Very High Percentage Of Nona's Sweets Customers example essay topic

Nona's Sweets Executive Summary This brand communication campaign has as its primary objective to establish Nona's Sweets as a high end bakery in the University area of Charlotte, North Carolina and to maintain brand awareness of Nona's Sweets goods among the families, businesses, and churches in the area that crave high quality baked goods. From its beginning in a home in Charlotte, North Carolina four years ago, Nona's Sweets has expanded. Today they are to a company with a store on North Tryon Street. From its very start, Nona's Sweets baked goods have been produced to be the utmost its class offered.

At this moment in time Nona's Sweets is in its growth stage and is continually seeking to uphold a strong relation with its consumers. The Olympus Advertising Agency has developed a comprehensive plan to position Nona's Sweets' baked goods as the most outstanding in the baking industry. I. Situational Analysis. Bakery Industry In recent quarters consumers based their purchase decision on price and perceived value. This trend has increased the sale of private brand baking goods at expense of its branded competitors. According to the food institute, sale of food for at-home consumption have skyrocketed in recent years. These food retailers only accounted for 1.8% of food in 1991 and by 2003 their percentage rose to 11.1%.

USDA projects that the consumer price index for food will rise from 3.0% to 4.0% in 2005. CPI for all types of food rose 3.6% for the first nine months of 2004 and it is projected to increase even higher. B. Company and Brand History Company Background It all started four years ago when a family member had a birthday where a cake was ordered from the local grocery store. The cake was not up to par. Dominica Clementi's mother Nonna Jo-Ann decided that she could bake cake that was better. She sent her daughters to school to learn pastry decorations in order to keep up with the new trends of baking. They started by making cakes out of their home.

From word of mouth around the church and community Nonna Jo-Ann and her family started to bake for holidays, family functions, and religious activities. In December of 2004 Nona and her daughters bought a store in the Terraces at University to keep up with increased demand for their product. Brand Background To meet the demands of quality baked goods market, Nona's Sweets developed there own baked goods in 2001 what would enable customers to enjoy their own top quality baked goods with out the mess of the kitchen. The founder of Nona's sweets is Nona her self. She decided to open the store front for people to enjoy her superior baked goods. Her daughter Dominica has described their baked goods as, "the up most delectable tasting baked goods in the area".

Marketing Mix Being in business for five years now Nona's Sweets has produced a marketing mix that will increase sales, produce brand awareness, and develop a relationship with the community as the leading bakery in the area. Product From a delicious dark chocolate 2 layer cake with whipped cream icing to trays of many different types of fudge, Nona's has a wide variety of sweets to offer customers. Nona's cake line has everything you could ask for when in the market for a specialty cake. Cakes are a big part of the sales for Nona's.

However, desserts; pastries; cookies; candies; fudge and trays compliment the delicious list of sweets. As a customer you can buy a single cannoli or a tray of cookies, muffins, fudge, pastries, or croissants to serve a function at home or in the office or for private consumption. Price Nona's Sweets products are considered to be "premium priced". Consumers tend to prefer Nona's Sweets over other brands because of the high quality delicious ingredients used to make the baked goods. The cakes range in price from $20 up to $140. Cookies are available at.

40 cents up to. 95 cents. There are also many other desserts, pastries and candies they range from. 50 cents to $12 in a single piece or one can buy by the dozen. According to consumers, product prices are justified by the rich fullness of the cakes and pastries that cannot be obtained by any other bakery. By buying such an admired trade name in the bakery industry, Nona's Sweets consumers know they are getting high quality sweets at a quality price.

Many of Nona's Sweets consumers only buy their baked pastry goods from them. PlaceNona's Sweets is located at 9601 N. Tryon St. in The Terraces at University Place, a shopping center in the university area of Charlotte, near McCalister's Deli. All products are made and distributed in the shop. Cookies can also be mailed to customers all over the United States in the same day with a purchase of two-dozen or more cookies.

The cookies are received two days after order is placed, so the cookies are soft and fresh. Orders can be placed by phone, fax or by visiting the store location. The location is convenient to area business employee's to stop in and get a pastry for breakfast or to fulfill an after lunch sweet craving. Being located in the University area gives students easy access to get home-made cookies and cakes to fill the void of being away from home or to relieve the stress of studying. The area is also home to many families and Grade schools who will need cakes and treats for birthdays and special events. Kids can even have their birthday party at Nona's Sweets where they can enjoy all the tasty treats and see how they are made.

