Dots 'n Cream Company

1

Preface This Project is a part of Project Feasibility Study and Evaluation Course in the 2nd semester, 2010. In the content of the project is studying about the feasibility of Dots ice- cream business under the brand of Dots ’n cream, which the first business who perform the business in Thailand and also in Chiang Rai, including the generally of ice-cream business, management in of ice-cream business, competition analysis and marketing feasibility, the financial feasibility of ice-cream business, and risk of ice-cream business. This project can be invite everyone who interested to get knowledge and information about ice-cream business before make decision to investment, including preoperational process and operation process ice-cream business, for the benefit to investment and profit of doing this Dot ice-cream business. We are expect that our project will provide benefit more and more interested person Moreover, if we have any error in this project or whatever, our ground made an apology at this opportunity.

Group members Miss Wannaporn

Chawalitwongporn

ID: 4731205119 Tourism

Miss Patcharaporn

Morsart


Mr. Nattapon

Kitudom


Miss Sasiprapha

Nonpayom

ID: 5031205240

Tourism

Miss Sudtida

Kerdkaew

ID: 5031205241

Tourism

2

Table of Content Title

Page

Preface

1

Table of Content

2-3

Chapter 1

4

Introduction

1.1) History and Background of Ice- Cream

5-7

1.2) The Origins and Significance of the project

7-8

1.3) Project Objectives

8

1.4) Benefits of Project

8

1.5) Operational Methods

9

1.6) Time frame of study

10

Chapter 2

Industry profile

11

2.1) Nature of Industry

12

2.2) Situation Industry

12-14

2.3) Product and Service

14-26

2.4) Vision

27

2.5) Mission

27

2.6) Strategy

28-30

Chapter 3

Marketing Feasibility Study

3.1) Marketing Analysis

31 32-46

3

3.2) STP Analysis

47-48

3.3) Marketing Mix Strategy

49-51

3.4) Sales Forecast/Profit Estimation

52-59

3.5) Marketing Expenses (Sale Incentive)

60-69

3.6) Conclusion in market feasibility

70

Chapter 4

Technical Feasibility Study

71

4.1) Production and Operation Analysis

72-92

4.2) Cost of investment

93-97

4.3) Investment Cost

98-101

4.4) Management Analysis

102-113

4.5) Technical Feasibility Conclusion

114

Chapter 5

Financial Analysis

115

5.1

Income Statement

116-120

5.2

Balance Sheet

121-125

5.3

Statement or Cash flow

126-130

Risk Management

131

Chapter 6

6.1 Risk analysis

Chapter 7

132

6.1.1

External Forces

132-134

6.1.2

Internal Forces

134-140

6.2 Conclusion of Risk Management

Summary

A

140

142-144

4

Appendix

145-157

Chapter 1 Introduction

5

1.1) History and Background of Ice- Cream The story of ice cream begins a long, long time ago in a most beautiful place. The story of ice cream begins over 3,000 years ago in China. Lots of cool things were invented in China. Umbrellas, glasses and fireworks were all invented in China but the tastiest and coldest Chinese invention is snow ice cream. The Emperors of China were the first people, we know about who were lucky enough to get to eat snow ice cream. Their cooks mixed snow and ice from the mountains with fruit, wine and honey to make a tasty treat for their rulers to enjoy when they wanted to relax. How the Romans came up with the idea of making snow ice cream we do not know. But what we do know is that in 62 A.D. the Roman Emperor Nero wanted to eat snow ice cream so badly he sent slaves up to the mountains to bring back snow and ice so his cooks could make it for him. Nero's cooks mixed the ice and snow the slaves brought back with nectar, fruit and honey and then Nero ate it. In 1295, Marco Polo, a great adventurer, returned from China to Italy with a new recipe for making snow ice cream. His recipe called for mixing yak milk into snow in order to make it creamy. The idea of mixing a mammal's milk into snow ice cream caught on and soon the rich people of Italy were enjoying frozen milk. In 1533, Catherine de Medici of Florence, Italy became the Queen of France when she married the French king, Henry II. One of the things she took with her when she moved from her home in Italy to her castle in France was her recipe for making frozen milk. Soon many of the cooks in France were making the delicious treat. One French chef opened a shop to sell the tasty treat. He was the first cook to add flavors like chocolate and strawberry to the frozen milk.

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When Charles I of England visited France in the 1600s, he was served frozen milk. He loved it so much, he asked the French chef who served it to him to sell him the recipe. Charles I took the recipe back to England with him and the rich people of England began to eat the delicious cold dessert. In 1700, Governor Bladen of Maryland, who was from England, served ice cream to his guests. Seventy-six years later, the first ice cream parlor in America opened in New York City. Dolly Madison, the president's wife loved ice cream so much, she served it to her White House guests in 1812. In 1843, an American woman named Nancy Johnston invented the hand-cranked ice cream freezer, which made making ice cream easier. In 1851 Jacob Fussel opened the first ice cream factory in the United States of America in Baltimore, Maryland. He sold his ice cream from a wagon. In 1899, August Gaulin, who lived in France, invented the homogeniser. This invention helped give ice cream a really smooth texture. In 1902, August Gaulin invented a new kind of ice cream freezer that helped make ice cream freeze faster. In 1903, Italo Marchiony, a man who sold ice cream from a pushcart he pushed through the streets of New York City, invented the ice cream cone and patented his idea. He invented the waffle cup because he was tired of people walking off with or breaking the glasses he used to serve ice cream from his pushcart. A year later in 1904, E.A. Hamwi introduced the waffle cone at the St. Louis World Fair. People say he began making the waffle cones when an ice cream vendor at the fair ran out of bowls.

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The closing of bars that sold wine and beer in 1919 led to the opening of many ice cream parlors in the United States. The more Americans ate ice cream the more they wanted to eat ice cream. This demand for ice cream led to the invention of the first chocolate covered ice cream bar. The first chocolate ice cream bar was called the I-Scream Bar but later its name was changed to the Eskimo Pie. You can buy an Eskimo pie at the grocery store if you want to find out what it tastes like. You can also buy a Good Humor Bar which was invented in 1920 and was the first ice cream sold on a stick. But if you're like me, you'll head to Baskin-Robbins, which first opened in 1946 in California, and buy a scoop of Cookies 'N Cream which is made with real Oreo cookies. This ice cream flavor was invented in 1983. Others like Chocolate Chip Cookie Dough have been invented since 1983 but Cookies 'N Cream will always be my favorite. Of course, vanilla ice cream with honey on top is also very good. I'm so glad someone in China decided to mix snow and ice with honey and that now even poor people like me can afford to eat tasty frozen treats each and every day of the week, just like Mr. Baskin and Mr. Robbins intended. (source from http://webinstituteforteachers.org/~cbmallare/History1.htm ) 1.2) The Origins and Significance of the project According to hot weather in Thailand, we realized that it must be a good chance for our company to conduct a new type of ice-cream business because there’re so many people who love to consume cold desert such as ice-cream and it can be sold throughout the year. In addition, we chose Chiang Rai as our first parlor because Chiang Rai is becoming a popular tourist destination in Thailand and that leads to economic growth as seen from the contribution of Central shopping Mall which is the place we chose to conduct our ice-cream parlor as a premium quality of ice-cream. Moreover, we have a roughly surveyed the ice-cream market in Chiang Rai and found that most of the firm who’s conducting this type of business; both local ice-cream shop as well as branded shop have sold the traditional ice-cream which is the same

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style and shape. Because of this reason, our company then has an inspiration to conduct this kind of business but in a difference shape & style of ice-cream which is dots or other shape of ice-cream during special occasions such as heart shape in Valentine’s Day, pumpkin shape in Halloween, and Christmas tree during Christmas under the brand of “Dots ‘n Cream”. Our company has an inspiration from one of ice-cream business in USA that produces a premium ice-cream in a shape of dots, however our company has create new recipes of ice-cream and added more shape altogether with its color in order to response and attract customers. Our target market are teenagers and families in Chiang Rai who love IceCream and prefer to try something new such as lovely style & shapes of ice-cream as well as the cute theme services and cute shop decoration, so we focus on making a lovely design and tasty ice-cream altogether with the beautiful shop decoration (vintage style) and seasonal theme services in order to make customers satisfy.

1.3) Project Objectives: •

To study about the market feasibility of conducting new style of ice-cream business in Chiang Rai.

•

To analyze market in the business and financial risk feasibility

1.4) Benefits of Project: •

To be profitable and gain return on investment of conducting this business.

•

To know about the market feasibility of conducting new style of ice-cream business in Chiang Rai.

•

To know about operation feasibility of making Dots ice-cream.

•

To learn about the market in the business and financial risk feasibility

1.5) Operational Methods:

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•

To study about the generally of Ice-Cream business in Chiang Rai.

•

To study about the management of Ice-Cream business as follows:

•

•

•

-

Background and Classification of ice-cream

-

The innovation of Dots ice-cream

-

The product and services in Ice-cream shop

-

Vision and Mission statement of Dots ice-cream business

-

Strategic management of company

To study about the competitive analysis and marketing feasibility as follows: -

The general of internal & external factors in Ice-cream business

-

Marketing Mix strategy of Dots ice-cream business

-

The demand of consumers for Dots ice-cream

-

forecast & profit estimation of Ice-cream business

To study about technical process of Dots ice-cream business as follows: -

Location

-

Analyzing of Operation management

-

Investment and Operational costs of conducting this business

To study about financial feasibility of Dots ice-cream business as follows: -

Company’s capital and investment, operation costs & expenses, other expenses, etc.

•

Profit & Loss statement, Cash flow, and Balance sheet in 5 years of operation of Dots ice-cream

To study and analyze about risk taking of running Dots ice-cream business in Chiang Rai

•

To summarize about the feasibility of Dots ice-cream in Chiang Rai

10

1.6) Time frame of study: Table: 1.1 Time frames, since November 2010 - February 2011

Operations Methods 1. To study about the generally of Ice-Cream business in Chiang Rai. 2. To study about the management of Ice-Cream business. 3. To study about the competitive analysis and marketing feasibility. 4. To study about technical process of Dots ice-cream business. 5. To study about financial feasibility of Dots ice-cream business. 6. To study and analyze about risk taking of running Dots ice-cream business in Chiang Rai. 7. To summarize about the feasibility of Dots ice-cream in Chiang Rai.

