• Save
Global Strategic Marketing Presentation
Upcoming SlideShare
Loading in...5

Like this? Share it with your network


Global Strategic Marketing Presentation

Uploaded on


  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 31

http://www.slideshare.net 30
http://www.lmodules.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide
  • Privately held franchise restaurant of frozen yogurt Also serves smoothie and fruit parfait Founded in 2005 at West Hollywood, CA by two Korean-Americans Shelly Hwang and Young Lee Backed by venture capital firm founded by Starbuck’s Howard Schultz Company headquarter in Los Angeles, CACompany slogan: “Pinkberry is Swirly Goodness” When it opened its first restaurant, people were lining up for up to half an hour, and it was reported that 1,000 parking tickets where issued.Source: www.wikipedia.org, www.pinkberry.com
  • Creating emotional connection with its customers, exemplified by creating a “groupie” corner in the company’s websiteCustomer service: Employees are empowered and called team membersSource: www.wikipedia.org, www.pinkberry.com
  • Cross-market insights reveal that key linking factors are category specific, rather than brand specificPinkberry needs to leverage these factors abroad to even be on the playing fieldThailand: 33.7% of the population is in the highest 10% income bracketPPP – purchasing power parityhttp://www.cia.gov
  • Based on our ZMET research and survey, we have identified our target customers aged 16 to 34, slightly skewed to female population. Habit and Behaviorenjoy dining out and going to restaurants for sweet treats after meals: Thailand has a collective culture and teens and adults frequentlyare more inclined to choose products that are unique and differentPerception and PreferenceMain competitor Red Mango is perceived as trendy as the brand is frequently associated with celebrity ownersLocal brand buddhi belly is identified as creative and naturalLocal brand iBerry is the first mover in Thailand’s ice cream marketand uses local tropical fruits to develop several unique flavors Perceive “foreign brands” of higher quality and are willing to pay more Natural origin and ingredient of frozen yogurt are most preferredVariety of topping choices (other than tropical fruits that are common in Thailand) are perceived as value add to the brand Convenience of store locations is crucial Sources:Primary Research (in-depth interview, ZMET Interview and survey)
  • Yogurt market is around $2.6b in and grows at 26.9 % growth rate in UK (TNS Worldpanel S2w/e 14June 2009)Frozen Yogurt was first introduced in 2007 in UKand the frozen yogurt stores are only located in London according the search results on Yelp UK.SNOG is a frozen yogurt company that was founded in May in 2008 by a group of savvy shareholders who — riding on the back of the popularity of the juice bar/smoothie wave — saw a gap in the market for a frozen, healthy treat. It has opened three stores in London — South Kensington, Soho and Westfield and is opening a flagship Covent Garden outlet.Sources: Datamonitor “Dairy in the UK 2009” ; “Ice Cream in the UK 2009”1. Snog :3 shopshttp://www.ifancyasnog.com/2. yuforia (have franchising)http://www.yu-foria.com/3. coolicioushttp://www.tastetrends.co.uk/4. Othershttp://www.frae.co.ukIndependent yogurt restaurants:
  • Mintel, British Lifestyle April 2009The rise of “aspirational” foods – food which meet a consumer’s aspiration for something better or purer, including better quality, healthier foods, organic foods, locally-produced foods, etc, is a key trend in the UK market.“Aspirational” foods, unlike commodity foods, create distinct brand and market positions for the products and tend to be premium priced. UK consumers are becoming more price sensitive and cutting on their spending due to economic recession. Young consumers are becoming more receptive to food home delivery due to convenience. Theyuforia, a frozen yogurt store, do offer delivery to local office. In addition, the Scoop, which offers Gelato ,also offers a home delivery service.Source: Mintel, British Lifestyle April 2009
  • This consumer insights is gained by ZMET from consumers in UK who had ever tried frozen yogurt , ice cream, and Gelato. According to those responses, the frozen yogurt is not only a pleasant icy snack but also a way to away from stress. Some respondents relate frozen yogurt with celebrity and fancy stuff. In addition, the frozen is related with No artificial sweeten and nature ingredients and serves as healthier and natural even organic aspirational products. The Low Calorific content attract consumers attention when searching for healthier alternative of ice-cream. In addition, The trendy design and the modern music makes the frozen yogurt store a good place to hang out with friends.
