Created a marketing segmentation plan for Sweet Alchemy Ice Creamery in Seattle, Washington.

1. Jazmin Diebler, Frank Chen, Yiru Luo,
Jasmeet Parmar, Jared Broer, Bryan Cho

2. Questions & Recommendations
Target market? How to position?
Internal
improvements?
Marketing
strategy?
Brand Positioning Flavor Management

3. Agenda
Overview
Recommendations
Key Takeaways
Q/A

4. Objective & Deliverables
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

5. Internal Analysis
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A
Current Target
Market
Location
Seasonality
Mission
Customer
communication

6. Financial Analysis
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

7. Competitor Analysis
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

8. Recommendation 1: Brand Positioning
Opportunity: Shift from demographic to psychographic
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A
College aged millennials are key to the industry
Non-family households outnumber family households by 30%
College-aged millennials account for 52% of national organic
consumption

9. Implementation
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

10. Key Performance Indicator
Foot Traffic/Brand
Awareness increase
Sales (daily) Sales monthly - (With new
brand awareness)
Current foot traffic: 120
(per day)
Current transactions: 100
$5 per cup x traffic: $500
daily
$15,000 monthly
10% increase $5 per cup x traffic: $550
daily
$16,500 monthly
15% increase $5 per cup x traffic: $575
daily
$17,250 monthly
20% increase $5 per cup x traffic: $600
daily
$18,000 monthly
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A
With increased brand awareness and foot traffic:

11. Recommendation 2: Flavor Management
Financials
Cost of ingredients:
24.7%
More flexible to
change compared to
other expenses
Customer
satisfaction
Customers can’t
find what they
want
Competitor
Consistent Flavor
Strong online
presence
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

12. Implementation
Consistent Flavor Seasonal Flavor Rotating Flavor
Most popular & consistent Most popular seasonal Special design for
events
Creative & not pricy
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

13. Implementation
1st
2nd
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

14. Implementation
Update flavor options
Track sales of flavors quantitatively
More profitable flavor combination
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

15. Key Performance Indicator
$118K
$63K
Wow, the cost of
ingredients goes down
46.6% !
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

16. Implementation Schedule
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

17. Key Takeaways
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

18. Questions?
OVERVIEW | RECOMMENDATION | KEY TAKEAWAYS | Q/A

19. Appendix
Yearly Profits
Increase
Profit and Loss
2017
Market Research
& Sources
Cost Decrease
Financial
Analysis
Competitor
Analysis

