Johnny Cupcakes is a small company with fantastic vision. The decisions that have been made thus far seem to have all been good but the brand could make some changes that could make it even better. One way this can happen is by expanding and getting the brand name out to more of the public, especially the target market (trendy young adults). There needs to be more ways for people to connect with the brand and to make them feel like they are a part of it. Johnny Cupcakes is a unique brand and so are the people who will become cult followers. They are looking for edgy, fresh products that will make them stand out. There needs to be more ways to draw them in and to get inside their heads. This will be the key to more sales and expansion of the brand.

Situational Analysis

Target Market • • • • • • Gender: Men and Women Age: 18-25 Education: High school + HH Income: Less than $30,000 Single with no children Urban trendsetters

The target market for this category are young adults who want to stand out in the crowd. They are the saavy, urban, trendsetters who have their own original style. They enjoy pop culture and have a sense of humor. Often they are very involved in the music scene and enjoy many different genres, especially artists that are up and coming. They are the cult followers. Anything that is different from the norm and looks at pop culture in a different light is often accepted. The cult following is apparent in different movies, books, music, clothing, accessories, cartoons, etc. They

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are the risk takers, the adventure seekers, and they love to go out and explore new things.

Competition

OBEY is a clothing company started by an artist named Shepard Fairey. It was launched in 2001. Fairey saw t-shirts as another canvas for his graphics. He is inspired by the skate scene and music. His own take on pop culture and world events are also huge inspirations for the brand. OBEY has become a huge success and is sold in 20 countries worldwide. It has expanded to include many varieties of clothing, accessories, and shoes. Fairey collaborates with other fashion designers and OBEY clothing addresses many different styles that are both classic and fashion driven.

Kidrobot was founded in 2002 by designer Paul Budnitz. They create apparel and other products in collaboration with the world’s most talented artists and designers. The brand exemplifies cutting edge pop art and mass culture. Kidrobot collaborates with the world’s top brands to create unique

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limited edition products. Some of the brands include Nike, Burton, and Marc Jacobs. Kidrobot makes iconic exclusive pieces that once they are sold out are gone forever.

Rebel Yell was started by Daniel and Andi Ballard. The clothing reflects the time of their childhood in the late 70’s and early 80’s. Their line is described as “Kick-ass, worn-in to perfection and all things vintage.” Rebel Yell is popular with celebrities and focuses on past pop culture.

Pricing (T-shirts) Johnny Cupcakes OBEY Kidrobot Rebel Yell MARCOM OBEY: Obey is very connected into social media. The brand has a Twitter, Facebook, Myspace, and a blog that contains photos and stories of what goes on at OBEY behind the scenes and around the world. There is video on the OBEY website that shows behind the scene work and travels. These videos also give followers a look into how certain products were created. All of these factors connect consumers to the brand and make them feel like they are a part of what is going on at OBEY. Most of OBEY’s publicity and advertising is in magazines. Their clothing is

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$20-$50 $20-$40 $25-$40 $50 +

featured in fashion magazines such as Nylon, Foam, Antenna, Clark Magazine, and Complex. OBEY also has an awareness program to as they say “inform the posse.” This is helping people in need and is also good Public Relations. Kidrobot: Kidrobot is also very connected into social media. The brand has Twitter, Facebook, Myspace, flickr, and a YouTube channel. The YouTube channel contains behind the scenes videos of what goes on at Kidrobot and cartoons of characters featured in Kidrobot products. Followers can be constantly updated on what is going on with the brand. The company has event signings of favorite characters that are featured. Consumers are able to meet the artists behind the products.The Kidrobot website features a discussion board that lets fans talk about their favorite Kidrobot products, artists, and events that are happening. This is a good way to get to know consumers thoughts about the brand and changes being made. There are contests that followers can participate in and are able to win prizes. All of them involve the characters from Kidrobot in different ways. Kidrobot has an online magazine called KRonikle that features culture, KR press, events, contests, and of course toys. There are also planned sketch sessions so that fans can sketch with their favorite artists. Rebel Yell: Rebel Yell gains most of their publicity through celebrity sightings. Their website contains hundreds of pictures of celebrities wearing the Rebel Yell brand. This would be of interest to the target market because if the brand is cool enough to be worn by celebrities their same age it must be a hot brand. Rebel Yell has a mailing list consumers can sign up for to get emails telling them what is going on with the brand and updating them on the newest clothing coming out. Distribution All three competitors have online stores where consumers can buy their products. Online shopping is the future of retail and is important to keep updated. Johnny Cupcakes has a well made online store that is easy to use and consumers are able to see enlarged photos of each product.

