cold rock ice creamary

COLD ROCK
ICE CREAMERY
Create our own experience
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Our Plan
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Table of Contents
I.
Cold Rock Ice’s Profile
II.
Situation Analysis: Reasons for entering US market
III. Business Plan : Overall Strategy
IV. Conclusion: Strategic Recommendations
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I. Presentation of Cold Rock
Created in 1996 by Selwyng Barr, in Australia
New ice cream concept invented :
Mass customization products
The consumer himself satisfied his own needs
Now owned by Franchised Food Company
Forces : New creative way of making ice cream with innovative
marketing strategies
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II. Situation Analysis in USA
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Ice Creamery Market
Products: Cones, popsicles, Cups
Franchises: Ben&Jerry’s,
ColdStone, Baskin’n’Robbin &
Haagen Dazs
Independent stores
Consumers
All genders, all ages
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In the US...
Ice cream+Frozen dessert’ sales:
$25 billion in 2009
USA represents 1/3 of global
market
«Packaged Facts© Forecast»: Sales
will achieve $27 billion in 2014
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Today’s trends on the market
Probiotic bacteria
improve digestion
Prebiotic bacteria
Health Care : Omega 3
«Latin-Flavor»:
Avocado, Mango,
Jalapeños
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Ice cream Retail Price in USA
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Cold Rock Ice’s S.W.O.T
S
T
Strengths
Threats
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W
O
Weaknesses
Opportunities
Strengths
• Wide range of mixes
• Well trained « Cold Rockers »
• Franchise, easy to develop
• Support from the company
• Competitive prices
• Lot of Cows
Situation Analysis : S.W.O.T
S
T
Strengths
Threats
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W
O
Weaknesses
Opportunities
Weaknesses
• Only present on Australian &
South East Asia
• Unknown in the US
• May be hard to support from
Australia
Situation Analysis : S.W.O.T
S
T
Strengths
Threats
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W
O
Weaknesses
Opportunities
Opportunities
• US population
• Easy to start a franchise
• Enter a big market of $25 billion
• Create new mix with Australian
flavours
Situation Analysis : S.W.O.T
S
T
Strengths
Threats
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W
O
Weaknesses
Opportunities
Threats
• Strong competition
• Export Australian products
III. Business Plan
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Globalization strategy
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Low pressure from cost reduction /
High pressure from local responsiveness
Higher currency + Ingredients at a Lower price in USA
AUD$1 = US$1.046
4.643$
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Entry Mode : Franchise’s Price
Cold Rock Ice and the Competitors
Total Investment: $173,300-$438,900
Initial Franchise Fee: $30,000
Royalty Fee: 3%
Advertising Fee: N/A
Term of Agreement: 10 years
Renewal Fee: 50% of then current fee
Total Investment: $145,700-$527,800
Initial Franchise Fee: $30,000
Royalty Fee: 5.9%
Total Investment: $86,800-$397,100
Initial Franchise Fee: $30,000
Royalty Fee: 4%
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Our Franchise
Initial fee: $49,000 + GST.
Total Investment : up to $200,000.
Royalty fee: 6% of net sales
Australian Ice Creamery
Advertising fee: 2% of net sales
Basic site parameters
•
•
•
- The ice cream franchise must be a minimum size of 50 square metres.
- Strip type shops trading seven days a week with an evening trade.
- The Cold Rock franchise must be present in high traffic flow entertainment
precincts.
Total Investment: $292,400-$438,980
Initial Franchise Fee: $42,000
Royalty Fee: 6%
Term of Agreement: 10 years
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Human resource management
Ethnocentric and polycentric staffing policies
Expatriate mgmt
Training and program 3-4 weeks before
Adequate housing and education
Inpatriate suppport
Repatriation
same salary and level of position
sharing international knowledge
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Production/Operation in the US
Stand behind potential franchise
expert assistance: lease negotiation, store design,
equipment usage
The Franchise: MGMT package
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US Specific Marketing
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New Logo
Australian Ice Creamery
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Market Strategy: Positioning
What make us different ?
➯ WE ARE AUSTRALIAN !!!
➯ There is no unique selling proposition
"They are not interested in plain ice cream, but interested in
what they can do with it."
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Market strategy: Pricing
Price will attempt to match if not slightly decrease
Food products and cost living is lower in the US
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Market Strategy : Distribution
Distribution
➯North
➯Who
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American Cities
do not have Cold Stone
Market Strategy
Communication
Posters
Internet
✦ Train station
✦ Nearby the store
✦ Via social network,
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RSS flux & emailing
✦ Low costs
Television
✦ Strong power of attraction
✦ National TV channels
✦ Expensive but persuasive
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Aus-some Australian Koalaty!
New products specific for US market designed to advertise
Australian image
Offer new flavors using unique Australian fruits
Australian names to old products
Australian animal cups, cones, and toys
Promote American image of Australia
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Long Term Recommendations
Continue to diversify our products
Flavors of ice cream, topping and find new mixings
Open new store «branch out» in the US
Settle in cinemas, shopping centers
Development of less calories, light and healthy products
Extension of the concept in other countries in North America
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Thank you !
For your health, practice a physical activity every day
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