Executive Summary

Marble Slab Creamery Inc. is an ice cream and frozen desert outlet, which was founded in Texas in 1983, that is independently owned and operated by franchises in Mumbai. Through producing fresh ice cream in-store with premium ingredients, Marble Slab targeted the high-end price and quality market.

With rights to a Marble Slab franchise, a goal of Rs.400,000 revenue after the first year of operation has been targeted. With a Rs.10,000 promotional budget for the May 2012 Grand Opening; it is necessary to select the most effective advertising mediums while maintaining Marble Slabs image.

In order to achieve this goal an appropriate placement, pricing, product, and promotional strategy should be planned. With a possible economic downturn for the Indian economy and seasonal fluctuations, this franchise should consider these implications to avoid losing market share to direct and indirect competitors.

Through the analysis and calculations provided throughout this report, it is evident that the following are the best suited marketing decisions for this particular franchise:

Target Market: Families and Women Location of Business: Thane Catering Options: Sundae Bar and Portable Slab

Promotional Campaign: BEST Bus Ads, Mumbai Mirror and Radio Mirchi FM Pricing: Price Brackets for each catering service for event ranges (see Exhibit 6)

These decisions have been made through the comparison of all the available selections. Thane was selected as the region with the highest median household income, the largest proportion of families and women to the total population, the least expensive leasing cost, as well as little direct competition. The Sundae Bar and Portable Slab option were the most profitable and popular of the catering services. The selections of the promotional campaign were found to be most appropriate given the target market characteristics. Finally, the pricing strategy was found to encourage larger events to reduce the cost per person as well as yield the most profitable margins, as Thane is less price sensitive area than the region served by the other Marble Slabs Creamery franchise. Overall the decisions made throughout this marketing report best suit the Marble Slab image of premium quality while attempting to achieve the targeted revenue goal of Rs.400,000.

Introduction

With rights to a Marble Slab franchise, the goal is to achieve a revenue of Rs.400,000 in the first year through selecting a target market with a corresponding product offering, location, pricing strategy, and promotional campaign that best suits Marble Slabs premium brand. With a Rs.10,000 promotional budget, effective methods of advertising are needed to increase potential consumer awareness and traffic for the grand opening. As a franchise, there are some constraints and restrictions with price setting; however, there is considerable flexibility with other decisions such as location and catering options. Other considerations or constraints include a shared national advertising program, royalties, reduced financial risk, adopting company standards, and assistance in financial areas. Marble Slab Internal & External Analysis Corporate Capabilities Since it is a franchise of a well-established corporation, the business has support and financial backing as well as cost advantages that occur from economies of scale. These cost advantages include good supplier relations, a shared national advertising program, and pre-designed advertisements. There is also reduced financial risk as a franchise of a successful business concept, which is significantly growing in popularity. Although there are royalties and programs that restrain the gross sales of the franchise, the benefits of this profitable business outweigh these costs. Marble Slabs (MS) premium brand has been established on an international scale. The Rs.10,000 marketing budget is sufficient to effectively advertise the grand

opening through many affordable mediums of promotion. Customers who have already experienced MS, but had previously lived too far from a franchise will return as a regular customer if it is located at a convenient distance. As the capacity of MS is limited in catering services, it can either portray the business as limited in its financial capabilities or as exclusive, which would coincide with the premium image that is being promoted. In order to achieve this exclusive image there should be a reservation book for customers to reserve a catering time, giving the appearance of high demand. Although there is limited experience with running a business, Anith is well educated and is appropriately qualified to do so. Rhea, who will be temporarily hired for the grand opening, has good experience and is appropriately qualified. As long as there is no problem in the personal relationship between Rhea and Anith, problems associated with personal ties between coworkers should not be a concern. Industry Analysis Anith should consider the economic implications that although it appears the US economic downturn had little impact on the Indian economy, there is a possibility of a delayed impact that could reduce average household income. This would reduce the amount spent on normal goods, such as ice cream. If the Indian economy appears to experience a delayed reaction, Anith should consider reducing catering prices, as well as advertising cheaper products that Marble Slab offers. Anith should also consider the seasonality of the business, as the majority of consumers do not prefer ice cream in colder weather. Sales could further be limited due to a social trend to be healthier, and ice cream is not the healthiest alternative. These implications mean that it may be difficult to achieve the goal of Rs.400,000 in revenue, as

