Cold Stone Final Project

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Contents Product Statement.................................................... 4 Analysis of the External Environment.................................5 Industry Trends.....................................................5 Competitive Trends..................................................7 Brand Competitors.................................................7 Product Competitors...............................................7 Generic Competitors..............................................10 Total Budget Competitors.........................................10 Political Trends, Legal Trends and Regulatory Trends...............11 Franchising......................................................11 Food and Drug Administration.....................................11 Technological Trends...............................................13 Economic Trends....................................................14 Cultural Trends....................................................17 Analysis of the Customer Environment................................19 Who................................................................19 How many...........................................................20 What...............................................................21 Why and How........................................................23 When...............................................................24 Why Non Customers..................................................25 Where..............................................................26 Analysis of the Internal Environment................................27 Marketing strategies...............................................27 Target Market....................................................27 Image..............................................................27 Marketing Programs.................................................28 1

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Transcript of Cold Stone Final Project

ContentsProduct Statement...................................................................................................... 4Analysis of the External Environment......................................................................... 5Industry Trends........................................................................................................ 5Competitive Trends.................................................................................................. 7rand Competitors............................................................................................... 7Product Competitors............................................................................................. 7!eneric Competitors.......................................................................................... "#Total ud$et Competitors................................................................................... "#Political Trends% &e$al Trends and 'e$ulatory Trends.............................................""(ranchisin$......................................................................................................... ""(ood and )ru$ Administration............................................................................""Technolo$ical Trends.............................................................................................. "*Economic Trends................................................................................................... "4Cultural Trends...................................................................................................... "7Analysis of the Customer Environment....................................................................."+,ho....................................................................................................................... "+-o. many............................................................................................................. /#,hat...................................................................................................................... /",hy and -o......................................................................................................... /*,hen..................................................................................................................... /4,hy 0on Customers.............................................................................................. /5,here.................................................................................................................... /1Analysis of the Internal Environment......................................................................../72ar3etin$ strate$ies.............................................................................................. /7Tar$et 2ar3et..................................................................................................... /7Ima$e.................................................................................................................... /72ar3etin$ Pro$rams.............................................................................................. /4Advertisin$......................................................................................................... /4Product and Service 56erin$.............................................................................. /+)istri7ution and Channel Pro$rams....................................................................