Cold Stone Project

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Contents
Product Statement ........................................................................................................................................ 4
Analysis of the External Environment ........................................................................................................... 5
Industry Trends ......................................................................................................................................... 5
Competitive Trends ................................................................................................................................... 7
Brand Competitors ................................................................................................................................ 7
Product Competitors ............................................................................................................................. 7
Generic Competitors ........................................................................................................................... 10
Total Budget Competitors ................................................................................................................... 10
Political Trends, Legal Trends and Regulatory Trends ............................................................................ 11
Franchising .......................................................................................................................................... 11
Food and Drug Administration ............................................................................................................ 11
Technological Trends .............................................................................................................................. 13
Economic Trends ..................................................................................................................................... 14
Cultural Trends ........................................................................................................................................ 17
Analysis of the Customer Environment ...................................................................................................... 19
Who ......................................................................................................................................................... 19
How many ............................................................................................................................................... 20
What ........................................................................................................................................................ 21
Why and How .......................................................................................................................................... 23
When ....................................................................................................................................................... 24
Why Non Customers ............................................................................................................................... 25
Where ..................................................................................................................................................... 26
Analysis of the Internal Environment ......................................................................................................... 27
Marketing strategies ............................................................................................................................... 27
Target Market ..................................................................................................................................... 27
Image ...................................................................................................................................................... 27
Marketing Programs ............................................................................................................................... 28
Advertising .......................................................................................................................................... 28
Product and Service Offering .............................................................................................................. 29
Distribution and Channel Programs .................................................................................................... 30
Pricing .................................................................................................................................................. 30

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Sales strategy and Sales force effectiveness ....................................................................................... 30
Marketing research /intelligence gathering efforts ............................................................................ 30
Public relations/publicity .................................................................................................................... 31
Financial Performance ............................................................................................................................ 32
Additional Company Characteristics ....................................................................................................... 33
Technical Capabilities .......................................................................................................................... 33
Available Resources ............................................................................................................................ 33
Production Capacity ............................................................................................................................ 33
Career Opportunities .......................................................................................................................... 34
SWOT Analysis............................................................................................................................................. 35
Strengths ................................................................................................................................................. 35
Weaknesses............................................................................................................................................ 37
Opportunities .......................................................................................................................................... 38
Threats .................................................................................................................................................... 39
Marketing Goals and Objectives ................................................................................................................. 40
Goals ....................................................................................................................................................... 40
Objectives ............................................................................................................................................... 40
Marketing Strategies ................................................................................................................................... 41
Target market ......................................................................................................................................... 41
Value Proposition .................................................................................................................................... 42
Positioning Statement ............................................................................................................................. 42
Issues Analysis ......................................................................................................................................... 43
Action Plans ................................................................................................................................................. 45
Valpak Savings Coupons .......................................................................................................................... 45
Free Smoothie Sample at Gasparilla Distance Classic Race Expo ........................................................... 46
Customer Loyalty Card ............................................................................................................................ 47
University of South Florida Freshman Orientation Promotion ............................................................... 48
Tuesday Free Kids Giveaway ................................................................................................................... 49
Dog Yappy Hour ...................................................................................................................................... 50
Student Study Break promotion ............................................................................................................. 51
Clear Channel Outdoor Digital Billboard ................................................................................................. 52

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Senior Citizen Afternoon Happy Hour .................................................................................................... 53
Monthly Customer Drawing .................................................................................................................... 54
Marketing Budget ....................................................................................................................................... 55
What We Learned ....................................................................................................................................... 56

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Product Statement
Award-winning Cold Stone Creamery has been serving up superior ice cream, cakes, cup cakes and
smoothies and shakes for over 20 years. In 1988, founders Donald and Susan Sutherland pursued their
ice cream dream when they opened the first Cold Stone Creamery in Tempe, Arizona. Since they were
ice cream lovers themselves, their mission was to give customers the to make people happy and give
them the ultimate ice cream experience.
1
There are more than 1,450 Cold Stone creamery franchises
located throughout the United States and in countries all over the world. Currently, there are 15
locations throughout Hillsborough County. The company is based in Scottsdale, AZ and is owned and
operated by Kahala Franchising, L.L.C.
Industry experts have referred to Cold Stone ice cream as super premium because it is made fresh
every day in each store. All ice cream orders are called creations, because the ice cream artists use a
frozen granite stone to mix anything and everything into any ice cream flavor. There are over 11 million
possible creations and after years of practice, some of the favorites have been named Cold Stone
Signature Creations.
2
For ice cream lovers who want to indulge in flavors and not the calories, Cold
Stone has several options they call, Healthy Indulgences. These health conscious customers can
choose from non-fat no sugar added ice cream, Sorbet flavors and non-dairy smoothies.
The ice cream creations are offered in three sizes: 5 oz, 8 oz, and 12 oz. The sizes are creatively named
Like It, Love It, and Gotta Have It respectively. There is also a 3 oz kids size available for young
Cold Stone lovers. Customers that really Gotta Have it can order larger quantities to go in either
mine, ours and Everybodys sizes (small, medium and large). Cold Stone treat prices are $3.29 for
a Like it, $3.39 for a Love it, $3.79 for a Gotta have it, and $1.69 for a kids size. To go prices
range from $6.99 to $9.99 and toppings start at 30 cents each.

1
Our Story Coldstone Creamery. September 6, 2010 https://www.coldstonecreamery.com/about/cold_stone_story.html
2
Our Story Coldstone Creamery. September 6, 2010 https://www.coldstonecreamery.com/about/cold_stone_story.html

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Analysis of the External Environment
Industry Trends

The United States Frozen dessert market has two main channels: retail and foodservice. The retail
market encompasses sales of frozen goods through grocery, convenience, specialty and discount stores
while the foodservice market includes sales from scoop shops, restaurants, vending machines and other
establishments. In 2009, it was estimated that the U.S. ice cream and related frozen dessert market
reached 24.6 billion dollars, a 1.5% increase from 2006. In the same time period, nearly 60% of all U.S.
frozen dessert sales were made through foodservice.
3

The foodservice market has been faced with tough times because of the ongoing recession. Consumers
are eating at home more, and are buying ice cream from retailers to eat at home instead of going out.
The ice cream sales have not grown since 2006 and experienced a 3.6 percent decrease from 2007
2008. It is forecasted that foodservice ice cream sales will continue to decline, up to 4 percent, through
2013.
4
Although this seems like bad news, these shops have a unique advantage. Going out for a bowl
of ice cream allows consumers to indulge in a small luxury, but be mindful of their wallet during difficult
economic times. Super premium ice cream shops, are a bit more expensive, but aim to give consumers
the most bang for their buck. When they visit these upscale shops, they are looking for more than a
bowl of ice cream; they are looking to have an experience. This trend is called The Starbucks effect,
and causes consumers to pay more to get a personalized experience.
5

Being health conscious continues to be a trend with consumers and has lead to the comeback of frozen
yogurt shops. From 2005 to 2009, foodservice frozen yogurt sales grew 10.9 percent while during the
same time period foodservice ice cream sales experienced only a 4% growth because of declines in 2007
and 2008.
6
Consumers want still want to treat themselves to something sweet, but without the extra
calories. The new frozen yogurt shop is self-serve, where customers dispense and mix their own flavors,
pick out toppings and pay by weight. Self-serve shops allow consumers to still have a personalized
experience without having to pay a premium price. In the Tampa Bay area, Yogurtology and Yogurt Spot
are two self-serve yogurt places have recently been popping up.

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Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities in Retail and Foodservice, 6th Edition MarketResearch.com
September 8, 2010
4
Market Size and Forecast Ice Cream shops US 2009 Mintel report September 8, 2010
5
New Product Trends Ice Cream and Frozen Desserts. Marketresearch.com 2010
6
Foodservice Frozen Yogurt Is a Soft-Serve Market Ice Cream and Frozen Desserts. P.71. Marketresearch.com 2010

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Health conscious consumers are demanding great tasting natural food with simple ingredients. In
response to this trend, Haagen-Dazs came out with their Five series of ice cream. Each flavor of
Haagen-Dazs Five has only five natural ingredients: milk, cream, sugar, eggs and one additional flavor
ingredient. All of the ingredients are easily recognized by consumers and make them feel good about
what they are putting into their bodies.
7

The demand for organic products is no longer something found only in urban areas and in college towns.
In 1997 organic products was a 3.6 billion dollar industry and in 2007 it was recorded to have grown to
18.9 billion dollars, making organic products mainstream. Many mainstream ice cream manufactures,
such as Ben & Jerrys, have reacted to this demand and now offer an organic version of their products.
8

Co-branding is a relatively new trend where two different franchises, usually from the same parent
company, provide offerings from one location. Over 10 years ago, Dunkin Donuts and Baskin Robbins
were two of the first franchises to successful open a co-branded shop. Recently, many other franchises
have followed suit, including Maggie Moos and Great American Cookies; Pizza Hut and Taco Bell; and
Marble Slab Creamery and a NexCen preztelmaker subsidiary. Co-branding is a way that both brands
can take advantage of their complimentary traffic patterns, raise awareness, grow, and keep costs
down.
9

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Haggen-Dasz Five Stands Out Ice Cream and Frozen Desserts. P. 293 Marketresearch.com 2010 September 8, 2010
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USDA says Organic is Mainstream Ice Cream and Frozen Desserts. P. 66 Marketresearch.com 2010 September 8, 2010
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The Major Ice Cream Chains Ice Cream and Frozen Desserts. P. 157. Marketresearch.com 2010 September 8, 2010

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Competitive Trends
Brand Competitors

Marble Slab Creamery claims that in 1986 it was the first shop to use a frozen granite slab to blend
mix-in toppings into the ice cream, per the direction of a customer. The company began in the
Southeastern region of the United States and has since expanded to nearly 400 locations in 35 states,
Canada, the United Arab Emirates, Kuwait, and Mexico.
10
There are five locations within the Tampa Bay
Metropolitan Area.
11
Marble Slab Creamery had $89 million in sales in
2008, making up 6.9 percent of the leading ice cream shop market.
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In September 2009, Marble Slab announced a line of shakes for
"grown-up" tastes. The new shakes, under the Club Marble label,
include Irish Cream, espresso, and island coffee flavors. In an effort to
become more environmentally friendly, the company launched a
program in the spring of 2010 to phase out plastic containers and
replace them with paper products. Its packaging displays the phrase,
Find Happiness Within, a sentiment that embodies the culture of the brand.
13
The company has
defined its brand through a gourmet proposition maintained by a chef-driven vision. This concept is
being promoted as part of the companys rebranding initiative. In an effort to reposition its global brand
image to better reflect its gourmet ice cream artistry experience, Marble Slab Creamery collaborated
with contestants from the television show Top Chef to create, Celebrity Sundaes.
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Product Competitors
Dairy Queen combines ice cream and fast food under one roof. This is an effort to produce leverage
over its competition, by creating a restaurant-like atmosphere to attract families. Dairy Queen,
headquartered in Minneapolis Minnesota, has 5,600 stores in the U.S., Canada, and many other various
countries.
15
There are 21 locations in the Tampa Bay Metropolitan Area.
16
In 2008, Dairy Queen had
$2,550 million in sales, making up 50.5 percent of the top U.S. ice cream shop chain market.
17
In 2009,
Dairy Queen announced The Sweet Deals value menu which includes nine items that can be purchased

10
Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities6
th
Edition, pg.167
11
www.yellowpages.com (September 14, 2010)
12
Ice Cream Shop US December 2009, Mintel Oxygen, Leading Companies
13
th
Edition, pg.168
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Ice Cream Shop US December 2009, Mintel Oxygen, Brand Qualities
15
Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities6th Edition, pg.163
16
17

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in combinations of two for $3, three for $4 or four for $5. Items include
a cheeseburger, all-beef hot dog, chicken wrap, French fries, onion
rings, salad, beverage and sundae or cone.
18
Dairy Queen is aggressively
seeking innovative ways to engage consumers and build brand equity
through social media, mobile messaging and virtual branding. Dairy
Queen spent 78.1 million in advertising expenses in 2008, an 86.3
percent share of the top ice cream shop advertisers.
19
Dairy Queen is best known for its signature
Blizzard treats, and they account for about a quarter of its total sales. The company puts a huge
emphasis on its promotional support because of how much sales come from this trademark product.
The company created a Blizzard of the Month campaign, which is advertised on television to create
product awareness and excitement.

