Dippin’ Dots Ice Cream

Britney ChaffeeMallery HaskinsBingbing LiuRenata PretoMelissa Rodgers

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

Business Level Strategy

Corporate Strategy

Original Dippin’ Dots

Dots N Cream

Edible Coffee

Coffee Drinks

Dot Treats

Recommendations

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

Questions?