Dippin’ DotsTEAM DOTS:

Martha HubacherNick 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 industryHealth craze- offer fat free, low fat, sugar

free ice creamAffordable 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

FamiliesStudents

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 feetRent= $900 monthUniversity enrollment=Just under 10,000Residential Population= Around 16,000

Advantages of Radford Location

Cheap rentClose to campusHigh traffic area Easily accessible and visibleLittle competition

Blacksburg Location

Size=750 square feetTech hosts more than 25,000 full time

students

Advantages of Blacksburg Location

Located in the heart of downtownA lot of vehicular and pedestrian trafficLarge population baseLocated around other businesses

Disadvantages of Blacksburg Location

High degree of competitionMore than 4 direct competitors in the area

Christiansburg Location

Replace New River CoffeeSize=150 square feetCost=Can be as much as $36 per square

footTotal Mall Square footage=428,155

Disadvantages With Mall Location

CompetitionLack 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