Marble Slab Creamery

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Marble Slab Creamery: A Grand Occasion Marble Slab Creamery is a premium ice cream retail chain of which Penny Thomas has recently acquired ownership rights within the Greater Toronto Area (GTA). She is faced with a two-week deadline to create a marketing plan aimed to generate revenues of $400,000 within the first year of operation. She also hopes to open a catering segment to her business as an additional revenue stream. After considerable analysis, it is recommended for Penny to cater towards families (primarily with young children) in the Thornhill, Vaughan area along with the provision of the catering service. Oakville and Vaughan are the primary locations under analysis (Exhibit 1). While the market in Oakville is promising given its higher median incomes, Vaughan is a more viable location given its higher population density. This ultimately creates a more promising environment for the catering business. In addition, the amount of young adults, who will be Marble Slab’s secondary target market, is more than doubled those located in Oakville. Given that ice cream is seen as an affordable treat as opposed to a luxury good, Oakville’s higher median income is an irrelevant fact. When analyzing which market segment to target (Exhibit 2), families have been found to have to the greatest potential to succumb to promotional efforts as they enjoy family outings and are most likely to participate in the catering services provided. Marble Slab Creamery gives complete price flexibility to its franchisees if they desire to implement a catering segment. As shown in Exhibit 3(a), Penny should employ this tactic as an additional revenue stream as the costs associated with catering are relatively low in comparison to its revenue potential. With the expectation of 52 events per year, it will only take 56 ice cream sales per event to breakeven; not a difficult task for such

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