Cold Stone Creamery Marketing Plan
Australian Market
Kimberly Rogis
Ashford University
December 3, 2013
1
Table of Contents
Cultural Analysis………………………………………………………………………………...3
Product Statement……………………………………………………………………………….6
Marketing Goals and Objectives………………………………………………………………..7
Marketing Strategies…………………………………………………………………………….8
Target Market……………………………………………………………………………8
Financial Forecast………………………………………………………………………………10
SWOT Analysis…………………………………………………………………………………11
Strengths………………………………………………………………………………...11
Weaknesses……………………………………………………………………………...12
Opportunities…………………………………………………………………………...12
Threats…………………………………………………………………………………..12
Product Adaptations……………………………………………………………………………13
Vegemite…………………………………………………………………………………13
Green Dream……………………………………………………………………………13
Economic Trends……………………………………………………………………………….14
Unemployment Rate……………………………………………………………………14
Inflation Rate……………………………………………………………………………14
Special Taxes……………………………………………………………………………14
Competitive Analysis…………………………………………………………………………...15
Marketing Promotions………………………………………………………………………….18
Marketing Budget………………………………………………………………………………19
Public Relations/Publicity……………………………………………………………………...21
Product Distribution…………………………………………………………………………....22
Price Determination………………………………………………………………….…22
Franchise Fee……………………………………………………………………………22
Methods of Payment……………………………………………………………………………23
References……………………………………………………………………………………….24
2
Cultural Analysis
Australia has many ideas that help create their culture. The factors that help make the cultural
identity of Australia include the people, the education of the people, the laws or political system
and the business practices. These ideas alone do not create the identity, but they are the main
factors that help shape our perceptions of the country. 3
The geography of Australia is a very important element when considering the culture of a
country. Australia is a continent located between the Indian Ocean and the South Pacific Ocean.
The northern and coastal portions of Australia are very tropical in climate, while the semiarid
and temperate climates portions are on the eastern and southern portions of the continent. 3
The people in the country of Australia are predominantly white with a smaller Asian population
located on the island as well. The people of Australia have a national language of English that
over 75% of the citizens speak. The society in Australia seems to be more advanced than the rest
of the world including the United States. Australia has one of the highest literacy rates for its
people at 99%. This is important because the education of people ultimately leads to the
advancement in society through science and technology. 3
The diet of the people in Australia has a lot to do with where the people choose to live within the
country. The most civilized areas in countries are often times the coastal regions. This is the
same case in the country of Australia with all the major cities being closer to the coastal regions
of the country. This has an affect of the diet of the people within the country. The type of food
that is most popular within the country is seafood. Shrimp, fish, and other sea dwelling creatures
are often times the main course meal for people in the country of Australia. The climate helps
determine the ways the different foods are prepared within the country. The tropical climate
allows for people to enjoy the outer weather, which is the reason many people enjoy barbecue
meals in Australia as well. 3
The clothing of the people within the country reflects their climate and their individuality. Most
of the people live on or near a beach so the people many times where little to no clothing. The
Australians do not wear little clothing because of their lack of morality, but the tropical climate
3
calls for such attire. They have also developed a universal health care system throughout the
country that is funded through a publicly funded insurance program. These programs do take a
lot of public funding to obtain, which causes the cost of living in the country to rise. The citizens
are also eligible for social security after meeting minimal requirements along with various other
family and child support laws. 3
The family life in Australia is similar to the family life here in America. The nuclear family is
usually the makings of the household. There are some households who often have extended
family in the household, but the majority of family life occurs with a mother, father, and
children. The parental roles in the country have showed an increase in the time mothers and
fathers spend with their children. It seems as though the top priority within the country is
spending time with the family. The role of women is also increasing within the Australian
household. The trend for women is to increase the amount of work outside the home without
decreasing the amount work done within the homes. 3
The education level of the people in Australia is the most impressive part of their society and
