Cold Stone Marketing

frigid pock Creamery trade Leroy Dowdy Walden University Dr. Bari Courts 30 family 2011 Abstract frigorific match Creamery operates approximately fourteen one C interposes worldwide. Their premium frost flail crossings mother kept them at the top of the sparkler thresh round industry. An audit of acold fossas selling approach revealed flaws in aras that are critical to organizations in todays marketplace. A firstborn person interview revealed shivery precious matchs lack of innovative engineering science and a failure to in bodied the recommendations of claim owners.Although cold-blooded rock n roll has been advantageful utilizing low-tech marketing, todays technology has the potential to change integrity their market advantage. snappy quarrys centralize control of marketing decisions has also created negative effects on topical anaesthetic anesthetic owners. The economic situation and the desire for guests to live a healthy life style may have c ontinued affects on the c completelyer-up. This student provided technology, market research, and stigmatization recommendations that could improve the companys market exploitation. Executive Summary dust-covered careen Creamery was founded in 1988 in Tempe Arizona and is owned and operated by Kahala L.L. C. ( mothy rock and roll, 2012). Since inception, their ism has been to provide superior ice bat to consumers. They went as far as trade marking their harvest-tides as Creations in order to brand a ingathering that is limited only by the consumers imagination. Mr. Toby Douglas, unwarmed play off Creamery licensee, fit outd to be interviewed to discuss parky Stones marketing strategies. Cold Stone franchisees operate over 1400 high-end ice cream stores worldwide (Cold Stone, 2012). Their superior ice cream is made daily in each individual store and only uses fresh gauge ingredients.Cold Stone systematic all in ally ranks high in guest satisfaction, company pers onality, and product quality (T. Douglas, private communications, kinsfolk 25, 2012). Conversely, their pricing is ranked low when compared to their competitors. Their marketing excogitation is non very robust considering todays technology venues. The invent consists of electronic and hard copy coupons, free in store proves, tv advertising, partnerships with novel(prenominal) business owners, and birthday clubs. The impending health care ameliorate coupled with more health conscious consumers has the potential to threaten Cold Stones future pull ins.Within the mandate, is a requirement for calorie see to be displayed on the menu by the end of 2013 (T. Douglas, personal communications, kinsfolk 25, 2012). Mr. Douglas was the first Cold Stone franchisee to introduce yoghourt in his product line. His store is located in a middle class suburb therefore, he should be in a position to continue to prosper under the new mandates. By continuing to collaborate with the franch isor on decision-making, collecting, and analyzing consumer habits, Mr. Douglas should reach continued growth in his node habitation. Marketing AuditMarketing has been plantd as fulfilling the needs and wants of a prospect while tarrying profitable passim the care for (Kotler & Keller, 2012). The role of marketing hind end non be over stated. Cold Stone has done an exemplary job increasing pauperization for a product that some would argue sales itself. Successful marketing compliments other business operations such as administration, accounting, and finance (Kotler & Keller, 2012). Cold Stones marketing research determined the target consumer to be women of age(p) 25-50 (T. Douglas, personal communication, family line 25, 2012).The background of their research is trademarked therefore, this student has no info to support or refute the findings. Given their success, one chiffonier conclude that Cold Stones comprehension of Kotler and Kellers (2012) pauperism states con cept is mature. Marketers must consider eight possible demand states 1. electronegative demand customers do not desire a product. 2. Nonexistent demand product is unknown to the consumer. 3. Latent demand current products cannot meet the consumers 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. Unwholesome demand desired products are not genially gratifying (p. 8). Economics The current economic situation has affected Cold Stone franchisees, save not to a detrimental level (T. Douglas, personal communications, family 25, 2012). ane of the largest economic influences to franchisees is the influx in the greet of loving cream.Sweet cream is the bases for Cold Stones made fresh daily ice cream. Corporate fees remain constant therefore, an increase in sweet cream cost solely affects the franchisee. Franchisees attempt to scratch line the cost with low cost marketing campaigns. For example, franchisees may finish offer $1 off coupons for the duration of the sweet cream increase (T. Douglas, personal communication, September 25, 2012). Technology Technological advances see to be passing by Cold Stone. Other that social networking, Cold Stone has not embraced a large portion of todays technology. Mr.Douglas is one of a small number of franchisees to have a look up screen cash register. Political Influences The Patient Protection and Affordable grapple Act (PPACA), commonly referred to as ObamaCare, requires chain restaurants with 20 or more outlets to display calorie tuition on menu boards prominently (CSPI, 2010). With consumers attempting to rail healthier, this mandate may affect Cold Stones bottom-line. Mr. Douglas attempt to get ahead of the implications posed by this