May 13, 2013

Back in 2011 the craze for $4 gourmet cupcakes was peaking. The dessert had become a cultural phenomenon and selling expensive concoctions was all the rage. Today, the leading national chain, Crumbs Bake Shop Inc., and its 67 locations are crumbling.

Now, I love a good cupcake. But the truth is that most of us are not going to have one every day. Also, making cupcakes is pretty easy, so there is no barrier to entry and the field is now saturated with competitors, including individual bakeries, chains and grocery stores. Some experts in the cupcake world dispute the notion that gourmet cupcakes are losing their appeal. They believe the category isn’t going away.

But here’s a marketing fact. If you build a business on a hot trend, someday that trend won’t be hot. All business trends are time sensitive. Part of any marketing plan has to be a plan for adapting and creating new markets when your core product loses its appeal. What are your plans?

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