Service introduction
HI GUYS: so just to clarify the parlor is going to be a benihana-style service // customers come in and sit at “cold bars” and there is an ice cream chef that will prepare their desserts right in front of them and serve it really pretty or do cool tricks while they make it. so i think it’ll be easier to make a menu with just a list of cool ice cream names and stuff so when customers pick of the list the chefs make them
MENU:
“Bacon on the Boardwalk” → bacon bits / vanilla ice cream / maple syrup
“Blueberry Pie” → blueberry cream cheese ice cream / graham cracker topping
“Cof-scotti” → coffee ice cream / almonds / chocolate biscotti
“Pirates Treasure Chest” → strawberry ice cream / gummy bears / white chocolate chips / caramel / pretzels
“S-s-salmon Sundae” → salmon mousse / white chocolate drizzle / mint leaf
“”Choco Tsunami” → chocolate ice cream / dark chocolate squares / chocolate chips / mocha drizzle
“Honey I’m Home” → honey ice cream / pecans / chocolate drizzle / cherry on top
“Sunrise” → mango ice cream / coconut flakes / strawberry drizzle / cherry on top
“It’s Poppin’” → toffeenut ice cream / popcorn / caramel
“Kitty Kitty Bang Bang” → strawberry ice cream / crushed oreos / choco chunks
“Seaweed Surprise” → green tea ice cream / seaweed wrapped around / dark chocolate shavings
Basics (w/o toppings)
Coke/soda flavor
strawberries and cream
arroz con leche
Tequila
Horchata
Sangria
Combinations
Bacon and waffles- bacon bits/waffle cone
All American – Strawberries, blueberries, Vanilla ice cream
Dragon’s Breath- Hot Tamales Cinnamon Candy, Lucas Salsaghetti
Cool for the summer- watermelon
101 dalmation- vanilla ice cream, oreo, chocolate chip,
Winnie the Pooh- honey, bee pollen, Honeycomb
Write FirstOrganization: Your group project should be organized professionally with an executive summary in the beginning and main contents organized into sections, with clearly identified and supported main ideas, presented in separate paragraphs. You are expected to use the business language and terminology you are learning in this class, as opposed to casual language. Correct use of grammar and spelling is a must. Graphs, charts, tables, and visuals are usually helpful. They may or may not be put at the end as appendices; however, they do not count toward the total page limit. They should be clearly named and numbered (i.e., Exhibit 1, 2, etc.) and you should refer to them in the body of the report.
EXECUTIVE SUMMARY – Required
• A one- to two-page, brief summary of all the main parts and key points of your report. The executive summary should not focus on a single aspect of the product extension or serve as an introduction. Instead, it should be a concise, insightful overview of your product extension proposal, and should allow the reader to quickly grasp the essence of your proposal, even if he/she does not read the whole report. The executive summary should be written last since it summarizes your insights and recommendations.
• A good online resource on how to write an executive summary, including some examples, is: www.bplans.com/dp/executivesummary.cfm
Second Product/ Service Extension ( 5 points)
Describe the product in detail – physical characteristics, functionality features, benefits ( 1 point)
How did your company become aware of a demand for this? ( 1 point)
Describe how the product will meet customer demand and what kind of consumer needs it will address ( 1 point)
Communicate how the product fits into the company’s product mix ( 1 point)
What are the unique contributions of the extension to the mix. (1 point)
• Describe the product in detail – physical characteristics, functionality features, benefits
• How did your company become aware of a demand for this?
• Describe how the product will meet customer demand and what kind of consumer needs it will address
• Communicate how the product fits into the company’s product mix and what are the unique contributions of the extension to the mix.
Third FINANCIAL STRATEGY 10 pts
Prepare draft budget for the 1st year of introduction of the extension. This requires a Balance sheet and cash flow statement. （3 points）
Balance sheet: 1.5 points
(1) Provide me with the balance sheet. (0.5 point)
(2) Show me the formula (0.5 point)
Assets = Liabilities + Stockholders’ Equity (A=L+SE)
(3) Based on the balance sheet, make a calculation of A =L+SE( 0.5 point)
Cash flow statement:
Provide me with the cash flow statement and make sure the numbers are realistic (1.5 points)
Estimate the capital requirements to bring the extension to market and discuss how you plan to finance the capital needs.( 2 points)
Calculate the current ratio, and debt-to-equity ratio of your company to determine its capacity to fund your product (3 points)
Estimate the potential return on investment (ROI) from the introduction of your product extension in 1, 3 or 5 years.( 2 points)
• Prepare draft budget for the 1st year of introduction of the extension. This requires a Balance sheet and cash flow statement.
