Cold Stone Final Project

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
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Marketing Programs..............................................................................................28
Advertising.........................................................................................................28
Product and Service Offering.............................................................................29
Distribution and Channel Programs....................................................................30
Pricing................................................................................................................30
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
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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
Senior Citizen Afternoon Happy Hour....................................................................53
Monthly Customer Drawing...................................................................................54
Marketing Budget.....................................................................................................55
What We Learned.....................................................................................................56
What We Learned
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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
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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“Gotta Have it” can order larger quantities “to go” in either “mine”, “ours” and
“Everybody’s” 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.
6
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
3 “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
7
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.
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 &
6 “Foodservice Frozen Yogurt Is a Soft-Serve Market” Ice Cream and Frozen Desserts. P.71. Marketresearch.com
2010
7 “Haggen-Dasz Five Stands Out” Ice Cream and Frozen Desserts. P. 293 Marketresearch.com 2010 September 8,
2010
8
Jerry’s, 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 Moo’s 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
Competitive Trends
Brand Competitors
8 USDA says Organic is Mainstream” Ice Cream and Frozen Desserts. P. 66 Marketresearch.com 2010 September 8,
2010
9 “The Major Ice Cream Chains” Ice Cream and Frozen Desserts. P. 157. Marketresearch.com 2010 September 8,
2010
9
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.12 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 company’s rebranding initiative. In an effort to
reposition its global brand image to better reflect its gourmet ice cream artistry
10 Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities…6th Edition, pg.167
11 www.yellowpages.com (September 14, 2010)
12 Ice Cream Shop – US – December 2009, Mintel Oxygen, Leading Companies

10
experience, Marble Slab Creamery collaborated with contestants from the television
show Top Chef to create, “Celebrity Sundaes.”14
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.16In 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 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.
14Ice Cream Shop – US – December 2009, Mintel Oxygen, Brand Qualities

18 Ice Cream Shop – US – December 2009, Mintel Oxygen, Brand Qualities
19 Ice Cream Shop – US – December 2009, Mintel Oxygen, Advertising and Promotion
11
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
Ben & Jerry’s brand’s identity is shaped by innovative combinations of traditional

24
ingredients paired with some very unorthodox names. They have roughly 750

22Ice Cream Shop – US – December 2009, Mintel Oxygen, Brand Qualities
23 Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities…6th Edition, pgs. 159
12
locations with approximately 500 of those in the United States. 25 Ben & Jerry’s 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 &
Jerry’s 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 John’s 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 John’s AIDS Foundation and simultaneously boosted the brand’s
identity. Ben & Jerry’s 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 owner’s 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 &
Jerry’s. 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
25 Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities…6th Edition, pgs. 160
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 Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities…6th Edition, pgs. 127-128
13
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 Bailey’s Irish
Cream, caramelized pear & toasted pecan, and crème brulée. One of the brand’s
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,
33
it also claims to have less fat than its other ice creams.
Generic Competitors Total Budget Competitors

• Name Brand Ice Cream (Grocery • Donuts
Store) • Cookies
• Generic Brand Ice Cream (Grocery • Cupcakes
Store) • Chewing Gum
• Smoothies • Potato Chips
• Italian Ice • Pizza
• Frozen Novelties
• Frozen Yogurt
• Gelato
• Coffee
• Juice

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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 11th 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
34 Snyder, Garth 23 November 2009 “FAQ’s 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>.
15
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
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
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>.
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
41 https://www.coldstonecreamery.com/about/cold_stone_glossary.html
17
First Data Social e-gift page on Facebook and quickly send a tangible “gift” to a
friend’s Facebook account or e-mail address.42 The company has plans to expand
but currently only offers “gifts” from Cold Stone Creamery.
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
43 Grey, Barry. 28 August 2010“US 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
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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
47
unemployment rate during this same time period.
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
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
20
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 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
48 FoodNavigator-USA.com, September 29, 2009