November

December

January

February

W W W W W W W W W W W W W W W W 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

11

Chapter 2 Industry Profile

12

2.1) Nature of Industry IT is a commentary on the trend of life that a book of nearly 700 pages should be written on a comparatively small item of diet, an item which, until a few years ago, was either regarded as a luxury or as a special treat for small children. This one item has now become the basis of one of the big food industries, ice cream manufacture, and it must be admitted that ice cream is a useful and palatable method of inducing people to take more milk. Messrs. Turnbow, Tracy and Raffetto have in this revised edition brought their earlier work, of 1927, up to date ; have added chapters and rewritten chapters, and the result is a very readable compendium of knowledge (there are a number of minor and several major errors particularly in the scientific parts) dealing with every aspect of ice.cream, from manufacture to salesmanship. It would be an interesting study to try to decide which author has been responsible for the various sections, for they are not all of one style, and one gets the feeling of a vision of patchwork quilt. (source from http://www.nature.com/nature/journal/ v161/n4092/abs/161500b0.html)

2.2) Situation Industry Nowadays there are many ice-cream parlors in Thailand. It is the business which offers happiness to consumers by providing the best quality of product and extra services. In addition, this business is responding to customer’s awareness of new type or exotic ice-cream. The customers can order whatever they want or even create their own recipes of ice-cream by themselves. Moreover, Dots ‘n Cream has provided theme services during special occasions; therefore made customers satisfy with both products and services. However, from base budget reduction of customer services, it

13

makes the ice-cream parlor business has high competitive. Most of the companies whom conduct this type of business try hardly to create their own strategies in order to compete their competitive such as competition in setting price, quality of products & services, and special discount promotion or premium to motivate the customers. The bars chart below shows the market value of ice-cream in Thailand during 2006 – 2007 which the trend of each segment was slightly increased. (source from http://www.kasikornresearch.com/TH/KEcon%20Analysis/Pages/Search.aspx?cid=11) Figure 2.2.1 – Ice-cream consumption in Thailand since 2006-2009

2006 Market Value (MillionBaht)

900

1,200

Premium

Medium/Mass

Lower Cost Market 7,900

Figure 2.2.2 – Ice-cream consumption in Thailand since 2006-2009

2007 Market Value (MillionBaht) 1,000 3,000

Premium

Medium/Mass

Lower CostMarket 7,000

14

Most of the consumer in ice-cream market preferred “Wall ice-cream” rather than those competitors and because of this reason, it makes Wall company gained prior market share. In addition, Nestle, Cremo, Magnolia, and other ice-cream company have gained less market share respectively. However, the total market value of ice-cream industry is almost 4,323 billion as shown in the figure 2.2.2 below. (source from http://www.marketeer.co.th/result_mktm_new.php?inside_id=6563& param=power%20share)

Market Share of Ice-cream in Thailand 70.00% 60.00% 50.00% 40.00% Wall

30.00%

Nestle

20.00%

Cremo

10.00%

Magnolia

0.00%

Others Wall

Nestle

Cremo

Magnolia

Others

Figure 2.2.2 – Market share of ice-cream industry in Thailand 2.3 Product and Service 2.3.1 Product •

Chillz

Chocolate

Sour Blue Razz

15

Wango Rainbow copy

•

Flavored Ice

Bubble Gum

Rainbow Ice copy

•

Liberty Ice copy

Watermelon Ice copy

Ice-Cream 16

Banana

Cotton Candy

Bubble Gum copy

Peach

17

Strawberry Tropical Tie Dye

Vanilla copy

•

No sugar add

Fat Free Fudge

•

Reduced Fat Vanilla

Sherbet

18

Lemon Lime Sherbet

Orange Sherbet

Raspberry Sherbet copy •

Yogurt

Strawberry Cheesecake

•

Cone & Cup

19

Waffle Cone

Sugar Cone

Crystal Cup

•

Cake Cone

Waffle Bowl

Plastic Cup

Ice-Cream Toppings •

Sauce 

Chocolate



Strawberry

20



Caramel

•

Fruit

•

Chocolate

21

•

•

Caramel

•

Peanuts

whipping cream

22

•

Cherry

•

waffle

•

Sprinkles

23

•

Gummy

•

M&Ms

2.3.2 Service •

Internet Hi-Fi

24

•

Reading Corner

•

Rest Rooms

25

2.3.3 Theme Service •

Valentine’s Day

•

Halloween

26

•

Christmas

•

Vintage Theme

27

2.4) Vision To make Dots ‘n Cream the most popular ice-cream parlor and the prior market share in ice-cream industry in Chiang Rai.

2.5) Mission Dots ‘n Cream has provides the best quality of Dots ice-cream and beautiful theme services depend on seasonal and special occasions with a team of specialized staff. Our company would like to establish long-term relationship with customers as well as create customer loyalty by concerning about customers needs & wants. Dots ‘n Cream is also offer a special promotion set of ice-cream and create new strategy of “made by order” in order to make our product to be attractiveness and differentiated from competitors.

2.6) Strategy 2.6.1 Corporate Level: “Dots ‘n Cream” is the new business that will launch their products and services in Chiang Rai and make it to be well-known in the entire market. This is the reason why our business used “growth strategy” in order to make an accomplishment for business. Growth strategy can be used to improve “Dots ‘n Cream” to be the most popular ice-cream parlor in Chiang Rai. It will also lead the positive effect by increasing growth rate for our business; especially focus on creating the growth within the organization which is horizontal integration strategic.

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Our business will support the products and services by using horizontal integration strategic and then adding products diversity such as style, shape, taste, and colors. For example, product line of dots ice-cream; it has many shapes and colors, such as shape of dots with rainbow color, shape of heart with red color in Valentine’s Day, shape of pumpkin with two tones color in Halloween, etc. In addition, product line of ice-cream containers such as crystal cup, waffle cone, sugar cone, and cake cone, etc. From the strategy that we adapt to support products and services, it can generate high profits to our business. Furthermore, our business has high cooperated level with the supplier such as grocery stores in the local market, fruits store, chocolate factory, etc. All suppliers provide the best quality of products as we have ordered. Therefore, our ice-cream is always fresh and ready to serve at anytime.

2.6.2 Business Strategy: “Dots ‘n Cream” is new business that enters to ice-cream market therefore our company needs to create distinctive strategy to make the difference from existing competitors. Our company has to take competitive advantages by adapting the strategy toward products and services and gain prior market share. The difference of Dots ‘n Cream when comparing to the existing ice-cream parlor in Chiang Rai is the shape of ice-cream and its theme services which are very differ from the local branded and international branded.

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2.6.3 Functional Strategy: •

Marketing Strategy

Product Strategy - Create brand image by using product branding, logo, and its slogan to attract customers -

Focused on providing high quality of products and services

- Always develop products and theme services to be up to date

Price Strategy - Estimated cost and selling price of competitor - Similar price of product, but higher quality than those competitors

Place Strategy - Use an area of parlor for products and services distribution, and then emphasize marketing strategy as “pull strategy” Promotion Strategy - Advertise the products and services through various communication media such as radio, brochure, or billboards - Introduce new recipes of Dots ‘n Cream by seasonally and give a discount for customers

30

•

Financial Strategy

- Loan money from bank to conduct business - Prepare clear and accurate systematic of financial statements monthly - Developed accounting system and financial system in standard form

•

Human Resources Strategy

- Training employee in order to provide the best service toward customers - Assign an appropriate position and duty to employee - Tracking task and evaluate employee’s performance individually

31

Chapter 3 Marketing Feasibility Study

32

3.1) Marketing Analysis 3.1.1 General Environment Analysis •

Political factors

“Political situation of Thailand in presently is not still normal. It is the lack of stability. The factors affect to demand for domestic, such as red shirt, yellow shirt and unrest between Thailand and Cambodia, etc. (chiangmainews, 2009), however these political problems have no affected in decreasing the number of people who consume ice-cream because this business is apart from political crisis in Thailand which means people don’t have to be worried of any serious situation that might occurred. On the other hand, the demand of consuming ice-cream could be rise up dramatically because it can make them feel relax from the stress. Therefore, the entrepreneur of ice-cream parlor can get more revenue and profits by adjusting an appropriate operating and marketing plan to satisfy the customers such as setting suitable promotion for products and services to match customer needs and wants.

•

Economic factors

The Thai economy in 2010 is likely to pick up, with a growth rate of 3.5 percent, an increase from 3.3 percent forecast in September 2009. According to the Ministry of Finance, the improvement in the Thai economy will be a result of the Government’s stimulus measures, as well as the acceleration of private spending and the recovery of the global economy. The Gross Domestic Product (GDP) in Thailand contracted at an annual rate of 0.2 percent in the third quarter of 2010. From 1993 until 2010, Thailand's average quarterly GDP Growth was 1.01 percent reaching an historical high of 7.10 percent in

33

September of 1993 and a record low of -5.10 percent in March of 1998. The economy of Thailand is an emerging economy which is heavily export-dependent, with exports accounting for more than two thirds of gross domestic product (GDP). Welldeveloped infrastructure, a free-enterprise economy, and generally pro-investment policies, made Thailand one of East Asia's best performers. However, overall economic growth has fallen sharply in 2008 and 2009 as global downturn and persistent political crisis stalled infrastructure mega-projects, eroded investor and consumer confidence. The inflation rate in Thailand was last reported at 3.40 percent in July of 2010. From 2000 until 2010, the average inflation rate in Thailand was 2.51 percent reaching an historical high of 9.20 percent in July of 2008 and a record low of -4.40 percent in July of 2009. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. (Trading Economic, 2010)

According to the movement of economic situation, there’s no affect to the icecream business because, even though the economic is slowdown, the numbers of icecream consumer is still in high level. In addition, ice-cream is a product that can be sold through out the year; no matter what season or which special occasion. Moreover, after considering the trends of economic this year, our company has estimated that the economic in 2011 will grow up more than this year.

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•

Social and Environmental factors

The society in Thailand nowadays is more flexible than the past (a hierarchical society) which means that people can consume any class of products and services they wanted; no matter those products and services are expensive or not. The reasons above have shown that most of the business depends on consumers who have purchasing power, and ice-cream parlor is also the business that suitable for everyone in society. Moreover, the environmental factor is hot weather in Thailand which leads to more consuming of ice-cream products.

•

Technological factors

The technological equipments that our company used in operating business consist of “normal ice-cream making machine” which helps reducing time and operation costs. Moreover, “nitrocream machine” can also produce dots ice-cream faster and easier with more quantity. Additionally, “ice-cream freezer” is necessary for keep an ice-cream from high temperature outside as well as “ice-cream dipping cabinets” with 16 flavor freezers for 3 gallon tubs. There’s also “ice-cream topping freezer equipment or flavor-rails” where the toppings are housed. Strawberry, chocolate syrup, pineapple, etc. The rail houses the toppings and the cabinet is actually an additional freezer compartment. It is great for back-up cans as well as the basic flavors used in shakes and sundaes (usually vanilla, chocolate and strawberry will be dipped out of this cabinet). “Batch freezer” is also used for produce a perfect premium style ice-cream and sorbet which offer more quality, durability, and convenience for users just like “waffle cone bakers” that offer freshly cones everyday.

35

Besides the technology of ice-cream homemade equipment, the technological of communicating device is also important such as telephone and internet that use to contact with customers. In addition, calculator and cashier machine are very necessary because it’s very helpful when receiving a payment from customers.

Therefore, using innovative technology can help the business to gain competitive advantages, and also making their product more outstanding than those competitors. Furthermore, it can be considered that using technology can response to customer needs and wants with the best quality and more effectively of products and services.

36

- Technology Equipment

Normal ice-cream maker

Batch machine

Nitrocream machine

Ice-cream topping flavor/flavor rails

Waffle cone bakers 37

Ice-cream dipping cabinets’

Telephone

Cashier machine

Ice-cream freezer

Internet/WiFi

Calculator

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3.1.2) Competition Analysis •

Competitor Analysis

Our competitors Because of our business “Dots ’n Cream” have uniqueness in products and services which is very different from other competitors. We haven’t had a direct competitor to compete in our business; however we have had indirect competitors instead. Our indirect competitors can be divided into two groups which are branded ice-cream and local ice-cream. The branded ice-cream is Swensen’s and Dairy Queen, and the local ice-cream is Huck ice-cream.