*#"Pricin$................................................................................................................ *#Sales strate$y and Sales force e6ectiveness.....................................................*#2ar3etin$ research 8intelli$ence $atherin$ e6orts.............................................*#Pu7lic relations8pu7licity.................................................................................... *"(inancial Performance........................................................................................... */Additional Company Characteristics......................................................................**Technical Capa7ilities......................................................................................... **Availa7le 'esources............................................................................................ **Production Capacity........................................................................................... **Career 5pportunities.......................................................................................... *4S,5T Analysis.......................................................................................................... *5Stren$ths............................................................................................................... *5,ea3nesses........................................................................................................... *75pportunities........................................................................................................ *4Threats.................................................................................................................. *+2ar3etin$ !oals and 579ectives............................................................................... 4#!oals..................................................................................................................... 4#579ectives............................................................................................................. 4#2ar3etin$ Strate$ies................................................................................................ 4"Tar$et mar3et........................................................................................................ 4":alue Proposition................................................................................................... 4/Positionin$ Statement........................................................................................... 4/Issues Analysis...................................................................................................... 4*Action Plans.............................................................................................................. 45:alpa3 Savin$s Coupons........................................................................................ 45(ree Smoothie Sample at !asparilla )istance Classic 'ace Expo..........................41Customer &oyalty Card.......................................................................................... 47;niversity of South (lorida (reshman 5rientation Promotion................................44Tuesday (ree ona. Since they .ere ice creamloversthemselves% their mission .as to $ive customers the @to ma3e people happy and$ive them the ultimate ice cream experienceA." There are more than "%45# ColdStone creamery franchises located throu$hout the ;nited States and in countries allover the .orld.Currently% thereare "5locations throu$hout -ills7orou$h County.Thecompanyis7asedinScottsdale% ACandiso.nedandoperated7yen$ranitestonetomixanythin$andeverythin$ into any ice cream Davor. There are over "" million possi7le creationsand after years of practice% some of the favorites have 7een named @Cold StoneSi$nature CreationsA./ (or ice cream lovers .ho .ant to indul$e in Davors and notthe calories% Cold Stone has several options they call% @-ealthy Indul$encesA.Thesehealthconsciouscustomerscanchoosefromnon?fatnosu$araddedicecream%Sor7et Davors and non?dairy smoothies.The ice cream creations are o6ered in three si>esE 5 o>% 4 o>% and "/ o>. The si>esare creatively named @&i3e ItA% @&ove ItA% and @!otta -ave ItA respectively. There isalso a * o> 3idsF si>e availa7le for youn$ Cold Stone lovers.Customers that really@!otta-aveitAcanorderlar$erGuantities@to$oAineither@mineA% @oursAand@Every7odyFsA si>es Hsmall% medium and lar$eI. Cold Stone treat prices are J*./+for a @&i3e it%A J*.*+ for a @&ove it%A J*.7+ for a @!otta have it%A and J".1+ for a 3idssi>e. @To $oA prices ran$e from J1.++ to J+.++ and toppin$s start at *# cents each." Our Story Coldstone Creamery. September 6, 2010 https://www.coldstonecreamery.com/about/coldstonestory.html/ Our Story Coldstone Creamery. September 6, 2010 https://www.coldstonecreamery.com/about/coldstonestory.html45Analysis of the External EnvironmentIndustry TrendsThe ;nited States (ro>en dessert mar3et has t.o main channelsE retail andfoodservice. The retail mar3et encompasses sales of fro>en $oods throu$h $rocery%convenience% specialty and discount stores .hile the foodservice mar3et includessales from scoop shops% restaurants% vendin$ machines and other esta7lishments.In /##+% it .as estimated that the ;.S. ice cream and related fro>en dessert mar3etreached /4.1 7illion dollars% a ".5K increase from /##1. In the same time period%nearly 1#K of all ;.S. fro>en dessert sales .ere made throu$h foodservice.*

