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TRANSCRIPT
So, what’s the problem?
With operating costs up and sales down, what would Dippin’ Dots best strategic options for growth be?
Goals, Vision & Objectives
Besides being the “ice cream of the future”, who knows?!
› Strategic Vision› Mission› Objectives
General Environment What does society’s lifestyle look like,
and what do they value?› Increased concern for healthy diets› Convenience› Affordability› Aging population, fewer children
Technology’s interaction with society?› Knowledge is always being applied in new
and useful ways› Consumers seek product innovations
How does the economy look?› Recession› Most of Dippin’ Dots sales come from
“away from home” purchases
Politically & Legally, what are some concerns?› FDA regulations› Health Department› Franchise laws› Patents
Competitive Environment
There are several competitors in the Ice Cream Industry, including Dreyer's, Cold Stone Creamery, Haagen-Dazs, Dairy Queen, Ben & Jerry’s, and Baskin-Robbins
http://www.slashfood.com/category/reviews/page/3/
The Ice Cream Industry is in the mature stage of its life cycle, which is typified by a saturated market with well-established products and producers.
http://www.12manage.com/methods_product_life_cycle.html
Industry’s Dominant Economic Traits
Concentration Economies of Scale
http://clients.ibisworld.com/industryus/Majorcompanies.aspx?indid=249
Product Differentiation
The ice cream industry includes ice cream, novelty items, frozen custard, sherbets, sorbet, gelato, and quiescently frozen confection and frozen yogurt.
http://clients.ibisworld.com/industryus/productsandmarkets.aspx?indid=249http://dishragdiaries.com/recipes/snacks-drinks/we-all-scream-for-ice-
cream/
Barriers to Entry› Medium, because a few large producers
that fiercely compete for market share, is restricting the number of new players.
Growth
http://findarticles.com/p/articles/mi_m3289/is_4_173/ai_115490578/
Porter’s Five Forces
High Low
The Threat of New Entrants X
The Bargaining Power of Buyers X
The Bargaining Power of Suppliers X
Threat of Substitute Products or Services
X
Industry Competitors X
Dippin DotsMini Melts
Blue Bell
Cold Stone
Marble Slab
MaggieMoo’s
NestleUnilever
Strategic Moves of Rivals
Both
Manufacturer
Retailer
Narrow Wide
Scope of Product
Resource Valuable Rare Difficult to imitate
Difficult to substitute
Technological
Liquid nitrogen technology
Yes Yes No Yes
Dry Ice Freezers No No No No
Physical
Franchise Growth Yes No No No
Internal EnvironmentTangible Resources
Intangible Resources
Resource Valuable Rare Difficult to imitate
Difficult to substitute
Innovation
The product itself is an innovation
Yes Yes Yes No
Reputation
Marketing (Ads & Word of Mouth)
Yes No No No
Human
Technical skills & experience of the owner
Yes Yes No Yes
Primary Value Chain ActivitiesOperations
•Flash freezing
•Micro-encapsulating process
•Packaging (5 oz vending packages, big containers for retail shops)
•Quality control
Outbound Logistics
•Product itself
•Many flavors/ sizes
•Dry ice
•Subzero temps for storage & delivery (special freezers)
•Vending machines (5oz)
•Retail shops (4, 5, 8 oz cups)
Marketing/Sales
•Franchising Royalties
• .5% of income goes to enhancing mktg./advertising
•Cheaper By The Dozen (product placement)
•Available at McDonalds for a short time
•Pricing
•Retail-Vendor relationships (Sea World, etc.)
Service
•Response to vendors’ service requests, have spare parts on hand
•Quick response to customers needs and requests
Inbound Logistics
•Liquid cream
•Liquid nitrogen (flash frozen)
•Storage with dry ice
•Warehouse
•Nitrogen tanks
•Equipment
Short-Term Goals (1-3 years)
Develop a vision, mission & formulate strategic objectives of how you will get there
Alter product line› Expand: more health conscious options, fresh fruit
& nuts, flavors older generations enjoy› Eliminate: Dot Treats
Increase brand image/awareness› Utilize commercials & social media› Promotions, samples & coupons
Form strategic alliances› Toys R Us, Red Box, Disney, Cruise Lines, Comedy Clubs
Long-Term Goals (4 years +)
Place shops in tourist regions Factory tours
› Take advantage of your technological & innovative resources
Expand more internationally › Franchise
Continue to innovate› It is a competitive industry