Baskin-Robbins is the largest frozen dessert chain in the United States and the world, with more than
2,800 locations in the U.S. and 6000 throughout the world and 2,800 locations in the United States.
There are 25 locations in the Tampa Bay Metropolitan Area.
20
Baskin-
Robbins had $572 million in sales in 2008, making up 11.3 percent of
the top U.S. ice cream shop chain market.
21
Baskin-Robbins is a leading
player in the ice cream industry and embodies the brand qualities of a
traditional ice cream shop. The company has classic menu offerings and
offers consumers a variety of flavors. Baskin-Robbins plans to reinvent
the brand by offering Soft Serve ice cream and create a new value price
point. In addition, Baskin-Robbins is beginning a new concept format
called BR Express featuring a product line based from the future soft serve menu.
22
In 2009 Baskin-
Robbins suffered and was faced with challenges from the recession. In response, it released a new
Buy-One Get-One promotion called BOGO for frozen beverages. Baskin-Robbins tries to engage its
customers and has a Birthday Club, which offers a free ice cream cone to every member on his or her
birthday and special savings coupons all year long via e-mail.
23

18
19
Ice Cream Shop US December 2009, Mintel Oxygen, Advertising and Promotion
20
21
22
23
Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities6th Edition, pgs. 159

9

Ben & Jerrys brands identity is shaped by innovative combinations of traditional ingredients paired
with some very unorthodox names.
24
They have roughly 750 locations with approximately 500 of those
in the United States.
25
Ben & Jerrys had $240
million in sales in 2008, making up 18.5
percent of the leading ice cream shop
market.
26
There are four locations in the
Tampa Bay Metropolitan Area.
27
Ben & Jerrys
spread environmentally-friendly messages and is committed to activism. The company uses limited time
offers of particular flavors to raise money and awareness for a variety of different causes. For example,
a limited edition flavor was launched to recognize Sir Elton Johns first trip to Vermont and to raise
money for the Elton John AIDS Foundation.
28
The proceeds from this particular flavor were donated to
Elton Johns AIDS Foundation and simultaneously boosted the brands identity. Ben & Jerrys also value
its customers and have employed a Free Cone Day as a customer appreciation effort for over 30 years.

Haagen-Dazs was the first super premium ice cream brand and was started by Reuban Mattus in 1960.
The company was originally packaged ice cream that was available in shops throughout New York City.
In 1976, the first Haagen-Dazs shop was opened by Rose Matthus, the owners daughter, and it was an
instant success.
29
It is believed that Haagen-Dazs laid the
groundwork for other super premium scoop shops, including
the brands greatest rival, Ben & Jerrys. The company
currently has over 900 shops in 50 different countries,
including upscale locations in Europe and Japan.
30
There are
three locations within the Tampa Bay Metropolitan Area.
31

Haagen-Dazs had $100 million in sales in 2008, making up 7.7
percent of the leading ice cream shop market.
32
Haagen-Dazs
prides itself on using simple and pure ingredients and promotes its brand as, made like no other. The
Haagen-Dazs brand trademark is the use of unique upscale ingredients such as Baileys Irish Cream,

24
25
Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities6th Edition, pgs. 160
26
27
www.benjerry.com (September 14, 2010)
28
Ice Cream Shop US December 2009, Mintel Oxygen, Innovations and Innovators
29
History Haagen-Dazs September 20, 2010 http://www.haagendazs.com/company/history.aspx
30
th
Edition, pgs. 127-128
31
32

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caramelized pear & toasted pecan, and crme brule. One of the brands latest innovations, Five,
features only five ingredients in the all natural ice cream. While the main goal of releasing Five, was to
offer a pure and natural product line, it also claims to have less fat than its other ice creams.
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Generic Competitors
Name Brand Ice Cream (Grocery Store)
Generic Brand Ice Cream (Grocery Store)
Smoothies
Italian Ice
Frozen Novelties
Frozen Yogurt
Gelato
Coffee
Juice

Total Budget Competitors
Donuts
Cookies
Cupcakes
Chewing Gum
Potato Chips
Pizza

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Political Trends, Legal Trends and Regulatory Trends
Franchising
Franchising is a method of expanding a business and distributing goods and services in accordance with
terms and regulations set by the franchisor, also known as the business developer. The business
expands because the franchisor licenses its name and business operations to an individual or entity (the
franchisee).
34
Franchising is a good way for someone new to business to start out because some else
has already worked out the business strategy. Over time, franchising has become increasingly more
popular and there was a franchise boom between the years 2002-2008. Each state has different laws,
but under Florida Law, a franchise is an agreement between two or more persons that involves a
commercial relationship giving the franchisee a right to do business using the franchisor's services.
35

Nearly 1,400 Cold Stone stores have opened around the world over the last decade and in 2006,
Entrepreneur magazine ranked Cold Stone as the 11
th
fastest growing franchise. The initial application
process to become a Cold Stone franchisee can take up to three months. The initial franchise fee is
$42,000 and a total investment between $294,250 and $438,850 is required. When the application is
approved, Cold Stone must approve the store location and lease agreements. To ensure success, the
new owner must attend Cold Stone University, a two weeks training course located at the
headquarters in Scottsdale, Arizona.
36

Food and Drug Administration
In the United States, there are 58 Million people considered to be overweight, 40 million people
considered to be obese, and another three million who are considered morbidly obese. These
percentages were calculated using the Body Mass Index (BMI) standards. Those with a BMI between
18.5 and 24.9 are usually considered healthy. Adults with a BMI between 25.0 and 29.9 are considered
overweight and adults with a BMI between 30.0 and 39.9 are considered obese. According to these
standards, a BMI over 40.0 is considered morbidly obese.
37
These numbers are only increasing and it
has become a concern for the FDA.
38
The FDA required all food items to have a complete nutrition label
to aid consumers in making healthy choices. Nutrition labels are not just for grocery items, in order to

34
Snyder, Garth 23 November 2009 FAQs on Franchising FranchisingLaw.com September 20, 2010
35
Florida Requirements Guide to Florida Law: Florida Franchising and Dealerships . September 20, 2010
http://www.weblocator.com/attorney/fl/law/franchdeal.html
36
"Cold Stone Creamery - Steps to Becoming a Franchisee." Cold Stone Creamery - The Ultimate Ice Cream Experience. Web. 16 Sept. 2010.
<http://www.coldstonecreamery.com/franchises/steps_to_becoming_a_franchisee.html>.
37
Jensen MD. Obesity. In: Goldman L, Ausiello D, eds. Cecil Medicine. 23rd ed. Philadelphia, Pa: Saunders Elsevier; 2007:chap 239.
38
"Obesity Statistics for Adults, Children." Weight Loss Diet Program, FREE Diet Advice! Weight Loss Diets, Low Carb Plan. Web. 16 Sept. 2010.
<http://www.annecollins.com/obesity/statistics-obesity.htm>.

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comply with FDA regulations, ice cream parlors are required to have a nutrition label.
39
All stores must
also abide by local sanitation standards and routine visits from Health Inspectors. In accordance with
Section 509.013, Florida Statutes states what exactly a food establishment is and then requires that
inspectors make routine visits about two times a year.
40

39
"Cold Stone Nutritional Information." Cold Stone Creamery - The Ultimate Ice Cream Experience. Web. 16 Sept. 2010.
<http://www.coldstonecreamery.com/nutritional/nutrition_ingredients.html>
40
"Food Service Definition." DBPR: Home Page - Florida Department of Business and Professional Regulation. Web. 19 Sept. 2010.
<http://www.myfloridalicense.com/dbpr/hr/inspections/FoodServiceDefinition.html>.

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Technological Trends

Many companies strive to become one step over the rest in the ice cream industry. Marble Slab
Creamery was the first company that used a frozen granite stone to blend super premium ice cream
with mix-ins. Frozen granite was chosen because it has a non-porous surface and can consistently
remain at five degrees Fahrenheit.
41

Social e-gifting is a relatively new Facebook application that makes it easy for companies to engage
customers through social media. Consumers can go to the First Data Social e-gift page on Facebook and
quickly send a tangible gift to a friends Facebook account or e-mail address.
42
The company has plans
to expand but currently only offers gifts from Cold Stone Creamery.

