Companies have both B2B and B2C markets. Consider the following short case study, and devise a marketing strategy that could have either prevented the chain of events, or strategies that may resurrect the company:
The U.S. cupcake chain Crumbs Bake Shop announced that it would cease operations and close all of its stores a week after its shares were suspended from trading on the Nasdaq.
Crumbs operated with 79 shops in 12 states and Washington, D.C. at its peak. The company was founded in 2003, and sold cupcakes in a range of flavors, among them red velvet cheesecake and Girl Scout lemon shortcake. Cupcakes ranged in size from 1 inch to a colossal 6.5 inches, and some cupcakes included in the product range boasted 600 calories. The cupcake concept was highly popular with competitors; Georgetown Cupcakes consistently enjoyed long lines of waiting customers and was so popular that it morphed into reality television with the show DC Cupcakes.
Crumbs reported losses in 2013 of $18.2 million, following losses of $10.3 million in 2012. Crumbs management issued warnings in spring of 2014, based on cash flow difficulties. Crumbs was listed on the stock market in 2011 at the height of the cupcake boom, but it seems that Crumbs had succumbed to new competition in the form of food trucks. There has been discussion about a purchase by an investor group and the company's website remained live but was not taking orders
What do you think? What could the company have done differently? What options remained for the company following the closure of the stores? Include some reflections on the confectionary market of today. Use what you have learned over these 8 weeks to develop a marketing strategy that could have possibly prevented the company's decline. Use elements of the marketing audit whenever appropriate to develop your proposal.