Professor Jock Sommese
Report by Rushil Gupta
Entrepreneurship: Cold Stone Creamery was founded by Donald and Susan Sutherland in an effort to make perfect ice cream that was neither soft serve nor hard packed. What makes them stand out compared to many other ice cream stores is that all their stores make ice cream fresh daily in the store. The company was founded in 1988 and had its first store in Tempe, Arizona (which is still operating), they also moved there headquarters to Scottsdale, Arizona from Tempe, Arizona in 1997. Their name Cold Stone Creamery comes from a granite stone used to mix add–on like cookies, m&m’s, sprinkles, chocolate… into ice cream. The store main ingredient is …show more content…
They are also targeting customers with face book pages and twitter pages for their individual stores to increase youth and social customers. They have around 1 million face book fans, have huge amount of view for their YouTube channel, and have thousands of twitter followers within one years of launching it. There new eGift Facebook feature helped there franchisees to increase sales by $10,000 dollars in just one and half month. Their cost of issuing coupons has decreased from $3.60 for print coupon redemption to $.39 for social media coupon redemption. Stores sales have increased about 1 to 1.2% with Facebook coupons. Number of people redeeming coupons has increased from .2% to 14%. The advertising fee for their franchisee is 3.00% of their total sales, and Cold Stone creamery also associates a percentage of money they get from franchisee (the 6% royalty fees) for national marketing campaigns.
Operations Management: This is exactly what sets Cold Stone creamery totally apart from most of their competition because there system allows all there franchisee to make ice cream fresh daily in there store for the best taste and quality for their customers. There inbound activity allows store owners to have three suppliers in contact and directly interfere with delivery of their products in term of quantity to what time they would like it