Diego Arreola Venture Strategy Day 1

5
Kakigori in Mexico

Transcript of Diego Arreola Venture Strategy Day 1

Kakigori in Mexico

Why Kakigori?• There is a long tradition of shaved ice

deserts in Mexico, but these are mainly focused on cheap “snow-cone” style offerings from street vendors.

• The constant warm climate in Mexico would make for a year-round product.

• Wide offering of Kakigori machines from Japan and a large supply of cheap high-quality ingredients makes for a simple but novel product that offers large margins.

• Simple set-up, preparation costs, and equipment acquisition assure that Kakigori stations can be easily scalable to any market and location.

New Entrants:Entry Barrier Low

High Imitation Rate

Suppliers:Fresh Fruit Vendors

Specialized Equipment

Buyers:Price Sensitive

Product Novelty

Competition:Local Products

Traditional Vendors

$472,500. Net Profit $284,157

2016

$1,102,500. Net Profit $663,033

2017

$157,500. Net Profit $94,719

2018

Kakigori KSF

Product Novelty

Targeted Marketing

First Mover Advantage