Baked Goods By: Johnny Cupcakes

Socio-cultural Issues Create high CBBE through product differentiation that is relevant to the consumer group. Solidify a brand image synonymous with the personality of the brand community Create a unique and personal social experience and brand-value perception. Establish a lifestyle brand image that resonates with the consumers, deepening their attitudinal attachment to the brand. Reposition the Johnny Cupcakes brand “Family-centric” lifestyle brand New branding strategies that include; brand extensions and line-stretching products Add a bridge-line called “Baked Goods” by Johnny Cupcakes Lower price-point, targeted at family and/or group buying purchases.

Consumer Group Reports One-third of online consumers primarily do their Internet shopping at retailers that have only an online presence, followed by an equal 20% of respondents who prefer sites that also have traditional “brick and mortar” stores. (Nielsen, 2010) Global online consumers say that clothing will continue to top the list for planned online purchases in the next six months. (Nielsen, 2010) Books Clothing/accessories/shoes Airline Tickets Electronics Tours/Hotel Reservations Source: Nielsen Q1 Global Online Survey Nielsen. (2008, February). Trends in online shopping a global nielsen consumer report. Retrieved from http://th.nielsen.com/site/documents/GlobalOnlineShoppingReportFeb08.pdf Over 85% of the world’s online population has used the Internet to make a purchase. (Up 40 percent from 2 years ago) More than half of Internet users are regular online shoppers, making online purchases at least once a month. (Nielsen, 2008) Nielsen. (2010, June). Global trends in online shopping a nielsen global consumer report. Retrieved from http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/Q1 2010 GOS-Online Shopping Trends-FINAL CLIENT REPORT-June 2010.pdf

Industry Trends INSA (artist), Nicki Minaj (performer/musician) Further viral marketing reach “Pull promotions” directed at the final consumers to generate immediate purchasing behavior through creating a high demand. Online shopping & Online Presence a Growing Trend co-branded, licensing deal for iPhone/iPad app w/Apple purchase items directly from the Johnny Cupcakes website push notifications when the app is downloaded, also linked with Facebook. Consumers are looking for exclusivity meaningful and memorable incentives; socially, aesthetically & affectively. Family-value packages DIY design station (consumers can create and build their own T-shirt) Consumer involvement in the product   INSA (artist), Nicki Minaj (performer/musician) deadmua5 (DJ/public figure) Bea & Jonas Akerlund (celebrity stylist/celebrity director) Music influences clothing Event sponsorships of music & art festivals Emulate the brands beginnings as a “traveling suitcase” retailtainment experience. Celebrity endorsement that is a representative figure(s) of the consumer base

Industry Trends Social Responsibility Partner with local and national charities/organizations that benefit the wellbeing of children in the area. Stay consistent with the sustainable development and welfare of society. Build and maintain business relationships with vendors that use environmentally sound operations to manufacture products Consider employee interests in their business practices Social Responsibility Events Promotional events called “Bake Sales” for the Massachusetts flagship stores, LA and London locations. Certain portion of profits generated from these events will be allocated to the Safe Kids Worldwide Coalition (safekids.org)

Target Market Psychographics Demographics VALS Segment: Experiencers Interests: Fashion, Athletics, the Outdoors, Nightlife, Travelling and Entertainment Attitudes: Knowledgeable, Represent leadership roles in family, Open to new experiences Opinions: Adolescent nostalgia, adventure and having a positive outlook on life is critical to this segment. Demographics Sex: Male & Female; Family structured Age: 25+ Race: Varied Income: $65000+ Home Ownership: City based/Homeowners Employment Status: Employed, typically more affluent and college educated

Competitor Survey Gap Inc. Clothing for men, women, maternity, and kids. Kid Robot Collectible toys Graphic tees Appeals to older kids and adults Vans Shoes Accessories Men, women, teens, and kids Locations in malls Hot Topic Adults, teens, and kids Cartoon Character licensed merchandise Pop culture apparel GAP KIDROBOT VANS HOT TOPIC GAP IMAGE: http://blog.joinred.com/2009/07/new-gap-red-tees-available-now.html KID ROBOT: http://www.freshnessmag.com/2006/10/01/kidrobot-apparel/ VANS IMAGE: http://www.1tshirtsworld.com/vans-clothing-t-shirts.html HOT TOPIC IMAGE:http://www.hellokittyjunkie.com/2008/03/30/thursdays-northridge-mall-trip-hello-kitty-sitings-part-2/

