Cold Stone Creamery In
France
By: Shauna Hendricks
Product
• First Cold Stone Creamery
opened in 1988 in Tempe,
Arizona
• Cold Stone Creamery is
categorized as “super
premium”
• The ice cream is made fresh
everyday and can be made
with any combination the
customer wants
• Every ice cream served is
called a “creation” because it is
a work of are
• The first international franchise
opened in 2001 in St. Thomas,
U.S. Virgin Islands
Target Market
• My initial target market is tourists within a
large metropolitan area (Paris). Then
expand that market into local consumers
of all ages and groups, mainly ages 15-30.
Objectives
• First Year Objectives
– Establish an overseas franchise in Paris,
France
– Create awareness and interest in the
business and product
– Take advantage of the tourist market
– Have a 5-7% return on investment
Objectives Cont.
• Second Year Objectives
– Insure product and franchise integrity
– Expand market share to local population
– Have a 10-15% return on investment
Objectives Cont.
• Third Year Objectives
– Continue to insure product and franchise
integrity
– Insure product and franchise quality
– Have expansion plans to move into a second
city
– Have a 25-30% return on investment
Size of Market
• The population of France is 64 million
people
• 62 million of that population is in
metropolitan France
• The population growth rate is .574%
• France’s purchasing power is $2.07 trillion
• GDP per capita is $32,600
• Income per capita is $33,800
Nature of Economy
• Natural resources are: coal, iron ore, bauxite,
zinc, uranium, antimony, arsenic, potash,
feldspar, fluorspar, gypsum, timber, and fish
• France’s topography ranges from sea level to
mountain peaks. Most of the country is covered
in mountains. There are 3 main river systems:
the Seine, the Loire, and the Garonne
• Three types of climates that are found in France
are: oceanic, continental, and Mediterranean
Infrastructure
• France has one of the most highly developed
transportation systems in Europe
• There are 650,000 miles of paved roadways
• France has 476 airports
• The minimum age to drive an automobile is 18
• Bicycling is very popular
• The Chunnel, subways, and buses are a popular
mode of transportation
Infrastructure Cont.
• France has 35.533 million main telephone
lines in use, 34.8 million of those are being
used in metropolitan France
• Mobile cellular users amount to 56.719
million
• There are 584 T.V. broadcasting stations
• There are 12.556 million internet hosts
with 31.295 million internet users
Urbanization
• Rural France is full of beds and
breakfasts, holiday rentals, and campsites
• Metropolitan France has a lot of
shopping/fashion, tours, restaurants, and
Disneyland Paris
Other Economic Characteristics
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France imports total to $600.9 billion
The external debt reaches $4.396 trillion
Foreign investment is $942.3 billion
France is a Republic
The administrative divisions are in 26 regions
They have a civil law system
France’s Chief of State is President Nicolas
Sarkozy
Cultural Environment
• French is the language spoken 100% in
France
• 99% of people are literate in France
• The majority of religion in France is
Roman Catholic (85%)
• France’s eating habits are changing
• Quality is now a concern when dining at
restaurants and cafes
Political and Legal Environment
• American exporters to France generally
face more competition from European
companies than Asian companies
• France offers a favorable economic
environment to potential exporters
Competitive Analysis
• The biggest competition in France is
Berthillon
• It is extremely popular with the locals
• Even stores and restaurants that don’t
carry Berthillon brand put their logo and
name in store front windows to draw in
customers
Product Policy
• Use the standard products that are found
at all Cold Stone Creameries
• The product is infinitely adaptable with the
variety and combinations used
• The brand and trademark will be the same
because it is a franchise
• Packaging will be the same and labeling
will be in French as well as English
Product Policy Cont.
• Most products have a short life cycle
• The life cycle is a maximum of 30 days
• This is to ensure quality and freshness
Distribution
• Utilize current Cold Stone Creamery
distribution channels that are most cost
effective
• Once the product is there, use a Paris
based importer/exporter then use local
transportation methods to get the product
to the franchise
Promotion
• Media outlets used will be magazines,
pamphlets and brochures, posters and
billboards, and newspapers
• The advertising budget is not is not large
due to Cold Stone Creamery being a
smaller franchise and I don’t have the
funding
Advertising Budget
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Magazines
Pamphlets/brochures
Billboards/posters
Newspapers
• Total
$6,000
$1,000
$15,000
$1,000
$23,000
Start Up Costs
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Initial Franchise Fee
Travel & Living Expenses While Training
Real Estate
Architectural Fees
Leasehold Improvements
Exterior & Interior Signage
Equipment
Initial Inventory
Employee Uniforms
Grand Opening
Insurance Premiums
Permits & Licenses
Telephone & Utility Deposits & Hookups
Miscellaneous
Computer Training & Food Safety Certification Course
Additional Funds & Working Capital-3 Months
$42,000
$5,000
$50,000
$10,000
$170,000
$15,2000
$150,000
$8,000
$800
$5,000
$2,500
$3,000
$1,000
$15,000
$250
$35,000
•
Total
$512,750
Controlling the International Plan
• Hire a PR firm after 1 year in business to insure
Cold Stone Creamery name and brand
recognition
• Have customer and employee satisfaction cards
to insure the business is getting run smoothly
• Keep in contact with Corporate Headquarters to
deep up with new marketing strategies and
trends
• Monitor the franchise to see what products the
customers are or are not responding to