Indirect competitors •

Brand ice-cream  Swensen’s

Address: 869/16 6 Moo 4, Phaholyothin Road, Tumbon Wiang, Muang District, Chiang Rai 57000 (opposite Nigh Barza) Address: 184 Moo 25, T. Rob Wiang, Muang District, Chiang Rai, 57100 (Big C) Product - The products of Swensen’s are including several menu of ice-cream, ice-cream cake, drinking in order to customer can choose the menu they prefer. In addition their services is more comprehensive, they also provided the service in a warm, family atmosphere’s experience. Their service comes from working with naturally friendly people well trained in all aspects of operating on ice cream parlor. They have strived

39

to meet each client's specific needs in planning for the future and achieving their goals in an ever-changing. - Swensen’s is a strongest competitor in the ice-cream market because they have two franchises which opened for a long time. - The products of this brand are acceptable from the customer because their brand is famous among Thai people. When this brand is open franchise in Chiang Rai, so this brand becomes well known among Chiang Rai people. - They always provided a comprehensive service to the customers to make their customer feel satisfaction which is the most things that they concerned.

Price The prices of ice-cream Swensen’s are expensive because their product is an ice-cream premium. However, ice-cream Swensen’s also have many promotions which changes follow all the years season al thin order to attracted the customer by set up the prices in those promotions lower than normal prices.

Place - The location is suitable for opened the business both Big C and Night Barza because these locations are the places where the people easy to reach. - There is advertising via television and also in billboards in the public places.

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Promotion The promotions of Swensen’s brand are creating follow the season at that time such as: •

In the Valentine’s Day Festivals, a promotion of Swensen’s is Strawberry in Love Sundae Promotion.

•



Supper Strawberry Chocolate

55 Baht



Supper Strawberry Banana 55 Baht



Supper Strawberry Bloom

55 Baht

In the summer season, a promotion of Swensen’s is Unseen Mango Promotion. 



Small size -

Supper Taro mango

49 Baht

-

Supper Taro Breeze

49 Baht

Small size -

Taro Mango Tower

79 Baht

-

Mango Breeze Tower

79 Baht

-

Summer Breeze Mango 79 Baht.

41

•

In the Mather’s Day, a promotion of Swensen’s is I love you “Mom” Promotion. - Ice-cream Cake

•

In the Christmas, a promotion of Swensen’s is Christmas Sundae Promotion. 



•

750 Baht

Small Size -

Nutty Sundae

59 Baht

-

Snowy Choco

59 Baht

-

X’Mas Berry

59 Baht

Big Size -

Merry Sundae

99 Bath

-

Greeting Choco

99 Bath

-

Very X’Mas

99 Bath

In the world cup season, a promotion of Swensen’s is World of Sundae Promotion. -

African Brownies

129 Baht

-

Bazillion Nuts

129 Baht

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-

Italian Mocha

129 Baht

-

American Banana

129 Baht

-

English Cookies

129 Baht

-

Japanese Green Tea

129 Baht

-

Korean Choc

129 Baht

\

•

Swensen’s have central Festival celebration promotion for the customer who collected the stickers and they will receive the 50% for maximum discount rate or the first card 100 points can change into 1 stamp.

1 stamp = 10% 2 stamp = 15% 3 stamp = 20% 6 stamp = 30% 9 stamp = 40% 12 stamp = 50%

43

•

Swensen’s also provided the gift voucher for the customers who buy icecream cake 750 Baht.

•

Buy one get one free is also the special promotion of Swensen’s ice cream.

44

 Dairy Queen Address: 184 Moo 25, T. Rob Wiang, Muang District, Chiang Rai, 57100 (Big C)

Product - The products of Dairy Queen are including several menu of ice-cream, ice-cram cake and drinking in order to customer can choose the menu they prefer. In addition, their services is focusing on quick-service in order to serving ice-cream for the customer because the store have only counter. Their store doesn’t have the seat which provided for the customer, so they need to provide the service as quickly as possible. However, Dairy Queen also provided the premium ice-cream with effective service for the customer. - Dairy Queen is a strongest competitor in the ice-cream market because they are only branding who is conducting the business in Chiang Rai. - The products of this brand are acceptable from the customer because their brand is famous among Thai people. When this brand is open franchise in Chiang Rai, so this brand becomes well known among Chiang Rai people.

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Price The prices of ice-cream Dairy Queen are medium prices because they’re focusing on the target market of child and teenager, thus they have to set up the prices in the medium rate.

Place - The location of Dairy Queen is suitable for open the business which located in Big C. - There is advertising via television and also in billboards in the public places.

Promotion Dairy Queen is quite limited in their promotion because their store is a mini bar with the medium prices of product, so they gift a little discount in the popular product such as Blizzard ice-cream. 

Blizzard ice-cream has 4 sizes which are small size 25 Baht, Medium size 35 Baht, Big size 45 Baht and Take home 55 Bath. -

When the customers buy the small size of Blizzard ice-cream and if they want to buy the medium size, they will pay more 5 Baht.

-

When the customers buy the medium size of Blizzard ice-cream and if they want to buy the big size, they will pay more 5 Baht as well.

-

The promotion of take home size are different form another sizes which is set up the special discount from 55 Baht to 50 Baht.

46

•

Local brands 

Huck ice-cream

Owner: Mayrin Phonrat Address: In front of Mae Fah Luang University Product - The products of Huck ice-cream are including several menus of ice-cream, snow cone ice-cream, and milk churn. In addition, their service is moderate because the service of Huck ice-cream is customer’s own servicing. - Huck ice-cream is a strongest competitor in the ice-cream market because they are only branding who is conducting the business in Chiang Rai. - The products of this store are acceptable from the Mae Fah Luang University’s student because their ice-cream is the uniqueness style of snow flake which difference from other store.

Price - The prices of Huck ice-cream are reasonable prices because they’re focusing on the Mae Fah Luang University’s student. However, if they want to add more topping, it’s quite not reasonable with its prices of ice-cream. Place - The location of Huck ice-cream is suitable for opened the business which located in front of Mae Fah Luang University. 47

3.2) STP Analysis 3.2.1 Market Segmentation Dots ’n Cream’s market segmentation is separated customer segment into three niche groups; each group is classified according to their consuming behavioral. As our market segmentation can help us generate better understanding of customer expectations and marketing conditions. Our three market segmentations are identified below: Our first group is the ice-cream lover; this group is seeking for new type and new taste of ice cream to fulfill their wants. The second group is the general customer who loves dessert. The last group is the group of people that are interested in experiencing excellent services and good ice cream parlor’s style, warmth and comfort atmosphere. The following figure shows the comparing number of each group.

Market Segment servicefocus 15%

dessert lover 25%

ice-cream lover 60%

48

3.2.2 Target Analysis As ice-cream parlor is the fast growing business that the products can be sold throughout the year. Therefore, require more specialize marketing strategies to differentiate our business from the competitors. Therefore, Dots ’n Cream offers new package and style of the product to response to customer needs. Our business targets the two particular groups, which are the teenagers and the families. The characteristic of teenagers are more likely to attract as they love challenging and want to kind something new. The characteristic of families are that they love going as a group, enjoying and having good time together, so they purchase at greater amount.

3.2.3 Position Analysis Dots ’n Cream position its business by creating good corporate image, building awareness of the business existence including products and services into targeted customers’ minds. With the new developed product package at a first place in Thailand, will faster encouraging the customer’s perception toward the business. In addition, our well-trained employees those who are ready to serve you an excellent service with warmness, friendliness, courtesy, and service mind, as customers can be ensured with. Moreover, the business opens and is always appreciate for any reviews, comments, or feedbacks from the customers as every feedback will be use as an inspiration for business improvement and better response to customer needs and wants.

49

3.3) Marketing Mix Strategy

3.3.1 Product strategy Branding Strategy, we had set up a name of our brand in English language because it looks internationally and relates with our product. “Dots ’n Cream” is the name of our company. It looks lovely and easy to remember. We also created a logo in order to making the identity into our brand. Our logo has used the graphic with the lovely design in order to promote our brand and attract the customer in the target group of child and teenager in Chiang Rai.

Dots ’n Cream Logo

•

Products and services strategy Dots ’n Cream is brand which is including many quality ice-creams with

good services that can be satisfy customers needs. Due to they have the different preference,

so customers can selected our products according to they wanted and

50

they also derived the good services that we provided to them. Therefore, our company has professional employees that our company had trained them better. • Products -

Ice cream dots

• Services - Take order and serve

•

Reliability and confidence Dots ’n Cream can create reliability and confidence to customers very well,

because we has create the image of our brand to be well know among Chiang Rai people with the standard brand. We have responses the customers need and also make them satisfy after they have consumed our product.

3.3.2 Price Strategy Dots ’n Cream is focusing on Cost-Based Pricing strategy because the cost of production of our ice-cream is high values which are cost of raw material, cost of labor, cost of equipment and etc. Thus, we need concern about the prices by comparing with the cost of production. However, we will offer the ice-cream with the quality and quantity which suitable with the prices and also provide the professional services to the customer as well as the our high quality ice-cream to the customers

3.3.3 Place Strategy We focus on Pull strategy by using advertisements and sale promotions to attract more customers because the decision of the customer in buying ice-cream might depend on quality of product are suitable with its prices. They always choose

51

the best product they require, so we should to determine the variety of our ice-cream product with the good images in order to pull the customer into our ice-cream parlor. When the customers come to our ice-cream parlor already then they can choose the products and services in order to responses their needs fully. However, location of Dots ’n Cream is locating in Central Shopping Mall on Phaholyothin Road, Tambon Tasud, Mueang District, Chiang Rai.

3.3.4 Promotion Strategy The promotion tools as follows: • Advertising - Informative advertising in order to introducing our ice-cream parlor by using the

brochures, billboards and radio to promote our brand to be well-known

among Chiang Rai residents. - Persuade advertising in order to present the quality of products and services. • Sale promotion Sale Promotion of our ice-cream parlor is focusing on theme service which changed and decorated theme of parlor according to the seasons through the year such as Valentine’s Day, Halloween, Christmas and Vintage Theme. Moreover, we also offer the special discounts for the customers who has visited and purchased our ice-cream.

52

3.4) Sales Forecast/Profit Estimation According to the record of number of Chiang-Rai residents in 2009, there are 1,194,933 people and the number of household is counted at 454,840 (cited: Department of Provincial Administration-www.dopa.go.th). Assume that teenagers (age 15-28 years old) is estimated at 30% of total population which is 358,480 teenagers. And suppose that every household compose at least 1 child (age 3-14) and parents, so the probability of every household consuming ice-cream will be at 33% or at least 1 person minimum.

Dots'n Cream's 1st target customer group (Teenagers) 30

teenagers(targeted) other residents' generation

70

Dots'n Cream 2nd target customer group (Household) 33

67

consume(1person) mayor maynot consume(2 persons)

53

And since our business will be launch at Chiang-Rai Central Shopping Mall, Maung District, thus the number of target customer will be focus on the population in Maung District as primarily (116,341 people, 46,758 households). Therefore, the number of our target customer would be about [(116,341 x 30%) + (46,758 x 33%)] = [34,902 + 15,430] = 50,332 totally. (cited: Department of Provincial Administration -http://203.113.86.149/xstat/p5257_01.html)

*Note: However, this is just a yearly estimation and if we divide into months, hence that we’re competing with other two competitors. Moreover, giving 12,000 additional supplementary customers from the residents from other Chiang-Rai’s Districts and tourists, then the estimated no. of customers of our own business per months will be as follow: Total no. of targeted customers per year = 50,332 + 10,000 = 62,332 Total no. of targeted customers per month = 62,332/12 ≈ 5,194 Competing with 2 main competitors, plus our own business = 5,194/3 ≈ 1,731

Business’s Target Customers

1731 19041

Target Customer/Month Target Customer/Year

54

Based on the statistic record of ice-cream consumption rate of Thai people (cited: Positioning Magazine http://www.positioningmag.com/prnews/prnews.aspx?id=47147), found that the ice-cream consumption rate has increased at 5% average/year. Then, we can assume that the customers and sales forecast will increase in consecutively. Together with our sales promotion and business uniqueness, thus we expect the customers’ basement will increase at a rate 15% (for year 2), 10% (for year 3), and 5% (for year 4 and 5). However, the sales varies and depends on market mechanism as it will rise and tap highest profits in the early stage and then decline unless we booth up the sales.

