Marketing plan for ice dreams, an icecream shop Ice Dreams will sell shave ice as its primary product in addition to soft drinks and frosty Latin drinks called licuados. Shave ice is the hottest new dessert since frozen yogurt! Shave ice is heating up rapidly and shows no sign of cooling (Crystal Fresh, Inc., 1995).
Shave ice has been around for many years, beginning in Asia, then becoming popular in Hawaii. People would shave ice by hand, creating a cold, flaky snow. Then they’d top it with fruit juices to create a refreshing treat. Something this good couldn’t remain a secret. In recent years, the taste for shave ice has spread all over the world. Shave ice is much different than a sno-cone in that it is made by a small counter-top machine that shaves ice rather than grinding it like a sno-cone machine, which results in ice so fine that it rivals real snow! The snow is then placed in bowl or cup and filled with high quality tropical fruit flavors. Because the snow is so soft the syrup is held within its tender texture versus settling to the bottom like traditional sno-cones. Since the syrup is absorbed into the snow, it must be eaten with a spoon instead of a straw. Because shave ice is so tender and made with the thickest, best-tasting tropical fruit flavors, it is preferred by adults and children of all ages and ethnic backgrounds. A drive-through business will be built on privately-owned commercial property on Highway 86 (Adams Avenue) in El Centro, California. Other products which will be incorporated into the business including beverages (soft drinks and licuados).
The Essay on Health Drinks Soft Drink
Importance and Effects of Health drinks and Soft drinks in 21 st century Introduction: Here we are going to discuss about the relevance and effects of health drinks and soft drinks like coke. We have explained in our study the advantages and disadvantages of these drinks. What are the ingredients of these drinks? How are they affecting every age group in the 21 st century? Should they be used or ...
1. To construct a drive-through building (12′ x 20′) on existing privately-owned commercial property (50′ x 120′).
2. To produce a net profit of at least $50,000 by the third year of operation. 3. To sell 20 different tropical and Mexican flavored syrups. 4. To sell other products such as soft drinks and licuados. Ice Dreams will produce and sell shave ice with 20 different flavored syrups, soft drinks, and licuados to consumers in El Centro, California. Retail customers will be in the low- to mid-income bracket, and will range in age from children to adults. 1. Will be the first business of its kind in the city of El Centro, California. 2. Business will be located on a major city highway, next to several housing developments, the city pool, near schools and parks, and along a major restaurant and motel strip. 3. Product quality will include a large variety of tropical and Mexican flavored syrups. 4. Business has the potential for expansion into other Imperial County communities. 5. City of El Centro experiences warm to hot weather approximately seven months of the year. 6. Two-way traffic on Highway 86 averages 48,300 vehicles on a daily basis. 2.0 Company Summary Ice Dreams will be known for selling shave ice with 20 different tropical and Mexican flavored syrups to children and adults in El Centro, California.
Other products will include soft drinks and licuados. 2.1 Company Ownership Ice Dreams will be owned by Ofelia R. Arellano as a sole proprietorship. Start-up costs will be apprximately $52,010 which will include facility construction including sidewalks, parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan. Total Start-up Requirements: $52,010 Subtotal Short-term Liabilities $42,010 Total Capital and Liabilities $16,000 2.3 Company Locations and Facilities Ice Dreams will be located on Highway 86 in El Centro, California which experiences a high volume of traffic on a daily basis. According to a study by Cal Trans (Traffic Volumes, 1995), approximately 48,300 vehicles pass through this location on a daily basis making it an ideal location for business. The majority of traffic enters and exits via Imperial Avenue and Fourth Avenue traveling through Highway 86. A 240 square foot drive-through facility will be built on a privately-owned commercial property which will also include parking facilities, landscaping, and a small sitting area. Other major businesses located on Highway 86 include Carl’s Jr., Roberto’s Restaurant, La Fonda Restaurant, Raging Bull Restaurant, China Restaurant, Donut Shop, Steak House, Big John gas station, Recreation Center, and several motels.
The Business plan on Intro To Business Businesses Product Consumers
Introduction to Business Business plays a major role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society. By satisfying the needs and wants people cannot satisfy themselves, businesses improve the quality of life for people and create a higher standard of living. It is a way for individuals to provide goods and services to ...
