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Paper Topic:

Case Study Report “Dippin` Dots Ice Cream”

Case Study : Dippin ' Dots Ice Cream

Background

Dippin ' Dots Inc . is a privately owned company that produces an ice-cream snack called Dippin ' Dots which they call as the Ice Cream of the Future . Dippin ' Dots are small spheres of ice cream that are the produced by flash-freezing ice cream mix in liquid nitrogen . Aside from producing small beads of ice cream that are fun to eat , the flash freezing process also made Dippin ' Dots richer and fresher tasting than regular ice cream . Aside from Dippin ' dots , the company also manufactures other

snacks called Dot Delicacies (R ) that combine Dippin Dots with other snack foods such as cookies and cake

Dippin ' Dots was founded in 1987 by microbiologist and inventor of Dippin ' Dots - Curt Jones . Mr . Jones ' experience with cryogenics led him to experiment with flash freezing an old family recipe for ice cream creating small spheres of ice cream which became Dippin ' Dots . Curt Jones remains the current chairman of the company while its current President is Tom Leonard . According to The Encyclopedia of Company Histories , the company had estimated sales of 34M in 2002 and has 160 employees

Individual servings of Dippin ' Dots are sold at franchised outlets Dippin ' Dots franchises are located in shopping malls , amusement parks and the like . Dippin ' Dots franchises could be found in eleven countries in North and South America , Australia and Asia . Individual servings are also sold via specialized vending machines in various locations Starting 2002 , Dippin ' Dots became an offering in select McDonald 's branches in California . Today , Dippin ' Dots is the third largest ice-cream franchise in the USA , placing behind Baskin Robbins and Dairy Queen

Dippin ' Dots can 't be sold in retail outlets such as groceries and supermarkets to be consumed at home like regular ice cream because the product requires temperatures below -20 ?F which is below normal temperatures for standard freezers . Dippin ' Dots are currently produced in two facilities , one in Paducah Kentucky and another in South Korea that serves the Asia-Pacific markets

SWOT ANALYSIS

STRENGTHS - The primary strength of the company lies in the novelty of the product . Dippin ' Dots is a novel way of delivering ice cream that is unlike any other in the market . Additionally , the manufacturing process gives another value proposition by the way it produces richer and better tasting ice cream than the competition

WEAKNESSES - The weakness of the company is the fact that their ice cream needs specialized equipment to be stored . This greatly limits their distribution options as not every home or retail outlet has freezers that go down to -20 ?F . This weakness is apparent in the fact that Dippin ' Dots cannot be sold in tubs like regular ice cream , thus limiting the market penetration of the product as it is limited to be sold via franchised outlets

OPPORTUNITIES - One opportunity for Dippin ' Dots is to expand its franchising operations into the European Market . Currently , there are still no franchises operating in Europe . The overseas market has already proven itself...

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