Sprinkles Case Study: capitalizing on the comfort trend with an everyday treat offering

Content

• DATAMONITOR VIEW
• CATALYST
• SUMMARY
• ANALYSIS
  • Cupcakes have gained popularity by addressing consumer comfort and indulgence needs
  • The recession has encouraged consumers to seek comfort foods that have indulgent qualities
  • Cupcakes offer growth potential in the lackluster bakery market
  • The US remains a cupcake stronghold, but other countries offer growth opportunities
  • The appeal of cupcakes has prompted other categories to launch cupcake-flavored and fragranced goods
  • Sprinkles is a leading retailer of cupcakes that has grown by capitalizing on its celebrity following and online fan base
  • Sprinkles was founded in 2005 and is growing across the US and abroad
  • The company promotes an everyday indulgent offering, while also making more bespoke celebratory foods
  • Everyday offerings include a vast array of toppings and limited editions
  • Frosting shots were developed for people demanding a topping fix
  • Sprinkles' wedding and party cakes offer a modern take on traditional party foods
  • Sprinkle's dog cupcake offering has a quirky element that could appeal to pet owners
  • Sprinkles has been able to achieve positive, high profile word-of-mouth marketing, while utilizing online marketing
  • Word-of-mouth marketing has benefited the company, both through online blogs and a celebrity fan base
  • The company utilizes the internet well, with a presence on social networking sites and an online ordering service
  • It has also developed a range of clothing promoting the brand
  • Sprinkles has been inventive in its selling techniques
  • Sprinkles outlets have a caf?(C) styling with a relaxed ambiance
  • It has launched a mobile delivery van to catch lunchtime markets
  • New competitors could impact Sprinkles' future growth
  • Cupcakes are easy for companies to copy, having little that can be trademarked
  • However, Sprinkles is protective of its trademarks, suing firms which have similar marketing symbols
  • Conclusions: affordable, indulgent foods that offer comforting elements can expect to do well in the current climate
• APPENDIX
  • Case study series
  • Methodology
  • Secondary sources
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • Table 1: US bakery market by category, 2003-2013, $m
• List of Figures
  • Figure 1: Comforting food and drinks are becoming more popular with a significant proportion of Americans
  • Figure 2: Over a third of US consumers find authentic, home-made or original claims to be influential in their food and drink purchases
  • Figure 3: Cupcake launches in the past five years have been predominant in the US and India
  • Figure 4: The popularity of cupcakes has prompted manufacturers to launch a variety of cupcake-flavored and fragranced products in a range of categories
  • Figure 5: Sprinkles is a leading US cupcake bakery chain
  • Figure 6: Sprinkles offers different flavored cupcakes that are available on different days