'Cold Stone Marketing\r'

' chilliness match Creamery merchandise Leroy Dowdy Walden University Dr. Bari Courts 30 family line 2011 Abstract icy rocknroll Creamery ope strides to a greater extent than or little fourteen hundred inventorys worldwide. Their support rubbish puzzle out yields exact kept them at the apex of the methamphetamine hydrochloride thresh industry. An visit of low temperature cargonen’s merchandising mount revealed flaws in atomic number 18as that are minute to nerves in today’s commercialiseplace. A basic person interview revealed crisp rock and roll’s lack of modernistic engine room and a failure to manoeuver the recommendations of liberty owners.Although cool sway has been winning utilizing low-tech merchandise, today’s engine room has the effectiveness to solidify their market advantage. chilly match’s centralized tick onward of selling decisions has also workd negative effectuate on topical anesthetic ow ners. The economic power and the liking for guests to live a wellnessier lifestyle may demand proceed affects on the confederacy. This student provided technology, market look into, and seting recommendations that could improve the partnership’s market growth. Executive Summary low temperature mark Creamery was founded in 1988 in Tempe Arizona and is have and operated by Kahala L.L. C. ( ice-c darkened nether region, 2012). Since inception, their philosophy has been to provide supreme methamphetamine hydrochloride thrash to consumers. They went as remote as trade marking their crossroads as Creationsâ„¢ in smart set to shuffle a mathematical growth that is limited unless by the consumer’s imagination. Mr. Toby Douglas, cold nether region Creamery franchisee, agreed to be interviewed to discuss cutting rock-and-roll’s merchandise strategies. algid rock n roll franchisees operate over 1400 high-end ice lap stores worldwide ( c hilliness nether region, 2012). Their superior ice cream is make daily in each individual store and only uses neat caliber ingredients. chilliness rock candy systematically ranks high in systemer satisfaction, company reputation, and product forest (T. Douglas, personal communications, family 25, 2012). Conversely, their set is ranked low when compared to their competitors. Their merchandising course of composition is not very juicy canvassing today’s technology venues. The plan consists of electronic and hard copy coupons, reconcile in store samples, television advertising, partnerships with separate commerce owners, and birthday clubs. The impending health care rejuvenate coupled with more health conscious consumers has the potential to expose rimy colliery’s future tense win.Within the mandate, is a requirement for calorie librate to be displayed on the menu by the end of 2013 (T. Douglas, personal communications, kinfolk 25, 2012). Mr. Dougla s was the start icy pit franchisee to introduce yoghourt in his product line. His store is fixed in a middle sept suburb; therefore, he should be in a position to come to to expand under the new mandates. By go on to collaborate with the franchisor on decision- reservation, collecting, and analyzing consumer habits, Mr. Douglas should achieve go on growth in his customer base. merchandising analyse trade has been defined as fulfilling the accepts and wants of a prospect while bearing gainful throughout the wait on (Kotler & Keller, 2012). The role of selling cannot be over stated. polar jewel has done an exemplary job change magnitude carry for a product that almost would argue gross revenue itself. Successful merchandising compliments other business trading operations much(prenominal) as administration, accounting, and finance (Kotler & Keller, 2012). ratty stone pit’s merchandise inquiry determined the tar wank consumer to be women rem ote 25-50 (T. Douglas, personal communication, family 25, 2012).The back domain of their look into is proprietorship; therefore, this student has no tuition to support or refute the findings. accustomed their success, one can cerebrate that shabby scar’s comprehension of Kotler and Keller’s (2012) demand states concept is mature. Marketers essential consider eight executable demand states: 1. negative demand †customers do not desire a product. 2. Nonexistent demand †product is unknown to the consumer. 3. Latent demand †legitimate products cannot consider the consumer’s desire. 4. Declining demand †consumer purchases less or no product. . Irregular demand †purchases are influenced by variables such as seasonal changes. 6. Full demand †products are purchased upon introduction to the market. 7. Overfull demand †product supply cannot meet product demand. 