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Unformatted text preview: CORNELL DAIRY BAR TA: Noelle Dowd By: Nicole Cheever, Hilary Holland, Alyson Intihar, and Meghan Risica Group: O 2 Table of Contents Section/Title Executive Summary Company Description Introduction Market Summary Market Needs Strategic Focus and Plan Mission Statement Brand Footprint Goals Core Competencies Sustainable Advantage Situational Analysis SWOT Analysis Product Market Analysis Industry Analysis Competitors Marketing Plan Objective Identified Strengths Opportunities to Consider Improving Weaknesses Threats Objective Survey Target Market Points of Difference Branding & Positioning Product Promotion Promotional Tactics Implementation Plan Place Conclusion Works Cited Appendix Page 3 4 4 5 6 7 7 7 8 8 9 9 9 10 11 12 12 12 14 15 16 17 17 19 20 22 23 27 27 29 29 30 31 32 Executive Summary The Cornell Dairy Bar has operated on Cornell's campus since 1880. Cornell Dairy products have an established tradition of excellence, and are a source of school pride for students, faculty, and alumni. The Cornell Dairy Bar enables the community to partake in the tradition of Cornell Dairy products, while facilitating community involvement and social interaction. To increase student trafficking to the Dairy Bar, we have chosen to target freshmen undergraduates in the hope of making them repeat customers throughout their academic careers and as alumni. These first year students need a convenient place to relax and eat lunch that utilizes their meal plan options (Big Red Bucks). While the Dairy Bar is not the most convenient location, through increased marketing and promotion to freshmen we can reposition the Dairy Bar to being worth the walk. Our objective for the Cornell Dairy Bar is to increase the number of visits by freshmen to the Dairy Bar by 15% during the 2008-2009 academic year through increased promotion with the implementation of the "Freshmen Fifteen" in-house marketing program. This program entails giving out an ice cream card to all customers through which they can buy five get one free; similar to the coffee card given on campus. Also, "happy hour" will be held monthly for freshmen to come and sample free ice cream in a social environment. Finally, the program increases the use of the ice cream cart, utilizing its mobility and increasing its reach to students. The cart will be made available at sporting events and on north campus at specified times. With the adoption of the "Freshmen Fifteen" program, the Dairy Bar will no longer be a dining option whose location curtails their business. Company Description Introduction The Cornell Dairy Bar is a unique institution within Cornell University that has been a long standing tradition and has a highly regarded reputation. It was first established in 1880 on the grounds near Bailey Hall, then moved to Goldwin Smith Hall, and then in 1923 settled into Stocking Hall, where it is currently located. The Bar contains a quaint indoor and outdoor dining area consisting of approximately 75 seats ("Case Study: The Cornell Dairy Bar"). The Cornell Dairy Bar offers a number of products ranging from lunch sandwiches and wraps to a plethora of different ice cream treats and desserts. The Bar capitalizes on selling their numerous dairy products that include: cheeses, milk, pudding, yogurt, and the ever so famous ice cream. The Dairy Bar's number one seller is their delectable ice cream with this product enjoying a large share of the high-growth market, which makes it their "star."(Appendix, Figure 1) All of the ice cream is made on campus with fresh milk from nearby farms. The Dairy Bar offers over 20 different flavors, including various seasonal flavors. One way that they have enabled their ice cream to become a star is through their ice cream cart, which sells ice cream on warmer days of the year and is located just outside of Day Hall. Ice cream has a profit margin of 200% ("Case Study: The Cornell Dairy Bar") and maintains its position as a local ice cream power. Milk is the Dairy Bar's "cash cow" with high market share and large cash generation, with slower growth. They also offer many lunch items including wraps, hot soups, pizza, subs, and sandwiches. A newer product that has recently been introduced is their "made-to-order" wraps. There are a number of wraps that customers can choose from such as, the chicken 5 Caesar, buffalo chicken, tuna dill, or the classic BLT wrap. These new wraps are considered to be a "question mark" or "problem child" because although they have shown popularity, it is uncertain as to whether or not they will increase market share and continue with a high growth rate and become a "star", alongside the Dairy Bar's ice cream. One product that has a slower growth rate and low market share, especially in the warmer months, is the soup, which is considered to be a "dog." (Appendix, Figure 1) Although the Dairy Bar is a fine institution overall, there are still many areas for which it could improve. Some of the biggest issues are that the layout is rather poor and that it is not run very efficiently. Throughout the store there are bottlenecks, which block access to the cashier line and food areas. At various times throughout the day there are very long lines. There have even been times when there are extremely long lines with only one employee working. These are just a few areas that could be improved upon to increase efficiency ("Case Study: The Cornell Dairy Bar"). Market Summary Within Cornell University there are 13,562 undergraduate students on campus, ranging from ages 17 to 23. There are 6,077 graduate students, ranging between 23 and 29 years old on average. Of the 20,638 students enrolled in the university, 60% are Caucasian, 16% are Asian, 5% are African American, 5% are Hispanic, and 7% are International students. Also within the university there are 2,722 faculty members. The faculty is composed of non-professorial and nonacademic employees. There are also 11,504 staff members who are full-time or part-time professorial members ("Facts about Cornell"). These three sectors (students, faculty, and staff) compose the Dairy Bar's target market, which comprises about 75% of their market. Within this targeted market the Bar 6 concentrates on targeting students and faculty in the areas closest to the Bar. The veterinary school and the Ag quad are both relatively close to the Dairy Bar and it is easy for students to walk to. The other 25% of the market is made up of residents in the surrounding Ithaca area. The Ithaca area and Tompkins County is approximately 84% Caucasian, 9.6% Asian, 4% Black, and 4% Hispanic. The median household income is $38,890 and 13.5% of persons are below poverty. In Tompkins County there are 2,220 private non-farm establishments, 44,715 private non-farm employments, and 6,470 non-employer establishments (US Census Bureau). Between the two markets (the Cornell market and the Ithaca area/ Tompkins County Market) the Dairy Bar sees approximately 328 customers daily. A goal for the Bar is to expand the two target markets, but it has been a difficult task due to limited advertising. The Bar places advertisements on the scoreboard of athletic competitions and also in the football media guide book ("Case