A Dozen Times Better

Blake Hammer James Klima Rachel Martone Megan Powers Emily Smokonich

Decision Situation
The bakery suffers from a poor reputation due to online reviews made under old management, with an old recipe.

Many customers have the preconceived notion that the cupcakes are dry. New owner Doreen Valentine has changed the recipe to ensure a more moist cake.
Ms.Valentine and her staff have been working to reverse these false beliefs.
Prices remain the same: $2.50 per cupcake

Secondary Data
Food review websites Yelp Urbanspoon

Consensus: Baked goods are dry Customer service is poor

Exploratory Research Focus Group

55 minutes
9 participants (8 female, 1 male) Pitts students juniors and seniors

South Oakland living

Snacking Baked goods Dozen Taste test

 Shop aesthetics very important

Findings

Generally aware of Dozen, but no significant brand loyalty Prior to taste test, belief that cupcakes dry After taste test, not dry but buttery Based on quality of samples, would be willing to try other menu items Before taste test, less willing to travel to get cupcakes more willing after taste test

Decision Problem
Why hasnt Dozen been able to effectively rebuild its image? (Discovery-oriented) What should Dozen do to rebuild its image with college students? (Strategy-oriented)

Research Problems
Determine how college students feel about Dozen
Gage responsiveness to various promotional tactics (especially an on-campus table or booth) Determine attractive of new menu items Determine potential impact on sales of various promotional tactics

Data Collection Method

Relevant population: local college students
Ages 18-24

Online survey
Convenience sample: sent out to professors, who forwarded to their students
Nonprobabilistic 68 responses

Data Analysis
Research Problem #1: Determine how college students feel about Dozen Bakeshop
1= Completely disagree 5= Completely agree Mean Tasty Products Reasonable Prices Appealing Store Too Far from Me

3.6

2.9

3.6

3.1

Median

3.0

3.0

4.0

3.0

Data Analysis, Continued

Research Problem 1, continued
About Dozen Cupcakes Mean Tasty Too Small Too Large Dry Worth the Price 3.0

3.6

2.6

1.9

2.9

Median

3.0

3.0

2.0

3.0

3.0

Data Analysis, Continued

Research Problem 2: Gage responsiveness to various promotional tactics
Price Quantity Discount Discount Buy 1, Get 1 Free 1st Come, 1st Served Free 3.9 Online Coupons Table on Campus

Mean

3.8

3.2

3.6

3.0

3.5

Median

4.0

4.0

4.0

4.0

4.0

4.0

Data Analysis, Continued

Research Problem 2: Gage responsiveness to various promotional tactics, continued
Table on campus would: Mean Make me want to purchase at table 3.8 Make me want to purchase at store 3.2 Increase Image Increase Awareness

3.6

3.9

Median

4.0

4.0

4.0

4.0

Data Analysis, Continued

Research Problem 3: Determine the potential impact on sales of various promotional tactics

Data Analysis, Continued

Research Problem 3: Determine the potential impact on sales of various promotional tactics
Ran a Pearson ChiSquare test of Independence for likelihood of buying from an on-campus table versus the importance of location when buying a snack. P<.001, so the two are dependent.

Data Analysis, Continued

Research Problem 3: Determine the potential impact on sales of various promotional tactics
Ran a Pearson ChiSquare test of Independence for likelihood of buying from an on-campus table versus the where the respondent lived. P>.001, so the two are NOT dependent.

Data Analysis, Continued

Research Problem 3: Determine the potential impact on sales of various promotional tactics

What does this mean? Peoples perception of where they are in location to a snack food is more important in their willingness to buy from an on-campus table than is the actual location of their residence. Where you are during the day in relation to the snack matters!

Data Analysis, Continued

Research Problem 4: Determine the attractiveness of the new menu items
Ran a Pearson ChiSquare test of Independence for buying products from Dozen AFTER July 2011 and the respondents rating of Dozens tastiness. P<.001, so the two are dependent.

