Situation Analysis for Dairy Queen
In the recent time with the increase of electronic and print media ,awareness in customers have increases and now customers are aware what they are going to purchase and what are other products /brands are available almost at the same price,also people becomes health conscious.This ultimately affects any company sales and increase buyer power. The main economic factor acting for this industry is uneducated suppliers of raw material, so lots of raw material is affected in terms of its quality and preservation issues and a big percentage of raw materials go to waste before its being processed. But at the same time UHT milk doesn’t have any kind of taxes on it which makes it a good economic factor for the industry growth and improvements in its production. As UHT milk is a bit costly than the ordinary milk or non processed milk so income factor of consumer is always an important economical factor for the industry players. UHT milk industry carry consumers from middle and lower class and income level for this class has increased over time which is something in favor for the industry.
Pricing based on the product purchase quantities. For instance, the organization could provide quantity discounts for large-scale purchase of the product. The strategy encourages large-scale purchase of the products of the company hence an increase in the revenue realized (Ferrel, 2008). Dairy queen is in Minneapolis. It develops licenses and services. Dairy queen introduced blizzard in 1985. Blizzard is used during summer due to its coldness. It includes flavors such as Oreo cookies, mint Oreo, chocolate chip cookie dough, and seasonal flavors such as pompkin pie. It has been facing challenges such as customer dissatisfaction of their products and services, unavailability of their products whenever the customers need them and inability to match the price and the quality. Daily queen has to analyze and change its pricing and distribution strategy to suit customer needs and expectations (Measured up, 2011). Effective pricing as a marketing strategy can be combined by other strategies in order to create a competitive advantage in marketing (West, 2010). Pricing strategy is a process of finding optimum price levels by considering the overall objectives, consumer demand, product attributes, competitors’ price, and macroeconomic trends while distribution strategy is the coordination of products to the target market. It is the structures for distribution channels, patterns for the design, choices of distributors, and the factors affecting the choice and management of the channels of distribution (Kaminsky, 2003).
Ferrel, O. (2008). Marketing strategy. New York, NY: Cengage Learning.
Kaminsky, P. (2003). Designing and managing the supply chain: concepts, strategies, and case studies. New York, NY: McGraw Hill Professional.
West, D. (2010). Strategic marketing: creating competitive advantage. New York, NY: Oxford University Press.