San Leandro DECA Chapter
San Leandro High School
2200 Bancroft Ave.
San Leandro, CA 94577
Fernanda Rojas
January 8, 2015
Table of Contents
I. EXECUTIVE SUMMARY
Page 1
II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION
A. Rationale and marketing
B. Introduction
C. Self-analysis
D. Analysis of the business opportunity, customer and location
Page 2
Page 2
Page 3
Page 3
E. Proposed organization
III. PROPOSED MARKETING/PROMOTION PLAN
A. Proposed product or service
B. Proposed pricing policy: costs, markups, relationship to competitors
C. Personal promotion: non-media sales plan, staffing and merchandising appeal
D. Non-personal promotion: media, basic appeal and initial promotion plan
E. Place: channel of distribution from manufacturer or service provided to consumer
Page 4-5
Page 5
Page 5
Page 6
Page 6
IV. PROPOSED FINANCING PLAN
A. Projected income/cash flow statement
Page 7
B. Projected Three Year Plan
C. Capital and Repayment plan
V. BIBLIOGRAPHY
Page 8-9
Page 9
Page 9-10
I. EXECUTIVE SUMMARY
Baskin Robbins has long been dedicated to making experiences of eating ice cream an enjoyable one.
“America’s favorite neighborhood ice cream shop” is a philosophy at Baskin Robbins shared by everyone.
The franchise stores are located in nearly 7,000 different locations worldwide. In addition to Baskin Robbins
premium ice cream, they also sell different products going from sundaes and beverages to delicious ice
cream cakes. Fortunately for those that need “Bright choices”, Baskin Robbins does indeed sell “better for
you options” which include a fat free, dairy free, no sugar added and light ice cream for those seeking a
healthier diet. After all Baskin Robbins is all about having “more fun, more flavors, with happy guests
around the globe”.
Mission Statement: “To make the Baskin Robbins Neighborhood a tasty, fun place for our
customers”
The area of Oakland City Square is prospering with growing families and a growing community, making
it a perfect location to open another successful Baskin Robbins store.
Baskin Robbins is one of the few ice cream specialty shops that offer a variety of ice cream flavors. With
up to 31 flavors, “ a different flavor for every day of the month” customers who are curious and interested in
trying something new have the ability to do so. With this overarching branding, Baskin Robbins iconic pink
spoons were created with the belief that people should be able to try any of their many flavors without any
cost at all.
Nevertheless, Baskin Robbins mainly targets parents with families as well as young adults/ teenagers
currently living in the proximity of a Baskin Robbins location. These people can be considered affluent but
the prices are not so high that others cannot purchase it.
Promotional activities will be planned with the target market in mind, they will require social media and
other audience specific material. My goal is to offer more promotions to expand the awareness of the
successful shop to others and to hopefully sustain the store until the break-even point.
II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION
A. Rationale and marketing research
Baskin Robbins is the world’s largest chain of ice cream specialty shops and is based in Canton,
Massachusetts. The company is well known for their “ 31 flavors” and is ranked as one of America’s top 10
Global Franchises thus the world’s largest chain of ice cream shops. For the past decades, they have taken
pride in sharing “more flavors. More fun with happy guests around the globe”. They believe that a customer
should have a different type of flavor every day of any month. Having mentioned this, Baskin Robbins does
not have one specified target group. Most of the customers are families and young adults. These are the
group who visit the store quite a lot because they are attracted by the quality and success. In fact, that is why
I have considered franchising a Baskin Robbins store, because I see great potential in doing so.
B. Introduction: type of business, brief description of major product(s)/service(s) involved
Two ice cream enthusiasts named Irv Robbins and Burt Baskin founded Baskin Robbins in 1945. It was
when Irv Robbins, having owned an ice cream shop, became bored with traditional flavors like chocolate and
vanilla and began experimenting by mixing fruit and candy into the ice cream, that he partnered with Burt
Baskin. Together they created Baskin Robbins and since then they have created and marketed innovative,
premium ice cream, specialized in frozen desserts and beverages, while providing quality and value to
consumers at nearly 7,300 retail shops in nearly 50 countries. This extreme passion led to the creation of
more than 1,000 ice cream flavors and a wide variety of delicious treats. Headquartered in Canton,
Massachusetts, Baskin-Robbins is part of the Dunkin Brands group in a family of companies. The top
selling ice cream flavors of the ice cream shop are vanilla, chocolate, mint chocolate chip, Pralines n’ cream,
and chocolate chip. This company supports local communities in a myriad of ways that is essential to people
around these local areas. Not to mention the staff always greets customers nicely, they can enjoy their ice
cream inside the appealing parlor and most of all enjoy their ice cream.
