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

Published by: Datamonitor

Published: Jul. 13, 2009 - 16 Pages

Table of Contents

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

Abstract

• 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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