Baking Up Business

We all do it, all the time. We ask ourselves, “Is this (insert indulgence here) really worth the money?” Take the dessert above, for instance. Do I really need a US$25,000 frozen hot chocolate sundae made from 28 different cocoas, 14 of them being the most expensive and exotic in the world, infused with 5 grams of visible, edible gold, and served with a diamond-encrusted gold spoon? Maybe not. This magnificent creation named the “Frrrozen Haute Chocolate” is the masterpiece of New York restaurant Serendipity 3, whose US$1,000 Golden Opulence Sundae does appear on the regular menu and is routinely ordered.

The Golden Opulence Sundae was created in celebration of Serendipity 3’s 50^th anniversary in 2004. However, the menu item remained so coveted among the rich and status-conscious that it became a mainstay on the restaurant’s menu, although you do have pre-order it two days in advance.

What began as a publicity move has actually achieved much more for Serendipity 3. Their restaurant has now been elevated to being a “destination,” a place on people’s lists. There are even online articles outlining “How to Get a Table at Serendipity 3.” The pricing of their entire menu indicates an extremely high level of product quality and a clear profit orientation.

As if the restaurant’s popularity wasn’t assured enough, having Oprah announce in an “Oprah’s Favourite Foods” episode that Serendipity 3’s frozen hot chocolate makes her want to “dance on the chandeliers” sent online sales of Serendipity 3’s hot chocolate mix through the roof. Being put in the spotlight even convinced Serendipity 3 to share the real recipe with Oprah on her daytime talk show, and consequently, with the rest of the world. Take all that and throw in two Guinness World Records, and Serendipity 3 has some serious marketing ammunition that has cemented their long-term success in stone.

Speaking of Oprah, who will fill her shoes after she leaves her immensely popular daytime talk show next year? The “Oprah Effect” refers to the dramatic increase in sales a company experiences after receiving even the most casual of mentions on the Oprah show. Her show has become one of the most powerful marketing vehicles in existence, and virtually all companies dream of receiving such automatic fame and popularity simply by earning Oprah’s stamp of approval.

Is there anyone currently in the public arena other than Oprah who can influence audience’s perceptions on a product (or person) almost entirely on the basis that this public figure is perceived to have incredibly good taste? Is there anyone else whose main audience already consists of primary purchase decision-makers and trend-conscious suburbanites? Consumer behaviour may be easily influenced, but it takes an especially influential individual to get the job done right. Love her or hate her, Oprah is the one.