Case Study Analysis- Dippin’ Dots Ice Cream
Summary and Recommendation: Dippin’ Dots is a very well known brand that has done very well since its first introduction into the ice cream industry. In order to expand, they need to be able to have an introduction of a take-home line of ice cream.
Background Facts: Dippin’ Dots are known for their “ice cream of the future.” Dippin’ Dots are BB size pellets of flash frozen ice cream, frozen with liquid nitrogen, which locks in both flavor and freshness by eliminating the presence of trapped ice and air, giving the ice cream a fresh flavor and a hard texture. This is their core competency.
Issues: Dippin’ Dots prospered for many years as a unique segment of the ice cream market, targeting the out of home ice cream segment, mainly focusing operations in high-traffic areas like amusement parks and malls. Now facing increased competition, Dippin’ Dots must first pinpoint the problems, then implement the needed solutions if they want to re-stabilize growth.
Analysis of Organization: Company’s Perspective -> “Whether it's "Butter Pecan" or "Banana Split," once you try one of our many flavors of ice cream, yogurt, sherbet or ice dots, you'll have to agree, it's the world's most unique ice cream experience.” (COMPANYHISTORY) What Dippin’ Dots wanted to achieve as a company was to be unlike any other product that their competitors sold in their industry, and they were able to achieve that when they created these tiny beads of ice cream.
Dippin' Dots grew rapidly and by 1995 numbered more than 150 in 33 states across the United States. Some were owned by the company, while others were run by independent dealerships. Shortly after the company began eyeing foreign markets, and in 1994 plans were drawn up to begin distribution to Mexico, Canada, and Japan. In the last-named country, a licensing agreement was signed with the firm Itochu, which began testing Dippin' Dots at places near by. The...