Harvard Case - Pop Shoppe (A)
"Pop Shoppe (A)" Harvard business case study is written by Matthew Thomson, Kendra Hart. It deals with the challenges in the field of Marketing. The case study is 11 page(s) long and it was first published on : Jul 25, 2011
At Fern Fort University, we recommend that Pop Shoppe implement a comprehensive growth strategy focused on expanding its reach and brand awareness through strategic marketing initiatives, targeted product development, and a robust digital presence. This strategy will leverage Pop Shoppe's existing strengths in product quality and customer experience while addressing the challenges posed by a competitive market and evolving consumer preferences.
2. Background
Pop Shoppe, a family-owned business, has established a strong reputation for its high-quality, handcrafted ice cream. However, the company faces increasing competition from larger ice cream chains and struggles to expand beyond its local market. The case study focuses on the challenges faced by Pop Shoppe in navigating a competitive landscape and exploring growth opportunities. The main protagonists are the owners, John and Mary, who are seeking guidance on how to grow their business while maintaining their core values and brand identity.
3. Analysis of the Case Study
We will analyze Pop Shoppe's situation using a combination of frameworks:
a) SWOT Analysis:
- Strengths:
- High-quality, handcrafted ice cream.
- Strong brand reputation and loyal customer base.
- Experienced and passionate owners.
- Unique product offerings and flavors.
- Weaknesses:
- Limited geographic reach.
- Lack of a strong digital presence.
- Limited marketing budget.
- Difficulty in competing with larger chains.
- Opportunities:
- Expanding into new markets through franchising or online sales.
- Leveraging social media and digital marketing to increase brand awareness.
- Developing new product lines and flavors to cater to evolving consumer preferences.
- Partnering with local businesses and events to increase visibility.
- Threats:
- Increasing competition from larger ice cream chains.
- Rising costs of ingredients and labor.
- Changing consumer tastes and preferences.
- Economic downturns affecting consumer spending.
b) Market Segmentation, Targeting, and Positioning (STP):
- Segmentation: Pop Shoppe can segment its target market based on demographics (age, income, location), psychographics (lifestyle, values), and behavioral factors (purchase frequency, brand loyalty).
- Targeting: The primary target market should be families, young adults, and individuals seeking high-quality, artisanal ice cream experiences.
- Positioning: Pop Shoppe should position itself as a premium ice cream brand offering unique flavors and a focus on quality ingredients and craftsmanship. This positioning should be communicated through its branding, marketing, and customer experience.
c) Porter's Five Forces:
- Threat of New Entrants: High, due to the relatively low barriers to entry in the ice cream industry.
- Bargaining Power of Buyers: Moderate, as consumers have many choices but may be willing to pay a premium for high-quality ice cream.
- Bargaining Power of Suppliers: Moderate, as Pop Shoppe relies on a variety of suppliers for ingredients.
- Threat of Substitute Products: High, as consumers can choose from various frozen desserts and other treats.
- Competitive Rivalry: High, due to the presence of established chains and local competitors.
d) Product Lifecycle Management:
Pop Shoppe's product lifecycle is likely in the maturity stage, with a loyal customer base but facing challenges in maintaining growth. The company needs to implement strategies to revitalize its product portfolio and attract new customers.
4. Recommendations
To address Pop Shoppe's challenges and capitalize on its opportunities, we recommend the following actions:
a) Marketing Strategy:
- Develop a comprehensive marketing plan: This plan should outline target markets, marketing objectives, strategies, and budget allocation.
- Focus on digital marketing: Invest in a strong online presence through a website, social media platforms, and targeted advertising campaigns. Utilize SEO and SEM to improve online visibility.
- Leverage social media: Create engaging content, run contests and promotions, and build a strong community around the brand.
- Partner with influencers: Collaborate with local food bloggers and social media personalities to reach a wider audience.
- Develop a loyalty program: Reward repeat customers with discounts, exclusive offers, and personalized experiences.
- Explore new marketing channels: Consider partnerships with local businesses, events, and festivals to increase brand awareness and drive sales.
b) Product Development:
- Introduce new product lines: Explore seasonal flavors, specialty ice cream sandwiches, and other innovative offerings to attract new customers and expand the product portfolio.
- Develop unique flavor combinations: Emphasize the artisanal nature of the ice cream by offering unique flavor combinations and ingredients that cater to evolving consumer preferences.
