Marble Slab Case Analysis

EXECUTIVE SUMMARY Company marble Slab is a company that is famous for making fresh tone glass ointment. It dispenses its agiotage honoredness fruitcake s crowd out that is do daily with extraordinary toppings. The unique liaison ab verboten marble Slab is the customers ability to completely customize their methamphetamine hydrochloride ointment the way that they want to eat it. Instead of having a predetermined flavour, customers atomic number 18 able to mix their flavours of spyglass unguent that they please and put a numerous bill of toppings on them that include Bananas, Strawberries, Bread crumbs etc. They retrieve this Mixins. All of this is d ace on a giant fruitcake cutting marble slab. stain Slab wishes to give customers a unique experience with a prestigious brand of methamphetamine hydrochloride mosh. Marble Slab Creamery Inc. was founded in Houston, Texas in 1983. It was independently bear by franchisees across the United States until 2003 when Canadi ans were granted permission to check 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 daily operations of their locations. Marble Slab has nonplus one of the fastest growing right away serve eaterys with al close four hundred locations worldwide.Product Besides premium chicken feed cream that is made daily, Marble Slab akinly sells sundaes, milkshakes, ice cream cakes, nipping yogurt and to a greater extent(prenominal). Since the ice cream is made fresh at the location it slew last up to 30 days. Every location had an offering of 21 different flavours and an endless amount of mixins. And the hurts of the harvest- clock times were the homogeneous across any of the locations. Price The prices of Marble Slabs harvest-homes vary from as low as $4. 95 for an ice cream cone with 1 mixin to a Slab cake for $54. 95 and everything in between.They do subscribe to thing s that argon cheaper than the cone with 1 mixin such(prenominal) as brownies, apple pie slices, and even a charge for extra mixins, all of which be under $3. 00. Event ply for an event of at least 200 citizenry allow withdraw 2 employees at a cost of $12 per hour, as wellhead as the cost of supplies and the ice cream itself. Place There atomic number 18 approximately 400 Marble Slab locations worldwide. With many locations in study(ip) urban and suburban aras 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 pickup Toronto, Pattison Outdoor and on 104. 5 Chum FM. CURRENT MARKET environment MICRO ENVIRONMENT Indus pass judgment Trends The biggest trend in the ice cream industry as of right now is that approximately consumers ar geological fault over to a more premium and more expensive ice cream products. An example of this would be the M agnum bar that comes from chocolate imported from Belgium, which has twist very hot because of their merchandise campaign.Things such as TV Commercials and fame endorsements are the reasons for the success of that product. The commonplaceity of impulse ice cream has been decreasing steadily since 2007. The reason for this is that plurality are becoming more health moral sense and are not interested in that type of ice cream anymore. Organic ice creams are becoming very popular. good deal are interested in natural flavors with no artificial colours added. People like the act that these products are not genetically enhanced in any way because, as assignd before, people are more health conscious.Chocolate, Vanilla, and Strawberry flavours are appease the most popular flavours of ice cream. But this does not mean that consumers are not willing to try new flavours. New flavours are still being created because they are still successful. Competition Direct Cold Stone- Cold Stone is pretty very much an exact replica of Marble Slab. They offer a premium ice cream with complete customization. They even prepare it on a fixed 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 company 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 original flavours and their ice cream is known to be of good quality. A Baskin Robins can be found anywhere from malls to stand alone buildings. It has a large amount of financial resources and is priced similarly to Marble Slab. dairy Queen- dairy 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 but at a cheaper price. They also tar give out ch ildren with children friendly fare options. Indirect McDonalds- McDonalds is the biggest restaurant chain in the world. McDonalds has a sustenance chain in over 120 countries. They are primarily known for selling Hamburgers and fries but also reserve ice cream. The most famous of their ice cream meals being the McFlurry Milkshake. McDonalds is a power house and is unstoppable when it comes to promotion of their products.They excel in quick serve intellectual nourishment and are definitely 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 welcome the share-of-mind for that product. Starbucks- Starbucks is known for selling their premium coffee and tea products. Another thing that they do well is sell a comfortable environment. Its a good place for people to hang out and sociableize with friends and family. However they do not endure a very large menu and mainly specialize in customiz ed drinks.They also cause a niche market and do not cater to children. Convenience Stores- There is convenience and grocery stores everywhere that fix access to ice cream. Its quick and easy to hire ice cream at these places and they also wee-wee 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 tar contract market. Marble Slab is more prestigious and expensive. It also has more of a sit down restaurant feel to it.What Marble Slab has through better in terms of its arguing is * Greater share-of-mind than McDonalds * Caters to a bigger demographic than Starbucks, and Dairy Queen * sell an original product * Having an original mixins concept * Offering a unique experience with the food being prepared on a frozen marble slab What Marble Slab has done that is weaker than their controversy is * non 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 arguingConsumer 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 meshed in family activities- Looking for good quality ice cream. People who have their own disposable income -PT, FT, or summer employment -Health conscious-The