20. Cost Decrease
Total ingredient cost: $117,920.94
Assumed numbers of rotating flavors: 30
Cost of each flavor: $3930.69
Cost after flavor cut: 16 x $3930.69 = $62,891.17
Decrease in ingredient cost in percentage:
14 x 100% /30 = 46.7%
Decrease in ingredient cost: $55,029.66
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21. Yearly profits increase
Brand positioning (15% increase):
($17,250 - $15,000) monthly * 12 = $ 27, 000 yearly
Cost savings from flavor management:
Decrease in ingredient cost: $55,029.66 yearly
Total yearly profits increase: $ 27, 000 + $55,029.66 = $ 82, 029.66
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22. Profit and Loss (2017)
Total (USD)
Total Income $478,111.77
● Catering Sales $10,564.12
● Food Sales $460,472.13
● Wholesale Sales $7,075.52
Total Cost $392,606.56
● Total Costs of Goods Sold $117,920.94
● Total Payroll Expenses $146,223.43
● Other Expenses $128,462.19
Net Income $85,505.21
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23. Market Research & Sources
● The demographic studies in the University area show non-family households outnumbering family households by almost thirty percent, the median age of resident falling at just over 21
(Point2Homes, 2105).
● college students are a “key” demographic for the ice cream industry, specifically for a shop like Sweet Alchemy that makes everything in-house and sources all ingredients locally (Mintel,
2017).
● young millennials/college students currently account for just over 52% of all organic consumers (Patel, 2017).
● young millennials/college students as a whole are shown to be more receptive and positive about trying new businesses wanting to be seen as “trendsetters” (Mintel, 2017).
● young millennial generation is the first to spend more time on social media than on other more traditional forms of media like radio or television (Cai, 2017).
● primary social media platform used by the demographic is rapidly shifting from Facebook to Instagram, with just over 60% of current Instagram users being in the millennial segment (Paine,
2016).
● the average attention span of the user, which lands at roughly 8 seconds/post (Chen, 2017).
● Some of the best ways to increase customer engagement and maintain captivating content on this platform is by: 1, Leveraging influencers, 2. Taking advantage of sponsored ads, 3. Actively
using Instagram “stories” (Cai, 2017).
● types of vision-oriented messages play well to college students and have a higher probability of making it through the “noise” of other media advertisements (Chen, 2017).
Mintel: (2017, April). Ice Cream: The Consumer - US. Retrieved from
http://academic.mintel.com.offcampus.lib.washington.edu/display/828873/
Mintel: (2017, June). Marketing to Millennials - US. Retrieved from
http://academic.mintel.com.offcampus.lib.washington.edu/display/837219/
Barrett, Sarah. “Ice Cream Parlors.” Ice Cream Parlors -, SBDCNet, 2017, www.sbdcnet.org/small-business-research-reports/ice-cream-parlors
Cai, Gina. “3 Ways Brands Can Target Millennials on Instagram.” Social Media Explorer, 11 Aug. 2017, socialmediaexplorer.com/content-sections/tools-and-tips/how-brands-target-millennials-instagram/
Chen, Lu. “How To Create Customer Loyalty With Millennials.” Forbes, Forbes Magazine, 20 Sept. 2017, www.forbes.com/sites/forbescommunicationscouncil/2017/06/26/how-to-create-customer-loyalty-with-millennials/#45345c32b0d1.
“Instagram 'Hugely' Effective for Ben & Jerry's: Interview with Kate Paine.” EMarketer, 25 Oct. 2016, totalaccess.emarketer.com/interview.aspx?r=6002184&ipauth=y.
“Point2 Homes.” Demographics & Statistics - Employment, Education, Income Averages in University District - Point2 Homes, Onboard Informatics , 2015, www.point2homes.com/US/Neighborhood/WA/King-County/Seattle/University-District-Demographics.html.
Patel, Deep. “Food Leaders Take Notice: How Millennials Are Changing The Way We Eat.” Forbes, Forbes Magazine, 28 Aug. 2017, www.forbes.com/sites/deeppatel/2017/08/26/food-leaders-take-notice-how-millennials-are-changing-the-way-we-eat/#4d2a40e37175.
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“Primary Social Media Platforms Used by Millennials.” EMarketer, 17 Aug. 2016, totalaccess.emarketer.com/chart.aspx?r=203159.
Rashid, Brian. “5 Essential Reasons You Should Be Using A Responsive Website Design Now.” Forbes, Forbes Magazine, 14 June 2017, www.forbes.com/sites/brianrashid/2017/06/13/5-essential-reasons-and-benefits-why-you-should-be-using-a-responsive-website-
design-now/#5e1c4ac17c91.
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24. Financial Analysis
Total Income: $478,111.77
Ingredients cost: $117,920.94 117,920.94 x 100% / 478,111.77 = 24.7%
Labor cost: $179,388.56 179,388.56 x 100% / 478,111.77 = 37.5%
Net Income: $85,505.21 85,505.21 x 100% / 478,111.77 = 17.9%
Other expenses: $95,297.06 95,297.06 x 100% / 478,111.77 = 19.9%
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25. Competitor Analysis
Name Sweet Alchemy Salt & Straw Molly Moon’s
Strength ● Organic ingredients
● Unique flavors
● Tasty
● Store ambience
● Established brand
● Loyalty program: pints
club
● Tasty
● Unique flavors
● Established brand
● Organic, locally
sourced
● Unique flavors
● Great online
presence
Weakness ● Brand awareness
● Online presence
● Capacity
● Long line ● Long line
● Snoqualmie base
● Taste
Key
takeaways
● Increase brand
awareness
● Loyalty program ● More consistent
flavors
● Online presenceback