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OBEY: OBEY clothing is sold in 20 countries worldwide. These range from the Netherlands to Korea and from Thailand to Mexico. OBEY has a diverse customer base. In the United States, OBEY is distributed in trendy stores such as The Buckle, Zumiez, and Hearbreaker. These are stores that appeal to the target market. But they still do not compare to a brand having its own boutique. Kidrobot: Kidrobot is also available internationally. The brand has its own stores in New York, San Francisco, Los Angeles, Miami, and London. Kidrobot is available in larger artistic retail stores throughout most of the USA. Rebel Yell: Rebel Yell has international stores in Australia, Japan, Korea, Greece, Norway, Saudi Arabia, Taiwan, China, and Dubai. The brand is available throughout the USA in smaller boutiques and through Bloomingdales. Rebel Yell is also sold through other online stores such as Planet Blue, and Black Label Boutique.

S.W.O.T. Analysis

Strengths • The cupcake is a consistent thread throughout all products, which attracts cult followers. • The Johnny Cupcake website is well made and interesting for the consumer. • Good use of social media (Facebook, Twitter, YouTube) • There is a face to the brand (Johnny) that people can relate to. • The clothing conveys fresh, new ideas and is trendy.

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• Stores look like bakeries inside which is unique and grabs attention. This makes people want to come back to them. • Did not sell out to larger distributers which makes the brand more exclusive. • Have gained a cult following. • Clothes come in unique packaging. Weaknesses • Brand is not well known nationally or internationally by the target market. • There aren’t many store locations where consumers can buy merchandise. The unique stores are an important factor in gaining Johnny Cupcakes followers. • There isn’t much advertising or publicity for people to hear about Johnny Cupcakes. • The cupcake theme may get old after a while. • Johnny Cupcakes is not distributed in larger stores so the brand does not get as much recognition.

Opportunities New London store opens national appeal. College lecture series will gain more publicity for the brand. International stores and location will inspire new designs for clothing. More stores could open in urban/trendy areas. Collaboration with other artists and stores i.e. MetroPark. Social Media makes brand awareness easier especially for the target market. • Connections to bands like Gym Class Heroes could be used to promote the brand. • • • • • •

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• The Johnny Cupcakes blog keeps followers interested in the brand and keeps them updated. Could get them involved. • More products can be made with the cupcake theme. Comforters, socks, and picture frames for example. • Brand logo can be used in many different ways. Threats There are many other original T-shirt companies. The target market commonly buys clothes at thrift stores. College aged people are usually broke and cannot afford brands. Difficult to gain cult followers. Hard to keep the brand out of larger stores and to not sell out. Johnny likes to be very involved at his stores which is difficult with international locations. • Target market gets tired of trends and brands quickly. Have to stay fresh and keep them engaged. • • • • • •

Marketing-­‐Communications Plan Budget Johnny Cupcake’s revenue in 2008 was 3.8 million dollars and has been increasing steadily. For this MARCOM plan we will assume this year’s revenue will be 4 million dollars. Marketing typically costs around 10% of one year’s revenue so the MARCOM budget for the year will be $400,000.

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MARCOM Breakdown Advertising Interactive Public Relations Sales Promotion Events 30% ($120,000) 20% ($80,000) 5% ($20,000) 10% ($40,000) 35% ($140,000)

MARCOM Plan

Adver/sing (30%) Interac/ve (20%) Public Rela/ons (5%) Sales Promo/on (10%) Events (35%)