Baked Goods BRAND LOGO & SYMBOL By: Johnny Cupcakes Symbol Bridge-line: “Baked Goods” by Johnny Cupcakes Logo

Product Hierarchy Core Benefit: Custom-made themed apparel and accessories for individual and family/group purchases. Basic Product: Wearable, top quality apparel merchandise, accessories and housewares. Expected Product: Limited edition clothing that is fun, trendy, unique, colorful and representative of the brands’ personality. Augmented Product: DIY design-station (on-line app) w/pre-set designs and imagery. Customers can mix-and-match for personalized orders, online and in stores (via design- kiosk). Furthering JC brand awareness through acts of social responsibility, sponsoring events (JC “Bake Sales”) proceeds from sales go to benefit local/national children’s charities. Potential Product: Host family nights with movies, puppet plays (sponsored by SafeKids.org) and cupcake decorating fun for children; broadcasted from the flagship Newbury location, shared on the JC YouTube channel, and Blog, extending CBBE reach into the digital & social community.

Exclusive BRAND Limited Edition Family Lupe Fiasco KAWS http://www.awn.com/news/cartoons/johnny-cupcakes-nick-bring-spongebob-squarepants-carnaby-street http://www.iwantthat.co.nz/product/97079/whoopee-cushion/ http://www.mentalfloss.com/blogs/archives/26122 http://wellscubreporter.com/?p=254 Exclusive Lupe Fiasco KAWS Limited Edition

Mixing & Matching Elements Fun bright colors Simple black & gray tones Baked Goods By: Johnny Cupcakes Most t-shirts are 100% cotton and made in the USA.

SWOT Analysis Strengths: Weaknesses: Opportunities: Threats: Internal Well established brand community that shares the same attitudes and has embraced the JC culture Johnny Cupcakes is a brand with a highly differentiated branding concept, image and experience Uniquely themed environments online and in-store provides for a hedonistic, affective shopping experience Superior quality and exclusivity of products and designs Weaknesses: Limited availability of product design and accessibility of merchandise Solely reliant on viral marketing techniques to proliferate brand awareness Currently only 4 US brick-and-mortar locations and a single online entity for selling merchandise; therefore we do not have a prevalent retail presence Already, there is plenty of competition for this product category Opportunities: Co-branded licensing deals through partnerships with branded products in vertical markets (i.e. Home appliance brands, cereal brands, TV networks- cartoon stations, Disney Radio) Continued expansion into the European markets Ability to offer competitive products in horizontal markets Opportunity to expand consumer base by offering a product range at a lower price-point Customization Threats: The internet has no barriers to entry which means a better financed business or an established retail business may seek to compete in this niche.   Potential for obsolescence or cannibalization in niche category Disruptive experience due to the introduction of new technologies (i.e. the new DIY design stations & kiosks) eBay and other online auction sites have traders selling similar products Internal SWOT Analysis External

Brand Positioning Contemporary Excitement Sincerity Classic $2.95-$100.00 Excitement $0.99-$70.00 Sincerity $3.00-$595.00 $0.50-$170.00 $3.95-$180.00 Classic

Merchandising Strategy Bakeware Housewares Family Apparel Fragrances Toys & Collectibles JC Skull & Cross-bone logo silicone cupcake pans Hand Towels, Face Towels, and Wash Towels Men/Women Unisex Graphic Tee’s JC home scented oil and ceramic oil diffusers JC Do-it-yourself 3-D Action Figures Johnny Cupcakes branded licensed Kenmore stand-up mixer Johnny Cupcakes branded bath robes Custom Children's Apparel JC Sugar Sprays & Mists JC Cupcake- Crossbones Toys Johnny Cupcakes Organic Cotton Oven Mitts JC House shoes Men/Women JC custom graphic shirts JC scented candles Johnny Cupcakes Scented Non-Toxic Markers/Crayons Organic Cotton kitchen aprons Johnny Cupcakes “Cupperware”, glass wares & serving dishes JC embroidered Children’s Backpack & Lunch Box JC car fresheners Johnny Cupcakes Collector’s Edition Playing Cards PRODUCT LENGTH PRODUCT WIDTH PRODUCT DEPTH: 20 (5 x 4 = 20)

