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    JuicyTart Social Media Marketing JuicyTart Social Media Marketing Document Transcript

    • JuicyTart  Facebook  Strategy  Michelle  Moon,  Pedram  Rahmanian,  Prad  Nelluru,  Billy  Xu,  Kersey  Tse,  Jenny  Che  
    •  Table  of  Contents  Executive  Summary ................................................................................................................3  Figure  1:  JuicyTart  Interior ...........................................................................................................4  Company  Background............................................................................................................4  Current  Use  of  Information  Technology..........................................................................5  Figure  2:  JuicyTart’s  Facebook  Activity  (August  2010-­April  27,  2011)..........................6  Goals ............................................................................................................................................7  Proposed  Solution  1:  Summer  Orientation ....................................................................7  Proposed  Solution  2:  Event  Standards.............................................................................8  Proposed  Solution  3:  Karaoke  Contest ............................................................................9  Proposed  Solution  4:  Picture  contest .............................................................................10  Proposed  Solution  5:  Checking  In....................................................................................11  Rejected  Solution:  Facebook  Game .................................................................................12  Figure  3............................................................................................................................................................. 12  Financing..................................................................................................................................13  Competitors.............................................................................................................................13  Figure  4:  Location  of  Yogurt  Shops  Near  UT ......................................................................... 15  Figure  5:  Facebook  “Likes”  of  Yogurt  Shops  Near  UT......................................................... 15  Conclusion................................................................................................................................16  References ...............................................................................................................................16    
    • Executive  Summary  After  looking  into  JuicyTart’s  business  model  and  speaking  with  the  manager,  it  is  clear  that  this  frozen  yogurt  shop  has  a  unique  interpretation  of  the  meaning  of  success.  The  dedication  to  enhancing  the  frozen  yogurt  experience  by  making  JuicyTart  a  popular  place  for  students  to  gather  demonstrates  the  company’s  mission  to  engage  with  customers  beyond  frozen  yogurt.  JuicyTart  undoubtedly  gains  strength  by  listening  to  customers  and  responding  within  means  to  enhance  customer  service.  JuicyTart  has  a  felixble  business  model,  including  incremental  cup  prices  differentiating  JuicyTart  from  the  per  ounce  princing  of  other  yogurt  shops.  Moving  forward,  this  analysis  will  seek  to  improve  the  company’s  success  by  leveraging  the  current  Facebook  page  to  integrate  JuicyTart  into  UT  culture.                     The  first  proposed  solution  aims  to  build  brand  awareness  and  brand  loyalty  by  targeting  incoming  freshman  attending  summer  orientation.  We  propose  that  JuicyTart  utilize  the  relationships  it  has  built  with  organizations  in  Austin  and  at  the  University  of  Texas  to  reach  out  and  encourage  them  to  host  social  events  during  orientation  at  JuicyTart.  This  will  not  only  increase  typically  low  summer  revenue,  but  also  introduce  the  idea  to  incoming  students  that  JuicyTart  is  a  popular  place  to  commune.    The  second  solution  is  more  specifically  targeted  to  these  organizations.  Because  JuicyTart  already  makes  commendable  contributions  to  these  nonprofits,  we  believe  the  company  should  require  these  organizations  to  publicize  JuicyTart  more  through  social  media.  We  believe  this  is  a  small  price  to  pay  in  return  for  a  profit  share  and  will  produce  great  results  for  JuicyTart.    Thirdly,  we  plan  to  execute  JuicyTart’s  desire  for  greater  interaction  with  customers  by  directly  reaching  out  to  the  audience  through  creative  means.  This  includes  a  karaokecontest  via  the  Facebook  page  with  a  karaoke  party  prize;  a  picture  posting  contest  challenging  customers  to  combine  their  artistic  abilities  and  love  for  frozen  yogurt;  and  a  reward  system  for  those  customers  who  “Check  In”  to  JuicyTart  each  time  they  visit.  We  are  confident  that  the  five  proposed  solutions  would  be  effective  in  reaching  out  to  incoming  freshman,  organizations,  and  loyal  customers.  Each  task  will  utilize  the  fan  base  of  JuicyTart’s  current  Facebook  page  in  order  to  increase  the  company’s  competitiveness  and  mission  of  integrating  JuicyTart  into  the  university  culture.    