culture. The 99% literacy rate within the country is very impressive and ultimately helps curve
the behavior of the people in the country. The average school life in the country is 20 years,
which is important because this the age where the potential turns into reality. The schooling of
the people in Australia is very different because Australia is a specialized society. This means
that the people know what kind of work they will be doing for the rest of their lives at a very
young age. The education that the child gets directly relates to the type of job they will acquire in
the future. The majority of the population is urbanized meaning that the majority live around the
city where they rely on the goods and services of others to survive. This is important because it
shows the reasons why the society is specialized. The people are given direction to guide their
potentials for the better of the entire country. The people do the jobs they are best at, but not
necessarily the job a person wants to do. 3
The laws or political systems within the country of Australia are also very similar to the laws in
the United States. There are six states within the country. Each state has its own government and
set of rules, but the state laws are superseded by the federal or national government. Unlike the
4
American system, the states work in unison with the federal government by abiding by federal
law when implementing news laws with a state or territory. The country has a chief of state, who
is commonly known as the queen, and they also have a head of government that is elected. The
head of the government is the prime minister. Along with the prime minister, the person also
brings a cabinet of officials to help with the policies of government. 3
The business practices of the Australia help make up the cultural identity because of the
advancements they have in society. The majority of the people in Australia rely on the ability
buy and trade goods and services to meet their standards of living. For this to be possible, a
structured method of business must occur to efficiently serve the population. The Australian
businessman frowns upon the discussion of personal, professional, or academic achievements
during any negotiation. They purchases that are made within the country contain little to no
negotiation. For this reason, the business meetings are often very brief and conservative. The
relaxed environment of the meeting does not take away from the intensity of the negotiation. 3
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
5
Product Statement
In 1988, Donald and Susan Sutherland opened the first Cold Stone Creamery in Tempe, Arizona.
Donald and Susan’s mission in establishing a new ice cream brand was to provide customers
with the ultimate ice cream experience. Being ice cream lovers themselves, they longed for an
ice cream product that was smooth and creamy rather than hard-packed or soft-served. The
Sutherland’s created a new norm for ice cream by preparing their products with premium
ingredients such as 14 percent milk-fat or butter fat into their products. 
For over twenty-five years, award-winning Cold Stone Creamery has been serving up superior
ice cream, smoothies, cakes, cupcakes and smoothies. Currently there are more than 1,450
independently owned Cold Stone Creamery franchises located throughout the globe. Cold Stone
products are made fresh each day in every store. Customers are able to customize their own
personal dessert creations by choosing from ice cream, yogurt and sorbet flavors and adding in
fruit, candy, nuts, syrups and other ingredients. Customers are able to sample the ice cream
flavors before picking one, ensuring customer satisfaction. Crewmembers then mix in the
ingredients on a frozen granite slab using spatula-like utensils. The atmosphere in every
franchise store is focused on transforming the simple pleasures of eating ice cream into a
memorable one of a kind experience where people can create their own happiness. 5
Cold Stone ice cream is offered to the consumers in three sizes known as “Like It” (5 oz), “Love
It” (8 oz) and “Gotta Have It” (12 oz). Each ice cream includes one topping and any additional
topping is 0.75 cents. Customers are able to take larger portions of Cold Stone ice cream home in
“Mine” (small),”Ours (medium)” and “Everybody’1s (large) sized portions. Cold Stone prices
vary based on franchise location. Australian market prices for Cold Stone Creamery products
include $3.79 for a “Like It,” $4.00 for a “Love It,” and $4.29 for a “Gotta Have It.” Pre-packed
ice cream ranges in price from $8.99 to $12.99. Retail price will be higher than other franchise
locations due to the cost of living in the country and the inflation of that market. 5
5 Cold Stone Creamery History. November 10, 2013 http://www.fundinguniverse.com/company-histories/cold-stone-creamery-history/
6
Marketing Goals and Objectives
Goals 3

