INTBUSTRADE: International Business and Trade
HOLY ANGEL UNIVERSITY
School of Business and Accountancy
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International Marketing Plan: Dairy Queen
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In Partial Fulfillment
Of the Requirement of the Course
INTBUSTRADE: International Business and Trade
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Presented to:
Julie Anne Mary C. Cruz
Presented by:
Leader
Tuazon, Irika Jane P.
Members
Balingit, Christian John D.
Banal, Mikaela Lois M.
Santos, Carlyn P.
Tigno, Camille R.
Date of Submission
September 14, 2020
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INTBUSTRADE: International Business and Trade
Acknowledgements
We would like to show our deepest and sincere gratitude to the following people.
First and foremost, To Almighty God for giving us the gift of wisdom and knowledge
to complete our International Marketing Plan successfully, without His help, we can’t
make it until the end. We are truly blessed for He gave people that helped us in
doing this International Marketing Plan. To our parents, who are always there to
support us. To our friends, who motivates us. To our professors, who are always
there to educate and guide us throughout our future endeavors. To our International
Business and Trade Professor, Ms. Julie Anne Mary C. Cruz for her continued
support and encouragement throughout the process of completing the International
Marketing Plan.
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INTBUSTRADE: International Business and Trade
Table of Contents
I. Acknowledgements 2
II. Company Profile 4
III. Company’s Products and Services 5
IV. Employees 5-6
V. Franchises 6
VI. Research and Development 7
VII. Technology 7
VIII. Domestic Market Position 7
IX. Competitors 8-9
X. SWOT Analysis 9-10
XI. Export 10-11
XII. Financial Resources 11
XIII. Company Marketing Strategy 11-12
XIV. The 4P’s: Product, Place, Price and Promotion 12-13
XV. Competitive Advantage 13-14
XVI. References 15
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INTBUSTRADE: International Business and Trade
1.1 Company Analysis
I. Company Profile
Created and operated by the McCullough family in Green River, Illinois, the
home-made ice cream business. The family then developed the idea of soft-
served ice cream and adopted the term Dairy Queen. Established in 1940, the
first Dairy Queen store was in Joliet, Illinois where their menu offerings were
limited to soft-served cups, pints, quarts, and sundaes. In 1962 the company
becomes International Dairy Queen, Inc. (IDQ), and in Winnipeg, Western
Canada, the first international Dairy Queen opens.
International Dairy Queen Inc (IDQ), a subsidiary of Berkshire-Hathaway Inc.,
a privately owned company, is a fast-service chain of restaurants. Restaurants
are owned, operated, and franchised by the firm. Its portfolio of products includes
burgers, sandwiches, buck lunch, baskets, sides and salads, children's meals,
treats, waffles and cones, sundaes and novelties, shakes and malts, soft drinks,
cakes and icy cold beverages among others. A popular Dairy Queen item is the
Blizzard, which is mechanically mixed with mixed ingredients like sundae tops
and/or cookie pieces, brownies and candies.
As to their marketing strategies, DQ will concentrate on the most up-and -
coming financial community, teens and young adults. When baby boomers age,
so do their spending habits in which they will have their own mode of
transportation and would prefer to hang out with friends. Along with it, about 10-
100 employees are needed and is classified as operating in the Full-Service
Restaurants industry.
One of the associated organizations that DQ has is the Children's Miracle
Network ®. DQ Dairy Queen ® loves children, so since 1984 Dairy Queen has
been a proud national sponsor of the Children's Miracle Network ®. The
Children's Miracle Network is an international non-profit organization dedicated to
generating funding and awareness programs to benefit children treated
throughout North America at 170 children's hospitals.
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INTBUSTRADE: International Business and Trade
With all of these, DQ in the past three years has generated an income of
US$3.64 billion (US, 2017).
II. Company’s Products and Services
Introducing Dairy Queen's high quality Ice Cream Sandwiches, Sundaes, Ice
Cream Cones, Blizzards with Classic and Royal Flavors, Milk Shakes, Frappe
(Frozen Blended Coffee), and DQ Cakes made Dairy Queen's a distinguished,
sophisticated and well-known chain of soft serve ice cream and fast food
restaurant around 27 countries all over the world. Dairy Queen's products have
various flavors that consumers could choose from, such as Vanilla, Caramel,
Blueberry Oreo, Chocolate Almond, Strawberry Banana, and Double Dutch.