C. Self-analysis: actual personal experience and/or training in proposed field
Having been an ice cream lover for the majority of my life, I have visited Baskin Robbins practically my
entire life to say that it is my favorite ice cream shop. Baskin Robbins has been successful for many years
and it has been a privilege to witness it. My experiences when visiting my local shop have never failed to be
great, I have always received good service and quality ice cream. Being a loyal customer of Baskin Robbins
for so many years has drawn me to the consideration of wanting to own my own shop within the franchise. I
have gained many skills and experience over the past years learning about the business world. Thanks to the
academy of Business and Finance that I am enrolled in as well as DECA and NFTE, I am able to create a
business plan and understand every single detail that goes with it. I have participated in plenty of
competitions that have allowed me to put my knowledge of how a business works and how to start one into a
product or company. To add on to that, I have also written a sales training manual and developed innovative
ideas for products of my own. However, aside from the written documents, I have put matters into my own
hands. Not only can I create a written document about starting a business, I have the experience of actually
starting one. Recently this year I took part in opening a student store at my school and from this experience I
understand and am aware of all the work that has to be put into a business to start up. Time and energy is
highly essential, patience turns into a priority, but passion and dedication becomes key.
D. Analysis of the business opportunity, customer and location: geographic, demographic and
economic analysis of trading area, customer and locale of proposed business
Since Baskin Robbins’ does not have many store locations in the bay area, people have to travel some distant
to visit the shop. A very specific place where there should be a local shop is in Oakland. It is one of the most
common cities that is large and needs a shop location for the people living in that area. Fortunately there is
an open lot in 501 14th Street in the Oakland city square of Oakland California. They are offering a 2,220
square foot lot for about $2.35 a month. This is an excellent business opportunity that the company of Baskin
Robbins should consider because the location can draw rich attention to people. The location of the Oakland
city square is very popular itself, with many different kinds of people who pass and walk about enjoying
their day. With its pleasing atmosphere and amount of people visiting everyday this location might just be
the right spot for Baskin Robbins.
E. Proposed organization: type of ownership, steps in starting to form business, planned
personnel, management knowledge and skills
Since I will run my business as an independent franchise, I will hire a loyal manager who will run the shop
when I am absent as well as hardworking employees. Like any other way of getting a job, the interested
employee will be required to fill out an application to work in my Baskin Robbins shop. However, to be able
to do so I must first apply myself if I want to own my own business as an independent franchise. This
application determines whether or not the applicant has the skills and abilities that are looked for to be a part
of the team. In this case Baskin Robbins is looking for candidates who seek a dedication of operating
excellence, who have a passion for their community, and are ice cream lovers. They want to feel like you
have an understanding of brand building within a community and a drive for local store marketing. Someone
who demonstrates the ability to build a high-performing team that is dedicated to operational excellence and
guest satisfaction. Not only this but they also desire some who has the desire and financial resources to
develop or purchase one or more locations. Once the interested applicant is accepted they are expected to
give an initial investment of $25,000 and the total investment that is put into is $102,850-$388,600. I for a
fact believe I meet all the requirements and am knowledgeable enough to run a shop of my own.
III. PROPOSED MARKETING/PROMOTION PLAN
A. Proposed product or service: details of product(s) or service(s) to be offered; potential
suppliers or manufacturing plans
Baskin Robbins will be operated to fulfill its mission of providing families around the neighborhood with
more fun and flavors. As far as the products go, just like in any other Baskin Robbins shop, in my own there
will be the same items sold since it will resemble other Baskin Robbins shops. These products include the
following demonstrated in the chart below.
Products:
Flavors
Sundaes
Cakes
Cones
Parfaits
Example
Chocolate
Banana Split
Oreo
Waffle
Caramel
Banana
Example
Mint Chip
Snicker
Vanilla
Sugar
Reese’s
B. Proposed pricing policy: costs, markups, relationship to competitors
Once the shop is opened, I will be assisted with setting the right pricings from the corporation in order to
split it profitably well so that both me as the operator and the company can benefit well from it. The
pressure in setting the right price from competitors is low because there are not many options around the
shop location that could possibly affect that of my own Baskin Robbins shop.
C. Personal promotion: non-media sales plan, staffing and merchandising appeal
In order to ensure that my shop will succeed I must have a strong promotional program to grab the
attention of my target market and also maintain their interest. My employees must maintain their work area
clean at all times as well as the tables and glass so that the customers can enjoy their time at the shop and
keep coming in. Occasionally, during the summer time employees are to stand outside and give samples of
products to anyone strolling by so that they can taste the deliciousness and come back for the real deal. We
will also be focusing on offering coupons online to local online shoppers. Moreover, since Baskin Robbins is
all about community we will try to involve ourselves more with the surrounding community like elementary,
middle, and high schools as well as libraries and local stores.
