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Introduction
FroGo is a company that has taken the enjoyment of ice-cream and removed the guilt out
of the experience by supplying customers with a healthy, all natural, fat free permanent
replacement product. We emphasize the word permanent because we truly believe we have a
product that will make all unhealthy ice-cream obsolete and capture its entire consumer base in the
near future. FroGo prides itself on its eco-friendly lifestyle, including sustainability, recycling,
alternative fuels, reducing carbon footprint impact, and spreading green awareness. The brand
image of FroGo seamlessly coordinates the connection between a healthy Earth and a healthy body.
This is why FroGo has perfected the perfect menu of (ice-cream) treats, inside is 100% fat free and
the container, napkins, as well as utensils are made from recycled materials.
Introduction
The startup of the FroGo company will begin with two delivery imitation ice-cream trucks with
one headquarter location where the long term inventory will be stored. The target of operations for the
initial summer opening will heavily focus on the crowded beaches of Cape Cod. The daily route will be
formulated from current predictions on the previous day and therefore specific daily beach locations
will be chosen depending on the current consumer traffic.
Frozen Yogurt > Ice Cream
Startup Costs
We will be buying two trucks at about $50,000 dollars apiece slightly used, in order to keep start-up cost down. For our
home base of operations where all operational management decision will be made is going to cost $350,000, we have
already located the building we wish to buy. The building is centrally located for ease of access to popular beaches.
Each truck will have two frozen yogurt machines each one with a cost of $13,657.67 totaling $54,630.68. The frozen
yogurt machine we will be using is the Spaceman Forte 6378, giving each truck a capacity of 160 quarts an hour. Each
truck will have two SwirlFusion mixers in order to mix the custom flavors and make the frozen yogurt shakes. Each
SwirlFusion cost $759.00 totaling $3,036. We will have miscellaneous cost such as utensils,
bowls and other various necessities totaling $4,500 and training costs of $2,100.
Cost
breakdown
Asset
Quantit
y
Cost
per
item
Total
Cost
Food
truck
$50,00
0.00
$100,0
00.00
Buildin
g
$350,0
00.00
$350,0
00.00
Frozen
yogurt
machin
es
$13,65
7.67
$54,63
0.68
SwirlFu 4
sion
$759.0
0
$3,036
FroGo Marketing
FroGos marketing strategy is what truly will separate itself ahead of its
competition. Not only does the product and brand offer extremely easy
incentives to provide to the consumers, the finding sales approach will bully
out any other ice-cream/frozen yogurt company attempting to compete. The
marketing message will make it well known that FroGo accepts appearance
requests as well as party sized delivery options. This is an area where we
believe the entire competition in this industry lacks and where FroGo will excel.
The brand itself has completely aligned itself with current trends as well as
maintaining a message that many are already attempting to spread. The correct
social media campaign has the potential to directly swell the sales volume to a
point of expansion.
Here at Fro-Go we understand our consumer demographic and that shows in our choice of location for the company.
With Cape Cod being 52.4% female, and a total population of 215, 902 we know that we will have a large consumer
base, not including tourism. Cape Cod has an average household income of $84,024, which is 35.8% above national
household income, putting the population of Cape Cod right in the pay bracket that buys frozen yogurt the most.
Average household total expenditures for Cape Cod households was $62,012 leaving on average $22,012 for
recreational spending such as delicious frozen yogurt. Looking at the spending habits of the population of Cape Cod
we see that people in Cape Cod spend on average 10% above the normal food expenditures for the national average
(they sure do love their food).
Annual sales of
Frozen Yogurt
$194,910,000
Growth of sales
2013-2014
7%
# of frozen
yogurt shops in
U.S.
820
Fruits
Chocolate
35.3%
Favorite flavors:
Vanilla
40.8%
Chocolate
34.1%
Capacity Planning
When planning for capacity you never know how many customers you will get each day when running a business out
of a truck. The number of people depend on which beach the truck is at; the day of the week, since most house rentals
turn over on Saturday so you have to work around their schedule; the weather, the nicer the weather the more people
there will be outside; and the time of the year, more people go on vacation during the holidays , and less people go
closer to the school year. We need frozen yogurt machines that will cater to the number of people we will be serving. If
the machine only serves 150 people, but we could potentially get 600 people to come to our truck, we are then missing
out on 450 of those customers, and they may not go to our truck in the future if they know we may not have what they
want in stock. Capacity is calculated as (number of machines or workers) (number of shifts) (utilization)
(efficiency) We can use the lead strategy by starting with more than what we think we will need, so this way when the
competitors trucks run out of product we will gain their loss.
