Cool Moose Creamery Harvard Case Solution & Analysis

Cool Moose Creamery

Comparison of Demand of Dairy Queen’s Products and Cool Moose Creamery Profitability

Before the opening of Cool Moose Creamery, Dairy Queen was the only ice cream provider in Alliston. Dairy Queen offers many products apart from soft serve ice cream.Moreover, Dairy Queen is famous for its soft serve ice-cream, which has become a brand symbol for Dairy Queen across North America.

It is expected that Dairy Queen is focusing on customer satisfaction and high quality products, therefore instead of charging high prices for a large single cone of Vanilla ice-cream there are long queues of customers at Dairy Queen, which shows that there is a significant potential for Perantinose to expand its operations nearby Alliston, Ontario.

Dairy Queen is offering only its famous Vanilla soft serve ice-cream while Perantinose is considering triple head machine, which would include Vanilla, Chocolate and Vanilla Chocolate swirl flavors.Therefore, it is expected that Cool Moose Creamery would also be able to attract significant number of customers as Perantinose has developed a significant brand recognition and pool of loyal customers.

Dairy Queen’s geographical location is also one of the key factors of its success as an umber of employees lived in that area due to the presence of two plants of Honda of Canada in that region. In addition to this,this region is also an attraction for tourists due to the presence of South Simcoe Railway’s historic steam train.

Moreover, Cool Moose Creamery has geographical advantage like Dairy Queen and it is expected that it would help Cool Moose Creamery by improving its profitability.In addition to this, soft serve ice cream is also common in leading fast food restaurants like McDonald and Dairy Queen and these restaurants are generating greater revenue in this segment.Therefore, Perantinose could expand its business by introducing soft serve ice-cream and it could generate more revenue.

Benefits of Adding Soft Serve Ice Cream

Cool Moose Creamery was founded in 2008 and it is open only for four months during summer. Currently, Cool Moose Creamery is offering 16 flavors of hard scooped ice-cream. It is expected that Perantinose is providing high quality products with greater satisfaction by valuing its customers, which helps its to create a significant pool of loyal customers and provide Cool Moose Creamery a significant brand recognition.

Perantinose is considering expanding its operations by adding soft serve ice cream in Cool Moose Creamery’s product line. Heavy high initial investment is required in order to provide this facility however;Perantinose’s bank showed willingness to provide finance by looking at his past record. It is expected that about every fast food restaurant is providing soft serve ice cream and this has become a brand symbol for Dairy Queen, which is also the largest fast food chain in North America.

Therefore, adding soft serve ice cream in the product lines of Cool Moose Creamery will help Perantinose by providing a greater number of customers. It is expected that soft serve ice cream is smoother than scooped ice cream, therefore adding this will strengthen Cool Moose Creamery’s brand recognition as it is expected that customers will prefer soft serve ice cream over scooped ice cream.

It is expected that the cost of producing soft serve ice-cream is lower than the cost of producing scooped ice-cream.Although it requires heavy initial investment and increased maintenance cost however, it is expected that benefits through installing this machine will justify its cost and time by providing greater revenue and a competitive advantage over other ice-cream manufacturers.......................

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