D. Non-personal promotion: media, basic appeal and initial promotion plan
● Create Facebook, Instagram, and Twitter pages since they are very popular and commonly used
among the target market. They will find updates, news, and all other kinds of information about my
Baskin Robbins location
● Business Cards
● Create a personal website given by corporate which will have information of my location, hours and
available flavors
● Customers that register to our website will be asked to throw in their birth date so they can receive a
free scoop on their special day
● Customers who walk into the store during a rainy or cold winter day will receive 10% discount off
their purchase
● 31% off on the 31st of every month
E. Place: channel of distribution from manufacturer or service provided to consumer
Our channel of distribution will mirror that of current Baskin Robbins stores. The proposed location will be
attracting more customers because of its localized in the city square. However, Baskin Robbins has
minimized the number of intermediaries in their distribution channel meaning that the only way to buy
Baskin Robbins products is from their stores. All necessary products will be delivered in favor of Dunkin
Brands.
IV. PROPOSED FINANCING PLAN
A. Projected income/cash flow statement: projected budget describing income and expenditures
for the first year
Indicated below are calculated revenues and expenses of Baskin Robbins first fiscal year.
Sales
Year 1
592,000
COGS
Ice cream Products
Initial Franchise Fee
-112,276
- 25,000
Total COGS: - 137,276
Gross Profit: 103,659
Overhead Costs
Rent
-5,217
Wages
-23,042
Real estate development
-10,000
Equipment
-30,000
Electronic cash register/ retail technology
system
-9,500
Opening Inventory
-5,000
Miscellaneous
-12,000
Licenses, permits, fees and deposits
-2,000
Uniforms
-400
Insurance
-3,500
Marketing start-up fee
-3,000
Additional funds for first three months of
operation
-0.00
Total Expenses:
Net Income:
103,659
33,617
B. Projected three-year plan: describe planned growth, including financial resources and needs
Indicated below is a table that shows the estimated planned growth for the first three years
Sales
Year 1
Year 2
Year 3
592,000
588,800
588,320
COGS
Year 1
Year 2
Year 3
Ice cream products
-112,276
-112,276.15
-112,276.3
Initial Franchise Fee
-25,000
-0.00
-0.00
137,276
112,276.15
112,276.3
Year 1
Year 2
Year 3
Rent
-5,217
-5,217.15
-5,217.3
Wages
-23,042
-23,042.15
-23,042.3
Real estate
-10,000
-10,000.15
-10,000.3
Equipment
-30,000
-30,000.15
-30,000.3
Electronic Cash Register -9,500
-9,500.15
-9,500.3
Opening Inventory
-5,000
-5,000.15
-5,000.3
Miscellaneous
-12,000
-12,000.15
-12,000.3
Licenses, permits, fees,
and deposits
-2,000
-2,000.15
-2,000.3
Uniforms
-400
-400.15
-400.3
Insurance
-3,500
-3,500.15
-3,500.3
Marketing Start up fee
-3,000
-0.00
-0.00
Additional Funds
-0.00
-0.00
-0.00
103,659
100,660.5
100,662
33,617
-11,615.65
-11,614.3
Total:
Overhead Costs
Total Expenses:
Net income:
C. Capital and repayment plan: earnings, short-term and/or long-term borrowing, long-term
equity, plan to repay borrowed funds or provide return on investment to equity funds
I plan to have a short-term borrowing/repayment plan of at least five years. I am making a personal
investment of $40,000 and borrowing $300,000 to start up. Growth revenue is generated through promotions.
Our sales growth is projected at 5% for years two and three, as our location becomes more well known to
customers and efforts established to target our main audience. According to Baskin Robbins corporate
website the start up cost is between $102,850-$388,600 that must be paid to corporate for the initial franchise
fee of $25,000. Costs for selected items are included as well and start up loans will help pay the monthly fee
for Baskin Robbins gross sales.
V. BIBLIOGRAPHY
❖
Information
●
http://en.wikipedia.org/wiki/Baskin-Robbins
●
https://www.baskinrobbins.com/content/baskinrobbins/en/funfacts.html
●
https://www.baskinrobbins.com/content/baskinrobbins/en/faqs.html
●
https://www.baskinrobbins.com/content/baskinrobbins//en/aboutus/franchiseopportunities/brandpow
er.html
●
http://summercourse09groupthree.blogspot.com/
●
http://www.entrepreneur.com/franchises/baskinrobbins/282121-0.html
●
http://www.loopnet.com/Listing/18626619/501-14th-Street-Oakland-CA/
●
http://www.slideshare.net/itzraaje/baskin-robbinsa-brand-analysis?next_slideshow=1
Pictures:
https://twitter.com/baskinrobbins