The appendices provide additional information on the company facilities, a tentative plot plan, and highlights of the traffic study conducted by Cal Trans. Main products to be sold through the Ice Dreams business will be shave ice topped with tropical and Mexican flavored syrups in three main sizes: small, medium, and large. Other products will include three soft drinks (Sprite, Coke, and Diet-Coke), and licuados. One major product will be sold through Ice Dreams which will include shave ice topped with tropical and Mexican flavored syrups. Twenty different tropical and Mexican flavored syrups will be sold and include the following: Wild Watermelon, Pina Colada, Pink Lemonade, Guava Grape, Cherry Jubilee, Root Beer, Kiwi, Strawberry, Blue Bubble Gum, Orange Mango, Raspberry Red, Luscious Lime, Bodacious Banana, Tamarindo, Jamaica, Hortacha, Melon, Papaya, Manzana, and Limon. Other products will include soft-drinks in three flavors: Coke, Diet-Coke, and Sprite, and licuados in three flavors (strawberry, banana and mango).
No other business in El Centro specifically caters to the shave ice market on a large scale. It is anticipated that prices will be competitive with other businesses who sell shave ice on a smaller basis. Sales literature to be distributed to the general community will include fliers, advertisement in the local newspaper (Imperial Valley Press), and other print media. Ice Dreams will purchase products from Crystal Fresh, Inc. which manufactures and distributes high-quality syrups and ice shavers. All equipment and supplies are available through a regional distributor. Mexican flavored syrups will be purchased in Mexicali, Baja California, Mexico. It is anticipated that 10-15 additional syrups will be added such as Spearmint, Black Cherry, Cinnamon, Blueberry, Peach, Red Apple, Tutti Frutti, Coconut, Cola, Green Apple, Tangerine, and Vanilla. Also, future products to be sold will include ice cream in vanilla and chocolate flavors. El Centro is geographically situated at the junction of major east-west and north-south transportation routes. El Centro is also referred to as the “center of opportunity” with benefits created by the North American Free Trade Agreement (NAFTA) becoming one of Southern California’s most promising new commercial/industrial areas.
The Essay on Amazon Case Study: A Major Business Who Buy And Sell Products Online
1.What is Amazon’s business? •Amazon is an e-commerce company/ online retailer. They buy and sell products online. 2.A major business driver that was covered in the case is Operational Excellence. What are some of the information requirements that are associated with the business driver? •Some of the information requirements associated with the business driver are: i.Improvement of information ...
El Centro is accessible via Interstate 8, State Highway 111, and State Highway 86, where Ice Dreams will be located. Shave ice is an ideal business for El Centro given both the potential market segment, location, and climate. Utilizing averaged priced units ($1.25) for shave ice and other products to be sold, the shave ice business has the potential market of $104,446 gross sales by the third year of operation. According to Advertising Age (September, 1995), premium ice cream and frozen yogurt products are losing market share to mid-priced and other frozen dessert products. Information Resources reported that frozen ice products comprised a third of the $2.4 billion ice cream category for the year ending May 21, 1995, generating $717.7 million, up 9.3% from the previous year. Based on this information, it is anticipated that the frozen dessert market can be divided into two customer segments. The first segment prefers premium ice cream and frozen yogurt products. The other segment obviously includes those that prefer frozen ice products. Shave ice products are ideal for today’s health-conscious consumers. They boast no fat, no cholesterol, and are relatively low in calories.
Ice Dreams will target all segments of El Centro’s population: children, teenagers, and adults. The Hispanic population will be of special interest since it comprises 65% of El Centro’s total population. This population will be targeted with Mexican flavored syrups and licuados. 4.2 Target Market Segment Strategy Ice Dreams will target the low- to mid-income consumers who want to have a high quality dessert for moderate prices. Ice Dream’s shave ice meets the quality required by these customers since it will also cater to the large Latino population in El Centro with its Mexican flavored syrups. 4.3 Industry Analysis One of the best known shave ice businesses is Sno Biz Shave Ice under the parent company of Crystal Fresh, Inc. Dealerships such as Sno Biz have demonstrated the success and feasibility of selling shave ice. The Sno Biz dealership has been in existence for the last 11 years with over 3,000 individual dealerships throughout the United States. Sno Biz syrups products are also sold in Wal Marts throughout the country. While no Sno Biz dealership currently exists in California, Sno Biz products are sold at the San Diego Zoo, Lion Country Safari, and the San Diego Military base with great success.
