STRATEGIC

MARKETING PLAN
Creative Cookie Co.

Danielle Weinstein
[email protected]
 Table of Contents

1.0 Executive Summary ................................................................................................................................................................ 1

2.0 Situation Analysis ................................................................................................................................................................... 1

2.1 Market Summary ............................................................................................................................................ 1

2.1.1 Market Demographics ................................................................................................................................ 2
2.1.2 Market Needs.............................................................................................................................................. 2
2.1.3 Market Trends ............................................................................................................................................ 3
2.1.4 Market Growth ........................................................................................................................................... 3
2.2 SWOT Analysis ................................................................................................................................................ 3
2.2.1 Strengths ..................................................................................................................................................... 4
2.2.2 Weaknesses ................................................................................................................................................ 4
2.2.3 Opportunities .............................................................................................................................................. 4
2.2.4 Threats ........................................................................................................................................................ 4
2.3 Competition .................................................................................................................................................... 4

2.4 Product Offering ............................................................................................................................................. 4

2.5 Keys to Success ............................................................................................................................................... 5

2.6 Critical Issues .................................................................................................................................................. 5

3.0 Marketing Strategy................................................................................................................................................................. 5

3.1 Mission ............................................................................................................................................................ 5

3.2 Marketing Objectives ...................................................................................................................................... 5

3.3 Financial Objectives ........................................................................................................................................ 5

3.4 Target Markets................................................................................................................................................ 5

3.5 Positioning ...................................................................................................................................................... 6

3.6 Strategies ........................................................................................................................................................ 6

3.7 Marketing Mix................................................................................................................................................. 6

3.8 Marketing Research ........................................................................................................................................ 6

4.0 Financials ................................................................................................................................................................................ 7

4.1 Break-even Analysis ........................................................................................................................................ 7

4.2 Sales Forecast ................................................................................................................................................. 8

4.3 Expense Forecast ............................................................................................................................................ 8

5.0 Controls ................................................................................................................................................................................... 9

5.1 Implementation .............................................................................................................................................. 9

5.2 Marketing Organization ................................................................................................................................ 10

5.3 Contingency Planning ................................................................................................................................... 10

 Creative Cookies Co.
1.0 Executive Summary

The Creative Cookies Co. is a boutique store front shop in Atlanta Georgia that sells personalized
cookies for all occasions. The cookies are baked fresh, personalized and decorated for any
occasion, and delivered across the United States. These cookies will become a talking point at
any occasion and add a special touch to your occasion. The target market is middle upper class
market and/or corporate businesses that have disposable income and wants to add a unique
and personalized touch to any party or occasion.

The Creative Cookies Co. consists of 2 full time employees and 1 to 2 seasonal part time
employees. Our executive team has more than 10 years of experience in culinary arts and 7
years of experience as the pastry chef of a 5 star restaurant. Our marketing strategy consists of
an online and face to face, store front presence. With each delivery during the first year of
establishment we will offer an incentive to place another order or refer us for a discount.

The Creative Cookie Co. expects to be profitable by month 9 and achieve profits of $35,000 by
year two.

ANNUAL SALES FORECASTS

Annual Sales Forecasts

$215,000.00 $213,000.00
$210,000.00
$210,000.00

$205,000.00
$200,000.00
$200,000.00

$195,000.00

$190,000.00
Year 1 (2020) Year 2 (2021) Year 3 (2022)

2.0 Situation Analysis

The Creative Cookies Co. is entering its first year of business, however the owner has built a
small client base over the past 6 months by baking and selling personalized cookies out of a
home office and sold through ecommerce only. This store front shop will be able to support the
growing company and allow for an industrialized kitchen in the back of the shop to increase
production to meet the growing demand. The basic marketing need is to sell custom cookies to
customers for special occasions rather than customers choosing the stereotypical route of cake
for a special occasion dessert.

2.1 Market Summary

The market consists of local residents, companies, and all ecommerce in the continental United
States. Atlanta is the capital of Georgia and has a population of about 500,000 residents and
another 5 million residents within the entire metropolitan area (1). The target customers are
local residents, US ecommerce customers and local corporate businesses. Ecommerce
customers make up the largest segment of our target market, at about 65% of the total market
for our products. Local residents make up about 15% of the market and local corporate
businesses make up the other 10% of the market.

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 Creative Cookies Co.

