Cupcake store opened in Thailand that sells cupcakes which its appearances look similar to the
products offered by Sprinkles or Georgetown Cupcakes. Cupcakes are very rare in Thailand.
There are now only 5 brands with only 7 stores in total for the whole country. Cupcakeism® is
going to lead the cupcake market not only by introducing cupcakes widely in the Thai market,
but also by creating a cupcake trend in the country. Great intro
Cupcakeism® defines itself as a cupcake specialist. Unlike other cupcake stores in Thailand, we
focus solely on cupcake creation and innovation. Thus, our store will have neither normal cake
products, nor other kinds of desserts as other brands do. (I don‟t even think you need to say this
sentence re what you WON‟T have) Aside from providing the special characteristics of general
cupcakes such as varieties, look, and proportion, Cupcakeism® also creates its own special
uniqueness. For instance, besides having rich and creamy cupcakes, we will also offer various
healthy items such as sugar-free, vegan, plain with no icing, yogurt icing, low fat, etc. Apart
from that, we will focus on the customer experience, paying extra attention to all the little details
from store design, trendy appearance, taste, and having the friendliest staff among the
competitions. We will spread the Cupcakeism® brand throughout the Thai market.
Cupcakeism® will introduce Thai consumers to new ways to eating cake. People will think of us
when deciding on their daily choice of desserts or buying that sweet treat to give to their loved
ones. Okay – you are OFFICIALLY a natural business person!
Target market: 1) Ages 18 to 44; Upper middle to hi-end class; Love variety and love desserts;
or 2) Foreigners who visit Thailand and want to have cupcakes while they are here. Also,
foreigners that may want to add even more variety by tasting some Thai flavored cupcakes.
Cupcake is uncommon in Thailand and we believe that Thai consumers will come to love them.
Cupcakes themselves add several values to the traditional cake. Along with its small and
individual proportion, cupcakes come in various looks and tastes. Its varieties and cute
appearance make cupcakes look even more appealing and appetizing. Many Thai people may
now feel bored with the traditional cakes and want a new delightful way in eating them. In
addition, everyone who wants to eat our cupcakes will be able to eat them without worrying
about the health aspects of the product. More specifically, we will offer low fat, sugar-free,
vegan, and other healthy cupcakes in our store.
Furthermore, we will delicately blend 5 essential aspects of dessert experience to make our
customers feel happy when entering the store. The 5 aspects are store design, cupcake
appearance and packaging, a very delicious taste, smell, and the friendliest environment around.
Model – Explain the value (business) model
We sell cupcakes through our store. We allow big or special orders via phone and website. After
the first store is successful, we plan to expand a few stores throughout Bangkok. Then we will
spread out to major cities. At the stable phase, we will also add the focus on corporate customers
who order large amounts and on parties and events. At the later phases, we would possibly
create a premium brand with a very delicate appearance for special events and occasions.
Structure – A Limited Liability Company
1st stage: 1) Small trial size offered in front of the stores 2) Free coupons to friends, friends of
friends, via our Facebook site 3) Free cupcake on birthdays.
Ongoing: 1) Superior website and extensive social media campaign 2) Allow customers to get
involved i.e. vote for the cupcake of the month, and we will give free Cupcakeism® gift set for
the 3 luckiest customers 3) Seasonal products 4) Corporate Social Responsibility 5) Encouraging
loyal customers. For example, we will have two kinds of membership cards. One is a temporary
card (offered only in the early state of the business), which customer will pay nothing to get. For
the temporary card, customers get benefit such as buy 10 cakes get 1 free. Or they can select to
buy the premium membership cards (cute design card with your name on it) which include other
exclusive promotions. Also, we will promote the community feeling to our premium members.
For example, you get to try our new inventing flavor for free simply by offering your comments
after testing the flavor. If we get positive comments, we will then offer that flavor to other people
in the market.
The Thai economy was strongly affected by the global economic crisis because of the country
reliance on exports. Moreover, its political instability vigorously damaged both investors and
consumers‟ confidence, which has deterred their consumption and investment habits. This, of
course, caused negative effects to many business sectors. Nevertheless, bakery business is still
able to maintain its firm growth during this economic downturn. The growth is expected to
continue despite an uncertain economic and the political climate. The low-price bakery segment,
especially, has done quite well during this tough economic time with the support of a modern
and busy lifestyle. Thai people shifted to consume these bakery products as their breakfast since
it is convenient as well as time saving. Most of Thai also prefer sweet desserts after meals.