    •  Figure  1:  JuicyTart  Interior  JuicyTart  is  known  for  its  spaciousness  and  ample  seating.  Company  Background  JuicyTart’s  proximity  to  the  University  of  Texas  makes  it  a  staple  location  for  students  to  commune  while  enjoying  a  refreshing  treat.  JuicyTart  provides  a  wide  variety  of  frozen  yogurt  flavors  ranging  from  the  traditional  vanilla  to  exotic  flavors  such  as  taro.  Customers  have  the  freedom  to  add  the  quantity  and  type  of  frozen  yogurt  toppings  into  their  bowls  as  they  desire.  There  are  several  features  that  make  JuicyTart  unique.  The  cost  of  a  bowl  of  yogurt  is  not  dependent  on  its  final  weight  as  is  common  with  most  other  frozen  yogurt  boutiques.  Instead,  employees  merely  judge  whether  the  bowl  is  half-­‐full  or  full.   This   divergence   from   the   norm   demands   less   decision   making   and  approximating   by   the   customer.   The   most   distinguishing   feature   for   JuicyTart   is  certainly   its   spacious   location.    Allocation   of   two-­‐thirds   of   the   space   to   customer  sitting  and  a  separate  karaoke  room  makes  it  an  ideal  meeting  ground  for  friends,  organizations,  and  parties.  Swirll,  a  nearby  competitor,  on  the  other  hand,  barely  has  any  space  for  its  patrons  to  sit  down.  Events  occur  throughout  the  day  and  late  into  the  night,  as  the  store  stays  open  until  two  o’clock  in  the  morning,  two  hours  later  than   the   norm.   JuicyTart   is   also   known   to   be   a   generous   host   and   sponsor   for  various   organizations   and   events   at   the   University   and   throughout   Austin.   It  
    • conducts  fundraisers  for  about  ten  organizations  every  month.  Ten  percent  of  any  profits  coming  from  referrals  by  the  organization  over  the  course  of  the  month  are  given   to   the   organization.   This   practice   leads   to   the   organization   receiving   much  more  money  than  with  other  businesses,  which  usually  conduct  fundraisers  for  just  a  day.  The   business   prides   itself   on   being   flexible   and   responding   to   customers  within  its  means.  For  example,  it  will  make  changes  to  its  line-­‐up  of  yogurt  flavors  depending   on   customer   requests.   We   can   see   an   example   of   the   flexibility   of   the  business  when  the  scale  to  weigh  yogurt  broke.  They  had  no  option  but  to  adopt  fixed  prices  while  the  scale  was  sent  for  repair.  Noticing  the  positive  response  from  customers  over  this  change,  they  decided  to  make  it  permanent.  Such  flexibility  and  responsiveness  is  a  great  asset  in  a  competitive  environment.    Current  Use  of  Information  Technology  Facebook  has  been  an  important  part  of  JuicyTart’s  marketing  strategy  from  the  start.  When  JuicyTart  opened  its  doors  in  January  last  year,  they  already  had  400  likes   on   Facebook.   This   was   achieved   by   using   friends   and   family   on   campus   to  create  buzz  about  the  opening.  Currently,  JuicyTart  has  over  1100  likes.  The  page  is  used   to   post   about   changes   they   are   making   to   the   line-­‐up   of   flavors,   respond   to  customer  comments  and  queries,  and  to  otherwise  create  a  conversation  with  its  patrons.  Coupon  codes  have  also  been  distributed  via  the  page.  Overall,  the  page  is  relatively  inactive  with  a  post  made  every  few  days.  According  to  Patrick,  JuicyTart  would   like   to   utilize   the   page   more,   but   is   prevented   from   doing   so   due   to  “inadequate  resources”.  He  claims  that  JuicyTart  would  need  someone  on  the  job  at  all  times  to  adequately  take  advantage  of  Facebook.  He  also  inquired  about  whether  or   not   Facebook   had   certain   etiquette   to   follow.   For   example,   how   long   after   a  customer   posts   on   the   Facebook   wall   should   JuicyTart   respond?   This   lack   of  resources   and   uncertainty   prevents   the   business   from   fully   utilizing   the   current  Facebook  page  as  a  platform  for  engaging  with  customers.  Lastly,  Patrick  mentioned  that  he  wants  to  engage  customers  on  Facebook  with  topics  outside  of  frozen  yogurt  such  as  pop  culture  or  politics.  In  addition  to  the  Facebook  page,  the  business  also  maintains  a  website.  It  