The foodservice mar3et has 7een faced .ith tou$h times 7ecause of the on$oin$recession. Consumersareeatin$athomemore% andare7uyin$icecreamfromretailers to eat at home instead of $oin$ out.The ice cream sales have not $ro.nsince/##1andexperienceda*.1percent decreasefrom/##7L /##4. It isforecasted that foodservice ice cream sales .ill continue to decline% up to 4 percent%throu$h/#"*.4Althou$hthisseemsli3e7adne.s% theseshopshaveauniGueadvanta$e. !oin$ out for a 7o.lof ice cream allo.s consumers to indul$e in asmall luxury% 7ut 7e mindful of their .allet durin$ diMcult economic times. Superpremium ice cream shops% are a 7it more expensive% 7ut aim to $ive consumers themost 7an$ for their 7uc3.,hen they visit these upscale shops% they are loo3in$ formorethana7o.l oficecreamNtheyareloo3in$tohavean@experienceA. Thistrend is called @The Star7uc3s e6ect%A and causes consumers to pay more to $et apersonali>ed experience.5 ein$ health conscious continues to 7e a trend .ith consumers and has lead to thecome7ac3 of fro>en yo$urt shops. (rom /##5 to /##+% foodservice fro>en yo$urtsales $re. "#.+ percent .hile durin$ the same time period foodservice ice cream* @Ice Cream and (ro>en )esserts in the ;.S.E 2ar3ets and 5pportunities in 'etail and (oodservice% 1th EditionA 2ar3et'esearch.com Septem7er 4% /#"#4 @2ar3et Si>e and (orecastA Ice Cream shops ;S /##+ 2intel report Septem7er 4% /#"#5 @0e. Product TrendsA Ice Cream and (ro>en )esserts. 2ar3etresearch.com /#"#1sales experiencedonly a4K$ro.th 7ecauseof declines in/##7and/##4.1Consumers .ant still .ant to treat themselves to somethin$ s.eet% 7ut .ithout theextra calories. The ne. fro>en yo$urt shop is self?serve% .here customers dispenseand mix their o.n Davors% pic3 out toppin$s and pay 7y .ei$ht. Self?serve shopsallo. consumers tostillhavea personali>ed experience .ithouthavin$ topay apremium price. In the Tampa ay area% =o$urtolo$y and =o$urt Spot are t.o self?serve yo$urt places have recently 7een poppin$ up. -ealth conscious consumers are demandin$ $reat tastin$ natural food .ith simplein$redients. Inresponsetothistrend% -aa$en?)a>scameout.iththeir@(iveAseries of ice cream. Each Davor of -aa$en?)a>s (ive has only Bve naturalin$redientsE mil3% cream% su$ar% e$$s and one additional Davor in$redient.All of thein$redientsareeasilyreco$ni>ed7yconsumersandma3ethemfeel $ooda7out.hat they are puttin$ into their 7odies.7 The demand for or$anic products is no lon$er somethin$ found only in ur7an areasand in colle$e to.ns.In "++7 or$anic products .as a *.1 7illion dollar industry andin/##7it .asrecordedtohave$ro.nto"4.+7illiondollars% ma3in$or$anicproducts mainstream. 2any mainstream ice cream manufactures% such as en OPerryFs% havereactedtothisdemandandno.o6er anor$anicversionof theirproducts.4Co?7randin$ is a relatively ne. trend .here t.o di6erent franchises% usually fromthe same parent company% provide o6erin$s from one location.5ver "# years a$o%)un3in)onutsandas3in'o77ins.eret.ooftheBrstfranchisestosuccessfulopenaco?7randedshop. 'ecently% manyother franchiseshavefollo.edsuit%includin$ 2a$$ie 2ooFs and !reat American Coo3iesN Pi>>a -ut and Taco ellN and1 @(oodservice (ro>en =o$urt Is a Soft?Serve 2ar3etA Ice Cream and (ro>en )esserts. P.7".2ar3etresearch.com /#"#7 @-a$$en?)as> (ive Stands 5utA Ice Cream and (ro>en )esserts. P. /+* 2ar3etresearch.com /#"# Septem7er 4% /#"#4 ;S)A says 5r$anic is 2ainstreamA Ice Cream and (ro>en )esserts. P. 11 2ar3etresearch.com /#"# Septem7er 4% /#"#72ar7le Sla7 Creamery and a 0exCen pre>telma3er su7sidiary.Co?7randin$ is a .aythat 7oth 7rands can ta3e advanta$e of their complimentary traMc patterns% raisea.areness% $ro.% and 3eep costs do.n.+ Competitive TrendsBrand CompetitorsMarble Slab Creamery claims that in "+41 it .as the Brst shop to use a fro>en$ranitesla7to7lendmix?intoppin$sintotheicecream% per thedirectionof acustomer. The company 7e$an in the Southeastern re$ion of the ;nited States andhas since expanded to nearly 4## locations in *5 states% Canada% the ;nited Ara7Emirates% en )esserts. P. "57. 2ar3etresearch.com /#"# Septem7er 4% /#"#"# Ice Cream and (ro>en )esserts in the ;.S.E 2ar3ets and 5pportunitiesR1th Edition% p$."17"" ....yello.pa$es.com HSeptem7er "4% /#"#I "/ Ice Cream Shop L ;S L )ecem7er /##+% 2intel 5xy$en% &eadin$ Companies4in the sprin$ of /#"# to phase out plastic containers and replace them .ith paperproducts. Its pac3a$in$ displays the phrase% @(ind -appiness ,ithin%A a sentimentthat em7odies thecultureof the7rand."*Thecompanyhas deBnedits 7randthrou$h a $ourmet proposition maintained 7y a @chef?driven vision.A This concept is7ein$ promotedaspartof thecompanyFsre7randin$initiative. Inane6ort to reposition its $lo7al 7rand ima$e to 7etter reDect its$ourmet ice cream artistry experience% 2ar7le Sla7Creamery colla7orated .ith contestants from thetelevision sho. Top Chef to create% @Cele7rity Sundaes.A"4"* Ice Cream and (ro>en )esserts in the ;.S.E 2ar3ets and 5pportunitiesR1th Edition% p$."14"4Ice Cream Shop L ;S L )ecem7er /##+% 2intel 5xy$en% rand Sualities +Product CompetitorsDairy ueencom7ines ice cream and fast food underoneroof. Thisisane6orttoproducelevera$eoveritscompetition% 7y creatin$ a restaurant?li3e atmosphere toattract families. )airy Sueen% headGuartered in 2inneapolis 2innesota% has 5%1##stores inthe;.S.% Canada% andmanyother various countries."5Thereare/"locations in the Tampa ay 2etropolitan Area."1In /##4%)airy Sueen had J/%55#millioninsales% ma3in$up5#.5percent of thetop;.S. icecreamshopchainmar3et."7In /##+% )airy Sueen announced @The S.eet )eals value menuA .hichincludes nine items that can 7e purchased in com7inations of t.o for J*% three forJ4orfourforJ5. Itemsincludeacheese7ur$er% all?7eef hotdo$% chic3en.rap%(renchfries% onionrin$s% salad% 7evera$eandsundaeorcone."4)airySueenisa$$ressively see3in$ innovative .ays to en$a$e consumers and 7uild 7rand eGuitythrou$h socialmedia% mo7ile messa$in$ and virtual7randin$. )airy Sueen spent74." million in advertisin$ expenses in /##4% an 41.