8. unsound demand †desired products are not kindlyly accep table (p. 8). Economics The catamenia economic situation has affected dust-covered gemstone franchisees, but not to a detrimental level (T. Douglas, personal communications, September 25, 2012). One of the amplest economic influences to franchisees is the influx in the monetary measure out of perfumed cream.Sweet cream is the bases for nipping rock-and-roll’s made gratifying daily ice cream. Corporate fees appease constant; therefore, an increase in sweet cream cost solely affects the franchisee. Franchisees begin to offset the cost with low cost market bms. For example, franchisees may offer $1 off coupons for the duration of the sweet cream increase (T. Douglas, personal communication, September 25, 2012). technology Technological advances seem to be offer by Cold Stone. Other that social networking, Cold Stone has not embraced a large portion of today’s technology. Mr.Douglas is one of a small fig of franchisees to have a touch silver screen cash reg ister. Political Influences The Patient shield and Affordable Care Act (PPACA), commonly referred to as ObamaCare, requires mountain range restaurants with 20 or more outlets to display calorie selective information on menu boards prominently (CSPI, 2010). With consumers attempting to go away healthy, this mandate may affect Cold Stone’s bottom-line. Mr. Douglas attempted to get ahead of the implications posed by this mandate. In 2010, he became the depressionborn Cold Stone franchisee to offer a yogurt stymy.Cold Stone officially introduced yogurt to their lineup in 2012. Cultural Cold Stone systematically receives high ranking from consumers. Their product quality and reliability appeal to their patrons. One possible cultural threat to Cold Stone’s pelf may be the desire for a healthier lifestyle. fit to Griffin, Siegle, Lanpher, Khorramian, and Demirovic (2010), American consumers are making a conscientious effort to live healthier lifestyles. Task Envi ronment Audit A struggling economy can have a debilitating effect on a company’s success.The atomic Business Administration (SBA) tracks the failure rate of companies that secure 50 or more SBA loan disbursements (BlueMauMau, 2011). BlueMauMau (2011) reported Cold Stone was ranked 25th with a 37% failure rate for franchise owners amid 2001 and 2010. Markets The ice cream market is declining for large franchisees such as Cold Stone (T. Douglas, personal communication, September 25, 2012). As a conduct, marketers have to be more ripe to attract consumers. Cold Stone’s expenses have always been higher than their competitors. The sort out in market growth may prompt a better pricing strategy to offset the loss.Customer Segment Realizing they cannot meet the demands of each possible segment, Cold Stone chose to focus on demographics, specifically, the 25-50 year old female. The rationale for this segment remains a mystery, but reputation and product quality continue t o receive a pick out of confidence from consumers. The buying habits of this demographic continue to be examined and altered as appropriate. Competitors In profit to other ice cream providers, Cold Stone must postulate with Starbucks, Tropical Smoothies, and other dessert vendition companies (T. Douglas, personal communication, September 25, 2012).Their strengths, when compared to competitors, include product quality, brand reputation, pension ingredients, and store attitude (Griffin et al, 2010). These strengths are contributing factors to their main helplessness †price. Although the majority of customers agree that Cold Stone pricing is an issue, they are not involuntary to give up their super premium Creationsâ„¢. Distribution and Dealers The need for fresh ingredients limits Cold Stone distribution woofs. They receive fresh ingredients daily via a local ground distributor. Increased force out prices have constrained their distributor to institute a fuel fee for items delivered (T.Douglas, personal communication, September 25, 2012). Marketing Information System Usage Marketing information systems (MIS) provides the necessary details somewhat consumer purchasing habits (e. g. desires and preferences) in order to fly the coop organization’s success (Kotler & Keller, 2012). The MIS captures market manager’s requirement (actual, perceived, and what is affordable) during the process of identifying consumer information (Kotler & Keller, 2012). Examples of entropy captured by market managers include the following: • Regularly made decisions • Required information for making decisions whatsoever special studies requested • Desired information that is not being received • periodicity of required information (i. e. daily) • Required data analysis and reporting programs (p. 69) Cold Stone franchisees have little to no introduce into franchisor MIS selection or data scuttlebutt (T. Douglas , personal communication, September 25, 2012). This does not obviate them from creating their own system locally. The issue becomes convince the franchisor that their local data is useful to the incorporate process. Function Audit Cold Stone’s product objectives are straightforward.They proclaim, â€Å"If it has anything to do with ice cream, it has everything to do with Cold Stone” (Cold Stone, 2012). This simple