Research Proposal of a Cupcake Shop at St Kilda, Melbourne

The purpose of this paper is to analyze all the factors which will be helpful to open a cupcake business at St Kilda in Melbourne, Australia. Also, some factors which araise the potential problem and anticipate those problems as well as the prospect of the business.
“St Kilda ( 34°43′S, 138°31′E) is a seaside suburb in Adelaide, South Australia that is home to an award winning adventure playground, tram museum, mangrove forest walk and an abundance of birdlife. St Kilda has only a small number of houses with a 2002 population of 80 residing in 46 homes, and a single connecting road to the rest of Adelaide which, where the road enters the suburb's residential area, is surrounded by salt crystallization lagoons used in the manufacture of soda ash.
The inhabited section of the suburb occupies less than 100 hectares along the seafront, with the remainder used for salt lagoons and also settlement ponds of nearby Bolivar sewage treatment works.
St Kilda road is the only access road and connects to Port Wakefield road at Waterloo Corner. St Kilda can be driven to from Salisbury in approximately 10 minutes and from Adelaide's CBD in 30 minutes. There are no scheduled bus services with the nearest public transport the Transadelaide 900 bus route which passes along Port Wakefield road, 2 kilometers outside the suburbs boundary.” (3)
The lively and cosmopolitan area of St. Kilda, is situated on the coast to the east of the city and is considered to be one of Melbourne's most fashionable suburbs. The main shops and eating areas are found on the busy Fitzroy and Acland Streets. If you'd prefer some European delights try Carlisle Street.
St. Kilda's lively atmosphere draws crowds of both tourists and residents alike. It is a wonderful place offering a diverse range of outlets, although it can be dangerous late at night. However, during the summer it is very popular, offering boat cruises and bike rides.
Visiting the Luna Park amusement park, built in 1912, is a must! It is a charming historic seaside amusement park complete with a wooden roller coaster and other rides. For evening entertainment try the Esplanade Hotel, which has comedy nights and various bands playing.
Apart from the very popular beach, which during the summer months attracts thousands of visitors, there are a number of other attractions in St Kilda to keep you occupied. Plus, there are several hostels, bed and breakfasts and a number of hotels where you can stay in comfort. (3)
As we see from Australia Bureau of statistics the population of the area is not much, for 2004 – only 48, 953, males and females are divided equally, the biggest part (30%) of the population are people in the age from 25 till 34.
The level of unemployment is comparatively low and do comprises only 6 %.
All this supports the idea of opening a cupcake business at St Kilda in Melbourne, Australia. This place is an example of heavens in the Earth. It is very popular among the tiourists, and will be sure to visit such a cosy and comfortable place, as Cupcake Shop. Besides, as it was already stated the population of the area is very young and all the romantic feeling will lead them to the shop. Let’s analyze 1. products/services offered, 2. technology, 3. market environment, 4. competition, 5. business model, 6. marketing and sales strategies, 7. production and operating requirements, 8. management and personnel requirements, etc.
Products/services offered.
Cupcake Shop can offer to the customer different and various kinds of sweeets, pastries and cakes themselves. These may be cakes of different types, such as Devils Food Cupcakes, Golden Vanilla Cupcakes, Peanut Butter Cupcakes, Chocolate Cloud Cupcakes, Coconut Cloud Cupcakes, Lemon Cupcakes , Strawberry Cupcakes, Cookie Dough Cupcakes, Carrot Cupcakes, Southern Red Velvet Cupcakes, German Chocolate Cupcakes, etc. This also can be birthday and two layer cakes, pies and cheese cakes, puddings and cakes which are consistent of breakfasts. Besides, there could be sold cakes made for order for some party, birthday or wedding, or just for home party.
The following service can be offered. The shop itself can have a small café where visitors can take rest and forget about the hit outside and just drink good juice and eat delicious cakes. You can celebrate your child’s or children’s birthday party at Cupcake shop! It will be real fun for both children of all ages, and their parents. This shop can offer custom cupcakes, specialty cakes, and mini cupcakes for weddings, bridal and baby showers, birthdays, bar mitzvahs and many other special celebrations. It will be surprises for each guest find their personal cake.
1. “Technology of making cakes can be given during four five days. For example, the following schema can be represented.
