Marble Slab Case Analysis

EXECUTIVE SUMMARY Comp whatsoever marble Slab is a bon ton that is famous for making fresh sorbet rake. It sells its bounteousness prestige wish-wash thrash about that is made day-after-day with unique toppings. The unique thing about Marble Slab is the customers ability to completely customize their methamphetamine hydrochloride cream the way that they requirement to eat it. Instead of having a predetermined flavour, customers ar able to mix their flavours of fruitcake cream that they please and put a numerous amount of toppings on them that acknowledge Bananas, Strawberries, Bread crumbs and so forth They call this Mixins. All of this is dvirtuoso on a giant drinking glass cold marble slab.Marble Slab wishes to exceed customers a unique experience with a prestigious brand of methamphetamine hydrochloride cream. Marble Slab choiceery Inc. was founded in Houston, Texas in 1983. It was independently owned by franchisees crossways the United States until 2003 when Cana dians were granted permission to resist franchisees in Canada. In 2007, Marble Slab creamery Inc. was purchased by NexCen Brands Inc. Although NexCen owned Marble Slab they played a small role in the day-to-day operations of their locations. Marble Slab has bend one of the fastest growing quick serve restaurants with al nigh four hundred locations worldwide.Product Besides agio ice cream that is made daily, Marble Slab also sells sundaes, milkshakes, ice cream cakes, cold yogurt and more. Since the ice cream is made fresh at the location it fanny last up to 30 days. E very location had an offering of 21 different flavours and an endless amount of mixins. And the prices of the growths were the same across any of the locations. Price The prices of Marble Slabs products vary from as low as $4. 95 for an ice cream cone shape with 1 mixin to a Slab cake for $54. 95 and everything in between.They do deport things that atomic numeral 18 cheaper than the cone with 1 mixin such(p renominal) as brownies, apple pie slices, and even a charge for extra mixins, all of which are under $3. 00. Event catering for an display case of at least 200 community will learn 2 employees at a cost of $12 per hour, as well as the cost of supplies and the ice cream itself. Place There are approximately 400 Marble Slab locations worldwide. With many locations in major(ip) urban and Suburban areas throughout Canada and the United States With a potential location in Vaughn, Toronto Annex Area, the Beaches, or Oakville.Promotion Potential promotional ads in the Toronto Star, Now Magazine Toronto, Pattison Outdoor and on 104. 5 helpmate FM. online MARKET ENVIRONMENT MICRO ENVIRONMENT Indus rise Trends The biggest way in the ice cream sedulousness as of right now is that most consumers are switching over to a more premium and more expensive ice cream products. An example of this would be the Magnum bar that comes from chocolate imported from Belgium, which has become very favo urite because of their grocery storeing campaign.Things such as TV Commercials and celebrity endorsements are the reasons for the success of that product. The popularity of appetency ice cream has been decreasing steadily since 2007. The reason for this is that people are becoming more health conscience and are not interested in that type of ice cream anymore. Organic ice creams are becoming very popular. People are interested in pictorial flavors with no mushy colours added. People kindred the act that these products are not genetically enhanced in any way because, as stated before, people are more health conscious.Chocolate, Vanilla, and Strawberry flavours are suave the most popular flavours of ice cream. But this does not mean that consumers are not willing to travail new flavours. New flavours are still being created because they are still successful. Competition Direct frozen Stone- Cold Stone is pretty much an exact replica of Marble Slab. They offer a premium ice c ream with complete customization. They even prepare it on a frozen granite stone. Created over 20 years ago and with over 1,400 stores it is easily one of Marble Slabs direct competitor.Baskin Robins- Baskin Robins is the largest ice cream caller-up in the world. In Canada it has the largest share-of-mind. They serve ice cream, milkshakes, cakes and other products. They are well known for their 31 master flavours and their ice cream is known to be of good quality. A Baskin Robins can be found any smudge from malls to stand alone buildings. It has a large amount of financial resources and is priced similarly to Marble Slab. dairy farm Queen- dairy farm Queen is mostly known for its famous Blizzard It also serves ice cream and milkshakes and cakes.But it also sells Hamburgers, Hotdogs, and Sandwiches. Dairy queen also has a similar mixins concept that Marble Slap has merely at a cheaper price. They also tar take a crap children with children friendly food options. Indirect McDon alds- McDonalds is the biggest restaurant chain in the world. McDonalds has a food chain in over 120 countries. They are primarily known for selling Hamburgers and fries but also have ice cream. The most famous of their ice cream meals being the McFlurry Milkshake. McDonalds is a forcefulness abide and is unstoppable when it comes to promotion of their products.They excel in quick serve food and are unimpeachably the leaders in the food market. A positive for Marble Slab is the fact that McDonalds isnt really popular for its ice cream products and does not have the share-of-mind for that product. Starbucks- Starbucks is known for selling their premium coffee and tea products. almost other thing that they do well is sell a comfortable environment. Its a good place for people to hang out and socialize with friends and family. However they do not have a very large menu and mainly specialize in customized drinks.They also have a niche market and do not cater to children. Convenienc e Stores- There is convenience and grocery stores everywhere that have introduction to ice cream. Its quick and easy to get ice cream at these places and they also have almost every other food