Dippin

1
Dippin Dots

• TEAM DOTS
• Martha Hubacher
• Nick Bernard
• Andrianne Kelly
• Christina Pappas
• Katie Wilson

2
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

3
Background Information Cont.

• In 2005 listed on Entrepreneur Magazines
  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

4
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

5
Customer Trends

• Ice cream is a 20 billion-plus industry
• Health craze- offer fat free, low fat, sugar free
  ice cream
• Affordable treat

6
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

7
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

8
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

9
Competition

• General Competition
• CoolBrands International, Inc
• Dunkin Brands, Inc
• Mrs. Fields
• Local Competition
• Direct
• Indirect

10
Target Market

• Families
• Students
• 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.

11
Possible Alternative Sites

• 1)12 Tyler Avenue Radford, VA
• 2)109 College Avenue Blacksburg, VA
• 3)New River Valley Mall Christiansburg VA

12
Radford Location

• Size 2600 square feet
• Rent 900 month
• University enrollmentJust under 10,000
• Residential Population Around 16,000

13
Advantages of Radford Location

• Cheap rent
• Close to campus
• High traffic area
• Easily accessible and visible
• Little competition

14
Blacksburg Location

• Size750 square feet
• Tech hosts more than 25,000 full time students

15
Advantages of Blacksburg Location

• Located in the heart of downtown
• A lot of vehicular and pedestrian traffic
• Large population base
• Located around other businesses

16
Disadvantages of Blacksburg Location

• High degree of competition
• More than 4 direct competitors in the area

17
Christiansburg Location

• Replace New River Coffee
• Size150 square feet
• CostCan be as much as 36 per square foot
• Total Mall Square footage428,155

18
Disadvantages With Mall Location

• Competition
• Lack of customers that the mall attracts

19
Actual Location

• RADFORD

20
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

21
Recommendation

• Go through as planned and open Dippin Dots at
  212 Tyler Avenue in Radford Virginia