Consumers will have the ability to customize their cakes for special occasions
and/or social gatherings and frozen treats can be purchased through delivery and
stores near you. With regards to their high-quality ingredients, they offer low-fat
ice cream and frozen yogurt to cater health conscious consumers/public, also DQ
offers different sizes having different prices for us. Dairy Queen became
competitive within the ice cream market by improving their products and services
in terms of, advertisements, creative designs and packages, volume and taste of
their frozen treats and food.
III. Employees
Employees are one of the key factors which can affect the revenue of Dairy
Queen that’s why it’s important to know what qualities their employees must
have. Employees must show reliability. If a manager calls and needs you to
come in, you should if possible. This will show that you are dependable and will
be there when needed. Strong initiative will get you far at DQ. Employees who
stay busy without someone over their shoulder are more successful. Employees
should be willing and able to follow instructions. Sometimes it’s not important that
you mess up, but that you listen to instructions so you will do better next time.
Friendliness toward customers is obviously a must-have. Failure to be courteous
toward customers could send you packing quicker than anything. Employees’
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INTBUSTRADE: International Business and Trade
daily work must be thorough. Every shift is expected to complete all their tasks
before the next shift comes in. Responsibility is essential for every part job, the
worker in DQ should be responsible enough to get him/herself to and from work.
Each worker must also have the qualities of flexibility, teamwork and good
communication skills because they are the front liners in the business.
IV. Franchises
Before getting a franchise to DQ there are certain training that must be
followed.
Training Overview: There are currently three required components to initial
training:
1. The Management Training Readiness Assessment (MTRA)
2. SERVSAFE certification
3. ADQ’s training program (three phases): Phase 1: Product and Equipment
Training; Phase 2: Service, Management, and Financial Basics Training;
Phase 3, People, PRIDE and Profit Training
The franchise’s designated manager and two assistant managers are
required attendees for the three components. Prior to attending the franchisor’s
training program, the required attendees must pass the MTRA, which is
administered at a location designated by the franchisor. The MTRA measures
leadership, customer service, decision-making, prioritizing and business math,
and may be modified by the franchisor at any time. The required attendees must
also have current SERVSAFE certification, which will only be recognized by the
franchisor if received through a course that is part of or equivalent to the National
Restaurant Association’s SERVSAFE program. ADQ’s training program is held at
an approved certified DQ location, the franchisor’s classroom in Minneapolis,
Minnesota or any other location the franchisor designates.
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INTBUSTRADE: International Business and Trade
V. Research and Development
Dairy Queen is commonly known as an ice cream manufacturer but through
times competitors began showing even before they started. First, they were
experimenting in an ice cream which served fresh from the freezer but not frozen
solid. Dairy Queen believes that ice cream taste better when it was soft and
served fresh. After years they decided to also serve hot food items like hotdogs,
hamburgers and chicken strips through Dairy Queen's Grill & Chill concept. The
company also offers a DQ Treat concept that offers both Dairy Queen's frozen
treats and the sister company's fruit drinks and smoothies. Based on other
information, until now they are still experimenting about their product to increase
their revenue.
VI. Technology
Hyper Active Technologies, a technology company for the restaurant industry,
has expanded its suite of drive-thru products for Minneapolis-based Dairy Queen
Corporation, which will now include the HyperView PE order confirmation display
(OCD), and Drive Time Cloud drive-thru management system. HyperView PE is
powered by a single CAT5e cable and saves operators money by reducing or
eliminating electrical installation costs. It also features a bright and long-lasting
display. Drive Time Cloud is a drive-thru management system, which provides
and stores data via cloud computing for less than half the price of other models.
VII. Domestic Market Position
International Dairy Queen is the market leader in ice cream retailing through
its network of franchisee and corporate owned locations. Dairy Queen it was not
known for its hot food and was not considered by consumers as a fast-food
option, instead it was well known for its cold treats.
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INTBUSTRADE: International Business and Trade
VIII. Competitors
When researching the industry outlook, we must take consideration or search
at who would be the possible competitors of Dairy Queen. In our target country,
which is New Zealand we have searched for other companies who sell the same
products with ours and there are four main ice cream companies that we feel will
be in direct competition with our products. The companies are Ginellis Company,
Deep South Ltd, Kiwi Stone Ice cream and the New Zealand Natural Ice cream.
These companies possess their own strengths and weaknesses obtaining to its
service or products.
The first on the list of the main competitors is the Ginellis Company (Ginelli’s
Premium Ice Cream), it is a local company and it is also an award-winning ice
cream retailer in New Zealand. It has received many golds and silver medals in
recent years, and these proved that the company is portraying a prestigious
image. To fit to their customer’s wants and needs Ginellis personally customizes
their product. In less time they made a new flavor without sacrificing the quality of
the ice cream. But their weakness is that their target market is only those who
are in upper middle to upper income classes, so it is not budget-friendly for all
customers. Another weakness is that they only sell to other business facilities
therefor they are not independent.