49 FoodNavigator-USA.com, July 29, 2009
50 http://inflationdata.com/inflation/inflation_rate/CurrentInflation.asp
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>.
21
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
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/
22
consumers by 3.5 million, and 47.6 million were reported to be confident
consumers.56
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
56 “The Post Recession Consumer” 2010 marketresearch.com September 14, 2010

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
23
not their main priority, many are worried about retirement, and are concerned with
spending money60
Generation Y, also called millennial’s, 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. 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
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
62 “Weight Management Trends in the US.” Packaged Facts. MarketResearch.com 2010
24
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 X’s take pleasure in spending time with
family, others would either spend time elsewhere or alone.64
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>.
25
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
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
26
external forces. Cold Stone’s 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
Stone’s next to movie theaters, schools, or in strip malls.
27
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
28
29
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 “everybody’s” (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
72
sold in packages of six for $9.99. 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.
70 Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities…6th 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
30
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 wouldn’t necessarily be consumed alone.
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 company’s 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
73 http://www.coldstonecreamery.com/icecream/custom_creations.html (October 6, 2010)

74 Ice Cream Reporter, March 2008 (October 5, 2010)
31
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 Stone’s 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 didn’t
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-
75 27 Sept. 2010. <http://www.coldstonecreamery.com/about/cold_stone_culture.html>.
32
76
ins. 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.
76 27 Sept. 2010.
<https://www.coldstonecreamery.com/icecream/healthy_indulgences.html>.
33
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-
77 29 Sep 2010 <http://www.qsrweb.com/article/127404/Ice-cream-industry-faring-

relatively-well>
34
A-Wish foundation, which helps grant wishes for severely ill children.78 This year
Cold Stone was a part of “Kate’s wish” which was to create an exclusive ice cream
mix for Cold Stone. On September 30, 2010, they held the 9th Annual World’s
Largest Ice Cream Social, where it gave away free samples of Kate’s 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
78 29 Sep 2010.<http://www.coldstonecreamery.com/about/community.html>
79Cold Stone Creamery. 29 Sep 2010.
<http://www.coldstonecreamery.com/promos/makeawish/index.html>
80Facebook. September 29, 2010. <http://www.facebook.com/coldstonecreamery?
v=wall&viewas=0>
35
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.
36
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
37
Analysis of the Internal Environment
Marketing strategies
Target Market
Cold Stone’s 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
Stone’s 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.
38
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
84
the world, redefine ice cream, and opened their first store in Tempe, Arizona.
Cold Stone positions itself to be the world’s 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
39
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
consumer’s devotion to their ice cream. The goal of the campaign was to capture
the public’s 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
85 http://www.mobilemarketer.com/cms/news/commerce/2617.html (October 12, 2010)

40
a struggle about how far one will go to
get something they really want.86 This
was Cold Stone’s 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.
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
86 http://findarticles.com/p/articles/mi_m0EIN/is_2007_May_22/ai_n19155014/ (October 12, 2010)

87 http://www.retailcustomerexperience.com/article/127182/Cold-Stone-Creamery-debuts-social-e-gifting-program
(October 12, 2010)
41
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.
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.
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)
42
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 in‐store 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 Stone’s eGift
application is used to send tangible gifts that can be redeemed in participating
locations. The application was developed by e‐commerce and payment processing
industry‐leader, First Data Corporation91
Marketing research /intelligence gathering efforts

Cold Stone’s 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 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
93
exceptional service and has an unforgettable experience.
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
92 http://www.csc1.com/
93 http://www.satisfactionservicesinc.com/corporateoverview.htm
43
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 “World’s 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 Kate’s creation free. This was
definitely the world’s largest social and Kate’s wish came true!
94 http://www.coldstonecreamery.com/about/press_room.html
95 http://www.coldstonecreamery.com/assets/pdf/news/2010/news_make-a-wish_090110.pdf
44
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=39351
5/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=39351
5/display/id=501043>
45
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
46
everything they need to know, including how to present the Cold Stone experience
to their future customers.100
Production Capacity
Cold Stone provides each customer with a unique experience and each creation is
hand made in front of the customer’s 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.
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 Stone’s expectations.101 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
100 “Franchise overview” www.coldstone.com October 13, 2010