Lean Systems
Everything that has been stated above ties into our attempt at reaching a total lean system. We try and keep our scope
on the big picture system and this is why we emphasize a total lean system instead of specific systems that are lean
while others are neglected. We started this company with a total vision of brand, product, and company, to achieve
the honesty we demand from ourselves in reaching the objectives of what our band is spreading, we must have a total
lean system. If consumers found out we were not recycling our trash but was giving the appearance we did, it would be
a disaster and the brand as well as the company would most likely fall apart. A few components that makes up our
total lean system would be low waste ratio, gas efficiency, low payroll (low benefits payout), just mix longterm storage, Dunbar financial accountability, POS systems (high turnover rate), standardization of all
appropriate items, as well as many others.
Forecasting
FroGo puts an enormous amount of effort into forecasting and the success of the company requires them to do so.
Key software will study the algorithms and direct us to where the most potentially crowded beaches will be. This will
only be a guide and it will be up to the leadership to make the key decision making the day before on selecting
the best route for that day. However, even the best data can be incorrect or fail to foresee unpredictable events that
can alter the set predictions. This system will also allow us to have an enormous amount of data to study in
preparations for the next season. To counter these types of circumstances we have set up a safety net relay system
in order to provide refills in a time of need. If the truck has lines we do not want to move it to get more product.
This is why we always have an employee able to make a refill delivery at a moments notice, he/she will be located at
HQ during working hours and provide inventory accountability as well as other office maintenance requirements.
Supplier Relationship
When it came time for choosing a supplier, there was literally only one that met the standards of what FroGo required.
This is the unbelievable company of Honey Hill Farms, located in Russellville AZ. A quick look at their website at
thehoneyhillfarms.com or speaking with one of their pleasant associates will show you that our brand messaging and
stressed importance on quality are completely aligned. We believe this is going to cross over to form an
impressive long-term relations between our companies, potentially offering serious opportunities to cross market in
areas we would previously not have access too. Honey Hill Farms also provides impressive flexibility when it comes to
changing order quantities and flavors in a short period of time. The supplier also offers the unique ability to network
with outer frozen yogurt organizations in non-competing areas. This is an ability that can provide us with
enormous knowledge that is vital during the beginning stages of our company. Overall, FroGo couldnt be more excited
about having this supplier relationship and we believe it will directly add to the success of our company.
Resource Planning
Resource planning is a process information by time standards, routings and other
information on how services or products are produced. It can also be used to help look at
our company as a whole. A very simple example of how resource planning can determine
requirements for FroGo could go as followed.
Task
Time
Resources
1.ordering
supplies
1 week
manager
Tru Mo Tu
ck n
es
#
1
12
3h
r
W
ed
12- 33
5
Th Fri S
urs
at
Su
n
3-5 11 12 11
-2 -3 -2
Conclusion
FroGo is a start-up company that offers enormous potential to reach unbelievable heights.
Implementing the strategy we mentioned in the pages above will provide the formula to frozen
yogurt success. When you consider we are placing this business in an industry that is just
beginning to thrive, it is easy to see the massive potential that FroGo maintains.
Work Cited
201, September. "Frozen Yogurt Satisfies Need for Healthy/Light Snack." Tart Frozen Yogurt (n.d.): n. pag.
Http://www.taylornewengland.com/. Taylor New England. Web. Apr.-May 2015.
"Frozen Yogurt Industry Statistics." Statistic Brain RSS. N.p., n.d. Web. 20 Apr. 2015
wwwHoneyHillFamrs.com http://www.foodproductdesign.com/news/2013/09/frozen-yogurt-sales-grow-74-to-486-million-in201.aspx
https://www.creditdonkey.com/frozen-yogurt-industry.html