Customers can enter the shopping center by traveling south on N. Tryon St and there is plenty of parking available. Promotion For Nona's Sweets grand opening in December of 2004 10% off coupons were mailed out to area consumers in order to build an awareness of the store opening. With a relatively small advertising budget the bakery has a number of cost effective methods for building brand awareness. Other than word or mouth around town Nona's Sweets uses print media as a way to advertise their bakery and product line. They also use the yellow pages, which is used for 12 months out of the year. This helps consumers choose a bakery if they don't already have one in mind.

Also, Little One's magazine and Carolina Bride are print media that Nona's Sweets uses in order to reach a part of their target audience. Another print source for building brand awareness in the Charlotte area is the University City Magazine. Lastly a promotional idea that brings parents into the store is the Great Kid Reward card. This is simply a card that is given to an area salon, who in turn give them to children who get their hair cut. The child can redeem the card for a free cookie at Nona's Sweets.

This is important to the bakery because it gets parents in the store so they can see all of Nona's Sweets offerings and build more brand awareness of. Technology and Innovation Technology plays a big role in any industry today no matter what you are involved in. Some technology corporations have come up with baking software, batch control systems, bakery product costing, and quality assurance software. These programs can be essential to a retail business with a small number of employees like Nona's Sweets.

There is also software that can track shelf life of individual foods in order to keep fresh foods out for customers. Environmental Concerns Recently there has been a rise in the demand for gluten-free products linked to the increase in coeliac disease and other allergic reactions to wheat gluten. This creates a major technical problem for bakers since the gluten-free products currently available on the market are of a lesser quality. Another concern is the increasing demand from customers for organic foods. Organic baking ingredients (including flour) need to be implemented for alternatives to conventional substances. At the present time these alternatives are being investigated.

Social Trends With the increased attention on being slim, healthy, and dieting in today's society the trends of eating bakery goods as well as other food products has changed dramatically in the past decade. The trends toward healthier eating in society have influenced consumption patterns in all food industries, especially the high carbohydrate areas. This has led to an increase in low-carbohydrate menus in every part of food industries. Along with counting carbohydrates, packaging foods for convenience and portability has been important to bakeries because of the fast paced society of all workers.

Successful packaging strategies are aimed at smaller size packs, lock in freshness bags that increase the storage life, and an emphasis on the health benefits of the product. Economic Influence According to Neil Westerguard, in his article titled "Hungry? Filled? It's the Economy" the consumer market for sweets and dessert food items in the U.S. increases as the economy falls.

This is due to the fact that Americans use these foods as a stress reliever. However, being a high-end bakery Nona's Sweets should have no problem in today's growing economy. Because Nona's Sweets provides a physical and emotional need through their products such as wedding and specialty cakes as well as fudge and pastries, the growing economy will most likely increase sales for the company. C. Product Evaluation Nona's Sweets currently offers eight product lines that include Cakes, Nona's Deluxe Dessert Cakes, Nona's Desserts, Nona's Pastries, Nona's Cookies, Nona's Candies, Nona's Fudge and Trays. Each individual product line has its own distinctive values. Out of the eight product lines the most popular is the Cakes for birthdays and miscellaneous events. Presently, the Cakes line includes five different cake flavors, with a choice of two cake icing.

Also, there are four premium cake flavors that include also seven different fillings. In addition, there are also eight premium icings. The also offer specialty cakes and cakes that can be shaped into specific designs such as a heart, number and a cross just to name a few. o Product strengths are in their tastes and delicious sounding names. They will instantly have a person drooling. Hazelnut, Amaretto, Strawberry, Almond, Lem one, Apricot, Pineapple, Chocolate Gana che, Mint Chocolate Butter Cream, Fudge Chocolate Shadow are amongst the most popular cakes, fillings and icings. o Product weaknesses are that sweets are mostly sugar, and in a care conscience society that can hurt sales.