choice. They can also choose to discount prices on items. They are good for bargains. Baskin Robins has the Market share of ice cream restaurants. What they and Marble Slab have in common is that they have the same rear end market. Marble Slab is more prestigious and expensive. It also has more of a sit buck restaurant feel to it.What Marble Slab has done better in terms of its competition is * Greater share-of-mind than McDonalds * Caters to a bigger demographic than Starbucks, and Dairy Queen * Selling an buffer product * Having an original mixins concept * religious offering a unique experience with the food being prepared on a frozen marble slab What Marble Slab has done that is weaker than their competition is * not as popular as Baskin Robins or McDonalds * More reputable product subject matter it will be more expensive * Dont have the market queen or financial resources as their competitionConsumer Families Young Adults Women Demographic -A Family with children who are under the age of 15 -Young Adults aged 15- 24 -Women aged 15- 50 Geographic -Primarily in Urban and Suburban areas -Primarily in Urban and Suburban areas -Primarily in Urban and Suburban areas Psychological -Parents who are often engaged in family activities- aspect for good quality ice cream. People who have their own disposable income -PT, FT, or summer physical exertion -Health conscious-The primary food purchasers in the dwelling house. Do a lot of food decisions in and out of the house Behavioural -Those who enjoy ice cream as a treat and would go to Marble Slab to play their need for ice cream -Looking for social interaction-Impulsive-Limited family obligation -Looking for some place fast and easy to get a snack -Impulsive Suppliers & Marketing Intermediaries They get their sup ply from dairy farmers. Dairy can be quite a expensive in the off season. They get most of their fruits and vegetables from farms as well. Also products such as lay off get purchased from fixingsies.All marble Slabs are individually owned so they all have their own means as to where they get their supply. It whitethorn vary slightly from location to location. Products from the factories and the farms get purchased then they will be supplied to each of the Marble Slabs. MACRO ENVIRONMENT Macro-environment factors are the major external and uncontrollable factors that operate an boldnesss decision making, and affect its performance and strategies. These factors include the economic factors demographics lawful, political and social conditions technological changes and natural forces.Technological Technology is another aspect of the environment a firm should consider in developing strategical images. Changing technology may affect the demand for a firms products and services, i ts production processes, and raw materials. Technological changes may create new opportunities for the firm, or threaten the survival of a product, firm, or industry. Technological innovation continues to take to the woods at an increasingly rapid rate. The technological aspects of Marble Slab include the technology utilized to create and upgrade frozen dessert products such as ice cream, frozen yogurt, and milkshakes.Additionally, a new technological trend can be found in companies Investing in ways to create the same saccharine taste of frozen desserts, but with less saturated rounds and processed sugars. Demographic Socioeconomic characteristics of a creation expressed statistically, such as age, sex, education level, income level, marital status, occupation, religion, birth rate, death rate, average size of a family, average age at marriage. A census is a collection of the demographic factors associated with every subdivision of a population.Income level of the cities wher e doubting Thomas is looking to start the telephone circuit are highly populated and people have pretty high level of income. The age groups of young adults 15-24 are in the range of 2000-35,000. sparing Economic factors refer to the character and direction of the economic system within which the firm operates. Economic factors include the balance of payments, the state of the business cycle, the distribution of income within the population, and governmental monetary and fiscal policies. The impact of economic factors may also differ between industries.The economic downturn of 2008 is still a heavy factor in the minds of Canadian consumers. Although conditions have improved in the last few years, Canadians still show some amount of concern financially. This concern materializes into apprehension for luxury and treat items such as ice cream. This raises a slight risk for Marble Slab especially because of their super premium ingredient, and luxury status. Another economical big env ironmental factor is the ice cream industrys exponential influence from the wide sport of dairy market prices.The price of commodities such as cocoa and sugar also vary depending on supply and demand. This plays a direct role in the amount spent on goods. Social/ethnical The sociocultural dimensions of the environment consist of customs, lifestyles, and values that characterize the society in which the firm operates. Socio-cultural components of the environment influence the ability of the firm to obtain resources, make its goods and services, and function within the society. Sociocultural factors include anything within the scope of society that has the potential to affect an organization.Population demographics, rising educational levels, norms and values, and attitudes toward social responsibility are examples of sociocultural variables. matchless of the social aspects discussed in the Marble Slab case study is the rise of the healthy-eating trend. The increased rate of obesit y in North America is one of the tip factors in the occurrence of this social trend. This poses a threat to Marble Slab because ice cream is a frozen dessert treat high in calories. This however is combated by Marble Slabs addition of fat-free frozen yogurt.Ice cream is considered to be a social event in our culture, and the fact that ice cream establishments offer a social environment is a