    • features   a   blog,   JuicyTart’s   “story”,   the   store   menu,   and   JuicyTart’s   location   and  contact  information.  However,  the  blog  hasn’t  been  updated  since  March  2010  and  the  menu  features  flavors  not  currently  offered  at  the  boutique.  There  is  also  a  page  where  customers  can  sign  up  for  the  Tart  Lover’s  Club,  which  gives  its  members  an  automatic   10%   discount.   Presumably,   customers   who   sign   up   will   receive   emails  with  special  deals  and  announcements;  however,  this  is  not  explicitly  stated  on  the  website.  Another  local  business,  Which  Wich,  offers  members  of  its  Vibe  Club  emails  with  discounts  and  announcements.  That  business  is  able  to  effectively  broadcast  promotions   and   announcements   about   new   sandwiches,   and   therefore,   increase  brand  impressions  and  drive  sales.  At  the  top  of  the  JuicyTart  website  are  the  links  to  the  Twitter  and  Facebook  pages  of  the  business.  Their  Twitter  page  is  moderately  active,  with  a  tweet  being  sent  out  every  ten  days  or  so.      3  Figure  2:  JuicyTart’s  Facebook  Activity  (August  2010-­‐April  27,  2011)  JuicyTart  has  a  fairly  active  Facebook  with  fans  typically  “Liking”  the  page  more  than  they  engage  with  it.  
    • Goals  JuicyTart’s  mission  is  to  serve  yogurt  of  the  highest  quality  and  greatest  taste,  giving  customers  a  variety  of  great  choices,  while  being  a  business  that  customers  view  as  a  “hang-­‐out  place.”  Our  interview  with  Patrick  revealed  to  us  that  they  care  deeply  about  the  customer  experience  even  if  it  comes  at  the  cost  of  less  marginal  revenue  in  the  short  run.  Their  choice  of  keeping  the  fixed-­‐cost  model  is  indicative  of  this  value.  In  the  long  term,  they  want  to  be  part  of  UT  culture.  Patrick  named  Cain  &  Abel’s  and  Plucker’s  as  representative  businesses  that  are  staple  to  University  students.  JuicyTart  firmly  believes  that  these  loyal  customers  will  ultimately  compensate  for  the  short  run  financial  loss.  Our  goal  is  to  leverage  JuicyTart’s  Facebook  page  in  a  way  that  will  help  the  business  become  an  integral  part  of  University  of  Texas  culture.  We  must  recognize  JuicyTart’s  limited  resources,  difficulty  in  maintaining  an  active  Facebook  presence,  and  core  mission  while  pursuing  this  goal.  Proposed  Solution  1:  Summer  Orientation  The  key  to  any  successful  marketing  campaign  is  to  attract  lifelong  customers  at   an   early   age.   JuicyTart   seeks   to   accomplish   this   by   targeting   freshman   at   the  University   upon   their   arrival   at   orientation.   Utilizing   its   current   IT   setup   on  Facebook,   JuicyTart   can   easily   draw   the   attention   of   visiting   freshman   during  orientation  through  its  well-­‐established  relationships  with  the  organizations  at  the  University.   Already   a   valuable   fundraising   partner   of   the   groups,   JuicyTart   would  invite   these   organizations   to   hold   socials   for   their   prospective   members   at   the  yogurt   shop.   The   scorching   Texas   weather   and   abundance   of   free   time   between  orientation  events  will  appeal  to  new  students  who  will  welcome  the  opportunity  for   frozen   yogurt   and   meeting   new   people.   In   addition,   the   shop   would   offer   a  percentage   of   the   sales   towards   the   fundraising   of   the   organizations.   In   return,  JuicyTart   asks   that   the   groups   request   the   new   members   to   like   their   page   on  Facebook  for  the  great  time.    By  exploiting  the  “like”  feature  of  Facebook,  JuicyTart  will   be   able   to   establish   a   competitive   advantage   over   other   frozen   yogurt   shops  through  its  branding.  When  students  "like"  the  JuicyTart  page,  a  post  will  appear  on  their   friends’   newsfeeds.   This   fosters   motivation   for   these   other   students   to   visit  
