match cake business, the strength may be the expertise the owner has in making cakes. On the other hand, the weakness could be the fact that the company is only operated by one person and also that the company has not established marketing platforms (Speth & Probert, 2015). Additionally, the company does not have a broad market range, and therefore the company is limited to the people they serve. On the other hand, an opportunity, in this case, may be the fact that the firm is homemade and therefore serves a not more than 50 miles radius. A threat, in this case, would be that the E & M Company and other competitors visit the Perfect Match’s customer base.
Adoption of Promotion Techniques
Bottom line, Perfect Match has developed from the love of baking cakes, and transformed into a business idea that can fetch massive profits. However, the fact that it is a good idea does not guarantee that the cakes will bring high incomes if the promotional strategies are not put in place (Borgeon, Cellich & Business Expert Press, 2012). Promotion of products requires a business to market their products actively, and therefore the owner of the company should be able to understand the advertising techniques such as contacting the local businesses, the creation of a website, and spreading about the products by word of mouth (Borgeon, Cellich & Business Expert Press, 2012).
Word of Mouth
Spreading details about a product by word of mouth has been noted to be the most effective form of marketing and promotion. The Perfect Match company has made sales from spreading information about the cakes by word of mouth. However, the disadvantage associated with this form of marketing is that only a limited population can get the information (Borgeon, Cellich & Business Expert Press, 2012).
Developing a Website
A website enables the consumers to purchase products from the internet. However, the company in question has not invested any amount on internet marketing. The owner of the market is, however, planning on opening an Instagram page to reach out t many consumers. Internet marketing enables a company to promote sales and also exposes a business to people n a greater scale (Borgeon, Cellich & Business Expert Press, 2012). For this company, however, a website is not necessary because of the amount set aside for marketing is not enough and also that the firm is not entirely grown.
Contacting the Local Businesses
The owner of the company should ensure that they have contacted other local bakeries so that they can make their sells at a wholesale price (Borgeon, Cellich & Business Expert Press, 2012). Even though the returns will e few compared to selling the cakes themselves, the company will benefit from the exposure (Borgeon, Cellich & Business Expert Press, 2012).
For a company to thrive in the competitive market, marketing programs have to be identified and implemented. Marketing programs enable a business to realize the target market, which in turn influence the nature of the products and prices. However, the marketing programs have to be within the company’s budget to ensure that all its reserves do not go to activities related to marketing.
Borgeon, M., Cellich, C., & Business Expert Press. (2012). Trade promotion strategies best practices. New York, N.Y.] (222 East 46th Street, New York, NY 10017: Business Expert Press.
Parasuraman, A., Grewal, D., & Krishnan, R. (2007). Marketing research. Boston, MA: Houghton Mifflin Co.
Speth, C., & Probert, C. (2015). The SWOT analysis: Develop strengths to decrease the weaknesses of your business. Namur : 50Minutes