Add new ice cream flavor “Vegemite” to appeal to the tastes of local Australians while
also providing new flavors such as “Green Tea Ice Cream” to cater towards health
conscious consumers.

Develop marketing techniques to target tourists within our Australian location.

Continue to grow as a franchise and expand into other tourist areas in Australia.

Maintain the current ranking as one of the fastest growing franchises.

Increase community relations with local charities in the Sydney, Australia area.

Implement marketing strategies to increase local customer awareness.

Maintain product consistency to increase positive brand awareness and satisfaction.
Objectives 3

Open two new locations in Australia by December 2014.

Open the first location in Sydney, Australia by June 1, 2014.

Open the second location in Melbourne, Australia by December 1, 2014.

Create a “Vegemite” flavor by June 1, 2014 and offer it in the first location.

Run a promotion at the Melbourne location during the Australian Open of Surfing in
February.

Boost sales during peak travel time by 10% by the end of 2015.

Increase customer base by creating a loyalty program.
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
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Marketing Strategies
Target Market
Cold Stone’s target market consists of consumers who have a disposable income and prefer the
taste of premium ice cream. The customers within this market are looking to have the ultimate
ice cream experience and are in the age range of 20-45.
Cold Stone prices are higher than those
of its competitors. Therefore, the consumers within this market are those who want customized
and personalized products. The personalized services that Cold Stone offers its customers create
a new norm in the ice cream experience, leaving the customers wanting more. It is important to
accurately market to the following market segments in order to achieve the best reputation
possible in Australia. 2
Primary Market: 6,588,744 consumers who are 20-45 years in age.

Demographic Segmentation: Age
o It is important to target this specific age segment for a variety of reasons.
Consumers in the age range of 30-45 are very important because they frequently
travel. Consumers in their twenties are also important because they are very
likely to visit ice cream shops. This target market makes up a significant amount
of the Australian population, which can be seen below. 2
2
3 Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
2 Australian Social Trends. (2006, April 20). Australian bureau of statistics. Retrieved October 18, 2013, from http://www.abs.gov.au/AUSSTATS/abs@.nsf/2 f762f95845417aeca25706c00834efa/2559632155bf56b8ca2570eb0083
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
Psychographic Segmentation: Impulse Behavior
o According to Food Manufacturing, in 2012 Australia was the second highest
spending country on ice cream, spending $53 per head. In 2012, Australians also
consumed 10.3 liters per head. Australians are willing to spend money on
premium ice cream and typically decide to purchase ice cream based on impulsive
behavior. 3
Secondary Market: 5,000,000 tourists with an annual income greater than $30,000

