Cold Stone Creamery

2036 Words Mar 23rd, 2015 9 Pages
Rushil Gupta
Professor Jock Sommese
Business 102
02/18/2012

Report by Rushil Gupta

Entrepreneurship:
Cold Stone Creamery was founded by Donald and Susan Sutherland in an effort to make perfect ice cream that was neither soft serve nor hard packed. What makes them stand out compared to many other ice cream stores is that all their stores make ice cream fresh daily in the store. The company was founded in 1988 and had its first store in Tempe, Arizona (which is still operating), they also moved there headquarters to Scottsdale, Arizona from Tempe, Arizona in 1997. Their name Cold Stone Creamery comes from a granite stone used to mix add–on like cookies, m&m’s, sprinkles, chocolate… into ice cream. The store main ingredient is
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The disadvantage of parent company franchising is that they don’t get to keep all the profit just the percentage the parent company and franchisee settled upon. Second disadvantage for the parent company is that they don’t have absolute control over all their stores as they are handled and operated by the franchisee
Marketing/Advertising:
Cold Stone Creamery use national marketing strategy but also adapts to use specialized local marketing strategies for its franchisee to help them increase sales. For instance they market themselves for not just giving customer ice cream but rather an “Experience”; they are also targeting the healthier crowd by bringing in healthy smoothies (because they are traditionally known for unhealthy treats). To increase awareness for their healthy smoothies, they are going to offer free smoothies samples at some stores, have smoothies in their menu under “healthy indulgence”, and they are going to give away free samples at Gasparillia Distance Classic Race expo (over 20,000 people attend). They are also bringing in Valpak saving coupons, about 46.6% of the marketing budget, this will help store visits, increase sales and help them tackle their weakness of high prices. In short their national marketing strategy is to reach all target…

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