The new Aggie Maggie Ice Cream Parlor has been a smashing success in the 12 mont
ID: 455181 • Letter: T
Question
The new Aggie Maggie Ice Cream Parlor has been a smashing success in the 12 months since it replaced a previously failing ice cream store located on Whitney Avenue in New Haven, CT. Sales have consistently been above plan each month of operation, and the previous owner’s problems of poor customer service and occasional shrinkage have been corrected to the new owner’s satisfaction. As expected, the customer base for the store is mainly students, faculty and employees of the 2 colleges located in the immediate area. The store continues to sell 20 flavors of upscale ice cream in single serve cones and dishes, using mainly college students for the counter staff, supervised by an assistant manager. The ice cream is sourced from a local manufacturer who provides a premium quality version of the 20 flavors which Aggie Maggie offers.
The new owner is now very upbeat and wants to open 2 or 3 similar new stores, probably diversifying somewhat by adding some new products or services. He will need to convince his bank to provide the loan necessary to fund this expansion program. He has asked you, his longtime consultant, to provide answers to the following banker’s questions:
1. Business model
2. Current overall strategy
3. Are there any strategic alliances which would benefit the Aggie Maggie stores?
Explanation / Answer
Business Overview
Fundamentally the role of the business is selling 20 ice cream flavors and introducing soft drinks and other sweets under the concept of Maggie Aggie Ice Cream Parlor.
To do this, the distribution is strategically based on the acquisition of an ice cream franchise by a company that has experience in the market as Maggie Aggie Ice Cream Parlor, who will provide and regulate the standards of preparation, presentation and quality of the product.
Objective market
Our product is mainly aimed at those people walking around our store to be located in areas near educational institutions, being particularly attractive to children and young students who are the main consumers of the frozen product.
It is also expected to reach all those who for work close to the store or by simple leisure require a refreshing snack on their way.
In the expansion of the store to two new franchises, it seeks to open one of the establishments near a school and the other in a shopping mall with plenty of parking area which includes in the potential market persons traveling in vehicle.
Competition
According to visual research, do not exist in nearby destination less than 1km, store(s) with similar characteristics to ours distributing ice cream.
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