Demographic segmentation: Income

The secondary market would focus on annual visitor arrivals. These consumers include
families and individuals with an annual income greater than $30,000. Since Cold Stone
is a global franchise, it will be highly recognized from consumers located outside of the
Australian market. 3
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
9
Financial Forecast
Sales Forecast
The following sales forecast is determined on the season, weather and number of consumers
visiting the Australian market. During the first year we expect to see lower sales compared to
other global franchise locations. This is because consumers may be unaware of our brand or fear
our premium prices. The first year in business will be focused on creating a positive brand
image and the heavy use of promotions. By the second year we hope to see a 40% increase in
sales based on our marketing efforts the first year. We expect to see higher sales in the spring
and summer seasons (November- March) and lower sales in the fall and winter seasons (AprilSeptember). 3
Profit Forecast
Since we are an unknown franchise in the Australian market we predict that the first year we will
result in a net loss. We predict the net loss will be affected by the price it takes to rent a high
trafficked location and the price it takes to make necessary renovations. We also predict a net
loss based on a low consumer base. By the second year we hope to increase revenue by 30%
through our marketing efforts in year 1. By the second year we hope to continue efforts in
building a customer base and focus on loyalty rewards programs for our current local customers.3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
10
SWOT Analysis
Strengths 3
1. Locations are located near heavily populated and trafficked areas.
2. Consumers are willing to spend more money on Cold Stone products in order to receive a
premium product.
3. Cold Stone Creamery uses premium ingredients and makes products fresh daily.
4.
Cold Stone Creamery provides consumers with the ultimate ice-cream experience.
5. Cold Stone Creamery is an ice cream market leader.
6. Offers consumers a variety of flavors and toppings to adapt to everyone’s taste.
7. Cold Stone Creamery creates products to adapt to local taste.
8. Cold Stone Creamery focuses on community service and working with charities a priority.
9. Cold Stone Creamery utilizes social media to engage customers through the use of
promotions, contests and fun facts.
10. Cold Stone Creamery transitioned to co-branding in order to capture a larger target market.
Weaknesses 3
1. Australians may be unwilling to try new product based on its high price.
2. Product is not well known in current market.
3. Being located in a highly populated area could increase wait times for consumers.
4. Health conscious consumers might be uninterested in our product due to large portion
sizes.
5. Asian market within Australian may not find enough variety in our products to interest
them.
Opportunities 3
1. Recent increase in tourism allows for significant market growth.
2. Creating flavors to adapt to local taste will boost sales and encourage repeat buyers.
3. Providing customers with healthier products will give Cold Stone Creamery an advantage
over its competitors.
4. Warm weather and beach setting increases the impulse buying behavior of consumers.
5. 89% of the Australian population lives in urban areas.
Threats 3
1. Customers may choose a competitor based on price and not quality.
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2. There are many ice cream competitors in the Australian market that provide consumers
with a large variety of options.
3. The health conscious fad could negatively affect our overall sales.
4. Our initial startup expenses and franchise fees could negatively affect our profit for the first
year.
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
12
Product Adaptations
In order for Cold Stone Creamery to be successful in Sydney and Melbourne Australia it is
important to adapt our products to the taste of the local markets. Adapting our products will give
Cold Stone Creamery the competitive advantage it needs in order to thrive in the Australian
market. We plan on adapting our products to meet the needs of Australians by creating a flavor
specifically for the people within this market.
Vegemite- One of the new flavors we will create for this market will be based on the popular
Australian paste, Vegemite. Vegemite is a well-liked dark brown food paste that is used as a
spread for sandwiches and used for filling pastries. We plan on naming this new flavor
“Vegemite.” By creating a flavor specifically for Australian taste, we are establishing a
memorable experience for customers. 6
Green Dream- We will also introduce a new flavor called “Green Dream” to consumers within
our market. “Green Dream” is a healthy, antioxidising green tea ice cream flavor. This flavor
will be a healthy alternative for those who are health conscious. Cold Stone Creamery hopes to
target tourists and locals with this unique ice cream flavor. 6
6
6
Food Manufacturing. Retrieved November 10, 2013, from http://www.foodmanufacturi ng.com/news/2012/09/consumer-trends-we-all-scream-ice-cream