Also we set our prices higher than most of our competition. D. Competitive Analysis In the baking industry in Charlotte there are many competitors for Nona's Sweets. Yet, her top three competitors are Cake Expressions by Lisa, Hansel & Gretel Bakery, and Audrey's specialty cakes. However, Hansel & Gretel Bakery does not specialize in different celebration cakes or wedding cakes, so they are not included in our competitive analysis. Compared with the three competitors mentioned before, Nona's Sweets prices for cakes fall between the mid- to high-price ranges. For pastries, cookies and other assorted sweets, Nona's Sweets prices range form mid- to low-prices. Audrey's Specialty cakes and Cake Expressions by Lisa both specialize in custom designed and hand crafted cakes that reflect their unique style and flair.

They both like to use the finest, freshest, and highest quality ingredients which they believe will insure that their baked goods will amuse not only the eye but also the apatite. Analysis of Promotional Efforts Audrey's Specialty Cakes and Cake Expressions by Lisa both use the same promotional efforts. Their websites are their main way of promoting. The websites are very detailed with baked good offerings, location, and contact information readily available. In addition to the website they also promote from within their stores. Both of the stores atmospheres are inviting to consumers.

The smell of baked goods instantly makes one hungry upon entering. Finally, they promote through the same magazine that Nona's Sweets uses, Carolina Bride. Strengths and Weaknesses Audrey's Specialty Cakes Audrey's Specialty Cakes based in Charlotte, North Carolina. Audrey McDonald is the owner and for twenty years she has been making her creations. She started making cakes in England which her main focused for several years were wedding cakes. Strengthso Audrey provides special cakes that others do not create.

They believe that adults should have fun too so they provide special adult cakes for any occasions. Audrey also creates cake for any sports fan with the logo or the theme of their favorite sports team on the cake. Audrey also caters to diabeticsWeaknesseso Audrey's Specialty Cakes does not have sufficient information on her website nor does it navigate easily. Unlike Nona's Sweets, Audrey's do not include fudge or Italian style pastries on their menu. Cake Expressions by Lisa Cake Expression by Lisa creates finest confectionary delights.

They specialize in custom creative designed and special hand crafted cakes that is unique. Also, they provide tailor made cakes that meet the customer's personal style and requirement. Strengthso Cake Expression by Lisa customizes beautiful wedding cakes that can reflect the color and the style of your wedding. Lisa's is known for its artistic talent that will bring any ideas to life in the form of eye catching wedding cakesWeaknesseso Cake Expression by Lisa's website is not as eye appealing as Nona's Sweets or Audrey's Specialty Cakes is.

The homepage is very plain with no pictures. One has to hit the gallery icon to enter where the pictures are available. Yet, unless you read all the information on the homepage it is difficult to find. SWOT Analysis Strengths o Nona's Sweets is known for its specialty desserts, cakes, cookies and homemade candy recipes. o Outstanding service so Blending highest quality baked goods and imaginative designs into sweet so Family atmosphere Quality is higher than competitor so Nona's Sweets is the only Italian bakery on the North Side of CharlotteWeaknesseso Little trade promotion so Advertising expenditures are not spent suitably o Low consumer awareness o Prices are higher than competitorsOpportunitieso More exposure through the National Association of Wedding Professionals and Trade show so Charlotte is one of the leading wedding destinations for the Carolinas o Gaining sales through involvement with the NOT. com of North Carolina and other wedding affiliates in North CarolinaThreatso Mass retailers like Wal-Mar to Bloom grocery has opened in the next shopping center o Increase consumer attention to health and carbohydrate counting.

II. Goals and Objectives. Marketing Objectives Sales Our objective is to increase sales by 10% through sales promotion and public relations efforts within a 12-month period. Market Share Through public relations, promotions, and advertising Olympus Ad Agency is creating a plan that will increase Nona's Sweets market share, which in turn will increase sales for the bakery.

Having an effective plan through Olympus Ad Agency will create more awareness of the bakery, keep our existing customers satisfied, and bring in more customers from the market. B. Communication Objectives Category Need The campaign will create a need for Nona's Sweets as the provider of Italian baked goods and wedding cakes for special events or to fulfill a personal craving. Awareness This campaign will create a 40 percent increase in awareness of Nona's Sweets and the store product offering to area professionals, schools, churches, caterers and wedding coordinators in the Charlotte areaAttitudeThe campaign will create excitement about Nona's Sweets Italian bakery concept while developing curiosity about the array of baked goods and treats offered to customers for their personal enjoyment, special event, or holiday. Purchase Intention The campaign will create purchase intention for the Nona's Sweets Italian bakery concept among area professionals, schools, churches, caterers and wedding coordinators in the Charlotte area.. Budget The Olympus Ad Agency has designated the overall campaign budget to consist of three separate areas of the marketing mix: Advertising, Sales Promotions, and Public Relations.