* percent share of the top icecreamshopadvertisers."+)airySueenis7est 3no.nfor its si$natureli>>ardtreats% and they account for a7out a Guarter of its total sales. The company puts ahu$e emphasis on its promotional support 7ecause of ho. much sales come fromthis trademar3 product. The company created a @li>>ard of the 2onth campai$nA%.hich is advertised on television to create product a.areness and excitement.Bas!in"#obbinsis the lar$est fro>en dessert chain in the ;nited States and the.orld% .ith more than /%4## locations in the ;.S. and 1### throu$hout the .orldand /%4## locations in the ;nited States. There are /5 locations in the Tampa ay2etropolitan Area./# as3in?'o77ins had J57/ million in sales in /##4% ma3in$ up"".* percent of the top ;.S. ice cream shop chain mar3et./" as3in?'o77ins is aleadin$playerintheicecreamindustryandem7odiesthe7randGualitiesof atraditional icecreamshop. Thecompanyhasclassicmenuo6erin$sando6ersconsumers avarietyof Davors. as3in?'o77insplans toreinvent the7rand7yo6erin$Soft Serveicecreamandcreateane.valuepricepoint. Inaddition%as3in?'o77ins is 7e$innin$ a ne. concept format called @' ExpressA featurin$ aproduct line7asedfromthefuturesoft servemenu.//In/##+as3in?'o77inssu6ered and .as faced .ith challen$es from the recession.In response% it releaseda ne. @uy?5ne !et?5neA promotion called 5!5 for fro>en 7evera$es. as3in?"5 Ice Cream and (ro>en )esserts in the ;.S.E 2ar3ets and 5pportunitiesR1th Edition% p$."1*"1 ....yello.pa$es.com HSeptem7er "4% /#"#I"7 Ice Cream Shop L ;S L )ecem7er /##+% 2intel 5xy$en% &eadin$ Companies"4"+/#/"//"#'o77ins tries to en$a$e its customers and has a irthday Clu7% .hich o6ers a freeice cream cone to every mem7er on his or her 7irthday and special savin$s couponsall year lon$ via e?mail./* Ben $ %erry&s 7randFs identity is shaped 7y innovativecom7inations of traditional in$redients paired .ith somevery unorthodox names./4They have rou$hly 75#locations .ith approximately 5## of those in the ;nitedStates./5en OPerryFs hadJ/4#million insales in/##4% ma3in$ up "4.5 percent of the leadin$ ice creamshop mar3et./1 There are four locations in the Tampa ay 2etropolitan Area./7 en OPerryFs spread environmentally?friendly messa$es and is committed to activism.Thecompany uses limited time o6ers of particular Davors to raise money and a.arenessfor a variety of di6erent causes.(or example% a limited edition Davor .as launchedto reco$ni>e Sir Elton PohnFs Brst trip to :ermont and to raise money for the EltonPohn AI)S (oundation./4The proceeds from this particular Davor .ere donated toElton PohnFs AI)S (oundation and simultaneously 7oosted the 7randFs identity. enOPerryFsalsovalueitscustomersandhaveemployeda@(reeCone)ayAasacustomer appreciation e6ort for over *# years. 'aa(en"Da)s .as the Brst super premium ice cream 7rand and .as started 7y 'eu7an 2attus in "+1#.The company .as ori$inally pac3a$ed ice cream that .as availa7le in shops throu$hout 0e. =or3 City. In "+71% the Brst -aa$en?)a>s shop .as opened 7y 'ose 2atthus% the o.nerFs dau$hter% and it .as an instant success./+It is 7elieved that -aa$en?)a>s laid the $round.or3 for other super premium scoop shops% includin$ the 7rands $reatest rival% en O PerryFs. The company currently hasover +## shops in 5# di6erent countries% includin$ upscale locations in Europe and Papan.*# There are three locations .ithin the Tampa ay 2etropolitan Area.*"

-aa$en?)a>s had J"## million in sales in /##4% ma3in$ up 7.7 percent of the /*/4/5/1/7/4/+""leadin$ ice cream shop mar3et.*/ -aa$en?)a>s prides itself on usin$ simple and pure in$redients and promotes its 7rand as% @made li3e no otherA.The -aa$en?)a>s 7rand trademar3 is the use of uniGue upscale in$redients such as aileyFs IrishCream% carameli>ed pear O toasted pecan% and crTme 7rulUe. 5ne of the 7randFs latest innovations% @(ive%A features only Bve in$redients in the all natural ice cream. ,hile the main $oal of releasin$ @(ive% .as to o6er a pure and natural product line% it also claims to have less fat than its other ice creams. ***eneric Competitors 0ame rand Ice Cream H!rocery StoreI !eneric rand Ice Cream H!roceryStoreI Smoothies Italian Ice (ro>en 0ovelties (ro>en =o$urt !elato Co6ee PuiceTotal Bud(et Competitors )onuts Coo3ies Cupca3es Che.in$ !um Potato Chips Pi>>a*#*"*/**"/"*Political Trends+ ,e(al Trends and #e(ulatory Trends-ranchisin(-ranchisin( is a method of expandin( a business and distributin( (oods and services in accordance .ith terms and re(ulations set by the franchisor+ also !no.n as the business developer/The business expands because the franchisor licenses its name and business operations to an individual or entity 0the franchisee1/23-ranchisin( is a (ood .ay for someone ne. to business to start out because some else has already .or!ed out the business strate(y/4ver time+ franchisin( has become increasin(ly more popular and there .as a franchise boom bet.een the years 5665"5667/Each state has di8erent la.s+ but under -lorida ,a.+ 9a franchise is an a(reement bet.een t.o or more persons that involves a commercial relationship (ivin( the franchisee a ri(ht to do business usin( the franchisor:s services/;2+366 Cold Stone stores have opened around the .orld over the last decade and in 566?