Increasing Trend in customers’ basement Year 1

=

20,772 (≈ 1,731/month)

Year 2

=

23,888 (≈ 1,991/month)

Year 3

=

26,277 (≈ 2,190/month)

Year 4

=

27,591 (≈ 2,299/month)

Year 5

=

28,971 (≈ 2,414/month)

Total Sales Year 1

=

5,534,150 baht

Year 2

=

7,942,950 baht

Year 3

=

6,578,700 baht

Year 4

=

7,208,615 baht

Year 5

=

6,444,350 baht

55

56

57

58

59

60

61

“Five years Sale Forecast

฿8,000,000

Year 1

฿7,500,000

Year 2

฿7,000,000

Year 3

฿6,500,000 ฿6,000,000

Year 4

฿5,500,000

Year 5

฿5,000,000

Year 1

Year 2

Year 3

Year 4

Year 5

62

3.5) Marketing Expenses (Sale Incentive) There are there types of expenses as following: •

Radio advertising ( Jingle In-Out)

•

101.25 MHz, MCOT radio station, Chiang Rai

•

95 baht/time

•

Radio announcement in order to promote our products brand and ice-cream products with the professional services, including the location of our ice-cream parlor, until start to finish the length is about 20 second. We are buying a monthly package for 4,000 Baht in first two month of operation.

•

Brochure

•

High season 600 baht/month

•

Low season 1,000 baht/month

•

Special Occasions 800 baht/month

•

Billboard advertising We have promoted our ice-cream parlor on the bill board for 3 billboards around Muang District. The amount of expense is about 30,000/year Baht.

63

•

Cost of theme changing within the parlor

•

Vintage Theme The vintage theme is the normal style of our ice-cream parlor when not during in the special occasions. The total cost of decoration is about 132,020 Baht (including tables, chairs, and decorative items).

64

•

Valentine’s Day Theme

The theme during Valentine festival, our parlor will be decorated by a pulling scene which reflects the loves mood. The total cost of decoration is about 30,000 Baht.

65

•

Halloween Theme

The theme during Halloween festival, our parlor will be decorated by a pulling scene which reflects the horror mood. The total cost of decoration is about 30,000 Baht.

66

•

Christmas Theme The theme during Christmas festival, our parlor will be decorated by a pulling scene which reflects the lovely mood. The total cost of decoration is about 30,000 Baht.

67

68

69

70

71

72

3.6) Conclusion in market feasibility From Dots ’n Cream’s Sales Forecast, we can assume that our business operation is manage and organized according to the seasoning and special occasions. There are three periods that we can achieve sales according to the business’s strategies. The first period is “all year round special occasions”, for instant, Valentine Festival, Halloween Festival, Christmas and New Year Celebration, etc. This period, our parlor will be decorated as well as service theme to make the customers feel more enjoyable and comfortable, thus, the sales volume is large along with great amount of profits. The second period, “summer time”, is the period when the sales volume is large due to the weather conditions which the temperature is high. Therefore, it is the time when people are searching for something to cool them down as well as the school’s summer break for children and teenagers. As a consequence, ice-cream is very preferable and that our business’s sales volume and the profits would be very high. The third period, “Rainy & Winter Season”, is the time when our sales are locates at a low or medium rate. It is generally the season that every ice-cream business won’t achieve sales volume as much as they want, including our business too. Therefore, we have to launch special promotions and/or campaign to booth up our sales. For instant, giving discount and advertising to make the sales and profits grow at a constant, generating our business with enough money to sustain the parlor and support them for future growth.

73

Chapter 4 Technical Feasibility Study

74

4.1) Production and Operation Analysis 4.1.1 Product Characteristics As everyone knows that Ice-Cream is a cold dessert and very popular among teenagers and family because of it’s luscious, sweet and it’s looks yummy. Therefore, a lovely or outstanding style of ice-cream is the most important factor when operating the ice-cream parlor because this can create the first impression of customers whether they’ll consume the ice-cream or not. Another important factor for creating customer’s impression is an ice-cream flavor which needs to be tasty; not too sweet and not too sour.

•

Chillz

•

Chocolate, all natural chocolate frozen dairy dessert. Made with Truvia all natural sweeteners. All natural, non-fat, lower calorie

•

Sour Blue Razz, Sour Razz Blue Raspberry Ice. Made with Truvia all natural sweetener. Naturally non-fat, lower calories, excellent source of vitamin C.

75

•

Wango Rainbo, a Tangy take-off on our Traditional Rainbow Ice. Made with Truvia all natural sweetener. Naturally non-fat, lower calories, excellent source of vitamin C.

•

Watermelon Ice, all the flavor of a juicy sweet Watermelon without the seeds.

•

Flavored Ice

•

Liberty Ice, a refreshing blend of Blue Raspberry, Strawberry and Lemon Ices.

•

Rainbow Ice, a fresh and fruity blend of Lemon, Lime, Orange, Strawberry and Blue Raspberry Ices.

•

Watermelon Ice, all the flavor of a juicy sweet Watermelon without the seeds.

•

Ice-Cream

76

•

Banana, a fund Banana Ice cream you’ll go ape over.

•

Banana Split, a blend of Vanilla, Chocolate, Banana and Strawberry Dots ‘n Cream.

•

Birthday Cake, sweet blend of white and yellow cake batter flavored Dots ‘n Cream Ice cream, Icing flavored Dots ‘n Cream Ice cream and Cake Bits. Birthday Cake contains Wheat Gluten and Soy.

•

Bubble Gum, a fun of blue, red and yellow Bubble Gum flavors.

•

Butter-Pecan, a sweet’ n salty blend of Butter Pecan Ice cream and Roasted Pecan pieces.

•

Can Bar Crunch, Vanilla and Chocolate Dots ‘n Cream with chocolate Coated Snickers piece. Candy Bar Crunch contains Peanut, Egg and Soy.

•

Caramel Brownie Sundae, Vanilla and Caramel Dots ‘n Cream with Brownie Chunks. Caramel Brownie Sundae contains Wheat Gluten, Egg and Soy.

•

Chocolate Chip Cookie Dough, Vanilla Dots ‘n Cream with of Chocolate Chip Cookie Dough. Chocolate Chip Cookie Dough contains Wheat Gluten and Soy.

•

Chocolate Cups.

•

Cookies ’n Cream w Oreo, Our most popular flavor. Vanilla Dots ‘n Cream with Oreo Cookie Pieces. Cookie ‘n Cream contains Wheat Gluten and Soy.

77

•

Cotton Candy, Sweet a childhood favorite with a creamy, sweet Ice cream flavor.

•

Mint Chocolate, Rich Chocolate and Crème de Mint Dots ‘n Cream.

•

Moose Tracks, Vanilla Dots ‘n Cream with Peanut Butter Cups and famous Moose Tracks Fudge.

•

Peach.

•

Peanut Butter Chip, Rich Chocolate and Peanut Butter Dots ‘n Cream Peanut Butter Chip contains Peanut.

•

Planet-51, “Alien green” vanilla Dots ‘n Cream with top-secret chocolate coated space rocks that crunch and pop.

•

S’Mores, A cozy blend of Marshmallows and Chocolate Ice creams with Graham Cracker Crumbles. S’Mores contains Wheat Gluten, Soy and Honey.

•

Strawberry, Fresh Strawberry flavored Dots ‘n Cream.

•

Tropical Tie Dye, An exotic of Banana, Orange, Kiwi Lime and Orange Passion Dots ‘n Cream.

•

Vanilla, Creamy Vanilla a traditional favorite done Dots ‘n Cream style.

•

No sugar add

78

•

No Sugar Added Fat Free Fudge, Delicious, rich, fudgey flavor. It’s Fat Free and No Sugar Added.

•

No Sugar Added Reduced Fat Vanilla, A healthy alternative to our traditional Vanilla Ice Cream. It’s Reduced Fat and No Sugar added.

•

Sherbet

•

Raspberry Sherbet, A tantalizingly tangy Red Raspberry flavor.

•

Lemon Lime Sherbet, A citrusy sweet combination of Lemon and Lime flavored Dots ‘n Cream.

•

•

Orange Sherbet, Orange flavored Dots ‘n Cream Sherbet.

Yogurt

79

•

Strawberry Cheesecake, A smooth and creamy blend of Strawberry and Cheesecake Yogurt Dots ‘n Cream.

•

Cone & Cup

Dots ‘n cream has several types of Cone and Cup which made from waffle, and we have provided these cups and cones in many different shapes and sizes.

•

•

Waffle Cone

•

Waffle Bowl

•

Sugar Cone

•

Cake Cone

Ice-Cream Toppings

There are many toppings for customers to choose and add on the top of icecream as their favorites. •

Sauces such as Chocolate, Strawberry, and Caramel

•

Fruits

•

Chocolate

•

Peanut

•

Whipping Cream

80

•

•

Cherry

•

waffle

•

Sprinkles

•

Gummy

•

M&M

Cost of Dots ‘n cream

Serve Here Small

79 ฿

Medium

99 ฿

Large

129 ฿

Take Home 3 oz. bowl

59 ฿

4 oz. bowl

69 ฿

5 oz. bowl

79 ฿

6 oz. bowl

89 ฿

Waffle Bowl

89 ฿

81

Add Toppings

19 ฿ / each

4.1.2 Service Process

Dots ‘n Cream has recognized the needs and expectation of customers to receive high quality of products and services. Therefore, we create the environment for our services in order to build the first impression of customers when entering to our ice-cream parlor.

82

•

Step of process services

•

The customers came into the Ice-cream parlor, looked for ice-

cream flavor and then made an order. •

Customers waiting for Ice-cream. During the time, they can

play internet or reading books as they want. •

The employee served the Ice-cream to customers, then they can

enjoy eating Ice-cream and also can still play internet or read magazines. •

The customers walk to counter and pay for their ice-cream.

4.1.3

Location Our ice-cream parlor is on the 2nd floor of Central Plaza, Chang Rai. It’s

located on Phaholyothin Road, Tumbon Rop Wiang, Muang District, Chiang Rai 57100.

83

•

Dots ‘n cream’s Map

4.1.4 Facility Layout

84

•

Pattern of Ice-cream parlor building structure

The Ice cream parlor has a wide side about 10 meters, 9 meters for length, and 3 meters for height. The total area within a parlor is 90 square meters approximately. The decoration of our parlor is mainly focus on the vintage style as usual, and using special theme services and wallpapers for decorating when there’s a special occasion. Besides wallpapers, our parlor use beautiful fresh flowers, painting, souvenir, and classical clocks for decoration.

