theodore wilm suzanna zak carson trobich stephanie veljacic

Theodore Wilm • Suzanna Zak • Carson Trobich • Stephanie Veljacic

Big Dipper

• Food Truck

• Ice Cream

• Milkshakes

• Operating Hours

• Convenient Location

Mission Statement“Our Big Dipper food truck strives to provide the highest quality ice cream and milk shakes to those in the greater Philadelphia area. In

responding to customer recommendations, we provide top quality customer service from the most personable employees while serving delicious ice cream and shakes. In addition, we

aim to create a friendly, exciting, and encouraging atmosphere for our employees

and customers to enjoy.”

SWOT Analysis

Target Market

Business Professional

s

Family Sporting Events

Villanova College

Students

Order Winners

• High Quality Ice Cream and Customer Service

• Quick, Easy and Convenient

• Location Depends on Demand

• Unique Flavors of Ice Cream

Perceptual Map

Operations Strategy

Front Office Approach• High Customer

Involvement• Moderate to high

resource flexibility• Low capital

intensity• Customer Service

is the backbone of the business

Operations Strategy: Products

Batch Process and Make to Order

• Truck will be stocked with batches of ice cream flavors and toppings for the day

• Ingredients are assembled through a make to order strategy

Inputs From Suppliers

Equipment, Utensils, and Tools

• Ice Cream Truck• 2 Freezers• 5 gallon tubs• Ice cream scoops• Milkshake blender• Sink• Spoons and Straws• Cleaning Supplies• Miscellaneous

Quality Approach

• Lean Systems to eliminate wasteful steps

Taste

ConsistencySize

Total Quality Management

High Quality Supplier

Low Cost to Ensure High

Value

Quality Circles

Quality Management

Quality Characteristics

Conformance to SpecificationsConsistency of High Quality Products, Fast Production Speed

ValueTop Quality Ingredients with Low Cost Operations

SupportHelpful, Cheerful Employees with Top Tier Customer Service and Energetic Attitudes

Psychological ImpressionCheery Positive Interactions with Employees and Friendly Environment Attachment to Brand Image

SuppliersIce CreamHaagen

Das

Dairy ProductsLancaster Farm

Fresh Cooperative

Basic IngredientsCedar Farms Corporation

Toppings and Mix-ins

JAS Wholesale

Ice Cream Serving Supplies

JAS Wholesale

Marketing MaterialsRidgway

Consulting

EquipmentJAS

Wholesale

Demand for Big Dipper• Seasonal Pattern

– Focus on the Fall and Spring semester for heavy traffic, lowest season is Winter

• Three target markets make up Main Line population– 20,000 college students in the immediate

area, creating main demand drive– 20% of area’s population is under 18, makes

up large part of customer – 33% of area’s population aged 18-34, young

professionals targeted during lunch hours• 70% of this segment, on average, eats out twice a

week

Expected Beginning Sales

Forecasting

• Causal methods– Regressions

• Seasonality – Naïve forecast– Simple moving averages–Weighted moving averages– Exponential smoothing–Multiplicative seasonal demand

• Trend Progression with Regression

Sales Forecast

January

February

March

April

May

June

July

August

September

October

November

December

0 5000 10000 15000 20000 25000 30000

12400

11200

13950

24000

24800

20400

21080

22940

24000

15500

13500

12400

Forecasted Sales

sales

Sales

Months

Annual Fixed CostsAnnual Fixed

Costs

Accounting and Legal Fees

2.10% 4539.57

Repairs and Maintenance

1.6% 3458.72

Advertising 1.7%

Salary Expense 19.7% 42585.49

Payroll Tax Expense .6% 1297.02

Supplies 1.1% 2377.87

Utilities 6.5% 14051.05

Insurance 1.3% 2810.21

Depreciation .4% 864.68

Fixed Start-Up Costs

Initial Ingredients 6,753

Accounting and Legal Fees 2,500

Permits and Licenses 2,000

Dipping & Storage Freezers 8,000

Under Counter Fridge 1,600

Hot Fudge Warmer 400

Glass and Metal Shake Tins 350

Shake Mixers 600

Parking and Maintenance 300

Kitchen Supplies 1,000

Cash Register 300

Marketing and Promotion 300

Advertising 500Paper goods, cleaning supplies, office supplies 750

Plumbing 1,500

Insurance Premium 400iPhone with Square reader 210

Variable Costs

• Cost of Goods Sold– $2.12 per milkshake– $0.47 per scoop of ice cream– $0.75 per ounce of toppings

• Fuel– Currently 3.75 per gallon of diesel– 10 miles per gallon – About 38 miles per day

Inputs

• Based on $216,170 of annual sales

• Milkshake– components: 3 scoops of ice cream,

one cup of milk, 2 tablespoons of syrup, half ounce of whipped cream, to-go cup, straw, napkin

• Scoop of ice cream – Ice cream from vendor, cups, cones,

napkins, plastic spoons, toppings

Pricing Decision

One Scoop…………$2.60Two Scoops………..$3.50Three Scoops………$3.99Milkshake…………..$4.00

Additional Toppings $.50 extra

Queues

• Organized

• Menu listed on truck

• Segregate duties

• Efficient technology

• Additional staff

Questions?