leading factor in why the market holds so much potential for young adults and families with children. Political/legal The political-legal dimension of the general environment also affects business activity. The philosophy of the political parties in power influences business practices. The legal environment serves to define what organizations can and cannot do at a particular point in time.One of those most important political factors in the assessment of the macro environmental factors of Marble Slab lies within the fit in Sales tax policy (HST) that has replaced the Provincial Sales Tax (PST) since July of 2010. The combination of the PST as well as the Goods and Services Tax (GST) indicates a slight raise in the overall cost of goods and services. This is an important political factor for a retail store same Marble Slab Creamery, because consumers will find a observable increase of tax.This raises a slight risk they will be discouraged from visiting luxury or treat stores like an ice cream establishment. Natural environment An identifiable element in the physical, cultural, demographic, economic, political, regulatory, or technological environment that affects the survival, operations, and growth of an organization. Winter Weather in Canada can affect the business. People try to ignore eating cold products in winter. SWOT ANALYSIS Strengths * Make Fresh Ice Cream Daily * High Quality Ingredients * Customizable Product 21 Flavour of Ice Cream * Fat barren * Greater share-of-mind than McDonalds * Caters to a bigger demographic than Starbucks, and Dairy Queen * Selling an original product * Having an original mixins concept * Offering a unique experience with the food being prepared on a frozen marble slab Weaknesses * Not as popular as Baskin Robins or McDonalds * More Prestigious product means it will be more expensive * Dont have the marketing power or financial resources as their competition * Not as many locations as competition Not as many flavours as other places like Baskin Robins (32 Flavours) * Not too convenient or those who want fast ice cream * Lots of Substitutes in Market Opportunities * Can start to sell their ice cream at Convenience and Grocery stores * Have a take home section, sort of like a drive through * Use Social Media to Advertise * Create more flavours * Increase number of locations * Expanding to other countries * Appealing to price sensitive customers Expand menu so that there are more products than just ice cream (Coffee or Hamburgers. Ex. Dairy Cream, McDonalds) * Focus on Catering because it can be a great asset if done well * Trent towards healthy eating gives fat-free yogurt gross revenue a boost * Children see ice cream as a treat, and encourage parents to choose an ice cream establishment as a family activity * The lucrative young adults (15-24) market are prepared to visit and ice cream establishment due to its social environment and low costThreats * Recession * different companies who want to become more involved with ice cream products * Brand Loyalty to other ice cream companies * Dominant Retailers can sell ice cream for a lot less * deep competition from other frozen dessert chains and grocers * Indirect competition from convenience and grocery stores * The dairy industry has a wide fluctuation rate, which directly affects goods prices * Canadians are concerned about the dip in the American economy. Other competitors such as Baskin Robins and Cold Stones have the financial resources to generate strong promotion, and can keep their prices on par with Marble Slab * Other competito rs have products similar to Marble Slabs mixins, such as Dairy Queens Blizzard or McDonalds McFlurry * Other food establishments have the service of supplying their products through grocers Problem and Issue Analysis The major issue is deciding the location, because all the expenses connect to promotion and pricing decision depend on the location.Some locations have different financing and leasing whereas others have target market issue. Every single decision to be made depends on the location where Thomas would like to start the business. Marketing Objectives Marble Slabs Marketing objectives are -To have a successful promotional plan for the grand possible action of the store and meeting the revenue goal of $400,000 in the first year. -To have promotional costs of $10,000 for the grand opening. -To have a 20% ROI on our catering events every year. Marketing StrategiesLocation is defined as the major problem as every single thing related for operations depends on location. Look ing over the census information for the locations, Oakville is the most suitable option, the reasons are as follows 1- Median household income is the highest for Oakville 2- There are considerable amount of target market in Oakville 3- Located near the lake, could be considered as picnic spot 4- There is little direct competition Purchasing power is the most important, because if the consumer has low disposable income then they wont have that curiosity to spend.Oakville has the highest median income. 13,245 young adults live in Oakville. Ample of target market are present in Oakville, Thomas should work on 80 20 rule, where 20% of consumer make 80% of the revenue. There is little direct competition this gives Thomas to act as the market leader in Oakville. There is some indirect competition from the grocery stores but that wont affect the sale to a major extent. Thomas has to introduce fat free ice cream, because most of the consumers are health conscious.To achieve the objectives Thomas has to try as punishing as possible to stay on the budget. There are a lot of expenses that come with the opening of a business. She must concentrate her time and money on the proper advertisement. I think one of her best bets in that situation would be to have a commercial on 104. 5 Chum FM during driving time because I believe that that will reach the most people. Also if she is to go into catering I believe that the best option for her to use is the portable slab option. It caters to the most people and the substantial Marble Slap experience to the customers