Carvel Beijing Case Study

Carvel Beijing Partner Brief

The primary advantage is that focus groups and taste-tests support us gauge our current markets and consumer choices and perceptions. Whereas, this kind of tracking study gives us a long lasting tool to investigate any potential changes in these types of variables over the particular time frame. Notes

* Steven Wang, director of business development for Beijing-based Carvel Asia Limited was trying to increase sales in the provider's flagship merchandise category – ice cream cakes (main goal) * Deficiency of basic education and information about the company's products (customers and distributors) 2. International occurrence in 1998, Carvel owned and operated over 300 stores in US, China, Puerto Rico and Canada, and had granted franchise rights to 600 other folks. Their current " wholesale” accounts (4, 500) were predominantly in supermarkets. 5. The company's net sales surpassed US $600 million in 1997. 5. 3 merchandise categories – fountain goodies, ice cream novelties and goodies cakes * Ice cream bread - Carvel Classics (had option to put special messages), Blue Ribbon (premium), figure cakes (special), novelty bread * 1994, Carvel set up Carvel Asia Limited – 1998, 15 retail stores and 150 from suppliers accounts through Beijing (Presence in China) * The business had encountered losses every year – enhancing financial performance – prediction to break even by 98 * Revenue exceeded US$725, 000 – Beijing Carvel derived 45% of profits from goodies cakes and 55% from the rest. This is in contrast to the sales, where 60% from the revenues originate from cakes * (Imp) The cakes had been purchased usually for birthdays and office parties, followed by Spring Festival and Mid-Autumn Moon Festival (holidays) * (Imp) Full lack of industry information with no official consumption data pertaining to ice cream whatsoever. And whatever data was available was notoriously difficult to rely on. * (Imp) Wang relied on his own observations, feedback coming from Beijing Carvel...



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