  • We target London as our pilot market in the UK under the fact that current frozen yogurt stores only have presence in London. In addition, people in London are generally with higher income. (Mintel, Ice Cream – UK, September 2009) Sources: http://spreadsheets.google.com/ccc?key=t3bns85prAbiChLmFhlcB1Q IS YOGURT THE NEW ICE-CREAM? By: Birkett, Rosie, Caterer & Hotelkeeper, 8/28/2009, Vol. 199, Issue 4592We primarily target female from age 16 to 34 and the target demographics is around 1.8 million people. As to the lifestyle segment, we target female with healthier eating habits who concern about the calories, nature ingredients and are willing to try new things.We also plan to expand to college sites such as Cambridge and oxford at the next stage.(Mintel, Obesity – UK, March 2009)
  • Given the opportunity and consumer insights we’ve talked about, we felt that it was important to develop a communications strategy that revolved around two main audiences: consumers, and partners. Each of these audiences value different things and receive different benefits from either purchasing from or becoming a partner of Pinkberry.For consumers, the communication plan revolves around Pinkberry’s brand image, advertising and promotions strategies, and web strategy. For partners, the plan revolves around communicating the benefits of associating with Pinkberry to partners and potential franchisees through CRM development, franchisee and partner information sessions.
  • One of the first things we considered with respect developing Pinkberry’s communication strategy was its brand image. This is probably the most important aspect of Pinkberry’s communication strategy, especially because the company’s product is more than just frozen yogurt – they are selling the Pinkberry experience – and as a result, the main source of advertising currently comes from word of mouth.One of the most important aspects of the Pinkberry “experience” is the store atmosphere, which includes both the aesthetics of the store and interactions with Pinkberry staff. Although each Pinkberry store is slightly different, the color, layout, and music played in the store need to be consistent and guidelines for these criteria should be set by headquarters.A big part of the Pinkberry image also comes from the perceived quality of the physical product. Pinkberry’s toppings are cut daily, in each store, which serves as a signal of quality and freshness to the consumer. Additionally, Pinkberry signals health and quality through credentials. Pinkberry is certified by the National Yogurt Association.
  • Franchisees are responsible for implementing marketing strategies – corporate relinquishes some of the control they have over the brand image when they do this – however, both entities have the incentives to make the store a success.Overall the communications tactics are experiential – for example, free sampling, presence at promotional events, and using celebrity influence.
  • http://jonathan-russell.com/2010/01/05/thailand-becomes-facebooks-second-fastest-growing-market/http://jonathan-russell.com/2010/01/20/12-million-mobile-internet-users-in-thailand-says-ais/Pinkberry should developed localized versions of its website – which provides information like locations, menus, and store hours, as well as hosts its proprietary Pinkberry groupies network. Additionally, the company should develop its presence on facebook, where it can both provide information to consumers (i.e. coupons, notifications of local events, etc.) as well as receive feedback on flavors and demand.UKPopulation: 61,113,205 (July 2009)Urban Population: 90% of total population (2008)Internet Hosts: 9.322 million (2009)Internet Users: 48.755 million (2008)Literacy (age 15 and over has completed five or more years of schooling): 99%male: 99%female: 99% (2003 est.) ThailandPopulation: 65,998,436 (July 2009)Urban Population: 33% of total population (2008)Buddhist 94.6%Internet Hosts: 1.231 million (2009) 37thInternet Users: 16.1 million (2008)Literacy (age 15 and over can read and write): 92.6%male: 94.9%female: 90.5% (2000 census) Urban population: percentage of the total population living in urban areas, as defined by the country Source: https://www.cia.gov/library/publications/the-world-factbook  1.00 USD = 32.3669 THBUnited States Dollars   Thailand Baht1 USD = 32.3669 THB   1 THB = 0.0308958 USDSource: http://www.xe.com
  • http://www.bha.org.uk/The British Hospitality Association (BHA) was established in 1907 as the Incorporated Hotel Keepers Association. In 1910 it merged with a new and entirely separate organization called Incorporated Association of Hotels and Restaurants, taking on the latter's name. Philip will speak more about our partner strategies with respect to suppliers and distribution.