41
https://www.coldstonecreamery.com/about/cold_stone_glossary.html
42
http://www.retailcustomerexperience.com/article/127182/Cold-Stone-Creamery-debuts-social-e-gifting-
program

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Economic Trends

The United States has the largest economy in the world, but is currently in what some consider an
economic crisis. It was predicted that the economy would be making a strong turn around this year but
last quarter (April June 2010), the economy only grew 1.6 percent; less than the 2.4 percent that
economists had previously predicted. Economists believe that in order to prevent further
unemployment, the economy needs to sustain a 2.0 2.5 percent growth rate. Although things are
looking grim for the end of 2010, experts predict the economy will begin to pick up in 2011.
43
The
Tampa Bay area is experiencing very little economic recovery, is currently ranked as one of the weakest
metropolitan areas in the nation.
44
The recession has heavily impacted the ice cream industry. Cold
Stone has closed approximately 160 stores in two years, and more than 20% of its current stores are up
for sale. Many franchisees are overwhelmed with debt, and some store owners are even claiming
personal bankruptcy.
45

Income Levels
As stated in the target market, there are 2,747,272 living in the Tampa Bay region. The average annual
household income is $64,267 and the median is $47,484. Tampa Bay falls under the national average
and mean which are $71,128 and $52,175 respectfully. The cost of living is less in Tampa Bay then many
areas and consequently people make less money which could account for the difference. The household
annual income levels are being affected by the high unemployment rate in Tampa Bay.
46

Unemployment
The entire nation is dealing with high unemployment rates and many people have little hope of finding a
job. Unfortunately, a big percentage of this group has also lost their home due to foreclosure. In 2009
the national unemployment rate was 9.8 percent and the Florida rate was much higher, 12.9 percent.
Although the entire nation is suffering, Tampa Bay is worse off with a reported 13 percent
unemployment rate during this same time period.
47

43
Grey, Barry. 28 August 2010US slashes estimate of second-quarter economic growth World Socialist Website. September 16, 2010.
http://www.wsws.org/articles/2010/aug2010/econ-a28.shtml
44
Harrington, Jeff. 15 September 2010 Tampa Bay ranks Among the Worst in Economic Recovery TampaBay.com September 16, 2010.
http://www.tampabay.com/news/business/tampa-bay-area-ranks-among-nations-worst-in-economic-recovery/1121671
45
http://www.lewrockwell.com/decoster/decoster132.html
46
Demographics September 16, 2010 Tampa Bay Population Regional Data Profile 2010. http://www.tampabay.us/relocation-
information/regional-data-profile.aspx
47
Demographics September 16, 2010 Tampa Bay Population Regional Data Profile 2010. http://www.tampabay.us/relocation-
information/regional-data-profile.aspx

15

Tax
The on-going availability of sugar is essential to making super premium ice cream and there has been
concern of an anticipated sugar shortage. There is some concern that a sugar shortage may occur in the
next two years because of quotas on imports imposed by the USDA.
48
In addition to the possibility of a
sugar shortage, there is also the possibility that legislators could impose a Fat Tax on foods and/or
beverages high in sugar content.
49

Inflation rate
The inflation rate is one of the most important economic forces because it consistently weighs in on the
value of a nation's currency. The inflation rate in the United Stated has remained fairly consistent and
averaged out to 3.5 percent from 2005-2009. In 2010, the interest is averaged out to be 1.85 percent,
and is forecasted to slowly drop for the rest of the year. On a seasonally adjusted basis, the CPI-U
increased 0.3 percent in August, the same increase that was reported in July.
50

Trade Restrictions
The Office of Foreign Assets Control (OFAC) of the United States, controls economic and trade
authorized based on the foreign trade laws. On January 1, 2008, the North America Free Trade
Agreement (NAFTA) was fully implemented. This allowed the United States, Canada, and Mexico to

48
FoodNavigator-USA.com, September 29, 2009
49
FoodNavigator-USA.com, July 29, 2009
50
http://inflationdata.com/inflation/inflation_rate/CurrentInflation.asp

16

benefit the agriculture and economic well being of each country. In order to trade within the
agreement, each food/drug product must follow requirements by the Animal and Plant Health
Inspection Service (APHIS) for all meat, plant, poultry, and egg products. Trade restrictions have now
been lifted from Mexico and the United States, and now allow sugar, corn, dry edible beans, nonfat milk
and high fructose corn syrup to be traded freely.
51
The United States has spent nearly 20 million dollars
in an attempt to revitalize the Mexican production challenges and assist in better trading.
52

Interest Rates
The current prime interest rate is 3.25 and is expected to increase to 3.50 in 2011 and to 4.0 in 2012. In
Tampa, Florida the sales tax associated with products is 7 percent.
53
The increasing interest rates are
going to increase the recovery time of the economy and decrease consumption. Increased interest rates
affect the cost of borrowing and lead to higher taxes to cover increasing national debt. Consumer and
business confidence will remain low, causing an increase in savings and a decrease in disposable
income.
54

Consumer Price Index
The Consumer Price Index (CPI) program produces monthly data on changes in the prices paid by urban
consumers for a representative basket of goods and services. The index for all items, less food and
energy, was unchanged in August after rising 0.1 percent in July.
55

Consumer Confidence
Marketers want consumers to be confident, because confident consumers spend more money. The
recession officially started at the end of 2007 and with that, a drop in consumer confidence. By the end
of 2009, the percentage of confident consumers was on the rise and by the end of the year; the group
increased by 25 percent. For the first time in two years confident consumers outweighed anxious
consumers by 3.5 million, and 47.6 million were reported to be confident consumers.
56

51
"North American Free Trade Agreement (NAFTA) ." USDA Foreign Agricultural Service (FAS). 2 Jan. 2008. Web. 20 Sept. 2010.
<http://www.fas.usda.gov/info/factsheets/NAFTA.asp>.
52
"Export Products Returned to the United States." FSIS Advertisement Rotator. 5 Sept. 2007. Web. 20 Sept. 2010.
<http://www.fsis.usda.gov/regulations_&_policies/Export_Products_Returned_to_the_United_States/index.asp>.
53
"Prime Rate Forecast: Projected Prime Rate Values 2010-2040." Mortgage-X ~ Everything There Is To Know About Mortgage Loans. Web. 20
Sept. 2010. <http://mortgage-x.com/general/indexes/prime_rate_forecast.asp>.
54
"Effects of Increasing Interest Rates Economics Help." Economics Help - Helping to Simplify Economics. Web. 20 Sept.
<http://www.economicshelp.org/macroeconomics/monetary-policy/effect-raising-interest-rates.html>.
55
http://www.bls.gov/
56
The Post Recession Consumer 2010 marketresearch.com September 14, 2010

17

Cultural Trends
Demographic Trends
As stated earlier, there are 2,747,272 people living in the Tampa bay area and there is about an even
number of males to females. Three dominant races reside in Tampa and it breaks down to be 47.7
percent White, 25.2 percent African American, and 22.2 percent Hispanic Mexican, Puerto Rico, Cuban,
and others).
57
African American household consume more ice cream then the typical American
household.
58
The Hispanic culture has influenced some ice cream flavors, such as dulce de leche. The
Hispanic population is expected to grow, and if correctly marketed, will spend money.
59

Generation X, ranging from 1961 to 1981, currently makes up about 20% of the population. They are
often single and still in college, due to taking time off for personal reasons. Generation X is concerned
with their health. They are considered a more materialistic generation that likes nice things. Their
salaries range from $15,000 to $45,000 a year, and they are more concerned with how they spend their
time rather than how much money they are making. Although money is not their main priority, many
are worried about retirement, and are concerned with spending money
60

Generation Y, also called millennials, were born between 1979 and 1990. They are known as the most
ethnically diverse and technological savvy generation yet. The majority of generation Y is either still in
college or already holds at least a Bachelors degree. This generation believes money stands for success,
and put a lot of emphasis on their image and material items. This mindset has caused a good
percentage of them spend more than they make, resulting in low bank account balances and higher
debt. They tend to lead busy lifestyles, eat out often and put on weight.
61

Lifestyle Trends
Many Americans are making a stride towards healthier lifestyles, and healthier desserts are becoming
more popular as well. These health trends are making frozen yogurt and healthy toppings, such as fruit,
a more favorable option when choosing a frozen dessert. Health and fitness have been becoming more
and more popular United States, however about 68% of adults and 32% of children are overweight.

57
"Tampa City, FL." U.S. Census Bureau. U.S. Census Bureau, 2008. Web. 20 Sep 2010.
<http://factfinder.census.gov/servlet/ACSSAFFFacts?_event=Search&geo_id=&_geoContext=&_street=&_county=tampa&_cityTown=tampa&_
state=04000US12&_zip=&_lang=en&_sse=on&pctxt=fph&pgsl=010>.
58
"Per Capita U.S. Frozen Dairy Product Consumption (Annual)." Understanding Dairy Markets . Agricultural and Applied Economics, 2006.
Web. 20 Sep 2010. <http://future.aae.wisc.edu/data/annual_values/by_area/2252?tab=sales>.
59
The US Market for Ice Cream and Related Frozen Desserts. Packages Facts. MarketResearch.com 2007
60
"Generational Market Research Bundle: Baby Boomers, Gen X and Gen Y." Packaged Facts . Market Research.com 2008
61
"Generational Market Research Bundle: Baby Boomers, Gen X and Gen Y." Packaged Facts . Market Research.com 2008

18

Food portions in America are generally supersized, which cause many Americans to suffer from portion
distortion, and eat about 30% more than they would when served a smaller portion. Therefore, many
people in the US are trying portion control diets. Because of the popularity of portion control marketers
are introducing smaller portion snacks, such as 100 calorie packs, to promote weight loss. About 38.7%
adults watch their diet to maintain or lose weight, and about 20% count calories.
62

The economy is currently ailing; in some situations parents may only be able to take their children out
for ice cream, preferably lower priced ice cream. Consumers of ice cream frequently look for variety
and new flavors when going out for frozen dessert. About 89% of US households keep ice cream or
sorbet in the house. A majority of adults prefer ice cream to other desserts, such as cookies or cake. In
a survey, 67% said that it was worth it to indulge in full fat ice cream. Ice cream can be considered good
for you because of its good source of protein, calcium, and vitamins, but it is generally not, so it has
been being created in low fat or sugar free. Frozen yogurt is making a comeback as well, but in more
flavors to satisfy health conscious consumers.
63

Cultural Values
According to a study done by Panasonic to understand behavior and attitudes of families, 48% of
parents claim that they do not spend enough time with their children, and 63% would pay more on
technology if it meant spending more time with family. 98% of parents find it essential to spend time
with their family. Only 52% claim that they spend a sufficient amount time with family. Some parents
believe watching television and playing video games is spending quality time with their children. Others
believe technology is tearing their families apart and even leading to neglect. 84% of generation Xs take
pleasure in spending time with family, others would either spend time elsewhere or alone.
64

62
Weight Management Trends in the US. Packaged Facts. MarketResearch.com 2010
63
The US Market for Ice Cream and Related Frozen Desserts. Packages Facts. MarketResearch.com 2007
64
"Survey: Families Need Technology to Spend Quality Time with One Another."Lifestyle . N.p., 02 Aug 2007. Web. 18 Sep 2010.
<http://www.associatedcontent.com/article/334270/survey_families_need_technology_to.html?cat=25>.

19

Analysis of the Customer Environment
Who
Cold Stone Creamery is a market leader and ranked third in a 2008 list for growth of United States ice
cream chains.
65
Cold Stone lists its perfect demographics as, a population of 15,000 within one mile,
consumers aged 18 to 36, and families with a household earning to $35,000 dollars or more.
66
The
concept of Cold Stone is more than just ice cream; its mission is to make people happy. Cold Stone
lives up to this by offering an entertaining experience to consumers while they indulge in a customized
treat.
67
A high level of customer service is what these consumers value and expect; it is why they are
loyal to the Cold Stone brand.
Psychographically, the customer base for Cold Stone can be easily compared to Starbucks coffee shops.
Consumers go to Starbucks for more than a cup of coffee; they go to have a personalized experience.
Creating a customer experience is sometimes referred to as the Starbucks effect. This effect has
been adopted and implemented by Cold Stone. Through this, Cold Stone is meeting the demands of its
customers and turning ice cream into much more than a commodity.
In most cases, the purchaser of a Cold Stone creation is also the user. Cold Stone creations would be
difficult for someone other than the user to pick out, because they are based up personal taste
preferences. There are times when one person buys multiple creations, but they usually know ahead of
time what each user wants. The purchasing decision is made by the consumer but can be highly
influenced with external forces. Cold Stones are located in high traffic areas where it is easy for
consumers to come in for a spontaneous treat. It is very common to see Cold Stones next to movie
theaters, schools, or in strip malls.