Regarding the business life cycle, it appears that Thailand‟s cake and bakeries industry is in the
late growth. If looking at cupcake sector in particular, however, it just has been introduced to
Thai consumers less than one and half year ago. Due to its success and popularity in other
countries, the first cupcake store has been opened in Thailand and. So far, the country has only 5
cupcake brands. To view at the whole bakery industry, there were 5,218 bakery manufacturers in
2007according to the National Statistic Office of Thailand. 608 out of which are located in
Bangkok, which is the initial location for our business. Among these 608 bakery manufacturers,
90.9 % of them are Individual proprietors, 2.2% are juristic partnerships, and 6.8 % are (public)
company limited. In term of the industry market size, the products‟ total volume and retail value
RSP are indicated in the table 1.1 below
Market Sizes - Historic - Value at Current Prices
Geographies Categories 2004 2005 2006 2007 2008 2009
Thailand - Retail Value RSP - Bt mn Bread 6,135.60 6,434.90 6,760.10 7,103.60 7,475.10 7,797.00
Thailand - Retail Value RSP - Bt mn Pastries 2,331.00 2,534.20 2,814.80 3,077.20 3,355.90 3,615.60
Thailand - Retail Value RSP - Bt mn Cakes 1,880.00 2,071.60 2,274.00 2,474.00 2,712.90 2,943.90
Sources: Euromonitor from trade sources/national statistics
Note: 2009 data is provisional and based on part-year estimates.
The projection of the market size in term of the bakery retail value and the growth rate for the
next five years will be shown in table 1.2 and 1.3 below. THIS IS GREAT
Table 1.2: Market Sizes - Historic/ Forecast - Value at Current Prices
Geographies Categories 2010 2011 2012 2013 2014
Thailand - Retail Value RSP - Bt mn Bread 8,114.40 8,446.90 8,848.90 9,262.10 9,714.20
Thailand - Retail Value RSP - Bt mn Pastries 3,876.80 4,120.80 4,364.70 4,604.00 4,852.80
Thailand - Retail Value RSP - Bt mn Cakes 3,182.10 3,422.80 3,679.40 3,948.80 4,234.70
Thailand - Retail Value RSP - Bt mn Biscuits 4,898.70 5,064.30 5,254.90 5,459.40 5,704.40
Thailand - Retail Value RSP - Bt mn Breakfast cereals 1,248.00 1,351.60 1,471.40 1,605.00 1,756.80
Thailand - Retail Value RSP - Bt mn Ice cream 12,026.70 12,857.90 13,776.70 14,779.70 15,912.40
Thailand - Retail Value RSP - Bt mn Sweet and savory snacks 23,450.20 25,163.00 27,006.60 29,001.20 31,232.20
Sources: Euromonitor from trade sources/national statistics
Table 1.3: Market Sizes - Historic/ Forecast - Value at Current Prices - Year-on-Year Growth
Sources: Data from trade sources/national statistics
The future demand is related to eating trends, life style changes, and the change in population
demographics. As stated earlier, life is now busier for Thais, and thus, most of the time would
buy bread and other bakeries for their breakfast. Besides baked goods for breakfast, Thai and
Western sweets, fresh fruits and ice cream commonly follow every meal. Nonetheless, due to the
economic slump, Thai consumers are more conscious in consuming expensive desserts and
baked goods. In addition, there is also a strong trend toward healthier foods as a result of the
health and beauty concerns. There are a significant amount of Thai consumers who believe that
healthier foods can help them to have not only healthier lives, but also beautiful looks. Hence,
people have leaned toward the healthier choices. Moreover, the country has experienced an aging
trend which has resulted in a large amount of middle-aged people. Evidently, these groups of
consumers tend to be more concerned about what they eat.
Currently, there are lots of dessert and bakery shops in the Thai market. Per National Statistic
record, most of them, 97.1%, are small businesses with no registered capital. These small stores
are ranging from cheap bakery shops to premium and high-end brands. In addition, there are
chain retailers who gain advantage from the economies of scales and price competition.
