“GoodieBox” is an “at home” bakery located in the town of Bloomsburg, Pennsylvan
ID: 457432 • Letter: #
Question
“GoodieBox” is an “at home” bakery located in the town of Bloomsburg, Pennsylvania.
GoodieBox specializes in beautifully iced, mini cakes (personal size.) The bakery was
started four years ago by Pat Taylor, a Bloomsburg University Business Management
student. Pat started the bakery to earn a little extra cash for college expenses.
Pat’s idea for the mini cake was not planned. In fact, Pat was planning to bake a
birthday cake for one roommate, Terry, when the realization occurred that there were
not enough ingredients to make a full-size cake. Rather than getting in the old beat
up Honda Accord and running to Weis Markets for more ingredients, Pat decided to
bake a “mini cake” for Terry. Using an empty coffee can as the cake pan, Pat whipped
up the first “mini cake” Well, Terry loved the cake so much, and told all friends, who told
all their friends, and, well, you can imagine how GoodieBox’s mini cakes became a very
popular item among the college cake-loving crowd!
For the past four years, Pat has been using the kitchen in the Bloomsburg apartment to
bake scrumptious, beautifully iced, mini cakes. However, Pat recently graduated from
Bloomsburg University and is now contemplating doing this as a full-time job, possibly
opening up a “brick-and-mortar” business somewhere in the Bloomsburg area.
As a consultant to Pat, you need to help with this decision. To assist you, please read
and then provide a response to the following questions:
Since Pat and friends have graduated, there is no longer a connection with Bloomsburg
University Students. Pat will need to find several ways to keep connected to the target
market. Under this scenario, Bloomsburg University students are Pat’s target market
and Pat’s cakes were selling via word of mouth.
GoodieBox
Page 3
1. Assuming Pat has a low budget, (a) list at least five strategies that Pat can use to
market the cakes to Bloomsburg University students and (b) Will Pat need to
purchase anything to implement these marketing strategies?
2. Assuming Pat has received several new customers, list two types of marketing
strategies Pat should start to develop for loyal returning customers.
3. GoodieBox is a cash only business. However, Pat realizes that parents may
want to buy cakes for their sons and daughters for care packages, birthdays, etc.
Under this scenario, Pat would like to accept credit cards. What are the
advantages and disadvantages Pat will need to consider if Pat decides to accept
credit cards? Provide two advantages and two disadvantages.
4. Assuming a website is built, what are three additional strategies (other than
selling cakes) that Pat can utilize on the website to help generate money?
Explanation / Answer
1. Assuming Pat has a low budget, (a) list at least five strategies that Pat can use to
market the cakes to Bloomsburg University students
Pat has a low budget, therefore to begin with the old strategy of using word of mouth publicity should not be left rather try to expand to larger market size with the help of old friends and old customers. For this the social media use may save the otherwise use of commercial media. Strategy to exploit the social media may take more of his time but saves the costs to great extend. Thirdly in order to have advantages of his unique idea about new variety of cakes, he should take necessary patents and copyrights with respect to brand name, product and processes etc. Next before venturing in the brick and mortar model, it may be better to expand the scale of operations in the areas in the neighbourhood of the Bloomsburg University. Strategy to have a web-site and online sales with home delivery may be used.
and (b) Will Pat need to purchase anything to implement these marketing strategies?
Yes, Pat may require to purchase the necessary equipments, containers, mixers, frige and refregeration etc and also the raw materials (inventory) in sufficient quantities. Further the necessary transportation vehicles ( scooters/ motorcycles/ van etc.) for home delivery or making available the cakes at the right time at the right place as per the online orders received.
2. Assuming Pat has received several new customers, list two types of marketing
strategies Pat should start to develop for loyal returning customers.
The strategy may be similiar to that adopted by Banks for their credit cards. Some discounts may be given on the repeat orders and secondly let the customers accomulate credit points based on their orders which can be later on used for redeeming against new orders. Cash incentives may be given based on the addition of new customers through referral system.
3. Advantages of credit cards are in terms of easy and fast payment system, incentives to spend such as cash back, loyalty points etc. No hassles for keeping change or currencies in different denominations. The biggest disadvantage of credit cards is that they encourage people, specialy young generation to spend money that they don't have. Secondly, the interest charged by the credit card companies are always on the higher side. Further the credit cards may be wrongly appropriated by unauthorized persons. Credit cards allow you the right to dispute billing errors and defective merchandise, payments may be in installments. Most of the disadvantages of credit card are related to its use in an unwise manner. Credit card fraud is a possibility that may result in not getting the money when it is required the most.
4. Websites are used for advertising purposes and also to invite suggestions and feedbacks and also inviting people to get associated with the firm as part-time, full-time employees.
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