65
Table 4-3 Leading U.S. Frozen Dessert Chains by Units, 2008 Ice Cream and frozen yogurt market U.S. marketresearch.com
66
Submit a site location: introduction Cold Stone Creamery http://www.coldstonecreamery.com/about/submit_location_intro.html
67
The innovation track Ice Cream and frozen yogurt market U.S. Marketresearch.com

20

How many
Cold Stone Creameries are franchising and its customer environment varies upon location. The average
check is $9.00, which is usually for two people. Most people visit a Cold Stone in pairs, but according to
a store owner in FL, it is not uncommon for consumers to come alone. On average, a Cold Stone store
serves 140 people per day on Monday through Thursday. Weekends tend to be busier, and a store will
serve 250 to 400 people Friday through Sunday. During football season, the weekend sales tend to
drop. The location of the Cold Stone also makes a big difference on consumer demand. A store next to
a movie theater would be busiest on Fridays, while a store on a college campus would be busiest
Monday through Thursday.
68

Seasons tend to make a noticeable difference and most stores experience higher sales from March
through August. Depending on location, Florida for example, seasonal sales variations could be
irrelevant. To keep customer interest during colder months, Cold Stone creates special seasonal and
holiday themed flavors. In 1999, Cold Stone took a risk and opened a store in Alaska. It was quickly
discovered that consumers will eat ice cream even when it is cold outside. The Alaska store believes the
sales stay consistent because of the excellent product quality and having the right kind of employees to
create excellent customer experiences.
69

68
Cold Stone Store owner in Winter Park, FL
69
Opening and ice cream store in cold seasons U.S. Market for ice cream and other goods. Mintel Report

21

What
Cold Stone makes its ice cream in stores daily using high end premium products. Every ice cream
served is referred to as a Creation because each one is considered a work of art.
70
The ice cream is
blended on a frozen granite stone, with different combinations of ingredients, to make unique creations.
There are over 11.5 million possible combinations that consumers can create and eat.
71
The ice cream
can be served in a bowl, waffle cone or waffle bowl. The Creations are available in three sizes: like it
(5oz.), love it (8 oz.), and gotta have it (12 oz.).
Cold Stone Creamery also offers a to go option for at-home ice cream consumption. Consumers can
personalize a creation to bring home and choose from: mine (1-2 servings), ours (3-4 servings), and
everybodys (4-6). Several different 32 oz. quart containers are available with preselected creations
for those that want to grab something quick to bring home. Health conscious consumers can indulge in
a Sinless Sans Fat, a non-fat no sugar added ice cream. Cold Stone Creamery also offers a variety of non-
dairy Sorbets and non-dairy Smoothies to meet consumers health needs.
In 2009, Cold Stone entered the gourmet cupcake market and began creating ice cream cupcakes to sell
in-store. The three Cold Stone signature cupcakes are, Cake Batter Deluxe, Sweet Cream and Double
Chocolate Devotion. The cupcakes are sold in packages of six for $9.99.
72
In addition to the cupcakes,
Cold Stone Creamery has some other alternatives to scooped ice cream: Ice-Cream Cakes, Ice Cream
Cookie Sandwiches, Smoothies, Shakes, and Iced and blended Coffees.
Cold Stone Creamery uses several complimentary products with its ice cream. Waffle Cones can be
thought of as complimentary because it would not be consumed without ice cream. Several mix-ins
that are used to make a Custom Creation can also be considered as complimentary products. These
include: apple pie filling, cherry pie filling, peach pie filling, graham cracker pie crust, caramel, cinnamon,
fudge, sprinkles, sugar cone pieces and honey.
73
Although the listed mix ins are tasty, they wouldnt
necessarily be consumed alone.

70
Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities6th Edition, pg. 162
71
http://www.coldstonecreamery.com/icecream/about_our_ice_cream.html (October 1, 2010)
72
Ice Cream Shop US December 2009, Mintel Oxygen, Innovations and Innovators
73
http://www.coldstonecreamery.com/icecream/custom_creations.html (October 6, 2010)

22

Today, consumers are focused on going green in almost every aspect of their lives. Frozen dessert
marketers are trying to appeal to these consumers by implementing environmentally friendly practices.
Kahala Corp., the parent company of Cold Stone Creamery, reported in March 2008 that it was drafting a
three year plan to incorporate more sustainable and green practices. Among its efforts would be
initiatives such as, incorporating more water and energy-efficient equipment at the companys
headquarters and eventually at chain units; challenging suppliers of food and paper products to provide
more sustainable and fair trade goods; and remodeling or developing stores to incorporate more eco-
friendly features. The company reported that it is too early to determine how much the implementation
process would cost franchisees.
74

74
Ice Cream Reporter, March 2008 (October 5, 2010)

23

Why and How
Cold Stone Creamery offers personalized ice cream creations, shakes, smoothies, cupcakes and cakes for
each customer and strives to make people happy. Cold Stone is in the business of making people
happy and even made it their mission statement. Staying true to the mission statement is how Cold
Stone satisfies its customers emotional and comfort needs. Consumers might also visit Cold Stone
simply because they are hungry and a Cold Stone treat meets that basic need.
Cold Stones biggest competitor is Marble Slab Creamery; it has five locations in the Tampa Bay area and
offer very similar products. Although Marble Slab can compete on the basis of similar products, they do
not have the same entertainment factor as Cold Stone. For example, Cold Stone sings a song every
time someone puts money in the tip jar, where Marble Slab does not. Cold Stone went a step further in
connecting the customer with their ice cream by categorizing size and already set creations. The names
of the sizes, like it, love it and gotta have it, allow the customer to connect emotionally and pick
out a treat size with ease.
To meet the demands created by the health craze, there are frozen yogurt chains that have been
expanding into the Tampa Bay area. Many have a do it yourself approach, where customers can
dispense their favorite flavors and toppings and then pay by weight.
75
Competitors such as Yogurtology,
You Say When and Soobak Yogurt Bar have entered the Tampa Bay market and created a healthy and
fun option for consumers that want to indulge with fewer calories. Cold Stone didnt always meet the
needs of consumers who wanted a healthy option, but they have added healthier substitutes to its
menu. Some of the Healthy menu items are, low calorie smoothies, no sugar added ice cream and an
assortment of healthier mix-ins.
76
Cold Stone has met the demands of consumers who want convenient
and quick payment options. At all stores accept cash, credit and debit cards and Cold Stone gift cards.

75
27 Sept. 2010. <http://www.coldstonecreamery.com/about/cold_stone_culture.html>.
76
27 Sept. 2010. <https://www.coldstonecreamery.com/icecream/healthy_indulgences.html>.

24

When
Cold Stone Creamery understands that the economic downturn has created drops in sales. People had
to give up luxuries and indulgences that included fancy dinners and vacations. Even in tough economic
conditions, people still need a getaway and time to spend with their family.
77
Cold Stone encouraged
people to try new products while interacting with their family at Cold Stone stores. Indulging in a Cold
Stone experience was one way families could take a mini vacation without serious costs.
The Cold Stone on Fowler Ave in Tampa typically has three rushes during a typical business day. The
first rush is when the store opens and consists mostly of professionals on their lunch break, who come in
for ice cream after their lunch. During the afternoon Cold Stone gets a second rush of parents who bring
their children for ice cream after school. The third rush is before closing, and consists mostly of college
students. At this particular location weekends are the busiest days, as well as Mondays because of
student discounts. At this location, there is very little difference in seasonal sales because Florida
weather is pretty consistent throughout the year. Although the difference is small, it is worth noting
that even in Florida; sales during winter months are slightly lower than other times of the year.
Cold Stone creamery has consistently held promotions and special sales for consumers. Being part of
the community is very important to Cold Stone, and it gives back in multiple ways each year. It gets
involved with school fundraisers, charitable organizations and supports the Make-A-Wish foundation.
Cold Stone Creamery dedicates the entire month of September to raising money for the Make-A-Wish
foundation, which helps grant wishes for severely ill children.
78
This year Cold Stone was a part of
Kates wish which was to create an exclusive ice cream mix for Cold Stone. On September 30, 2010,
they held the 9
th
Annual Worlds Largest Ice Cream Social, where it gave away free samples of Kates
Creation.
79
Cold Stone also gets involved with customers on Facebook. On a regular basis, Cold Stone
updates its status, responds to customers, answers questions, and posts information about particular
stores.
80

77
29 Sep 2010 <http://www.qsrweb.com/article/127404/Ice-cream-industry-faring-relatively-well>
78
29 Sep 2010.<http://www.coldstonecreamery.com/about/community.html>
79
Cold Stone Creamery. 29 Sep 2010. <http://www.coldstonecreamery.com/promos/makeawish/index.html>
80
Facebook. September 29, 2010. <http://www.facebook.com/coldstonecreamery?v=wall&viewas=0>

25

Why Non Customers
Unique creations and treats at Cold Stone are delicious, but come with a price. The price of a Cold Stone
creation is usually higher than other ice cream shops and is significantly higher than ice cream at a
grocery store. Cold Stone successfully captures customers with a higher level of disposable income but
does not meet the needs of those on a tighter budget. Those on a strict budget have less disposable
income and cannot justify spending over $4.00 on a single ice cream treat.
Cold Stone is not only expensive, but also high calories. In most cases, it is not favored by those who are
trying to keep a healthy diet. At the request of its customers, Cold Stone introduced a line of Healthy
Creations. Even with these options, most consumers who live healthier lifestyles probably steer away
from Cold Stone. This could be because they are trying to resist a temptation to choose a high calorie
treat, or they simply not aware of the healthier options available.

26

Where
Cold Stone creations are only sold at franchised locations. In the Tampa Bay area, consumers can visit
anyone of the fifteen prime locations.
81
Locations are most likely found in strip malls, near movie
theaters and in other heavily trafficked locations. Regardless of the
surrounding, store locations are always densely populated. Cold Stone
has expanded internationally and has introduced stores in ten
countries: Japan, South Korea, Taiwan, China, Indonesia, Mexico,
U.A.E., Bahrain, Qatar, and Denmark.
82
Cold Stone has a plan to
become the biggest ice cream store in the world and have been
working diligently to expand globally and remain a market leader.
Cold Stone has the capabilities cater events, both large and small. Since Cold Stone Creameries are
franchisees, each owner has his/her own policy with regards to catering. Cold Stone is able to bring its
potable store to almost any location. For most events consumers are able to place orders directly over
the phone.
83

Most consumers love convenience and now they can have personalized creations delivered to their
homes in Tampa. Tampaeatz.com lets consumers order from over 30
different restaurants including Cold Stone Creamery. Orders can be
easily placed online or by calling 813-253-EATZ.