  • Franchise process:- Consultation -> LOI contracting -> Shop location -> Franchise contracting -> Construction -> Shop opening (30 days period after franchise contracting)- Basic contract period in US: 10 years (with 10 year renewal)References: Pinkberry website http://www.pinkberry.com/frozen-yogurt-franchise.html
  • Supporting scopes:Estimated Costs detail for franchisee (From Red Mango Thailand) Pinkberry doesn’t post the details about costs and supportsFranchise fee: $14,000 - $24,000/shop (3 year contract) ThailandLoyalty fee: 5% (monthly net sales)Deposit material: $7500 – $15,000Yogurt machine: $30,000/machineInterior/funiture: $450/sqm (70 sqm - $30,000)POS software/hardware: $4,500Initial material: $4,500Total initial payment to franchiser: $90,000 - $110,000 (except land, construction, etc)http://www.redmangothailand.com/franchise.asp?lang=enhttp://blog.daum.net/ilovebangkok/6823960
  • Outsourcing and dividing worksIn the short term,ConsideringPinkBerry’s capability in terms of human resources, outsourcing distributors which would deal with logistics is more efficient than doing everything. So we divide the required roles with HQ’s supports (two men in local office) and local distributors’ supports.HQ would be taking charge of location analysis, consulting, training franchise owners and managers, design consulting for shops and supporting equipments (Yogurt machine with deposits)Local distributors are responsible for daily logistics from suppliers to each shop, which include fruits and cereals for toppings, packages, yogurt raw materials, napkins and commodities. In the long term, when Pinkberry secures enough number of stores in local markets, they might move to cover logistics by themselves for more profits.
  • http://www.pinkberry.com/franchise-faq.html Sales projection: $1500/day was estimated by Red Mango Thailand in 2009$2500/day was estimated based on the UK yogurt market (5% for fro-yo) with 5% market penetrationFranchise license fee: US $45,000 but Red Mango in Thailand and Korea $10,000 – $24,000 because of the gap in GDP between countriesPinkberry Franchise Information & CostsThe owners of Pinkberry ask that prospective owners pay an up-front franchise fee of $45,000, and also that one’s cash-on-hand is equal to or exceeds $500,000.  Some establishments occupy space in a strip-mall or storefront location, especially since the products seem to sell best in urban locations where people have a lot of disposable income.  There are some stand-alone units in the system, though.  All construction, remodeling and build-out costs are the responsibility of the franchisee, a sum that could easily eat up half or more of your nest egg, depending upon location.  The quarterly royalty fee - with the calculation based on the store’s gross sales receipts - is split into two factors.  Six percent goes directly to the corporation’s operating fund, while an additional two percent is deposited into a marketing fund.  Ownership comes with additional responsibilities, including the pledge to spend at least $2,000 for a Grand Opening launch plus an additional $2,000 each of the first three months in business for the “marketing launch.”  The price one pays to open a store also includes extensive training - two weeks for the owner/operator and three weeks for the general manager and assistant.Referenceshttp://franchises.businessmart.com/how-much-does-a-pinkberry-franchise-cost.phphttp://blog.globalbx.com/2009/06/12/how-much-does-a-pinkberry-franchise-cost/ http://blog.naver.com/ybk73?Redirect=Log&logNo=120046524923http://blog.daum.net/ilovebangkok/6823960
  • PerformanceMetrics
  • Additional Information1. SNOG Product Offering: Snog offers two types of frozen yoghurt ?plain and green tea, both sweetened with natural (and low-GI) agave nectar. The former was lovely and thick, the latter tasted a bit sour. The pots are generously sized and come with a choice of 15 toppings including cookie and brownie. They'll whip up blended yoghurt smoothies too.
  • Pinkberry sales derived from Red Mango Sales in ThailandQuarterly Numbers: 26 QuartersInterest Rate: 15%Sales Growth Rate: 30% pre QuarterMonte Carlo Simulation: 10,000 Simulations
  • Pinkberry Market Share: UK Yogurt Sales x 5% (Frozen Yogurt) x 5% (Pinkberry MS)Quarterly Numbers: 26 QuartersInterest Rate: 15%Sales Growth Rate: 10%Monte Carlo Simulation: 10,000 simulations


  • 1. Global Expansion Strategy
    April 29, 2010
    Napo Delinia
    Hsin-Ying Hu
    Philip Jang
    Ann Lu
    Kristen Parnell
    Swirly Goodness!
  • 2. Agenda
    Company Overview
    Current Strategy and Positioning
    Global Expansion Opportunities
    United Kingdom
    Communication Strategy
    Distribution Strategy
    Localized Strategy Differences
    Projected Performance and Metrics for Success
  • 3. “The taste that launched 1,000 parking tickets.”
    Privately-held frozen yogurt restaurant
    Founded in 2005 in West Hollywood, CA
    Founder: Shelly Hwang and Young Lee
    Funded by venture capital firm, Maveron
    Business Type: Franchise
    Company Headquarters: Los Angeles, CA
    Company Size: 30 employees
    Number of Restaurants: 73
    Current International Presence
    Bahrain, Dubai, Kuwait
    Tagline: “Pinkberry is Swirly Goodness.”
    Company Profile
  • 4. Current Strategy: U.S.
