Noor Azab

Noor Alajami
Nishan Persad
Marwa Shohaib

Key information:
Created in 1987 by Curt Jones in
Southern Illinois.
The Concept was to introduce a new
way of indulging ice cream by
instantly freezing it by mixing in
liquid nitrogen.

Mission/ Vision
The overall goal of Dippin Dots was to create
something that had not yet been done
before.
They wanted their company to derive from
something that stood out from the rest.
They wanted a cool twist to the way ice cream
was made and looked. To be the ice cream
of the future.
3

Financial Analysis of
Dippin
Security Exchange Dots
and Commissions Disclosure Laws and
Regulations:

Companies that are privately owned are not required by law to disclose
detailed financial and operating information.
Examples of financial and operating information:
Annual Report
Balance Sheet
Income Statement

Financial Analysis
Inc magazine ranked Dippin Dots as one of the fastest growing
Continuation
companies in 1996 and 1997.
Dippin Dots ranked number 4 on entrepreneur magazines 2004 list
of top 50 new franchises.
Dippin Dots files for bankruptcy in 2011
Dippin Dots secures an offer from Scott Fischer for $12.7 Million in
2012.

Financial Analysis
Continuation
Growth between 2013-2015 was up 60% of estimated retail sales value
Expected to grow an additional 25% in 2016
Franchise Revenue has increased by 45% in 2015

External Analysis of Dippin

Dots
Threat of Substitution : High
Consumers can buy ice cream at the grocery store (Can not store Dippin
Dots in normal freezers)
Other ice cream cost less (Regular size for Dippin Dots : $4.79)
Many other types of competitor based products:
Sherbet, ices, ice cream, frozen yogurt, gelato

External Analysis of Dippin

Dots
Supplier Power: Moderate
Buyer is price sensitive
Buyer is educated about the product
Buyer buys in volume depending on retail customer interest
More buyers than suppliers

External Analysis of Dippin

Dots
Threat of New Entry: Low
High Start up cost
Dippin Dots start up cost ranges from $80,428-$235,250.
Competitor must battle through 8 segments that are need in dairy
industry
High brand names in the industry (Baskin Robbins)

External Analysis of Dippin

Dots
Buyer Power: Moderate
Need supplier who can store their product
Pay high premiums for the product
Can not lower prices due to high storing/making Prices
Little threat of backward integration
Unique product
Price sensitive
10

External Analysis of Dippin

Stage of Industry Life Cycle: Growth
Dots
Scott Fischer has invested $3.1 Million
into the Dippin Dots plant to acquire
better equipment, operational upgrades
to improve efficiency, and improve the
level of production.
Expanding their portfolio of what they
offer to customers. (Ex: Redberry
Sherbet)
Goals have been made to expand to
foreign countries such as China and
Japan.

Year:

Number of
Franchises:

2013

112

2014

116

2015

115

2016

121
11

Value Chain Analysis:

Primary:

Inbou Oper
nd
ation
Logis s:
tics:

Outb
ound
Logis
tics:

Mark Servi
eting ces:
Sales
:

Uniqu
e way
of
creatin
g ice
cream

Logisti
c
proble
ms
were
obviou
s

Sold
all
over
theme
parks,
malls
movie
theatr
es,
stadiu
ms,
and
arena
s

Sold
world
wide,
with
Japan
being
first

Franc
hising
is
harder
due to
strict
rules

12

Value Chain Analysis Cont.:

Secondary:

Procur
ement:

Human Technol Infrastr

Resour ogy:
ucture:
ces:

Due to
high
cost of
ingredi
ents,
price is
high

Started Innovat The

out as ive
main
Jones
priority
friends
is to be
able to
meet
deman
ds, and
keep
market
interest
ed

13

SWOT Analysis
Strengths
Unique
product
Strong
and
establishe
d brand
Tasty and
fresh with
less
calories
Vast
product
line and
flavor
offering

Weaknesses
Can only
be
consumed
at or near
retail
location
High
operating
costs
Difficulty in
achieving
in store
Relatively
high price
Dying

14

D
I
P
P
I
N
D
O
T
S
VS
C
O
M
P
E
T
I
T
O
R
S

Firm
Name

Dippi
n
Dots

Strat
egy
Highli
ghts

Ratio
nale
for
Strat
egy

Pros
and
Cons

I-c
taste
with a
futuristi
c
design
&
concept
.

Only
one of
its
kind.

Pros:
Consu
mers
get to
eat a
futuristi
c, lower
calorie,
fun i-c.

They
use
innovati
ve
marketi
ng and
franchis
e
placem
ent to

Must be
served
at
specific
temper
ature.
Franchi
sing
allows
product
to be
sold at
amuse
ment
parks...
etc.

Cons:
High
costs,
FAD, &
difficult
to sell
in
stores.

15

VRIO
ANAL
YSIS
16

VRIO Analysis

Valuable?

unique ice cream design

Increased profits and revenues

Costly to Imitate
Privately traded company and financial
records are not made public

Brand recognition

Difficult to imitate design, technology,

research and development

Organized to Capture

Rareness?

Leading innovator in technology

Effective organizational structure

uses special packing system to

protect the shape of their ice
cream and to ensure the quality of
their product

Coordinating systems
17

G Portfolio
trix

Considered a Dog
Low Market Share in a slow growing industry
A niche item in the ice cream industry
18

Recommendations
Focus on creating a nonseasonal products
Continue its expansion efforts
broaden its target market
19