How can a popular ice-cream maker increase sales?
Background
Dino Cant! ice Cream ine, based in Santa Barbara (USA), manufictures and
distributes ice cream to consumers in California. tt produces 15 lavaurs, wich it
distributes mainly te cupermarkets andeampany-cuned stares. its most famaut
product sits classic chacolate ice cream, sald under the SupaKea! label. Many
people believe that Dino Coni's SupaKool chacolate ice cream is the best
in the wort.
Dino Conti nasexpandedrapidly in recent years, but naw its grawth is stewing daom,
recent fallin prfitshas disappointed the management. The owner, P
wants the campany to become more international.
)€02.24 Listen ta an excerpt from aboard meeting. Make nates under these
headings.
Reasans forfalling profits
* Prices = Equipment = Outlets
= Products ‘= Environment
Chart 1: Dino Conti's main products (25.2 % of turnover)
Pe Classic Supakool chocolate icecream 41%
‘Sx top-selling flavours 32%
16% Other flavours 14%
teed yosturt 6x
Naveity products* ™
fudge, chocolate bars, lollipops
The future
Paolo Canti has $3 milion to Investin his company so that it continues ta expand
and become an international business. Here is an exiract fram a carmpany profile that
appeared in a business magazine recenth,
Dino Conti can continue its remarkable growth, but only if it solves its
present problems, develops new products, and finds new markets.
‘So how shauld Papie Canti invest the $3. million? Chart ? en page 21 lists the ways
he coud do that.Cost estimated) | Benofit
Build a bigger factory S2Amition | mare production capac ower unt costs
[2 eportt china cia (| station | new martats—ren sales pent _
4. Buy outits major compel | Sami | Reduce compe
4 Developa range ol exotic iu drinks | ‘$2Smillin | Mave ntoanewarea
su “S12miion | Lower cone
Gi tuerhirans mera aoe ss0000 | econ da oai pam
5 cmcrnioe is aerisetenele a
4 Makethe company mere“green! | Imarore company image and sales
Improve the products’ packaging | Increase sales
ne eee etre erates | eae awareness of he company, good PR
You are ctectars of Dino Com ice Cream Meet to discuss your
I investmentplan
Work inpairs. Decide how to spend the $3 million. Prepare a
presentation ef your investment plan, with reazons for your ehetees
2 Meet as ane graup and present your ideas
As-one'group, agree ona final investment plan:
=z
INVESTMENT PLAN
ieee
To solve our current problems and enable Dino Canti te become a
Competitive international business, we propose an investment af $3 miltion,
‘Writing
‘Asa director of Dine Conti ice
‘Cream, writea proposal document
to your CEQin-which you:
* listthe investment options you
have chosen;
ge arguments for exch
‘option, as well as the cast and
benefits,
{2 Strategy and implementation
The Goard of Directors has agreed the following investment plan.