The bulk of our budget will be allocated to advertising and sales promotion. The Advertising portion will receive 35 percent (roughly $6,500); Sales Promotions, 64 percent (roughly $6,880); and Public Relations, 1 percent (roughly $80) of the $13,460 overall budget. The Olympus Ad Agency's decision to allocate the budget in this manner will be carried out by the launch of an intense campaign to properly introduce the new bakery, "Nona's Sweets". Media Budget For 2005-2006 Nona's Sweet has a budget of $13,460 which consists of three parts: advertising, promotions and PR.

As mentioned before, $6,500 is allocated for advertising. The yellow pages, Little Ones, Carolina Bride, and University City magazine will receive the bulk of the advertising budget. Promotion Budget The promotional budget for the campaign is going to be $6,880. For mailer coupons, $1880 will be allocated. Gift baskets for radio sweepstakes will cost $20 each. Another $40 will be allocated towards 5000 Good Kid Reward cards and $200 towards the annual membership fee for The National Association of Wedding Professionals.

Public Relations Budget The Olympus Ad Agency has a public relations budget of about $100. This money will be used to send out press kits to local newspapers and magazines to build awareness of the company. Also gift baskets which include fudge, cookies and other treats from Nona's Sweets, will be sent to local radio personalities on their birthdays hopes that they will mention the companies name and give a description of the products that were sent. IV. Creative Brief What is the opportunity and / or problem the advertising must address? o Nona's Sweets has an opportunity to market themselves in the Charlotte region as a high class unique bakery for any occasion. One of the problems with Nona's Sweets current advertising is that the company needs more frequency to their current customers in order to grow through word of mouth which is very cost efficient.

What do we want to do as a result of the advertising? o Create a desire to visit Nona's Sweets and purchase products for any baking need. o We are also trying to build an image for Nona's Sweets as a high class bakery with classic products for any occasion from weddings to birthdays. Who are we talking about? o Current customers in the University area. o Potential customers with a need for specialty sweets. o Wedding planners in Charlotte and surrounding areas in order to build awareness about the bakery. What is the key response we want? o Business from customers. o Create an awareness about Nona's Sweets in Charlotte Create a brand loyalty through increased customer service and direct marketing. o Build a bigger market share in Charlotte. What information / attributes might help produce this response? o Promotional advertising through free gift baskets. o Sales promotion activities for all customers. o Advertising in local magazines that can reach our target markets. o Press Release to wedding planners and consultants What aspect of brand personality should advertising express? o Quality Specialty Solution to any baking need Are there media or budget considerations? o $13,400 investment for advertising and promotions. o Product incentives include coupons, and loyalty customer cards. What other information might affect the creative direction? o The economy could have a big affect on our company because they are a high end bakery. o Budget constraints could affect them also because of their size. V. Media PlanA. Media Objectives Continuity: The Olympus Ad Agency suggests that Nona's Sweets allocate their advertising in a fighting pattern due to the seasonality of their sales that correlate with the different holiday and wedding seasons of the year.

Nona's Sweets will best capitalize on their advertising efforts during the periods that coincide with seasons of increased sales such as Easter, Christmas, and the June wedding season. Re achAt the recommendation of the Olympus Ad Agency, advertising in the test market in the first month will reach a very high percentage of Nona's Sweets customers. The highest brand awareness will be obtained for Nona's Sweets, when the desired reach is met. Frequency The target market will be exposed at an average frequency rate for the type of media we are using to get our message across. Of course those within our customer loyalty program, who will be receiving direct mail, will have a higher frequency rate than those who are not. B. Media StrategyTargetHusband and wife w / children ages 6-17, which spend 20.6 million on baked good annually that is a good group to target for special events and schools Business professionals for our radio sweepstakes and contest (BLS) Media Classes The Yellow Pages, University City Magazine and Carolina Bride have been selected as the media sources that will be used in order to reach our target markets. These media tools will increase awareness and create larger market share for Nona's Sweets.