•

Bookshelf Souvenir desk Pattern inside the Ice-cream parlor Table Sofa are counter and Our ice-cream parlor has divided the area into 3 parts which Chair ordering zone, ice-cream eating zone, and relaxing zone. The 1st zone, counter and ordering zone is use for showing ice-cream flavor as well as taking an order from Entrance

85

customers. The 2nd zone, ice-cream eating zone; this area is using by customers after they ordered an ice-cream (mostly use for served here service). The last one is relaxing zone; the customers can read books and magazines as if they want to, or even bring their laptop within the parlor to play internet by using our free Wi-Fi service.

4.1.5

Machine /Tools / Equipment

•

Within ice-cream parlor

•

Tables and chairs Price 4500 *9 = 40500

•

Sofa Price 24500 baht *2=49000

86

•

Bookshelf Price 2100*2=4200

•

Painting Price 1,000*8=8,000

•

Table Clothes Price 300*36=10,800

87

•

Table glass Price 8000 baht *2= 16000

•

Classical Clock Price 500, Artificial flowers & Vase Price

200*11=2200

•

Chandelier Price 13,000*2= 26,000, Down Light Price 220*12=2640

• •

Bath room

Basin Price 990 baht

88

•

Water closet Price 4,200 baht

•

Toilet paper Price 380 baht

•

Bin Price 300 baht 89

•

Bathroom door Price 1550 baht

•

Mirror Price 1,500 baht

4.1.6

Logistics Management

90

Logistics Management is the processes involved in planning, implementation and control of the organization including management of financial information related to the movement of storage, collection, distribution and a raw material component.

Dots ‘n cream has imported the ice-cream making machines from Henry & Mickey Company USA Inc., USA and also bought some equipments from Sa-ShaTung-Nguan-Heng Shop where locates on 24-26 Anuwong Road, Jackawat district, Samphanthawong, Bangkok 10100.

Dots ‘n cream has ordered raw materials and ingredients from the manufacturers directly because our ice-cream parlor is concerning on high quality of products by using fresh and clean ingredients to make ice-cream. For instance, we bought fresh fruits directly from the garden such as strawberry and bananas as well as bought fresh milk from farm.

4.1.7

Facility Management

91

4.1.8

•

Machine /Tool /Equipment

Normal ice-cream maker Price 25,750 baht

GELATO OXIRIA, more powerful, professional very simple to use. No prefreezing necessary makes perfect homemade ice-cream, sorbets and frozen yoghurts in just 20/40 minutes. Fixed and removed bowl for large quantities and different flavors.

•

Nitro cream machine Price 1,050,000 Baht

92

The N2-3000, Liquid Nitrogen Ice-cream machine. It was a lilt head version that for the most part worked quite nicely. It could be mounted on a portable cart on a permanent counter. Each machine ran off its own liquid nitrogen Dewar and could make a custom Ice-cream, gelato, frozen yogurt or sorbet in about 60 seconds based on your desires.

•

Batch machine Price 110,950 Baht

LB-502, Serving capacity of up to 25 gallons per hour. For producing premium hard Ice-cream, Italian ices and sorbets. Carpigiani batch freezers are the preferred choice of executive chefs worldwide, bar none.

93

•

Topping flavor/flavor rails Price 138,540 baht

Flavor-Rails are where the toppings are housed. Strawberry, chocolate syrup, pineapple, etc. The rail houses the toppings and the cabinet is actually an additional freezer compartment. It’s great for back-up cans as well as the basic flavors used in shakes and sundaes (usually vanilla, chocolate and strawberry will be dipped out of this cabinet) Specifications Ship weight Cu.Ft.capacity Total 3 gallon ice cream tubs Compression Amps Electric

•

BDF 10 370 23 25 1/3 h.p. 8 115v.

Glass of Ice cream Price 642 per dozen (*10= 6,420)

94

•

Scooping of Ice-cream Price 600 (*5=3000)

•

Spoon for Ice-cream 155 per dozen (*10= 1550)

95

4.2) Cost of investment 4.2.1

Pre-operating cost

Dots ‘n Cream Billboard is made by Cando Advertising. It’s located on 139/3 moo19, Tumbon Rop Wiang, Muang District, Chiang Rai 57100. (Tel: 053-748755-6 and Fax: 053-601153). The type of billboard is stainless and silver color. The total price is 21,000 baht.

•

Shareholder as follows:

1). Mr. Nattapon Kitudom - 27 years old, Thai Nationality

96

- 471/2 Fah Thai Village, Tumbon Thasud, Muang District, Chiang Rai 57100 - Capital Investment; 550,000 = 18.33%

2). Miss Patcharaporn Morsart - 26 years old, Thai Nationality - 47 moo 12, Champawai district, Muang, Phayao 56000 - Capital Investment; 550,000 = 18.33% 3). Miss Sasiprapha Nonpayom - 28 years old, Thai Nationality - 420/5 moo.11, Thasud, Muang District, Chiang Rai 57100 - Capital Investment; 800,000 = 26.68% 4). Miss Sudtida Kerdkaew - 25 years old, Thai Nationality - 420/6 moo.11, Thasud, Muang District, Chiang Rai 57100 - Capital Investment; 550,000 = 18.33 % 5). Miss Wannaporn Chawalitwongporn - 27 years old, Thai Nationality - 52 moo.4, Tumbon Maifadd, Sikuo District, Trang 92150 - Capital Investment; 550,000 = 18.33% 97

** The total capital investment is 3,000,000 = 100% 4.2.2 Table of Cost of Investment No 1.

Description

No. Product

Price/Unit

Total

3

11,200

33,600

1

11,055

11,055

Billboard (including tax)

2.

Company Limited Registration

Total

•

44,655

Cost of Transparent Mirror

- In front of store - (8m. x 3 m) = 24m ~ 78.73 feet - Door swing (2m x 3m) = 6 m ~ 19.68 feet - Total size of transparent mirror in front of store is (78.73 feet -19.68 feet)=59.05 feet Cost is 59.05 feet x 200/feet = 11,810 baht

98

• Cost of Swing Door 4..

2 m x 3 m = 6 m ~ 19.68 feet = 4,000 baht

• Internet Wi-Fi cost Our ice-cream parlor will set up the internet Wi-Fi by ourselves because the method of setting are quite easy, thus one of our partnership can setting internet Wi-Fi in our parlor. In the method of setting we need to purchase only router wireless which price is about 2,000 baht.

99

• Air conditioner (Free setting cost) 4..

Samsung AS24-ELN #- 24000 BTU Price 28,500*2=57000 Baht

• Cost of Decoration Pulling theme setting

4..

Our ice-cream parlor has four different pulling themes which change four times per year consist of Valentine’s Day, Halloween, and Christmas and Vintage theme. The pulling themes will order from Mangraicurtain shop, where located at144/5 Moo.1 Phahonyothin Road, Ban Du District, Chiang Rai. Tel: 665-370-2689, Mobile phone 668-1952-3988. •

Valentine’s Day

•

Halloween,

•

Christmas.

•

Vintage theme

30,000 baht per theme

Table 4.2: Cost of Decoration

No 1 2

Descript Pulling theme setting Employees’ costumes

No. product 4 20

Price per unit 30,000 1,000

Total 120,000 20,000 100

Total

140,000

4.3) Investment Cost 4.3.1 Equipment & Tools Table 4.3: Total of office element No.

Description

No.

Price/Unit

Total

Product

1

Computer

1

14,200

14,200

2

Cashier Machine

1

16,800

16,800

3

Telephone

1

590

590

4

Wi-Fi Router

1

2,000

2,000

5

Calculator

1

120

120

6

Chandelier

2

13,000

26,000

7

Down Light

12

220

2,640

8

Book Shelf

2

2,100

4,200

9

Tables and chairs

9

4,500

40,500

10

Painting

8

1,000

8,000

11

Classical Clock

1

500

500

12

Bin

2

300

600

13

Table Glass

2

8,000

16,000

14

Table Clothes

36

300

10,800

15

Sofa

2

24,500

49,000

16

Artificial flowers & Vase

11

200

2,200

17

Ice-cream dipping cabinets

1

52,200

52,000

18

Air Conditioner

2

28,500

57,000

19

Topping flavor/flavor rails

1

138,540

138,540

20

Counter

1

16,500

16,500 101

Total

458,190

Table 4.4: Total of kitchen equipments No.

Description

No.

Price/Unit

Total

Product 1

Glass of Ice cream/dozen

10

642

6,420

2

Scooping of Ice-cream

5

600

3,000

3

Spoon for Ice-cream/dozen

10

155

1,550

4

Batch machine

1

110,950

110,950

5

Nitro cream machine

2

1,050,000

2,100,000

6

Normal ice-cream maker

1

25,750

25,750

7

Waffle Cone Baker

2

8,200

16,400

8

Glass

50

19

950

9

Kitchen Sink

1

7,390

7,390

Total

2,272,410

Table 4.5: Total of bathroom equipment No.

Description

No.

Price/Unit

Total

Product 1

Mirror

1

1,500

1,500

2

Bin

1

300

300

3

Basin

1

990

990

4

Water Closet

1

4,200

4,200

5

Bathroom Door

1

1,550

1,550

6

Toilet Paper

1

380

380

Total

8,920

102

103

104

105

4.4) Management Analysis 4.4.1

Organization Management

Dots ’n Cream need to manage the organization by register Dots ’n Cream store to company limited. We have to contact with Register Partnership Firm Department, where located in Office of Commercial Affairs Chiang Rai in order to establish the company limited. After we registered company limited already, we need to pay tax in form of corporate income tax. Company limited is one kind of company which forms of a capital can divided into equal shares and the liability of the shareholders. When we establish the company limited, we need to have at least 3 persons to sign the contract together in order to prepare Memorandum and register after that. Upon receiving the amount of shares, the director need to register as the company within 3 months from the date which company has meeting in the topic of establish the company. The name list of partnerships who invest with Dots ’n Cream Company as follows: 1). Miss Wannaporn

Chawalitwongporn

2). Miss Patcharaporn

Morsart

3). Mr. Nattapon

Kitudom

4). Miss Sasiprapha

Nonpayom

5). Miss Sudtida

Kerdkaew

All partnerships of Dots ’n Cream Company had voted Miss Sasiprapha Nonpayom to be Chief Executive Officer of Dots ’n Cream Company limited. She has responsible to register the store to be company limited at Office of Commercial Affairs Chiang Rai.

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Moreover, she has to control and maintain tidiness in the company and also has an authority to inspect all of document which related to operations in the company.

4.4.2

Organization Chart

Chief Executive Officer (1 position)

Accounting Department (1 position)

Sale & Marketing Department (1 position)

Cashier (1 position)

General Management Department (1 position)

Purchasing & Producing Department (1 position)

Waiter/Waitress (2 position)

•

Ice-cream Maker (2 position)

People in organization Dots ‘n Cream Company Limited have total of employee amount 10 people,

below is to describe task and characteristic of employee in each position.

1. Chief Executive Officer ( 1 position)

Task

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-

Oversee all department and along with to sign in that agreement documents

Characteristic -

Male / Female age 25 up

-

Bachelor degree up and work experience must more than 2 years

-

Can use with best Microsoft Office such as Word Excel

-

Have good management skill and good relationship

2. Accounting department ( 1 position )

Task -

Work that relate to financial and accounting

-

To analysis the liquidity of money

-

To planning money

-

Manage and control budget of company

Characteristic -

Female age 24-30 year

-

Graduated high vocational or bachelor degree in account major

-

More than 1-2 year of work experience that relate to finance

-

Computer skill the especially Excel and Express

108

-

Can analysis the liquidity and finance of company

-

Be carefully detailed person and good understanding the principle of financial and accounting.

