Sprinkles Case Study: capitalizing on the comfort trend with an everyday treat offering
Datamonitor
July 13, 2009 16 Pages - SKU: DFMN2391899
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Introduction
This case study on Sprinkles forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how the cupcake retailer has captitalized on consumer demand for comfort and indulgent foods with an everyday treat.
Reasons to Purchase- Gain insight into the methods used by important industry players to give them a competitive edge
- Identify specific areas for operational improvements
- Capitalize on the knowledge of experienced companies when entering a new niche or market
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- 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 café 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
- List of Tables
- 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
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