81
http://www.coldstonecreamery.com/google/stores/store_locator.aspx

82
http://www.coldstonecreamery.com/franchises/international.html

83
http://www.coldstonecreamery.com/about/company_faq.html#Store__locations

27

Analysis of the Internal Environment
Marketing strategies
Target Market

Cold Stones target market consists of consumers that like to indulge in super premium ice cream.
These consumers are looking for more than just ice cream; they are looking to have an experience. Cold
Stone has higher prices than other ice cream shops, but its target market is willing to pay, to get exactly
what they want. Cold Stone offers personalized service to each customer, allowing them to create their
own treat, and leaves them wanting to come back for more. According to the Cold Stone website, each
franchised location should be in a high traffic area with at least 10,000 people in a one mile radius.
Additionally, it recommends that Cold Stones are put in strip malls, near movie theaters, or near other
restaurants. Most ice cream is bought on impulse, which is why these heavily trafficked areas work
best. According to a store owner in FL, his target market consists of adults who come in alone or in
pairs. He also said adults tend to bring kids on the weekend, but that they almost always order
something for themselves too. In general, its target market is very similar to Starbucks, consumers who
are willing to pay a little extra to indulge in a small treat.

Image
Cold Stone was started by Donald and Susan Sutherland after they realized that the world did not have a
perfect ice cream. In 1988 they went on a quest to change the world, redefine ice cream, and opened
their first store in Tempe, Arizona.
84
Cold Stone positions itself to be the worlds best ice cream and
considers it to be in a class of its own. Cold Stone makes its ice cream daily, in each store, from the
freshest ingredients. Using only the finest ingredients means its products are considered to be super
premium. The Cold Stone image is something much bigger than just ice cream; it is a place that leaves
people happy and wanting to come back for more. It is where people can come and indulge, have fun,
and relax.

84
The Cold Stone Story www.coldstone.com October 13, 2010

28

Marketing Programs
Advertising

Cold Stone Creamery uses several different marketing programs to
increase consumer awareness and build relationships with ice cream
lovers worldwide. Through advertising, Cold Stone hopes to reach more
consumers and provide them with the ultimate ice cream experience.
Over the holidays in 2009, Cold Stone launched a mobile coupon
program where cable networks ran commercials asking viewers to text
CREAM to the number provided. Viewers that sent the text message
received a mobile coupon good for one free love-it size creation, when an additional treat is
purchased. The goal of the program was to get consumers inside the stores and ultimately drive sales.
The promotion targeted families, which allowed people of all ages to take advantage of the coupon, as
long as they had a mobile phone.
85
The mobile coupon also appealed to, green-minded individuals
who favor paperless options for coupons. It created more foot traffic in the stores and got consumers
excited because they were being given something free. This was the first time Cold stone used mobile
marketing and the promotion was considered a success.

In 2007 Cold Stone Creamery released the LOVE IT LOVE IT campaign which tests consumers devotion
to their ice cream. The goal of the campaign was to capture the publics love for ice cream and position
Cold Stone as the number one place in the world to eat ice cream. The campaign dramatizes the
consumers journey to a Cold Stone Creamery, and then creates obstacles that our put in their path,
thus testing their desire for ice cream. The advertisements were meant to be dramatic, humorous and
mysterious, they were supposed to draw consumers in and leave them wanting to know more. Each
advertisement was its own story that displayed a struggle about how far one will go to get something
they really want.
86
This was Cold Stones first integrated advertising campaign and they used television,
online, radio, and a LOVE IT LOVE IT micro site. In the end, the campaign had mixed results on
whether it was successful or not. People can stay engaged with the LOVE IT LOVE IT campaign by
going to loveit-loveit.com, where they will find an archive of advertisements, characters and bloopers.

85
http://www.mobilemarketer.com/cms/news/commerce/2617.html (October 12, 2010)
86
http://findarticles.com/p/articles/mi_m0EIN/is_2007_May_22/ai_n19155014/ (October 12, 2010)

29

On July 7, 2010, Cold Stone teamed up with First
Data Corporation to offer a new gifting application
through Facebook. "Thanks to social networking
sites, texting and the growing abundance of web-
enabled mobile devices, the way people interact as
well as give and receive gifts is changing," said Dom
Morea, First Data division manager of Mobile
Commerce Solutions.
87
Loyal Cold Stone fans can
now quickly and easily send a tangible gift (ice
cream Creations, shakes) to a friend or loved one's
Facebook account or e-mail address. Consumers can access the eGift social application through Cold
Stone's Facebook page or website and select one or multiple friends to send gifts to, by either by adding
them from Facebook or entering their e-mail address. The sender can then select which product they
would like to send their friend and can add a personal message. The sender of the eGift is able to then
proceed through the secure checkout process. After the sender checks out the recipient receives a
Facebook message, e-mail or both alerting them that they received a gift. Included in the message are
the account number and redemption instructions. The recipient can redeem the eGift item at any
participating Cold Stone location.
88
Cold Stone loves to make people happy and this gives people an
opportunity to share a Cold Stone moment even if they cannot be together.
Product and Service Offering
Cold Stone Creamery has something for everyone with over 11.5 million possible
creations.
89
The signature flavors are: Cake Batter, Chocolate, Coffee, Mint,
Strawberry, Cheese Cake, French Vanilla, Sweet Cream, and Sinless Sans Fat. In
addition to the signature flavors, stores offer local and season flavors such
as Cinnamon Bun, Pumpkin, Amaretto and candy cane. Cold Stone offers customers a wide
variety of mix-ins for their creations that include candy, fruit, nuts, cakes and cookies. For
consumers that prefer something other than scooped ice cream, Cold Stone has ice-cream
cakes, ice cream cookie sandwiches, smoothies, shakes, and iced and blended coffees.

87
http://www.retailcustomerexperience.com/article/127182/Cold-Stone-Creamery-debuts-social-e-gifting-program (October 12, 2010)
88
http://www.retailcustomerexperience.com/article/127182/Cold-Stone-Creamery-debuts-social-e-gifting-program
89
http://www.coldstonecreamery.com/icecream/about_our_ice_cream.html (October 13, 2010)

30

Distribution and Channel Programs
Cold Stone Creamery has 1,400 franchised stores with 194 in Canada and other foreign countries. Cold
Stone is expanding globally, and is constantly looking to work with people that share its passion for ice
cream. Cold Stone franchise owners use in-store, online, and direct marketing channels.
Pricing
Prices at Cold Stone vary by size, item and by store. Cold Stone sells its ice creams in 3 different sizes:
Like it (5 oz), Love it (8 oz), and Gotta have it (12 oz). There is no set price per size because it depends
on the ice cream and mix-ins. The average price range for the three sizes is: Like it, $3.00 to $5.00;
Love it, $3.20 to $4.20; and Gotta have it, $4.00 to $5.50. Each ice cream order includes one
topping, such as fruit or candy, and then each additional topping or cone is 75 cents. Prices for
smoothies and shakes vary by size, and are respectively $2.69 to $4.29. Cold Stone serves coffee either
iced or blended in small, medium and large and are priced $2.69, $3.69, and $4.09 respectively. Cakes
can be made in small, medium and large and are generally priced $10.00, $19.95, and $25.95
respectively. Cold Stone provides premade pints to go for $6.49 or customers can make their own, with
up to three toppings, for $7.99.
Sales strategy and Sales force effectiveness
Cold stone has been unique and innovative in its different sales strategies. The most recent launch of its
eGift program has been very successful thus far. The eGifting idea was introduced to increase instore
revenue and drive franchisee profitability.
90
Inside Network Inc., an industry research firm, states that
the U.S. market for virtual goods is currently estimated at $1.6 billion. Social networking sites account
for approximately half the total market for virtual goods, twice as much as one year ago. Unlike
traditional virtual gifting, Cold Stones eGift application is used to send tangible gifts that can be
redeemed in participating locations. The application was developed by ecommerce and payment
processing industryleader, First Data Corporation
91

Marketing research /intelligence gathering efforts
Cold Stones aims to provide ice cream lovers the ultimate customer experience. To gain insight on its
efforts, there is a brief online survey available to the public. The survey has a very colorful scheme,
background music and a comical song to stay consistent with the Cold Stone brand and ensure a

90
http://www.coldstonecreamery.com/assets/pdf/news/2010/pr_cold-stone-creamery_egift_070710.pdf
91
http://www.coldstonecreamery.com/assets/pdf/news/2010/pr_cold-stone-creamery_egift_070710.pdf

31

satisfying survey taking experience.
92
Mystery shopping is also used to enforce excellent customer
service and satisfaction. Cold Stone wants to make sure that every customer receives exceptional
service and has an unforgettable experience.
93

Public relations/publicity
Cold stone creamery established created its own personal website which provides information that
dates back to 2003. Establishing this website early on, took them from being a localized ice cream shop
to a globally recognized ice cream powerhouse, which rivals organizations such as marble slab. Cold
stone participates in major food shows, all over the world, to create product awareness and provide
sampling. For the E! Entertainment network's 20th Birthday party, Cold Stone provided an exclusive
custom ice cream blend, "E! Entertain-mint.
94
Cold stone also partners with the Make-A-Wish
Foundation to help grant wishes to terminally ill children. Most recently, Kate an 11-year-old with a
life-threatening condition, wished that cold stone would participate in the
Worlds Largest Ice Cream Social.
95
Cold stone created an exclusive flavor for
Kate and on September 30
th
, from 5:00 to 8:00 PM, customers could receive Kates
creation free. This was definitely the worlds largest social and Kates wish came true!

92
http://www.csc1.com/
93
http://www.satisfactionservicesinc.com/corporateoverview.htm
94
http://www.coldstonecreamery.com/about/press_room.html
95
http://www.coldstonecreamery.com/assets/pdf/news/2010/news_make-a-wish_090110.pdf

32

Financial Performance

Cold Stone creamery is the fifth largest ice cream shop in the United States and was ranked number 35
in the Entrepreneurs 2010 Franchise 500.
96
In 2008, its sales were about $430 million but have recently
experienced an increase in sales due to new and successful items such as, cup cakes and coffee. Cold
Stone is expecting the growth in sales to continue from recent co-branding efforts with Tim Hortons
INC.
97
Cold Stone has been franchising stores since 1994 and currently has 1,400 franchised units,
including 194 in Canada and other foreign countries. Since 2008, this number of new stores opening has
dropped domestically, but has risen in foreign countries, including the 13 new stores opened that have
opened in Canada this year.
98
Even with the domestic setbacks, Cold Stone is still considered to be one
of the fastest growing franchises.
99
In order to open a franchise, a total investment from $292,525 to
$440,275 would be necessary. The potential owner would also have to be able to pay the $42,000
franchising fee, and meet the $125,000 cash liquidity requirement. Cold Stone is a private company and
does not provide sales or potential profits to interested franchisers.