The Research paper on Analyse the Benefits of Joshua Protecting It Business Ideas and Products
Analyse the benefits of Joshua protecting it business ideas and products There are many benefits for Joshua protecting its business ideas and products. As shown in the case study Joshua owns a copyright of the UK’s leading hair magazine. This is a benefit to Joshua as no other hairdressing companies can copy the style or layout of the magazine. This means that Joshua can stay the UK’s leading ...
The potential success for selling shave ice is attributed to the following: 1. Compared to other food service products, Ice Dreams will be a relatively simple business to operate. 2. Shave ice is similar to a Mexican favorite called raspado, but because it is softer and tastier, it is preferred over raspados. 3. Shave ice has a low food cost and is easy to prepare, which keeps speed-of-service at optimum levels to keep up with high-traffic volumes. 4. Ice Dreams will be easy to maintain and clean. 5. Shave ice is a product that has yielded a considerable profit in terms of cost to produce at $0.16. 6. Shave ice is an ideal product for the health-conscious consumer. Market research conducted in El Centro did surface one raspado (sno-cone) business on a small scale called “Snow Shack” located on State Street. Snow Shack consists of a small trailer that accommodates only one employee. Sno-cones are sold in cups at prices ranging from $1.00 (small), $1.25 (medium) to $1.50 (large).
Sno-cones were also found to be sold at Garcia’s Food Market and Wal Mart. Each sold sno-cones in one regular size at $1.00 each. Research conducted in Bullhead City, Arizona noted that the Sno Biz dealership only sells shave ice as their primary product. Shave ice units sold for $1.25 (small), $1.75 (medium) to $2.25 (large) per unit. In interviewing the current owner, he indicated that during his first year in business he was selling 200 units per day. Research in San Diego, California revealed that shave ice is sold along with other products. Several businesses in Mission Bay sold shave ice with prices ranging from $1.79 (small), $1.99 (medium) and $2.39 (large).
The Term Paper on Funding a Business Venture / Investment Banker/Stock Market/Financial Management/Risk Financing
Funding A Business Running head: FUNDING A BUSINESS VENTURE Funding a Business Venture Jason L. Morales American Intercontinental ...
In terms of licuados, prices were $2.79 (regular) and $3.15 (large).
Research conducted in Honolulu, Hawaii, showed that in some locations, shave ice sold as high as $5.00 for a regular size. However, the majority of sno-cones were sold by the flavor and not necessarily by the size. For example, one flavor was $1.79, two flavors were $2.29, and three flavors sold for $2.79. The shave ice industry in El Centro, California currently has no key players since no other business of this type currently exists in the Imperial Valley. 4.3.2 Competition and Buying Patterns The shave ice business will be new to El Centro. Competitors in this type of business primarily sell raspados or sno-cones and do not focus on the shave ice market. One major competitor is the “Snow Shack” located on State Street. Snow Shack sells sno-cones through a small, one person trailer with limited choices of syrups. Other competitors sell sno-cones through Garcia’s Market and the Wal-Mart store which also have limited syrup selections and do not necessarily focus on the sno-cone or shave ice industry as their primary product. The keys to success will definitely focus on selling shave ice and not sno-cones made with coarse ice and selling high quality syrups. Prices will also be competitive with those of the competition.
Main competitors include the Snow Shack, Garcia’s Market, and Wal-Mart. The following are strengths and weaknesses of each. ? Snow Shack Strengths: The main strength of Snow Shack is that it is the only business in El Centro that caters to the sno-cone market. It also has very reasonable prices. The primary weakness of Snow Shack is that it does not sell shave ice but rather sno-cones made from very coarse ice. Syrups are also not of good quality. The main strength of sno-cones sold by Garcia’s Market is their low price of $1.00 and the convenience to the shopper in buying sno-cones while doing their shopping. Weaknesses: The main weakness of sno-cones sold by Garcia’s Market is that they do not sell quality syrups and prefer to sell the more inexpensive brand with lower quality taste. Main strength of sno-cones sold by Wal-Mart is the convenience to the shopper and low price. Wal Mart’s weakness, like Garcia’s Market, is that they do not sell quality syrups. Also, the sno-cone business is not their primary focus or product. 5.0 Strategy and Implementation Summary Ice Dreams is planning for slow growth by expanding flavors available from 20 to 30 in year two of operation.
