Good evening everyone, so my case study is all about Dippin’ Dots: Is the

Future Frozen. The case analysis of Dippin' Dots utilizes the tool such as
contingency analysis to research Dippin' Dots position. These tool have also been
used to analyze its potential for the expansion of its franchises. From its
inception, Dippin' Dots has prided itself on being "The Future of Ice Cream", but
in recent years the company and the industry as a whole has been relatively flat.
This case will review the issues as well as offer alternative solutions that might
resolve some of the issues and issue recommendations that the company should
consider.
 The case study "Dippin' Dots: Is the Future Frozen?" delves into the story
of Dippin' Dots, a company renowned for its unique approach to ice cream.
Founded in 1988 by microbiologist Curt Jones, Dippin' Dots differentiated itself
from traditional ice cream by flash-freezing small beads of ice cream mix using
liquid nitrogen. This process created tiny, flavorful spheres that offered a novel
and enjoyable eating experience. Dippin' Dots quickly gained popularity,
particularly in amusement parks, malls, and other entertainment venues, where
its futuristic appearance and wide array of flavors appealed to customers seeking
a fun treat. However, despite its initial success, Dippin' Dots faced numerous
challenges that hindered its long-term viability. These challenges included high
production costs associated with the unique freezing process, limited
distribution channels, and competition from traditional ice cream brands.
Additionally, the company's franchise model encountered difficulties in
attracting and retaining franchisees, further impeding its growth. As a result,
Dippin' Dots experienced financial setbacks, including bankruptcy filings in
2011 and 2012. Despite these challenges, the company continued to innovate
and adapt its business model, introducing new marketing strategies, product
offerings, and distribution channels to revitalize its brand and regain market
share.
 Given the case study on Dippin' Dots Ice cream a few problems have been
identified. Firstly the company is faced with an issue of its previous customers
becoming uninterested in the product. Secondly Dippin' Dots has seen a
significant reduction in franchising numbers since the year 2000. Finally the
company is no longer the only company who offers flash-frozen ice cream. All of
these factors have contributed to the recent stagnant growth of Dippin' Dots.
Through extensive research several recommendations will be made in this
analysis to address the previously mentioned problems that Dippin' Dots faced.
 Dippin Dots is facing an issue of whether or not they should continue to
expand both its franchises in the midst of a flattened market or should it
continue to reduce its number of franchises that it allows to operate. Dipping
Dots can also expand into different markets with the most popular being the in-
home ice cream market which it has stayed away from in years past do to the
shelf life of the product. The contingency analysis below will analyze the different
market conditions scenarios and the possible consequences and outcomes that
the company might face. Market Condition Scenarios /Possible Consequences,
these are; Market Continues to flatten out, Market starts to grow/ Buyer
spending increases, Cut back on number of franchises globally. Cutting back the
number of franchises will cut down some of the overhead expenses for the
company if the market continues its trend of flattening out. This is the more
likely of the two scenarios. If the company continues to cut back on the number
of franchises that it has globally and the markets grow then it might not be able
to handle the demand for that product which will give competition an advantage
if they are better equipped. This is the less likely of the two scenarios. Keep
number of franchises where they are. This strategy will be more costly than the
option to cut back the number of franchises like it has been doing over the past
several years. If the market starts to grow then this will be a profitable option.
While this decision is profitable the company must be cautious to not over
expand in case the market shrinks again. Continue to expand in to different
markets such as the in-home ice cream market. If the market continues to react
the way it is currently, this would result in a failure of entering a new target
market. This new target market coupled with a growing market could prove to
be one of the most profitable options for Dippin' Dots.

These are the alternative solutions that will help Dippin’ Dots.

