1.1 Sales Industry / Trends
In the United States frozen dessert market there are two main channels in terms of sales industry which are retail and foodservice. The retail market focuses sales of frozen goods through grocery, convenience and specialty and discount stores while the foodservice market includes sales from scoop shops, vending machine and restaurant. In 2009, it was estimated that the U.S ice cream and others related dessert market reached 24.6 billion dollars, a 1.5% increase from 2006 while in the same period, nearly 60 % of all U.S. frozen dessert sales were made through foodservice( (Markets and opportunities in retails and foodservice, 6th ediition, 2010). The foodservice market has been struggled with hard times due to the ongoing recession as consumers tend to eating at home and buying ice cream from retailers to eat at home instead of visit the ice cream shops. Unfortunately, the ice crea sales have not grown since 2006 and there was a 3.6% decrease from 2007 to 2008 ( Ice Cream shops us, 2009). Even though it sounds like a bad news, but this news actually an advantages for these ice cream shops. Visiting the ice cream shops for a bowl of ice crean allows consumers to indulge in a small luxury, but be careful of their wallet during difficult economic times. Super premium shops put higher price but they aim to give consumers the most bang for their money. By visiting the shops, they are not just looking for a bowl of ice cream but they are also looking to have an “experience”, this kind of trend is called “the starbucks effect” and made consumers willing to pay more to get a personalized experience( marketresearch.com, 2010). The last, health consious continues to be a trend among the consumers and this has lead the born of the frozen yoghurt shops. The wants of consumers to treat themselves something sweet but without extra calories leads to the sales grew of 10.9% on foodservice frozen yoghurt sales from 2005 to 2009. The new methode on yoghurt shop is self service where customers mix their own flavors, put the toppings and pay by the weight. Environmental Factors
2.1 Micro Environmental
Customers: When starting a business, there has to be customers to gain profit. The main goals of Cold stone is to attract as many as possible potentital customers through the product cold stone manufactured. In order to achieve goals, Cold stone creating various taste of ice cream to fulfill Cold Stone’s consumers wants and needs.
Employees: Having employees with excellent skills is very good for company to survive and creating more unique products. Hiring employees whose having lack of several skills will affect the business. Therefore, Cold Stones only hire people who have speciality skills to maintain each franchises all around the world. To maximize it, Cold stone could train the new employees before they start working. Suppliers: Suppliers normally supply company’s raw material or resources which are very essential for every company to keep on going. If there are a mistakes in the resources or raw materials from suppliers, it will directly affect the product that company’s produce. Cold Stone always make sure they have the best sources to make ice cream and cold stone normally made their product every day in order to minimise the mistakes in the product. Media: Media is a very sensitive aspect in business since nowadays people will always following the news which are coming from the media. Therefore, company has to maintain their good reputation in order to have a good reputation from media then the viewers will be affected by what media said. Internet and televions are the most common ones. To solve this problem, Cold stone keep focusing on giving their customers a very good services and good quality of products in order to prevent some negative issues. 2.2 Macro- Environmental
Economic environment: Changing in the currency rate will have a direct impact on the bussines’s environmant....
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