General Market: Trendy and upper-middle to hi-end consumers i) who love dessert and love
variety or ii) who like to spend their valuable time, beside from hard studying and working, to
relaxing by eat out yummy sweets in the nice and trendy places.
The target group: Students and professional workers, aging between 18 and 44, with the modern
and trendy life style. The initial target group will be in an upper middle to high end customers
living in Bangkok. These groups of people work hard and play hard. After work, they will like
to reward themselves with Cupcakeism® that provided them with delicious cupcakes which, in
the same time, reflect their values of trendy, smart, and distinguish individual.
Estimated Market Size: according to Department of Provincial Administration, Ministry of
Interior, Bangkok population aging between 18 and 44 in 2008 is accounted for 2,434,007 people
(Appendix 3). Providing that we conservatively expected to gain only 0.05% of the total
population, we will get 12,170 people per year. From that, if we estimate that each customer
would buy only 2 cupcakes in average per month, we can earn approximately 19 million baht per
year. (careful of this kind of projection – be sure to have “bottom up” as well versus a
percentage of a huge market only.)
To describe our target market characteristic, they all, in common, have well educational level,
ranging from college students working on bachelors‟ degree to professional workers. These
groups tend to “value more functional products and technology, and reliable brands with less
price sensitivity”. “Higher-educated Thais also prefer products and services that reflect their
higher educational status and modern lifestyles.” Furthermore, they enjoy recreational activities
after work. Their Food and beverages should reflect the image of modern people who have
concern for the environment and high quality as well as prefer well-designed packages. You
really KNOW your consumers and have put a lot of thought into this.
If looking closely at their specific characteristic resulted from the different aging groups, we
found some slight distinguish among them as follow;
Ages between 18- 22: The majority of this group will be university students. Thai student have
high purchasing power and they mostly hang out with friends in places that reflect their trendy
interest. Besides studying, most students spend their time at trendy shopping center, chic
restaurants, coffee shops and fast food shops.
Ages between 23- 29: These people were born when the world stepped into technology mania
and they faced no difficulties until now in the economic situation. They live with technology at
home and work. This group includes the so-called 'first-jobbers' as they just graduated and
started their careers. As people in their early 20s just began their careers, they prefer shopping
for clothes and accessories with promotional campaigns or discounts. More money is spent on
work clothes and accessories, commuting and other necessities for work as they need to look
professional. “Hanging out with colleagues is also a preferred way to spend time.” “Most of
them like to go out with friends or lovers frequently on the weekends.” For these get-togethers
occasion, they prefer “seeing movies, eating out at romantic restaurants and short-stay tour
packages by the sea or on an island”.
Ages in 30s: Most of the people at this age have a high level of education and high career
position. These people begin to pass into middle age with “a very unique identity.” They do not
like to imitate other people and, with their freedom in mind, these people are not loyal to a
specific brand. Therefore these groups of people are ready to switch brands, subjective to their
perception and value of products and services. Thus, they are careful before making a purchase
and will pay a high price if they consider an item worth buying. They prefer high-quality clothes
and accessories in both classical and trendy styles, although at a discount on seasonal sales.
Internationally branded clothes that reflect their professional look are also popular among them.
High-tech products and services are frequently used by this group to facilitate their work and life
necessities. Many like to live trendy lifestyles with high-tech brands and products such as Apple,
PDA phones, and lightweight laptops. As they become older and feel older, most of them are
concerned about their looks and personality. To have more confidence in these, both genders, but
women especially, buy beauty packages as well as anti-ageing and moisturizing products from
famous brands. Estée Lauder, Lancôme, La Mer and La Prairie are some of this group's favorites
for anti-ageing products. Many turn to exercise packages in fitness centers. This group tends to
pay more attention to living a healthy lifestyle. They like to have regular meals with more
vegetables and fish and drink more fresh fruit juice. They eat out at foreign-cuisine restaurants
and spend time shopping for family gatherings.
Ages between 40- 44: Adults in this age group are considered to be 'young at heart' with having
high purchasing power. They are willing to pay higher prices for higher quality and better
designs. They also buy products and services based on their own satisfaction rather than
necessity. In addition, this group of consumers requires ‘modern patterns’ and ‘differentiation’
in the products they consume. Many prefer to live in modern-styled condominiums to reflect
their lifestyles and to distinguish themselves from others. Products with „bright color, newer
looks and personality’ will grab an advantage among this group. As these people step up into
higher positions, they pay even more concern for their better appearance. Since, they aim to
middle to top management and other top professional positions; they need to look gleeful and
younger than their ages.
