Business Model Analysis

About Tiff’s Treats

A couple eggs, flour, a bit of sugar, a touch of butter, and a handful of chocolate chips later, Leon and Tiffany were struck with an idea. They should sell these delicious scratch-made cookies to fellow students. Armed with $20, a cell phone, and a college-sized kitchen, Tiffany and Leon started “Tiffs Treats” on January 1999. As news of the delicious cookies spread, the demand for these warm and gooey treats grew. About a year later, the duo upgraded to a commercial kitchen by renting out the spare space in a restaurant’s kitchen. Three years after, they moved to the current location on MLK. Tiff’s Treats has since expanded to 11 locations in three different cities, Austin, Dallas, and Houston.

Tiff’s Treats provides freshly made cookies, brownies, an assortment of drinks and ice cream, as well as box decorations to make any occasion special. This company provides these products and a convenient pick up or delivery service. They are apart of both the goods and services industry. Tiff’s Treats is strategically positioned because of its convenience and status. Just like Great American Cookies, Tiff’s Treats has brick and mortar locations. However, it is even more convenient because it offers delivery, like a pizza restaurant. Tiff’s Treats is considered more of a special occasion goodie than homemade or a brick and mortar cookie store in a mall because consumers have to pay a premium delivery fee and cannot purchase less than 6 cookies.

Why I’m Passionate

What’s not to love about a company that delivers fresh, delicious, homemade cookies?! Not only am I a loyal customer of Tiff’s Treats, but I am also a fellow baker who is extremely passionate about baking. This love for creating and experimenting in the kitchen developed when I was knee-high to a grasshopper. Without my mom’s knowledge, I’d mix an egg, some flour, sugar, and food coloring in a bowl. I’d then microwave my concoction to make what I called a “cake.” My family had another name for it: the weird green puffy thing. I later learned about recipes and have never looked back.

Now, skip ahead a decade to my first Tiff’s Treats experience. It was my freshman year in college, and I was away from home for the first time of my life. Of course I was having the time of my life in the dorm, but this tiny, shared room lacked a feeling of “home.” When my birthday rolled around, it was a completely new experience without my family being there. Every year since I was a baby, I had been woken up early in the morning with a cake and presents. Well, I had been every year until my nineteenth birthday. Right when I was feeling a bit homesick, I got a call from some unknown number. To my surprise it was a delivery person from Tiff’s Treats dropping off a gift for me! Those two dozen cookies, milk, and ice cream were not only delicious but provided a perfect substitute for my birthday celebration. Since this experience, I’ve always had fond associations towards Tiff’s Treats and the special experiences they provide. 

Primary Customer Segments

I believe there are three primary customer segments in this college-targeted niche market. Tiff’s Treats only has 11 locations in three cities and was initially aimed at kids in the Austin area. The company has since expanded to multicity locations, but I believe this initial target is still one of Tiff's segments. 

The first segment is college-aged students who order cookies for themselves. They utilize delivery because they are busy or may not have access to a car. This group orders cookies for any occasion. Because most students do not have access to gadgets, ingredients, or the know-how to bake cookies themselves, Tiff’s Treats creates value by fulfilling their need for homemade cookies.

The second segment is parents ordering cookies for their college-aged children on special occasions like holidays and birthdays. Because most students do not live at home while in college, parents feel the need to prove to their students that they love them and are connected to them on these special days. Tiff’s Treats creates this value and parents are willing to pay the delivery fee. Parents utilize the delivery service to give their children a taste of home from anywhere.

The third segment is people of all ages hosting an event and is in need of a sweet treat. Whether it is parents planning a birthday party or students planning a meeting, this group is strapped for time and usually is too busy to make homemade cookies. Because this group is planning an event and the need for cookies isn’t a spur of the moment decision, they will plan ahead and order large quantities of cookies for the event. And, because this is planned, this group will pick up the goodies from the store. Tiff’s Treats creates value for this segment by saving them valuable time at a reasonable cost.

The value proposition is different for each segment because each group has different needs to fulfill. Ultimately, the first segment is looking for a solution for their inability to bake treats for themselves. Tiff’s Treats serves the purpose of convenience for this group. The second segment is looking to foster a relationship and will pay premiums to feel connected. Tiff's allows this segment to feel connected. The third segment has little time and needs something to get the job done. Tiff's Treats serves this purpose.

Sources

"About Tiff's Treats." Tiff's Treats. N.p., 2013. Web. 07 Oct. 2013. <http://www.cookiedelivery.com/Company/About-Us.aspx>.

Ryan, Caitlin M. "One Sweet Ending: How Tiff's Treats Evolved from an Unlikely Place." CultureMap Austin. CultureMap LLC, 18 June 2012. Web. 07 Oct. 2013. <http://austin.culturemap.com/news/innovation/06-18-12-13-12-tiffs-treats/>.