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Case Study Red Jett Sweets

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In Part 1, The Company, Red Jett Sweets lists six “Ingredients for Success” (p. 251). For each ingredient, designate it as either a cost benefit or as a value benefit and discuss your reason for your designations. Support your answer with concepts from the text covering value and cost benefits.

Red Jett Sweets has determined that six, unique “Ingredients for Success” will help it to achieve its mission (Katz & Green II, 2013, p. 251). Each of these elements will provide Red’s customers with either a value benefit, a benefit related to the cupcakes themselves (p. 195) or a cost benefit, a benefit that keeps costs low for consumers (p. 195). Utilizing a mobile “cupcakery” (p. 251) is both a value and cost benefit. Mobilizing the business …show more content…

First, Red Jetts is choosing to utilize a mobile food truck to operate out of/delivery its products. As the only mobile cupcake business within its proposed trading area (p. 261), this will give Red Jetts the unique advantage of being able to locate where their customers are and where they are likely to purchase the goods. Offering catering services for custom-themed parties, to include personalized/customized cupcake flavors that align with that theme, in addition to their competitive pricing (p. 261), allows Red Jetts to offer its customers a unique service and experience that is not only affordable, but an added value not offered by its competitors. Lastly, Red Jetts is focusing heavily on offering superior customer service to consumers allowing it to compete with its competitors on value benefits as opposed to cost benefits (p. 196). While Red’s cupcakes are competitively priced, the sheer number of bakeries in the area may make it difficult to differentiate itself based on price, especially from those chain businesses that can capitalize on economies of scale and scope. By choosing to focus on superior customer service, one of the most important market differentiators for small businesses (Knight, 2014), Red’s can enrich their customers’ experiences and give themselves an advantage over those organizations that may be lacking in that

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