-

Have patience, enthusiasm and integrity.

-

To be honest on work

-

Cashiers total bill

-

Receive money

2.1 Cashier Task

Characteristic -

Female age 24-30 year

-

2 year experience

-

Responsibility for the timely and friendly greeting and seating of guests.

-

Greets guests upon arrival with a smile.

-

Thanks guests upon departure with a smile and sincere invitation to return.

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-

Cash handling

-

To be honest on work

3. Sale and Marketing department ( 1 position ) Task -

Do marketing and advertising

-

Analysis market trend from seasoning

-

Managing for product and service to customer satisfaction

-

Continuous to fine new customer

Characteristic - Male / Female age 24-30 - Bachelor degree with the major is marketing or relate major - Work experience more than 2 year - Can use computer program - Have negotiation skill, good personality and relationship

4. General management department (1position) Task -

Training the employee

-

Control work of employee to be system and effective

-

Prepare for company working plan

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-

Selection new employees into the appropriate position

Characteristic -

Male age 24-30 year

-

Graduate bachelor degree in school of management

-

Work experience in Middle Management more than 2 year

-

Have computer skill

-

Cando many works in the same time

-

Have high responsibility in task and high relationship

-

Good communicate to work with other person

4.1 Waiter / Waitress Task -

Service excellence

Characteristics -

Ensure service for tables assigned

-

Take order by standard

-

Clearing tables

-

Has to know about product menu

-

Handles guest request in a courteous manner repeating their request to make sure that guest’s message was properly understood

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-

Cleaning a cross in service

-

Show product and products to look beautiful

5. Purchasing and producing Department Task -

Purchasing and producing everything in company

Characteristic -

Male / female age 25-35 year

-

Bachelor degree or higher in BBA or relate filed

-

Experience purchasing management at least 3 year up

-

Good command in working under pressure and hard working

-

Good command in English

5.1 Ice-cream maker Task -

Make ice-cream by standard

Characteristic -

Make Ice-cream by order

-

Record production and test data for each product

-

Clean processing area

-

Check equipment and material always be neat 112

4.4.3

•

Administration Cost

Employee Salary

Wages rate for our company 1). General Manager

1 person

15,000 baht

2). Accounting and Cashier

1 person

12,000 baht

3). Sale and Marketing Manager

1 person

12,000 baht

4). Ice-Cream maker

2 persons

24,000 baht

2 persons (2*6,000)

12,000 baht

- Waiter/Waitress Total salary expense/month

•

75,000 baht

Rental Fee Our company have signed an annually rental contract with the owner of

Central Plaza, Chiang Rai to rent 90 square meters on the 2nd floor of the building for operating the ice-cream parlor for 5 years. The contract states that we have to pay a rental fee during the first month of every year; starts from January 2011. In addition, a rental fee is about 15,000*12 = 180,000 baht/year.

•

Electricity expense / month 22 meters pressure in the normal rate

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•

•

Estimate use of electricity 1,500 unit x 2.4649

=

3,697.35 baht

Add. (+) Service expense

=

228.17 baht

Total Electricity expense / month

=

3,925.52 baht

Water expense / Month 1000 liter

= 1 Cubic meters

Fore cast use 20 cu.m/month x 10.7baht

= 214 baht

Add. (+) General Service

= 30 baht

Add. (+) VAT 7%

= 11.235 baht

Total water expense/month

= 255.235 baht

TT&T telephone expense/month Telephone expense

500 baht/month

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*Remark (2baht/Minutes) and free 590 baht for call with in Thailand Maintenance costs

100 baht/month

Total telephone expense/month

600 baht/month

Monthly Fee Local call

TT&T package 100 baht 3 baht per call

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4.5) Technical Feasibility Conclusion Dots ’n cream have provided several of quality ice-cream and also professional services to the customer. Our product divided into six types which are Chillz, Flavored Ice, Ice-Cream, No sugar add, Sherbet and Yogurt. The customers can order what they want or even create their own recipes of ice-cream by themselves. Moreover, Dots ‘n Cream has provided theme services to the customer; therefore made them satisfy with our services and our professional service comes from working with naturally friendly people well trained in all aspects of operating on ice cream parlor. They have strived to meet each client's specific needs in planning for the future and achieving their goals in an ever-changing. Our store has located in Central shopping mall, where locate in famous super center in Chiang Rai and also nearby the Super-hi way road. It makes convenient for the customer who come to Central shopping mall and come to consume and purchase the ice-cream at our ice-cream parlor. In part of management, we can divide into two operation period time, which are pre-operation period and operation time period. The first one, pre-operation period need to concern about making decision in part of total cost of setting equipments in company, total cost of interior store, and company limited registration cost. However, in part of company limited registration, we will contact with commercial Affairs Chiang Rai in order to register to be limited company. The second, operation time period will include many expenses, such as utility expense per month in store and administration cost per month, and including employee salary.

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Chapter 5 Financial Analysis

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Chapter 6 Risk Management

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6.1 Risk analysis Risk is the quantifiable likelihood of loss or less-than-expected returns or situation dissatisfaction which happen in the future and impact or operation weren’t successful the objective and goal of organization (RMUTLL, 2009). Dots ’n cream company have divided the analysis into 2 factors, which are internal forces and External forces both operations financial and administration strategy which may be positive affect by measured the impact got from likelihood situation. 6.1.1 External Forces Dots ’n cream company has risk that caused by external forces which our company can’t predict and control. So our company has already planed in order to prevent the risk that may happened which cause by external factor and also support the risk that Dots ’n cream company will confront in the future for the risk that will happen from external factors as follow: 1. Changing in Technology Now technology of ice-cream machine is rapidly changing because have more shop or company which interested to perform the ice-cream business and also have high competitive in ice-cream industry. So, technology of ice-cream machine is also developing as follow as the situation of ice-cream business in order to compete each other. For Dots ’n cream company is the first ice-cream parlor in Thailand which the shape of ice-cream have the uniqueness, so we have to use Nitrocream machine which import from USA in order to produce dots ice-cream. Thus, our company quite not concern about changing in Technology because our ice-cream maker is the newest technology in Thailand.

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2. Changing in Customer Need In the future the demand of customer in consuming our ice-cream may change all the time because of the Customer Need can change which depend on their preferred. The customer may prefer the new things or variety icecream flavors. This is direct risk that may affect to our business and also make us loss sales and revenues of our company. Therefore, Dots ’n Cream Company need to manage the risk in order to cope with changing in customer demand. Our ice-cream parlor should set up the strategy to support this problem by planning and preparing the new ice-cream flavors that we will produce and present to the customer in the future in order to maintain the existing customer and also attracted the new customer. 3. Economic Condition The economic problem is a big problem in Thailand. Its affect to the customer population has decreased significantly. Investment in private is lower all over investment in country and foreign country, public spending that reduced because of lower revenues. So the people must be more carefully in spending its make the purchase are decrease (Eureka, 2008). This problem are risk that affect to decrease sales. From the reasons above, Dots ’n Cream Company need to manage the risk by setting the strategy appropriately by set up theme service in order to promoting our ice-cream parlor during the special occasion for increase sales and revenue. Moreover, Dots ’n Cream Company also provided variety dots ice-cream and topping for respond to all kind of customer demand.

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4. Competitive Condition There are many entrepreneurs in Chiang Rai who interested to perform this kind of business. Because of Dots ’n cream company is the first ice-cream parlor in Thailand which the shape of ice-cream is in form of dots, so we have the competitive advantage when compare with our indirect competitors. However, in the future may have the competitors who perform the dots ice-cream business same our parlor. Therefore, Dots ’n cream company must to determine strategy in order to competing with the competitors in the market by looking for the opportunity to create the differentiation in our products & services, prices, place and promotion.

6.1.2

Internal Forces Internal forces are many causes including as operating risk which executive

can look and control because these risk is under operating of Dots ’n cream company. Internal forces as follows as: 1. Human Resources The risk maybe occurs with employee of Dots ’n cream which every organization must be confronting with risk. The recruitment employee in each position can make risks. Dots ’n cream tackle the problem risk that may arise by receive the employee have the qualification must be completed the secondary school education, service mind, have skills to work. In the manager the Graduate degree and have the experience in management of two years, have the personality and leadership to solve problem immediate as well.

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2. Integrity Risk The honesty and integrity of employees is an important risk for organization. If the employee is not the honest and responsibility in their duties, in what has already been assigned. Then, there is not trust between the employer and employee. Therefore, Dots ’n cream set the rules, policy to provide our staff to follow so that employees can work effectively.

•

Employee Fraud

The employees of each position have duty to responsibility for working. Therefore, the employees must do their best and honest work assignments. If there is employee fraud which it affect to organization as follows: •

Marketing department

An employee in this department is responsible for promoting the store for the customers, and the employees need to impress in customer service for customer satisfaction in our services. But in this department maybe occur employee’s fraud. So, the employees should be record the information day to day to the accuracy of the information. It should to do work together as a team to unity and creating high quality •

Accounting department

Employees are responsible to made the financial and accounting, employee fraud will often happen easily because the employees in this department maybe fail to calculate and record accounting, so there is always submit to manager for checking in every time.

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3. Time management risk When there are many customers come to store therefore, the employees must manage the time and must have a higher responsibility. So, these might cause the problems of time management and other of problems as following: •

Delivery delays

When there is a delay, the store will get dissatisfaction and lose of trust from the customer. Sometimes the customer change from our store to the shop of the competitors, so this problem is causes of decrease our revenue. Solution: The shop, we provide the various zones to provide the customer for waiting while the employee will be available.

4. Financial Risk Financial management is important part of the project that we needs to be managing with circumspection because the financial risk can affect to the operations of our business

Decrease in sale - If the company’s total sale decreases by 2%, it will affect to our company’s sale revenue as follow: Year 2011 sale revenue is

5,423,467

Baht 139

Year 2012 sale revenue is

7,784,091

Baht


6,447,126

Baht


7,064,443

Baht


6,315,463

Baht

- If the company sale revenue decreases by 2%, it will affect to our company’s net income as follow: Year 2011 Net income is

40,929

Baht

Year 2012 Net income is

1,933,281

Baht


602,155

Baht


1,364723

Baht


619,870

Baht

Therefore, if company’s total sale decrease by 2%, it can be affect to our company’s sales volume, profit and so on. Because of our company haven’t loan from the bank, so we have not concern about the payback period By the way when the total sale are decrease by 2%, we should thinking about some strategy that will increasing the total sale. If we haven’t created some strategy to support the reduction of sales, we should thinking about the ways to decrease some cost of our operation instead.

- If the company’s total sale decreases by 3%, it will affect to our company’s sale revenue as follow: Year 2011 sale revenue is

5,368,126

Baht


7,784,091

Baht


6,381,339

Baht


6,992,356

Baht

140


6,251,020

Baht


40,511

Baht


1,913,553

Baht


596,009

Baht


1,350,803

Baht


684,810

Baht

Therefore, if company’s total decrease by 3%, it can be affect to our company’s sales volume, profit and so on. Because of our company haven’t loan from the bank, so we have not concern about the payback period on accounting, anyway when the total sale are decrease by 3% we should thinking about the strategy that make our company return to normal sale volume. We will use the offensive strategy and gain the attractive marketing to motivate the customers.