Their preferences focus on colorful and trendy clothes, and buy expensive anti-ageing products
from premium international brands. In addition, many go to see dermatologists regularly for skin
treatments, in particular laser treatments.
Direct competition: Other cupcake businesses. Cupcakes have just been introduced into the
Thailand market about a year and half ago. People in Bangkok have now started to know more
about cupcakes. The cupcake market is currently considered to be at an early stage of business
and thus will have a high potential for growth as a business (prove the “high potential for
growth”). AWESOME and detailed. AT this point, the reader is thinking “This person has
thought of everything, is detail-oriented, smart, and knows her market.” This is a good place to
Cupcake Carousel: it is the first cupcake store in Thailand. Besides from marketing itself as a
cupcake maker who introduced cupcakes to Thais, it also emphasized its position as a home-
made cupcake bakeshop that “uses only the finest natural ingredients such as pure vanilla extract
from Madagascar, and gourmet chocolate from Belgium.” It also sells muffin, mini cheese cakes
and brownie. The store allows special order via phone with pick up or delivery service. Its
cupcake‟s price, costing approximately 80 baht per piece, is considered quite high to Thai
consumers. The strengths of Cupcake Carousel are the high product quality, taste, and
customization order. The drawback is the store‟s design and product displays are very
unfashionable and unattractive.
Belle's Cupcake: It is a premium brand with a high price. . Belle‟s cupcake has just opened the
first branch in Bangkok in January 2010. The store design follows a Barbie-like décor with a
pink colored theme. The brand was expanded from another restaurant brand, Coffee Bean by
Dao, which is very well-known in high-end Thai consumers for their delicious, high-quality food
and cakes. Aside from its famous reputation of the main brands, its strengths also included its
high experience in bakery business as well as the ample resource of capital that allow Belle's
Cupcake to secure its store location at the shopping center right in the middle of Bangkok.
Currently, Belle's Cupcake currently has no website and thus the data about its cupcake pricing is
Hi-Tim: Hi-Tim offers wide varieties of dessert items including ice crème, chocolate, cookie,
and cupcakes. Tim came from New York and Hi Tim promotes him as a real American chef who
can offer a “real American treat experience”. It marketed itself as a “modern day homemade
sweet shop” with a new menu every day. Hi-Tim currently has just opened its second sweet shop
in the middle of Bangkok city. Hi-Tim also offer catering service, dessert shop consulting, and
wholesales with minimum of 2,500 baht per order and free delivery throughout Bangkok.
Its cupcake price is 50 baht per piece.
Fin-ish Me cupcake: It is a small, made-to-order cupcake business, and doesn't have a store.
Customers can order their cupcakes via email or phone. It also offers traditional cakes, pies, and
tarts. Customers can order customized and special cupcake designs which look very beautiful
and unique. Customer can go to the store owner's blog and see the normal cake designs offered
as well as call to request a special order. “Fin-ish Me cupcake” are truly home-made cakes and
the price is pretty high. The lowest price of the cupcake offering is $120 per piece with minimum
order. Therefore, the target market is very small and only a high-end group of customers
Cupcakes, Inc.: It is a small kiosk cupcake, which is located in the metro stations. Its price is
lowest amongst all cupcake stores with a price of a third of “Fin-ish Me cupcakes” pricing. The
taste was not quite good and the only differentiation would be the quickness and convenience.
Indirect competition: Other cakes shop and dessert stores.
Why customers will go to our cupcake store than other cupcake brands? (THIS IS THE
PERFECT HEADLINE – THIS IS EXACTLY WHAT THE READER IS THINKING AT
THIS POINT AND “anticipates the objection” as Amy Millman said in class).