The Business plan on Business Strategy Long Term
Q # 1 What is your evaluation of Michael Dell as CEO? How well has he performed the tasks of Strategic management discussed in Chapter 1? o He is an excellent CEO At age 33, he is a multi-billionaire, one of the richest people in the world and one of the most respected CEOs in the world. He has done his job in the best way he could because given the age and lack of experience, we think he has done ...
Also, an additional product to be sold in year two will include ice cream in flavors of vanilla and chocolate. Ice Dream’s overall marketing strategy will be to create an image of offering the highest quality shave ice in Imperial County. The business will be located in a high traffic area of El Centro. Customers will be reached through advertisements such as fliers, newspaper ads, and through its grand opening ceremonies. A special marketing program will also be incorporated by offering special coupon prices for nearby restaurants, motels, city pool, the donut shop, and the gas station to customers who purchase any product at Ice Dreams. Distribution of shave ice will be through the business facility only. It is anticipated that in the future, a small portable ice shaver will be purchased such that the product could be sold on site at various fund raising functions through churches, schools, etc. Shave ice will be offered at the following prices: Products will be sold on a cash basis only. Ice Dreams will promote shave ice to customers by: 1. Flier distribution to consumers’ homes within a five-mile radius. 2. Newspaper advertisements will be purchased during the first three months of business until a clientele is built.
3. Ice Dreams will offer discounts to recreational groups such as children/adult baseball and football teams who play in nearby facilities. 4. Promoting products for an introductory price at its Grand Opening. 5. Ice Dreams will “adopt a school” and provide shave ice to individuals who are selected for having excellent attendance, good grades, and good citizenship. Other incentives will include sponsoring a good attendance program by purchasing a bike and raffling it to students with the best attendance. This will be a promotional strategy to encourage business. Major marketing will be conducted through newspaper advertisements and local flier distribution during the first three months of operation. Total costs will be approximately $500. Sales strategy will be directly linked to marketing programs since all sales will be through the business facility only. Consumer sales will start in January, 1997 (or sooner if construction it completed before targeted date) with its grand opening anticipated by then. Sales and units costs for the first six months of 1997 are shown in the sales forecast as projected numbers. As indicated, primary sales will occur during the peak warm weather months as noted by the following table. Sales $52,217 $77,383.00 $104,446.00 Total Sales $52,217 $77,383 $104,446 Subtotal Cost of Sales $12,114 $17,772 $24,227 Ice Dreams will hire an employee to assist with the business. Ice Dreams will require minimum daily supervision after it has been established since all three products are fairly easy to make. Ofelia R. Arellano, the owner, will have one individual assisting her with the business. Long range plans will include a second employee to assist with the weekend hours. Ofelia R. Arellano is the most important member of the management team. Dr. Arellano is a graduate of the University of California, Santa Barbara with several advanced degrees (Masters and Doctorate in Psychology).
She has spent the last six years working as an administrator overseeing a budget of approximately $800,000. Ofelia will oversee the business primarily during the weekend hours and Frank Arellano will oversee the business during weekdays along with one employee. Planned Programming Budgeting Systems Advertising for Educational Purposes Business and Educational Partnerships Board of Director, San Ysidro Planning and Development Group ? Business Needs Assessment and Consultation Board of Directors, San Ysidro Chamber of Commerce Frank Arellano will serve as a consultant on a volunteer basis. Mr. Arellano spent over 35 years in the retail business handling marketing and inventory for a major food chain. He is familiar with all aspects of business management and operations having owned and operated his own grocery store in El Centro. Mr. Arellano will also assist in the building design, landscaping layout and business marketing. Mr. Arellano will supervise the business during the week days which means managing one employee. Monthly personnel cost estimates are included in the following table. Total Payroll $10,800 $11,232 $11,681 Total Payroll Expenditures $13,284 $13,815 $14,368 ? We want to finance growth mainly through cash flow.
