The document provides an analysis of Yogen Früz, a Canadian frozen yogurt and smoothie store. It includes an external analysis using PESTEL and Porter's Five Forces, an internal analysis using value chain and marketing mix, an analysis of Yogen Früz's vision and mission statements, and a SWOT analysis and strategy matrix. The key points are that Yogen Früz is in the maturity stage of the industry life cycle and offers a unique customizable concept that aligns with health and customization trends, but faces threats from regulations, wages, weather, and competitors.

1. BUSM 4850
Individual Assignment
Instructor: Dr. Ivan Surjanovic
Spring 2017
Student Name: Ying DONG
Student ID: 100275899
Date: 6 Feb 2017

2. Table of Contents
Introduction ........................................................................................................................... 3
Section 1: External and Internal Analysis ................................................................................ 3
1.1 External Analysis: ................................................................................................................. 3
1.1.1 PESTEL Analysis ...................................................................................................................... 3
1.2 Industry Life Cycle .................................................................................................................. 7
1.3 Porter’s Five Forces Analysis ................................................................................................. 8
1.2 Internal Analysis: ................................................................................................................. 8
1.2.1 Value chain ............................................................................................................................. 8
1.2.2 Marketing Mix ...................................................................................................................... 11
Section 2: Vision and Mission Statement Analysis ................................................................. 13
2.1 Vison statement ....................................................................................................................... 13
2.2 Mission statement .................................................................................................................... 13
Section 3: SWOT Analysis and SWOT strategy matrix ............................................................. 14
3.1 SWOT Analysis .......................................................................................................................... 14
Strengths ........................................................................................................................................... 14
Weaknesses ....................................................................................................................................... 15
Opportunities .................................................................................................................................... 15
Threats .............................................................................................................................................. 15
3.2 SWOT strategy matrix ............................................................................................................... 16

3. Introduction
Yogen Früz is a Canadian store that produce frozen yogurt and smoothie. Their product
combines the frozen yogurt and fresh fruit together and allows customer to create their own
flavor. The first store opened in August, Promenade Mall, Thornhill (Toronto), Ontario, Canada
in 19861
. After that, the brand developed very fast and opened 50 locations in its first two years.
The target customers for Yogen Früz are young people that ages 25-35. In this paper, there will
be three section: external and internal analysis, vison and mission statement, SWOT analysis and
SWOT strategy matrix. To specific the analysis, this paper will be focus on Yogen Früz in
Canada.
Section 1: External and Internal Analysis
1.1 External Analysis:
1.1.1 PESTEL Analysis
1.1.1.1 Political (threat and opportunity)
Public health policy discourages people to purchase unhealthy fast foods, especially for
school kids. It is an opportunity for the Frozen yogurt industry because frozen yogurt is a healthy
dessert food and recommend by nutritionist.
1.1.1.2 Economic (opportunity)
Positive global economic changing influences the frozen yogurt industry environment. The
industry is encouraged to expand its global plan. For this paper, the focus is about Yogen Früz in
Canada area, therefore, positive economic in Canada will help the company to grow in a stable
way.
1 1
YogenFrüz, “History”, accessed February 4, http://www.yogenFrüz.com/about-us/history/

4. 1.1.1.3 Social
Health Trend. (opportunity)
People start to care more about health lifestyle and desire for fresh, healthy food. Therefore,
foods with high sugar become less popular recently. Because frozen yogurt is one of the healthy
options in the market, it becomes popular these days. Furthermore, the frozen yogurt is not only
having different favors options but also adding health ingredients in the products, such as fresh
fruits, dairy-free sorbets and probiotics. Therefore, people start to make healthier choices by
choosing frozen yogurt over ice cream. The products of Yogen Früz becomes a better dessert
option in this health trend and Yogen Früz can take this as an advantage in the market.
Customized. (opportunity)
The major customers for frozen yogurt industry is millennial. Customers from this
generation like to have more options and enjoy customized products. Millennial’s buying choices
are “original, specialized, and personal,”2
, for example, when they are making a purchase,
millennial prefer to have a choice in picking their needs rather than a full package offered by the
company. The frozen yogurt industry introduced the concept of “customized just for me”3
to the
forefront, which meets the customized preferred trend perfectly. Furthermore, this self serve
frozen yogurt style is not only about customize but also make people feel fun and pleasure when
they creating their food.
Fast life style (opportunity)
2
The BBRIEF, “Customization: The Key Word in Millennial Buying Habits”, accessed February
1, 2017, http://thegbrief.com/articles/customization-the-key-word-in-millennial-buying-habits-
621
3
Jillian Hillard, “The State of the Frozen Yogurt Industry”, accessed February 3, 2017,
https://pregelamerica.com/pmag/articles/the-state-of-the-frozen-yogurt-industry/