well as effectively advertising. Anith could, for example, request ads that portray Marble Slab as a healthy snack, to be enjoyed as part of a healthy, active lifestyle in order to adapt to this social trend. Competitive Analysis There are two primary direct competitors of Marble Slab including Naturals and Gokul. A product placement map (PPM) (see Exhibit 1) reveals Marble Slabs position against the competition. Naturalssells high quality products, but has low feature, as the customers cannot customize flavours. As a result, Naturalsfaces a challenge of appearing inferior to Marble Slabs premium quality. To compete with Baskin Robins, MSs premium image must be maintained if not improved. Naturals could potentially respond with ads promoting the high quality of its products, locating near the franchise, or altering its pricing or target market strategy. Another competitor, Gokul (GL), is targeting the low price and mediumlow quality market, which is an effective strategy because it reduces the impact of a potential economic downturn. It also reduces the seasonality of the business by offering hot food items, which increases the size of its potential customer base. Although many of GLs franchises are easily accessible, the quality of ingredients are not as high, and as a result this business would be the most affected by the increasing social trend to be healthy. To compete with GL, Anith should consider the possibility of offering a hot product, such as hot chocolate, which would additionally reduce the seasonality of the business. GL could respond with their own hot chocolate product or not at all as they target different markets and risk the possibility of losing their own market share by targeting each others. The indirect competition is composed of McDonalds, Cafe Coffee Day, Grocers and

Convenience Stores. (A PPM of these competitors can be seen in Exhibit 1). Although McDonalds is one of the largest quick-service restaurant chains, it primarily appeals to price-sensitive customers, which MS is not targeting. Cafe Coffee Day, however, is priced at a premium and is far less seasonal, but has limited food options for children. Grocers and convenience stores are the biggest concern as they provide family members with the convenient option of buying a wide variety of products in one location. MS could compete through effectively advertising to the purchaser of groceries in each family. Consumer Analysis There are three major groups of consumers, including families, women, and young adults. The families often are persuaded by their children to get ice cream as a treat on a weekly to monthly occurrence. This allows for several purchases per customer as opposed to young adults, which would only purchase one or two items per visit. Women are on a trend to adopting healthy lifestyles, and may be persuaded by products of the lowest calorie content. Young adults are often persuaded by accessibility and quality of the product, and have relatively higher propensities to spend then families or women.

Marketing Decisions
Target Market Selection :-

The target market for the business consists primarily of families, but also women. These markets overlap one another, and the mothers of the families are, for the majority, the purchasers of groceries. Through effectively targeting women, despite their increasing trend for a healthy lifestyle, MS could potentially become a greater competitor to grocery stores. Family traditions of getting a treat from MS every Tuesday night or after a soccer game could develop through targeting families, which would increase customer regularity and provide a consistent source for revenue growth.

Product
In order to meet the revenue goal by the end of the first year, the most popular of flavours should be offered at the grand opening, with the 3-5 least popular flavours cycling every 2 weeks with other MS flavours. To reduce the severity of the slow business in the winter months, it is necessary to offer the two most profitable catering options, which are the Portable Slab, and the Sundae Bar. Money generated from the first week of sales should be used to purchase the Portable Slab equipment. As well Anith should consider the future development of warm products that could reduce the seasonality of the business, such as hot chocolate. This would allow for a more consistent flow of revenue through the winter months, thus helping achieve the targeted Rs.400,000.

Placement
The prime region for the business to be located is in Thane because it has the highest median income (see Exhibit 2a), a large growing population, little direct competition, as well as the least expensive leasing option (see Exhibit 2b). Thane also has the highest percentage of women and families to the total population

. Other locations
were attractive for such reasons as high volume of traffic, proximity to Aniths home, and accessibility, but were too expensive, competitive, seasonal, or did not fit with the target market. Vaughn was also an attractive location for the same target market, but was close in proximity to Baskin Robins, more expensive, and had lower median income than Thane. In order to appeal to the women that are targeted, this MS store should offer a healthy selection display of the available lower calorie flavours.

