Cinnabon Business Foundations Pilot Final Presentation (1)
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The document proposes that Cinnabon launch a new portable snack called Go-Bon to capitalize on the growing market for on-the-go indulgence. Go-Bon would be a handheld cinnamon roll made through a production process of forming dough balls, baking, cooling, and flavoring. Financial projections estimate Go-Bon would have lower costs than traditional Cinnabon bites but still yield high margins. Customer surveys indicate strong interest in purchasing Go-Bon, and airport sales projections show the product could generate over $1,000 in additional daily revenue at one location.
Cinnabon Business Foundations Pilot Final Presentation (1)
- 1. Indulgence on the Go Arianna Robinson Nikki Nixon Sam Johnson Thomas Scardino
- 2. Carp
- 3. RichTimes
- 5. The problem? They are NOT
- 6. How can Cinnabon offer quality and luxury indulgence ...on the go?
- 7. Go - Bon
- 8. Production Process 1. Starts with the dough 2. Formed into a ball 3. Baked to perfection 4. Cooled slightly 5. Infused with delicious flavor
- 9. Filling Flavors Creamy Caramel Pecan Divine Chocolate Heavenly Cream Cheese Gourmet Turtle Fresh Raspberry Succulent Blueberry
- 10. Value Proposition Quality and Luxury Indulgence on the go.
- 11. Consumer Portable - Easy to take on the go Less Mess Aesthetic Appeal
- 12. Cinnabon Within Core Competency of Quality Indulgence Entering New Market - Competing with On The Go Snacks
- 13. Key Partnerships Godiva Chocolate Smuckers Jellies and Jams Philadelphia Cream Cheese
- 14. Go - Bon For when I only have one hand to spare.
- 15. My mind is in Boston... my mouth is in Heaven. Go - Bon
- 16. When I want to treat my But don't want to clean kids... up a mess. I pick Go - Bon!
- 17. Now you can take the time to indulge without taking the time to indulge. Go - Bon
- 18. Promotion Ideas 1. Go Bon inc. with 6-Pack Orders 2. Limited time promotional pricing strategy 3. Seasonal Flavors
- 19. Seasonal Flavors Spooky Salted Caramel Gingerbread House Summer Smores Strawberry Shortcake
- 20. Financial Overview Pricing Strategy Estimated COGS & Revenue per unit Projected Growth
- 21. Pricing Strategy $1.50 $1.99 $1.79
- 22. Estimated COGS and Revenue per unit Classic Cinnabon Go-Bon Bites COGS / unit .74 .60 .40 Unit Price 3.69 2.99 1.99 Markup 2.95 2.39 1.59 Margin 80% 80% 80%
- 23. Customer Surveys 10% Would Definitely Buy 1 2 85% Would Likely Buy
- 24. Based on Customer Surveys 6% 5% 4% Growth 3% Series1 2% 1% 0% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month 10 11 12 YEAR 1
- 25. Estimated Sales in Atlanta Airport Travelers per day on average: 67, 337 CURRENT CUSTOMER BASE Current Estimated Cinnabon customers per hour: 30 Average ticket: $5 Revenue per day (14 hrs of operation): $2,100 PICK UP AND GO ADDED BASE 15% of travelers stop for pick up and go snack, 1% of which will buy Cinnabon 63 customers per hour added Average pick up and go ticket: $3 Added daily revenue: $1323 3000 2500 2000 1500 Series1 1000 Series2 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13
- 26. Summary The low cost of goods and high demand for portable desserts will make the Go- Bon a very profitable addition to the Cinnabon menu.