96
"Entrepreneur." 2010 Franchise 500 Rankings. Entrepreneur Media, 2010. Web. 13 Oct 2010
<http://www.entrepreneur.com/franchises/rankings/franchise500115608/2010,.html>.
97
Mintel Oxygen. Ice Cream Shop Analysis: Cold Stone Creamery. Mintel Group, 2010. Web. 13 Oct 2010.
<http://academic.mintel.com.ezproxy.lib.usf.edu/sinatra/oxygen_academic/search_results/show&/display/id=393515/display/id=501043>
98
"Entrepreneur ." Cold Stone Creamery. Entrepreneur Media, 2010. Web. 13 Oct 2010.
<http://www.entrepreneur.com/franchises/coldstonecreamery/282219-3.html>
99
Mintel Oxygen. Ice Cream Shop Analysis: Cold Stone Creamery. Mintel Group, 2010. Web. 13 Oct 2010.
<http://academic.mintel.com.ezproxy.lib.usf.edu/sinatra/oxygen_academic/search_results/show&/display/id=393515/display/id=501043>

33

Additional Company Characteristics
Technical Capabilities
Cold Stone has used many innovative technological resources to attract its customers. Customers can
interact with Cold Stone online by creating a My Cold Stone account, which allows the customer to have
a personalized space on the Cold Stone website. My Cold Stone account holders are eligible to receive
special offers and join the birthday club. Cold Stone uses the club and social networking as a cost
effective alternative to traditional advertising. Cold Stone does use any special gadgets to blend its
creations, but they do use state of the art ovens, refrigerators and freezers to provide the freshest treat
possible.
Available Resources
Cold Stone provides new franchise owners all the resources they need for success. The entire processes
of starting a new store, completing the necessary training and opening the doors for business takes
about a year. Not rushing this process ensures that the new owners will represent the Cold Stone brand
and exceed expectations. Each new owner is required to enroll at Cold Stone University, at the
headquarters in Scottsdale, AZ, for approximately eight weeks. Cold Stone University offers courses
where the new owners learn everything they need to know, including how to present the Cold Stone
experience to their future customers.
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Production Capacity
Cold Stone provides each customer with a unique experience and each
creation is hand made in front of the customers eyes. Cold Stone does not
pride itself on producing a quick product, but instead on the consistence
and quality of its treats. Cold Stone customers do not expect quick service
and visit the store to have an experience and indulge in their favorite ice
cream creation. Cold Stone does have options for those with busy
schedules such as pre-made creations, cakes and pies. Every store is
different, but most have several tables located inside and outside the
store.

100
Franchise overview www.coldstone.com October 13, 2010

34

Career Opportunities
There are over fourteen hundred stores operating around the world that provide a variety of career
opportunities. A new Cold Stone can be opened almost anywhere, allowing some customers to own a
piece of their favorite treat if they qualify. The process of becoming an official owner of a Cold Stone
can take as little as three months. Each owner is followed while they secure a location, negotiate the
lease and finalize the location specifics. Each owner is sent to Cold Stone University, where they are
taught to live and exceed Cold Stones expectations.
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The entire process, including training, can take
up to a year to complete.
All Cold Stone locations have career opportunities on both large and small scales. Each store provides
full time, part time and management opportunities. Small scale jobs, like crew members, are great for
teenagers and are popular first jobs. A potential crew member is auditioned instead of having to go
through the typical interview process. Crew members prepare ice cream creations while providing the
ultimate customer experience. Crew members are enthusiastic, dedicated, team players and have
excellent customer service skills. On a larger scale Cold Stone provides opportunities at its corporate
headquarters in Scottsdale, Arizona. Corporate opportunities include web design, formulating
promotions and creative concepts, and testing, finance, accounting, managing, training, customer
service and supply.
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101
"Cold Stone Creamery Franchise - Facts on Ownership." Cold Stone Creamery - The Ultimate Ice Cream Experience. Web. 12 Oct. 2010.
<http://www.coldstonecreamery.com/franchises/facts_on_ownership.html>.
102
"Cold Stone Creamery - Steps to Becoming a Franchisee." Cold Stone Creamery - The Ultimate Ice Cream Experience. Web. 12 Oct. 2010.
<http://www.coldstonecreamery.com/franchises/steps_to_becoming_a_franchisee.html>.

35

SWOT Analysis
Strengths

Statement of
Internal Strengths
Company Performance Importance Strengt
h Index
Number
1=Minor 2 3 4 5=Major 1=Low 2 3 4 5=High
1. Growth X X 20
2. Store locations X X 20
3. Cold Stone
Creamery
Customer
experience
X X 25
4. Premium
ingredients
X X 25
5. Advertising
campaign
X X 12
6. Product offerings X X 20
7. Marketing
research
X X 15
8. Public relations X X 16
9. Financial success X X 20
10. Consistency &
quality
X X 16
11. Website quality X X 12
12. Facebook page X X 12
13. Co-branding X X 15

1. Cold Stone Creamery is a market leader and ranked third in a 2008 list for growth of United States ice
cream chains. There are 15 locations in the Tampa Bay Metropolitan area.

2. Locations are most commonly found in strip malls, near movie theaters and in other heavily
populated and trafficked areas.

3. Consumers in target market are looking for more than just ice cream; Cold Stone Creamery provides
and outstanding customer experience that can be compared to Starbucks.

4. Cold Stone only uses the finest super-premium ingredients to make its ice cream fresh daily.

5. Cold Stone Creamery teamed up with First Data Corporation to offer a new gifting application that is
available through Facebook.

36

6. With over 11.5 million possible ice cream creations and additional menu items, Cold Stone has
something for everyone.
7. Cold Stone offers a brief online survey available that is open to the public. Mystery shopping is a
strategy that Cold Stone uses to enforce excellent customer service and ensure superior customer
satisfaction.

8. All Cold stone press releases can be found on its website and is archived back to 2001. The company
makes community service and working with charities a priority.

9. Cold Stone is the fifth largest ice cream shop in the United States and sales have recently increased
from new menu items and its co-branding efforts.

10. Cold Stone Creamery provides a consistent customer experience and quality treats to consumers.

11. An interactive website where a consumer can create a My Cold Stone account which is a personalized
space on the Cold Stone website. The website lists anything anyone would want to know about Cold
Stone, except for financial performance because it is a private company.

12. Cold Stone utilizes Facebook and engages its customers by posting promotions, contests and fun
facts on its page.

13. Recently, Cold Stone decided to begin co-branding which will provide more options for its customers
and capture a bigger target market.

37

Weaknesses

Statement of
Internal
Weaknesses
Company Performance Importance Strength
Index
Number
1. Price X X X 25
2. Waiting Time X X 20
3. Franchisee
Training
X X 6
4. Limited
Expansion in
the Saturated
Market
X X 9
5. Volume
Limited to
Employees
X X 12
6. Large portion
sizes
X X 12

1. Consumer confidence is at an all time low and customers are turned away from Cold Stones high
priced creations.

2. Each Cold Stone creation is made especially to the customers satisfaction, which can lead to long
wait times for customers.

3. The intense franchisee training can take over a year to complete which can turn away potential
investors.

4. Cold Stone offers a product in an extremely saturated luxury good market leading to limited future
expansion possibilities.

5. Cold Stone offers a product in an extremely saturated luxury good market leading to limited future
expansion possibilities

6. Customers are watching their portion sizes, and Cold Stone offers generous servings.

38

Opportunities

Statement of
External
Opportunities
Activeness Success probability Opportunity
Index
Number
1. The Hispanic
market
X X 25
2. University of
South Florida
X X 25
3. Health
conscious
consumers
X X 15
4. Smaller ice
cream shops
are going out of
business
X X 6
5. Consumers that
eat organic
X X 12
6. Tampaeatz.com X X 16

1. As stated in our internal analysis, the Hispanic market in Tampa Bay area is rapidly growing and
would be an excellent opportunity for market growth

2. University of South Florida- Placing a store on the University of South Florida campus could be very
profitable and/or have USF partner with the off campus Cold Stone nearby.

3. Cold Stone should consider creating new flavors with nutrition content that would appeal to health
conscious consumers. This is a trend that is not fading in America.

4. Smaller ice cream shops that have to close because of the economy, will give Cold Stone an
opportunity to open new stores in the area to gain additional market share.

5. The percentage of consumers that eat organically is increasing. Creating organic flavors would meet
the needs of these potential customers.

6. TampaEatz.com allows consumers to conveniently place an Cold Stone ice cream order online and
get it delivered to their home within one hour.

39

Threats

Statement of
External Threats
Likelihood of Occurrence Seriousness
Index
Number
1. Bad Economy X X 25
2. Competition X X 15
3. Health
Conscious
Movement
X X 9
4. Credit Crunch X X 25
5. Lacking
Resources
X X 12

1. The United States is in a recession and the economy has only grown 1.6% this year. Unemployment
rates are at an all time high, especially in Florida. People have less disposable income to spend
which could cause them not to go out for ice cream.

2. There are many competitors in the frozen dessert industry that offer similar products such as,
Marble Slab Creamery and Ben and Jerrys.

3. Healthy lifestyles are becoming increasingly popular in the United States. About 38.7% of adults
watch their diet and would probably prefer to eat healthier deserts.

4. It is becoming more difficult to obtain a personal or small business loan because banks are scared to
lend money due to increases in defaults.

5. It is possible that a Fat Tax will be applied to foods high in sugar content, which could affect the
production and cost of the ice cream.

40

Marketing Goals and Objectives
Goals

Implement new marketing strategies to increase customer awareness throughout Tampa Bay.
Develop Marketing techniques to better target the Hispanic community in Tampa Bay.
Open Cold Stones in areas throughout Tampa Bay that could be profitable for a Cold Stone
Creamery.
Add additional menu items and/or flavors that cater towards a health conscious consumers.
Continue to grow as a franchise in the global market and throughout the United States.
Maintain the current ranking as one of the fastest growing franchises.
Increase website interaction at www.ColdStoneCreamery.com
Increase the protection of copyrighted and trademarked property of Cold Stone Creamery to
sustain the super-premium ice cream brand.
Increase community relations with the Make- A-Wish foundation
Maximize the use of the Public Relations department to insure positive relationships with Cold
Stone customers
Create an effective customer loyalty program for the Tampa Bay area.

Objectives

Open 3 new locations in the Tampa Bay area by December 2012.
Increase the number of Cold Stone customers in Tampa Bay by 15% by December 2011
Open one new Co-branded Cold Stone in the Tampa Bay are by December 2011.
Increase Revenue at each franchise by 15% during 2011.
Run a promotion with USF during the spring semester of 2011.
Boost the sales for holiday inspired treats by 10% this year (year end 2010).
By December 2012, increase the number of repeat customers by 15% through a loyalty card
program.
Create an Organic flavor by May of 2011 and offer it in at least one Cold Stone store as a six
month trial.