Study: The Cornell Dairy Bar"). This has helped the Cornell market to grow, but the Ithaca market has fairly stagnant growth due to the fact that The Dairy Bar has restricted advertising ability. Another factor that helps their market growth is the fact that the ice cream at the Bar gives them a competitive advantage over Trillium, a dining area that lacks a diverse dessert menu. Market Needs The Cornell Dairy Bar fulfills market needs by supplying an escape from the hectic lives of Cornellians while satisfying their sweet tooth. It is a place where students and faculty can come to indulge in delicious food and also be in a warm, yet sociable atmosphere. Customers can pay with Big Red Bucks, which definitely fulfills a market 7 need for the frugal college student who does not want to spend his own money. The Cornell Dairy Bar will supply customers with a pick-me-up and send them on their way feeling as if the sun is shinning, even on the rainy days in Ithaca. Also, the Dairy Bar needs to expand their target market and reach more potential customers. The ice cream market is sensitive to seasonal fluxes so it has the potential to have many high growth months and months were revenues are declining. The market needs the Dairy Bar to differentiate itself from being an ice cream shop to being an actual dining option, to balance some of those growth and decline phases. Strategic Plan and Focus Mission Statement The Cornell Dairy Bar is an established part of the Cornell tradition, with a long history and valued reputation. For both the Cornell Dairy Bar and Store its mission statement is to engage in undergraduate and graduate instruction in food science, participate in basic and applied research, perform public service through extension programs, offer training for New York State Agriculture & Markets and dairy industry personnel, and create high quality dairy products for the Cornell community ("Case Study: The Cornell Dairy Bar"). Brand Footprint and Positioning Statement Cornell Dairy has operated on Cornell's campus since 1880. The tradition of Cornell Dairy products goes back over 100 years, and is a source of school pride for students, faculty, and alumni. The brand name Cornell Dairy conveys that tradition of excellence in dairy products to the entire Cornell community, and the Cornell Dairy Bar expands on that established community connection. The Cornell Dairy Bar as a brand 8 encompasses the established quality associated with Cornell dairy products along with the growing reputation of its diverse lunch options not offered at Cornell Dining facilities. Core Values Quality Tradition Diversity The positioning statement: For Cornell Students who want a break from over-crowded central campus dining, the Cornell Dairy Bar is the dining experience that they rely on to deliver a wide variety of foods and delicious dairy based desserts. Goals We have established three goals for the Cornell Dairy bar that we believe if met would greatly increase both the popularity and profits enjoyed by the Dairy Bar. The goals are as follows: Increase student awareness about the Dairy Bar and its products Increase the average number of customers seen per day to around 350 Make store layout and employees more efficient Personality Community Involvement Personal Sociable Essence: The lunch time caf that will provide an enjoyable atmosphere and quality food. Core Competencies The Dairy Bar's core competency is dairy products and more specifically, ice cream, no matter the season. The bar has a capacity to hold 24 different flavors, varying with season and popularity. Its profit margin on ice cream sales is 200%, far greater than any other category. Ice cream and milk are the two most highly purchased products with 9 89% of Cornell faculty polled rating the dairy products as above average ("Case Study: Cornell Dairy Bar"). There is no doubt that dairy is the key to the Dairy Bar's success. Sustainable Advantage The Dairy Bar's sustainable advantage is their featured dairy products, especially Cornell ice cream. Ice cream is the clear crowd favorite and sets them apart from other dining options on campus that either does not offer Cornell ice cream or in limited variety. Furthermore, the Dairy Bar's association with the Cornell Dairy Brand and the reputation of quality it provides enables the Dairy Bar to have a significantly different menu from Cornell Dining options. The ice cream and quality dairy products will keep customers coming to the Dairy Bar. Situational Analysis SWOT Analysis Figure 2 in the Appendix shows the SWOT analysis chart. The Cornell Dairy Bar has many strengths and opportunities that it can continue to capitalize on. A major strength is the management's openness to suggestion and change. They brought in a specialist to make suggestions and help to improve the Dairy Bar. They are also open to expanding their marketing budget to increase their revenues. A major weakness of the Cornell Dairy Bar is its location. It is constantly listed as a weakness and a threat. It is in a location that is not frequented by many of the Cornell students/staff/faculty. The location makes it necessary to make a special trip down to the Dairy Bar for the majority of customers and many simply feel that the opportunity cost of making a trip to the Dairy Bar is not worth the time it takes there and back. Another advantage is that besides the 10 location, many of the weaknesses and threats are easy to turn into strengths and opportunities by applying different methods, which management is open to. Product- Market Classification As an organization grows, it can do so by following one of the growth strategies of the Product/Market Grid: Market Penetration, product development, market development, and/or diversification. The Cornell Dairy Bar can penetrate the current market by reaching out to the current market and expand on its products. It can do this by expanding its advertising, and also creating incentives, such as giveaways and discounts, for people to make the journey to the Dairy Bar. The Dairy Bar can develop new products for the current market, such as new flavors of ice cream. It can also offer a broader selection of sandwiches and soups and pastries. This might help to bring in more revenues through the current market. By offering more vegetarian options, the Dairy Bar could create a new market for vegetarians. They could also create new healthier options and bring in more customers that are very health food conscious. The Dairy Bar could also expand its markets by offering products that are made from soy milk so that people that are lactose and tolerant can enjoy the Cornell Dairy Bar. Diversification can happen through the addition of new product lines at the Dairy Bar. These might include a specialty coffee bar, to bring in more people that might otherwise have gone to a competitor for their morning fix. The Dairy Bar could also offer pre-made salads in addition to their soups and sandwiches. Salads are a good meal, or an addition to entrees already offered at the Cornell Dairy Bar. These new options can be offered to vegetarians that would have normally overlooked the Dairy Bar as a viable option. These are just a few options that the Dairy Bar has in terms of growth strategies. 