Another competitor is the Deep South Ltd it is also a local company and is a
family owned and operated ice cream shop. It manufactures a full range of retail
parlor and offers specialty ice cream flavors in a variety of sizes. Currently it has
a three (3) factories running in New Zealand. Same as the Ginellis they also can
develop customized flavors to meet customer’s tastes. They also have won many
awards and received four gold and four silver medals.
One of the major competitors is the Kiwi Stone Ice Cream (Kiwi Ice Cream
Company Limited), it is an international product and it differentiates itself from
many other ice cream parlors by serving “smooth and creamy” in New Zealand. It
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INTBUSTRADE: International Business and Trade
has a unique process of mixing each customized ice cream product on a granite
stone, and it depends on every customer. Their weakness is that even though
they have a unique process or preparing ice cream, they currently using the
same process as Cold Stone Creamery, which has been well known in United
States.
New Zealand Natural Ice Cream was named after their country, they serve
scooped ice cream and it is now an international company. They offer new
flavors and improve current flavors constantly, and it has also received awards
from the New Zealand Ice Cream Manufacturers’ Association. Having a colorful
store designs and imagery is one of their successful marketing strategies. They
also offer gluten-free ice creams which is preferable from the most customers.
This would be the top competitor because it holds a great title in the country.
IX. SWOT Analysis
• Innovation Product • Lack of Brand Internal
Factors
• Pricing Awareness
• Weak Market Share
• Online Ordering • Price War
External
• Service Line Expansion • Product Substitution Factors
• Changing Lifestyle • Competitors
• Operational Cost
Positive Negative
SWOT ANALYSIS
Strength
The company offers a lower price than our other competitors considering its
quality being serve to our consumers/fans.
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INTBUSTRADE: International Business and Trade
The product innovations are also focused by the company to attract more
customers.
Weakness
Since the company is a newly launched brand in New Zealand and has no
image in the local market it is expected to have a lack of brand awareness to the
customers, whereas its competitors have strong brand recognition. This weakness
can be managed and overcome with large-scale of advertisement.
As a new brand in the market of New Zealand at first the market shares are
low but the quality being served will make the brand be able to make an impact on
the market.
Opportunities
The company offers online ordering to invite those busy consumers and make
it easier for them to acquire the company’s product. Therefore, the home delivery
services are for the benefits of busy customers. Thus, it will lead to the changes on
the consumers’ lifestyle and treat proposition.
Threat
The lower the competitors’ price the company’s price problem will arise as
well as it will make more competitive in the market. Therefore, if the company will not
make a move it will lead to customers product substitutions. Thus, the company will
take an action when circumstances arise in order to make it to the trend as well as to
lessen operational cost.
X. Export
The International Dairy Queen Inc. enters in an international market in the
year of 1962 and it is continuously expanding with the different countries. The
company analyze first the advantages and disadvantages as well as they plan
before expanding their business which the result could be seen up until now on
how successful the company is. According to the Barry Westrum the company
conducted an action plan for establishing strategy for any circumstances that
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INTBUSTRADE: International Business and Trade
might occur where they considered their market objectives and goals in a way of
becoming SMART- specific, measurable, attainable, reliable and time-bound.
The expansion of the company to New Zealand in line with the business plan
is in the form of franchising as its less capital-intensive strategy when the
company enters in a foreign market. It is also because franchising arrangement
makes success for the Dairy Queen Inc. Hence, entering to New Zealand might
not be difficult for the company as it seems more favorable for their expansion in
the country because its trade barriers is somehow low such the tariffs. Even if the
country of New Zealand’s domestic components might be a challenge for Dairy
Queen Inc. the company will still be able to handle it as how they are able to
manage other challenges they encounter with the previous expansion on other
country. It also considered the consumption of New Zealand when it comes to
heavy ice cream as it has the highest rate worldwide and the growth in the
industry of ice cream in the country is expected to continue thus these serves as
an advantage entering the market of the country for the company expansion.
XI. Financial Resources
The parent company International Dairy Queen Inc. financial resources
mostly came to its franchising. As long as the expansion grows in the country
where it expands, the franchisors will arise and that how funds became easily
available for the company when they tend to expand to other countries and the
cycle goes on. Since the company operates internationally there is no problem
when it comes to exporting supplies for every franchise being sold by the
company.