    • JuicyTart   when   they   come   to   campus.   This   pyramid   effect   will   continue   into   the  school   year   as   students   repeatedly   visit   JuicyTart.   Establishing   loyal   customers   is  the  first  step  to  integrating  JuicyTart  into  University  culture.    The  usage  of  Facebook  allows  JuicyTart  to  effortlessly  handle  events.  With  the  “events”  feature  of  Facebook,  student  organizations  can  quickly  spread  the  word  of  any  events  at  Juicy  Tart  to  the  new  members.  While  few  students  would  check  their   emails   during   orientation,   many   freshmen   will   be   updating   their   Facebook;  consequently,  the  organization  and  JuicyTart  will  be  able  to  easily  coordinate  the  event,  as  all  the  logistical  information  will  be  on  the  events  page.  The  students  will  know  the  meeting  location  and  times  for  the  event,  and  the  coordinators  will  know  how  many  people  to  expect.      Proposed  Solution  2:  Event  Standards  Currently  JuicyTart  conducts  month-­‐long  fundraisers  with  about  ten  student  organizations  every  month.  Almost  all  organizations  publicize  their  fundraisers  by  creating  Facebook  events  and  inviting  their  members.  The  members  in  turn  invite  their  friends,  allowing  several  hundred  people  to  be  invited  to  the  fundraiser  within  a  few  hours.       We  recommend  that  JuicyTart  set  a  number  of  requirements  for  each  of  its  partner  organizations  to  follow  when  hosting  their  events.  All  partner  organizations  should  be  required  to  do  the  following:  • Create  a  Facebook  event  with  the  title  formatted  as:  “JuicyTart  Fundraiser  for  [organization]”  • Include  a  short  message  by  JuicyTart  in  the  event  description  • Include  JuicyTart’s  full  address  in  the  event  location    • Include  JuicyTart’s  page  as  an  administrator  or  creator  of  the  event  This  plan  will  result  in  a  standardized  event  page  that  can  help  JuicyTart  control  and  reinforce  its  brand.  If  JuicyTart’s  page  is  a  creator  of  the  event,  customers  are  within  reach  of  the  page  with  just  one  click.  This  is  a  cost-­‐free  way  to  advertise  and  increase  customer  exposure  to  JuicyTart.  This  plan  would  simply  require  JuicyTart  to  prepare  a  sheet  of  information  listing  these  requirements  and  give  it  to  any  organization  they  are  working  with.  
    • Proposed  Solution  3:  Karaoke  Contest  The  main  goal  of  JuicyTart’s  Facebook  strategy  is  to  make  JuicyTart  an  integral  part  of  the  University  of  Texas  culture  like  Plucker’s  and  Cain  &  Abel’s.  To  do  this  JuicyTart  needs  to  focus  on  being  interactive  with  students,  organizations,  and  the  University.  JuicyTart  needs  to  engage  with  customers  beyond  frozen  yogurt  and  make  its  experience  unique.  JuicyTart’s  karaoke  set  up  is  a  valuable  asset.  In  order  to  promote  the  frozen  yogurt  shop  as  a  popular  place  to  hang  out,  it  needs  to  utilize  this  resource.  Using  the  video  feature  of  a  Facebook  Page,  Juicy  Tart  can  create  an  online  karaoke  contest.  When  people  are  in  the  store  using  the  karaoke  system,  they  can  record  their  performance  and  post  the  video  on  JuicyTart’s  Facebook  page.  This  would  be  their  submission  to  the  karaoke  contest.  During  the  month,  JuicyTart’s  Facebook  fans  can  vote  for  their  favorite  contestants  by  “liking”  their  favorite  video.  At  the  end  of  the  month,  the  contestant  with  the  most  likes  will  receive  a  gift  card.  Second  and  third  place  contestants  can  receive  discounts  on  their  next  visits.  This  implementation  does  not  require  additional  IT  setup  beyond  the  current  Facebook  page.  This  is  a  cost-­‐efficient  solution  given  that  posting  videos  is  free.  In  addition,  this  would  create  content  and  value  for  the  page  and  give  people  a  reason  to  visit  and  engage  with  the  page,  both  of  which  are  critical  elements  to  a  successful  social  marketing  strategy.  This  implementation  will  not  only  create  an  online  following,  but  also  draw  attention  to  JuicyTart’s  karaoke  room.  By  giving  users  a  reason  for  spending  more  time  on  the  Facebook  page,  this  strategy  increases  JuicyTart’s  site  stickiness.  This  will  increase  brand  awareness  and  will  help  instill  JuicyTart  as  part  of  University  culture  while  gaining  new  customers,  the  store’s  overarching  goal.  The  data  that  can  be  collected  through  this  karaoke  contest  is  the  number  of  “likes”  or  followers,  and  any  comments  posted.  This  can  provide  insight  to  JuicyTart’s  growing  clientele,  which  can  be  used  as  a  measurement  of  the  success  of  the  Facebook  marketing  campaign.  