11 Industry Analysis As American society changes, the ice cream industry needs to adjust as well. Americans are becoming more health conscious and as a result, ice cream with high fat content may see a drop in sales. Many companies have developed low-fat or fat-free ice cream products as a response to changes in consumer preferences. According to Rachael Kyllo, the vice president of marketing for Kemps, "Consumers are striving to eat as healthy as possible and are looking for products that take the guesswork out of calorie control. Kemps 100 Calorie Minis are perfect for on-the-go snacking without having to worry about overindulging" (Kemps). Products such as these will see growth in the market with a widening consumer base. With the growth of the ice cream market, more manufacturers are using powdered ingredients, instead of fresh dairy products. According to one article, "because of ease of handling and storage, there is likely to be increased interest in examining the functionality and consistency of dried dairy ingredients in icecream" (Udabage). The ice cream industry as a whole is also becoming more brand intensive. According to sales figures in 2006, "overall sales appear to be trending down, several brands are undergoing decent to outstanding growth, while private label sales continue to shrink in 2006 as they did in 2005" (Ice Cream). As a private brand, the Cornell Dairy should be aware that it is more difficult for private labels to grow in the current industry. One subcategory that appears to be growing is ice cream/ice milk desserts, which includes 12 ice cream cakes. Although it still makes up less than 10% of the market, it shows consistent growth (Ice Cream). Competitors Many of the competitors are very good competition within the area. Trillium competes for customers on campus while Purity and Eat Dessert First compete off campus. Although the Cornell Dairy Bar does not compete directly with companies outside of Cornell, there is still competition for providing ice cream and other goods to the residents of the local area. All of these competitors have a good reputation with the community, and Purity also is a tradition in the community much like the Dairy Bar is a tradition at Cornell University. All of these other stores also offer easy and convenient locations and also quick service. One main advantage that both Purity and Eat Dessert First have over the Dairy Bar and Trillium, is their flexible advertising options. This severely limits the Dairy Bar's ability to attract other consumers that are not affiliated with Cornell University. The prices of ice cream products are very comparable, so no one store has a competitive advantage over the other in that respect. The other stores also have an advantage in that there are more workers and the stores are more efficient than the Dairy Bar at serving customers (except Eat Dessert First). No one store has a significant competitive advantage over another and so they will continue to compete for the same business. Marketing Plan Objective Identified Strengths 13 The Cornell Dairy bar has several strengths to their credit which they can continue to build upon. The most important strength is the Dairy Bar's reputation for tradition and quality of products. The Dairy Bar has many repeat customers who return based on the quality of ice cream alone. Alumni will return to campus and visit the Dairy Bar and students visiting campus on college visits will make a stop at the Dairy Bar because of its reputation. Also, management is open to new suggestions regarding their store, which is positive because without their openness, it would be difficult to implement any new ideas. In addition to ice cream, the Cornell Dairy Bar sells a variety of other diverse products. These items include sandwiches, beverages, soups, pastries, and many more. When products prove to be unprofitable, the Dairy Bar substitutes them with a different option. This proves to be a strength because with a diverse product mix, customers can come to the Dairy Bar for items other than ice cream, potentially bringing more business. Because the Cornell Dairy Bar does not let unprofitable items remain on the shelf, it opens the door for higher profits with more successful products. In addition to varying products, the Cornell Dairy Bar has variety in their ice cream flavors every season. Each semester, the Dairy Bar produces the winning ice cream flavor from Food Science 101 for a limited period of time. This process gives incentive to students to create new, inspired flavors and give the Cornell Dairy Bar a unique new flavor of ice cream to serve their customers. The ice cream cart that the Dairy Bar situates outside of Day Hall proves to be another strength. The location provides students traveling through central campus the chance to purchase ice cream at a more convenient place. The cart also acts as advertising for the Dairy Bar. Students can taste the delicious ice cream and when the cart is not in front of Day Hall, they can plan a trip to the Dairy Bar. 14 In terms of the actual facility, the Cornell Dairy bar offers both indoor and outdoor seating. During the hot summer months, customers can escape the heat in the Dairy Bar's air conditioned store or enjoy a pleasant afternoon at the outdoor tables. One strength that the Cornell Dairy bar needs to capitalize on is the bus stop located immediately in front of the store and the pay lot located across the street. The bus stop and parking area represent major opportunities because of the Dairy Bar's distant location from central campus. The above strengths mentioned need to be continually capitalized in order to maximize the Dairy Bar's presence on Cornell University's campus. Opportunities to Consider The Cornell Dairy Bar has succeeded in selling ice cream at more campus athletic events, but the opportunity exists to sell at events campus wide. With the plethora of extracurricular groups that exist on Cornell's campus and the number of events orchestrated each semester, it is crucial that the Cornell Dairy Bar sell ice cream at these times. Not only will it give the Dairy Bar a chance to make additional profits, but it will also raise awareness about the quality of ice cream available right on campus. Since they already have a cart to use, the only additional costs would be for labor. Another opportunity the Cornell Dairy Bar should exploit is marketing their ice cream more heavily to the Cornell student body. While they may have been aware of it at one point in their college careers, many students may have forgotten the many options that the Dairy Bar provides. Not only is delicious ice cream available, but one can also purchase a full meal. This option can make the trip out to the Dairy bar even more rewarding for busy college students because it can accomplish the tasks of finding a meal and enjoying a treat afterwards. 