• Estimate the capital requirements to bring the extension to market and discuss how you plan to finance the capital needs
• Calculate the current ratio, and debt-to-equity ratio of your company to determine its capacity to fund your product idea -> look in book for formulas.
Estimate the potential return on investment (ROI) from the introduction of your product extension in 1, 3 or 5 years
Below: other part already finished.
III. Strategic Analysis
Ice cream places are everywhere. You may see a different ice cream place around the corner. What’s special about us is that we have ice cream chefs. Popular ice cream places like Cold Stone and Honeymee both have specialties that distinguish them from other companies in the same industry. Cold Stone is special for their full mixture of different flavored ice cream and toppings; with only four different ice cream choices, Honeymee is special for its unique taste of honey. For our company, our specialty is shown in our serving style and the flavors. It is shown that there is a demand for strange flavors in today’s market as Jelly Bean is getting more popular. There is always demand for ice creams. Therefore, the innovation in ice cream industry will create a large difference.
Strength: We have a combination of specialties. Trying strange flavors becomes a trend that everyone likes. Now that our society is open and developing, strangeness and weirdness becomes a way of proving our existence in this age. Therefore, people will definitely try novel things at least once.
Weakness: Although most people would like to try new things, some may not like it. Many will only try it once for the taste and return back to the basic. If our flavors were too strange to an extent that it has very little acceptance, it would be hard for us to gain returning customers.
Opportunities: Even if there is only little acceptance of our strange flavors, we also have basic flavors and the way we serve our ice creams can be our other way to advertise.
Threats: It is possible that we cannot gain back our investment. Our idea needs a lot of capital investment, but if customers cannot accept our product, it will be hard for us to maintain business in his industry.
Our position in the market separates us from the others. We are special just because we are different. People will come for our specialty. However, we will need a lot of human and capital investment and that may cause problem if we are not able to obtain enough customers.
V. Production Strategy
The row materials we need are simple and easy to get. Chefs will take the order of customers in certain table and prepare the toppings customers need before they go to the tables. Our chefs will do tricks to impress customers. We will use the best materials to produce our basics. For example, we will use real milk, fruits, and other ingredients instead of artificial flavors to have the best taste and quality. We will not be using outside sources since we need the best quality. We will first have to develop our own secret recipes that have unique taste which do not conflict with our topping and special flavors. The most important file we need is food certification and we will import materials with the best quality.
MANAGEMENT STRATEGY
Mission Statement: Since ice cream is such a popular dessert, our mission is to expand past a typical ice cream parlor and give people a fun environment to enjoy unique flavors offered by only our store. There are many ice cream parlors that offer the typical, everyday flavors but we want to reach out to the people looking to try something different, but still flavorful. In doing this, we can potentially attract attention from people everywhere that will know our location is the only place to get this unique experience.
Vision: Our goal is to make sure our ice cream parlor is established with a strong basis that can attract customers, even if that means taking time to expand and publicizing. As of right now we do not want to expand so we can have our one store by the beach and observe, and monitor it, for success. If the store is successful, we can look into expanding to other sea-side locations.
Culture: providing our services to customers and offering a unique ice cream parlor experience by using delicious, high quality flavors combined with an enjoyable atmosphere.
—> Our first parlor is going to be in Laguna Beach, CA
—> We chose this location since people going to the beach are more likely to crave ice cream on their hot day
—> Also since Laguna Beach has other upscale restaurants, the parlor’s unique flavors will draw in that group of people (once word gets out and our products are publicized through word-of-mouth and social media, expansion will be more doable)
Management Positions:
Investors — provide finances needed to start and input on your initial investments to the owners
Owner — in charge of the whole parlor including: operations, financial, and any other responsibilities that go along with the business
Manager — oversees the specific place they are assigned to including making work schedules for all employees
Ice Cream “Chef” — prepare the ice cream at the tables of guests who come in; perform tricks to keep them entertained and present their desserts in a unique, exciting way
Host/Hostess — seat customers upon arrival; ring up customers when they are finished. They also provide customers with any other necessities they need including: utensils, napkins, drinks, etc.
