Dippin Dots Marketing Essay Case Study

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Dippin Dots Marketing Essay Case Study Introduction

SWOT analysis helps a company to identify the internal and external factors and strategize based on those factors. PESTLE analysis depicts macro-environmental features affecting the performance of a company.

Company Name

Dippin’ Dots

Type of Industry

Retail Industry

Headquarters

Paducah, Kentucky, USA

Sales/Revenue

300 Million US Dollars

Area Served

11 countries

Number of Stores

More than 400

Competition

Ben and Jerry’s, Breyers, Perry’s Ice Cream

USP

Experimenting with quick freeze yogurt bacteria, more than 30 in-house flavors like cotton candy, kettle corn and bar crunch

Target Group

Fun loving people including teenagers

Products

Ice Cream, Frozen Ice, Frozen Yogurt

Website

https://www.dippindots.com/home.html

Dippin Dots Marketing Essay SWOT Analysis

Strengths

  • Creating innovative product
  • Brand
  • Global advertisement
  • Venue of fun and entertainment

Weaknesses

  • Extremely expensive products
  • Locations of selling
  • Storage issues
  • Limited target marketing

Opportunities

  • Online E-Commerce

Threats

  • Varieties of ice cream
  • Rival companies like Blue Bell, Dairy Queen, Cold Stone Creamery

Analysis

A company can achieve success after being popular. Ice cream producing companies like Dippin Dots’ need to create unique products. Ice cream or other foods with innovation always attract people. Plenty of customer attraction leads to increasing sale, thus, resulting into high level of profit. According to the ideas of Kharel et al. (2018), continuous growth of popularity leads to achieve universal identity that helps a company to become a brand. Dippin’ Dots has its branches in 11 countries with more than 400 franchises all over the world. All these together enabled the brand to be in a competitive edge by acquiring trending technologies. The set up of the company also possesses the unique feature of providing fun and enjoyment to the young kids and teenagers.

As per the case study of Dippin’ Dots, extreme high price is the topmost weakness for Dippin’ Dots. Costly products affect the selling that makes an impact on the profit of the company (Abdel-Basset et al. 2018). Selling location of this retail industry affects its profit level. Ice creams produced by this company are required to be sold at the temperature of sub-zero degrees and therefore, creates storage issues. Inability of selling the products within two weeks makes them waste. Dippin’ Dot has a tendency to concentrate on young people like teenagers for selling ice cream. Thus, a certain percentage of buyers feel ignored that affects the growth of the business.

As per the case study of Dippin’ Dots, E-Commerce facility is able to spread the business of the company worldwide. As opined by Lemieux (2017), online business facilities like Amazon, Walmart, eBay gives the opportunities to receive plenty of orders and instant delivery of products resulting into high profit and positive feedbacks from the customers.

As per the case study of Dippin’ Dots, several varieties of ice cream of the competitors can reduce the buyers from this company. Availability of ice cream at cheap prices from outside markets can result in automatic distraction of customers (Gupta and Mishra, 2016). Introduction of new rival companies is another threat. As per the case study of Dippin’ Dots, the additional numbers of production, better qualities of the products, availability, time management of delivery can attract potential customers of other companies. Thus, the impact can reduce the percentage of net outcome. The company is required to reduce the price. They also have to keep maintenance of the high quality of products, variety, availability and time management.

Dippin Dots Marketing Essay PESTLE Analysis

Political

  • Unstable local political environment
  • Friendly trade relationship with developed countries

Economic

  • 4.1% GDP growth rate
  • 3.625% Mortgage rate

Social

  • Diversification of religions
  • 60.7% employment rate

Technological

  • Online business
  • Increased use of ICT

Legal

  • Securities Act 1933
  • Securities and Exchange Act 1934

Environmental

  • Increased regulation in fuel usage
  • Global warming

Analysis

A business of any company depends upon its current political scenario, economic stability, social situations, technological development, legitimacy, environmental surroundings. Unstable political structure can harm Dippin’ Dots directly or indirectly. An employee can lose job in times of recession or inflation. As per the case study of Dippin’ Dots, tax increasing can directly affect sale of products. According to the ideas of Fozer et al. (2017), the retail company is required to improve the quality of the ice cream. Improvement of quality leads to increase in selling. Hence, this retail sector can be able to pay the increasing amount of taxes, thus, resulting in the achievement of the desired amount of profitability. However, the friendly relationship and foreign trade policies with the developed countries is able to maintain a good economic structure that can lead to the continuation of profitable business.

USA has a GDP of 4.1%, depicting financial stability of the country. As per the case study of Dippin’ Dots, a businessman takes the risk of high investment after feeling secure on the stability of contemporary economic structure. High investment helps to flourish the business (Rastogi and Trivedi, 2016). The current mortgage rate of USA is 3.625%. The company cannot take loan as the mortgage rate is too low. As per the case study of Dippin’ Dots, several religious people coming from different countries results to the global advertisement of the company. Having high employment rate of 60.7% ensures financial stability. This stability increases the profit percentage of the company.

As per the case study of Dippin’ Dots, online business takes less time in order to connect with diversified customers. Increased use of ICT can provide information to all the departments together (Hasan, 2015). Any query related to the service, qualities of the ice cream can be able to solve instantly. Good coordination among the workers always leads to increasing work percentage. The Securities Act 1933 ensures the investors to get significant financial information. The Securities Exchange Act of 1934 ensures security on trade exchange resisting fraud. As per the case study of Dippin’ Dots, regulation in fuel usage leads to less shipping charge, thus, consumers are able to buy ice cream at a cheaper price. Increasing level of global warming creates difficulties for the delivery boys. They need to practice the task of delivering continuously. This can lead to reduce the difficulties of work level resulting into the benefit of the company.

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References

Abdel-Basset, M., Mohamed, M. and Smarandache, F., (2018). An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making. Symmetry, 10(4), p.116.

Fozer, D., Sziraky, F.Z., Racz, L., Nagy, T., Tarjani, A.J., Toth, A.J., Haaz, E., Benko, T. and Mizsey, P., (2017). Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives. Journal of cleaner production, 147, pp.75-85.

Gupta, G. and Mishra, R.P., (2016). A SWOT analysis of reliability centered maintenance framework. Journal of Quality in Maintenance Engineering, 22(2), pp.130-145.

Hasan, M.M., (2015). Marketing Analysis of Unilever. Total Quality Management, 11, p.13.

Kharel, G., Joshi, O., Miller, R. and Zou, C., (2018). Perceptions of Government and Research Expert Groups and Their Implications for Watershed Management in Oklahoma, USA. Environmental management, 62(6), pp.1048-1059.

Lemieux, V.L., (2017). Blockchain recordkeeping: a SWOT analysis. Information Management, 51(6), pp.20-27.

Rastogi, N.I.T.A.N.K. and Trivedi, M.K., (2016). PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET), 3(1), pp.384-388.

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