13
Economic Trends
Unemployment-Australia has a relatively low unemployment rate at 5.2%. The total
unemployment rate for youth ages 15-24 is 11.3%. Out of the total amount of unemployed youth
11.9% is male and 10.8% is female. 3
Inflation Rate-Australia was unaffected by the global financial crisis and their banking system
has remained strong keeping their inflation rate under control. In 2012 it was estimated that
Australia had a 1.8% inflation rate. This indicated that Australia was ranked 37 on the country
comparison to the world based on inflation rate. 1
Special Taxes- In order to have franchises in Australia, Cold Stone Creamery is subject to
various federal, state and local government taxes and rates. Federal government taxes that apply
to our franchises include Goods and Services Tax and Fringe Benefits Tax. State government
taxes that will also apply include payroll tax, land tax, duties and debits tax. Importers of our
supplies will need to be registered for GST purposes and have an ABN in order to claim input
tax credits or access the GST deferral scheme. 7
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
1 Australia Government. (2013). Retrieved December 3, 2013, from
http://australia.gov.au/about-australia/australian-stories/sport-and-recreation#Recreation
7 Social Security Appeals Tribunal. (2012). Home. Retrieved November 14, 2013, from http://www.ssat.gov.au/
14
Competitive Analysis
New Zealand Natural Ice Cream-The company commenced
franchising in 1990, New Zealand Natural Ice Cream (NZN) is a
global franchise network based out of Auckland, New Zealand. It
operates as the national and international franchisor of the New
Zealand Natural ice cream, frozen yoghurt, smoothie and juice
parlors and mini parlors. 6
Wendy’s Supa Sundaes- A store selling delicious ice cream sundaes and treats and, by
lunchtime on the opening day, the centre’s mains power had blown as the store’s machinery
struggled to keep up with customer
demand. This extraordinary beginning
was the start of a brand that has developed
into one of the nations most recognized
and well-loved franchises. With more than
three decades of successful franchising
experience, the company has come a long
way since those humble beginnings.
Wendy’s now has over 250 stores across
Australia and New Zealand and has grown
from a single store operation to a large franchise network. While the Wendy’s of today is very
different to that first store, our franchisees are still motivated by one simple philosophy – to
deliver the ultimate treat experience to every customer, every time. 6
Gelatissimo- Gelatissimo is a retail franchise where franchisees
make fresh artisan gelato on site with the finest ingredients from
authentic family recipes using a simple and easy to use system.
Gelatissimo has a passion and commitment to creating handmade premium artisan gelato, which we make fresh in-store,
15
using secret traditional Calabrian family recipes and the finest quality ingredients. A Gelatissimo
gelateria is a fun place for people of all ages that offers flavors to please every palate; a place
where families and friends can enjoy wonderful times sharing delicious gelato. 6
Tasti D-Lite Australia- Tasti D-Lite Australia is a frozen dairy
dessert with less of what people don’t need – fat, calories, sugar and
carbohydrates – and more of what they want … creamy, delicious
taste. It’s also a franchised retail concept that’s perfectly positioned
to capitalize on consumers’ love for frozen desserts and the growing
trend toward healthier living and eating. 6
Baskin-Robbins- Baskin-Robbins is the largest frozen dessert chain in the United States and the
world, with more than 2,800 locations in the U.S. and 6000 throughout the world and 2,800
locations in the United States. Baskin-Robbins had $572 million
in sales in 2008, making up 11.3 percent of the top U.S. ice cream
shop chain market.4 Baskin-Robbins is a leading player in the ice
cream industry and embodies the brand qualities of a traditional
ice cream shop. The company has classic menu offerings and
offers consumers a variety of flavors. Baskin-Robbins plans to
reinvent the brand by offering Soft Serve ice cream and create a
new value price point. In addition, Baskin-Robbins is beginning a
new concept format called “BR Express” featuring a product line based from the future soft
serve menu. 6
Ben & Jerry's- Ben & Jerry’s brand’s identity is shaped by innovative combinations of
traditional ingredients paired with some very unorthodox
names. They have roughly 750 locations with approximately
500 of those in the United States. Ben & Jerry’s had $240
million in sales in 2008, making up 18.5 percent of the
leading ice cream shop market. Ben & Jerry’s spread
6 Food Manufacturing. Retrieved November 10, 2013, from http://www.foodmanufacturi ng.com/news/2012/09/consumer-trends-we-all-scream-ice-cream
16
environmentally friendly messages and is committed to activism. The company uses limited
time offers of particular flavors to raise money and awareness for a variety of different causes.
Ben & Jerry’s also value its customers and have employed a “Free Cone Day” as a customer