1. Utilize the innovation that brought you your initial success

Dippin' Dots must get back to doing some innovative things that brought
them their success from the company's inception. Curt Jones and the rest of his
executive staff must make their products stand out at a time in which the market
for frozen dairy is stagnant. Its recent efforts have shown that they are taking a
step in that direction. In 2009 Jones mentioned that the company was going to
try and take its innovative lead business a step further. Keeping the same flash-
frozen technique, Jones has gone on record to say that he will be offering coffee
dots. All you would need to do is add hot water and the consumer would have
freshly brewed coffee. He has affectionately given Coffee Dots the same slogan as
its ice cream counterparts by calling it "The Coffee of the Future" (Horovitz, 2009).
Dippin' Dots needs to pump money into its Research and development team to
find the next big things that will help their company if not the whole industry
out of the slump that it currently faces. Dipping Dots has made its money being
ahead of the curve and without added funding to its R&D other competitors may
take that competitive advantage.

2. Get rid of targeted market

Target marketing in a business strategy is very risky. Targeting a certain

market may be risky since it can hamper the organizations ability to quickly
respond to changes in the market's condition and needs (Dess, Lumpkin, &
Eisner, 2009, p.252). With target marketing a narrow segment can be accessed
less expensively through outlets such as the internet. Dippin' Dots was targeting
the youth which seemed like a good idea at first. The problem with targeting the
youth is that they become older and then they aren't targeted again. As seen in
the case the adults who still purchase the product are looking for something
different from the brand. One customer went on record as saying "How can this
stuff keep continuing to call itself the 'ice cream of the future'? Well the future is
now..." (Dess, Lumpkin, & Eisner, 2010, p.c209).

3. Integrate more health conscious items to the company

Frozen dairy products aren't considered to be the healthiest of industries.

By definition ice cream must have at least 10 percent butterfat in it before the
additions of its bulky ingredients (Dess, Lumpkin, & Eisner, 2010, p.c205). In
recent years there has been a trend towards a more healthy option for after
dinner treats. Companies like Nestle and Haagen-Dazs have been offering a low-
fat option since 2004. Coupled with the fact that the company needs to be more
innovative, it must also become more health-conscious. With a number of
consumers going to healthy alternatives such as frozen yogurt and smoothies,
Dippin' Dots must do something to ensure that they are not losing their
consumer base. Increasing product differentiation will also allow them to reach
out to a broader market. They must be careful not to go away from the product
that made them so successful, but reach out to different markets such as the
health-friendly market. Doing something as simple as offering a no-sugar
product will show its diabetic consumers, who might not been able to eat the
normal product, that they are concerned about them as well.

4. Take no action

Doing nothing is always an option. This option poses the most risk for
Dippin' Dots. If the market continues to flatten out like it currently is, then
Dippin' Dots and the rest of the market could find itself in more trouble than
they currently are. Many would agree that this reactive stance might not be the
best stance in regards to growth, if the market continues in the slum that it is
in Dippin' Dots could potentially save itself a lot of money in the long run. This
alternative may also allow for competition to move ahead if Dippin' Dots sits back
and waits for the market to improve.

It is recommended that Dippin' Dots should continue its expansion efforts

and broaden its target market. Based off the above analysis there are a few steps
in which Dippin' Dots can approach the current problems faced with the
following steps: Focus on creating a non- seasonal product that you can market
equally year round. (Coffee Dots or Smoking Joes' a good start). Keep innovative
breakthroughs secret and ensure that all patents are filed correctly. This will
hinder competitors from stealing ideas. Put the advertising fund to good use.
Continue to build brand equity through the use of celebrities such as Shaq and
Oprah. Switch slogan. Ice Cream of the future isn't as promising as it initially
was. This approach will allow Dippin' Dots to continue to have a competitive
advantage with its innovative efforts through its Research & Development
departments. Currently Dippin' Dots has brand recognition advantages over its
competition but without working on some of its weaknesses one of the other
competitors might close in on the market share.

The frozen dairy industry and Dippin' Dots has faced a reasonably flat
market over the past decade. This has made the company reduce its number of
franchises in every year since 2005. Dippin' Dots has also fluctuated on its
position on Entrepreneur's Franchise 500 lists. Through careful analysis of the
company and the industry I have illustrated a few alternative solutions for the
company that might stimulate potential growth as well as made some
recommendations that Dippin' Dots should strongly consider. Since Dippin' Dots
is a privately traded company, its financial records aren't made public. These
financial records could have given more insight to the financial health of the
company and could have yielded some other recommendations. One thing that
became completely evident through this case analysis, Dippin' Dots must
continue to build upon its brand equity and sustain its innovative advantages
over its competitors if it wants to stay relevant in its industry.