Busboys — clean the tables and the parlor as customers leave and at the end of the night
(ATTACHMENT 4)
Management Hierarchy:
Organization Strategy
• Company history – Introduce the company you are analyzing, briefly discuss how it was initially formed and any major changes in its development (i.e. when it was incorporated, became international, any mergers or acquisitions, or any other significant organizational /business changes it went through)
• Market/Industry – Describe the industry your company is in and the current market trends in it (e.g. if your company is a bank, you should discuss the latest important developments in the banking/finance industry).
• What is the organizational structure? How will the product extension impact the organizational structure? Will new organizational units and additional workforce be necessary?
• What employee motivational strategies and rewards systems will be used in the production of the extension? How about deterrence for misbehavior?
Company History
Freeze, is an independently owned ice cream shop that was founded by six friends who (wanted a totally different ice cream shop experience) saw that there was a lack of entertaining and interactive ice cream parlors. The shop is located in Laguna Beach, CA and is open year-round for guests of all ages. Freeze not only provides unique flavors of ice cream, but it also entertains its customers with a show while it’s ice cream “chefs” prepare it right at the customers’ tables. This unique service will draw in customers who can enjoy watching as our chefs flip, toss, and mold their custom flavors to their liking. Our business has flavors that no other has to offer, a compilation sure to satisfy every customer’s sweet tooth. Customers from everywhere will want to travel to the shores of Laguna Beach to be part of this ice cream experience.
Market/Industry
Freeze, will be the first ice cream shop to provide ice cream made using professional chefs to entertain guests in the US market. Because of this, the shop is not expected to have a big competition since Freeze would the only shop in the US to provide this unique service. However, the shop will compete with big reputable chains such as Cold Stone Creamery, Häagen-Dazs, and Ben and Jerry’s as far as flavors, but our business has the advantage because we provide the entertainment factor, a service that no other ice cream business has.
Organizational Structure
Customers will have the option to either be seated to have their ice cream created right at their tables or to use the express line to grab some ice cream and leave. Freeze will hire ice cream chefs and they will undergo intensive training to learn the tricks that will be used for customer entertainment. Also, the shop will hire managers that will take inventory and also oversee all activities to make sure that things are running smoothly. Additional employees such as hosts/hostesses and busboys will also need to be hired.
Employee Motivational Strategies and Rewards System
Our business will provide a reward system that will encourage employees to work hard and be happy within the work environment. Some of the incentives include employee of the month and an all expenses paid lunch with the boss. Also, employees are more likely to be more happy in their jobs if they feel as if they matter and that they have a say in how the shop operates. Therefore, Freeze will encourage an interactive environment by holding monthly meetings where employees will be able to voice their opinions and also get to pitch in ideas on how to improve the business. Also, employees who do not follow the rules and fail to complete their tasks will at first receive a warning. If the employee violates the rules a second time, the employee will need to attend a mandatory meeting with the boss to discuss the employee’s actions. If there is a third violation, the employee will be suspended or fired depending on the seriousness of the offense.
Marketing Strategy
Product:
Our company provides a wide range of special flavored and customizable ice cream for customers to choose from. Trained chefs will create your order in front of you with cool tricks. We are aiming for customers who are seaside vacationers who want to enjoy some ice cream while watching a small show to cool themselves down as well as enhance their memories at the beach.
Pricing:
According to our research of many ice cream parlors, the average price of a cup of ice cream with toppings is around five dollars. However, we are likely to cost more due to the expertise of our ice cream chefs and our location by the sea. To control the price of ice cream, we are offering two sizes for all kinds of ice cream on our menu. The small size will be priced at $4.75 each, and the medium size will be priced at $5.50 each. And for each basic topping, 25 cents will be added; 50 cents will be added for each combination topping.
Place:
We will start “Freeze” at Laguna Beach in California. It is a good place to start from because California is located on the west coast and the weather is sunny for most of the year. So people are more likely to go to the beach on vacations. Laguna Beach is by a local population, and is also one of the most famous attractions in California. People come from all over the world to feel its’ beautiful seaside and artistic towns, which will provide business opportunities for us.
Promotion
We are a new ice cream brand providing new and creative ice cream flavors. So in order to let customers accept us, we will be giving out testers from the start and throughout the business. We will offer cool “Freeze” gift cards that customers can recharge any amount they want and give them to their friends and relatives as gifts. We will also keep a membership with a rewards card and send emails to them occasionally to get connected, and let them know about our new flavors and promotions. Finally, we will create a website with an inspiration and a description of each flavor and our brand story to let more people know about us.
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