appreciation effort for over 30 years. 6
Fritz Gelato- Fritz Gelato is an award winning, organic, Italian style ice cream. Our gelato is
based on traditional recipes with modern influences. We
pride ourselves on using the best fresh quality
ingredients, eliminating the need for artificial flavors and
colors. Fritz Gelato specializes in organic ice cream,
sorbets and frozen yoghurts, partnered with organic
coffee and donuts. 6
6
Food Manufacturing. Retrieved November 10, 2013, from http://www.foodmanufacturi ng.com/news/2012/09/consumer-trends-we-all-scream-ice-cream
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Marketing Promotions
In order to increase brand awareness it is important to focus on positively promoting the Cold
Stone Creamery brand. The following promotional activities will be utilized immediately in
order to increase our customer base:
Coupons (Printable, Direct Mail and Mobile)- Cold Stone Creamery will provide is customers
with the opportunity to utilize coupons. These coupons will be available by signing up for our email and newsletters and will be sent to consumers via mail order, online and on mobile devices.
It is important to utilize mobile coupons that are accessible to consumers since most of our sales
are based on impulse buying behavior. 4
Loyalty Reward Program- The use of a loyalty reward program is to create frequent customers,
thus increasing our customer base. We will provide customers with a 10-count punch card,
which will be punched at the register while paying for their ice cream treats. Once the customer
receives ten punches they will receive a free “Love It” sized ice cream, smoothie or shake
redeemable at their next visit. 4
Commercials/Billboards- Commercials and billboards will be used to draw consumers into our
new franchises. We will implement a series of advertisements on billboards and commercials in
order to increase the impulsive behavior of consumers. The advertisements will be strategically
placed to be seen by the customers within our target market. 4
Happy Hour- In order to promote sales during our low hours of the day we will utilize a “Happy
Hour” every Monday through Wednesday 11:00-1:00 and 9:00-11:00 p.m. During Happy Hour
customers will be able to receive $1.00 off any ice cream, frozen yogurt, shake or smoothie.
Customers will also be able to receive a double punch during this time.4
4
Cold Stone Creamery. (2013). Entrepreneur. Retrieved September 6, 2013, from http://www.entrepreneur.com/franchises/coldstonecreamery/282219-0.html#
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Marketing Budget
Selling Expense
$109,000
Rent
$36,000
Utilities
$18,000
Labor costs
$105,000
Advertising/Promotion Expense
$80,000
Internet Marketing
$15,000
Radio/TV ads
$20,000
Signs/Billboards
$30,000
Other Promotions
$15,000
Distribution Expense
$25,000
Product Cost
$30,000
Ingredients
$24,000
Serving Material/Packaging
$6,000
Other Costs
$20,000
Taxes
$17,000
Returns
$3,000
TOTAL
$264,000
Cold Stone Creamery requires that each of their franchises spend 3% of their sales on marketing.
In order to comply with this standard, we estimated that both Cold Stone Creamery franchises in
Australia would spend 80,000 on advertising in their first year. The total amount of expenses for
both franchises is $264,000. Cold Stone Creamery locations in Sydney and Melbourne will
utilize the following marketing promotions: coupons, loyalty reward programs, commercials,
billboards and happy hour. It is imperative that Cold Stone Creamery spends a significant
amount of money on promoting their brand in the first year in order to achieve our goals and
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objectives. After the first year of service, 3% of sales will be able to be identified for both
locations. 3
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
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Public Relations/Publicity
Sydney, Australia Franchise Public Relations
 Cold Stone Creamery will create a promotion during the Australian Open of Surfing.
The Australian Open of Surfing attracts 125,000 spectators during February who
celebrate Australian action sports, music and art. Cold Stone Creamery will be
partnering with the Surf Life Saving Foundation for the Australian Open of Surfing 2015
in order to raise money for their charity. Surf Life Saving Foundation focuses on
educating people on saving lives and practicing safe beach techniques. In order to
capitalize on the plethora of spectators who travel to Australia specifically for this event
we will donate 20% of our overall sales of the day to Surf Life Saving Foundation. We
will also have a few volunteers from the Surf Life Savings Foundation there to talk to our
customers about the importance of beach safety while handing out promotional coupons
to consumers. To promote this we will utilize commercials, billboards and fan
newsletters. We will also contact the local news in order to draw attention to our event. 2
Melbourne, Australia Franchise Public Relations
 Cold Stone Creamery has a great publicity opportunity to collaborate with the Australian
Open of Tennis. Every year the best tennis players in the world come to Melbourne to