These are the references of my case study.

That would be all, thank you.

 CASE 10: DIPPIN’ DOTS: IS THE FUTURE FROZEN?
CASE STUDY

IN PARTIAL FULFILLMENT IN ACCOUNTANCY, ST. MICHAEL’S COLLEGE

ILIGAN CITY

Presented by:

NAJMA YASIN SALIC

Presented to:

PROF. ANNA MITOS DIZON

Instructor

May 4, 2024
 CASE 15: CAMPBELL: HOW TO KEEP THE SOUP SIMMERING*
CASE STUDY

IN PARTIAL FULFILLMENT IN ACCOUNTANCY, ST. MICHAEL’S COLLEGE

ILIGAN CITY

Presented by:

NAJMA YASIN SALIC

Presented to:

PROF. ANNA MITOS DIZON

Instructor

May 4, 2024
 Good evening everyone, so my case study is all about case number 15
which is Campbell: How to keep the soup simmering*.

The case study "Campbell: How to Keep the Soup Simmering" delves into
the challenges facing Campbell Soup Company, a renowned player in the food
industry. Founded in 1869, Campbell Soup has long been associated with its
iconic canned soups and other food products, establishing itself as a household
name. In recent years, however, Campbell Soup has encountered several hurdles
that have tested its resilience and necessitated strategic adaptation. The case
study examines key issues such as shifting consumer preferences, operational
inefficiencies, intensified competition, and the need for portfolio optimization.

In addition, activist shareholder Dan Loeb exerted pressure on Campbell

Soup Company by acquiring a significant stake in the company and advocating
for changes to enhance shareholder value. Through his hedge fund Third Point
LLC, Loeb criticized Campbell's management, governance practices, and
financial performance. He proposed initiatives such as board refreshment,
portfolio optimization, cost reductions, and increased focus on innovation and
marketing. While not all of Loeb's proposals were fully adopted, his activism
prompted Campbell Soup to engage in discussions with shareholders, leading to
strategic changes aimed at revitalizing the company's performance and ensuring
its long-term competitiveness in the food industry.
 The case study "Campbell: How to Keep the Soup Simmering" discusses
several key issues that Campbell Soup Company has faced in recent years:

1. Shifting Consumer Preferences: One of the primary challenges facing

Campbell Soup is the changing preferences of consumers. There is a growing
demand for healthier, fresher, and more convenient food options. This shift has
led to a decline in sales of some of Campbell's core products, such as canned
soups. To address this issue, Campbell needs to innovate its product offerings,
develop healthier options, and adapt its marketing strategies to resonate with
evolving consumer trends.

2. Intensifying Competition: Campbell Soup faces fierce competition from both

traditional rivals and emerging, innovative brands in the food industry. Private
label and store-owned brands further intensify the competitive landscape. To
maintain its market share and profitability, Campbell must differentiate itself
through product innovation, marketing, and branding initiatives. It needs to
continuously monitor competitors and adapt its strategies to stay ahead in the
market.
3. Performance and Financial Challenges: Campbell Soup has encountered
performance and financial challenges in recent years. These challenges may
include stagnant or declining revenue growth, declining profitability, or
inefficient use of resources. Addressing these challenges requires Campbell to
implement cost-saving measures, optimize its operations, and focus on revenue-
generating initiatives. Strategic investments in growth areas and divestitures of
underperforming assets may also be necessary to improve financial performance.

4. Leadership and Governance Issues: Effective leadership and governance are

crucial for Campbell Soup to navigate challenges and drive growth. Leadership
issues may include a lack of strategic vision, ineffective decision-making
processes, or a disconnect between management and shareholders. Governance
issues may involve concerns about transparency, accountability, or conflicts of
interest within the board of directors. Campbell needs strong leadership and
governance structures in place to make timely and informed decisions that align
with the company's long-term objectives and shareholder interests.

