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Retail Management: Case Analysis

The document provides background information on My Kind of Cakes (MKOC), a cake boutique in Ghaziabad, India. Within five years of opening, MKOC flourished significantly in worth from 7.2 million in 2012 to 19.5 million in 2016. The owner, Sparsh Kapoor, now aims to reach a target of 50 million by 2020. To achieve this, he must decide on an expansion strategy of either expanding geographically through franchises or expanding product range. He also must decide whether to use digital platforms or launch a loyalty program. The document then analyzes MKOC's initial success factors and discusses customer expectations and the importance of customer relationship management and a potential loyalty program for MKOC.

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166 views

Retail Management: Case Analysis

The document provides background information on My Kind of Cakes (MKOC), a cake boutique in Ghaziabad, India. Within five years of opening, MKOC flourished significantly in worth from 7.2 million in 2012 to 19.5 million in 2016. The owner, Sparsh Kapoor, now aims to reach a target of 50 million by 2020. To achieve this, he must decide on an expansion strategy of either expanding geographically through franchises or expanding product range. He also must decide whether to use digital platforms or launch a loyalty program. The document then analyzes MKOC's initial success factors and discusses customer expectations and the importance of customer relationship management and a potential loyalty program for MKOC.

Uploaded by

akshaysingh211
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Retail Management

CASE ANALYSIS:

My Kind Of Cakes : An expansion dilemma

Group 4, Section B
Akshay Singh Bhartiya 2010079
Arundhati Ingti 2010084
Richa Singh 2010126
Thatte Manasa 2010144
Yash Mehra 2010153
Case background
My Kind Of Cakes (MKOC), a cake boutique in Ghaziabad, was started by Sparsh Kapoor with an
investment of 5 Lakhs as an extension of family house business of bakery since 1954
The customer focus was on young crowd & Mr. Kapoor strives to make each customer
experience unique
Within five years of opening, the business had flourished, growing in worth from 7.2 million in
2012 to 19.5 million in 2016
In January 2017, Mr. Kapoor decided the target of 50 million by 2020
To achieve this target, the owner had to decide his expansion strategy
He could choose to expand geographically & open franchises in nearby towns or he could
choose to expand his product range
He also had the dilemma whether he should use digital platform to build awareness or launch a
loyalty program to strengthen customer relationships
Analyze the brand My Kind of Cakes (MKOC).What were the
success factors for MKOC in the initial years?

Product portfolio: One-stop shop for arranging parties and get together
Promotion: Word of mouth publicity, placards for parties
Place: Attractive & cozy ambiance, MKOC became a landmark because of its popularity
Price: Value for money. High-quality product at reasonable price
Competitors: Dunkin's Donut, Mr.Brown Bakery, Bakes N cakes, Donald Pastry Shop

Some success factors for MKOC are:


UNIQUE VALUE PROPOSITION CUSTOMER SERVICE

Customization CRM
Theme Cakes Sensitized and trained staff
Innovation Fantastic customer
Niche in the category of experiences
providing non-standard cakes Wholesome experiences
SERVICE EXPECTATIONS OF CUSTOMERS FROM CAKE SHOPS
SUCH AS MKOC, HOW THESE EXPECTATIONS DEVELOP?

Home delivery service


Express service within short interval of time
Ambience of the store
Online service
Reward & loyalty programs
Special in-store treatment
Unique customization
Free taste samples
These expectations arise from customers' pre-existing experience and
knowledge of specialty offerings of competitors. Freshness of bakery items is
another factor which mandates quick home delivery service which a customer
would want to have in his favourite baker. Yet another factor is the changing
customer base towards the younger generation, who prefer customized
cakes with intricate designs.
Importance of Customer Relationship Management for MKOC

DATABASE PROMOTIONS CONSUMER RETENTION CRM

MKOC maintained It helped it to run INSIGHTS It helps in CRM is important as


a customer promotions and It tracked churn knowing the companies like MKOC
database of 9,117 send information rate and defection customers better majorly depend on
customers about special rate of customers and their choices word-of-mouth policy
offers giving a helping to gain an and hence better for its promotion.
personalized insight for customer Therefore, tracking
experience to improving the retention. customer satisfaction
customers. service. was of utmost
importance.
LOYALTY PROGRAM FOR MKOC

Loyal customers visited the store 6 - 8 timer per month. Customers can be rewarded
based on this criteria.
For orders with minimum price of 150, each visit guarantees 1 point.
On referring the shop to a friend who is a new customer, both the persons get 2 points
each.
After every 10 points, customer can get free customizable cake (Max price: 150)
On reaching 25 point milestone, they get access to exclusive store speciality item
(which is of superior quality and only available via loyalty program). They also get
featured on social media.

ADVANTAGES:
Boosts the frequency of return customers’ visits
Also targets new customers, cutting into competitor's share

DISADVANTAGES:
Reduced margins and fixed costs
Extra time and effort of employees spent in preparing free dish
THANK YOU

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