    • Proposed  Solution  4:  Picture  contest  The  purpose  of  picture  contests  is  to  engage  JuicyTart’s  active  fan  base  and  make  use  of  its  underutilized  Facebook  page.  Similar  to  the  previous  proposal,  picture  contests  are  not  difficult  to  implement  with  JuicyTart’s  current  available  functions  on  Facebook.  Picture  contests  offer  the  opportunity  for  a  wide  range  of  creativity.  For  example,  a  frozen  yogurt-­‐decorating  contest  encouraged  by  cash  prizes  or  future  JuicyTart  discounts  will  persuade  customers  to  engage  in  some  carefree,  frozen  yogurt  fun.  Once  photos  of  their  scrumptious  masterworks  are  uploaded  on  Facebook,  the  rest  of  the  JuicyTart  community  can  comment  and  vote  on  the  ones  they  deem  to  be  most  original  and  aesthetically  pleasing.  Of  course,  there  is  always  a  possibility  that  hosting  the  contest  will  turn  away  some  contestants  who  lost  in  the  process.  However,  the  effects  will  be  minimal  in  view  of  the  light-­‐hearted  nature  of  the  competition.    Another  potential  variation  of  picture  contests,  which  more  or  less  crosses  into  the  realm  of  student  organization  outreach,  is  introducing  theme-­‐based  photo  events.  For  example,  JuicyTart  could  designate  one  day  as  “Texas  Pride  Day”  and  challenge  existing  student  organizations  to  adorn  their  members  in  apparel  concurrent  with  the  “Texas  Pride”  theme.  Then  they  would  flock  to  JuicyTart,  pose  for  pictures,  and  post  them  on  Facebook.  The  photos  that  are  most  outstanding  or  most  imaginative  by  count  of  votes,  or  Facebook  “likes”,  would  determine  the  winner  of  the  contest.  This  solution  is  a  fantastic  way  to  fulfill  JuicyTart’s  mission  of  engaging  with  customers  beyond  frozen  yogurt.  Facebook  applications  designed  to  streamline  the  process  could  be  created  and  implemented  for  the  contests.  One  that  has  already  been  made  by  Facebook  is  the  polling  system.  If  JuicyTart  believes  creating  their  own  application  exceeds  their  resources,  preexisting  Facebook  polls  certainly  provide  a  cost-­‐effective  alternative  for  the  local  company.    