primary food purchasers in the household. Do a lot of food lasts in and out of the house Behavioural -Those who enjoy ice cream as a treat and would go to Marble Slab to fulfill their need for ice cream -Looking for social interaction-Impulsive-Limited family obligation -Looking for nigh place fast and easy to get a snack -Impulsive Supplie rs & market Intermediaries They get their supply from dairy farmers. Dairy can be quite expensive in the off season. They get most of their fruits and vegetables from farms as well. Also products such as cheese get purchased from factories.All marble Slabs are individually owned so they all have their own means as to where they get their supply. It may vary middling 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 enchant an organizations decision making, and affect its performance and strategies. These factors include the frugal factors demographics profound, political and social conditions technological changes and natural forces.Technological Technology is another reflection of the environment a firm should consider in developing strategic plans. Changing technology may affect the demand for a firms products and services, its labor 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 move at an increasingly rapid rate. The technological aspects of Marble Slab include the technology utilised to create and produce 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 sweet taste of frozen desserts, but with less saturated fats and bear on sugars. Demographic Socio economical characteristics of a population 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 charm of the demographic factors associated with every member of a population.Income level of the cities w here doubting Thomas is looking to start the business 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. Economic 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 jounce of economic factors may also differ between industries.The economic downswing 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 polished risk for Marble Slab in particular because of their super premium ingredient, and luxury status. Another economical macro environmental factor is the ice cream industrys exponential beguile from the wide variance 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. societal/Cultural The sociocultural dimensions of the environment consist of customs, lifestyles, and values that characterize the rescript in which the firm operates. Socio-cultural components of the environment influence the ability of the firm to have got resources, make its goods and services, and function within the society. Sociocultural factors include anything within the context of society that has the potential to affect an organization.Population demographics, rising educational levels, norms and values, and attitudes toward social state are examples of sociocultural variables. One of the social aspects discussed in the Marble Slab character reference study is the rise of the healthy-eating trend. The increase d rate of obesity in marriage America is one of the leading 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 act. 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 all-important(a) political factors in the assessment of the macro environmental factors of Marble Slab lies within the Harmonized sales tax policy (HST) that has replaced the Provincial Sales tax revenue (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 like Marble Slab Creamery, because consumers will find a noticeable 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 classifiable element in the physical, cultural, demographic, economic, political, regulatory, or technological environment that affects the survival, operations, and growth of an organization. pass Weather in Canada can affect the business. People try to geld eating cold products in winter. SWOT ANALYSIS Strengths * Make unclouded Ice Cream Daily * High Quality Ingredients * Customizable Product 21 Flavour of Ice Cream * Fat Free * Greater share-of-mind than McDonalds * Caters to a bigger demographic th an 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 opposition * Not as many locations as rivalry Not as many flavours as other places like Baskin Robins (32 Flavours) * Not too well-to-do 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, fashion of like a drive through * Use Social Media to give notice (of) * 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) * Foc us on Catering because it can be a great asset if done well * Trent towards healthy eating gives fat-free yogurt sales a boost * Children see ice cream as a treat, and advertize parents to choose an ice cream establishment as a family activity * The lucrative young adults (15-24) market are inclined to visit and ice cream establishment due to its social environment and low costThreats * quoin * otherwise 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 * big 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 come back strong promotion, and can keep their prices on par with Marble Slab * Other competitors have products similar to Marble Slabs mixins, such as Dairy Queens Blizzard or McDonalds McFlurry * Other food establishments have the advantage of supplying their products through grocers Problem and Issue Analysis The major issue is deciding the location, because all the expenses related to promotion and pricing decision depend on the location.Some locations have different financing and leasing whereas others have take 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 gallant opening of the store and meeting the revenue goal of $400,000 in the offset printing 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 relate d for operations depends on location. Looking over the census information for the locations, Oakville is the most suited option, the reasons are as follows 1- Median household income is the highest for Oakville 2- There are immense 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 voteless 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 trump out bets in that situation would be to have a commercial on 104. 5 Chum FM during driving time because I swear 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 whole Marble Slap experience to the customers