Calculated by (Total Population Young Adults) Total Population 92%

Price The corporation controls the selling prices of products sold in store, however the franchise owner controls the catering prices. Through an effective price strategy, MS can maximize profits without restraining revenue. As Thane is less pricesensitive than the region served by the other Marble Slabs Creamery franchise, Anith should charge more per person. If effective price brackets (see Exhibit 3) were used for both the Portable Slab and Sundae Bar catering service, larger groups would be encouraged for a lower cost per person. This would not only spread MSs business through word of mouth, but also capture more consumer surplus through price discriminating. As the most popular and profitable catering options will be offered, the revenue goal will be easier to achieve.

Promotion With a Rs.10,000 promotional budget, it is necessary to evaluate each promotional option to ensure the greatest customer awareness and traffic given its value. The Thane bus advertisements, the Mumbai Mirror, and Radio Mirchi FMwill be selected as a way to promote Marble Slabs grand opening. The Thane bus advertisements solely target residents in Thane, in which the business is located. These ads would target pedestrians and automobile passengers, which would consist of families and women being targeted. This promotional option is the most effective visual method to advertise as it lasts for four weeks, compared to 3 times annually in a magazine. The next expense of the promotional budget is to be spent on the Mumbai Mirror, which although does not solely target Thane residents, it does reach a large customer base regardless of certain demographic characteristics. Although the ads are relatively expensive, they will create a significant amount of awareness despite the size of ad being purchased. The coloured ad is worth the 35% premium, as it would compensate for the relatively small size of 4 1/8 inches by 2 inches. The Radio Mirchi FM radio advertisements are relatively inexpensive and effective. The 30 seconds broadcasts are more appealing as they reach a larger customer base. The times selected for the broadcasts were chosen to specifically target family members who are driving to and from work (see Exhibit 4). The Magazine will not be selected as a promotional option as it mainly appeals towards the young adults, who are not part of target market. Additionally, Now Magazine is the most expensive medium and the available options do not best suit this short-term promotional campaign. The India Post Direct Mail will also not be used as a promotional medium for the sole purpose of

appearing as junk mail, which would not complement MSs premium brand. Financial Feasibility These marketing decisions will improve the financial position of MS as the effective target market, placement, pricing, and promotional strategy will drive revenue to meet and possibly exceed its goal. The amount of average in store items that would need to be sold in order to achieve the targeted revenue is 58,824 units (see Exhibit 5). Incorporating the additional revenue stream from the catering service, this value becomes more feasible. As described previously, the price bracket strategy for the catering options are designed to influence customers to host larger events, further increasing revenue. A breakeven analysis (see Exhibit 6) reveals the number of people needed to cover the cost of catering at each suggested price. This implies that a low number is needed for profit

Marketing Report Conclusion From the implications provided it is evident that these marketing decisions for the new Marble Slab franchise encompass an effective strategy to experience the targeted revenue at the end of the first year. The promotional campaign will effectively increase consumer awareness and traffic for the May 2012 grand opening while maintaining the high quality image that Marble Slab has established. It is evident that Thane, which is illustrated as having the lowest competition, leasing cost, as well as a lower seasonality, is the prime location for this franchise. The families and women segment of the population, which has the highest percentage in Thane, should be targeted as they imply larger purchases per visit and are the targeted less than young adults. It is evident that the best way to promote the grand opening to this target market in Thane, considering the budget, is through bus advertisements, the Mumbai Mirror, and Chum FM. With regards to product offering, the Portable Slab and Sundae Bar should be offered at the suggested price brackets, as they are the most profitable and popular of the catering services. In addition to these services, the most popular flavours, which are listed on Marble Slabs website, should be offered with the least popular flavours cycling with other flavours for customers who would like to try an alternative. To reduce seasonality, warm products should be offered to avoid losing customers to indirect competition such as Cafe Coffee Day and grocers in the winter. The possibility of an economic downturn as well as the increasing trend for a healthy lifestyle should be considered in future promotional strategies. Through following this plan Marble Slab will experience a successful first year by promoting its premium quality brand, and meeting or exceeding its targeted revenue.