+ Entrepreneur ma(a)ine ran!ed Cold Stone as the >>th fastest (ro.in( franchise/ The initial application process to become a Cold Stone franchisee can ta!e up to three months/ The initial franchise fee is @35+666 and a total investment bet.een @5A3+5en $ranite .as chosen 7ecause ithas a non?porous surface and can consistently remain at Bve de$rees (ahrenheit.4"Social e?$iftin$isarelativelyne.(ace7oo3applicationthat ma3esit easyforcompaniesto en$a$ecustomers throu$h socialmedia. Consumers can$o tothe(irst)ataSocial e?$iftpa$eon(ace7oo3andGuic3lysendatan$i7le@$iftAtoafriendFs (ace7oo3 account or e?mailaddress.4/The company has plans to expand7ut currently only o6ers @$iftsA from Cold Stone Creamery. 4"4/Economic TrendsThe United States has the largest economy in the world, but is currently in what some consider an economic crisis.It was predicted that the economy would be making a strong turn around this year but last quarter (pril ! "une #$%$&, the economy only grew%.' percent( less than the #.) percent that economists had pre*iously predicted. +conomists belie*e that in order to pre*ent further unemployment, the economy needs to sustain a #.$ ! #., percent growth rate. lthough things are looking grim for the end of #$%$, e-perts predict the economy will begin to pick up in #$%%.).The Tampa /ay area is e-periencing *ery little economic reco*ery, iscurrently ranked as one of the weakest metropolitan areas in the nation.))The recession has hea*ily impacted the ice cream industry. Cold Stone has closed appro-imately %'$ stores in two years, and more than #$0 of its current stores are up for sale.1any franchisees are o*erwhelmed with debt, and some store owners are e*en claiming personal bankruptcy.),Income ,evelss stated in the target market, there are #,2)2,#2# li*ing in the Tampa /ay region.The a*erage annual household income is 3'),#'2 and the median is 3)2,)4).Tampa /ay falls under the national a*erage and mean which are 32%,%#4 and 3,#,%2, respectfully.The cost of li*ing is less in Tampa /ay then many areasand consequently people make less money which could account for the di5erence.The household annual income le*els are being a5ected by the high unemployment rate in Tampa /ay.)'Dnemployment The entire nation is dealin$ .ith hi$h unemployment rates and many peoplehave little hope of Bndin$ a 9o7.;nfortunately% a 7i$ percenta$e of this $roup hasalso lost their home due to foreclosure.In /##+ the national unemployment rate.as +.4 percent and the (lorida rate .as much hi$her% "/.+ percent. Althou$h theentire nation is su6erin$% Tampa ay is .orse o6 .ith a reported "* percent4*444541unemployment rate durin$ this same time period. 47TaxThe on6going a*ailability of sugar is essential to making super premium ice cream and there has been concern of an anticipated sugar shortage. There is some concern that a sugar shortage may occur in the ne-t two years because of quotas on imports imposed by the US7.)4In addition to the possibility of a sugar shortage, there is also the possibility that legislators could impose a 89at Ta-: on foods and;or be*erages high in sugar content.)s currency.The in=ation rate in the United Stated has remained fairly consistentand a*eraged out to .., percent from #$$,6#$$esE li3e it H5o>.I% love it H4 o>.I% and $otta have it H"/ o>.I.ColdStone Creamery also o6ers a @to $oA option for at?home ice cream consumption.Consumers can personali>e a creation to 7rin$ home and choose fromE @mineA H"?/servin$sI% @oursA H*?4 servin$sI% and @every7odyFsA H4?1I. Several di6erent */ o>.Guart containers are availa7le .ith preselected creations for those that .ant to $ra7somethin$Guic3to7rin$home. -ealthconsciousconsumerscanindul$einaSinless Sans (at% a non?fat no su$ar added ice cream. Cold Stone Creamery alsoo6ers a variety of non?dairy Sor7ets and non?dairy Smoothies to meet consumersFhealth needs.In /##+% Cold Stone entered the $ourmet cupca3e mar3et and 7e$an creatin$ icecream cupca3es to sell in?store. The three Cold Stone si$nature cupca3es are% Ca3eatter )eluxe% S.eet Cream and )ou7le Chocolate )evotion.The cupca3es are soldin pac3a$es of six for J+.++.7/In addition to the cupca3es% Cold Stone Creamery hassome other alternatives to scooped ice creamE Ice?Cream Ca3es% Ice Cream Coo3ieSand.iches% Smoothies% Sha3es% and Iced and 7lended Co6ees.Cold StoneCreamery uses severalcomplimentary products .ith its ice cream. ,aWe Conescan 7e thou$ht of as complimentary 7ecause it .ould not 7e consumed .ithout icecream. Several @mix?insA that are used to ma3e a @Custom CreationA can also 7econsidered as complimentary products. These includeE apple pie Bllin$% cherry pieBllin$% peach pie Bllin$% $rahamcrac3er pie crust% caramel% cinnamon% fud$e%sprin3les% su$ar cone pieces and honey.7* Althou$h the listed @mix insA are tasty%they .ouldnFt necessarily 7e consumed alone.Today% consumersarefocusedon@$oin$$reenAinalmost everyaspect of theirlives. (ro>en dessert mar3eters are tryin$ to appeal to these consumers 7y7#7"7/7*implementin$ environmentally friendly practices..com letsconsumers order from over *# di6erent restaurants includin$ Cold Stone Creamery.5rders can 7e easily placed online or 7y callin$ 4"*?