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Teaching Notes – Dippin’ Dots Ice Cream, as of October, 2004 Case Uses & Objectives This case can be used to augment discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13). The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the…show more content…
Recently ice cream makers have been touched by consolidation trends affecting the overall food and beverage industry. Dippin’Dots founder Curt Jones hit one plateau in the late 1990s and developed a franchising system to try to reach the next level. By the end of 2000, franchise agreements were providing a cash flow, and Dippin’ Dots Franchising, Inc. was on its way to reaching the number 4 ranking in Entrepreneur magazine’s 2004 list of Top 50 New Franchise Companies. Growing at a rate of 10-15% annually, by 2004 Dippin’ Dots was now also available in 800 western region McDonald’s stores. Targeting their core demographic of 8-18 year olds, in 2002 Dippin’ Dots started running print ads in Seventeen and Nickelodeon magazines, getting product placements in TV and movie scenes, and soliciting endorsements from MTV and sports celebrities. The influx of funds from franchisee fees had provided cash to greatly enhance marketing. Recently, Dippin’ Dots has begun to face increased competition in the out-of-home ice cream market from Nestle and Uniliver, and from knock-offs like Frosty Bites and others. While franchise growth may create increased brand recognition and put the company on the map with other franchises like Dunkin’ Donuts, Baskin Robbins and other “scoop shops”, a new product created by Jones will allow a

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