Sifts Cupcake Bar Case Study
1.) What is Sift Cupcake and Dessert Bar’s present strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fits the competitive approach that Sift is taking? Explain.
Sift made a decision to diversify their products from not only cupcakes, but to a more traditional desert style menu to reach a broader market.
Incorporated a marketing strategy that includes promoting business through various platforms such as radio and social media outlets.
Participates in many social events and gatherings such as weddings and community affairs.
They cater to a niche market where similar places do not offer the same services.
Offers customer and designer baking services.
Quality products, clean environment, great customer service.
Overall to expand their stores and reach new markets while keeping the family oriented atmosphere internally and externally.
Out of the 5 competitive approaches I believe they have a superior product and/or specialist strategy. Sifts can cater to specific needs, as well as specialize for different occasions. Since they use quality ingredients for all of their foods there product is also superior to those of other substitute products. However, they use a broad differentiation strategy because they cater to all age groups. This will hopefully generate brand loyalty.
2.) Are the strategies winning? What is your appraisal of Sift’s financial performance based on the data in case Exhibit 9? How well is the company doing financially? Use the financial ratios above and the exhibits in the case for your assessment of Sift’s financial performance.
While analyzing the company’s financials it becomes apparent that the COS has been consistently increasing. According to their balance sheet they lack cash flow so this could be a detriment to them in the future if not fixed. However, Sift has continually grown there net sales per year. This shows their brand and marketing strategy along with customer
Sift made a decision to diversify their products from not only cupcakes, but to a more traditional desert style menu to reach a broader market.
Incorporated a marketing strategy that includes promoting business through various platforms such as radio and social media outlets.
Participates in many social events and gatherings such as weddings and community affairs.
They cater to a niche market where similar places do not offer the same services.
Offers customer and designer baking services.
Quality products, clean environment, great customer service.
Overall to expand their stores and reach new markets while keeping the family oriented atmosphere internally and externally.
Out of the 5 competitive approaches I believe they have a superior product and/or specialist strategy. Sifts can cater to specific needs, as well as specialize for different occasions. Since they use quality ingredients for all of their foods there product is also superior to those of other substitute products. However, they use a broad differentiation strategy because they cater to all age groups. This will hopefully generate brand loyalty.
2.) Are the strategies winning? What is your appraisal of Sift’s financial performance based on the data in case Exhibit 9? How well is the company doing financially? Use the financial ratios above and the exhibits in the case for your assessment of Sift’s financial performance.
While analyzing the company’s financials it becomes apparent that the COS has been consistently increasing. According to their balance sheet they lack cash flow so this could be a detriment to them in the future if not fixed. However, Sift has continually grown there net sales per year. This shows their brand and marketing strategy along with customer