/5*?EATC. 4"4/4*Analysis of the Internal EnvironmentMar!etin( strate(iesTar(et Mar!etColdStoneFstar$et mar3et consistsof consumersthat li3etoindul$einsuperpremium ice cream. These consumers are loo3in$ for more than 9ust ice creamNthey are loo3in$ to have an experience.Cold Stone has hi$her prices than other icecream shops% 7ut its tar$et mar3et is .illin$ to pay% to $et exactly .hat they .ant.Cold Stone o6ers personali>ed service to each customer% allo.in$ them to createtheir o.n treat% and leaves them .antin$ to come 7ac3 for more. Accordin$ to theCold Stone .e7site% each franchised location should 7e in a hi$h traMc area .ith atleast "#%### people ina onemileradius.Additionally%itrecommends thatColdStoneFs are put in strip malls% near movie theaters% or near other restaurants.2ostice cream is 7ou$ht on impulse% .hich is .hy these heavily traMc3ed areas .or37est. Accordin$ to a store o.ner in (&% his tar$et mar3et consists of adults .hocome in alone or in pairs. -e also said adults tend to 7rin$ 3ids on the .ee3end%7ut that they almost al.ays order somethin$ forthemselves too. In $eneral% itstar$et mar3et isverysimilar to Star7uc3s% consumers .ho are .illin$ to pay alittle extra to indul$e in a small treat.Ima(eCold Stone .as started by Donald and Susan Sutherland after they reali)ed that the .orld did not have a 9perfect; ice cream/ In >A77 they .ent on a Buest to chan(e the .orld+ redeFne ice cream+ and opened their Frst store in Tempe+ Ari)ona/ 73Cold Stone positions itself to be the .orld&s best ice cream and considers it to be in a class of its o.n/Cold Stone ma!es its ice cream daily+ in each store+ from the freshest in(redients/Dsin( only the Fnestin(redients means its products are considered to be 9super premium;/ The Cold Stone ima(e is somethin( much bi((er than Hust ice creamI it is a place that leaves people happy and .antin( to come bac! for more/It is .here people can come and indul(e+ have fun+ and relax/ 44 Mar!etin( Pro(ramsAdvertisin(Cold Stone Creamery uses several di6erent mar3etin$pro$rams to increase consumer a.areness and 7uildrelationships .ithicecreamlovers .orld.ide. Throu$hadvertisin$% ColdStonehopestoreachmoreconsumersand provide them .ith the ultimate ice cream experience.5ver the holidays in /##+% Cold Stone launched a mo7ilecouponpro$ram.hereca7lenet.or3srancommercialsas3in$ vie.ers to text @C'EA2A to the num7er provided.:ie.ers that sent the textmessa$e received a mo7ile coupon $ood for one free @love?itA si>e creation% .henan additional treat is purchased. The $oal of the pro$ram .as to $et consumersinside the stores and ultimately drive sales.The promotion tar$eted families% .hichallo.ed people of all a$es to ta3e advanta$e of the coupon% as lon$ as they had amo7ile phone.45 The mo7ile coupon also appealed to% @$reen?mindedA individuals.ho favor paperless options for coupons. It created more foot traMc in the storesand $ot consumers excited 7ecause they .ere 7ein$ $iven somethin$ @freeA.This.as theBrst timeColdstoneusedmo7ilemar3etin$andthepromotion.asconsidered a success.45In 566J Cold Stone Creamery released the 9,4GE IT ,4GE IT; campai(n .hich tests consumer&s devotion to their ice cream/The (oal of the campai(n .as to capture the public&s love for ice cream and position Cold Stone as the number one place in the .orld to eat ice cream/The campai(n dramati)es the consumers& Hourney to a Cold Stone Creamery+ and then creates obstacles that our put in their path+ thus testin( their desire for ice cream/ The advertisements .ere meant to be dramatic+ humorous and mysterious+ they .ere supposed to dra. consumers in and leave them .antin( to !no. more/Each advertisement .as its o.n story that displayed a stru((le about ho. far one .ill (o to (et somethin( they really .ant/7? This .as Cold Stone&s Frst inte(rated advertisin( campai(nand they used television+ online+ radio+ and a 9,4GE IT ,4GE IT; micro site/In the end+ the campai(n had mixed results on .hether it .as successful or not/People can stay en(a(ed .ith the 9,4GE IT ,4GE IT; campai(n by (oin( to loveit"loveit/com+ .here they .ill Fnd an archive of advertisements+ characters and bloopers/ 4n %uly J+ 56>6+ Cold Stone teamed up .ith -irst Data Corporation to o8er a ne. (iftin( application throu(h -aceboo!/ KThan!s to social net.or!in( sites+ textin( and the (ro.in( abundance of .eb"enabled mobile devices+ the .ay people interact as .ell as (ive and receive (ifts is chan(in(+K said Dom Morea+ -irst Data division mana(er of Mobile Commerce Solutions/7J,oyal Cold Stone fans can no. Buic!ly and easily send a tan(ible (ift 0ice cream Creations+ sha!es1 to a friend or loved one:s -aceboo! account or e"mail address/Consumers can access the e*ift social application throu(h Cold Stone:s -aceboo! pa(e or .ebsite and select one or multiple friends to send (ifts to+ by either by addin( them from -aceboo! or enterin( their e"mail address/ The sender can then select .hich product they .ould li!e to send their friend and can add a personal messa(e/The sender of the e*iftis able to then proceed throu(h the secure chec!out process/After the sender 9chec!s out; the recipient receives a -aceboo! messa(e+ e"mail or both alertin( them that they received a (ift/Included in the messa(e are the account number and redemption instructions/The recipient can redeem the e*ift item at any participatin( Cold Stone location/ 77Cold Stone loves to 9ma!e people happy; and this (ives people an opportunity 4147to share a Cold Stone moment even if they cannot be to(ether/ Product and Service 48erin(Cold Stone Creamery has somethin( for everyone .ith over >>/< million possible creations/7AThe si(nature Eavors areL Ca!e Batter+ Chocolate+ Co8ee+ Mint+ Stra.berry+ Cheese Ca!e+ -rench Ganilla+ S.eet Cream+ and Sinless Sans -at/In addition to the si(nature Eavors+ stores o8er local and season Eavors such as Cinnamon Bun+ Pump!in+ Amaretto and candy cane/Cold Stone