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Yogurt

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Submitted By bigsmile
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Pages 14
Becoming a National Brand

Bettina Chen
Lisa Yee
Eythan Familier
Robbie Paolini

1

Memo to the CEO:
Executive Summary


Pinkberry needs to take advantage of its first mover status



Expansion of the firm is possible due to the product’s higher quality



Can use the following strategies


Establish Pinkberry as a national brand by controlled franchising



Advertise with a focus on health and flavor



Target health-conscious individuals as well as young crowds



Maintain simplicity of menu choices



Maintain upscale status of locations



Hire young motivated people



Provide opportunities of advancement to employees of the company

Market and Competitive Analysis
The overall market
The current level of health awareness in the United States has led to a steady increase in the number of yogurt restaurants in Southern California. This has occurred despite the fact that Southern
California already experienced one frozen yogurt boom-and-bust cycle in the 1980s and '90s. With consumers seeking healthy alternatives for frozen dessert, frozen yogurt sales grew 12 percent in 2007 alone1. According to the U.S. Market for Ice Cream and Related Frozen Desserts, the U.S. market for frozen desserts is set to grow by more than $4 billion by 2012, with frozen yogurts attaining the
2

strongest growth. This represents an 18 percent increase over the next five years, from the market's
2007 value of $23.3 billion across retail and foodservice. However, in spite of these promising prospects, the world of frozen yogurt is cutthroat and the growth of one vendor often comes at the expense of another. Customer characteristics
Pinkberry and most of its new competitors are upscale frozen dessert restaurants that target young adults as well as health conscious individuals offering a variety of flavors such

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