15 The biggest opportunity that the Cornell Dairy bar has is with matriculating undergraduate students. When incoming freshmen learn of the options presented at the Dairy Bar, they will potentially become customers for life. Not only will they return frequently to have ice cream and food during their years at Cornell, but they come back once again as alumni. The key is to effectively market the Dairy Bar to the freshmen in the beginning. Improving Weaknesses The management at the Cornell Dairy Bar has a few aspects to improve upon. The Dairy Bar is frequently understaffed, especially during frequent hours. During peak hours, there should be at least four people on staff. One person can be working the register, two people serving ice cream, and one person controlling the sandwich area. If additional people were staffed, they could help with ice cream or ensure the facility stays tidy. The management should also ensure that restocking is only done during low traffic times. In relation to food offered, the Cornell Dairy Bar can offer a more diverse soup selection which can entice people to purchase a full meal. Also, more options also need to be made available for vegetarian customers. To inform customers about the additional food options available, the Dairy Bar needs to advertise more. People need to know that they can go to the Cornell Dairy Bar for more than just ice cream because it will make the trip out there more worthwhile. As American society becomes more health conscious, the Dairy Bar needs to adjust as well by offering low fat foods. Ice cream with lower fat content also needs to be offered to tempt customers. Many people watch their calorie intake, so there need to be low fat options to attract them to the Dairy Bar. 16 One threat to the Cornell Dairy Bar is the student's unawareness of products sold by the company. Many people are uninformed of the wide range of products that the Dairy Bar offers, from soups and sandwiches to beverages and pastries. The Dairy Bar is missing out on potential profits because of this oversight because people can come in for more than just ice cream. Customers can enjoy a full meal, which will make them more likely to come to the Dairy Bar. This threat can be avoided through improved advertising and promotion on campus. The final weakness that needs to be improved at the Cornell Dairy Bar is the store layout. While the facility offers limited space for major change, little changes can be made to use the space more effectively. While standing in line at the Dairy Bar, it is not clear what the ice cream options are. Currently, the customers go to the register first to state what size they are getting and pay, then they move to the right and choose a flavor of ice cream. This could cause a significant back up during peak hours if people do not know what they want to order. To correct this, a sign could be hung to state what ice cream flavors are offered and a short description of the ingredients. This would give customers a chance to decide exactly what ice cream they will choose before they order, and keep the line moving faster. Finally, the Dairy Bar could rope off a more efficient area for the line to form during peak hours. Improving these weaknesses will serve to increase the Dairy Bar's business. Threats One threat to the Cornell Dairy Bar is a low advertising budget. With an increased advertising budget, the Cornell Dairy Bar can promote their products and make Cornell students more aware of what is offered. The advertising restrictions that the Dairy Bar 17 faces are another threat to the company. The Dairy Bar's affiliation with Cornell University restricts their ability to advertise in the Ithaca community. It can only advertise in the Ithaca Times, the Cornell Daily Sun, and VBR ("Case Study: The Cornell Dairy Bar"), which limits its contact with people outside of Cornell. If the Dairy Bar could advertise in newspapers like the Ithaca Journal, which has a very high circulation in the community, it may raise customer awareness. The threat of other dining facilities exists as well. With places like Trillium and the Vet School Cafeteria in such close proximity to the Dairy Bar, it is possible that they are losing business to those facilities. To battle this threat, the Dairy Bar needs to make students aware that they offer products other than ice cream, in order to draw more business. If students can go to the Dairy Bar for lunch as well as an ice cream treat, they will be more inclined to do so. By combating these threats, the Cornell Dairy Bar will prevent losses of business. Objective The Cornell Dairy Bar's objective is to increase the number of visits of freshmen to the Dairy Bar by 15% during the 2008-2009 academic year through increase promotion with the implementation of "The Freshman Fifteen," the in-house promotion plan for the Dairy Bar. Survey The Cornell Dairy Bar will complete two rounds of surveys in order to assess the success or failure of the objective. First, a survey will be given to freshmen who come to the Dairy Bar, and the Dairy Bar should aim to survey at least 500 students. The cashier will be responsible for giving the survey to freshmen after they order and pay for their 18 food. The number of people who receive this survey will depend on the number of freshmen who come into the Dairy Bar, as it should only be completed by students once. The purpose of this study is to find out how well the promotion is reaching the target audience. Questions will include items such as, how many times the person has been to the dairy bar, how they heard about the Dairy Bar, the quality of food or service, and what food they ordered (Appendix, Figure 5). By finding out how the students heard about the Dairy Bar, it can be shown how the promotion and advertising is working. The information will allow the Dairy bar to note what is not working and correct the problems, and also inform the staff about what is working. By asking what products the student is purchasing, the Dairy Bar can see what products are appealing to customers. The scale of quality and service will tell the Dairy Bar how its business is perceived overall to customers. Questions and comments will prove to tell the Dairy Bar what they can improve upon in the future. This information will be printed on a piece of paper and distributed by the Dairy Bar. The completed forms will be collected and analyzed by the people administering the survey. The data will be analyzed manually, and then the compiled data will be entered into an Excel spreadsheet for further analysis. The information can later be made into charts and graphs to see figures more visually. The second survey can be given out to freshmen in the spring toward the end of the academic year. The Dairy Bar should aim to survey at least 1,000 students by handing out the survey during several introductory classes (Appendix, Figure 6). The Dairy Bar can collaborate with professors of courses to hand out the survey during the last few minutes of class. By targeting introductory classes, there will be a higher rate of freshmen students. Since the survey will be given at the end of the year, it will give the Dairy Bar a sense of 19 how many students visited the Dairy Bar or are aware of the promotions going on there. Questions will ask about the number of times the student visited the Cornell Dairy Bar, what their overall experience was, and how did the student hear about the Dairy Bar. This survey needs to be kept short because most students do not have the time or patience to deal with long, involved surveys. These questions will give the Dairy Bar a sense of how well they