o8ers customers a .ide variety of mix"ins for their creations that include candy+ fruit+ nuts+ ca!es and coo!ies/-or consumers that prefer somethin( otherthan scooped ice cream+ Cold Stone has ice"cream ca!es+ ice cream coo!ie sand.iches+ smoothies+ sha!es+ and iced and blended co8ees/ Distributionand Channel Pro(ramsColdStoneCreameryhas"%4##franchisedstores.ith"+4inCanadaandotherforei$n countries.ColdStoneisexpandin$ $lo7ally%andisconstantlyloo3in$to.or3 .ith people that share its passion for ice cream. Cold Stone franchise o.nersuse in?store% online% and direct mar3etin$ channels. Pricin(Prices at Cold Stone vary 7y si>e% item and 7y store.Cold Stone sells its ice creamsin * di6erent si>esE &i3e it H5 o>I% &ove it H4 o>I% and !otta have it H"/ o>I.There isno set price per si>e 7ecause it depends on the ice cream and mix?ins.The avera$e price ran$e for the three si>es isE @&i3e it%A J*.##to J5.##N @&ove it%A J*./# to J4./#N and @!otta have it%A J4.## toJ5.5#. Each ice cream order includes one toppin$% such asfruit or candy% and then each additional toppin$ or cone is 75 cents. Pricesfor smoothies and sha3es vary 7y si>e% and are respectively J/.1+ to J4./+.Cold Stone serves co6ee either iced or 7lended in small% medium and lar$eand are priced J/.1+% J*.1+% and J4.#+ respectively.Ca3es can 7e made in small%medium and lar$e and are $enerally priced J"#.##% J"+.+5% and J/5.+5444+respectively.Cold Stone provides premade pints to $o for J1.4+ or customers canma3e their o.n% .ith up to three toppin$s% for J7.++.Sales strate(y and Sales force e8ectivenessCold stone has been uniBue and innovative in its di8erent sales strate(ies/The most recent launch of its e*ift pro(ram has been very successful thus far/The e*iftin( idea .as introduced to increase inMstore revenue and drive franchisee proFtability/A6Inside =et.or! Inc/+ an industry research Frm+ states that the D/S/ mar!et for virtual (oods is currently estimated at@>/? billion/Social net.or!in( sites account for approximately half the total mar!et for virtual (oods+ t.ice as much as one year a(o/ Dnli!e traditional virtual (iftin(+ Cold Stone&s e*ift application is used to send tan(ible (ifts that can be redeemed in participatin( locations/ The application .as developed by eMcommerce and payment processin( industryMleader+ -irst Data CorporationA> Mar!etin( research Nintelli(ence (atherin( e8ortsCold Stone&s aims to provide ice cream lovers the ultimate customer experience/ To (ain insi(ht on its e8orts+ there is a brief online survey available to the public/ The survey has a very colorful scheme+ bac!(roundmusic and a comical son( to stay consistent .ith the Cold Stone brand andensure a satisfyin( 9survey ta!in( experience;/A5Mystery shoppin( is also used to enforce excellent customer service and satisfaction/Cold Stone .ants to ma!e sure that every customer receives exceptional service and has an unfor(ettable experience/ A2Public relationsNpublicityCold stone creamery esta7lished created its o.n personal .e7site .hich provides information that dates 7ac3 to /##*.Esta7lishin$ this .e7site early on% too3 them from 7ein$ a locali>ed ice cream shop to a $lo7ally reco$ni>ed ice cream po.erhouse% .hich rivals or$ani>ations such as mar7le sla7. Cold stone participatesin ma9or food sho.s% all over the .orld% to create product a.areness and provide samplin$.(or the EX Entertainment net.or3Ys /#th irthday party% Cold Stone provided an exclusive custom ice cream 7lend% QEX Entertain?mintA.+4Cold stone also partners .ith the 2a3e?A?,ish (oundation to help @$rant .ishesA to terminally ill children.2ost recently% edspaceontheColdStone.e7site. The.e7sitelistsanythin$anyone.ould.ant to3no.a7out ColdStone% except for Bnancialperformance 7ecause it is a private company. "/.Cold Stone utili>es (ace7oo3 and en$a$es its customers 7y postin$ promotions%contests and fun facts on its pa$e. "*.'ecently% ColdStonedecidedto 7e$inco?7randin$.hich.ill providemoreoptions for its customers and capture a 7i$$er tar$et mar3et.Cea!nessesStatementof InternalCea!nessesCompany Performance ImportanceStren(thIndex=umber>PMinor5 2 3P,o.5 2 3endessert industrythat o6er similarproducts such as% 2ar7le Sla7 Creamery and en and PerryFs.*. -ealthy lifestyles are 7ecomin$ increasin$ly popular in the ;nited States.A7out*4.7Kof adults.atchtheir diet and.ouldpro7a7lyprefer toeat healthierdeserts.4. It is 7ecomin$ more diMcult to o7tain a personal or small 7usiness loan 7ecause7an3s are scared to lend money due to increases in defaults.e the use of the Pu7lic 'elations department to insure positiverelationships .ith Cold Stone customers Create an e6ective customer loyalty pro$ram for the Tampa ay area.4bHectives 5pen * ne. locations in the Tampa ay area 7y )ecem7er /#"/. Increasethenum7er of ColdStonecustomersinTampaay7y"5K7y)ecem7er /#"" 5pen one ne. Co?7randed Cold Stone in the Tampa ay are 7y )ecem7er/#"". Increase 'evenue at each franchise 7y "5K durin$ /#"". 