Dippin Dots Case Essay

3868 Words Nov 12th, 2015 16 Pages
Teaching Notes – Dippin’ Dots Ice Cream, as of October, 2004

Case Uses & Objectives

This case can be used to augment discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13).

The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the
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Only a short while ago, the frozen dairy industry was occupied by family-owned businesses like Dippin’ Dots, full-line dairies, and a couple of big international companies that focused on only one sales region. Recent years have been marked by an increase in the production and sale of frozen desserts. Despite higher ingredient costs, manufacturers are continually churning out new products ranging from super-premium selections to good-for-you varieties to co-branded packages and novelties. Most novelty ice creams can be found grouped together in a supermarket freezer case, small freezers in convenient stores, and in carts/kiosks/trucks at popular summer time events. Recently ice cream makers have been touched by consolidation trends affecting the overall food and beverage industry.

Dippin’Dots founder Curt Jones hit one plateau in the late 1990s and developed a franchising system to try to reach the next level. By the end of 2000, franchise agreements were providing a cash flow, and Dippin’ Dots Franchising, Inc. was on its way to reaching the number 4 ranking in Entrepreneur magazine’s 2004 list of Top 50 New Franchise Companies. Growing at a rate of 10-15% annually, by 2004 Dippin’ Dots was now also available in 800 western region McDonald’s stores. Targeting their core demographic of 8-18 year olds, in 2002 Dippin’ Dots started running print ads in Seventeen and Nickelodeon magazines, getting product placements in TV and movie scenes, and soliciting

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