5. In today’s fast life style society, snack or dessert becomes a replacement for traditional
meals. Traditional lunch and dinner hours have changed because of customers’ busy life. All
these consumers want are the quickest, tastiest and healthy snack or dessert, which frozen yogurt
comes to take an important role in their life, especially in a warmer weather.
Local business protection (opportunity)
As global and international business becomes common in our surroundings these days,
people start to care about their local businesses, and tend to support these local business in
certain ways. For example, the customers tend to go to an independent grocery store rather than a
chain market if the products are in the same quality. For frozen yogurt industry, to protect local
business can be simple, such as using local products as frozen yogurt’s original material.
1.1.1.4 Technology
Increasing business effectiveness and efficiency (opportunity)
Technology can improve the quality and variety of the frozen yogurt and smoothie, in order
to meet the desire from customers. For example, it could make the producing process more
effective and productive or increase the flavour choices of frozen yogurt in a fresh and healthy
way. Also, Yogen Früz can implement automation to maximize its productivity.
Increasing sales via technology (opportunity)
Technology can allow the industry to increase the public awareness via social marketing,
which could help the business to grow. For example, Yogen Früz can post pictures of frozen
yogurt on its company website or its own Facebook, in order to attract more customer to try their
products. Furthermore, Yogen Früz can improve its mobile services application in order to attract
customers through its mobile app or webpage.

6. 1.1.1.5 Environment
Eco-friendly (opportunity)
Whether the business is an eco-friendly business becomes more and more important to
today’s customer. It shows the responsibility of a business. Therefore, having a sustainable
business strategy becomes significant for all kind of business. Environmentally friendly practices
for a frozen yogurt business can start with using compostable packaging and eco-friendly
utensils such as cornstarch spoons. Further more, the industry can also implement environmental
friendly cleaning solutions and trash liners to support environment friendly program.
Temperature (threat)
The sale of frozen yogurt is related to the temperature of the day. For example, the graph
below shows sales by day for Boston (green line) with the maximum temperature for that day
(blue line) between June 1 and August 31, 20124
. From the chart, it can be clearly seen that when
the temperature raised, the sale of the frozen yogurt increased. Therefore, doing a frozen yogurt
business should aware of the weather pattern in the business location.
4
“Infographic: How Temperature Impacts Frozen Yogurt Sales”, accessed February 1, 2017,
http://www.vivonet.com/blog/bid/159345/infographic-how-temperature-impacts-frozen-yogurt-
sales

7. 1.1.1.6 Legal
New legal minimum wage levels in BC Canada. (threat)
The minimum wage level will be increased to $11.25 after 15-09-2017. The higher
minimum wages will lead to higher costs and prices for the product.
Local health regulations (threat)
Local health regulations are going to influence the food service in schools and workplaces,
and this might reduce the business’s revenue from these areas.
1.2 Industry Life Cycle
Graph: industry life cycle5
Yogen Früz is in the Maturity stage of the industry life cycle. Their products are becoming
more and more popular among people of all ages.
5
Graham Fane, “Strategic Management”, McGraw-Hill Companies, Inc.

8. 1.3 Porter’s Five Forces Analysis
1.2 Internal Analysis:
1.2.1 Value chain
Graph: Value chain6
6
Graham Fane, “Strategic Management”, McGraw-Hill Companies, Inc.
Suppliers (Low)
The raw material for production are
similar in the frozen yogurt industry,
which will reduce the suppliers’
bargaining power.
New Entrants (High)
Fast growth rate for the frozen yogurt
industry
Substitutes (High)
Many substitutes products are
existing; such as ice cream.
Buyers (Low)
Large number of customers
Limited buyer information availability
Rivalry (High)
Menchie’s from
America, Qoola, etc.