completed its objective. The survey will show how well the promotion has reached the target market and how well the Cornell Dairy Bar reached its objective of increasing the number of freshmen to the store. Target Market Currently the three sectors that comprise 75% of the Dairy Bar's market are students, faculty, and staff. Within this market, we have chosen to specifically target firstyear students. For the 2007-2008 academic year there are 13,562 undergraduate students, 3,055 of which are freshmen. Of the newly enrolled freshmen, 82% scored above 650 on the math portion of the SAT and 66% scored above 650 on the critical reading portion of the SAT. Of the students who were ranked in their secondary school, 87% were in the top 10% of their graduating class. Also, 67% of freshmen attended public schools, 23% attended private schools, and 10% were chartered, home-schooled, or other. For the 2007 fall semester 23.5% of students are enrolled in Agriculture and Life Sciences, 3.6% in Architecture, Art, and Planning, 31.0% in Arts and Sciences, 20.6% in Engineering, 6.3% in Hotel Administration, 8.9% in Human Ecology, 6.1% in Industrial and Labor Relations. Within the class of 2011 48.2% are female and 51.8% are male. 20 In addition, demographic statistics include 39.5% Caucasian, 15.2% Asian, 5.9% Bi/Multiracial, 5.6% African America, 5.2% Hispanic, 0.5% Native American, and 18.1% who did not report their information. New York native freshman account for 32.4% of the freshman class; 21.3% are from the Mid-Atlantic region, 11.4% are from the New England region, 9.8% from the West, 8.3% are International students, 7.4% from the Midwest, 5.4% from the South, and 4.0% from the Southwestern region. Also of the 2011 class, 38% are receiving need-based scholarship/grant aid and 44.5% have been awarded financial aid. Freshman retention rate has been reported to be 96% and first-year students who entered in the fall in 2000 and graduated within six years has been reported to be 92%. These two numbers have stressed our importance for targeting freshman. If we can get them hooked on the Dairy Bar the first year, they will tentatively become loyal customers over their following academic years and when the return as alumni. The best and most logical way to segment the new target market is by each student's college. This segmentation variable will identify which students are in each college, and furthermore it can determine what each student's major is. By using this segmentation variable the Dairy Bar staff will be able to zero in on the students who belong to the colleges closest in proximity to the Dairy Bar, for example, the College of Agriculture and Life Science. Another useful variable is to find out what time most students are on campus. This information will be collected via survey and will tell the Dairy Bar, on average, what time the majority of the students are on campus. This data is crucial in informing the Dairy Bar of when they should most effectively target customers. By targeting specific colleges and determining class times, the Cornell Dairy Bar will further segment the student population and focus advertising on particular student groups. 21 Points of Difference The Cornell Dairy Bar is renowned in the local ice cream market. There are many points that distinguish it from its competitors. One of these is that it is part of a tradition at Cornell University. The Dairy Bar has established itself in years past as a maker of high quality ice cream, and because of this, many alumni and other previous customers continually return to Cornell and make purchases at the Dairy Bar. They are also able to order it through the mail, which is a service that not many places offer. Another point of difference is that the Dairy Bar is located on the Cornell Campus. This provides a distinct advantage over the competition because it provides access to thousands of students, faculty, and staff, especially those who do not have a means of transportation off campus. It is within walking distance and also a short bus ride to these students, faculty, and staff, so if they have time in between classes or are on a break, they are able to go to the Dairy Bar if they only have a short break. One other distinction is that the Cornell Dairy Bar is mentioned to all of the newcomers that come to the Cornell Campus and take the tour. It is recommended that all visitors go to the Dairy Bar and try the ice cream, which draws people there and they might potentially make more purchases in addition to the ice cream. This, along with other word of mouth advertising by previous customers, gives the Cornell Dairy Bar a lot of free advertising to help boost its small budget. The plan will create another point of difference because the target market is specifically freshmen. The Dairy Bar has an advantage over other competitors because they have access to and can target the freshmen. The University has provided the freshmen with free bus passes, making their trip to the Dairy Bar just a short bus ride away. Since it 22 is a part of Cornell University, it is easier to go to freshmen events and promote its products. The Dairy Bar has the resources to target the freshmen well, where as a lot of its competitors cannot. More detailed information about specific targeting measures will be provided in the Promotion section of Component three. Branding and Positioning With the main objectives of reaching first-year students and converting them into repeat customers during their academic careers, the brand footprint developed for the Cornell Dairy Bar will not change. The Dairy Bar's core values of quality, tradition, and diversity will help promote the caf to newly enrolled students. Similarly, The Dairy Bar's intimate yet social personality sets it apart from the overcrowded dining options on North and Central campus. The positioning statement will change slightly to address the new target audience. Core Values Quality Tradition Diversity The positioning statement: For first-year Cornell students who want a break from over-crowded central and north campus dining, the Cornell Dairy Bar is the dining experience that they rely on to deliver a wide variety of foods and delicious dairy based desserts. With a target market of first-year undergraduate Cornell students, the perceptual map consisting of the Cornell Dairy Bar and its competitors orients itself with quality rating on the vertical axis and Personality Community Involvement Personal Sociable Essence: The lunch time caf that will provide an enjoyable atmosphere and quality food. 23 convenience ratings on the horizontal axis (Appendix, Figure 7). Relative quality is important compared to the other dining options both on and off campus, and convenience is of major importance due to the members of the target market. The majority of freshmen do not have access to a car and only mode of transportation is walking and the TCAT bus. Therefore, convenience plays a huge role in dining options. All dining options located on campus are rated relatively convenient due to their accessibility by bus or short walk. The dining halls located on North are the most convenient for the majority of the target market (freshman), and Cornell dining is known for its quality nationwide. Trillium