*Information on all major and minor raw materials
*How to diagnose faults
*An understanding of low and high ratio cakes and sponges
*Practical exercises for:
- flour and cocoa quality
- sugar and its alternatives
- fats and emulsifiers
- raising agents
- water and egg
- mixing and baking
- product development and shelf-life
- quality testing”. (8)
3. Market environment
The micro-environment
This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms, in our caces companies whose business is cake shop or confectionaries and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence.
The macro-environment
This includes all factors that can influence an organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.
The internal environment.
All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change 'internal marketing.'
Essentially we use marketing approaches to aid communication and change management. (4)
4. Competition
According to microeconomic theory, no system of resource allocation is more efficient than pure competition. Competition, according to the theory, causes commercial firms to develop new products, services, and technologies. This gives consumers greater selection and better products. The greater selection typically causes lower prices for the products compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly). However, competition may also lead to wasted (duplicated) effort and to increased costs (and prices) in some circumstances. Three levels of economic competition have been classified. The most narrow form is direct competition (also called category competition or brand competition), where products that perform the same function compete against each other. The next form is substitute competition, where products that are close substitutes for one another compete. For example, butter competes with margarine, mayonnaise, and other various sauces and spreads. The broadest form of competition is typically called budget competition. Included in this category is anything that the consumer might want to spend their available money on. Competition in our way is very important, as without it we will not observe any development of the business.
5. Business model.
“A brief history of the development of business models might run as follows. The oldest and most basic business model is the shop keeper model. This involves setting up a store in a location where potential customers are likely to be and displaying a product or service.
In economics, disintermediation is the removal of intermediaries in a supply chain: "cutting out the middleman". Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), companies may now deal with every customer directly, for example via the Internet. One important factor is a drop in the cost of servicing customers directly. Competition in our way is very important, as without it we eill not observe any development of the business”. (2)
6. Marketing and sales strategies.
Solutions to Increase Your Sales
Know How You Compare to Competitors -- Then Use That Info to Close More Sales
"Why should I buy from YOU, rather than your competitor?" Your Sales people have to answer that question, playing up strengths of your products or services and competitors' weaknesses. That's how great Sales people avoid (and plant) landmines to bring in more sales revenue.
“How do your Sales people get useful competitor reports? Reading thick Marketing binders? Sorting through unorganized competitor information in files, spreadsheets, reports, news-feeds and people's heads all around your company? These days, it's a 'no brainer' to pull such valuable information together to effectively support Sales!
You can pull it all together to give your Sales force easy access to brief, useful reports about competitors and how their products and services compare to yours. If your Sales people know how to click on a website, they'll be able to easily and securely get the useful reports they need, right when they need it, to close more sales and earn more money.”
Competitor Information Helps Your Competitive Intelligence
“Reports create a solid foundation for important activities in many departments. Put competitor information to work: close more sales, defend your market position (or reposition!), determine strategic priorities and so on.
Chances are, you've already been looking at building a centralized competitor information database. Why not buy one off-the-shelf and have it up and running in a week (rather than waiting a year or two for the do-it-yourselfer)? Let us be at your service right away”. (9)
7. Production and operating requirements.
First-Line Supervisors/Managers of Production and operating Workers supervise and coordinate the activities of Production and operating workers, such as inspectors, precision workers, machine setters, and operators, assemblers, fabricators, and plant and system operators. They instruct and train production employees to ensure that employees understand and follow all company policies and safety procedures. First-Line Supervisors/Managers may coordinate work schedules with a materials or purchasing department to make sure that materials are ordered and available for the completion of production orders. They are responsible for scheduling work and setting priorities to meet production deadlines. First-Line Supervisors/Managers may inspect finished products, and monitor gauges, and dials, to make certain that operators meet productivity and quality standards.
They may prepare employee performance appraisals and recommend personnel actions such as hirings and promotions.
“Calculate labor and requirement and production specifications, using standard formulas.
Confer with management or subordinates to resolve worker problems, complaints, or grievances.
Confer with other supervisors to coordinate operations and activities within or between departments.
Demonstrate equipment operations and work and safety procedures to new employees, or assign employees to experienced workers for training.