1.2 Organization’s Assets and Skills
XII. Company Marketing Strategy
To enter the New Zealand market franchising will be the entry strategy of
Dairy Queen. Since franchising works so well already for Dairy Queen, we
believe it should stick with the franchising arrangement. Dairy Queen should start
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INTBUSTRADE: International Business and Trade
small, it would be risky to enter New Zealand and cover the whole market since it
has major competitors. It would be a safe business move of Dairy Queen by
entering only a certain segment until it would have a high level of assurance of
gaining more market share. The best segments to target are the urban areas
such as Auckland or Christchurch, within these areas we will start finding our
target market or consumers. Our target market will also focus more on families,
social gatherings, and the recent increase of health-conscious consumers.
XIII. The 4P’s: Product, Place, Price and Promotion
Introducing Dairy Queen’s soft serve ice cream into a country that has a
distinguished and well-established dairy, as well as ice cream, industry will need
to be carefully planned and must have a lot of strategies, and its strengths will
need to be emphasized.
Product Strategy
Dairy queen will be improving its product served and ensure that the ice
cream served is of high quality. It will also introduce multiple flavors and toffee flavor
which is New Zealanders preferred flavored and they call it “Hockey Pockey”. By
offering their preferred flavor, consumers may be more attracted to purchase ice
cream that Dairy Queen serves. Additional factor that differentiates Dairy Queen to
other competitors is that it also offers various flavors of ice cream cakes and frozen
treats. Cakes will be customized by the consumer’s preference or to fit individual
special occasions such as birthdays, anniversaries, graduations, etc. Frozen treats
will be available on-the-go. Dairy Queen could also offer low-fat ice cream and
frozen yogurt to cater to the rising health conscious consumers. To be competitive
within the ice cream market, we feel that Dairy Queen will need to put a lot of
creative time and energy into the design and essence of the parlor. Dairy Queen will
focus on the ice cream products and will offer sub-menu such as sandwiches,
cookies and other fast-food products.
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INTBUSTRADE: International Business and Trade
Place Strategy
Dairy Queen’s franchise will not only operate a restaurant or actual building
but also wants to open smaller locations such as in malls, beach and other public
places that has a lot of people or tourist. Initially it will also try a method that other
competitors are using which is the modified street vending location.
Pricing Strategy
Dairy Queen will be using the same pricing strategy used in the United
States. The various sizes we offer will be priced accordingly. Since New Zealand
has a strong history in the dairy industry, we assume that customers would be
hesitant to consume a product higher or equal to the current producers of dairy.
Therefore, to gain market-share it is necessary to price our products lower than
other competitors but will be high enough to maintain the brand image. To
encourage customers to try the new products we will be offering coupons and
discounts upon establishment.
Promotion Strategy
As to promotion, we plan to use different advertising mediums. We will be
using billboard or transportation systems like advertise on busses, taxis, bus stops,
and train stations. Another way to promote our products is through media like
television commercials and social media. We have stated in the pricing strategy that
we will be using coupons and discounts this will be another way pf promoting out
products. Coupons will encourage first time customers to try the product and
because of its affordability and quality they will be drawn back to the uniqueness of
the product, and they will become repeat customers.
XIV. Competitive Advantage
The International Dairy Queen Inc. relationships with their customer were
viewed by them as their fan of their brand, valuing them in a way of fannovation
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INTBUSTRADE: International Business and Trade
becoming the part of the culture. Barry Westrum the Executive Vice President of
Marketing of Dairy Queen Inc. said that, “We don’t have customers we have
fans” as well as on their new campaign of “Fan food, not fast food”. The company
also launched a website Mobilecakes.com in order for their fan who’s busy and
working to easily order the cakes produced by Dairy Queen through online. Thus,
the action plan and strategies that the company have and used in a more
competitive market makes a big advantage towards them as they were able to
convince their consumers that they are more than the ice cream as well Barry
Westrum is advantage personnel of the company.
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INTBUSTRADE: International Business and Trade
References
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Odell, P. (2015, February 9). DQ’s Marketing to “Fans,” Not “Customers,” Pays Off.
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customers-pays/
Taylor, R. (2019, February). Franchisees Get Big Financial Incentives From Dairy
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incentives-dairy-queen
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dairy-queen-franchises-stay-afloat-while-the-ice-cream-industry-experiences-
a-meltdown/
Dairy Queen does integrated marketing. (2010, October 6). ERNEST BARBARIC.
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Dairy Queen history. (n.d.). Dairy Queen - Build a Cake.
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