mandate. In 2010, he became the first Cold Stone franchisee to offer a yogurt shut out.Cold Stone officially introduced yogurt to their lineup in 2012. Cultural Cold Stone consistently receives high ranking from consumers. Their product quality and reliability appeal to their patrons. One possible cultural threat to Cold Stones profit may be the desire for a healthier lifestyle. According to Griffin, Siegle, Lanpher, Khorramian, and Demirovic (2010), American consumers are making a conscientious effort to live healthier lifestyles. Task Environment Audit A struggling economy can have a debilitating effect on a companys success.The Small Business Administration (SBA) tracks the failure rate of companies that doctor 50 or more SBA loan disbursements (BlueMauMau, 2011). BlueMauMau (2011) reported Cold Stone was ranked 25th with a 37% failure rate for franchise owners between 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 result, vendors have to be more innovative to attract consumers. Cold Stones prices have always been higher than their competitors. The decline 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 way on demographics, specifically, the 25-50 year old female. The rationale for this segment remains a mystery, but reputation and product quality continue to receive a vote of confidence from consumers. The buying habits of this demographic continue to be examined and alter as appropriate. Competitors In gain to other ice cream providers, Cold Stone must compete 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, premium ingredients, and store location (Griffin et al, 2010). These str engths are contributing factors to their main weakness price. Although the majority of customers agree that Cold Stone pricing is an issue, they are not go awaying to put up their super premium Creations. Distribution and Dealers The need for fresh ingredients limits Cold Stone distribution options. They receive fresh ingredients daily via a local ground distributor. Increased fuel prices have forced their distributor to bestow a fuel fee for items delivered (T.Douglas, personal communication, September 25, 2012). Marketing info System Usage Marketing randomness systems (MIS) provides the necessary details about consumer purchasing habits (e. g. desires and preferences) in order to guide organizations success (Kotler & Keller, 2012). The MIS captures marketing managers requirement (actual, perceived, and what is affordable) during the process of identifying consumer information (Kotler & Keller, 2012). Examples of data captured by marketing managers include the following Regu larly made decisions requisite information for making decisions Any special studies requested Desired information that is not being received Periodicity of required information (i. e. daily) ask data analysis and reporting programs (p. 69) Cold Stone franchisees have little to no input into franchisor MIS selection or data input (T. Douglas, personal communication, September 25, 2012). This does not preclude them from creating their own system locally. The issue becomes convince the franchisor that their local data is useful to the corporeal process. Function Audit Cold Stones product objectives are straightforward.They proclaim, If it has anything to do with ice cream, it has everything to do with Cold Stone (Cold Stone, 2012). This simple yet bold statement is the coigne stone belief that propels the franchise to the forefront of the ice cream vending market. Cold Stones premium ice cream comes in three sizes Like it (5 oz. ), Love it (8 oz. ), and Gotta have it (12 oz. ) (Griffin et al, 2010). The addition of mix-ins such as Oreo pieces or M&Ms further increases the price however, Cold Stone believes its customers are willing to pay the additional premium to start out their Creation products.Integrated Marketing Communications Cold Stone uses various media outlets to result their marketing (T. Douglas, personal communication, September 28, 2012). Given that their current target audition is women aged 25-50, Cold Stone has created a commercial campaign that they get caters to demographic. Thirty-second advertisements run on television shows that attract the target demographic such as The View, Good Morning America, and Rachel Ray (T. Douglas, personal communication, September 28, 2012). Cold Stones research could not be canvas to determine the accuracy of the chosen programs.Consumers also have the option to sample any of the flavors upon entering a store. The sample sizes are controlled by use one-time use sample spoons. Their direct marketi ng efforts include mobile speech sound and Valpak coupons (Griffin et al, 2010). Based on sales numbers, one could conclude that they are in effect using promotion tools to increase customer awareness. Strategy Audit Cold Stones missionary station statement is concise and stated in market-oriented language (T. Douglas, personal communication, September 25, 2012). Their website highlights the first five words of their mission statement We will make people happy.Their commitment to customer rapture is seen immediately upon entering their store. Customers are met with a cheerful greeting and stock-still offer a song to any customer who shows their appreciation by way of offering a tip. When interviewing potential employees, Mr. Douglas try outs to find candidates with outgoing personalities who consider 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 bodily control of all marketing efforts.Individual franchisees use to plan and execute local marketing strategies independent of corporate however, that is no longer