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Construct a Cupcake

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Rebecca Scott

on 4 February 2014

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Transcript of Construct a Cupcake

Sweet Moments Present
Construct a Cupcake
Rebecca Scott & Aml Raza

'Construct a Cupcake'
Only 4 Steps:
1. Select your flavour of cupcake and the case. (Already pre-made)
2. Select your icing from the machine, (buttercream, fondant, etc)
3. Select your decorations, (sprinkles, sauces, ready-to-roll icing)
4. Go to the checkout to package your cupcake(s)
The Service
The Promotion
We will market our service by having our own website, where you can order pre-made cupcakes, book birthday parties or see what our company is about.
Also, we will hand out brochures and email those who have visited the website and registered online with us, keeping them up to date on the company.
When a customer buys a product, we will give them our business card when they come to pay, as well as handing out special offers if they spend a certain amount.
We will make special seasonal cupcakes, for example at Christmas as well as doing every-day ones.
The Place
Buyers will look for our service online, in the shop, from adverts in magazines and brochures, helping the companies publicity expand.
You are able to buy ordinary cupcakes from the website, in the shop and in big supermarkets, such as Asda and Sainsbury's. However, you can only construct a cupcake' in the shop.
You are able to book group sessions or birthday parties online. The prices starting from £20.
Other cupcake companies, use the media to promote themselves. For example, using brochures, the television, leaflets and business cards.
The Price
Flavours You Can Choose From:
Chocolate Brownie
Stick Toffee Pudding
Carrot Cake
Devils Delight
Cookies 'n' Cream
Fruit Salad
Rainbow Dazz
Icing You Can Choose From:
Mr.Whippie Icecream
Butter cream or Fondant:
(careful of allergies)
Assorted Colours
- pink,blue,red,green, etc
The intended target market for this product is children, aged 8-16, and families
The consumer is looking for a simple way to construct the cupcakes and be good quality.
To do this, we will set up a 4 step guide on what to do, and the cupcake buns, will be already made.
To ice the cupcake, there will be icing machines, much like ice cream ones and a 'Sprinkle Station'
The company will use recycled products to make the packaging, for the cardboard bags, boxes and cupcake cases.
We will try to buy most of our ingredients from fair trade to make sure the workers get a fair pay or use organic ingredients. For example, buying eggs from 'The Happy Egg co.'

The Packaging
t will be made out of recycled cardboard so it is sustainable and have a hole in the middle of the lid so you can see the cupcake(s) inside, depending on how many you buy and how big the box is.
The boxes will be made out of recycled brown cardboard, so it will appeal to more customers, instead of just having a plastic container, making it look more unique.
There will be red tissue paper inside and the cupcake will go in the middle to give it some colour against the brown box. The tissue paper will be recycles, making it more eco-friendly.
The Packaging and Design
The ribbon will be pink to match the label and it’ll be tied in a bow. It will also be stuck on at the top of the label where it is attached to the box.
The bag will be made out of dark brown,recycled paper. It will also have brown ribbon handles so they can be reused and are more sturdy. They are brown because it matches the boxes.
I will use batch production, in the construct a cupcake' taking place in the shop and normal cupcakes, ordered online. They will be produced daily, making them fresher.
For personal buns, which can be ordered online or in the shop, I will use one-off production because they become more personal, however they will cost more.
For the batch production, it may become continuous flow as the company develops and more shops are opened.
The cupcake cases will have the logo on the bottom of it and the company telephone number, email and address.
The label will have the cupcake type and the price on one side and on the other side it'll have the logo across the middle, with the contact details below.
The buns will be in the window so it appeals to the customers to enter and they enter the shop there will be a till at the side and the four stations. Pre-made cupcakes will be at the side, on shelves.
There will be room behind the shop to store the boxes and bags as the cupcakes are bought in fresh daily.
It costs £1.41 to make a batch of 12 fairy cupcakes.
Meaning each one costs 12p.
Adding the extra costs on, it would mean each cupcake costs £1.81
To make a profit of double the costing price, it means the fairy cupcake with be sold at a price of £2.50, which I realise is quite expensive for a cupcake but ours are of the highest standard.
We have decided to sell the cupcakes with 50% profit added on. For example if it cost £1 to make, the selling price would become £1.50.
We need to consider the cost of:
Electricity and water bills
The cupcakes, icing, accessories and cupcake cases
Packaging and bags
Washing up machines, ovens and keeping them clean
The cost of the workers who run the shop, bake the products, etc.
Advertisement in magazines, television, etc.
Cupcake Cases:
A pack of 100 white cupcake cases cost 81p.
However, if you want the cases patterned, they will cost 89p per 100.
This means one cupcake case will cost between 0.81p and 0.89p.
It costs £1.27 to ice 12 cupcakes, with buttercream.
Each cupcake costs £0.11 to ice with buttercream.
Sprinkles cost between £1.25-£3.00 per 80 grams.
Each cupcake will use 10 grams of sprinkles and therefore each cupcake will cost between 2p and 4p.
To use a standard oven for 6 hours a day, it costs £279 per year. Since the shop doesn't open on a Sunday, no cost is added and for each day, it costs 9p to operate the ovens.
To use a standard dishwasher and washing up machines it would cost approximately £80 a week using energy efficient products. Roughly £1.50 a day.