- If the company’s total sale decreases by 4%, it will affect to our company’s sale revenue as follow: Year 2011 sale revenue is

5,312,784

Baht


7,625,232

Baht


6,315,552

Baht


6,920,270

Baht

141


6,186,576

Baht


40,093

Baht


1,893,825

Baht


589,865

Baht


1,336,877

Baht


677,750

Baht

Therefore, if company’s total sale decrease by 4%, it will affect to our company’s sales volume, profit and so on. Because of our company haven’t loans from the bank, so we have not concern about the payback period on accounting. However, when the total sale is decrease by 4% we should thinking about the ways to reduce some cost.

Decrease in Total sales between years 2011-2015

10,000,000 8,000,000

2011

6,000,000

2012 2013

4,000,000

2014

2,000,000

2015

0 2%

3%

4%

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The statistic of sales decrease will present about the period of business solved or renew the strategy. Food Empire company will use operated it as followed by the situation of sales decrease 2%, 3% and 4%.

Increases in interest rate Dots ’n cream company haven’t loan money from the bank, so we haven’t the risk that will occurred by increasing about interest rate.

6.2 Conclusion of Risk Management Risk is the opportunity that Dots ’n cream can be get loss income or the business can’t operate successfully in order to achieve the gold. The risk of our company can divide to two parts, which are the risk from external factor and internal factor. The external factor risk is hard to predict and difficult to control such as Technology risk, economic risk, changing in demand of customer risk and including competitor risk. In part of internal factor risk is the problem that we need to encounter within the organization, and it is also the risk that we can control, such as integrity risk, human resources risk, employee fraud risk, and time management risk. The last risk is financial risk. If our income is reducing, it means directly effect to our company’s income. In the same times, if our company expense increase, it also effect to our company too. In part of interest rate, because of our company haven’t loans from bank, so we are not concerning about the payback period on accounting. Therefore, financial risk is very important to our company in order to predict the risk that will occurred in the future. We should maintain and control cost of our company. In addition, we should to develop the marketing strategy of company in order to

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attract more customers, by increase our company net income our business can continue to run the business and can be survive from the difficult situation.

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Chapter 7 Summary

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7.1) Summary of project feasibility study

Ice cream or ice-cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavors. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavorings and colorings are used in addition to (or in replacement of) the natural ingredients. This mixture is stirred slowly while cooling to prevent large ice crystals from forming; the result is a smoothly textured ice cream. According to hot weather in Thailand, we realized that it must be a good chance for our company to conduct a new type of ice-cream business because there’re so many people who love to consume cold desert such as ice-cream and it can be sold throughout the year. In addition, while parlors remain open all year round in warmer weather locations, most parlors are open during warmer months, particularly from March to November, in colder weather locations, though some do stay open year round. Parlors vary from having an order-up window with outside seating to an entire indoor location. In the present, most of ice-cream parlors have provided full-services toward customers such as internet Hi-Fi, reading corner altogether with newspaper and magazines, rest rooms, etc. However, we chose Chiang Rai as our first parlor because Chiang Rai is becoming a popular tourist destination in Thailand. Moreover, we have a roughly surveyed the ice-cream market in Chiang Rai and found that most of the firm who’s conducting this type of business; both local ice-cream shop as well as branded shop have sold the traditional ice-cream which is the same style and shape. Because of this reason, our company then has an inspiration to conduct this kind of business but in a difference shape & style of ice-cream which is dots or other shape of ice-cream during special occasions.

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In order to make a homemade ice-cream, our company has imported an icecream machine from USA which is Nitrocream because it is a special machine that can cut an ice-cream into a small pieces or dots and also bought other necessity equipments such as ladles, pots, balance, fruits churn, cup & bowl, spoon, etc. Moreover, main ingredients are very important for production process such as milk, fat, sugar, mineral water, fruits, honey, olive oil, cream, etc. About the core services of our Ice-cream parlor has included providing variety of theme services according to special occasion altogether with reading corner and Wi-Fi which will make customers feel relax and satisfy with the services. About the economic climate, the trend of ice-cream parlor has become more popular in the country because of its products, services and the atmosphere within the shop which makes customers feel relaxes and comfortable as it was their home. The ice-cream parlor‘s providing extra services toward customers with non-payment for those services but products. Moreover, the competition of ice-cream industry is in high level according to the economic conditions and expanded customer base. Nowadays the market expansion made customer focused more on various theme services as well as the promotion set of ice-cream which is offer in a special occasions; this is another factor that makes ice-cream business more expands. Because of our business “Dots ’n Cream” have uniqueness in products and services which is very different from other competitors. Therefore, we haven’t had a direct competitor to compete in our business; however we have had indirect competitors instead. Our indirect competitors can be divided into two groups which are branded ice-cream and local ice-cream. The branded ice-cream is Swensen’s and Dairy Queen, and the local ice-cream is Huck and Lung Chom ice-cream. Even

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though these businesses are very popular and well-known among Chiang Rai resident, but we are so sure that our company must be enter to ice-cream market easily because we have provided the uniqueness of ice-cream products and services. From sale forecast of Dots ‘n Cream in each year, it can clearly represents that seasonality and special occasion are the main factors that influenced the total sales for our company such as on Valentine’s Day, Halloween, and Christmas. During these period of time, the sales are dramatically increased because customers always want to experience with variety of theme services, therefore it makes Dots ‘n Cream parlor increase in growth rate rapidly and increasing of trend of the total sales in every year.

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Appendix

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Nature of Ice-cream (More) Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavors. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavourings and colorings are used in addition to (or in replacement of) the natural ingredients. This mixture is stirred slowly while cooling to prevent large ice crystals from forming; the result is a smoothly textured ice cream. The meaning of the term ice cream varies from one country to another. Terms like frozen custard, frozen yogurt, sorbet, gelato and others are used to distinguish different varieties and styles. In some countries, like the USA, the term ice cream applies only to a specific variety, and their governments regulate the commercial use of all these terms based on quantities of ingredients.[1] In others, like Italy and Argentina, one word is used for all the variants. Alternatives made from soy milk, rice milk, and goat milk are available for those who are lactose intolerant or have an allergy to dairy protein, or in the case of soy and rice milk, for those who want to avoid animal products.

http://en.wikipedia.org/wiki/Ice_cream

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History Precursors of ice cream An ice-cream store in Damascus, Syria In the Persian Empire, people would pour grape juice concentrate over snow - in a bowl - and eat this as a treat. In particular this was consumed when the weather was hot. Either snow would be saved in the cool-keeping underground chambers known as "yakhchal" or taken from fresh snow that may still have remained at the top of the mountains by the summer capital - Hagmatana, Ecbatana or Hamedan of today. In 400 BC, the Persians went further and invented a special chilled food, made of rose water and vermicelli which was served to royalty during summers.[2] The ice was mixed with saffron, fruits, and various other flavours. Ancient civilizations have served ice for cold foods for thousands of years. The BBC reports that a frozen mixture of milk and rice was used in China around 200 BC.[3] The Roman Emperor Nero (37–68) had ice brought from the mountains and combined with fruit toppings. These were some early chilled delicacies.[4] Arabs were the first to use milk as a major ingredient in its production, sweeten the ice cream with sugar rather than fruit juices, as well as perfect ways for its commercial production. As early as the 10th century, ice cream was widespread amongst many of the Arab world's major cities, such as Baghdad, Damascus and Cairo. Their version of ice cream was produced from milk or cream and often some yoghurt similar to Ancient Greek recipes, flavoured with rosewater as well as dried fruits and nuts. It is believed that this was based on older Ancient Arab, Mesopotamian, Greek or Roman recipes, which were probably the first and precursors to Persian faloodeh. In 62 AD, the Roman emperor Nero sent slaves to the Apennine mountains to collect snow to be flavoured with honey and nuts.[5]

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Maguelonne Toussaint-Samat asserts in her History of Food, "the Chinese may be credited with inventing a device to make sorbets and ice cream. They poured a mixture of snow and saltpetre over the exteriors of containers filled with syrup, for, in the same way as salt raises the boiling-point of water, it lowers the freezing-point to below zero."[6][7] (Toussaint does not provide historical documentation for this.) Some distorted accounts claim that in the age of Emperor Yingzong, Song Dynasty (9601279) of China, a poem named "詠冰酪" (literally Ode to the ice cheese) was written by the poet Yang Wanli. Actually, this poem was named "詠酥” (literally Ode to the pastry, 酥 is a kind of food like pastry in the western world) and has nothing to do with ice cream.[8] It has also been claimed that, in the Yuan Dynasty, Kublai Khan enjoyed ice cream and kept it a royal secret until Marco Polo visited China and took the technique of making ice cream to Italy. Others[who?] have argued that the Chinese didn't drink milk during that period, whereas the Italians had arguably been making something resembling ice cream before Marco Polo returned to Italy. In any case, no known ice cream recipes appear to stem from ancient Chinese sources.

In the sixteenth century, the Mughal emperors used relays of horsemen to bring ice from the Hindu Kush to Delhi, where it was used in fruit sorbets.[9] When Italian duchess Catherine de' Medici married the duc d’Orléans in 1533, she is said to have brought with her Italian chefs who had recipes for flavoured ices or sorbets, and introduced them in France.[10] One hundred years later, Charles I of England was supposedly so impressed by the "frozen snow", he offered his own ice cream maker a lifetime pension in return for keeping the formula secret, so ice cream could be a royal prerogative.[11] There is no historical evidence to support these legends, which first appeared during the 19th century. The first recipe for flavoured ices in French appears in 1674, in Nicholas Lemery’s Recueil de curiositéz rares et nouvelles de plus admirables effets de la nature.[10] Recipes for sorbetti saw publication in the 1694 edition of Antonio Latini's Lo Scalco

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alla Moderna (The Modern Steward).[10] Recipes for flavoured ices begin to appear in François Massialot's Nouvelle Instruction pour les Confitures, les Liqueurs, et les Fruits starting with the 1692 edition. Massialot's recipes result in a coarse, pebbly texture. Latini claims that the results of his recipes should have the fine consistency of sugar and snow.[10]

True ice cream Ice cream recipes first appear in 18th century England and America. A recipe for ice cream was published in Mrs. Mary Eales's Receipts in London 1718.[12] To ice CREAM. Take Tin Ice-Pots, fill them with any Sort of Cream you like, either plain or sweeten'd, or Fruit in it; shut your Pots very close; to six Pots you must allow eighteen or twenty Pound of Ice, breaking the Ice very small; there will be some great Pieces, which lay at the Bottom and Top: You must have a Pail, and lay some Straw at the Bottom; then lay in your Ice, and put in amongst it a Pound of Bay-Salt; set in your Pots of Cream, and lay Ice and Salt between every Pot, that they may not touch; but the Ice must lie round them on every Side; lay a good deal of Ice on the Top, cover the Pail with Straw, set it in a Cellar where no Sun or Light comes, it will be froze in four Hours, but it may stand longer; than take it out just as you use it; hold it in your Hand and it will slip out. When you wou'd freeze any Sort of Fruit, either Cherries, Raspberries, Currants, or Strawberries, fill your Tin-Pots with the Fruit, but as hollow as you can; put to them Lemmonade, made with Spring-Water and Lemmon-Juice sweeten'd; put enough in the Pots to make the Fruit hang together, and put them in Ice as you do Cream. The earliest reference to ice cream given by the Oxford English Dictionary is from 1744, reprinted in a magazine in 1877. 1744 in Pennsylvania Mag. Hist. & Biogr. (1877) I. 126 Among the rarities..was some fine ice cream, which, with the strawberries and milk, eat most deliciously.[13] The 1751 edition of The Art of Cookery made Plain and Easy by Hannah Glasse features a recipe for ice cream. OED gives her recipe: H. GLASSE Art of Cookery (ed.