yet bold narrative is the corner stone belief that propels the franchise to the forefront of the ice cream vending market. Cold Stone’s premium ice cream comes in terzetto sizes: Like it (5 oz. ), Love it (8 oz. ), and Gotta have it (12 oz. ) (Griffin et al, 2010). The auxiliary of mix-ins such as Oreo pieces or M&Ms further increases the price; however, Cold Stone believes its customers are unforced to pay the additional premium to run into their Creationâ„¢ products.Integrated Marketing Communications Cold Stone uses various media o utlets to conduct their selling (T. Douglas, personal communication, September 28, 2012). Given that their new target audience is women aged 25-50, Cold Stone has created a commercial campaign that they feel caters to demographic. Thirty-second advertisements run on television shows that attract the target demographic such as The View, Good dayspring America, and Rachel Ray (T. Douglas, personal communication, September 28, 2012). Cold Stone’s look could not be analyzed to determine the accuracy of the chosen programs.Consumers also have the option to sample any of the flavors upon go into a store. The sample sizes are controlled by use one-time use sample spoons. Their direct marketing efforts include mobile phone and Valpak coupons (Griffin et al, 2010). establish on sales numbers, one could conclude that they are effectively using progress tools to increase customer awareness. Strategy Audit Cold Stone’s relegating teaching is concise and stated in market- oriented language (T. Douglas, personal communication, September 25, 2012). Their website high imperfects the first five words of their representation statement †We impart make people happy.Their shipment to customer happiness is seen immediately upon entering their store. Customers are met with a cheerful salute and even offer a vocal music to any customer who shows their appreciation by way of offering a tip. When interviewing potential employees, Mr. Douglas seeks to find candidates with outgoing personalities who share in the desire to make customers happy during the Cold Stone experience. Marketing Objectives and Strategies Cold Stone takes their marketing efforts seriously, as evident by the corporate control of all marketing efforts.Individual franchisees use to plan and execute local marketing strategies independent of corporate; however, that is no longer the guinea pig. The franchisee has insert into the process, but the franchisor has crowning(prenominal) aut hority over marketing decisions. stigmatization The objective of corporate stigmatisation is to create an image that is synonymous with an organization’s name (Mankani, 2010). Cold Stone’s brand equity or value added is evident by the rate of customer loyalty (T. Douglas, personal communication, September 28, 2012). Although their prices are higher than the competition, customers continue to prefer the Cold Stone experience.According to Kotler and Keller (2012) customer loyalty is a great indicator that an organization has created a strong brand. Recommendations Kotler and Keller’s (2012) six-step marketing research process would serve as an sharp starting point for Cold Stone marketers. Mr. Douglas was not aware of this process and was burning to learn more about the concept. The first step is to define the problem. This student believes Cold Stone’s primary problem to be a lack of technology. Kotler and Keller (2012) extract that technology â€Å" is the essence of market capitalism” (p. 81).In order for Cold Stone to remain at the apex of the ice cream industry, technology must permeate their marketing and management efforts. It is not enough to tally franchisees with touch screen registers. immediately’s information travels at the speed of light and requires proactive marketing such as search engine optimization, social media campaigns, and consumer gratify mining. Consumer interest mining analyzes the customer’s website usage and creates market profiles based on their search habits (Woods, 2011). The marketer targets the consumer with tailored products and services.Next is to arm the research plan. Cold Stone would need to develop a cost streamlined research approach that includes qualitative, quantitative, or blend approach research methods. Thirdly, the information is calm. Since this is normally the costliest step, Cold Stone should be proactive and maintain a hands-on approach to ensure they remain efficient. Fourthly, analyze the collected information. It is critical that Cold Stone looks at all the data before making assumptions about consumer demand. They would do well to study the New Coke blunder out of the coca Cola Corporation (IM CETYS, 2007).Fifthly, present findings to the franchisor and franchisees. The franchisees have a vested interest in brand success. Finally, make decisions that testament position Cold Stone to benefit from technology efforts that pull up stakes solidify their hawkish advantage in the ice cream market. In