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Advertising: Although advertising is expensive, it is one of the best ways for more of the target market to hear about Johnny Cupcakes in areas outside of where stores are located. It is important to gain more cult followers. If people are never exposed to the brand then they can never become a fan of it. Advertising ideas include: • Sponsor a concert or music festival that would mainly be attended by the target market. Be present at the concert handing out brand flyers (with pictures and the website address on them) and Johnny Cupcakes pins. Bonnaroo and Vans Warped Tour would be good concerts to look in to. • Advertise in local, national, and international magazines. Many young adults read local magazines to find out what’s going on in their town and read fashion and music magazines to stay informed on new trends and brands. These advertisements must include the Johnny Cupcakes website address and let readers know about social media contests or Johnny Cupcakes events. Examples of magazines would be Nylon and Vita.mn (local). • A hot trend in advertising is celebrity endorsement. The target market looks to celebrities for the latest fashion styles and to see which brands are up and coming. Use celebrity contacts (i.e. Gym Class Heroes) to advertise Johnny Cupcakes by giving them products to wear. Interactive: Social media is probably the most important vehicle of the marketing communications plan. This is because the internet is the medium where the target market spends most of their time. Through social media sites like Twitter and Facebook, followers can be involved in the brand and remain updated and interested. The web is easy to access and can reach a large audience at an inexpensive rate. Interactive ideas include:

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• Advertising on Facebook. Facebook is able to target consumers that would be interested in Johnny Cupcakes through their shared information. • Johnny Cupcakes could have a design contest supported through social media. Followers would submit t-shirt designs to Facebook or the Johnny Cupcakes website and the winner would have their t-shirt produced by Johnny Cupcakes. • Celebrity endorsement through YouTube videos and Facebook pictures. • Twitter contests with the first 100 people to tweet with a Johnny Cupcakes hash tag (#JohnnyCupcakes) will win merchandise or online store credit. Public Relations: Public Relations is a good way to get the Johnny Cupcakes brand publicized and costs very little. The suggested approach would be to do press releases in magazines, online, and in newspapers. Offer the brand as a story idea to local and national newspapers. Any positive story about Johnny Cupcakes is getting the word out to consumers and letting them know your company exists. Sales Promotion: This will be an important form of advertising if Johnny Cupcakes collaborates with any other fashion designers and these designs are featured in larger stores such as Urban Outfitters or Heartbreaker. It is important to let the target audience know the designers and to draw more attention to the featured clothes inside the store. Sales Promotion could also be used inside of record stores which are frequented by the target audience. These signs could advertise Johnny Cupcakes and let consumers know about Johnny Cupcakes events or ones they are sponsoring.

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Events: The largest portion of the marketing budget will be spent on events. The target market likes to go out to different concerts and fun activities and this will be the perfect opportunity to get the Johnny Cupcakes brand name out there. This can also be connected with social media and sales promotion to spread the word about Johnny Cupcakes events. This will create hype and interest in the brand. Some event ideas are: • Anniversary events at the Johnny Cupcakes stores. Celebrate year anniversaries by throwing a party at the boutiques. Give out cupcakes and have live music. Try to get celebrities to come out for the event. • Put on Johnny Cupcakes concerts. Rent out a venue and have up and coming bands perform and one or two big names perform. Make sure the consumers know all of the fun is brought to them by Johnny Cupcakes. These could take place in the same locations where the Johnny Cupcakes college lecture tour is already going. • Johnny Cupcakes already has movie nights at local theaters to bring back classic movies from the target market’s childhood. This is a great idea and should continue. May want to expand to more theaters. • Have a benefit event where the money will help workers bring tshirts and cupcakes to people in third world countries. MARCOM objectives and measurements It is often difficult to figure out how effective a marketing plan is. There are many different factors that go into how successful your marketing has been and how it has been perceived. The most important factor is that the Johnny Cupcakes name is getting out to more of the public and that it is getting into more of the minds of the target market. If they never hear about the brand they will never become a follower. Success can be measured mostly through the internet. If the target market is interested in a brand and they want to know more about it, it is extremely likely the first

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place they will look is the internet. Through marketing events and advertising the website should receive a large increase of traffic. There should also be an increase of sales on the web and more adds on Facebook and followers on Twitter. It is pretty easy to tell if an event is a success or a failure by how many people attend. A large crowd means that the brand is receiving more buzz and attention and that is always a good thing. After this year is complete Johnny Cupcakes revenue should increase by 100%. The more attention is brought to the website, the more sales there will be. The new store in London will also create international buzz and generate more sales globally.

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