41

Marketing Strategies
Target market

The target markets are geographically segmented for the Tampa Bay region and include the following
counties: Hillsborough, Hernando, Pasco, and Pinellas. The United States Census Bureau reported a total
population of 2,747,272 for the Tampa Bay region.
Primary market: 249,985 consumers who are 15 - 34 years old.
Demographic segmentation: age
o In 2009, Mintel reported that 44 percent of their 18 - 24 year old respondents and 38
percent of 25 - 34 year old respondents had visited an ice cream shop in the past 3
months. (Ice Cream Shops US) Consumers aged 15 - 17 were not included in this
particular study, but are part of the primary target market because teens are likely to
visit ice cream shops. In 2003, BuzzBack Market Research took a survey of 500 teens and
43 percent would choose to snack on ice cream if given options. (Ice Cream and Frozen
Novelties)

Psychographic segmentation: Impulsive behavior
o In 2009, Mintel reported that 39 percent of their respondents decided to go to an ice
cream shop at the very last minute and 42 percent decided to go within the hour. (Ice
Cream Shops US)

Secondary market: 346,676 families with children, who have an annual income greater than $25,000.
Demographic segmentation: income
o The secondary market will include families making an annual income of at least $25,000.
Cold Stone is considered super premium and its products are usually priced higher
than other ice cream shops

Special occasion segmentation: indulgence
o Marketresarch.com reported that 60% of their respondents with children aged 3 12;
allow them to indulge in small treats. (The U.S. Kids Food Market)

42

Value Proposition

Company and
Product
Target Customers Benefits Price Value Proposition
Cold Stone
Creamery
Adults and Families
with Children
A superior customer
experience
20%
premium
The worlds greatest ice
cream, with the highest
quality ingredients, for a
premium price.

Positioning Statement

Cold Stone: To young adults and families, who like to indulge in super premium ice cream, Cold Stone is
where you can go to create your own customized ice cream treat. At Cold Stone, ice cream treats come
with superior customer service and a unique customer experience.

43

Issues Analysis

Cold Stones biggest strengths are the number of strategically placed store locations, its image, the
customer experience provided and a history of financial success. Cold Stones are found in heavily
populated, high traffic areas where consumers are most likely to impulsively buy ice cream. Perspective
owners must meet all of Cold Stones regulations, including a population requirement surrounding the
new store. Cold stone has goals to continue expanding throughout the United States and across the
globe and it is predicted that Cold Stone will remain a market leader in the super premium ice cream
industry. Cold Stone creates a unique experience for each customer which is consistent with its brand
image. Consumers value specialized treatment and entertainment, making them more likely to pay
higher prices. Cold Stone has experienced strong financial success in most of its franchises. Recently,
there has been Cold Stones go out of business, but that number is outweighed by success of other stores
and continued expansion of the company. Financial success can be contributed to many things, but the
strict criteria Cold Stone makes perspective franchisees meet; helps ensure profitable ice cream shops.
Strict regulations also help keep each Cold Stone franchise consistent with the brands overall image, and
allow the company to better reach its objectives and goals.

Cold Stone strengths are important, but it is also important to monitor its biggest weaknesses: price,
wait time and portion sizes. Cold Stone has high prices, and there are plenty of consumers willing to pay
for a Cold Stone treat, but there is also a huge population that cannot afford Cold Stone. In Florida,
consumers are still getting laid off and remain unable to find employment. This leaves many people
without the disposable income they once had to spend on things like Cold Stone. Consumers that still
have jobs are not spending as much because of low consumer confidence. It is recommended that Cold
Stone review its pricing strategy and consider a revision. The high wait time at Cold Stone is because
each treat is made specifically for the customer. One of the companys strengths is creating an engaging
customer experience, which creates a weakness because this increases the customer wait time. Cold
Stone has to-go options for its customers that are in hurry, but that still doesnt ensure quick payment
and checkout. Cold Stones smallest serving, like it, is too big for someone watching their weight or
for health conscious consumers. The percentage of overweight Americans is rising and when they
decide to get healthy, they will have to cut Cold Stone out of their diet. To remain competitive, Cold
stone could reevaluate its serving sizes and consider creating a taste it size, for those that want a

44

smaller treat. Indulging is small sized snacks is an emerging trend and would meet the needs of
consumers watching their weight.

If Cold Stone successful exploits its best opportunities, it would create new strengths for the company.
The Hispanic market is growing in the Tampa Bay area, and this is a demographic that is known to like
sweets. Currently, there is a huge opportunity to market to this population and get them to value the
Cold Stone experience. Cold Stone should consider creating new flavors that would specifically appeal
to the taste buds of this group. There is a Cold Stone located near USF, but it is not marketed well to the
USF population. This is another huge opportunity for Cold Stone because of the heavily populated
campus. The promotion strategies should be reviewed to create new ways the Cold Stone shop could
better market to the USF population. Cold Stone could also exploit the needs for people who prefer to
consume organic food items. The number of consumers who prefer to eat organically is on the rise
and Cold Stone should consider creating flavors with premium ingredients that are also considered
organic.

It is important for Cold Stone to monitor its top threats: the economy, its competition and the increase
in the number of health conscious consumers. The economy is considered to be in recovery mode, but
Florida is worse off than most of the nation. This has also resulted in a credit crunch and it is very
difficult to for people to obtain loans for personal use or for a small business. Banks are scared to lend
money because of increasing default risk and when they do lend money, it is at a higher interest. The
areas where the credit crunch is most severe, Tampa Bay being one of them, should be reviewed so Cold
Stone can stay on target for its expansion goals. The number of consumers that value healthy lifestyles
is increasing and is also a major threat to Cold Stone. As consumers become more health conscious,
they will begin to value healthier dessert options like frozen yogurt. The abundance of frozen yogurt
shops opening in Tampa Bay can be attributed to this threat and it is also creating increased
competition. Many consumers are also opting to buy ice cream at the grocery store because it is less
expensive. These consumers are now trying to save money and indulge at home instead of indulging in
higher priced foodservice ice cream, making packaged ice cream a huge threat to the continued success
of Cold Stone.

45

Action Plans
Valpak Savings Coupons

Objective: To increase awareness and foot traffic for the Cold Stones in the Tampa Bay metropolitan
area.
Target Market: Primary and secondary markets.
Description of the Program: A coupon will be placed in the Valpak mailings offering: buy two love
it size ice creams get one of equal size free. The coupons will be
offered to all individuals within our target markets. This program will
appeal to cost conscious consumers and will be a way Cold Stone can
try to establish relationships through value.
Who: The different Cold Stone franchise owners at the locations in the Tampa Bay metropolitan area.
Timing: Coupons sent out in April 2010. Good through September 2010
Budget: We will be sending the Valpack to our Primary target market (249,985 consumers) and
secondary target market (346,676 consumers). The total number of consumers that will
receive the coupon is 596,661. Valpack can be purchased for 100,000 households for
$300.00. We will need 600,000 @ $300.00 per 100,000 households = $1,800.00 total to print
the coupons. The cost of consumers redeeming the coupon is ($3.00 love it size x 5%
reach) (29,833 coupons redeemed) = $89,499. Total Valpak Budget: $91,299
Measurement: The coupons will be collected at each of the 15 locations and sales will be evaluated
before the promotion is run again.

46

Free Smoothie Sample at Gasparilla Distance Classic Race Expo

Objective: To reach out to consumers who are health conscious and give them the opportunity to
taste a Cold Stone smoothie.
Target Market: Half Marathon, 10k, 5k, and one mile fun run race participants
Description of the Program: Free samples of Cold Stone Smoothies will be given away at the
Gasparilla Distance Classic race expo. At least 20,000 people will
come through the expo over the two day period which gives Cold
Stone a unique opportunity to target this health conscious group.
Who: The different Cold Stone locations in the Tampa Bay metropolitan area will decide who will work
the booth at the expo.
Timing: During the race expo hours at the Tampa Convention Center (Friday, Feb. 25, 2011, 10 am
8:00 PM and on Saturday, Feb. 26, 2011, 6:00 AM 5:00 PM).
Budget: Booth rental cost = One (1) 10 x 20 Booth Space (Corner/Interior- includes two (2) 6 tables,
four (4) chairs, wastebasket & sign) = $2,000. Cost of samples is ($0.04 per 1 Oz. paper cup
w/smoothie)*(1000 samples per hour)*(21 hours) = $840. Total Cost = $2,840
Measurement: The success of this plan will be measured by how much sales increase during the
month of March after the samples are given out during the race expo. Marchs sales
should be compared to the previous months to see if there is a difference.

47

Customer Loyalty Card

Objective: To turn one-time or infrequent customers into regular customers.
Target Market: All Cold Stone customers
Description of the Program: Customers that visit their local Cold Stone can pick up a punch card at
the counter when they are paying for their treat. Customers will
receive one punch for each ice cream treat or smoothie they buy but it
excludes kid size ice cream treats. Once the customer fills their card
with ten punches, they can redeem it for one free love it size treat
or smoothie.
Who: The different Cold Stone franchise owners in the Tampa Bay metropolitan area.
Timing: The promotion will run indefinitely.
Budget: It is estimated that each store will give out at least 5 free love it size treats per month.
$3.39*(5) = $16.96. $16.95*(15 stores) = $254.25 a month. = $3,051 a year.
Measurement: The success will be based on the percentage increase in sales and how many fully
punched cards are collected.

48

University of South Florida Freshman Orientation Promotion

Objective: To increase awareness and foot traffic for the Cold Stone creameries.
Target Market: New Students that will attend the mandatory orientations at the different University
of South Florida locations
Description of the Program: Cold Stone will provide a stack of post-its that can be put in incoming
freshman student orientation bags. The post-it on top will be a
promotional coupon that students can tear off and bring in to the
nearest Cold Stone location. The new student will receive 50 percent
off the original price of one love it size ice cream.
Who: The different Cold Stone locations in the Tampa Bay metropolitan area will honor the coupons.
Timing: Fall 2011, during the freshman orientations at all University of South Florida campuses.
Budget: There will be roughly 5000 incoming freshman at the four different USF locations. 5000 post-
its can be ordered through Stick2it.com for $ 1,370 and it includes shipping. We estimate 20
percent of the freshman will take advantage of this [((5000*.20) = 1000 freshman)(1000*
2.00 loss from sale)] = $2,000 cost. Total cost for this promotion is $3,370.
Measurement: The success of this promotion can be measured by how many coupons are turned in at
each of the stores and if sales increased during the remainder of the semester.

49

Tuesday Free Kids Giveaway

Objective: The purpose would be to get parents to bring their kids into Cold Stone and hopefully
indulge in a treat for themselves.
Target Market: Parents with children age 10 and under
Description of the Program: During the summer season (when kids are out of school) kids age ten
and under can receive a free kids size ice cream on Tuesday nights
from 5:00 PM to closing. Giving treats away to children ten and under
will create a sense of value to adults and will as a result drive
customers to come in when they otherwise would have passed on
super premium ice cream.
Who: The individual franchises will honor Kids Tuesday nights at the Cold Stones in the Tampa Bay
metropolitan area.
Timing: Every Tuesday night, from 5:00 PM to closing and it will continue indefinitely.
Budget: (Kids 3 Oz. @ 1.69 )*(20 kids per day) = $33.80*(4 days per month) = $135.20*(12 months
per year) = $1,622.40*(15 stores) = $24,336.
Measurement: While the kids ice creams are free, they will still be rung up on the register so the
different locations can keep track of how many free kids cups are given out each
Tuesday night nights. The success of the promotion will be measured by
how much sales increase on Tuesdays. The Stores will track to see if sales
increase from parents or older siblings that wont be receiving a free ice
cream.