5. Shareholder Activism: Shareholder activism, exemplified by figures like Dan

Loeb, can impact Campbell Soup's strategic direction and decision-making
process. Activist shareholders may push for changes in corporate strategy, board
composition, capital allocation, or other initiatives aimed at enhancing
shareholder value. Campbell needs to engage with shareholders constructively,
address their concerns, and consider their perspectives while making strategic
decisions. Effective communication and collaboration with shareholders can
help Campbell navigate shareholder activism and maintain shareholder trust
and confidence.

In summary, addressing these key issues requires Campbell Soup to be

proactive, innovative, and adaptable in its approach. By understanding and
responding to shifting consumer preferences, intensifying competition,
performance and financial challenges, leadership and governance issues, and
shareholder activism, Campbell can position itself for long-term success in the
dynamic food industry.

Some recommendations, these are;

1. Diversify Product Offerings: Campbell Soup should explore diversifying its

product offerings to meet evolving consumer preferences. This could involve
introducing new flavors, variants, or product lines that cater to different dietary
preferences, such as organic, gluten-free, or plant-based options. By expanding
its range of offerings, Campbell can appeal to a broader audience and capture
new market segments.

2. Invest in Innovation: Investing in innovation is crucial for Campbell Soup to

stay competitive in the rapidly changing food industry. This could include
developing new manufacturing techniques, packaging innovations, or product
formulations that enhance taste, texture, and nutritional value. By continuously
innovating, Campbell can differentiate its products from competitors and
maintain consumer interest.

3. Enhance Brand Transparency: Increasing brand transparency is essential for

building consumer trust and loyalty. Campbell should provide clear and
accurate information about its products, including ingredient sourcing,
nutritional content, and manufacturing processes. By being transparent about
its practices, Campbell can reassure consumers of the quality and integrity of its
products.

4. Optimize Operations: Optimizing operations is critical for improving efficiency

and reducing costs. Campbell should streamline its supply chain,
manufacturing processes, and distribution networks to minimize waste and
maximize productivity. This could involve implementing lean manufacturing
principles, investing in automation technologies, or optimizing inventory
management systems.

5. Strengthen Marketing and Branding: Strengthening marketing and branding

efforts is essential for enhancing brand awareness and driving consumer
engagement. Campbell should develop targeted marketing campaigns that
resonate with its target audience and communicate the unique value proposition
of its products. This could include leveraging social media, influencer
partnerships, or experiential marketing initiatives to connect with consumers on
a deeper level.

6. Embrace Sustainability: Embracing sustainability practices is becoming

increasingly important for food companies like Campbell. This could involve
sourcing ingredients from sustainable and ethical suppliers, reducing packaging
waste, or implementing energy-efficient manufacturing processes. By prioritizing
sustainability, Campbell can demonstrate its commitment to environmental
responsibility and appeal to socially-conscious consumers.

7. Engage with Shareholders: Engaging with shareholders, including activist

investors like Dan Loeb, is essential for maintaining investor confidence and
support. Campbell should foster open communication and transparency with
shareholders, addressing their concerns and perspectives on strategic initiatives.
This could involve holding regular shareholder meetings, providing updates on
company performance, and soliciting feedback on key decisions.
By implementing these recommendations, Campbell Soup Company can address
the challenges outlined in the case study and position itself for long-term success
in the competitive food industry landscape.

In conclusion, the case study "Campbell: How to Keep the Soup

Simmering" underscores the importance of Campbell Soup Company's proactive
response to evolving consumer preferences, intensified competition, and
operational challenges. By diversifying product offerings, investing in innovation,
enhancing brand transparency, optimizing operations, and engaging with
shareholders, Campbell Soup can position itself for sustained growth and
competitiveness in the food industry. Through strategic initiatives and
collaboration with stakeholders, Campbell Soup aims to ensure its continued
relevance and success in meeting the dynamic demands of the market.
These are the references of my case study.

That would be all, thank you.