Direct and coordinate the activities of employees engaged in the production or processing of goods, such as inspectors, machine setters, and fabricators.
Inspect materials, products, or equipment to detect defects or malfunctions.
Interpret specifications, blueprints, job orders, and company policies and procedures for workers”. (10)
8. Management and personnel requirements
Organize your deployment team and then assign specific roles to team members. Depending on the size of your organization and the complexity of your deployment, you might also want to create subteams.
“Assess the core competencies of your information technology (IT) staff. Also, assess their skill sets with regard to Windows 2000 technologies. Then, decide how you are going to manage any shortcomings. The following list provides options you might consider in regard to managing training issues:
*Delay the deployment until the staff is fully trained in the new technologies.
*Outsource portions of the work to cover weak points. Then, have your staff members learn the required skills from the contracted personnel.
*Outsource the deployment, support, and maintenance of your enterprise”. (6)
The following information provides basic information for the operation of a licensed food establishment. Food establishment operators are encouraged to contact their local regulatory agency for specific changes and/or additions to these guidelines.
1. Submit blueprints or floor plans to regulatory agency for review and approval.
2. Complete and submit application and fee for food establishment license to regulatory agency at least 30 days in advance.
3. Pre-operational inspection and approval is required before opening for business.
4. All food items must be obtained from a licensed or approved source.
5. All equipment must be properly constructed, located and installed (cleanability).
6. All coolers/refrigeration units used in the facility must be capable of maintaining 41ºF.
7. Proper and approved equipment for cooking, storing, displaying and serving hot foods.
8. Adequate lighting with shielded fixtures in food preparation, dishwashing, service and storage areas.
9. Three-compartment warewashing sink, appropriately sized with drain boards, or automatic dishmachine of an approved commercial type with booster heater or chemical rinse is required.
10. Handwashing lavatory with mixing faucets, hot and cold running water is required in food preparation areas and behind each bar area.
11. Utility/mop sink for mop and waste water equipped with hot and cold running water is required in a licensed facility. A mop/handsink is not allowed.
12. Restrooms: Required number, properly located and equipped, power vented and self closing doors are required.
13. Approved walls and ceilings, smooth, washable surfaces in the food preparation area.
14. Approved floor coverings. No carpet in the kitchen, food prep areas, behind bars or in the restrooms.
15. Self service operations must be provided with proper sneeze guards over serving lines and all ice bins must be covered to prevent contamination.
16. All outer openings must be protected (screens) and all doors tight fitting (insect and rodent proof).
17. Outside garbage and storage areas must be properly located, equipped and maintained.
18. Outside premises must be properly maintained at all times (no weeds, junk, litter, etc.).
19. Proper storage area and labeling for toxic items.
20. Provide proper storage area for personal clothing, belongings, medicines, etc.
21. Provide proper storage area for cleaning maintenance equipment (mops, brooms, etc.).
22. Provide storage facilities for clean and soiled linens, etc.
23. Comply with all building, electrical and plumbing codes (air gaps, traps, vacuum breakers, etc.).
24. Provide thermometers in all refrigerated units, conspicuously located.
25. Provide adequate ventilation and exhaust system (hoods, canopies, make-up air, etc.).
26. Provide proper sanitizers and test strips for 3 compartment sinks.
27. Provide proper containers and sanitizer for storage of wiping cloths in use.
28. Provide proper dispensers for soda/pop machines. Correctly installed and maintained.
29. Food establishments shall be separated from any living or sleeping quarters by complete partitioning and solid, self closing doors.
30. Each time a licensed operation changes ownership, the facility must be brought into compliance with current laws and regulations.
31. All licensed facilities must comply with state/local Fire and Building Code requirements. (7)
To conduct a business successfully it is a good idea to hire an accountant who will follow your balance sheet and all the work concernig money.
As a conclusion we can say that a project to build a little cupcake shop and to develop this business at St Kilda, Melbourne can be definitely successful. There are a lot of factors that can help this idea. The inhabitatnts of the area are mostly young people, the place itself is full of tourists. If to make a bright and clever adverticememnt, everyone will know about the shop and most people will be eager to attend it. Besides, different services for parties will be one winnnig point, as many people are tired of something usual and want to have once a holiday. All the marketing factors depend closely on the menegment personel.



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