Dining has good, quality food and is convenient with its location in the Ag quad and access to CALS students. The Dairy Bar's ice cream cart located in front of Day hall has a nice, central campus location and the ice cream is viewed as above average by 89% of Cornell faculty polled ("Case Study: Cornell Dairy Bar"). One of the Dairy bar's biggest ice cream competitors is Purity ice cream located in downtown Ithaca. However for the target market, Purity is inconvenient for regular weekday visits. The Cornell Dairy Bar is currently enjoying high quality ratings but lower convenience ratings. The Dairy Bar wants to be considered more convenient by students and therefore enjoy higher trafficking throughout the day. Since their location is unlikely to change, the challenge is to change the consumer's opinions about the Dairy Bar's convenience and move the Dairy Bar rightward on the perceptual map. Some other competitors include fast food restaurants that sell dairy based desserts and food, which are considered both inconvenient and low quality. Also, the restaurant Friendly's is known for their ice cream but overall the restaurant is of lower quality and inconvenient to the target market. Therefore, it is important for the Cornell Dairy Bar to move from inconvenient to convenient for students on the perceptual 24 map. Product The Freshmen Fifteen program has three main components: a monthly event at the Cornell Dairy Bar, greater use of the ice cream cart, and implementation of an ice cream card. To satisfy the objective of bringing more freshmen into the Cornell Dairy Bar, it would be beneficial to have a monthly promotional event at the Dairy Bar. This event could be titled "Happy Hour," and it will hand out free one scoop ice cream cones to freshmen who come in during the hour. Happy Hour was chosen as the title because typically a happy hour is used to describe free drink specials, so it will gain the attention of students. Also, since the ice cream will be free, and students like free give-a-ways, it is an appropriate title. This title fits with the Dairy Bar because the ice cream social will be both enjoyable and last for roughly an hour a month. The short term goal of this monthly event would be to get freshmen into the store for the first time so they can see what products are offered. The free ice cream acts as the incentive for them to travel to the Dairy Bar and also exposes them to the various flavors of ice cream offered. With their free bus passes, freshmen can see just how convenient it is to get to the Dairy Bar. When freshmen start coming to the Dairy Bar monthly for the free ice cream, they will begin to crave it other times as well. Perhaps when they are on campus for classes, they will remember the ice cream and make the short walk there. As a result, the long term goal of this event is to increase visitation of freshmen to the Dairy Bar. Happy Hour should be held on the first Wednesday afternoon of every month from 4pm to 5pm. The slogan for the event is "A tasty treat to help you get through the rest of 25 your week." The first Wednesday of the month is important because the date should stay as consistent as possible. As a result, when students realize the start of a new month, they will begin to associate it with free ice cream at the Dairy Bar. Wednesday was picked as the day for the event because it will act as a way to break up the work week and also because there will be fewer conflicts with other events. Because most classes end by 4pm or 4:30pm, more students will be on campus, which means the Dairy Bar will be more accessible. After a long day of classes, the Happy Hour will serve as a break before students continue on with their homework. Next, the Cornell Dairy Bar needs to utilize the ice cream cart much more than it currently does. Currently the cart is only placed outside of Day Hall during nice weather. Because of the location of the Dairy Bar, it is inconvenient for many people to visit frequently. Cornellians are often extremely busy with schoolwork, class and extracurricular activities, so the time it takes to travel to the Dairy Bar may outweigh the benefits gained from visiting. This is where the cart comes into play. The cart can be used more than just occasionally in front of Day Hall. The Dairy Bar can use the cart outside of sporting events such as football games or lacrosse games. For football, it would only be beneficial during the first few weeks when it is still warm outside, but lacrosse games normally draw a big crowd in the spring. Football and Lacrosse games were chosen because they typically draw the largest crowds in favorable weather. The cart could be parked outside of Schoellkopf Field at the lower ticket booth entrance, next to Friend Hall, so people entering the stadium could see the ice cream and purchase it before they go in, or as they are leaving. This location is preferred because many students going to the games enter through this area. The cart should only be used when weather permits, which can be 26 determined by the manager on the event day. If a football game takes place on a cold fall day, it would not be useful to try to sell ice cream because very few people will want to buy it. Also, if it is raining, people will be less inclined to buy, so it would not be beneficial to use the cart. Because the cart is dependant on weather, it should not be advertised before games. By just being placed outside the stadium, the cart will act as advertising for the Dairy Bar and will increase ice cream sales. With the cart placed outside of various sporting events, people will be able to taste the ice cream and will visit the Dairy Bar in the future to buy more. The cart should be placed on North Campus, at the first arch of Balch Hall, after students have prelims. After prelims, the Dairy bar has the potential to make many sales. Prelims are a stressful time for many Cornellians, so the possibility of buying ice cream afterwards will be very appealing. For example, if a student feels he/she did not perform well on the prelim, he/she may see the ice cream cart and use it as a "pick-me-up." As a result, the student will think highly of the Cornell Dairy Bar and will visit in the future when they are in need of ice cream as a positive emotional boost. On the other hand if a student feels he/she performed well, the ice cream can be used as a reward. The cart should again only be used during favorable weather, and the manager can decide based on the daily weather report. The cart does not need to be advertised before hand because incase of cold or rainy weather, the Dairy Bar does not have to waste time outside for low sales. The cart itself will serve as an advertisement for the Dairy Bar because it will have a sign for the Dairy Bar on the front. By going on the Cornell website, the prelim schedule can be found ( The nights with the most exams should be the primary target of the Dairy Bar. For 2007, the most important 27 remaining nights for this semester include October 30, November 1, November 6, November 8, November 13 and November 15. The Dairy Bar can look up the spring prelim schedule and set up the cart on nights with the most prelims. The cart should set up in the archway from 8:30pm until 10:00pm. Most