9. According to this model, the value chain activity can be divided into two part: Primary
activities and support activities.
1.2.1.1 Primary Activities
Inbound Logistics
The inbound logistics for Yogen Früz is about to select the good quality of raw materials for
the product. In the case of Yogen Früz, the major quality criteria for the company is fresh and
health. Even though when making the frozen yogurt, the nutritional information is based on the
company’s standardized recipes and is calculated by using standard from suppliers and
databases7
, the products still can have slightly difference. Because the frozen yogurt is freshly
prepared at each stores, all the raw material purchases, especially fruits, from each store might be
different.
Operations
Yogen Früz operates in more than 40 countries and has more than 1300 locations
internationally. Yogen Früz was selected as the #1 Global Franchise in 1999 by Entrepreneur
Magazine and ranked highly in the Top 100 Global Franchises continuously8
, which shows the
positive operations for the company.
Outbound Logistics
There are none intermediaries in the product selling for Yogen Früz. All the products are
sold in their own stores only. All the frozen yogurt products are different because it is
customized by consumers.
7
YogenFrüz, “Menu”, accessed February 4, http://www.yogenFrüz.com/menu/disclaimer/
8
YogenFrüz, “History”, accessed February 4, http://www.yogenFrüz.com/about-us/history/

10. Marketing and Sales
Yogen Früz’s franchise marketing fee is around 3% of gross sales monthly. Also, the
company explores its online marketing via Facebook, twitter, YouTube and Instagram, which
encouraged customers to share photos about the products online.
Service
Yogen Früz aims at providing healthy dessert choice to customers. At the same time, they
provide a high level of customer service at its stores, in order to create a moment that delight and
surprise its customers. Yogen Früz implements the customer self-service as a part of their daily
services by providing customers an opportunity to enjoy the light to create a customized frozen
yogurt.
1.2.1.2 Support Activities
Infrastructure
This section includes departments like management, marketing, finance, legal, techonology
development, etc., which keep the company operate positively. Yogen Früz has all these
departments in the corporate headquarters. Yogen Früz provides all kind of trainings to their
franchisees and their managers, and the major training is about marketing and management parts.
The innovation for the products is still initiative on the company’s hand.
Human Resource Management
Yogen Früz cares about teamwork experience of their employees. The company encourage
their employees by attracting, training and retaining outstanding team members in innovative
ways. Also, Yogen Früz employees are motivated through benefits and incentives.

11. Technology Development
Yogen Früz use their own producing system to service fresh product that is low in fat, high
in fiber, with vitamins, probiotics and/or antioxidants. Recently, the Yogen Früz achieved their
unique blending process where the system is capable to capture the natural sugars of the fresh
fruit9
.
Procurement
This section involves the process from the raw materials to the final products. The company
build a strategic relationship with suppliers for the long-term purpose. All the suppliers are
qualified regarding to the high quality standards. In this case, the standard is about fresh and
health fruits and milk for Yogen Früz, which is the base level for maintaining a finest product.
1.2.2 Marketing Mix
There are four elements of a marketing mix: product, price, promotion and place. The 4 Ps
of Yogen Früz marketing is as following graph:
9
YogenFrüz, “About us”, accessed February 4, http://www.yogenFrüz.com/about-us/what-is-it/

12. Product
- meet specific customer
needs and demands
-meet the health life style
trend
Price
-customize price depend on
how customers make their
products
-over all price is fair in the
industry standard
Promotion
-advertising
-special offers
Place
-three type of store format:
street level walk-in store, in-
line store, kiosk.
-majority stores are located
in or nearby the shopping
mall
-easy to access by customers

13. Section 2: Vision and Mission Statement Analysis
2.1 Vison statement
Yogen Früz: “We dream of a world where healthy choices are delicious.”10
A vison statement is about where do the business want to go in the future and it’s about the
purpose and values of the business. Yogen Früz values global brand integrity, uncompromising
quality, inspirational design, customer delight, community engagement, team member
experience, profitable growth and responsible growth11
. In Yogen Früz’s current vision
statement, it shows their value about customer delight and uncompromising quality. However,
there is no clue about where the business wants to be in the future.
What I recommend for Yogen Früz’s vision statement is adding their business future in the
statement. For example, their vision statement can be “We want to be the No.1 delicious healthy
dessert choice in the world.” This statement shows the business want to be the leader for the
industry in the future and also mentions their brand value in customer delight, uncompromising
quality and global brand integrity.
2.2 Mission statement
Yogen Früz: “Your well-being is our passion. We delight customers around the world with
guilt free frozen yogurt treats.”12
10
YogenFrüz, “Mission statement”, accessed February 4, http://www.yogenFrüz.com/about-
us/mission-statement/
11
YogenFrüz, “Mission statement”, accessed February 4, http://www.yogenFrüz.com/about-
us/mission-statement/
12
YogenFrüz, “Mission statement”, accessed February 4, http://www.yogenFrüz.com/about-
us/mission-statement/

