1. Who Will Be Your Businesses Competition? What Product Or Service Does Your Business

Cupcake Avenue

“Live life one cupcake at a time”

By: Katelyn & Haleigh Stanley Williams High AOF Teacher: Rhonda Farmer 1. Who will be your businesses competition? What product or service does your business compete with?

In Burlington, there are a few bakeries that we compete with. The bakeries like Buy

Me Cake, Main Street Bakery and Tasty Bakery. Cupcake Avenue offers better service

and products. The bakery, Buy Me Cake, charges $15 for a consultation and for a tasting

package. Our consultations and our tasting packages are free. Buy Me Cake requires a

$100 deposit in 14 business days prior to the delivery or pick- up. We accept payment

prior to delivery or pick- up and the deposit is only $50. Our bakery also has free Wi-Fi

so our customers can use their electronics in our bakery. Main Street Bakery does not

offer non-dairy products in their bakery. Cupcake Avenue provides non-dairy products

for our customers with special diets or health issues. They are only opened Tuesday

through Friday and our business hours are Monday through Friday. Their flavors also

vary from day to day. We always have the same flavors every day in our bakery. Tasty

Bakery does not offer a Cupcake ATM like our business. When our business is closed,

you can still buy cupcakes to satisfy your cupcake needs. Other competitions include

stores like Wal-Mart, Food Lion and Harris Teeter. Their bakeries are limited and only

provide limited products as well. They do not have many flavors like our bakery. You

cannot order specialty cakes either. They only provide a certain amount of cake

decorations. Our business offers a lot more than other bakeries offer. 2. Identifying your business customers?

In our business, Cupcake Avenue, we plan to sell a variety of products. We plan to sell

cupcakes, cookies, cake pops, wedding cakes and specialty cakes. We will make $4,004 on

cupcakes each month. That adds up to be $48,012 a year. Cookies will be $6,006 per year.

Wedding and specialty cakes will vary according to the time and detail. Wedding cakes will

add up to be $30,030 a year. Specialty cakes vary in size and detail as well. Specialty cakes

will be $30,030. Cake pops will be $500.50 per month. For a year, cake pop sales will add up

to $6,006.

3. What will influence growth in the market segment(s) you have chosen?

There are many factors that influence people to buy cupcakes and cakes. Outside factors

like, TV and celebrities have a big influence on what customers buy and do not buy. TV

shows such as, “The Cake Boss”, “Cupcake Wars” and other baking shows influence people

to buy from bakeries. As people watch these shows, some crave and instantly want a

cupcake. Outside factors that could decline our business are reasons to not consume sweets.

These factors are based from doctors, diets and health problems. 4. What price do you want to charge for your product or service?

Our prices vary because it depends on what type of product our customers are buying. Each one of our cupcakes costs $2.50 each. If our customers need more than just one cupcake, a six pack is $7.50 and a dozen cupcakes is $15.00. Over fifty cupcakes are $2.20 each and specialty cupcakes are $2.75 each. Our sheet cakes are ¼ and ½ in size. The ¼ sheet cake is $30.00 and the ½ sheet cake is $50.00. For specialty sheet cakes, it will depend on what you would like on your cake. Layer cakes depend on the size and serving. A six inch (round) is $10.00 because it only serves six to eight people. The eight inch (round) is $20.00 and it serves twelve to fifteen people. The price goes up ten dollars every two inches. Wedding cakes require more time and work. Wedding cakes are based on serving size. It is $2.20 per serving for vanilla, chocolate and marble. For special flavors like, strawberry lemonade and red velvet is $2.75 per serving. The pricing varies because of what we use for your cake, decorating and how long it takes to make.

These prices fit well because our prices are not too high and not too low. They are affordable and we have payment plans for wedding cakes. We also sell cake pops for $1.00 and cookies for

5. What sales volume are you targeting? In the first couple of years, Cupcake Avenue plans to make $4,004 per month on cupcake

sales. Cookies and cake pops will each make $500.50 per month. Wedding cakes and

specialty cakes will make $2.502.50 per month. In total, Cupcake Avenue will make

$120,120 per year in sales. For our business, we plan that the profits will grow in the first

couple of years. Our business hopes to have a steady flow of customers which will

increase our profits and income.

6. How will you advertise or promote your product or service to your customers?

For advertising and promoting our business, we will use inexpensive and available

resources. To attract customers, one service we will use is Facebook. It is free and many

people use Facebook. An ad on Facebook is very inexpensive. Another available resource

for advertising is twitter and instagram because they are free and popular social media

sites. Giving free cupcakes to other businesses and offices will promote our baked goods

and business. Also, our friends family will help promote our business by telling their

friends and co-workers.