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4) 333 (heading) To make Ice Cream..set it [sc. the cream] into the larger Bason. Fill it with Ice, and a Handful of Salt.[13] 1768 saw the publication of L'Art de Bien Faire les Glaces d'Office by M. Emy, a cookbook devoted entirely to recipes for flavoured ices and ice cream.[10] Ice cream was introduced to the United States by Quaker colonists who brought their ice cream recipes with them. Confectioners sold ice cream at their shops in New York and other cities during the colonial era. Ben Franklin, George Washington, and Thomas Jefferson were known to have regularly eaten and served ice cream. First Lady Dolley Madison is also closely associated with the early history of ice cream in the United States. One respected history of ice cream states that, as the wife of U.S. President James Madison, she served ice cream at her husband's Inaugural Ball in 1813. Around 1832, Augustus Jackson, an African American confectioner, not only created multiple ice cream recipes, but he also invented a superior technique to manufacture ice cream.[14] In 1843, Nancy Johnson of Philadelphia was issued the first U.S. patent for a smallscale handcranked ice cream freezer. The invention of the ice cream soda gave Americans a new treat, adding to ice cream's popularity. This cold treat was probably invented by Robert Green in 1874, although there is no conclusive evidence to prove his claim.

The ice cream sundae originated in the late 19th century. Several men claimed to have created the first sundae, but there is no conclusive evidence to back up any of their stories. Some sources say that the sundae was invented to circumvent blue laws, which forbade serving sodas on Sunday. Towns claiming to be the birthplace of the sundae include Buffalo, New York; Two Rivers, Wisconsin; Ithaca, New York; and Evanston, Illinois. Both the

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ice cream cone and banana split became popular in the early 20th century. Several food vendors claimed to have invented the ice cream cone at the 1904 World's Fair in St. Louis, MO.[15] Europeans were eating cones long before 1904.[16][17] In the UK, ice cream remained an expensive and rare treat, until large quantities of ice began to be imported from Norway and the US in the mid Victorian era. A SwissItalian businessman, Carlo Gatti, opened the first ice cream stall outside Charing Cross station in 1851, selling scoops of ice cream in shells for one penny.[18] The history of ice cream in the 20th century is one of great change and increases in availability and popularity. In the United States in the early 20th century, the ice cream soda was a popular treat at the soda shop, the soda fountain, and the ice cream parlor. During American Prohibition, the soda fountain to some extent replaced the outlawed alcohol establishments such as bars and saloons. Ice cream became popular throughout the world in the second half of the 20th century after cheap refrigeration became common. There was an explosion of ice cream stores and of flavours and types. Vendors often competed on the basis of variety. Howard Johnson's restaurants advertised "a world of 28 flavours." Baskin-Robbins made its 31 flavours ("one for every day of the month") the cornerstone of its marketing strategy. The company now boasts that it has developed over 1000 varieties. One important development in the 20th century was the introduction of soft ice cream. A chemical research team in Britain (of which a young Margaret Thatcher was a member)[19][20] discovered a method of doubling the amount of air in ice cream, which allowed manufacturers to use less of the actual ingredients, thereby reducing costs. It made possible the soft ice cream machine in which a cone is filled beneath a spigot on order. In the United States, Dairy Queen, Carvel, and Tastee-Freez pioneered in establishing chains of soft-serve ice cream outlets. Technological innovations such as these have introduced various food additives into ice cream, notably the stabilizing agent gluten,[21] to which some people have an

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intolerance. Recent awareness of this issue has prompted a number of manufacturers to start producing gluten-free ice cream.[22] The 1980s saw a return of the older, thicker ice creams being sold as "premium" and "superpremium" varieties under brands such as Ben & Jerry's and Häagen-Dazs. Production Before the development of modern refrigeration, ice cream was a luxury reserved for special occasions. Making it was quite laborious; ice was cut from lakes and ponds during the winter and stored in holes in the ground, or in wood-frame or brick ice houses, insulated by straw. Many farmers and plantation owners, including U.S. Presidents George Washington and Thomas Jefferson, cut and stored ice in the winter for use in the summer. Frederic Tudor of Boston turned ice harvesting and shipping into a big business, cutting ice in New England and shipping it around the world. Ice cream was made by hand in a large bowl placed inside a tub filled with ice and salt. This was called the pot-freezer method. French confectioners refined the potfreezer method, making ice cream in a sorbetière (a covered pail with a handle attached to the lid). In the pot-freezer method, the temperature of the ingredients is reduced by the mixture of crushed ice and salt. The salt water is cooled by the ice, and the action of the salt on the ice causes it to (partially) melt, absorbing latent heat and bringing the mixture below the freezing point of pure water. The immersed container can also make better thermal contact with the salty water and ice mixture than it could with ice alone. The hand-cranked churn, which also uses ice and salt for cooling, replaced the potfreezer method. The exact origin of the hand-cranked freezer is unknown, but the first U.S. patent for one was #3254 issued to Nancy Johnson on September 9, 1843. The hand-cranked churn produced smoother ice cream than the pot freezer and did it quicker. Many inventors patented improvements on Johnson's design.

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In Europe and early America, ice cream was made and sold by small businesses, mostly confectioners and caterers. Jacob Fussell of Baltimore, Maryland was the first to manufacture ice cream on a large scale. Fussell bought fresh dairy products from farmers in York County, Pennsylvania, and sold them in Baltimore. An unstable demand for his dairy products often left him with a surplus of cream, which he made into ice cream. He built his first ice-cream factory in Seven Valleys, Pennsylvania, in 1851. Two years later, he moved his factory to Baltimore. Later, he opened factories in several other cities and taught the business to others, who operated their own plants. Mass production reduced the cost of ice cream and added to its popularity. The development of industrial refrigeration by German engineer Carl von Linde during the 1870s eliminated the need to cut and store natural ice and when the continuous-process freezer was perfected in 1926, it allowed commercial mass production of ice cream and the birth of the modern ice cream industry. The most common method for producing ice cream at home is to use an ice cream maker, in modern times generally an electrical device that churns the ice cream mixture while cooled inside a household freezer, or using a solution of pre-frozen salt and water, which gradually melts while the ice cream freezes. Some more expensive models have an inbuilt freezing element. A newer method of making home-made ice cream is to add liquid nitrogen to the mixture while stirring it using a spoon or spatula. Some ice cream recipes call for making a custard, folding in whipped cream, and immediately freezing the mixture. Commercial delivery Ice cream can be mass-produced and thus is widely available in developed parts of the world. Ice cream can be purchased in large cartons (vats and squrounds) from supermarkets and grocery stores, in smaller quantities from ice cream shops, convenience stores, and milk bars, and in individual servings from small carts or vans at public events. In Turkey and Australia, ice cream is sometimes sold to beach-goers from small powerboats equipped with chest freezers. Some ice cream distributors sell ice cream products from traveling 157

refrigerated vans or carts (commonly referred to in the US as "ice cream trucks"), sometimes equipped with speakers playing children's music. Traditionally, ice cream vans in the United Kingdom make a music box noise rather than actual music. Ice-cream cone Mrs Marshall's Cookery Book, published in 1888, endorsed serving ice cream in cones,[25] but the idea definitely predated that. Agnes Marshall was a celebrated cookery writer of her day and helped to popularise ice cream. She patented and manufactured an ice cream maker and was the first person to suggest using liquefied gases to freeze ice cream after seeing a demonstration at the Royal Institution. Reliable evidence proves that ice cream cones were served in the 19th century, and their popularity increased greatly during the St. Louis World's Fair in 1904. According to legend, at the World's Fair an ice cream seller had run out of the cardboard dishes used to put ice cream scoops in, so they could not sell any more produce. Next door to the ice cream booth was a Syrian waffle booth, unsuccessful due to intense heat; the waffle maker offered to make cones by rolling up his waffles and the new product sold well, and was widely copied by other vendors. Using liquid nitrogen Using liquid nitrogen to freeze ice cream is an old idea and has been used for many years to harden ice cream. The use of liquid nitrogen in the primary freezing of ice cream, that is to effect the transition from the liquid to the frozen state without the use of a conventional ice cream freezer,

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commercialization.

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innovations have been documented in the National Cryogenic Society Magazine "Cold Facts".[30] The most noted brands are Dippin' Dots,[31] Blue Sky Creamery,[32] Project Creamery,[33] and Sub Zero Cryo Creamery.[34] The preparation results in a

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column of white condensed water vapor cloud, reminiscent of popular depictions of witches' cauldrons. The ice cream, dangerous to eat while still "steaming," is allowed to rest until the liquid nitrogen is completely vaporised. Sometimes ice cream is frozen to the sides of the container, and must be allowed to thaw

Making ice cream with liquid nitrogen has advantages over conventional freezing. Due to the rapid freezing, the crystal grains are smaller, giving the ice cream a creamier texture, and allowing one to get the same texture by using less milkfat. Such ice crystals will grow very quickly via the processes of recrystallization thus obviating the original benefits unless steps are taken to inhibit ice crystal growth. http://en.wikipedia.org/wiki/Ice_cream

NitroCream LLC, was started with a dream, and a passion. We have since, put forth thousands of hours developing the worlds finest and most bad-ass liquid nitrogen ice cream machine anywhere. •

No maintaining washers and gaskets. The G5 has none!

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Must be easy to clean. The G5 can be cleaned in just seconds!

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Energy efficient. The G5 uses standard 110v and only runs when your making an ice cream!

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Eco-friendly. The G5 doesn't use any refrigerants, compressors or condensers!

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Small, light weight and portable. The G5 is under 20" wide and weighs less than 70 lbs.

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Produces the highest quality product. The G5 makes each ice cream and gelato fresh in seconds with a texture and consistency unmatched by any other!

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It needed to be cool, stylish, fun and exciting. We built you the G5!

Some more benefits of the N2-G5

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Make ice cream, gelato, frozen yogurt, and sorbet. Dairy, non-dairy, organic, and all-natural with any ingredients using this one machine. Each dessert made fresh per guest!

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No more going to work at 4 AM to start making ice cream for the day. (You've just been given more free time and less labor)

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Never again will you have old, frosted over or gooey ice cream to deal with.

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Never again will you have to defrost or clean another display case. (More free time, less labor and perhaps even more retail space)

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Never again will you have to guess on which flavors to make. (You can make any flavor, any time)

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Never again will your customers or guests be limited to a small selection of flavors to choose from.

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Eliminate the local price wars. (Ice cream and gelato made fresh, the way your customers want, with a show)

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Be amazed at how people remember you, tell their friends, and establish you as the go-to-expert in your field. NitroCreams G5 can easily position your business ahead of the competition. Watch your competition squirm with fear over this one simple machine. Watch how ecstatic your customers get receiving an ice cream or gelato made fresh, just the way they want, right before their eyes. Something the competition can't do. Test any new flavor concept in just 1-3 minutes and make just a 6 oz. serving or a quart. As you know, you can easily spend tens of thousands of dollars on traditional ice cream and gelato equipment, only to be left struggling against your competition with the same thing. We listened to your wants, needs, and desires, and with our Patented Process, many hours of engineering, we've done the work for you. Now you can be the star of the show and separate yourself from the competition once and for all. http://www.nitrocream.com/

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Dots 'n Cream Company

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