SocialCulture Issues Demographic The startup tshirt trend is

Social-Culture Issues Demographic: • The start-up t-shirt trend is currently growing, which encourages creativity and uniqueness in design. Economic: • Economic down turn is not effecting brand loyal consumers. Socio-cultural: • Targeting Gen Y benefits JC because these consumers strive to different. They are always keeping up with new trends. Technological: • JC consumers are frequent online shoppers. These tech savvy consumers want accessibility from all types of technological devices.

Target Market • Generation Y • Some Generation Z They are usually the most influenced generation for online shopping and researching purchases. This group typically ranges anywhere from early 30's all the way until early child hood, usually those that are either freely on their own or still living at home with their families.

TEXTILES INDUSTRY • Wage and salary employment in the textile, textile product, and apparel manufacturing industries is expected to decline by 48 percent through 2018, compared with a projected increase of 11 percent for all industries combined. • Increased technology used by textile mills is partially responsible for the projected decline in employment in this industry. • Many apparel firms are now outsourcing production to countries with lower labor wages. Employment in textile, textile product and apparel manufacturing by industry segment, 2008 Industry Segment 2008 Textile, textile product and apparel manufacturing 497, 100 Textile Mills 151, 100 Textile Product Mills 147, 600 Apparel Manufacturing 198, 400 SOURCE: BLS National Employment Matrix, 2008 -18

• Consumers want items that are exclusive and are now going to smaller brands to find what will set them apart from the crowd. Online shopping is a growing trend in niche markets and for smaller companies. Since the products and brands are not found in very many places, the internet opens the door for more potential customers to place orders. The biggest form of marketing that niche markets and smaller companies use is word of mouth. Print advertising and other methods are used as well but are not as successful.

• Music and clothing influence each other. • Members of the subculture look to their peers as a reference point for apparel choices. At hardcore shows today, members of the subculture look to their peers as a reference point for apparel choices. Aspiring entrepreneurs will find that these shows are the ideal spot for networking, public relations, advertising and sales of their product. Usually an arrangement can be made with the venue to have a booth set up for product sales.

Consumer Group Reports • As generation Y gets older, the online shopping business increases • An increase of online shopping of 51% with more than 79% of online retailers had increased profits 77% of all online shoppers over the age of 13 will shop online Of 50% of the people that shop online 88% have bought something within the last 6 months

Competitors Jinx The Hundreds Threadless Kid Robot Think Geek Fur Face Boy Busted Tees Local Boutiques Many of the companies draw inspiration from popular culture, vintage art, and current ideas. Certain companies (Threadless) only print items as they are voted on by the public and in limited runs. Jinx has a slightly higher price point (though not as high as JC) but only prints certain runs of an item. Jinx - Mid price geek line t-shirt brand Threadless – company that takes designs from a community and prints them on shirts as they get voted on. Otherwise they have a very active online storefront and sell shirts online. The Hundred – t-shirt company is very similar to JC and the prices are within the same price range JC falls in line with these are that is that the competition does not put the runs as limited as JC, so their prices can be slightly lower. Think Geek - company that focuses on its core customers and offers t-shirts and accessories that benefit its consumers Busted Tees - no physical stores, but they do offer bulk discounts over 24 pieces Kid Robot & Fur Face Boy – recent popular t-shirt companies that are priced a little bit higher than JC. Kid Robot has become mainstream selling in department stores.

Product Hierarchy Core Benefit Fun and trendy t-shirts and accessories. Basic Product Functional, Unique Clothing and accessories Expected Products Limited designs and uniqueness Augmented Product Long lasting products, products that carries over to different seasons. Potential Product Undergarments, swimwear, dresses, and cook wear.

BRAND STORY…

BRAND LOGO & SYMBOL. . . Fall • Autumn Colors (Red, Orange, Yellow, Brown, Black) Winter • Cool Colors (Blue, Light Blue, White, Red and Green) Spring • Pastel Colors (Pink, Green, Blue, Yellow) Summer • Bright and Bold (Yellow, Blue, Green, Red) Johnny Cupcakes logo is typically seen as in black and white. With the changing of the seasons we would like to have the logo change in color and possibly variety to reflect the seasons. SLOGAN. . . Our mission is to keep the same vision and impacting slogan that Johnny has already created for the brand.