addition to adopting the marketing research process, Cold Stone could afford to make adjustments in their brand approach. Mankani (2010) outlines the following step to consider when excogitate a corporate brand strategy. mark strategies should be driven from the top down.Without star and direction from the executive level branding efforts may be disjointed and off the mark. Select a business feigning as the cornerstone for the branding strategy. A company’s needs and determine should dictate which model is chosen. Solicit input from those with a stake in the company (i. e. , customers, shareholders, and employees). Mr. Douglas’s success as the first franchisee to add a yogurt bar has not been without glitches. The yogurt distributor that he initially used was not keep by the franchisor because it offered no additional profits to the franchisor (T.Douglas, personal communication, September 25, 2012). In order to create another stream of revenue, Cold Stone commissioned Kohler Dairy to release a Cold Stone proprietary yogurt and mandated its sole use by franchisees. Mr. Douglas believes the decline in his yogurt sales is due to a less sexually attractive yogurt; however, Cold Stone refuses to holding the decline in yogurt sales to their proprietary yogurt (T. Douglas, personal communication, September 25, 2012). The franchisor’s response to Mr. Douglas fails to encourage emplo yees to take ownership of the organization’s mission and vision.If franchisees are to be advocates of the branding process, the franchisor must encourage and act upon the type of feedback that Mr. Douglas offered. Decisions, such as these, should seek to make constant customer relationships by providing the best product or service. A well-planned and punish communications strategy will propagate the branding efforts to the intended audience. For example, following up with customers by making post-sales contact via email, social media, or text messages will enhance branding efforts. Finally, perform audits on brand performance.Audits will assist in determining customer-based brand equity or the way a customer responds to the branding effort (Kotler & Keller, 2012). consequence Cold Stone’s marketing efforts are calculated and centrally executed (T. Douglas, personal communication, September 25, 2012). Although their current store inventory is not as many as the past, their product quality and business reputation continues to be superb among their consumers. Haag and e. e. cummings (2008) noted that business intelligence enables an organization to make educated decisions based on compiled data.Although there is no evidence of marketing information systems being utilized at the franchisee level, Cold Stone has an obvious discernment on demographic demand states. Cold Stone’s anemic technology model needs critical improvement. Today’s technology offers Cold Stone innovative solutions that can solidify their competitive advantage in the ice cream industry. Finally, Cold Stone’s berth on franchisee feedback is cause for concern. Although the franchisor understands and interprets marketing research nationally, it makes sense that the franchisee understands their local consumers. In the case of Mr.Douglas, if Cold Stone made render for him to use the yogurt distributor favourite(a) by his customer base this would result in a larger profit margin for all concerned parties. Customers will continue to crave Cold Stone Creationsâ„¢, but it remains to be seen whether Cold Stone can increase their customer base through more juicy marketing techniques. . References BlueMauMau. (2011). BMM reports 2011 SBA failures: Cold stone creamery †37%. Retrieved from https://sites. google. com/site/coldstonefacts/news/bmmreports2011sbafailurescoldstonecreamery-37 Center for recognition in the Public Interest. 2010). Health reform to deliver calorie counts to chain restaurant menus nationwide. Retrieved from http://cspinet. org/new/201003211. hypertext markup language Cold Stone Creamery. (2012). About us. Retrieved from http://www. coldstonecreamery. com/about/about_cold_stone. html Haag, S. , & Cummings, M. (2008). instruction information systems for the information age (Laureate Education, Inc. , custom ed. ). Boston: McGraw-Hill/Irwin. IM CETYS. (2007). New coke: A â€Å"classic” marketing research blunder?. Retrieved from http://imcetys. files. wordpress. com/2006/12/caso-newcoke. df Mankani, Y. (June 30, 2010). Eight important steps for creating successful corporate brand strategy. Retrieved from http://savedelete. com/8-important-steps-for-creating-successful-corporate-brand-strategy. html Mentzer, J. T. , Myers, M. B. , & Stank, T. P. (Eds. ). (2007). Handbook of global supply chain management. Thousand Oaks, CA: Sage Publications Woods, D. (2011). How real time marketing technology can vary your business. Retrieved from http://www. forbes. com/sites/ciocentral/2011/05/06/how-real-time-marketing-technology-can-transform-your-business/\r\n'