Business Model and Strategic Plan Part I
Our business model is about a new line of ice creams being offered by Hard Rock Café, a global restaurant chain. This will require quite an innovative approach as restaurants like them; typically do not offer a line of ice creams and desserts. This poses a great challenge as well as an opportunity as they would be the first one to do that.
Mission
Therefore, they have kept their statement to be,
“To offer the most enjoyable experience, value for money, with local flavour across the world”
It clearly conveys their purpose and primary objective. This ways they are able to explain their raison d’etre to their clients and stakeholders alike.
Vision
In context of their new initiative of offering ice cream at their outlets globally, they have created a new vision statement as an instrument to guide them in that direction.
“We plan to entertain our guests across the world to spend happier and healthier times by providing them with freshest, tastiest, and exotic flavour of ice cream, with a touch of local flavour”
Value Proposition
Their value proposition plans to answer the question as to why their new line-up of ice cream shall be an attractive proposition to their clients. As a step in that direction, the figured out that most of their clients were adults with mature tastes. Therefore, they opted for stronger innovative flavours which will appeal to people of that age group. They also realize that most ice cream companies don’t offer such range on a global basis. Therefore, the value proposition statement is “ice & cream on the rocks”.
Business Model and Strategic Plan Part II
SWOT Analysis – Enternal Environment
market opportunity. A major purpose of the environmental scanning is to create a new market opportunity, which will allow them to perform profitably.
- Currently none of the main competitors offer ice cream in menu, and if they do, it is not a major emphasis from business standpoint.
- Will have a first mover advantage, and will bring in customers in bulk who just want to have ice cream.
market threat. This is a challenge posed by an unfavourable trend or development that would lead, in absence of defensive marketing action, to deterioration in sales or profit.
- Major threat is for dedicated ice cream vendors, who had credible research and placed them close to major restaurants like Hard Rock.
- Customers typically don’t come to restaurants like Hard Rock for ice cream, and our typical customers may or may not be interested in it.
- Trying bold and untested flavours might be risky.
- We will have to develop understanding of local culture and tastes.
SWOT analysis – Internal Environment
strenght. Here would be the list of their major strengths.
- They can take advantage of their strong clientele among the adults, to create ice cream of bold flavours. They may want to use mature flavours like that of liqueur etc.
- They can also take advantage of their global presence.
- They have ready audience in terms for clients who come for lunch and dinner.
weakness. Here would be the list of their major weaknesses.
- One their greatest weakness would be their lack of experience in ice cream market.
- They would also face competition from relatively inexpensive dedicated roadside ice cream vendors.
- They need to device flavours that are inspired from local culture and need to test them out.
Business Model and Strategic Plan Part II
Assumptions
Among their major assumptions is that people will be open to bold new tastes of ice cream. The assumption is not farfetched, but it is untested. There would be any existing market research on this topic. Further, they are presuming that a dessert or ice cream after heavy meal will necessarily be a good idea.
Next, they are presuming that their clients will choose to have ice cream after a typical meal. Further, they are presuming that they will get sufficient orders to break even. Also, from human resource standpoint, they are expecting to find cook and hospitality experts who are creative enough.
Risk and Change Management Plan
As a part of change or risk management plan, they plan to take a couple of important steps.
They plan to do extensive research about the bold flavours. Besides their internal consultants, they plan to rope in culinary experts from regional institutes. This will give them insight into local tastes and flavours. Further, they plan to do extensive market research with their existing client to gauge the response, and develop pricing strategy. Based on the results from the market research and culinary experts, they plan to create flavours to test them out before their formal launch.
Also, as a market penetration strategy, they plan to offer discount at the time of launch of new flavours. They will also send out discount coupons via mail to their long-time customers, and also hold surprise in-store promotions or trail of new flavours. They may even consider deals where the kids get a cup of ice cream free if the whole family turns up for dinner.
Communications Plan
As a part of their communications plan, they will begin with: communicating their intent internally; contact market research and culinary institute; communicate with stakeholders, particularly with global franchisees etc.
Once they have roped in all their internal and external stakeholders, they would go about communicating with the clients. One of the ways would be through in-store trials of the new ice cream flavours. Other methods would be mail-in coupon to dedicated clients. Further, they will communicate to all their clientele through media campaign. Considering the fact that most of their clients are technology savvy, they will give major emphasis on social media. This will also allow them to get valuable feedback from the clients.