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>.
47
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.102
SWOT Analysis
Strengths
Company Performance Importance Stren

Statement of gth
Internal 1=Min 5=Maj 1=Lo 5=Hi Index
2 3 4 2 3 4
Strengths or or w gh Numb
er
1. Growth X X 20
2. Store
X X 20
locations
3. Cold X X 25
Stone
Creamery
Customer
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>.
48
experienc
e
4. Premium
ingredient X X 25
s
5. Advertisin
g X X 12
campaign
6. Product
X X 20
offerings
7. Marketing
X X 15
research
8. Public
X X 16
relations
9. Financial
X X 20
success
10. Consisten
cy & X X 16
quality
11. Website
X X 12
quality
12. Facebook
X X 12
page
13. Co-
X X 15
branding
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.
49
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.
50
51
Weaknesses
Company Performance Importance Streng

Statement
th
of Internal
1=Min 5=Maj 1=Lo 5=Hi Index
Weaknesse 2 3 4 2 3 4
or or w gh Numb
s
er
1. Price X X X 25
2. Waitin X X 20
g Time
3. Franch
isee X X 6
Trainin
g
4. Limite
d
Expan
sion in X X 9
the
Satura
ted
Market
5. Volum
e
Limite X X 12
d to
Emplo
yees
6. Large
portio X X 12
n sizes
1. Consumer confidence is at an all time low and customers are turned away from
Cold Stone’s high priced creations.
2. Each Cold Stone creation is made especially to the customer’s 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.
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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.
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Opportunities
Statement Activeness Success probability Opportu

of External nity
Opportunitie 1=Min 5=Maj 1=Lo 5=Hi Index
2 3 4 2 3 4
s or or w gh Number
1. The
Hispanic X X 25
market
2. Universi
ty of X X 25
South
Florida
3. Health
consciou
s X X 15
consum
ers
4. Smaller
ice
cream
shops X X 6
are
going
out of
business
5. Consum
ers that X X 12
eat
organic
6. Tampae X X 16
atz.com
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.
54
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.
55
Threats
Statement Likelihood of Occurrence Seriousness

Index
of External 1=Min 5=Maj 1=Lo 5=Hi
2 3 4 2 3 4 Number
Threats or or w gh
1. Bad
Econo X X 25
my
2. Compet
X X 15
ition
3. Health
Conscio
us X X 9
Movem
ent
4. Credit
X X 25
Crunch
5. Lacking
Resour X X 12
ces
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 Jerry’s.
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.
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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.
57
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 Stone’s 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.
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• 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.
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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

○ 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

○ 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

○ 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
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• Special occasion segmentation: indulgence
○ Marketresarch.com reported that 60% of their respondents with
children aged 3 – 12; allow them to indulge in small treats. (The U.S.
Kid’s Food Market)
Value Proposition
Company and Target

Benefits Price Value Proposition
Product Customers
The world’s greatest
Adults and A superior ice cream, with the
Cold Stone 20%
Families with customer highest quality
Creamery premium
Children experience 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.
61
62
Issues Analysis
Cold Stone’s biggest strengths are the number of strategically placed store
locations, its image, the customer experience provided and a history of financial
success. Cold Stone’s 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 Stone’s 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 franchisee’s 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
63
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 company’s 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 doesn’t ensure quick payment and checkout. Cold Stone’s
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 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.
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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.
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.
65
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.
66
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).
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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. March’s sales should be compared to the
previous months to see if there is a difference.
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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.
69
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.
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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.
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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
kid’s 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 Kid’s 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: (Kid’s 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 kid’s 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
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sales increase from parents or older siblings that won’t be receiving a
free ice cream.
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.
73
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.
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
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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.
honor the Student ID’s
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.
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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. That’s 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
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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.
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.
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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.
Monthly Customer
Drawing
Objective: To give back and

thank customers while
also giving them an
78
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 15th 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
79
program if they see an increase in foot traffic and sales or patterns
of repeat customers.
Marketing Budget
Free
Smoothie University of
Valpak Sample at South Florida Tuesday Free
Customer
Savings Gasparilla Freshman Kids
Loyalty Card
Coupons Distance Orientation Giveaway
Classic Promotion
Race Expo
$91,299 $2,840 $3,051 $3,370 $24,336