    • Proposed  Solution  5:  Checking  In  Facebook  recently  launched  a  new  function  that  is  attracting  a  great  deal  of  customers  to  Chipotle.  Chipotle  offered  buy  one  get  one  free  menu  items  nationwide  to   customers   who   showed   that   they   “Checked   In”   to   Chipotle   on   Facebook.   The  purpose  of  the  promotion  was  to  direct  Facebook  users  to  Chipotle’s  Facebook  page  and  the  company’s  new  commitment  to  using  fresh,  unprocessed  foods  raised  with  respect  for  animals,  the  environment  and  the  farmers’  "Food  with  Integrity."  As  a  result  of  this  promotion,  thousands  of  people  came  flocking  to  Chipotle  to  get  their  free   menu   item.   As   each   individual   checked   in,   it   showed   up   on   their   friend’s  Facebook   newsfeed   and   the   promotion   spread   like   wildfire.   It   achieved   both   the  purpose   of   getting   more   customers   and   directing   potential   customers   to   the   new  Facebook  page.  It  was  successful  because  Facebook  is  a  social  media  application  that  produces  viral  effects.  When  one  friend  checks  in,  his  or  her  friends  are  notified  and  become  aware  of  the  offer  and  Facebook  page  of  the  business.  Facebook’s  implementation  of  the  “Check  In”  function  mimics  Foursquare’s  function  as  a  location  based  application  where  users  check  in  and  gather  up  points  to   buy   badges   and   get   special   offers   and   promotions.   Foursquare   specifically  connects   businesses   with   users.   Businesses   customize   deals   and   offers   that   are  available  only  during  a  specific  time  frame.  The  deal  is  unknown  until  the  customer  physically  checks  in  at  the  store.  Because  of  the  large  user  base  and  the  network  effects  that  come  with  social  media  applications,  the  implementation  of  having  customers  check  in  to  JuicyTart  can  produce  the  same  results  as  the  Chipotle  case  study  and  Foursquare’s  success.  The  target  audience  of  JuicyTart  is  college  students  who  are  constantly  on  Facebook.  By  offering  deals  for  checking  in  at  the  store  such  as  15%  off  a  frozen  yogurt  purchase,  it  gives  students  incentives  to  come  to  the  store.  It  is  also  an  excellent  way  to  attract  loyal  customers.  JuicyTart  is  very  attractive  due  to  the  atmosphere  and  environment  that  attracts  large  groups.  The  store  is  spacious  and  can  hold  a  lot  of  people.  By  checking  in,  it  stimulates  the  viral  effect  on  Facebook  by  popping  up  on  everyone’s  newsfeed.  Checking  in  allows  people  who  have  not  heard  of  JuicyTart  to  explore  the  company’s  Facebook  page  and  website.  Checking  in  on  Facebook  
    • certainly  improves  visibility  on  campus  and  brings  the  company  one  step  closer  to  being  integrated  into  University  culture.  Rejected  Solution:  Facebook  Game     Immediately  after  analyzing  JuicyTart’s  stagnant  Facebook  position,  one  obvious  solution  that  occurred  to  us  was  to  create  a  game  application  that  would  somehow  strengthen  JuicyTart’s  association  with  frozen  yogurt.  The  reasoning  behind  this  initial  assumption  was  that  games  are  generally  a  good  way  to  build  telepresence  and  gather  attention,  especially  if  it  has  an  interesting  theme  (e.g.  Cupcake  Corner).  However,  further  analysis  indicated  that  the  costs  incurred  and  time  allocated  for  this  project  will  be  hard-­‐pressed  to  outweigh  the  potential  benefits.    A  Facebook  game  would  require  initial  fixed  costs,  ranging  somewhere  in  the  thousands.  Software  developers  need  to  be  paid  a  reasonable  amount  to  develop  something  that  will  not  only  attract  and  engage  players  but  also  operate  in  tandem  with  the  JuicyTart  theme.  Once  an  acceptable  game  is  developed,  the  game  must  be  submitted  to  the  Facebook  Application  directory  where  it  will  compete  with  thousands  of  other  applications  for  users.  