Dippin’ Dots TEAM DOTS: Martha Hubacher Nick Bernard Andrianne Kelly Christina Pappas Katie Wilson
Background Information • Dippin’ Dots Inc. established in 1988 in Grand Chain, Illinois • Today has 622 US Locations in 46 States and 1 in Canada • Dippin’ Dots are sold in • Amusement/Theme/Water Parks • Sports Venues • Fairs and Festivals • Carnivals
Background Information Cont. • In 2005 listed on Entrepreneur Magazine’s “Franchise 500” List • Franchise Fee of $12,500 • Training Programs • On-site instruction • Videos and Operational Manuals • Nationwide team of Customer Service Representatives • Marketing Materials • Consultations • Public Relations Services
Product Description • “Ice Cream of the Future” • unique • Frozen dessert shape of tiny beads or dots • Microbiologist and company founder, Curt Jones • 21 flavors from a wide variety of ice cream, yogurt, sherbet, flavored ice, seasonal favorites: Candy Cane, Chocolate Covered Cherry • Floats, shakes and sundaes • Solar Freeze Parfait • Growing by offering soft drinks, gift certificates, logo merchandise, and take-home party packs • New items include Dot Delicacies Desserts: Dotwich, Dippin Stix
Customer Trends • Ice cream is a $20 billion-plus industry • Health craze- offer fat free, low fat, sugar free ice cream • Affordable treat
Situational Analysis • Strengths • The company has his roots in many markets • Dippin’ Dots has the ability to expand product offering • They have strong product differentiation • The company is among the highest ranked franchise companies in the USA • Dippin’ Dots maintains products that have the “seal of approval” of the USDA, FDA, and HAACP • The company has had a strong presence in the media • Strong support and training is offered to new franchise locations and employees to aid in success • Dippin’ Dots is represented by Snell & Wilmer
Situational Analysis • Weaknesses • Dippin’ Dots is not currently making it a priority to target the intended area for the franchise • Consumer reluctance to trying new and different food products • Limited brand awareness within the New River Valley • Dippin’ Dots has been previously considered and looked upon as “entertainment” rather than a typical food for consumption • Opportunities • Currently, no other Dippin’ Dots locations exist in the NRV • Utilizing a location in close proximity to other retailers ensures traffic is generated by other retail establishments
Situational Analysis • Threats • Dippin’ Dots are not sold in grocery stores • Economic conditions of consumers in the surrounding area • Dippin’ Dots will face local competition from other well-known companies that have similar offerings • The structure of a kiosk format
Competition • General Competition • CoolBrands International, Inc • Dunkin’ Brands, Inc • Mrs. Fields • Local Competition • Direct • Indirect
Target Market • Families • Students Needs of our target market in the NRV lead to many outdoorsy, sporty, fun-filled and health awareness lifestyles. The most popular age groups were between 21-35 years old. Throughout the NRV there has been a steady growth rate.
Possible Alternative Sites 1)12 Tyler Avenue Radford, VA 2)109 College Avenue Blacksburg, VA 3)New River Valley Mall Christiansburg VA
Radford Location • Size= 2600 square feet • Rent= $900 month • University enrollment=Just under 10,000 • Residential Population= Around 16,000
Advantages of Radford Location • Cheap rent • Close to campus • High traffic area • Easily accessible and visible • Little competition
Blacksburg Location • Size=750 square feet • Tech hosts more than 25,000 full time students
Advantages of Blacksburg Location • Located in the heart of downtown • A lot of vehicular and pedestrian traffic • Large population base • Located around other businesses
Disadvantages of Blacksburg Location • High degree of competition • More than 4 direct competitors in the area
Christiansburg Location • Replace New River Coffee • Size=150 square feet • Cost=Can be as much as $36 per square foot • Total Mall Square footage=428,155
Disadvantages With Mall Location • Competition • Lack of customers that the mall attracts
Actual Location • RADFORD
Marketing Strategy • Pass out 8.5 x 11 size Flyers • 10,000 to college students • 5,000 to each of the 4,755 family homes that are living within a 4 mile radius • Total Cost = $2,750 (with next day shipping) • Quote is from EverydayPrint.com
Recommendation • Go through as planned and open Dippin’ Dots at 212 Tyler Avenue in Radford Virginia