Mixing & Matching of Brand Elements… The materials typically used in the t-shirts are a: jersey type material, as garnered from their website. We plan to bake up a special blend of blind item packaging. This will ensure that our customers continue to enjoy the high quality products, and with more limited pack ins based on the season, continue to increase the popularity and scarcity of the most popular goods. Previous 2010 Halloween exclusive…will now become PERMANENT! Online surveys will be conducted to help us generate which designs are most favorable. Three exclusive designs will be designed and packaged in Phase 1 of our test. Color Palette…

Mixing & Matching of Brand Elements… INIMATES SWIMWEAR Cookware will be brought in to build on the brand name. Cupcake and cross bone cookie cutters. Cookware will be purchased through vendors. CURRENTLY DISCOUNTINED : Bring back into stores and online shop; plus additional designs. CURRENTLY DISCOUNTINED : Bring back into stores and online shop; plus additions designs. NEW: CUPCAKE COOKWARE

Mixing & Matching of Brand Elements… WEBSITE… Consumers will now be able to rate Johnny Cupcakes products online. 90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. (Econsultancy, July 2009) POWER OF WORD OF MOUTH… Overall Rating Read Reviews (45) Write a review

Mixing & Matching of Brand Elements… Created an i. Phone application will allow consumers to see Johnny Cupcakes upcoming products, promotions, and events. Social media spending will leap by 34% by 2014, while mobile marketing will jump by 27%. (Forrester, 2009) Consumer ratings from products will be available to view on the application. Products will be not be able to be purchased from the application. Application will be free. i. PHONE APPLICATION. . . 84% of consumers said they were more likely to check online for reviews prior to making a purchase compared to twelve months ago, according to a recent survey by Brand Reputation. (Retail Bulletin, October 2009)

Mixing & Matching of Brand Elements… SCRATCH & SNIFF HANG TAGS “ WHOA, this tag smells like strawberries!” Building on creating a bakery experience for the consumer. Our new hang tag smell will add on to the atmospheric of the store. Will not be included on online orders, exclusive for in-store products. “BIG KID” AVATAR

SWOT ANALYSIS… strengths • Unique product inspiration of incorporating cupcakes in to products. • Limited runs of products • Quality materials • Specialized delivery shipments • Word-of-Mouth Advertising • Strong online community • Music promotional events • Distinct brand logo • Rising annual revenue • Good customer focus and connection opportunities • Strong brand loyalty • Viral marketing engagement • Sharing same pop culture in consumer community • Continued rapid growth in reaching more consumers weaknesses • Limited locations • Copy right infringement • Limited Accessibility • Limited Advertising threats • Rising profits of competition • Multiple competitors in same home market • Competitors business more widely known

…BRAND POSITIONING UNIQUE $10. 00 -$20. 00 BUDGET $30. 00 -$32. 00 $24. 99 -$34 -. 99 $15. 99 -$36. 00 $20. 00 $22. 99 -$40. 00 $10. 00 -$22. 99 $18. 99 -$40. 00 $15. 99 -$17. 99 TRADITIONAL LUXURY

Merchandising Strategy… PRODUCT WIDTH PRODUCT LENGTH Clothing T-shirts, Long sleeve Shirts, Hoodies, Shorts, Dress shirts Intimates Accessories Belts, Earrings, Ties, Hats, Totes, Gloves, Key Chains Wallets Home Furnishings & Stationary Blankets, Pillows, Mugs, Note books, Pencils, Stickers, Water Cooler, Dice, Snow Tubes, i. Phone case, Vinyl Doll Candles Swimwear Umbrellas Bedding Product Depth: 9 (average product length x product width) 9/3 = 3; 3 x 3 = 9