50

Dog Yappy Hour

Objective: To try to increase store traffic and sales by encouraging consumers with pets to enjoy a
treat together. It will also encourage them to sit and relax and socialize with each other,
hopefully making Cold Stone a regular meet up spot.
Target Market: Owners with dogs who like Super premium ice cream
Description of the Program: On the first Friday of the month dogs will get a small taste of ice cream
with the purchase of a like it, love it or gotta have it. Owners
will be able to bring their dog(s) to the 15 Cold Stone locations in the
Tampa Bay Metropolitan area and will create an environment where
dog owners will be able to socialize with other dog owners. Each dog
will enjoy a 1 oz. sample size of vanilla ice cream with a dog treat
placed on top. Dog Yappy Hour will take place from 3 p.m. till closing.

Who: The respective Cold Stone franchises in the Tampa Bay Metropolitan area will honor the
promotion.
Timing: First Friday of each month from 5pm till close from May to August
Budget: (1 oz. @ $0.50) x (15 dogs per day) x (4 months) x (15 stores locations) = $450. $7.00 bag of
dog bones (@ about 75 bones per bag) x (15 store locations) = $105. Total Dog Yappy Hour
Budget: $555.00
Measurement: The success of this promotion will be measured by keeping track of sales and seeing if
there is an increase. After the program ends in August, the stores could also
measure success by tracking September sales to see if the dog owners keep coming
to Cold Stone.

51

Student Study Break promotion

Objective: To give students a reason to take their study break at Cold Stone during finals weeks.
Target Market: All college students in the Tampa Bay metropolitan area
Description of the Program: During finals weeks students will be given the opportunity to receive a
gotta have it size for the price of a like it size at all 15 locations in
the Tampa Bay Metropolitan area. Students will be required to show a
student ID. This promotion will give students the added
encouragement to have a study session at Cold Stone creating a
positive environment for meeting and treating at the local Cold Stone
locations.
Who: The different Cold Stone locations in the Tampa Bay metropolitan area will honor the Student
IDs
Timing: First two weeks in December and first two weeks in May
Budget: ($3.39 $3.29) = 0.10 x (20 students per day) = 2.00 x (4 weeks) x (15 store locations) =
$120.00 total.
Measurement: The success of the program will be measured by the increase in foot traffic over the
finals weeks during the two different time periods the promotion is held.

52

Clear Channel Outdoor Digital Billboard

Objective: Increase awareness of store locations and store traffic by showing indulgent treats from
Cold Stone ready for consumption
Target Market: The entire Tampa Bay Metropolitan Area
Description of the Program: Cold Stone will implement a series of advertisements on all 12 clear
channel outdoor billboards located in the Tampa Bay
metropolitan area. The advertisement will be designed
to increase this impulsive buying behavior across the
target market. Cold Stone will buy into the Tampa Bay
Half Network which means the advertisements will
appear in every other rotation in the area. This
provides Cold Stone with 6,420 spots per day which
amounts to a reach percentage of 68.7. Thats 539,280
total spots. Each advertisement will contain a key super-premium ice cream term. This will be used to
measure success. Mentioning the term will enter each customer in a contest for a $100 dollar gift card.
The drawing will be held at each store location at the end of the 12 weeks.
Who: The 15 Franchise owners of the Cold Stones in the Tampa Bay metropolitan area.
Timing: For 12 weeks beginning March 2011
Budget: 12 weeks on Half Network = $66,000. $100 gift card x 15 store locations = $1,500. Total Clear
Channel Digital Billboard Budget: $67,500
Measurement: The key term mentioned above will help Cold Stone to understand the reach of each
particular billboard. Using this term and the sales associated with each term Cold
Stone will be able to determine the success of the campaign.

53

Senior Citizen Afternoon Happy Hour

Objective: To increase sales and foot traffic and try to appeal to a different demographic that may not
normally choose to go to Cold Stone.
Target Market: Senior citizens, who are over the age of 65, in the Tampa Bay metropolitan area.
Description of the Program: Senior Citizens will be offered one dollar off a like it size ice cream
from 12:00 PM to 3:00PM on Thursdays. In an effort to create
awareness Senior Citizen Afternoon Happy Hour will be promoted at
senior centers throughout the Tampa Bay Metropolitan area. The
program is designed to appeal to a demographic that finds deals to
be as important as quality. By offering this deal Cold Stone will be
able to offer greater value to senior citizens.
Who: The different Cold Stone franchises in the Tampa Bay metropolitan area.
Timing: During snow bird season, from November to February, on Thursdays from 12:00 PM to
3:00PM.
Budget: 10 seniors x 15 stores = 150 senior citizens. = $ 150.00 x 16 Thursdays = $ 2,400
Measurement: The success of the promotion can be measured by tracking the sales generated on
Thursdays from 12:00 PM to 3:00 PM from senior citizens.

54

Monthly Customer Drawing

Objective: To give back and thank customers while also giving them an incentive to indulge at Cold
Stone and turn them into more frequent visitors.
Target Market: Customers at the different Cold Stone locations
Description of the Program: This will be a monthly drawing where two customers will each receive
$15.00 Cold Stone Gift cards. Each store in the Tampa Bay area will
have a box where customers can fill out a card with their contact
information and enter it to be part of the contest. The winners will
be pulled on the 15
th
of each month and notified within 24 hours.
This promotion is also consistent with what Cold Stone already does
in the community. It will be a way for the company to give back to
the Tampa Bay area and hopefully create repeat customers and
positive buzz.
Who: The different Cold Stone locations in the Tampa Bay metropolitan area.
Timing: Once a month for a trial for a trial period of 3 months.
Budget: ($15.00 for each gift card x 2) = $30.00 ($30.00 x 15 stores) = $450.00 total
Measurement: After the three month trial period, the store owners will evaluate if the program is
worth continuing at their location. The respective store owners will see if customers
are getting excited or if the program is creating a buzz in their store and it will be up
to them if they want to continue. They can measure the success of the program if
they see an increase in foot traffic and sales or patterns of repeat customers.

55

Marketing Budget
Valpak Savings
Coupons
Free Smoothie
Sample at
Gasparilla
Distance Classic
Race Expo
Customer Loyalty
Card
University of
South Florida
Freshman
Orientation
Promotion
Tuesday Free Kids
Giveaway
$91,299
46.6%
$2,840
1.45%
$3,051
1.55%
$3,370
1.72%
$24,336
12.42%
Dog Yappy Hour
Student Study
Break
promotion
Clear Channel
Outdoor Digital
Billboard
Senior Citizen
Afternoon Happy
Hour
Monthly
Customer
Drawing
$555
.29%
$120
.06%
$67,500
34.45%
$ 2,400
1.23%
450
.23%

Total Budget Expenditure: $195,921
Cold Stone requires each of its stores to spend 3% of its sales on marketing. We estimated that the Cold
Stones in the Tampa Bay area each make $380,000 per year in sales. Based on this estimate, our total
budget is equal to 3.43% of each stores average annual income. We decided to raise the current
budget that the stores have now so we can better achieve our goals and objectives.
The most important and expensive action plan it the Valpak savings coupons. Valpak coupons are an
important strategy that would allow our customers to save money on their ice cream while also
increasing foot traffic and sales for the Cold Stone stores. The budget for the Valpak savings coupons
was based on 596,661 consumers in our primary and secondary target markets. The coupon would
allow consumers to buy two love it ice creams and get the third one free.
We decided to include the University of South Florida and students in two of our plans because it is such
a huge school in this area, with multiple campuses and potential customers. We decided to give new
students a discount during orientation, so that they would get to know the cold stone locations near
school and possibly come back during the school year. This strategy targets new students in the
beginning of the semester while or next strategy targets all students at the end of the semester. During
finals week, we created a promotion that will give students a discount and a study break. Students can
come into any of the Cold Stones in the Tampa Bay area, show their student ID, and will be able to buy a
Love it size treat for the price of a like it.

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What We Learned

Melinda: The most valuable thing that I took from this project was being able to work with an
extremely motivated group and create a great marketing plan. I especially enjoyed learning about the
marketing aspect of a business, as well as working with my team mates. Everyone did an equally
amazing job, and everyone was able to meet deadlines and stay on top of the project. At first, I had
some difficulty with the research, but this project improved my researching and writing skills immensely.
I had never done a marketing plan before; it was a great learning experience and it also increased my
interest in the marketing field. Other then the hours of tedious research, I honestly enjoyed doing my
parts of the project.
Ashley: The most valuable learning experience for me was seeing all the work that goes into a
marketing plan. A marketing plan isnt just full of creative and fun ideas to try to implement into a
business. The marketing plan is almost all background and research information in order to discover
beneficial promotions or changes in the business. The most enjoyable part of this project was my group;
we were all extremely motivated to getting things accomplished quickly and to its full potential. This
allowed the group to get along and each individual was able to work to their full potential. I am a
creative person and so I enjoyed the action plans the most. My least favorite phrase was the research
phases due to the lack creativity that it involved.
Kristin: Working on this marketing plan was one of my favorite projects I have done at USF. This is my
last semester, and our group was the best one I have ever been a part of. We are all hard workers, who
like to give 100% and turn in our best work. When we formed our group, we made sure we all had the
same expectations of what a good project was. We set clear deadlines, and everyone followed
through. We figured out early on what each of our strong points were, and tried to divide up the
project so that we could deliver excellent work, every time. My least favorite part of the project was
figuring out the numbers for the target market because it seemed like it took way longer than I
expected! After that, I thought the whole thing was pretty easy, especially when you have a group like
ours. I really enjoyed this class and working with team to create a successful marketing plan.
Sean: I found that creating a market plan takes a lot of creativity and a good strategy to be able to
compete in todays business world. This was my first marketing plan and I feel like I have expanded my
knowledge and that it will help me in my career. While creating different advertising and promotional

57

strategies, I found that being innovative with new ideas can really help grab your target markets
attention. I also found the SWOT analysis extremely useful and helped us make the right decisions to
keep the company successful and headed in the right direction.
Tom: During the completion of the marketing plan, I realized that I really enjoy working with people.
Verbal and written communication are very important skills to have in the work place and this project
gave myself and my teammates a real-life experience to both learn from and enjoy. My group was
extremely successful in making deadlines, working together, and understanding each others strengths
and weaknesses. As a result, our finished project is rightly a compilation of our hard work. My favorite
and most valuable learning experience during the course of the project was the research phase. I have
always had a creative mind but I found it very interesting to take the time to understand the market we
were working on and to find information that would help us create the correct promotional mix. During
this process I actually found it difficult to put down my computer as I was constantly looking for market
research that helped to solidify our claims. Overall, I am extremely satisfied with my groups enthusiasm
and energy and I truly enjoyed Marketing Management and our Cold Stone Creamery marketing plan.

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