    Creating emotional connection with customers
    Investing in a highly differentiated product by offering:
    Proprietary, premium products
    Creative-designed, tailored environments
    Superior customer service
    Forming an enduring brand
    Partnering with mall/restaurant operators and developers
    e.g. M.H. Alshaya Co., Autogrill
  • 5. Consumer Insights: U.S.
    Orientation towards younger customers
    Perception of the category overall as youthful and trendy
    The Pinkberry “experience” drives the brand
    Seen as a healthier dessert option
    Importance of fruit toppings
    In comparison to other frozen dessert categories (e.g. ice cream)
    Celebrity and cult following
    Pinkberry “groupies”
    Lady Gaga
  • 6. Consumer Insights: U.S.
    New York Trek Video
  • 7. Positioning Statement
    For trendsetters who embrace fun, sophistication and creativity, Pinkberry is a one-of-a-kind experience that satisfies like no other because of its healthy, fresh treats, distinctive selection, and hip atmosphere.
  • 8. Global Expansion Opportunities
    United Kingdom
    61,113,205 (July 2009)
    Urban Population
    90% of total population (2008)
    GDP per capita
    Developing market
    No global frozen yogurt competitors
    65,998,436 (July 2009)
    Urban Population
    33% of total population (2008)
    GDP per capita
    Growing market
  • 9. Opportunity Analysis: Thailand
    The Thailand Yogurt Market is estimated to grow up to $1.8 million for frozen yogurt retail business.
    Total yogurt market size: $224.5M (2010)
    10.6% growth from $183.5 m (2008)
    Set yogurt segment is 8.1%, $18.8M
    Frozen Yogurt is just emerging in the industry
    Accounts for 10% of set yogurt business ($1.8M)
    Red Mango
    Buddhi Belly
    Ice Monster
    Independent Yogurt Restaurants
  • 10. Consumer Insights: Thailand
    Based on ZMET research, consumers associated their experiences with frozen yogurt to the following images and adjectives:
    MODERN and CHIC stores – great for girls to spend time with friends.
    The taste of frozen yogurt is
    A type of sweet treat that is
    HEALTHY and good for you.
    from the hot weather.
    COOLING and a quick GETAWAY
    from the heat.
    Variety of COLORS and
    options of FRUIT toppings.
  • 11. Target Customers: Skewed Female (Age 16-34)
    Habit and Behavior
    Enjoy dining out with friends
    Look for unique and different products
    Perception and Preference
    Perceive “foreign brands” as higher quality
    Prefer natural ingredients and origin of frozen yogurt
    Prefer variety of topping choices – value add
    Consider convenience and store locations important
    Target Customer: Thailand
  • 12. Opportunity Analysis: U.K.
    Population and General Demographics
    UK Population: 61,113,205
    Yogurt Market $2.6B in UK
    Current Market Size and Growth
    Introduced in 2007
    Frozen yogurt retail market size $260 M
    Only located in London (search on Yelp UK)
    Independent yogurt restaurants
  • 13. Consumer Insights: U.K.
    The rise of “aspirational” foods –including better quality, healthier foods, organic foods, locally-produced foods, etc.
    “Aspirational” foods create distinct brand and tend to be premium priced.
    UK consumers are becoming more price sensitive - except for aspirational foods.
    Young consumers are becoming more receptive to food home delivery due to convenience.
  • 14. Consumer Insights: U.K.
    Relief from stress
    Place to hang out
    Celebrity & Fashion
    Less Fat
    Alternative to ice-cream
    Healthy Treat
  • 15. Target Customer: U.K.
    Target Demographics: Ages 16-34
    Target Population : 15,120,500
    25% of total population
    Test Market: London
    Target Demographics: 1,873,941 (3% of UK Total)
    London‘s Population: 7,556,900 (12% of UK Total)
    Segment: health-conscious consumers.
    Consumers are trending toward eating healthy foods due to health concerns.
    UK consumers are eating less ice cream because of health issues.
    Life Style: Eating out with friends, try new things, spend £ on fashion
  • 16. Communication Strategy
    Strategy is based on developing relationships with:
    Brand image
    Advertising and promotions
    Web Strategy
    Partners and Potential Franchisees
    CRM management and information gathering
    Franchisee information sessions
  • 17. Communication Strategy
    Continue current Pinkberry brand strategy
    Store design
    Keep color, layout, and music consistent
    Customer Service
    Friendly, enthusiastic team members to maintain customer experience
    “All of our fresh fruit toppings are cut daily in each and every store to guarantee both quality and freshness. Our fruit is never canned, frozen or sitting in water.”
