Perform an internal analysis of the proposed Marble Slab franchise. Does Thomas have the capabilities to make this franchise successful? Internal analysis of the proposed Marble Slab franchise: Strengths- support from experts, certified kosher ingredients, established brand recognition, product differentiation between customized ice cream and mixing, Penny's personal experience as a buyer for Hudson Bay Co and her business background, help from brand management experts.
Weaknesses- limited support from Rhea, low promotional budget of $10,000, lack of creativity in pricing - which is evident from standard prices for in-store offerings, emitted freedom to set selling prices, low investment for investment for portable slab catering. I think Penny Thomas has the capacity to break even and remain In the business or "stay afloat;" It will be difficult for her to make the franchise successful. This is because she has already invested the $25,000 startup fee, and set aside $10,000 for marketing.
The important missing information to determine whether Thomas can make a successful franchise Is flexed costs such as equipment prices and rent. Apart from this, she needs to take Into account cost of labor, rent, purchase of business related infrastructure, maintenance costs, and other variable expenses. Assuming that she meets the revenue target, she would probably break even when these expenses are considered. Perform an external analysis of the frozen dessert Industry.
How does this affect External Analysis of the frozen dessert industry: Strengths and weaknesses are provided in the above answer Opportunities- hedging contracts on commodities, higher purchasing parity among consumers in Canada due to a robust economy, sharing location with other successful businesses, which could potentially help in driving traffic Threats- hangers in lifestyles or social norms that discourage ice cream consumption, health consciousness, fluctuating commodity prices, uncertainty in Canadian economy, cold weather Customer analysis- Thanks to kids, families engage in outdoor activities on weekends which invariably includes eating ice cream. Young adults have some disposable income but are swayed by social media trends. It could be difficult to get their attention, but with a good social media strategy, they can be targeted. Women tend to be the decision makers in most households, which includes food choices.
Considering the large and general group, we may receive a diverse response to marketing. Locations- Vaughan and Saukville have the largest populations. Saukville and Toronto Annex have the highest median household income levels. The commercial complex in Vaughan will have high traffic but high competition, as well as a 10-year term on the lease. The Toronto Annex will experience high traffic of the young adult population but rent will be expensive and finding space will be difficult. The Beaches will likely have high traffic of families and a variety of people, but is subject to weather changes. Sociable's demographic fits well with Marble Slab's price point and has little competition in the area.
Catering opportunities are unreliable but Thomas might be able to concentrate in-store business in Saukville while focusing catering efforts in the Beaches. Economic factors- Canadian economy is robust however exposure to the weakness in the American has caused uncertainty, including a decline in commodity prices and in Canadian merchandising exports. Evaluate the strengths and weaknesses of Marble Slab's competitors. What is Marble Slab's competitive advantage? Competition Cataracts- Has a huge following due to its culture and atmosphere. It offers customized drinks and a place to socialize, however its frozen treats options are very limited. Basking Robins- It is the largest ice cream chain in the world and has an enormous menu of choices.
Due to its successful business, its strengths are size and financial power. Having said that, it does not quite offer the level of customization that Marble Slab does. Dairy Queen- It offers a range of hot and cold foods. However, its product quality is inferior to Marble Slab. Its strength is price competitiveness and accessibility. McDonald's- It competes with low prices and quick service, all around the world. Its frozen treats selection is very limited and of inferior quality compared to Marble Slab. Its greatest strength is brand recognition. Grocers- they compete by prices, but product quality is generally inferior to Marble Slab's. Customers likely pick up frozen treats by the way, along with other groceries.
Marble Slab's competitive advantage is a personalized high-quality ice cream experience. Review the different customer segments in light of the Marble Slab brand. Who should be Thomas target market? Customer Segments Thanks to kids, families engage in outdoor activities on weekends which invariably includes eating ice cream. Young adults have some disposable income but are swayed by social media trends. It could be difficult to get their attention, but with a good social media strategy, they can be targeted. Women tend to be the decision makers in most households, which includes food choices. Considering the large and general group, we may receive a diverse response to marketing.
Families- The main influencer in families are kids, even though the decision makers are parents. Thanks to kids, families engage in outdoor activities on weekends which invariably includes eating ice cream. When a family comes in for ice cream, there is potential to sell four to five ice-creams rather than Just one. Young adults- Aged between 1 5 and 24, they have some disposable income and so, make their own decisions. However, they are swayed by social media trends. It could be difficult to get their attention, but with a good social media strategy, they can be targeted. Women- They tend to be the decision makers in most households, which includes food choices.
Women might enjoy gourmet ice cream more than men and might be more likely to recommend gourmet ice cream to others. They are also health unconscious, so it is unknown how they will respond to a business that offers ice cream as its core product. I would recommend a seasonal marketing strategy wherein Penny Thomas can target families with kids in the summer since they have a high likelihood of visiting specialty ice cream stores and have the most potential for multiple sales. During other seasons, women and young adults, who still have with rebellious streak in them, can be targeted. Young adults consume frozen treats throughout the year including in winter, since they would be in college without parents looking over their shoulder.