Target Markets

15%

20%

65%

Ecommerce Local Residents Local Businesses

2.1.1 Market Demographics

Our marketing efforts will focus on the following groups of people:

1. Ecommerce. This is the largest market for us, making up about 65% of our yearly
traffic. The majority of the customers we have obtained through Etsy, Instagram, or
google search. There is a mix of occasions that people are buying product for such as
children’s birthdays, milestone adult birthdays, wedding and baby showers, wedding
favors, and corporate anniversaries.
2. Local Residents. This group is the second largest group of customers. These customers
are likely to visit our store front and come into our business versus ordering online.
These customers would likely buy for the same occasions as sour ecommerce section.
3. Local Businesses. Local businesses is our smallest group of customers and the area we
would like to focus on growth. Metro Atlanta is a large city with a more than 150,000
companies (2). By targeting these companies we will be able to market our product to
people that will purchase the cookies for personal occasions.

2.1.2 Market Needs

The market needs we are attempting to fill is the increased need for creative alternatives for
celebration treats. Today, parties, weddings, and special occasions are becoming more elaborate
and specialized and a personalized cookie treat and/or party favor has become more and more
demanded. The Cookie Creation Co. seeks to fulfill the demand for a personalized touch on any
occasion with little time or effort needed from the customer. The following benefits are
important to customers:

- High Quality and Taste – A great product that is made with the high quality
ingredients and tastes great.
- Personalization – Creating unique cookies requested by the customer and the
ability to create new artwork for any occasion
- Customer Service – Open communication throughout the ordering process. The
ability to easily answer any questions in a timely manner.
- Accessibility and speed – The product is made in a short time window (last minute
orders) and delivered to their location on time.
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 Creative Cookies Co.
2.1.3 Market Trends

The market for creative, unique parties is becoming more demanding. Weddings, birthday
parties, and corporate events are becoming more and more elaborate with the growing social
media presence. People are spending more time and money creating an event with small details
that will set their occasion apart from others.
As mentioned in the Market Needs topic, many people are looking for personalization for their
events and willing to pay a higher price for those details. If Creative Cookies Co can pursue the
niche customers that are willing to pay for a high quality, unique, statement desserts and get
those customers to be repeat customers, for 1-2 occasions a year, the company will be a
success.

Market Forecast (Sales per dozen cookies)

6000

5000

4000

3000

2000

1000

0
2020 2021 2022 2023
Ecommerce Local Residence Local Businesses

2.1.4 Market Growth

This market is relatively new so data on the market growth is inconclusive. However the US
cookie market is forecasted to reach $11 billion by 2024 and increase 1.93% during that time
(3). Therefore, it is safe to say that the cookie industry is not disappearing and is expected to
continue to grow. As people and companies try to stand out among others the details in events
will become more and more prevalent and the forecasted growth of Creative Cookie Co. is
forecasted to increase with that demand.

2.2 SWOT Analysis

The following SWOT analysis shows the key strengths and weakness within the companies and
will address the opportunities and threats that Creative Cookie Co. will face.

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 Creative Cookies Co.
2.2.1 Strengths

• The business owners and employees have a combined 10 years’ experience working in
culinary arts and 7 years specialized experience as a pastry chef.
• Strong client support through past 6 months as an ecommerce store.
• High quality ingredients.

2.2.2 Weaknesses

• Cash flow is limited to owner's resources and potential bank loans.

• Generous employee benefits and ownership increase financial risk slightly.
• Limited initial marketing budget, so initial advertising is through positive customer
referrals and word of mouth.

2.2.3 Opportunities

• Increasing popularity of unique, creative details to create memorable special occasions.

• Rapid growth in corporate industry.

2.2.4 Threats

• High cost of product due to extreme detail and precision creating cookies
• Industry is highly susceptible to a recession.
• Competition through other ecommerce businesses.

2.3 Competition

The main competitors are other personalized cookie and dessert companies. Atlanta is a large
city with many other options that customers can turn to for creative dessert options.
Personalized chocolate covered pretzels have become more popular with the increased demand
in creative desserts and pretzels are a lower cost items. Cake companies are now also creating
personalized cakes. Ecommerce is also competition because lowered shipping costs makes it
more affordable for people to order custom cookies online and have them shipped directly to
them, therefore location of the physical shop is not dependent of purchasing the item.

All of these other companies creating personalized desserts are competition, but it also increase
in the growth of the personalized dessert segment of this market. As personalized desserts
become more routine the overall demand will increase and the entire market will grow. Creative
Cookie Co. will target their customers through a referral/reorder program that offers 10% off to
customers that refer other business or reorder.

2.4 Product Offering

The company will offer a large variety of standard cookie themes and designs, however
customization and customer requests will be accommodated at little to no cost. Color changes in
frosting will be standard, as will name changes for specific cookies. Customer communication
and questions will be answered within 24 hours. Customer will be able to send or bring specific
images to the company to request cookie customization.

Purchases over $50 will receive free shipping and all cookies will be packaged to ensure cookies
are not damaged or broken during delivery. All cookies will be individually bagged with a small
ribbon around the top, unless otherwise noted.