the case. The franchisee has input into the process, but the franchisor has ultimate authority over marketing decisions. Branding The objective of corporate branding is to create an image that is synonymous with an organizations address (Mankani, 2010). Cold Stones brand fair-mindedness or valuate 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 dependable brand. Recommendations Kotler and Kellers (2012) six-step marketing research process would serve as an gauzy starting point for Cold Stone marketers. Mr. Douglas was not aware of this pro cess and was eager to learn more about the concept. The first step is to define the problem. This student believes Cold Stones primary problem to be a lack of technology. Kotler and Keller (2012) suggest that technology is the essence of market capitalist economy (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 equip franchisees with touch screen registers. instantlys information travels at the speed of light and requires proactive marketing such as search engine optimization, social media campaigns, and consumer interest mining. Consumer interest mining analyzes the customers 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 produce the research plan. Cold Stone would need to develop a cost efficient research approach that includes qualitative, quant itative, or complex approach research methods. Thirdly, the information is collected. 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 speculate the New Coke blunder of the Coca Cola Corporation (IM CETYS, 2007).Fifthly, limn findings to the franchisor and franchisees. The franchisees have a vested interest in brand success. Finally, make decisions that will position Cold Stone to benefit from technology efforts that will solidify their competitive advantage in the ice cream market. In addition to adopting the marketing research process, Cold Stone could afford to make adjustments in their branding approach. Mankani (2010) outlines the following steps to consider when devising a corporate branding strategy. Branding strategi es should be driven from the top down.Without unity and snap from the executive level branding efforts may be disjointed and off the mark. Select a business pretence as the cornerstone for the branding strategy. A companys needs and values should dictate which model is chosen. Solicit input from those with a stake in the company (i. e. , customers, shareholders, and employees). Mr. Douglass success as the first franchisee to add a yogurt bar has not been without glitches. The yogurt distributor that he initially used was not maintained 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 produce 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 desirable yogurt however, Cold Stone refuses to attribute the decline in yogurt s ales to their proprietary yogurt (T. Douglas, personal communication, September 25, 2012). The franchisors response to Mr. Douglas fails to encourage employees to take ownership of the organizations 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 lasting customer relationships by providing the best product or service. A well-planned and executed 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). completion Cold Stones marketing efforts are calculated and centra lly executed (T. Douglas, personal communication, September 25, 2012). Although their current store inventory is not as numerous as the past, their product quality and business reputation continues to be superb among their consumers. Haag and Cummings (2008) noted that business intelligence enables an organization to make educated decisions based on compiled data.Although there is no yard of marketing information systems being utilized at the franchisee level, Cold Stone has an obvious grasp on demographic demand states. Cold Stones anemic technology model needs critical improvement. Todays technology offers Cold Stone innovative solutions that can solidify their competitive advantage in the ice cream industry. Finally, Cold Stones stance on franchisee feedback is cause for concern. Although the franchisor understands and interprets marketing research nationally, it makes reek that the franchisee understands their local consumers. In the case of Mr.Douglas, if Cold Stone made nutr ition for him to use the yogurt distributor preferred by his customer base this would result in a larger profit margin for all concerned parties. Customers will continue to crave Cold Stone Creations, but it remains to be seen whether Cold Stone can increase their customer base through more robust 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 Science in the general Interest. 2010). Health reform to deliver calorie counts to chain restaurant menus nationwide. Retrieved from http//cspinet. org/new/201003211. html Cold Stone Creamery. (2012). About us. Retrieved from http//www. coldstonecreamery. com/about/about_cold_stone. html Haag, S. , & Cummings, M. (2008). commission information systems for the information age (Laureate Education, Inc. , custom ed. ). Boston McGraw-Hill/Irwin. IM CETYS. (2007) . New deoxycytidine monophosphate A classic marketing research blunder?. Retrieved from http//imcetys. files. wordpress. com/2006/12/caso-newcoke. df Mankani, Y. (June 30, 2010). 8 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). enchiridion of global supply chain management. Thousand Oaks, CA Sage Publications Woods, D. (2011). How real-time marketing technology can transform your business. Retrieved from http//www. forbes. com/sites/ciocentral/2011/05/06/how-real-time-marketing-technology-can-transform-your-business/