prelims begin at 7 or 7:30pm and end at 9. This would be the prime time for students returning to North campus from their tests. The cart will prove to be a vital promotion for the Cornell Dairy Bar because it makes buying Dairy Bar ice cream more convenient and will promote visits to the Dairy Bar on other occasions. Finally, the Dairy Bar can introduce a promotional ice cream card, where students can buy five ice cream cones, no matter what size, and get the sixth one for free. The free ice cream will be one scoop, either in a cup or cone, of the flavor of his/her choice. This card acts as an additional incentive to go to the Dairy Bar to buy ice cream. After the student purchases their ice cream, he/she will hand the staff member at the register his/her card, and the staff member will check off the card with a unique Dairy Bar stamp, to avoid fraud. The Dairy Bar should have two stamps, one to remain at the register and an additional stamp for the cart. The cards will be handed out to students who come into the Dairy Bar or who buy ice cream from the cart. This promotion should not be limited to freshmen only because it will be difficult to keep track of whether customers were freshman or not. Also, by opening it to all Cornell students, it will give the Dairy Bar more opportunity to increase sales. Promotion Promotional Tactics 28 For the Freshmen Fifteen marketing program, there are two tactics that are going to be implemented. One of these is advertising for the new promotional card and also for the happy hour. Another tactic is sales promotions. The first tactic that the Freshmen Fifteen will implement is advertising. There are many reasons for advertising, and the advertising will be both short and long term. The point is to increase the awareness of the Dairy Bar to freshmen and to make sure that they are conscious of the promotional card, the cart, and the Happy Hour. The Dairy Bar will be advertising through posters concentrated at the dining halls, and in all North Campus freshmen dorms: Mary Donlon, Clara Dickson, Jameson, Mews, Court-Kay- Bauer, Balch, Low-Rises, High- Rises, and the Town Houses. (See appendix, figure 11). These posters will be placed in the entrances of each dorm and will be black print on eye-catching colored paper. They will also provide enough information to make the freshmen interested and if they have never heard of the Dairy Bar, make them curious and encourage them to visit the Dairy Bar to try it for themselves. This will be a long term campaign with the posters being replaced every month, one week before the monthly Happy Hour, with the main focus of the poster remaining the same, but just the dates on the poster changing to reflect that month's Happy Hour date and time. There will also be quarter cards handed out at the Dairy Bar and the Dairy Bar Cart. These quarter cards will have the same information as the posters, and will serve as a friendly reminder of the promotions offered by the Dairy Bar. They will also be black ink on brightly colored sheets of paper. Another long term component of the advertising tactic is to advertise in the Daily Sun. The advertisements would be placed in the Cornell Daily Sun and would be placed in the paper the Monday directly before the Happy Hour. The advertisement would be a 29 small advertisement, about 2-3 column inches in black and white. The advertisement would contain the time and date of the Happy Hour and would encourage everyone to visit the Dairy Bar. It would be very similar to the flyer. The short term component of the advertising tactic would be promotion of the products during the freshmen orientation week. There would be people tabling at the North Campus dining facilities during the dinner hours, which are from 5:30 to 8:30 p.m. This would start on the first day of orientation and last for one week. These people would be friendly and energetic and talk to the freshmen walking into and out from dinner about the Dairy Bar and about all of the promotions the Dairy Bar is offering. They would also be handing out quarter cards to the students. The other tactic that the Freshmen Fifteen Program will use is sales promotion. The goal of this tactic is to increase awareness of the Dairy Bar and to attract more customers. It can also be used to increase the frequency of visits by customers. This is done through the introduction of the card, the increased use of the cart, and the monthly Happy Hour, as discussed in the Product section. Implementation Plan Through the use of a timeline and budget the Dairy Bar will be able to analyze and fully prepare for the promotions for which they will use (Appendix, figure 8 and 9). Place As part of the Cornell campus, the Cornell Dairy Bar utilizes the raw materials the Cornell Veterinary School provides and, therefore, has a very short and effective distribution process. All the dairy products offered at the Dairy Bar are produced by 30 Cornell. The milk comes from the livestock under the care of the Veterinary school and then processed at Stocking Hall right next to the Dairy Bar (Appendix, Figure 10). The ice cream and dairy products sold at the Dairy Bar are as fresh as possible, and carry the renowned excellence of Cornell Dairy. We are not currently suggesting changing their supply chain as part of our marketing strategy. However, in terms of distributing the products to the customers, the Cornell Dairy Bar could have a much more efficient store layout. Given the size of the store, not much can be changed in terms of space available. However, the ice cream flavors can be made visible to the customers while they are waiting in line. This would give customers a chance to decide exactly what ice cream they will choose before they order, and keep the line moving faster during peak store hours. Also, the dairy bar can make a more efficient line during high volume times by roping off a section of the store. The location of the Dairy Bar will remain unchanged and continue to utilize their current distribution process. Conclusion The Cornell Dairy Bar embodies the tradition of Cornell University and the excellence of Cornell Dairy products in their store. These benefits help separate the Dairy Bar from other dining options on Cornell's campus. The ice cream provided there is of excellent quality and above average taste, and the main reason customers go to the Dairy Bar. Therefore, with the "Freshmen Fifteen" program, the ice cream will be highlighted and get more customers (freshmen) into the store. Once they are repeat customers, students will start to purchase other food items not just ice cream. This program will enable the Dairy bar to enjoy more student trafficking and ultimately more revenue. By 31 changing the incentives to visit the Cornell Dairy Bar, and making lifetime customers, the store will no longer be considered inconvenient to the student population. Works Cited "Case Study: The Cornell Dairy Bar" "The Cornell Dairy Store and Bar." "Entering Class Profile." "Facts about Cornell." "Ice Cream Gets Brand Intensive." Dairy Foods. Troy: Nov 2006. "Kemps Launches New 100 Calorie Ice Cream Novelties and Caribou Coffee Bite-Sized Treats." PR Newswire. New York: April 3, 2007. "Tompkins County Quick Facts from the US Census Bureau" qfd/states/36/36109.html Udabage, P., Augustin, M.A. "Dairy ingredients in ice-cream." Austrailian Journal of Dairy Technology. Melbourne: Apr. 2003. 