    Pursue credentials to certify product health and quality
    Current US: National Yogurt Association Live and Active Cultures
    Thailand: Ministry of Public Health
    UK: Food Standards Agency
  • 18. Communication Strategy
    Franchisees are responsible for the implementation of grassroots marketing strategies
    Corporate provides guidance as to the types of tactics necessary
    Solicit feedback as to which strategies work
    Example Promotions Tactics
    Promotional Events: college events, food fairs
    Utilize local and global market celebrities
    Thailand: Tata Young
    UK: Robert Pattinson
    Traditional Advertising
    Not currently implemented in the US: based on WOM
    Howard Schultz (Board of Directors) influence
    Base communication on experience
  • 19. Communication Strategy
    Web Strategy
    Develop localized corporate Pinkberry websites
    Social Media
    Pinkberry Groupies (proprietary) and Pinkberry blog
    Facebook, Twitter
    Thailand: Facebook’s second highest global growth market (1,632,880 registered accounts as of January 2010)
    UK: Facebook 23,860,000 registered accounts
  • 20. Communication Strategy
    Develop Partner Relationships
    Seek out Local Retail Associations/Organizations to share CRM information gathering
    Information Sessions
    Host joint events with Local Retail Associations / Organizations
  • 21. Distribution Strategy: General Rules
    Supply Chain Development
    Local Suppliers
    Partners for interior (HQ supports architect)
    Opening locations and selecting criteria
    Headquarter supports/ Building local office for communication
    Initializing suppliers: Yogurt, toppings, packages, napkins, uniforms
  • 22. Distribution: Criteria and Risks
    Franchising fee structures and supporting scopes
    Risk Assessment
    Cultural differences: not first mover (Red Mango in TH) ↘
    No brand equity: Opening ceremonies, seminar for potential investors
    No experience: Testing market with a few stores (5 TH/ 7 UK)
    Time line: Control the speed of expansion
    Learning curve: Stabilize first stores then replicate
    Fee Structure
    Store Location
    Except U.K.
    Yogurt Machine
    Franchise Training
    Initial $45K?
    Royalty 6%
    Marketing 4%
  • 23. Supply Chain and Logistics
    HQ Supports:
    Training, Equipment, Design
    Distributor Supports: Materials, Packages, Shop Accessories
    Pinkberry &
    Local distributor
  • 24. Initial Investment
    Up-front fee: $15K -> positioning on premium imported brand
    Opening five stores (Bangkok)
    Supporting yogurt equipments with deposit, local suppliers
    Initial Investment & profit: Based Competitor’s performance
    Daily $1,500 x 5 stores = $2.7 M/y
    Pinkberry (6%) $162K/year
    Marketing (4%) 108K/ year
    Max investment $405 K for 18m
    No Up-front fee except equipment deposits: No premium for imported
    Open seven stores (London)
    Same strategy for the equipments and designing stores
    Initial Investment & profit: based 5% share in frozen yogurt
    Daily Sales $2,500 x 7 stores = $6.5 M/y
    Pinkberry (6%) $390K/year
    Marketing (4%) 260K/ year
    Max investment $975 K for 18m
    Total Investment: $1.4M for 15 months payback for building Biz
  • 25. Country Comparison
    Image: “American” trendy
    Price: premium pricing
    Product: size offerings (smaller sizes for Thailand)
    Promotion: Localized events, localized celebrities
    Distribution: partnerships
    Location: near shopping centers/shopping occasions
    Image: “healthy”
    Price: premium pricing
    Product: texture (creamier texture for UK)
    Promotion: Localized events (example, rowing on college campuses)
    Distribution: partnerships
    Location: near college campuses, SoHo/Covent Garden
  • 26. NPV Simulation: Thailand
  • 27. NPV Simulation: UK
  • 28. Dashboard
    Food and Service
    QC specifications
    Customer satisfaction
    # customers
    Financial Performance
    Payback in 15 mo.
    10% Revenue from overseas
    Local Events
    Charity 0.2%
  • 29. Questions?
    Thank You!
  • 30. Appendix
  • 31. Appendix AUS Competitive
  • 32. Appendix AUS Competitive
  • 33. Appendix AUS Competitive
  • 34. Appendix BThailand Competitive
  • 35. Appendix BThailand Competitive
  • 36. Appendix CUK Competitive
  • 37. Appendix CUK Competitive
  • 38. Appendix CUK Competitive
  • 39. Appendix DNPV Table: Thailand
  • 40. Appendix DNPV Table: UK
  • 41. Appendix ENutrition Facts