Given  the  difficulty  of  the  task,  our  group  has  decided  not  to  propose  a  game.  Figure  3.  1.  Application  creation  -­‐-­‐-­‐-­‐-­‐-­‐  Cost:  $1000  (conservative  estimate)  2.  Submission  process  -­‐-­‐-­‐-­‐-­‐  Cost:  $0  3.  Release  and  future  operations  -­‐-­‐-­‐-­‐-­‐  Cost:  alpha  (maintenance  fee  per  year)  x  2*    Expected  Value  =  -­‐1000(1-­‐p)  +  (gain  -­‐  2  x  alpha)(p)  =  0                  -­‐1000  -­‐  (2  x  alpha  -­‐  1000)(p)  +  (gain)(p)  =  0                  (gain  +  1000  -­‐  2  x  alpha)(p)  =  1000    Case  1:  Assume  gain  =  1000  +  2  x  alpha  -­‐-­‐-­‐-­‐>  0%  investment  return  Then:  p  =  50%.  Putting  this  in  perspective,  we  have  to  be  at  least  50%  sure  that  the  application  will  work  before  we  roll  it  out.  We  also  don’t  expect  the  application  to  hurt  or  help  us.      Case  2:  Assume  gain  =  2000  +  2  x  alpha  -­‐-­‐-­‐-­‐>  roughly  100%  investment  return  Then:  p  =  33.33%.  If  we  are  sure  that  the  application  will  have  1/3  of  a  chance  of  gaining  traction  and  we  can  get  350  customers  to  go  to  JuicyTart  once  because  of  the  application,  then  the  idea  is  valid.      Case  3:  Assume  gain  =  3000  +  2  x  alpha  -­‐-­‐-­‐-­‐>  roughly  200%  investment  return  Then:  p  =  25%.  If  we  are  sure  that  the  application  will  have  1/4  of  a  chance  of  gaining  traction  and  we  can  get  700  customers  to  go  to  JuicyTart  once  because  of  the  application,  then  the  idea  is  valid.    
    •    In  the  cases  above,  the  probability  of  the  Facebook  application  succeeding  has  to  be  rather  high  for  us  to  see  any  decent  ROIs  (return  on  investment).  The  very  nature  the  application  poses  a  problem  because  the  application  must  satisfy  two  goals:  1)  Must  be  fun  so  that  people  will  play  it  2)  Has  to  tie  to  JuicyTart  and  frozen  yogurt.  Given  the  difficulty  of  the  task,  our  group  has  decided  to  not  propose  a  game.  Financing  Most  of  our  proposed  solutions  do  not  require  much  capital  to  start.  The  Facebook  applications  that  serve  to  carry  out  our  proposals  are  small  in  scope  and  should  not  exceed  a  few  hundred  dollars  if  JuicyTart  chooses  to  implement  them.  The  solutions  we  have  presented  offer  options  that  do  not  require  an  additional  application,  but  rather  use  the  free,  built-­‐in  features  of  Facebook  (such  as  the  picture  contest  vote  counting  procedure  using  “likes”).  Almost  all  of  the  expenses  come  from  the  cost  of  the  coupons,  discounts,  and  other  promotions  affiliated  with  the  strategy.  Other  costs  include  labor  required  to  manage  the  Facebook  promotions.  Competitors  After  speaking  with  employees  at  both  Swirll  and  Red  Mango,  it  is  apparent  that  the  Swirll  Facebook  page  is  managed  in  a  similar  fashion  to  JuicyTart’s.  Swirll  does  not  have  a  designated  employee  to  manage  the  page,  but  rather  has  two  or  three  employees  who  check  the  website  every  few  days.  Although  Swirll  makes  an  effort  to  post  on  their  wall  at  least  twice  a  month  with  updates  on  flavors  and  loyalty  programs,  JuicyTart  obviously  has  a  more  active  page  with  a  greater  fan  base  and  range  of  topics  discussed.  Red  Mango  undoubtedly  utilizes  its  Facebook  page  the  best  of  all  three  frozen  yogurt  shops.  However,  this  store  has  a  substantial  advantage  due  to  the  fact  that  the  company  hired  a  Public  Relations  employee  to  specifically  manage  Red  Mango’s  social  networking  sites:  Facebook  and  Twitter.  This  frozen  yogurt  shop  has  accumulated  over  5,000  likes,  the  majority  of  which  were  incurred  in  the  past  two  months.  Red  Mango  held  a  sorority  flavor-­‐naming  contest  this  past  month  that  