- Consider catering and wholesale opportunities: Expand the business by offering catering services for events and partnerships with local businesses to sell Pop Shoppe's ice cream wholesale.
c) Branding and Positioning:
- Refine brand identity: Ensure the brand message and visual identity are consistent across all marketing channels and customer touchpoints.
- Emphasize the handcrafted experience: Communicate the unique value proposition of Pop Shoppe's ice cream by highlighting the quality ingredients, artisanal production process, and passion behind the brand.
- Create a memorable brand experience: Focus on providing a positive and memorable customer experience through friendly service, a welcoming atmosphere, and unique in-store experiences.
d) Expansion Strategy:
- Explore franchising opportunities: Consider franchising as a way to expand geographically while maintaining brand control and consistency.
- Develop an online sales platform: Offer online ordering and delivery options to reach a wider audience and cater to convenience-seeking consumers.
- Consider strategic partnerships: Partner with other local businesses or food retailers to increase distribution and brand visibility.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Pop Shoppe's strengths, weaknesses, opportunities, and threats, as well as a consideration of the competitive landscape and evolving consumer preferences. The recommendations are aligned with Pop Shoppe's core values of quality, craftsmanship, and customer satisfaction. They also address the company's need to expand its reach, increase brand awareness, and generate revenue growth.
The recommendations are likely to be successful if Pop Shoppe can:
- Secure adequate funding: Invest in marketing, product development, and expansion initiatives.
- Build a strong team: Recruit and retain talented individuals with expertise in marketing, operations, and finance.
- Maintain a focus on quality: Continue to produce high-quality ice cream that meets the expectations of discerning customers.
- Adapt to changing market conditions: Stay agile and responsive to evolving consumer preferences and competitive threats.
6. Conclusion
By implementing these recommendations, Pop Shoppe can achieve sustainable growth while maintaining its brand identity and core values. The company has the potential to become a leading player in the artisanal ice cream market by leveraging its unique product offerings, strong customer relationships, and a well-defined growth strategy.
7. Discussion
Other alternatives not selected include:
- Focusing solely on local growth: This option would limit Pop Shoppe's potential for expansion and expose the company to greater risk from local competition.
- Merging with a larger chain: This option could provide access to resources and distribution channels but may compromise Pop Shoppe's brand identity and control.
The key risks associated with the recommended strategy include:
- Insufficient funding: The implementation of the strategy requires significant financial investment.
- Competition: The ice cream industry is highly competitive, and Pop Shoppe must be prepared to compete effectively.
- Changing consumer preferences: Consumer tastes and preferences are constantly evolving, and Pop Shoppe must adapt its product offerings and marketing strategies accordingly.
8. Next Steps
To implement the recommended strategy, Pop Shoppe should take the following steps:
- Develop a detailed implementation plan: This plan should outline specific tasks, timelines, and resource allocation for each initiative.
- Secure funding: Explore options for securing funding through loans, investments, or other sources.
- Build a strong team: Recruit and train individuals with expertise in marketing, operations, and digital strategy.
- Monitor progress and make adjustments: Regularly track progress against key performance indicators and make necessary adjustments to the strategy as needed.
By taking these steps, Pop Shoppe can position itself for sustainable growth and success in the competitive ice cream market.
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Case Description
At one time, the Pop Shoppe was a leading player in the Canadian soda pop market, however, changing market conditions and corporate mismanagement drove the company into bankruptcy in the early 1980s. In 2003, an entrepreneur purchased the rights to the brand, and was considering reintroducing it into the market. The entrepreneur had a hunch that many Canadians would be as fond of the Pop Shoppe as he was, and excited to see it back on the market, however, he had little experience in the beverage industry and consumer habits had changed in the many years since the brand had died. Looking at the market, the entrepreneur wondered if there was an attractive space for Pop Shoppe. His gut instincts told him that older consumers would embrace the reintroduction of the old brand, but it was difficult to know if they were a sustainable market segment. Would older consumers be able to turn their children onto the brand? With little experience and limited funds, he knew that if he proceeded with the idea, he could not afford to make many mistakes. If he chose to reintroduce the Pop Shoppe, he questioned how true he should stay to the original concept. Could a new Pop Shoppe compete in the current market? Despite the entrepreneur's love for the old brand, he wondered how he could raise enough consumer and retailer interest to make the brand succeed.
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