Identify Differentiation Tools PRODUCT Currently Unique, fun, Quirky, tees and accessories Exclusive mystery t-shirts Future Undergarments, swimwear, cotton dresses and cupcake shaped cook wear Comic book (free with online purchase) SERVICE Consumer online ratings for feedback An i. Phone application to deliver instant updates to the consumer Experience Shopping in a bakery atmosphere Fun online mix of activities PERSONNEL CHANNEL IMAGE FUN eccentric people who love the brand what it stands for; and knowledgeable of the “JC” story. Internet , music performances and specialty Brick and mortar Store Bakery design (as it is), Scratch and sniff hang tags The individual who seeks originality. Everyday internet user that are always up to date on technologies. Our main channel is internet Website Nostalgic yet modern feeling Advertisements Creative bakery names for stores and products, animated Fat Boy spokes character Online Promotions Revamp Facebook, and Twitter and make those outlets for promotions cupcake factory tour.

Brand Position Evaluation CURRENT MARKETING POSITION: Important • Provides a fashionable outlet for kids in the rock scene Distinctive • Partner with popular and vintage brands to license t-shirts and accessories that are relevant to their target market Affordable • Products are priced for those in the middle class and above. The average cost at retail for a tee shirt is $39. 99. Profitable • They price their shirts higher than typical retailers and print on a small scale. This allows them to control costs FUTURE MARKETING POSITION: Important • Continue to embrace the rock culture, but try to expand customer reach to other sectors of the community Distinctive • Continue to license goods, however focus on upcoming web cartoon characters for a new and unique prospective Affordable • Offer consumers who choose to join a mailing list coupons and special rates throughout the year so that they can enjoy lower prices and more products. Profitable • Continue to make small printing runs of shirts, but look for cheaper sustainable fabrics (i. e bamboo)

Customer-Based Brand Equity Model Performance Imagery Identify Performance • Fun Graphics on t-shirts and accessories • Reliable Product: You can count on JC to fulfill your need for uniqueness • Effective Service: easy to buy, return and communicate with customers • Style and Design: EXCULSIVITY and FUN! • Price: Pricey for a t-shirt but not for the fun you get from the brand Imagery • User Profile: People who crave individuality and appreciate wacky designs • Purchased for fun to have a new addition to their collection, and used in many causal situations • Value for the brand comes from its personality, the brand creates fun not just a t-shirt • The JC has a heart warming heritage and everyone who buys into it knows the story; you can’t get a better brand heritage than that! Identify • Johnny Cupcakes is a fun and exciting tshirt company

Increasing Sales During video chats have the main presenter (Johnny or representative of the brand) give out a special sale code that people can use to have a percentage off of products for a limited time Create an advertising campaign in alternative magazines and zines that can help people know more about the product. Partner with more department stores for additional trunk shows with increased advertising Ensure the twitter, facebook, and blog are updated on a regular basis and include more promotions. Reward people for sharing their advertisements on social networking sites with a free item or discount.

Increasing Brand Knowledge Continue to support bands through sponsoring tours. Continue to be involved in fundraising projects in low income schools. Involve the students in a project that benefits them, and brings awareness to the brands and the things they support Have Johnny Cupcakes video chat parties happening on sites such as Chat Roulette or Skype where more people can just see the chat and become involved Start up a Johnny Cupcakes street team, which can distribute posters, stickers and coupons to places that they frequent (shows, school, public events)

Laws of Branding The Law of Publicity Viral marketing is used for Johnny Cupcakes advertising campaign, from traveling the country, using Word-of-Mouth, as well as using social networks to reach out thousands of consumers The Law of Contraction JC narrows its focus by implementing all their ideas into their number one selling product, t-shirt designs. They also focus on the same designs incorporated in their tshirts such as cupcakes. The Law of Quality Focuses on limited quality products from the fabrics used in their tshirts to the materials implemented in their accessories Specialize in delivery packaging The Law of Shape Johnny Cupcakes logo of “the cupcake”, incorporated in all of their products, is a trademark that stays in the mind of consumers.