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 Creative Cookies Co.
2.5 Keys to Success

The most important key to create a product that is very high quality and customers view the
product as more than just a cookie. Customers should view this as part of the decoration and
overall uniqueness of their event that sets it’s apart from other similar events. The cookie will
become a talking point and the host will feel like the cookie added value to their event. The
cookie can also be seen as a party favor because they will be individually wrapped, when
delivered, and therefore additional party favors will not need to be purchased.

Another key to success lies with management's ability to execute the marketing and business
plans. Professionalism will be important when working with each customer to make sure their
requests are communicated and understood to ensure the product they wants.

2.6 Critical Issues

Creative Cookie Co. is still in the early stages of a start-up business. It is critical to meet the
demand of the customer and ensure management is able to create a loyal customer base. It is
also important to grow the business in a practical way that meets the needs of the customers
and reinvest profits for future growth.

3.0 Marketing Strategy

Cookie Creations is a niche market that will have to target current customers to help grow the
business. It is essential to treat each customer genuinely and deliver a product that will speak
for itself, since a lot of advertising will be through word of mouth. Networking will be done
through local craft shows in the area and small business events. A visually beautiful and
informative website will be created to show examples of the different cookies that have been
created for previous events. The website will also allow potential customers to inquire about
service.

3.1 Mission

Create Cookie Co.’s mission is to bring to market the most beautiful, creative, and unique cookie
desserts for all events and occasions. We will provide a service that will exceed the expectation
of our customers and a product that will speak for itself.

3.2 Marketing Objectives

• Increase referrals and repeat customers by 2% quarterly.

• Ensure 100% customer satisfaction.

3.3 Financial Objectives

• Be profitable within 1 year of business.

• To increase sales by 5% the first year.
• Continued growth rate for the first three years.

3.4 Target Markets

Creative Cookie Co. will target two distinct segments of the market
1. Commercial/Personal. This group consists of customers that are purchasing the
product for personal use, such as children’s birthdays, milestone adult birthdays,
wedding and baby showers, wedding favors, anniversaries, etc. This is the largest
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 Creative Cookies Co.
market for us, making up about 85% of our yearly traffic. This market is targeting the
upper middle income level since the product is more expensive that traditional desserts.
This market wants to make a statement when throwing parties.
2. Corporate Businesses. Local businesses is our smallest group of customers. This
segment would focus on large corporate events that could use our cookies as marketing
for their own company and a new creative take home from events the company has.
This market is niche because employees of the company will be exposed to our product
and may be likely to purchase it for personal uses.

3.5 Positioning

Creative Cookies Co. will position itself as a unique dessert option for customers that are willing
to spend a little extra money on a personalized touch. The positioning is focused on a higher
quality product with a higher price and will be seen as a more luxurious dessert, but still
obtainable by normal people and businesses. Creative Cookies Co. will use its high quality
product and customization as a competitive advantage over other desserts. The high quality
products, as well as high quality design will set it apart from other cookie companies. It was also
focus on superior customer service because a lot of business will be based on referrals from
previous customers.

3.6 Strategies

Creative Cookies Co.’s strategy is to pay attention to all the details. The strategy is to create a
loyal customer base and build loyalty and referrals through their high quality cookies.

Advertising will also be needed and will take place on each of the cookie bags the cookies are
wrapped in. On the back side of each cookie a small sticker will state the company and website.
This will increase visibility to the company. It will then direct interested customers to the
company website where more information can be found. The company will also advertise
through Etsy, which is a marketplace where independent sellers can list their handmade items
(4), such as the cookies the Creative Cookie Co. makes.

3.7 Marketing Mix

The company's marketing mix focuses on pricing, distribution, advertising, and customer
service.

 Pricing – The cookies will be a competitive price with similar dessert companies, but will
ensure high quality to ensure success among competitors.
 Distribution – All products will be able to be shipped throughout the United State and
free shipping will be an option with a purchase about $50.
 Advertising – Advertisements through websites, Esty, word of mouth, and referral
programs will be used.
 Customer Service – The will concentration on ensuring excellent services to all
customers.

3.8 Marketing Research

During the developmental phases of the marketing plan, research into similar companies was
completed. Cost analysis and observations of other business models were evaluated and
blended to create a business model is believed to be the most successful. No focus groups were
held since Creative Cookie Co was an ecommerce business 6 months prior to developing a store
front business and was successfully increasing revenue to support growth into a larger facility.

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 Creative Cookies Co.
Moving forward Creative Cookie Co. will plan to hold a few focus groups to learn how to continue
to grow and develop.

4.0 Financials

The following topics include the break-even analysis, sales forecast, and expense forecast
tables.