'un a promotion .ith ;S( durin$ the sprin$ semester of /#"". oost the sales for holiday inspired treats 7y "#K this year Hyear end /#"#I. y )ecem7er /#"/% increase the num7er of repeat customers 7y "5Kthrou$h a loyalty card pro$ram. Createan5r$anicDavor7y2ayof/#""ando6eritinatleastoneColdStone store as a six month trial.Mar!etin( Strate(iesTar(et mar!etThe tar$et mar3ets are $eo$raphically se$mented for the Tampa ay re$ion and include the follo.in$ countiesE -ills7orou$h% -ernando% Pasco% and Pinellas. The ;nited States Census ureau reported a total population of /%747%/7/ for the Tampaay re$ion. Primary mar!etL53A+A7< consumers .ho are >< " 23 years old/ )emo$raphic se$mentationE a$eo In/##+% 2intel reportedthat 44percent of their "4? /4year oldrespondents and*4percent of /5? *4year oldrespondents hadvisited an ice cream shop in the past * months. HIce Cream Shops ;SIConsumers a$ed "5 ? "7 .ere not included in this particular study% 7utare part of the primary tar$et mar3et 7ecause teens are li3ely to visitice cream shops. In /##*% u>>ac3 2ar3et 'esearch too3 a survey of5## teens and 4* percent .ould choose to snac3 on ice cream if $ivenoptions.HIce Cream and (ro>en 0oveltiesI Psycho$raphic se$mentationE Impulsive 7ehavioro In /##+% 2intel reported that *+ percent of their respondents decidedto$otoanicecreamshopattheverylastminuteand4/percentdecided to $o .ithin the hour.HIce Cream Shops ;SISecondary mar!etL 23?+?J? families .ith children+ .ho have an annual income (reater than @5eicecream.ChoLThe di6erent Cold Stone locations in the Tampa ay metropolitan area .ill honor the coupons.Timin(L (all/#""% durin$thefreshmanorientationsatall ;niversityofSouth(lorida campuses.Bud(etL There .ill 7e rou$hly 5### incomin$ freshman at the four di6erent ;S(locations. 5### post?its can 7e ordered throu$h Stic3/it.com for J "%*7#and it includes shippin$.,e estimate /# percent of the freshman .ill ta3eadvanta$eof this]HH5###\./#I["###freshmanIH"###\/.##lossfromsaleI^ [ J/%### cost. Total cost for this promotion is @2+2J6/MeasurementL The success of this promotion can 7e measured 7y ho. manycouponsareturnedinateachofthestoresandifsalesincreaseddurin$ the remainder of the semester.Tuesday -ree Qids *ivea.ay4bHectiveL Thepurpose.ould7eto$etparentsto7rin$their3idsintoColdStone and hopefully indul$e in a treat for themselves.Tar(et Mar!etLParents .ith children a$e "# and underDescription of the Pro(ramE)urin$ the summer season H.hen 3ids are outof schoolI 3idsa$etenandunder canreceiveafree3idFs si>e ice cream on Tuesday ni$hts from 5E## P2 toclosin$. !ivin$ treats a.ay to children ten and under .illcreateasenseof valuetoadultsand.ill asaresultdrive customers to come in .hen they other.ise .ouldhave passed on super premium ice cream.ChoLThe individual franchises .ill honor e.ithotherdo$ o.ners. Each do$ .ill en9oy a " o>. sample si>e ofvanillaicecream.ithado$treatplacedontop. )o$=appy -our .ill ta3e place from * p.m. till closin$.ChoL The respective Cold Stone franchises in the Tampa ay 2etropolitan area.ill honor the promotion.Timin(L(irst (riday of each month from 5pm till close from 2ay to Au$ustBud(etEH" o>. Z J#.5#I x H"5 do$s per dayI x H4 monthsI x H"5 stores locationsI[ J45#.J7.## 7a$ of do$ 7ones HZ a7out 75 7ones per 7a$I x H"5 storelocationsI [ J"#5.Total Do( Rappy 'our Bud(etL @ens .ill 7e o6ered one dollar o6 a@li3eitAsi>eicecreamfrom"/E##P2to*E##P2onThursdays. In an e6ort to create a.areness SeniorCiti>en Afternoon -appy -our .ill 7e promoted atsenior centers throu$hout the Tampa ay 2etropolitanarea. The pro$ram is desi$ned to appeal to ademo$raphic that Bnds @dealsA to 7e as important asGuality. y o6erin$ this @dealA Cold Stone .ill 7e a7le too6er $reater value to senior citi>ens. ChoLThe di6erent Cold Stone franchises in the Tampa ay metropolitan area.Timin(L)urin$ @sno. 7irdA season% from 0ovem7er to (e7ruary% on Thursdays from "/E## P2 to *E##P2.Bud(etL"# seniors x "5 stores [ "5# senior citi>ens.[ J "5#.## x "1 Thursdays[ @ 5+366MeasurementL The success of the promotion can 7e measured 7y trac3in$ thesales $enerated on Thursdays from "/E## P2 to *E## P2 from seniorciti>ens.Monthly Customer Dra.in(4bHectiveLTo $ive 7ac3 and than3 customers .hile also $ivin$ them an incentive to indul$e at Cold Stone and turn them into more freGuent visitors. Tar(et Mar!etLCustomers at the di6erent Cold Stone locations Description of the Pro(ramE This .ill 7e a monthly dra.in$ .here t.ocustomers .ill eachreceive J"5.##ColdStone !iftcards. Each store in the Tampa ay area .ill have a 7ox.here customers can Bllout a card .ith their contactinformation and enter it to 7e part of the contest. The.inners .ill7e pulled onthe"5thof each monthandnotiBed .ithin /4 hours. This promotion is alsoconsistent .ith.hat ColdStonealreadydoesinthecommunity. It .ill7e a .ay for the company to $ive7ac3 to the Tampa ay area and hopefully createrepeat customers and positive 7u>>. ChoLThe di6erent Cold Stone locations in the Tampa ay metropolitan area.Timin(L5nce a month for a trial for a trial period of * months.Bud(etLHJ"5.## for each $ift card x /I [ J*#.## HJ*#.## x "5 storesI [ @3> in their store and it .ill 7e up to them ifthey .ant to continue. They can measure the success of thepro$ram if they see an increase in foot traMc and sales or patternsof repeat customers.Mar!etin( Bud(etGalpa! Savin(s Coupons-ree Smoothie Sample at *asparilla Distance Classic #ace ExpoCustomer ,oyalty CardDniversity of South -lorida -reshman 4rientation PromotionTuesday -reeQids *ivea.ay@A>+5AA3?/?S@5+736>/3/5/35SDo( Rappy 'ourStudent Study Brea! promotionClear Channel 4utdoor Di(ital BillboardSenior Citi)en Afternoon 'appy 'ourMonthly Customer Dra.in(@edthatI reallyen9oy.or3in$ .ith people. :er7al and .ritten communication are very important s3ills tohave in the .or3 place and this pro9ect $ave myself and my teammates a real?lifeexperienceto7othlearnfromanden9oy. 2y$roup.asextremelysuccessful inma3in$ deadlines% .or3in$ to$ether% and understandin$ each otherFs stren$ths and.ea3nesses. Asaresult% ourBnishedpro9ectisri$htlyacompilationofourhard.or3.2y favorite and most valua7le learnin$ experience durin$ the course of the