Situation Analysis
Business Overview
Ted Drewes is a well-established frozen custard and ice cream chain in Saint Louis, Missouri. For over 80 years, Ted Drewes has offered frozen custard, becoming a favored delight among locals and visitors in St. Louis (Zeman, 2023). Known for its rich and creamy custard, the brand has a strong local presence and a loyal customer base. Custard makes a delightful complement to winter desserts.
Being primarily composed of milk, it serves as a rich source of protein and provides essential calcium for promoting bone health. However, it is crucial to recognize that custard, being a treat, can contribute additional energy, fat, and sugar.
Target Audience
Residents and tourists in the St. Louis area will serve as the main custard and ice cream consumers, as Ted Drewes is known for its popularity in the area. Entrenched in the affections of St. Louis locals and visitors across generations, it remains a cherished destination (Gitlin et al., 2021). It will always be the top pick for a memorable St. Louis vacation. The business targets all age groups, focusing on families and individuals of various ages who appreciate frozen treats.
It will also target middle to higher-income levels, as custard is often considered a premium or indulgent dessert. Of interest, the business targets individuals who appreciate high-quality, delicious frozen desserts. Tourists, such as people exploring the St. Louis area and seeking local culinary experiences, can serve as the primary target of this business.
Goals and Objectives
Short-Term Goals
One goal should aim at increasing online visibility and engagement. In digital marketing, visibility pertains to how prominently one’s website appears online. It hinges on one’s website’s position in search results and can be enhanced by elevating its ranking (Purnomo, 2023). Another goal is to drive more traffic to the Ted Drewes website. Boost online sales for take-home frozen custard products (McGruer, 2020). Sharing high-quality photos and encouraging customers to leave reviews is a powerful strategy to attract fellow ice cream enthusiasts to his establishment.
Long-Term Goals
The business aims to establish Ted Drewes as a go-to dessert destination in the region. Another goal is expanding online sales beyond the local market. It can be achieved by enhancing one’s website’s SEO (Rehman et al., 2019). Another way to boost online sales is to include client testimonials on one’s website. Another goal is to enhance customer loyalty through digital channels (Dwidienawati et al., 2020). These programs are crafted to acknowledge and reward customers for their ongoing support or interaction with a brand.
Trends
There is a new trend in digital ordering, and the new business should leverage the growing trend of online food ordering and delivery services. Restaurants increasingly use third-party delivery services like Uber Eats as food delivery bags become common on metropolitan streets. The global market for frozen desserts is expected to experience significant growth between 2023 and 2030 (Soumati et al., 2023). As of 2022, the market is showing steady growth, and key players’ implementation of strategic initiatives is anticipated to propel further growth throughout the forecast period (Soumati et al., 2023). Biodegradable plastics, paper, and glass are being used more in food packaging to reduce the environmental impact of food production.
Competition
There are some competitors in the frozen dessert market in Saint Louis. In August 2021, Hindustan Unilever Limited, a wholly-owned subsidiary of Unilever PLC, partnered with Pizza Hut to offer a range of ice creams and desserts (Singh et al., 2022). Considering the diverse range of the products provided by HUL and their varying price points, experts from the companies devised a digital strategy centered on product segmentation. This put significant pressure on the Ted Drewes firm, forcing it to develop strategies to counter the competition.
SWOT Analysis
Strengths
- Ted Drewes has established a brand with a loyal customer base.
- It is evident, as most customers consistently opt to purchase a product from this company rather than choosing a substitute product from a competitor.
- Since Ted Drewes has been selling frozen custard for over 80 years, its development is high caliber (Almohaimmeed, 2019).
- The business has a loyal customer base built over generations, contributing to repeat business.
Weaknesses
- Ted Drewes has a limited online presence, affecting customer relations as some consumers may lack information concerning products the business sells.
- Frozen custard may be more prevalent during certain seasons, potentially resulting in fluctuations in sales (Kucharska, 2019).
- The business’s popularity is primarily concentrated in the St. Louis area, which could limit growth opportunities.
Opportunities
- Leveraging online platforms can enhance visibility, attract new customers, and increase online sales.
- Targeting tourists seeking local culinary experiences can open up new customer segments (Katsikeas et al., 2020).
- Expanding online sales beyond the local market can tap into a broader customer base.
- Embracing eco-friendly packaging aligns with the growing sustainability trend in the food industry.
Threats
- The partnership between Hindustan Unilever Limited and Pizza Hut poses a competitive threat.
- Increased awareness of health concerns may impact the consumption of high-calorie desserts like custard (Pohjanen, 2019).
- Disruptions in the supply chain affect the availability of key ingredients and impact production.
References
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Dwidienawati, D., Tjahjana, D., Abdinagoro, S. B., & Gandasari, D. (2020). Customer review or influencer endorsement: which one influences purchase intention more? eliyon, 6(11). Web.
Gitlin, J., Morrissey, R. M., & Kastor, P. J. (Eds.). (2021). French St. Louis: Landscape, contexts, and legacy. University of Nebraska Press.
Katsikeas, C., Leonidou, L., & Zeriti, A. (2020). Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review, 37(3), 405-424. Web.
Kucharska, W. (2019). Online brand communities’ contribution to digital business models: Social drivers and mediators. Journal of Research in Interactive Marketing, 13(4), 437-463. Web.
McGruer, D. (2020). Dynamic digital marketing: Master the world of online and social media marketing to grow your business. John Wiley & Sons.
Pohjanen, R. (2019). The benefits of search engine optimization in Google for businesses. University of Oulu repository, 10(10). Web.
Purnomo, Y. J. (2023). Digital marketing strategy to increase sales conversion on e-commerce platforms. Journal of Contemporary Administration and Management (ADMAN), 1(2), 54-62. Web.
Rehman, K. U., Yasin, A., Mahmood, T., Azeem, M., & Ali, S. (2019). SEO: A unique approach to enhance the site rank by implementing Efficient Keywords Scheme. PeerJ Preprints, 7. Web.
Singh, H., Aggarwal, R. K., & Rishi, B. (2022). Patanjali Ayurved Limited: role reversal in competitive advertising. Emerald Emerging Markets Case Studies, 12(2), 1-28. Web.
Soumati, B., Atmani, M., Benabderrahmane, A., & Benjelloun, M. (2023). Whey valorization-innovative strategies for sustainable development and value-added product creation. Journal of Ecological Engineering, 24(10), 86-104. Web.
Zeman, M. (2023). Historic tales of St. Louis. Arcadia Publishing.