Marble slab case
Marble Slab Creamery Case
Introduction:
Penny Thomas an MBA graduate acquired the ownership rights to Marble slab creamery franchise located in Ontario, Canada in 2008. NexCen owned the Marble slab brand but had a small role to play in day-to-day operations of the Canadian franchises. The marketing and operations support activities were handles by the Canadian Ice cream company Inc. Thomas paid $25,000 start-up fee for the franchise, a royalty fee of six percent of gross sales to Marble slab and two percent of gross sales towards a national shared advertising fund.
Marble top had a lot of direct and indirect competition and they distinguish themselves from other ice cream outlets with their high quality products, super-premium ingredients and their approach to toppings. The blending of ingredients and toppings is done by a marble employee on a marble granite slab. The Marble ice cream is also certified by Kosher and it remains fresh for 30 days as its made fresh on location.
Marketing challenges faced by Penny Thomas:
I think one of the challenges faced by Penny is defining her target customers as most of her business decisions depend on it. This will give her the ability to provide good service and help her build better relationships with potential customers. Her target customers are families with children under 15 years of age, young adults of ages 15 to 24, and women.
Does Thomas have the capabilities to make this franchise successful?
Penny Thomas has the capacity to break even and remain in the business but it will be quite hard for her to make the franchise successful. She has invested the $25,000 startup fee, and set aside $10,000 for marketing. To determine whether Thomas can make the franchise a success we need to know more the fixed costs like equipment and rent and variable costs. If she meets the revenue target, she would probably break to cover these expenses.
What are the strengths and weaknesses of Marble Slab’s competitors, and what is Marble
Introduction:
Penny Thomas an MBA graduate acquired the ownership rights to Marble slab creamery franchise located in Ontario, Canada in 2008. NexCen owned the Marble slab brand but had a small role to play in day-to-day operations of the Canadian franchises. The marketing and operations support activities were handles by the Canadian Ice cream company Inc. Thomas paid $25,000 start-up fee for the franchise, a royalty fee of six percent of gross sales to Marble slab and two percent of gross sales towards a national shared advertising fund.
Marble top had a lot of direct and indirect competition and they distinguish themselves from other ice cream outlets with their high quality products, super-premium ingredients and their approach to toppings. The blending of ingredients and toppings is done by a marble employee on a marble granite slab. The Marble ice cream is also certified by Kosher and it remains fresh for 30 days as its made fresh on location.
Marketing challenges faced by Penny Thomas:
I think one of the challenges faced by Penny is defining her target customers as most of her business decisions depend on it. This will give her the ability to provide good service and help her build better relationships with potential customers. Her target customers are families with children under 15 years of age, young adults of ages 15 to 24, and women.
Does Thomas have the capabilities to make this franchise successful?
Penny Thomas has the capacity to break even and remain in the business but it will be quite hard for her to make the franchise successful. She has invested the $25,000 startup fee, and set aside $10,000 for marketing. To determine whether Thomas can make the franchise a success we need to know more the fixed costs like equipment and rent and variable costs. If she meets the revenue target, she would probably break to cover these expenses.
What are the strengths and weaknesses of Marble Slab’s competitors, and what is Marble