14. A mission statement shows why do the business exist and how the business are helping
people’s life. Yogen Früz’s mission statement indicate their willing to delight customers and
spread their business all over the world in an honest way. However, this statement can expend
more by showing their wish to help people’s life by providing customers a healthier dessert
choice. For example, their mission statement could be “Your well-being is our passion. We
delight customers around the world with natural source in your frozen yogurt treats, which are
essential to keep your body healthy and strong.”
Section 3: SWOT Analysis and SWOT strategy matrix
3.1 SWOT Analysis
According to what mentioned above in section 1, the SWOT analysis is as follows:
Strengths
- Unique brand name and logo, which is easy to remember; the brand logo is a pink smile
face: “ ü ”
- Customize concept and self service is unique concept for customer experiences
- Large selection of frozen yogurt and variety toppings to choose such as fresh fruits,
chilled toppings, syrups and sauces
- Fresh and healthy: non-fat, low-calorie, natural source; recommended by nutritionists and
health experts.
- Many locations and majority stores locate nearby or in the shopping mall
- Training program for all the stores lead to standard quality in all locations

15. Weaknesses
- Limited purchases for customers at one time due to the type of product is a cold dessert,
difficult to take-out.
- Limited customer services
- Lack of flavors at sometimes because of the limited quantity of fresh material each day,
might leads to customers’ dissatisfaction.
- Expensive to franchise a Yogen Früz store, leads to limited number of stores.
Opportunities
- Health life trend
- Customize life style
- Fast life style
- Local business protection trend
- Technology can increase business effectiveness and efficiency
- Eco-friendly
- Stable Canadian economic
- Public health policy
Threats
- Local health regulation
- New legal minimum wage levels in BC Canada
- Temperature
- Business with similar concepts and cheaper price

16. 3.2 SWOT strategy matrix
SWOT STRATEGY MATRIX
Strengths (S):
1. Fresh and healthy
2. Many locations and
majority stores locate
nearby or in the
shopping mall
3. Unique brand name
and logo
4. Customize concept and
self service
5. Large selection of
frozen yogurt and
variety toppings
6. Training program
Weaknesses (W):
1. lack of flavors at
sometimes because
of the limited
quantity of fresh
material each day
2. limited purchases
for customers at one
time due to the type
of product is a cold
dessert, difficult to
take-out.
3. Limited customer
services
4. Expensive to
franchise a Yogen
Früz store, leads to
limited number of
stores.
Opportunities (O)
a) health trend
b) local business
protection trend
c) Eco-friendly
d) Customize life
style
e) Fast life style
f) Technology can
increase business
effectiveness and
efficiency
g) Stable Canadian
economic
BE AGGRESSIVE
(MAX – MAX)
• (a-1) Emphasize the fresh
and healthy of the
products, in order to meet
the health trend from
customers.
• (b-1) Using local fruits
and milk to keep the
product fresh, also help
the city to protect local
business
• (c-1) Use eco-friendly
package to keep the
health concept of the
product.
REDESIGN
(MIN – MAX)
• (a-1) Clear instruction
of limited quantity of
each type of toppings,
shows to customer
their topping is fresh,
which meets the health
trend
• (c-2) Find a special
eco-friendly case for
take-out.

17. Threats (T)
a) Similar business
with cheaper
price
b) Temperature
c) Local health
regulation
d) New legal
minimum wage
levels in BC
Canada
DIVERSIFY
(MAX – MIN)
• (a-1) Increasing the
public awareness of
products’ healthy and
fresh, in order to beat
other similar business
• (c-6) Training program
about local health
regulation
BE DEFENSIVE
(MIN – MIN)
• (b-2) Offering
discount in cold
weather for take-out
• (b-1) Create special
events for different
weather and provide
unlimited topping for
the event in a package
value.