Business Administration 1220E Lecture Notes - Marble Slab Creamery, Toronto Star, Starbucks

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Marble Slab Marketing Report
Jonathan Lister
250535379
November 30,
2009
Greg Smith
(002)
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Executive Summary
Marble Slab Creamery Inc. is an ice cream and frozen desert outlet, which
was founded in Texas in 1983, that is independently owned and operated by franchises
internationally. Through producing fresh ice cream in-store with premium ingredients,
Marble Slab targeted the high-end price and quality market.
With rights to a Marble Slab franchise, a goal of $400,000 revenue after the first
year of operation has been targeted. With a $10,000 promotional budget for the May
2008 Grand Opening; it is necessary to select the most effective advertising mediums
while maintaining Marble Slab’s image.
In order to achieve this goal an appropriate placement, pricing, product, and
promotional strategy should be planned. With a possible economic downturn for the
Canadian economy and seasonal fluctuations, this franchise should consider these
implications to avoid losing market share to direct and indirect competitors.
Through the analysis and calculations provided throughout this report, it is
evident that the following are the best suited marketing decisions for this particular
franchise:
Target Market: Families and Women
Location of Business: Oakville
Catering Options: Sundae Bar and Portable Slab
Promotional Campaign: Oakville Bus Ads, Toronto Star and Chum FM
Pricing: Price Brackets for each catering service for event ranges (see Exhibit 6)
These decisions have been made through the comparison of all the available
selections. Oakville was selected as the region with the highest median household
income, the largest proportion of families and women to the total population, the least
expensive leasing cost, as well as little direct competition. The Sundae Bar and Portable
Slab option were the most profitable and popular of the catering services. The selections
of the promotional campaign were found to be most appropriate given the target market
characteristics. Finally, the pricing strategy was found to encourage larger events to
reduce the cost per person as well as yield the most profitable margins, as Oakville is less
price sensitive area than the region served by the other Ontario franchise.
Overall the decisions made throughout this marketing report best suit the Marble
Slab image of premium quality while attempting to achieve the targeted revenue goal of
$400,000.
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Introduction
With rights to a Marble Slab franchise, the goal is to achieve a revenue of
$400,000 in the first year through selecting a target market with a corresponding product
offering, location, pricing strategy, and promotional campaign that best suits Marble
Slab’s premium brand. With a $10,000 promotional budget, effective methods of
advertising are needed to increase potential consumer awareness and traffic for the grand
opening. As a franchise, there are some constraints and restrictions with price setting;
however, there is considerable flexibility with other decisions such as location and
catering options. Other considerations or constraints include a shared national advertising
program, royalties, reduced financial risk, adopting company standards, and assistance in
financial areas.
Marble Slab Internal & External Analysis
Corporate Capabilities
Since it is a franchise of a well-established corporation, the business has support
and financial backing as well as cost advantages that occur from economies of scale.
These cost advantages include good supplier relations, a shared national advertising
program, and pre-designed advertisements. There is also reduced financial risk as a
franchise of a successful business concept, which is significantly growing in popularity.
Although there are royalties and programs that restrain the gross sales of the franchise,
the benefits of this profitable business outweigh these costs.
Marble Slab’s (MS) premium brand has been established on an international
scale. The $10,000 marketing budget is sufficient to effectively advertise the grand
opening through many affordable mediums of promotion. Customers who have already
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