Television and radio media sources are not going to be used because Nona's Sweets does not have the budget to pay for them. Direct marketing will also be used when customers give us their information for our promotions letter that will be given out periodically. With a local market it will be easy for us to get our message out to the Charlotte area. VI. Sales Promotions Recommendations The Olympus Ad Agency recommends continued use of the 10% off mailer coupon and the free cookie Reward a kid coupon. Some new ideas to consider would be running a contest for offices to win free pastries and coffee for breakfast through area stations, such as 107.9.

The promotion slogan would be, "Win a Morning Treat from Nona's Sweets" and anytime listeners hear the slogan the 10th caller wins the prize for their office. This would be a great way to spread awareness of Nona's Sweets breakfast items and spark interest by listeners about additional product offerings from Nona's sweets. Also running birthday sweepstakes through the Internet website would be a great idea. Signage in the store would direct customers to the website. The winner would receive a free birthday party and cake at Nona's Sweets. This promotion would increase awareness in both children and their parents.

When a child has their birthday at Nona's the children will love the experience and the parents will be exposed to the full line of products that Nona's Sweets offers. Then parents will generate awareness through word-of-mouth to other parents in the area, ultimately accomplishing our goal of increased sales. Another recommendation is to get involved in area wedding trade shows. Through joining the National Association of Wedding Professionals you will be able to advertise to brides to be and wedding planners through their website and will be invited to participate in wedding trade shows that come to the Charlotte area. Tom is a member of N AWP you just have to pay an annual fee of $200. VII.

Public Relations Recommendations Nona's Sweets has a wide assortment of products for every sweet tooth in town. Olympus Ad Agency has come up with the idea of having Nona's Sweets send out gift baskets to different media classes across town. The University Times is a newspaper on the campus of UNC Charlotte which gives students news and information about the surrounding area that pertains to them. Sending out a gift basket to the employees of the University Times will create awareness through the writers which have the power to let all students know about the bakery and how great the products are. The Charlotte Observer is the major newspaper for the region which is read by a good portion of our target market. Sending out a gift basket to the writers of the wedding section will hopefully create the same result as with the University Times.

Local radio stations will also receive gift baskets with the anticipation of a quick plug on the air. Press releases about Nona's Sweets will be sent to area wedding coordinators for churches, along with wedding magazines to create a buzz about the quality cakes for weddings in Charlotte. V. Database Marketing Recommendations Nona's Sweets currently has a small database for marketing purposes which needs a lot of updating in order to really be useful to the company. With such a small database a company, no matter what size, cannot gather useful information to market its products. Olympus Ad Agency is going to implement a database marketing program that will give Nona's Sweets information about demographics in the Charlotte region. Asking for customer's home addresses and email addresses will help Nona's figure out how to break down market information into specific parts. Nona's Sweets will use the information given by customers to distribute information regarding promotions, company information, and new products through filling out the cards in the store.

Customers will receive the information and at the same time Nona's Sweets will be receiving information about each customer which is vital to any business. IX. Campaign Evaluation After the first year the Olympus Advertising Agency will evaluate the progress of our promotion plan by analyzing the sales of Nona's Sweets in volume. Other Measures include: o Number of customers in database. o Number of hits to Nona's Sweets web page. X.

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Standard & Poor's Industry Surveys, 2.5) web cid 535830 tax 292574, 00. html 6) web) web) web) web 10) web CAKE+EXPRESSIONS+BY+LISA~T Charlotte~S NC~STYPE S~LID EnlvYcu%2 F%2 F 9 V 2 O Sih 8 xlkXw%3 D%3 D. htm 11) web Audrey%27s+specialty+cakes~T Charlotte~S NC~STYPE S~LID f 6 ii ga 8 NZEbcR 6 AujyS 3 Lg%3 D%3 D. htm 12) Charlotte Chamber web) Reference USA web) International Dairy-Deli-Bakery Association web) The Retailer's Bakery Association web) Chicago Area retailer's bakery association related links web) Bakery Production Clubs web org / prod club. html 18) The Federation of Bakers web) web 20) Westerguard, Neil. "Hungry? Filled? It's the Economy" Business First of Columbus. 2005 web 21) The National Association of Wedding Professional web.