32 Appendix Figure 1. BCG Matrix Relative Market Share HIGH LOW Star HIGH ? Problem Child "made to order" Wraps Dog Soups Ice Cream $ Cash Cow Milk Market Growth LOW Figure 2. SWOT Analysis INTERNAL FACTORS Management Open to new ideas, especially about the layout and advertising Understaffed, especially at peak hours Restocking at peak hours instead of lulls No vegetarian soup option STRENGTHS WEAKNESSES Product mix Diversity of products such as 33 Marketing Strategy sandwiches and soups Willingness to let unprofitable products go Seasonal ice cream variation Getting out to community events Advertising at Cornell Athletics Events Statistically above average Cart at Day Hall Mailing of ice cream Timely deliveries Air conditioned Clean Well maintained Outdoor and indoor seating Bus stop in front Near a pay lot Good atmosphere Not a very diverse soup selection Don't advertise other foods Poor merchandising in store Lower nutrition values in a health conscious society Mailing is expensive Quality Distribution Facilities Poor store layout Could use new "vibe" in store (new paint, decorations, etc) Not in highly student trafficked area Not centralized on campus Parking lot usually full during school hours Location EXTERNAL FACTORS OPPORTUN I T I ES THREATS 34 Current Customers Prospective Customers Increase current consumption Free word of mouth advertising Returning of Alumni 3000 new undergraduates every year, plus new graduate students More local people outside of Cornell New awareness due to current marketing plan (Cornell Athletics and events in Ithaca) Big Red Bucks cater to students Incoming Freshmen and their families Wide range of on and off campus events Loss to competitors Negative word of mouth advertising Location Location Unawareness Other dining facilities Economic Environment Low budget Advertising Restrictions Figure 3. Product Market Market Products 35 Current Current Market Penetration Increase advertising Create incentives such as giveaways and discounts New Market Development Vegetarian options Healthier options Soy milk products New Product development New ice cream flavors More sandwich, soup, and pastry options Diversification Vegetarians Specialty coffee bar Salads Figure 4. Competitors FACTOR COMPET I TOR 1 Trillium COMPET I TOR 2 Purity COMPET I TOR 3 Caf Pacific 36 Price Quality Product Line .99 Ice Cream Bar High American, Italian, Mexican, Asian, Salad Bar, Sandwiches, Beverages, Ice Cream Bars Many workers behind food counters and also at checkout stands, very efficient Kennedy Hall, Cornell Ag Quad Limited to Cornell $2.60 large High American cuisine, Ice Cream, Pastries, Cakes $1.80 one scoop High Ice Cream, Pastries, Japanese Cuisine, Beverages Service Usually 5-6 workers behind counter at peak hours, somewhat efficient Highway 13 in Ithaca Local advertising, based in Ithaca, but operates in central New York Top quality ice cream and cakes, convenient location for Ithaca residents, good food, large variety of products Small store only a few workers, inefficient at busy times Dryden Rd. in Collegetown Local advertising, Cornell advertising Location Advertising Reputation Easy, convenient, quality food, variety of products College hangout, very good desserts, good product variety, convenient for Collegetown residents, carryout 37 Figure 5. Survey in Dairy Bar Name:_____________________________ Net ID: _____________ Would you like to receive email notices about special promotions? YES Freshman (circle): YES NO NO Please answer the following questions: 1. Is this your first visit to the Cornell Dairy Bar? 2. If not, how many times have you been here before? 3. What did you order today or what have you ordered in the past? 4. Please rate the following on a scale of 1 to 10, with 10 being the best a. Service Quality ______ b. Food Quality ______ c. Overall Experience ______ 5. Questions or comments: Figure 6. End of the Year Class Survey Name: ____________________________ Year: ___________________ Net ID: ____________ 1. How many times have you visited the Cornell Dairy Bar this year (2007-2008)? 2. If you have visited, please rate your overall experience from 1 to 10, with 10 being the best. 3. How did you hear first hear about the Dairy Bar? 4. Were you aware of promotions at the Dairy Bar this year? 38 Figure 7. Perceptual Map High Quality Purity Dairy Bar Caf Pacifica Inconvenient Cafeteria in Veterinary school Ice cream Cart Trillium Dining North Campus Dining Halls Convenient Bear Necessities Friendly's Fast food Restaurants Low Quality 39 Figure 8. Timeline Happy Hour Logistics o First Wednesday of November, December, February, March, April, May o 4:00-5:00 PM o Cornell Dairy Bar Program o Held the first Wednesday of every month o Freshmen receive a free scoop of ice cream Promotional Tactics o Once a month, the week before Happy Hour Place posters in dining halls and dorms throughout North Campus o Once a month, Monday before Happy Hour Advertisement placed in Cornell Daily Sun promoting Happy Hour o During Orientation week Hand out fliers to freshmen at tables Ice Cream Cart Logistics o During Football Games and Lacrosse Games while weather is still warm o Outside gates of Schoellkopf Stadium o Also after major exam nights on North Campus under the first archway of Balch Hall Program o The cart contains a limited variety of flavors o Allows customers to purchase ice cream without going to the Dairy Bar Promotional Tactics o Locate the cart near the lower ticket booth entrance to maximize sales o Also locate the cart under the archway of Balch where freshmen must pass to get to dorms o Use vibrant colors on the cart to attract customers Ice Cream Card Logistics o Cards are distributed at the Dairy Bar and ice cream cart o Distributed at time of first ice cream purchase Program o Buy 5 ice creams, get one free o The card will be stamped each time ice cream is bought Promotional Tactics o Word of mouth ie. students will see other students with their cards 40 Figure 9. Budgets for the Freshmen Fifteen Budget for the Extra Sales Representatives Item Sales Representatives at the Freshmen Orientation Sales Representative at Balch Arch Sales Representative at Sporting Events Wage/person/hour People Hours Days Total $7.15 $7.15 $7.15 2 2 2 3 2 3 7 6 10 $300.30 $171.60 $429.00 Budget for Freshmen Fifteen Items Item Flyers to be Posted Cost/unit $0.10 per page Quantity Frequency Once a month for 8 months Once a month for 8 months 8 social Once a month for 8 months 2 Total 50 50 whole pages (4 cards per page) 5 half gallons/social 3 column inches $40.00 Quarter Cards Cost of Ice Cream Advertisement in the Daily Sun Unique stamp for Card $0.10 per page $5.00 per half gallon $8.00/column inch $5 $40.00 $200.00 $192.00 $7 Total Estimated Annual Cost of Freshmen Fifteen $1,379.90 41 Figure 10. Distribution Channel COr Cornell Cows Stocking Hall for process-ing Cornell Dairy Bar 42 At the Dairy Bar Freshmen get a free scoop of ice cream. First Wednesday of every month November 7th 4:00-5:00 PM "A tasty treat to help you get through the rest of your week" 43 ...
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