46.6% 1.45% 1.55% 1.72% 12.42%
Student Clear Channel Senior
Monthly
Dog Yappy Study Outdoor Citizen
Customer
Hour Break Digital Afternoon
Drawing
promotion Billboard Happy Hour
$120 $67,500 $ 2,400
$555 450
.06% 34.45% 1.23%
.29% .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 Stone’s in the
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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 store’s 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”.
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
81
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 isn’t 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.
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Sean: I found that creating a market plan takes a lot of creativity and a good
strategy to be able to compete in today’s 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 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 other’s 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 group’s enthusiasm and energy and I truly enjoyed
Marketing Management and our Cold Stone Creamery marketing plan.
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Cold Stone Final Project

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Contents

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

12 Ice Cream Shop – US – December 2009, Mintel Oxygen, Leading Companies

14Ice Cream Shop – US – December 2009, Mintel Oxygen, Brand Qualities

Ben & Jerry’s brand’s identity is shaped by innovative combinations of traditional

20 www.yellowpages.com (September 14, 2010)

Generic Competitors Total Budget Competitors

31 www.yellowpages.com (September 14, 2010)

32 Ice Cream Shop – US – December 2009, Mintel Oxygen, Leading Companies

48 FoodNavigator-USA.com, September 29, 2009

Consumer Price Index

56 “The Post Recession Consumer” 2010 marketresearch.com September 14, 2010

68 Cold Stone Store owner in Winter Park, FL

73 http://www.coldstonecreamery.com/icecream/custom_creations.html (October 6, 2010)

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

77 29 Sep 2010 <http://www.qsrweb.com/article/127404/Ice-cream-industry-faring-

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

Cold Stone Creamery uses several different marketing

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)

Product and Service Offering

Distribution and Channel Programs

Sales strategy and Sales force effectiveness

Marketing research /intelligence gathering efforts

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

Company Performance Importance Stren

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

Company Performance Importance Streng

Statement Activeness Success probability Opportu

2. University of South Florida- Placing a store on the University of South Florida

5. The percentage of consumers that eat organically is increasing. Creating

6. TampaEatz.com allows consumers to conveniently place an Cold Stone ice

Statement Likelihood of Occurrence Seriousness

• Implement new marketing strategies to increase customer awareness

• Open 3 new locations in the Tampa Bay area by December 2012.

Primary market: 249,985 consumers who are 15 - 34 years old.

• Demographic segmentation: age

• Psychographic segmentation: Impulsive behavior

Secondary market: 346,676 families with children, who have an annual

• Demographic segmentation: income

Company and Target

Target Market: Primary and secondary markets.

Measurement: The coupons will be collected at each of the 15 locations and

Description of the Program: Free samples of Cold Stone Smoothies will be

Objective: To turn one-time or infrequent customers into regular customers.

Target Market: All Cold Stone customers

Timing: The promotion will run indefinitely.

Measurement: The success will be based on the percentage increase in sales

Measurement: The success of this promotion can be measured by how many

Target Market: Parents with children age 10 and under

Measurement: While the kid’s ice creams are free, they

Dog Yappy Hour

Objective: To try to increase store traffic and sales by encouraging consumers

Measurement: The success of this promotion will be measured by keeping

Student Study Break promotion

Measurement: The success of the program will be measured by the increase in

Objective: Increase awareness of store locations and store traffic by showing

Target Market: The entire Tampa Bay Metropolitan Area

Description of the Program: Cold Stone will implement a series of

Timing: For 12 weeks beginning March 2011

Budget: 12 weeks on Half Network = $66,000. $100 gift card x 15 store

Senior Citizen Afternoon Happy Hour

Budget: 10 seniors x 15 stores = 150 senior citizens. = $ 150.00 x 16 Thursdays