Differentiation Tools Product Exclusive and Fun Apparel and Home Goods Service Superior quality for the price; low maintenance, durable products Personal Niche/Personalized experiences delivered through user touch-points Channel Multi-channel/devices Image Fun-loving, laid back and caring

Brand Position Evaluation Important: By adopting a merchandising strategy which includes a selection of bake ware, housewares, family apparel and toys/collectibles Johnny Cupcakes created a new brand experience that appeals to entire families. Distinctive: DIY t-shirt design station online and in stores allows customers to get custom personalized apparel. Adoption of this strategy differentiates Johnny Cupcakes from its competitors. Superior: Johnny Cupcakes offers products that have emotional appeal to buyers. JC employs this successful emotional, aspirational positioning strategy by establishing a brand community of consumers that want unique superior quality products. Preemptive: Johnny Cupcakes feature logos and designs that are developed in-house and through co branded licensing deals with other brands. These designs are a registered trademark to prevent trademark infringement. Affordable: JC range of product offering is for customers who are interested in the rarity and superior quality we deliver. Our target families have disposable income to spend on exclusive personalized products. Profitable: The above-mentioned strengths and selections can be leveraged into opportunities for Johnny Cupcakes to claim increased profits and increased brand loyalty.

Customer-Based Brand Equity Model Performance: Comfortable wear and fit: High quality fabrics give a more efficient wear of the items. Exclusivity with fun designs and accessories only available at Johnny Cupcakes. Trustworthy products and services: Parents trust that products will satisfy their families lifestyle needs by giving them a fun family atmosphere. Price matches the quality of the designs and fabrics. Performance Imagery Salience  Imagery: Families who desire that individualistic, outgoing style and value fun, quirky, childhood-nostalgic designs. Buy the products for nostalgic purposes to add more to their at home collection. The character of this brand comes from the fun and creative environment it creates. Johnny Cupcakes is a genuine brand based on family values and is able to share those same values with other Families when they buy the product. Salience: Brand awareness is immediately connected with the Cupcake & Crossbones logo The story of how the brand was maintained by the help of his family give cues of family values to our consumers. More cues arise from the smell vanilla in packaging

Six Levels of Meaning Attribute; “Family-centric” lifestyle brand, nostalgia, exclusive, longevity, durable, comfortable, high quality, wearable Benefits; “Family-centric” lifestyle brand-emotional, nostalgia-emotional, exclusive-emotional, longevity-functional, durable-functional, comfortable-functional, high quality-emotional, wearable-functional 3. Values; Quality over quantity, pays attention to customers & interacts with them, exclusive shirts rather than mass-producing, family 4. Culture; T-shirt culture, music culture, pop culture Personality; Young alternative family, young at heart, like exclusivity, nostalgic way to bond w/children, looking for an experience 6. User; Young, active, well-educated professional families (Age ranging: 25-38) w/small children, want to share childhood memories w/ their children

Conclusion Increase Sales & Awareness Brand Equity The Johnny Cupcakes brand is assertively distinctive & represents the positive, fun-loving nature of our customer’s attitudes. We perpetuate the philosophies of the Earle family through the brands meaning and by creating enduring relationships with our partners in the socially responsible arena. By giving back to the community, listening to our consumers needs and delivering them with excellent customer service, we have solidified a loyal, growing and positive following amongst the brand community. Creating a successful brand lends a platform to launching brand extensions that further the resonance in our consumers mind; therefore, establishing a consistent image creates the bond in the customer’s perspective needed for creating the necessary consumer based brand equity. By introducing a new range of products into our consumer-base, we are prospecting our already well-established customers to buy more, yet also focusing on attracting a new consumer segment. In order to bring awareness and draw traffic into our digital store we intend on; sending out a press release to various online media sources, offering incentives on our blog and through an email marketing campaign that will be dispatched to our opt-in mailing list and host a uniquely Johnny Cupcakes promotional event online and in-store, in which we shall be offering newly packaged Baked Goods products that include a gift with purchase and a coupon to put towards a future purchase.