Penny Thomas Case Study Answers

Identification and Evaluation of Alternatives The following alternatives to Penny Thomas’s Marketing plan decisions incorporate aspects of Target Market, Store Location, and Promotional Campaign. Thomas’s alternatives contain:
1. Target Market a. Families b. Young Adults c. Women
2. Store Location a. Vaughan b. Toronto Annex Area c. The Beaches d. Oakville
3. Promotional Campaign a. Toronto Star b. Now Magazine c. 104.5 Chum FM d. Pattison Outdoor e. Canada Post Direct Mail

Pros & Cons
1. Target Market a. Families – Pros i. Parents were often engaged in family activities ii. Showed great potential with children under
Since Marble Slam ice cream was that of a premium, might engage in lower quality products iii. Alternative options such as Baskin Robbins might appeal to families b. Young Adults – Pros i. Aged 15 to 24, had some of full independence of spending money ii. Own disposable income due to part time, full time, or summer employment iii. Shares an appetite for social interaction iv. Limited family obligations – Cons i. Many competitors already targeting this lucrative market c. Women – Pros i. Primary caregivers and dominant grocery shoppers ii. Made most of the food purchasing decisions in and out of the household iii. Profitable potential since this target market is so large – Cons i. Generally more health conscious ii. Unsure if target market would response favorably iii. Concern with how to focus advertising to such a broad segment
2. Store Location a. Vaughan – Pros i. Growing population and increasing development ii. Pre-existing outdoor complex in Thornhill
Store traffic from redemptions will level off iii. Might be perceived as junk mail

Research Information • Exhibit 1 on page 10 shows the cost of the different products offered at Marble Slab. Products range from normal ice cream, smoothies, pies, and drinks of roughly $5.00 to specialty ice cream cakes of $23 and up. • Exhibit 2 on page 11 consists of Census information for Vaughan, Toronto Annex Area, The Beaches, and Oakville. Vaughan has the largest population overall (235,865) and the highest young adult percentage (13.87%). Oakville has the highest median household family income at $101,675. • Exhibit 3 on page 12 shows Marble Slab’s flavor and standard Mixins list. It contains 48 flavors (from Amaretto to White Chocolate) and 33 Mixins (from Chocolate Chips to Walnuts). • Exhibit 4 on page 13 shows Contribution Margins and Sales Breakdown percentage of Marble Slab’s various products. It indicates that the popularity of an Original Ice Cream (with one Mixin) makes up 35% of sales. Child’s size (with one Mixin) follows closely behind at 15% of sales. This gives us an idea of who would be best to target (families); if our location is well populated with