2. The Icing Station
The Colours of Icing
3. Sprinkle Station
The customer, can use this service for special events such as birthday parties.
However, you can buy or make the cupcakes for no special occasion and to simply treat yourself.
You are able to order premade cupcakes online, or buy them in the shop, in batches of 1, 4, 8 and 12.
You are able to construct your own cupcakes, in the shop, making as many as you want.
The colours of the cupcakes must be bright to attract the customers attention.
They will all be the same size and have the same cupcake cases.
The 'Construct a Cupcake' idea gives our company a unique selling point as it is quick, easy and cheap to make. There is nothing quite like it on the market.
The Logo
We decided to choose the name, 'Sweet Moments' for our service as we hope, when the customer eats the cupcakes, they will have a sweet moment and want to buy another in the future. The logo helps present this idea and has bright colours, making it eye catching.
Point Cards:
Each time you make a purchase with us, you will receive one sticker, that you can put on your loyalty card, you receive from the first purchase.
If you make 5 purchases with us and collect all the stickers you can receive a free premade cupcake.
If you make 10 purchases, you can receive a free 'construct a cupcake'.
Each time you spend, you will gain points, that are added onto your loyalty card as well as the stickers.
For each pound you spend, 10 points are added onto your card.
A premade cupcake can be bought with 100 loyalty points and a 'construct a cupcake can be bought with 250.
Discounts and Offers:
At 'construct a cupcake', like every other company, we want to give our customers offers and discounts when they buy more.
You can only get these offers, if you purchase one of our products or register with us online.
Discounts - Buy 4 cupcakes and get the 5th half price.
When you buy 15 or more you get half
price off.
When you order a batch of 12 cupcakes online,
handmade, you get 50%.
10% off when you order online or book a party.
Opening Hours
Group Session and Parties
Private group sessions for all age ranges and parties for children between the ages of 10 and 18 will be available after the shop has closed, from 6pm till 10pm.
The cost will vary depending on how many guests there are, however the maximum number of people that can participate at one time is 15.
In these private sessions, you will be able to construct six cupcakes, per person and take them home with you.
It will cost £30 to hire a private session and each person, will cost £15. So prices range from £45-£250.
Cost Of Packaging
After researching into prices of boxes that our cupcakes can be sold in, we came to a conclusion that buy boxes of a hundred at a time would be more reasonable.
Boxes for 4 - £55
Boxes for 8 - £63
Boxes for 12 - £90
One individual box is 0.65p.
Cost Of Workers-
The minimum wage for people that are 21 + over is £6.31 per hour. We will pay the workers £302 per week as they will share the shifts.
For the shop we would hire a maximum of 2 qualified workers to begin with and as the company progresses we will hire more.
The shops opening hours are:
Monday-Friday: 9am - 5pm
Saturday: 9am - 5pm
Sunday: Not open
When you order cupcakes online, it will take 2-3 working days to deliver them to the shop for collection or 5-6, if you prefer home delivery. You will also be charged for the standard delivery rate.
Cost of Advertisement-
Printing 250 brochures would cost us approximately £245.
The brochures would include our website address, the shop address and contact numbers, Therefore immediately driving attention to our shop and business. This would mean it costs £5 a day to advertise.
If we sell each cupcake at the price of £2.50, it means we will get £0.69 profit.
At the start, we will aim to sell 10 cupcakes an hour, 80 cupcakes a day, making £55.20 profit. £331.20 a week. Taking away initial costs, the total profit for the week will become £24.61. Over a year, our profit will be £1,279.72
After two years, assuming we are able to sell 20 cupcakes an hour, 120 a day , we will make £82.5 a day, £496.80 a week. Taking away the costs to run the business we would gain £190.21 a week. £9,890.92 a year.
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