    • challenged  the  thirteen  University  of  Texas  Panhellenic  sororities  to  post  as  many  comments  as  possible  on  the  Red  Mango  wall.  However,  the  comments  had  to  mention  both  the  sorority  name  and  how  much  the  group  “loves  Red  Mango”.  For  example,  “Alpha  Delta  Pi  loves  Red  Mango!”.    Also,  each  person  that  posted  had  to  “Like”  the  Facebook  page  as  well.  The  winning  sorority  had  a  flavor  named  after  them  for  the  summer  as  well  as  a  free  frozen  yogurt  party  hosted  by  Red  Mango  for  the  organization.  This  contest  led  to  an  exponential  increase  in  activity  on  the  Red  Mango  Facebook  wall  and  expanded  the  network  effect  of  the  company’s  consumers.  Each  time  a  user  liked  the  page,  the  activity  was  posted  on  their  own  wall  for  their  friends  to  see.  The  competitive  nature  of  the  sororities  inspired  the  girls  to  send  mass  Facebook  messages  to  all  of  their  friends  at  the  University  for  help.  They  even  reached  out  to  their  respective  sorority  chapters  across  the  nation  for  support.  This  contest  was  a  brilliant  way  to  brand  both  Red  Mango  and  sororities  to  the  University.  Employees  at  Red  Mango  explained  that  the  contest  began  once  the  weather  became  warmer.  Hence,  it  is  difficult  to  assume  whether  the  Facebook  contest  or  weather  is  the  cause  for  a  recent  increase  in  customers.  Regardless  of  whether  the  impact  is  seen  now,  summer  will  undoubtedly  reveal  the  power  of  the  contest  to  Red  Mango  as  the  winning  sorority  will  inevitably  visit  the  frozen  yogurt  shop  more  often  in  order  to  show  incoming  members  the  popularity  of  their  organization.  We  believe  that  the  solutions  we  have  suggested  such  as  a  karaoke  or  picture  contest  will  produce  a  similar  viral  effect  for  JuicyTart  and  develop  an  impressive  brand  for  the  company.  
    •  Figure  4:  Location  of  Yogurt  Shops  Near  UT  JuicyTart,  Swirll,  and  Red  Mango  have  the  most  convenient  locations  close  to  the  University  of  Texas  campus.    Figure  5:  Facebook  “Likes”  of  Yogurt  Shops  Near  UT  Red  Mango  clearly  leads  nearby  frozen  yogurt  shops  in  number  of  Facebook  “Likes”.  However,  this  number  could  be  viewed  as  an  outlier  with  JuicyTart  being  the  next  highest  value.  
    • Conclusion  JuicyTart’s  business  model  and  strife  for  enhancing  the  quality  of  the  frozen  yogurt  experience  makes  the  company  a  formidable  competitor  to  other  frozen  yogurt  shops.  The  company’s  mission  of  integrating  the  shop  into  University  culture  is  a  daunting  task,  but  we  believe  we  have  presented  solutions  that  will  efficiently  use  the  current  Facebook  page  for  the  company  to  move  forward  with  this  goal.  Utilizing  summer  orientation,  organization  partnerships,  karaoke  and  picture  contests,  and  the  “Checking  In”  function  via  Facebook  will  increase  the  network  effects  of  the  company.  Because  viral  advertising  allows  for  an  increase  in  network,  the  scale  of  JuicyTart’s  data  online  will  expand  as  well.  In  turn,  JuicyTart’s  brand  will  improve  as  a  popular  place  for  students  to  gather  at  any  time  of  day.  These  powerful  resources  in  conjunction  with  JuicyTart’s  product  differentiation  in  regards  to  pricing  and  low  switching  costs  from  other  competitors  will  undoubtedly  create  a  competitive  advantage  for  this  local  company.  When  creating  each  solution,  we  have  taken  into  account  JuicyTart’s  scarce  resources  for  managing  the  Facebook  page.  Thus,  the  proposals  demand  a  practical  amount  of  attention  from  the  company,  which  we  recommend  be  a  shared  responsibility  amongst  employees.  We  strongly  believe  the  profits  derived  from  these  solutions  will  far  outweigh  the  initial  costs  of  management  in  both  revenue  and  value  of  customer  experience.  References  http://juicytartyogurt.com/  http://www.facebook.com/juicytart  http://www.facebook.com/RedMangoAustin  http://www.facebook.com/pages/Swirll-­‐Frozen-­‐Yogurt/283480484705