1) Our cupcakes will look lovely and appetizing rather than beautiful or fancy. Customers should
consider Cupcakeism® as the top choice of everyday special dessert rather than creating the
feeling that it looks too beautiful to eat in everyday life or too delicate for modern life style. So
the appearance will be lovely and mouth-watering while combining little favors of simplicity and
2) Unlike the competitors and tradition baked shop, we focus on underlining and leveraging our
branding; unique and stylish stores design with eye-catching packaging, and other aspects of
branding to emphasis Cupcakeism®‟s chic and tasty image. Also, we include technology into the
tradition low-technology bakery industry. For instance, unlike any competitors, which customer
can order only via store, phone, E-mail, we allow orders online and also allow customer to
customize their own box of cupcake. Our website will be superior comparing with all
competitors and be another tool to representing our distinct brand.
3) Rather than plain and ordinary stores‟ decoration as most of the competitors do, Cupcakeism®
focus in creating appetizing, stylish, appealing, friendliest customer service environment that
invite our target customers to visit or sit in our store .
4) Cupcakeism®‟s owners have great networking with several stylish and smart people working
in various business and corporations throughout Bangkok, to help to represent and promote our
brand directly to our target market. I would expand upon this in operations section (e.g. you
5) Besides form creamy and rich cupcakes, we also offer low calories, vegan, sugar-free, low-fat,
and healthy ingredient items so that anybody who loves to eat cupcakes could eat them without
6) CSR; but recycle packaging, 10 cupcake bought and get one free or give one to an
underprivileged kid with your name tag, support students i.e. marketing campaign contests.
7) Cupcakeism® offer wide varieties through daily specials and seasonal flavors. Allow gift
wrapping with additional charges as well as special orders i.e. special design customization.
People will think of us as a first choice when they want to buy cakes as a gift to others.
Appendix 1: The country Facts
The Country Statistical Summary 2008 2009
Inflation (% change) 5.5 -1.4
Exchange rate (per US$) 33.31 34.41
Lending rate 7 6
GDP (% real growth) 2.6 -3.5
GDP (national currency millions) 9,102,790.0 8,873,694.6
GDP (US$ millions) 273,247.9 257,899.5
Population, mid-year ('000) 64,524.1 64,928.4
Total exports (US$ millions) 172,860.0 147,836.4
Total imports (US$ millions) 178,770.0 126,724.0
Tourism receipts (US$ millions) 16,860.7 16,171.6
Tourism spending (US$ millions) 5,125.8 5,317.2
Urban population ('000) 21,376.8 21,742.8
Urban population (%) 33.2 33.6
Population aged 0-14 (%) 20.72 0.3
Population aged 15-64 (%) 71.6 71.7
Population aged 65+ (%) 7.8 8
Source: National statistics Office of Thailand
Appendix 2 Bangkok Population: 1995/2000/2002/2004/2006-2007
'000s 1995 2000 2002 2004 2006 2007
Bangkok 6,131 6,320 6,435 6,571 6,720 6,801
Proportion of total population 11.0% 10.7% 10.7% 10.7% 10.7% 10.8%
Source: National statistics Office of Thailand
Appendix 3 Population by Age: 1995/2000/2005/2007/2010/2015
Bangkok Population by Age 2008
18-22 years 377,277
23-29 years 603,442
30-39 years 959,687
40-44 years 493,601
Source: Department of Provincial Administration, Ministry of Interior, Thailand
This is the best plan I’ve read so far
Grading criteria for cumulative turn-in 1 of 3 (worth 50 of 1000 semester points)
* See syllabus for listing of assignment values
10 Well thought-out concept
10 Well-researched industry
10 Well-researched market
10 Formatting, writing, display – this is ready for pictures of cupcakes and a store design! This will be
really helpful in “making it real.” For whatever reason, I could also see some You Tube videos of Thai
customers saying what they love about your cupcakes.
10 Sought help early in correcting any of the above – We discussed this when you had doubts, and you
have done a great job
Other notes: Is there a way that yours can be “the favorite” of the Thai people versus the other
brands? (I love the idea of not too fancy for everyday). Also, it is worth it to say that phase 1 will be
expansion and growth in which there is room for many competitors, then in phase 2 when the
industry matures, you will employ “x, y, z” strategies to maintain your leadership position.
Your financials will be key, because of retail store costs, inventory costs, etc. This could actually ALSO
be a competitive strategy if your competitors have set up something that is “mom and pop” – but you
have the backing of the Thai business and upper-income social community.
In Plan (being emailed to you):
Green = good anchor points
Yellow = caution, inaccurate or points that need to be restated
Red = No!