Business feasibility study for Pocket cake
Pocket cake will be a bricks-and-mortar cupcake shop in Suzhou Culture and Arts Centre. The shop will mainly sell various cupcakes with healthy ingredients. Business skills, such as management skill, accounting skill and baking skill will all need to be considered before running the business. Young women will be our target customers who are pursuing a fashionable and elegant lifestyle. In view of being more considerate, four types of cakes will be provided: ordinary cupcakes, themed cupcakes, customized cupcakes, and cupcakes for those with diet restriction. Customers can exchange their feelings of new products casually on ...view middle of the document...
Two of us will be the entrepreneurs of the cupcake shop. People who with business knowledge will be assigned to manage the running of the business, and another one with technical skills will be responsible for the whole team of producing new products.
Section II: The business idea and market assessment
2.1 Product/Service. Cupcakes are known for their delicate and tasty in western countries. Only a few cupcake shops can be found in China and most of them sell their products online. In order to obtain the largest possible consumer base, our cupcake shop is located in Suzhou Culture and Arts Centre, which contains a variety of function facilities. High passenger flow volume will be helpful to drum up business. The name ‘Pocket cake’ apparently expresses the feature of mini cakes. Pocket cake will offer four types of cupcakes: ordinary cupcakes, theme cupcakes, customized cupcakes, and cupcakes for those with diet restrictions. Theme cupcakes will be produced to celebrate festivals. Customized cupcakes will be made to satisfy different demands of consumers. Moreover, our shop will also make sugar-free and gluten-free cupcakes. Compared with many dessert houses which use plant-based whipped "cream" and canned fruit as their raw materials, Pocket cake will use whipping cream and fresh fruit as main materials. Except the top quality ingredients and homemade recipes of our cupcakes, well-trained labors can also increase the reputation of the shop. People who have prior work experience will be probably accepted by the work team.
2.2 Target Customer. Females between 17 and 35 in high living standard will be considered as our target customer. Glamour of mini cakes lies in its one-bite size as well as the graceful lifestyle it reflects. Young females in modern urban are going after a fashionable and enjoyable lifestyle, which can be generally showed by their consumption behavior. Mini cupcakes exactly represent a new lifestyle to young females: healthy and elegant. Because of the restriction of our target customer, the expected population of customers is 100 per day. Nevertheless, the popularity of free bicycle and subway, the construction of ‘The Gate of the Orient’ will bring the cupcake shops more business opportunities.
2.3 Competition. Although there are just a few cupcake shops exists in Suzhou, ‘pocket cake’ will face stubborn rivals like Pantry’s best and 21cake, which are located in other provinces but have strong willing to expand to Suzhou. Pantry’s best imports its cooking materials instead of using cheap artificial flavoring. The shop now has branches in Beijing and Shanghai, only people who lived in these two places can be delivered. The restriction of delivery can be the biggest barrier for Pantry’s best (Pantry’s best, n.d.). 21cake is another competitor who insists doing network cake business since 2004. The standardized plant and strict control of storage temperature make 21cake bake more tasty cakes to...