2009 Marketing Report - Grade Received 81% Marble Slab Marketing Report - Grade Received 81% (I will post the TA comments soon)

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Department
Business Administration
Course
Business Administration 1220E
Professor
Greg Smith
Semester
Fall

Description
Marble Slab Marketing Report Jonathan Lister 250535379 November 30, 2009 Greg Smith (002 ) 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 Slabs 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. 1 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 Slabs 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 Slabs (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 2
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