Data Analysis, Continued

Research Problem 4: Determine the attractiveness of the new menu items
Ran a Pearson ChiSquare test of Independence for buying products from Dozen AFTER July 2011 and the respondents answers as to whether Dozen is worth the price. P<.001, so the two are dependent.

Data Analysis, Continued

Research Problem 4: Determine the attractiveness of the new menu items
Ran a Pearson ChiSquare test of Independence for buying cupcakes from Dozen AFTER July 2011 and the respondents rating of the cupcakes tastiness. P<.001, so the two are dependent.

Data Analysis, Continued

Research Problem 4: Determine the attractiveness of the new menu items
Ran a Pearson ChiSquare test of Independence for buying cupcakes from Dozen AFTER July 2011 and the respondents answers as to whether Dozen is worth the price. P<.001, so the two are dependent.

Data Analysis, Continued

Decision Problem 1: Why hasnt Dozen been able to effectively rebuild its image?
The importance of location in buying a snack and the rating for Dozen being too far away were dependent.

Data Analysis, Continued

Decision Problem 1: Why hasnt Dozen been able to effectively rebuild its image?

Of Pearson Chi-Square tests for:

Awareness of new recipe and taste rating Awareness of new recipe and dryness rating Awareness of new recipe and worth the price rating Awareness of new ownership and taste rating Awareness of new ownership and dryness rating Awareness of new ownership and worth the price rating

Only new recipe vs. dryness and new ownership vs. tastiness were dependent

Data Analysis, Continued

Decision Problem 2: What should Dozen do to rebuild its image among college students?

The Pearson Chi-Square Test of Independence that was run for Research Problem 3 also applies here. As a reminder, location of respondents residences and likelihood of buying from an on-campus table were independent, and the importance of location when buying a snack and likelihood of buying from an on-campus table were dependent.

Data Analysis, Continued

Other Important Notes

Of 68 respondents: 77% had heard of Dozen Bakeshop 29% were aware that Dozen is under new ownership 17% were aware that Dozen is using a new recipe 58% were female 78% lived in South Oakland Between Peace, Love, and Little Donuts, Dozen Bakeshop, and Vanilla Pastry Studio: Students are significantly more likely to buy from PLLD within the next week Location is a significant factor in Dozen receiving the lowest purchase intention rating among PLLD, Lulus Noodles, and Noodles and Co.

Limitations
We believe our research was collected to the best of our abilities, and our findings are fairly accurate. Our data can be generalized to college students, but cannot be generalized about the entire population.

Threats
Internal Validity
Selection Effect: Two groups of participants taking the survey could have varying opinions which might affect the results
Self-selecting sample: Perhaps those who were already aware of Dozen were more likely to take the survey

External Validity
Reactive Bias: Everyone behaves differently when they know they are apart of an experiment / survey Non-representative: Could be non-representative because survey was given to business school professors and emailed to friends

Conclusions and Recommendations

Research Problem #1: Determine how college students feel about Dozen Bakeshop

Students are mostly neutral about characteristics about Dozen Bakeshop Dozen cupcakes size not favorable among students Changes need to be made to cupcake for satisfactory purposes

Conclusions and Recommendations

Research Problem 2: Gage responsiveness to various promotional tactics, especially an on-campus table

Price discounts, incentives popular option for students Some promotions statistically better than an oncampus table On-campus table more effective in long-run Table attracts students leading to incentives to visit store

Conclusions and Recommendations

Research Problem 3: Determine the potential impact on sales of various promotional tactics

Sales impact higher with an on-campus table With an on-campus table, students more likely to buy due to more traffic on campus areas

Conclusions and Recommendations

Research Problem 4: Determine the attractiveness of the new menu items

After new management, customers believe food is worth the price Better menu items, more likely to buy

Conclusions and Recommendations

Decision Problems 1 and 2: Why hasnt and what should Dozen do to rebuild its image among college students?

Promote stronger image On-campus table and price discounts More people visiting the store More enticed to try at table
Coupon, map, flyer, punch card at table for students

Show loyalty card at purchase, get free cupcake (redeemable coupon)