We recognized that this means we will have to grow slowly. ? The most important indicator in our case is that minimal inventory will have to be stored for these products. Monthly sales are the largest indicator for this business. There are some seasonal variations with the months of March through September being the highest sales months. Short-term Interest Rate % 13.50% 13.50% 13.50% Long-term Interest Rate % 0.00% 0.00% 0.00% Inventory Turnover Estimator 12.00 12.00 12.00 Expenses in Cash % 0.00% 0.00% 0.00% Personnel Burden % 23.00% 23.00% 23.00% The following table and chart show the current break-even analysis. The operation will require sales of approximately $2,900 to break even during the first year of operation. Average Per-Unit Variable Cost $0.36 We expect a profit of $6,740 in year one; $19,212 in year two; and $32,886 in year three of operation. Direct Cost of Sales $12,114 $17,772 $24,227 ———— ———— ———— Total Cost of Sales $12,114 $17,772 $24,227 Gross Margin $40,103 $59,611 $80,219 Advertising/Promotion $600 $624 $649 Payroll Expense $10,800 $11,232 $11,681 ———— ———— ———— Total Operating Expenses $19,810 $20,602 $21,427 Profit Before Interest and Taxes $20,293 $39,009 $58,792 Interest Expense Short-term $5,672 $5,672 $5,672 Taxes Incurred $4,386 $10,001 $15,936 Net Profit/Sales 19.60% 30.16% 35.60% Projected cash flow is estimated as follows for the next three years: Change in Accounts Payable $1,266 $365 $374 Current Borrowing (repayment) $3 $0 $0 Increase (decrease) Other Liabilities $0 $0 $0 Long-term Borrowing (repayment) $10,500 $10,500 Change in Inventory ($1,013) $146 $166 Change in Other Short-term Assets $0 $0 $0 Net Cash Flow $25,213 $36,339 $50,267 Cash Balance $35,213 $71,553 $121,820 The balance sheet shows a slow but steady upward growth in net worth after initial start-up as follows: Cash $10,000 $35,213 $71,553 $121,820 Other Short-term Assets $675 $675 $675 $675 Total Short-term Assets $12,000 $36,200 $72,685 $123,119 Capital Assets $4,000 $4,000 $4,000 $4,000 Accumulated Depreciation $0 $2,196 $4,480 $6,855 Total Long-term Assets $4,000 $1,804 ($480) ($2,855) Total Assets $16,000 $38,004 $72,205 $120,264 Accounts Payable $0 $1,266 $1,632 $2,005 Short-term Notes $42,010 $42,013 $42,013 $42,013 Other Short-term Liabilities $0 $0 $0 $0 Subtotal Short-term Liabilities $42,010 $43,279 $43,645 44,018 Long-term Liabilities $0 $10,500 $21,000 $31,500 Total Liabilities $42,010 $53,779 $64,645 $75,518 Paid in Capital $10,000 $10,000 $10,000 $10,000 Retained Earnings ($36,010) ($36,010) ($25,775) ($2,439) Total Capital ($26,010) ($15,775) $7,561 $44,745 Total Liabilities and Capital $16,000 $38,004 $72,205 $120,264 Net Worth ($26,010) ($15,775) $7,561 $44,745 Standard business ratios are included in the table that follows. The ratios show a plan for balanced, healthy growth. Profitability Ratios: 1997 1998 1999 RMA Net Profit Margin 19.60% 30.16% 35.60% 0 Return on Assets 26.93% 32.32% 30.92% 0 Return on Equity 0.00% 308.64% 83.10% 0 Inventory Turnover 14.80 46.18 44.79 0 Accts Payable Turnover 14.72 15.05 15.60 0 Total Asset Turnover 1.37 1.07 0.87 0 Short-term Liab. to Liab. 0.80 0.68 0.58 0 Net Working Capital ($7,079) $29,041 $79,100 0 Additional Ratios 1997 1998 1999 RMA Current Debt/Total Assets 114% 60% 37% 0