4.1 Break-even Analysis

The break-even analysis is based on a rough estimate of fixed costs. The average estimated
fixed costs will be $1,275 per month. This figure includes the cost to lease the building, utilities,
and various other equipment costs and fees. Variable costs include the cost of labor, food
inventory, shipping, and other product-related costs. The variable cost estimate is $1.65 per
unit, $19.80 per dozen, although that number may be revised up as actuals determine changes
in the coming months.

Monthly break-even on unit sales is 335 dozen. The basis for this break-even point is an
average of cookies, sold by the dozen. The average per unit revenue is $50.00 per dozen.

Break-even Analysis

$6,000

$4,000

$2,000

$0

($2,000)

($4,000)

($6,000)
0 115 230 350 465 580

Monthly break-even point (per Dozen)

Break-even point = where line intersects with 0

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 335 Dozen

Monthly Revenue Break-even Assumptions: $7,538

Average Per-Unit Revenue $22.50

Average Per-Unit Variable Cost $19.80/Dozen
Estimated Monthly Fixed Cost $1,275

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 Creative Cookies Co.

4.2 Sales Forecast

The first month will be used to set up the store front train staff, however the ecommerce
business will still be generating sales. By month three sales from the local residence/store front
and corporate business will begin to pick up and the following months will build off month
three’s sales. The majority of revenue will be generated through ecommerce. The breakdown by
products is below.

Monthly Sales Forecast

$25,000.00

$20,000.00

$15,000.00

$10,000.00

$5,000.00

$-
Jan Feb March April May June July Aug Sept Oct Nov Dec

Ecommerce Local Residence Local Business Column1

Table: Sales Forecast

Sales Forecast
2020 2021 2022
Sales

Ecommerce $118,000 $123,000 $131,000

Local Residence $28,500 $29,000 $32,500
Local Business $27,000 $29,000 $32,000
Total Sales $173,500 $181,500 $195,500

Direct Cost of Sales 2020 2021 2022

Ecommerce $5,960 $6,212 $6,616
Local Residence $1,440 $1,465 $1,642
Local Business $1,364 $1,465 $1,161
Subtotal Direct Cost of Sales $8,763 $9,142 $9,874

4.3 Expense Forecast

Creative Cookies Co. will likely have high marketing expenses month two and three (not month
one, since the company will be focusing on getting the store front up and running and will not
want to increase customer work load during month one). Month two and three they will increase
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 Creative Cookies Co.
visibility for the start up. They will implement a 3 month marketing strategy and then it will
recede back, unless otherwise needed later during the year.

Chart Title
$900

$800

$700

$600

$500

$400

$300

$200

$100

$0
Jan Feb March April May June July August Sept Oct Nov Dec

Website Advertising Etsy Referral Discounts Other Column1

Table: Marketing Expense Budget

Marketing Expense Budget 2020 2021 2022
Website $1050 $750 $750
Advertising $2800 $3000 $3000
Etsy $2400 $2400 $2400
Referral Discount $625 $750 $750
Other $345 $500 $500
Total Sales and Marketing Expense $7220 $7400 $7400
Percent of Sales 4.16% 4.01% 3.79%

5.0 Controls

The controls will be used to monitor and track the performance of:

- Monthly and annual revenue

- Profit margin – monthly and annual
- Customer referrals and repeat customers
- Customer reviews and satisfaction surveys

5.1 Implementation

The milestones table is attached. This table shows some of the key marketing programs and
their target completion dates, as well ownership. It is important to stick to this timeline to
ensure all tasks get completed on time and on budget.

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 Creative Cookies Co.

Advertising Start Date End Date Budget Manager

Website 1/1/2020 2/1/2020 $500 Danielle

Advertising 2/1/2020 5/1/2020 $1000 Sarah
Etsy 1/1/2020 12/1/2020 $1200 Danielle
Referral Discount 4/1/2020 12/1/2020 $625 All
Other 1/1/2020 12/1/2020 $345 Danielle
Total Advertising Budget $2670

5.2 Marketing Organization

The company is a very small and only consists of 2 full time employees and does not need an
organization chart at this time. There is little to no difference between the employees other than
ownership of the company. Both employees will contribute the same and work together, evenly
dividing tasks. Website development will be outsourced for creation and then maintained by
owners.

5.3 Contingency Planning

The company has planned for several undesirable scenarios, all of which are unlikely:
 Building and/or equipment doesn’t meet city code
 Slow first year of sales puts a strain on cash flows
 Cannot afford to hire part time labor during busy months
 Similar cookie shop opens in the area and pull customers from us
 Problems generating visibility among other dessert companies

References

1. http://worldpopulationreview.com/us-cities/atlanta-population/
2. https://www.knowatlanta.com/jobs/atlanta-fortune-500/
3. https://www.mordorintelligence.com/industry-reports/united-states-cookies-market
4. https://help.etsy.com/hc/en-us/articles/360001920447-What-is-Etsy-?segment=shopp

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