compete in the prestigious Australian Open, which is one of the four Grand Slams of
tennis. It's one of the biggest events in Australia every year. Cold Stone Creamery could
take a great advantage of this event because it draws thousands of fans and it's right in the
summer time. The conditions for a promotion partnership with the Australian Open are
exceptional. Last year alone, the event had an attendance of 684,457 people throughout
the course of two weeks. It represents an amazing opportunity to create brand awareness
among people in Australia. Also there are many tourists from different countries around
the world that come to this event and they could be familiarize with the brand of Cold
Stone Creamery, which could draw more attention to the brand and create more alertness
of the franchise. With the use of our Cold Stone Creamery truck within the park where
the Australian Open is held every year, Cold Stone Creamery would be presented to over
40,000 people every day. 2
2 Australian Social Trends. (2006, April 20). Australian bureau of statistics. Retrieved October 18, 2013, from http://www.abs.gov.au/AUSSTATS/abs@.nsf/2 f762f95845417aeca25706c00834efa/2559632155bf56b8ca2570eb0083
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Product Distribution
Each Cold Stone Creamery franchise produces their products in store daily. This ensures they
sell consistent high quality, fresh premium products. In order to be consistent with other
franchises the Cold Stone Creamery headquarters in Scottsdale, Arizona will send both
Australian locations packaging materials in order to be consistent with other franchises. The
materials will be sent from Scottsdale, Arizona to San Francisco where they will then leave port
and head to the Sydney and Melbourne ports. The shipping of packaging materials must be
reliable enough to get times and routes negotiated properly. 3
Price Determination
The cost of transportation of materials depends on size, weight and frequency of shopping. A
portion of the handling expenses will be lower due to the lightweight paper materials. We expect
to see higher handling expenses due to cross-global traveling during the time of shipment. Cold
Stone Creamery franchises in Australia created their pricing strategy based on the cost of living,
shipment fees and inflation within the new market. 3
Franchise Fee
Since Cold Stone Creamery’s first Australian location will be in Sydney, Australia we will need
to pay a franchise fee of $84,000. We will also need to plan to invest between $572,150 and
$948,650 in order to rent a location, purchase equipment and stock a traditional location. 4
3
3
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
4 Cold Stone Creamery. (2013). Entrepreneur. Retrieved September 6, 2013, from http://www.entrepreneur.com/franchises/coldstonecreamery/282219-0.html#
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Methods of Payment
Cold Stone Creamery would primarily utilize three forms of payment due to the fact that our ice
cream is sold through retail outlets. The first method, which will most likely be used the most, is
debit and credit cards. In our retail outlets, these can be slid through the machine to purchase the
ice cream through a POS system. Credit and debit cards can also be used to purchase items off
of our website for our larger items, such as cakes. The other form of payment would be cash.
The customers that prefer not to use credit or debit cards will be able to purchase items with
cash. The last form of payment for items would be a Cold Stone Creamery gift card. 4
Once more stores are established in Australia and a distribution center is set up for franchise
opportunities, the ingredients and packaging will be available to the individual stores on 30-day
terms. 4
4
4 Cold Stone Creamery. (2013). Entrepreneur. Retrieved September 6, 2013, from http://www.entrepreneur.com/franchises/coldstonecreamery/282219-0.html#
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References
Australia Government. (2013). Retrieved December 3, 2013, from http://australia.gov.au/aboutaustralia/australian-stories/sport-and-recreation#Recreation
Australian Social Trends. (2006, April 20). Australian bureau of statistics. Retrieved
October 18, 2013, from http://www.abs.gov.au/AUSSTATS/abs@.nsf/2 f762f9584541
7aeca25706c00834efa/2559632155bf56b8ca2570eb0083 5396!OpenDocument
Central Intelligence Agency. (2013). The World Factbook. Retrieved November 30, 2013, from
https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
Cold Stone Creamery. (2013). Entrepreneur. Retrieved September 6, 2013, from
http://www.entrepreneur.com/franchises/coldstonecreamery/282219-0.html#
Cold Stone Creamery History. (2013). History of Cold Stone Creamery – FundingUniverse.
Retrieved November 10, 2013, from http://www.fundinguniverse.com/companyhistories/cold-stone-creamery-history/
Food Manufacturing. Retrieved November 10, 2013, from http://www.foodmanufacturi
ng.com/news/2012/09/consumer-trends-we-all-scream-ice-cream
Social Security Appeals Tribunal. (2012). Home. Retrieved November 14, 2013, from
http://www.ssat.gov.au/
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