Marketing Reflection of case

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Week 4, Day 1

Market Data Observations ''

Survey Question: 'How likely would you be to buy a frozen treat from our truck a couple of times per week?'

Location Not Likely Somewhat Likely Very Likely

Arts District 58% 24% 18%

Beach 7% 53% 40%

City Market 44% 44% 12%

Downtown 81% 17% 2%

Train Station 78% 18% 4%

University 39% 45% 16%

Source: Willingness to Buy survey, conducted on location with over 2,000 participants

WILLINGNESS SURVEY

Arts District

Beach

City Market

Downtown

Train Station

University

0% 20% 40% 60% 80% 100%

FROZEN INDUSTRY REPORT (2017)

Snapshot

1% Annualized Growth expected over the next 5 years

$12B Frozen Treat Industry

$3.2B from Foodservice Locations

Ice Cream Frozen Yogurt Other

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Ice Cream Frozen Yogurt Other

Industry 59% 22% 19%

Foodservice 45% 32% 23%

Trends

1. Health Consciousness: Increased health consciousness is shifting taste preferences towards

frozen yogurt, smoothies, and others perceived to be less unhealthy.

2. Fragmented Market: The increasing number and variety of frozen snack options is fragmenting the

market.

3. Popularity of Local: The increased popularity of local and hand-crafted products is giving greater

power to local, independent ventures (at the expense of major chains).

This is the first year Boomtown has issued food truck licenses, and you have one of only five offered!

The other four licenses have been awarded to trucks serving savory foods (falafel, tacos, burgers, and

Indian dosas).

There are only a handful of frozen treat establishments, and they are spread out around the city:

Downtown: 1 smoothie store, 1 frozen yogurt store

City Market: 1 ice cream store, 1 smoothie stand

Train Station: 1 frozen yogurt store

Arts District: 1 frozen yogurt store, 1 ice cream stand

University: none

Beach: 1 frozen yogurt stand, 1 ice cream store

LOCAL COMPETITION (CURRENT YEAR)

FOOT TRAFFIC BY SUBWAY STOP (2015)

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Ranked Station Entries (Typical Weekday FY2015)

Station Rank Travelers Subway Line(s)

Train Station 1 19,432 Yellow, Green

Downtown 2 14,170 Blue, Yellow

University 3 9,247 Blue

City Market 4 8,582 Yellow

Arts District 5 7,091 Yellow

Beach 6 3,120 Blue

Source: Boomtown Department of Transportation (DOT), Automated Fare Collection (AFC) FY2015

Arts District

Beach

City Market

Downtown

Train Station

University

0 4k 8k 12k 16k 20k

Food Service Sales by Age Group (in thousands)

Product Children Young Adults Adults Seniors

Ice Cream 470 362 278 346

Frozen Yogurt 194 387 306 154

Smoothies 135 221 243 132

Trends by Demographic

Children: Ice cream is still the overwhelming preference, but frozen yogurt is growing in popularity.

FROZEN TREAT SALES BY DEMOGRAPHIC (2016)

Ch il dr en

Yo un g Ad ul ts

Ad ul ts

Se ni or s

0

100

200

300

400

500

Ice Cream Frozen Yogurt Smoothies

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Young Adults: Frozen yogurt and smoothies have caught up to ice cream in popularity in this bracket

and are expected to stay neck and neck in the coming years.

Adults: Health consciousness in this group will continue to push frozen yogurt and smoothies ahead of

ice cream.

Seniors: Ice cream is expected to continue to be the overwhelming favorite among this group.

Source: Market Research Database ABC, Frozen Treat Industry 2016

Demographic Mix per Location

Beach: Mostly young families with children, and students

Arts District: Children, young couples, and older couples

Train Station: Working commuters

University: Students

Downtown: Working professionals

City Market: Young couples and older couples

DEMOGRAPHICS BY LOCATION (2016)

SALES BY LOCATION (JULY 2016)

Arts District

Beach

City Market

Downtown

Train Station

University

0 30 60 90 120 150

Avg. Daily Orders

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